Earl's+Three+Pronged+Approach

=Earl’s Three-Pronged Approach= Earl’s three-pronged approach is a multi methodology IS/IT strategy that illustrates the strategic role on how IT can play in addresses the forces. It consists of the following prongs: (Earl, 1989) 
 * Top-down
 * Bottom-up
 * Inside-out

=Earl's Top-Down Approach= This Approach concerns itself with the desire to match business aims and objectives to match IT investments through a structured approach (Earl, 1989).

· Improve usability of core systems || · Standardize finance system · Enhance Glasgow system and New vehicle fleet record ||
 * **Business Objective** || **Critical Success Factor** || **Information System Needed** ||
 * **Reduce Overheads by 25% by year 2003** || · Improve cost control
 * **Maintain sales revenue growth within the next 2 - 3 years** || · Explore new market

· Offer customers flexibility in ordering || · Customer intelligence system · E-commerce || · Reduce delays for changes in order · Improve package control || · GPS system within Hermes website
 * **Increased customer satisfaction by up to 50% within the next year** || · Enable customer tracking of packages online

· Enhance job scheduling or ordering system · New job numbering system (RFID technology) || · Improve vehicle tracking || · Enhance the GIS
 * **Enhance delivery efficiency by reducing traveling hours up to 30 minutes per trip** || · Familiar with routes and traffic conditions

· New vehicle fleet record system ||


 * Justification of systems**
 * **Information System Needed** || **Justification** ||
 * **Standardize finance system** || This system helps to improve cost control as different packages may have compatibility issues leading to misinterpretation of figures and save time because no need for conversion due to different formats (assumptions). ||
 * **Customer intelligence system** || This system is used to store all current customer data for analysis before venturing into a new segment. ||
 * **E-commerce** || This system gives customers flexibility (more options) for making transactions as it has visual appearances and allows for information at their fingertips. ||
 * **GPS system within Hermes website** || This system allows customers to monitor their package online (works together with e-commerce). ||
 * **Enhance job scheduling or ordering system** || This system is used to schedule customer’s transactions made through phone but need upgrades to reduce delays in communication to the depot team. ||
 * **New job numbering system (RFID technology)** || This system is for tracking purposes, thus newer technology (RFID) is used as it has better security and allows better tracking. ||
 * **Enhance the GIS** || This system is used to identify the shortest route possible that allows more packages to be sent daily provided it is upgrade to cater for traffic control. ||
 * **Enhance Glasgow system** || This system has all required operation functions integrated for a region to function optimally but it needs a GUI to improve usability. ||
 * **Enhance vehicle fleet record system** || This system is used to monitor all vehicles but currently lacks usability and a vehicle maintenance function thus a new system is needed. ||

Earl’s Bottom-Up Approach
This approach concerns itself with understanding the current IT infrastructure (features, existing gaps) in order to grade the systems value (Earl, 1989).


 * **Low** |||| **Technical Quality** || **High** ||
 * **Business Value** || ** Divest **
 * Job Numbering System || **Reassess**
 * GIS ||  ||
 * ^  || **Renew**
 * Vehicle Fleet Record System
 * Financial System
 * Job Scheduling Or Ordering System
 * Payroll System || ** Maintain **
 * Glasgow System ||  ||
 * **High** ||  ||||   ||


 * Justification**


 * //**System**// || //**Justification**// || //**Quadrant**// ||
 * **//Job Numbering System//** || Job Numbering System’s technical quality is low because of unreliability as it uses package labels. Business value is also low as the amount of work is double (number assigned is written on package label and worksheet). Besides that, this system is outdated since it is paper-base and business needs have changed requiring newer technology systems (Hermes, 2009). || **Divest** ||
 * **//GIS//** || Geographic Information System’s (GIS) technical quality is high as it is modern and user-friendly . However, business value is low as it is barely used, since <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">drivers believe their local knowledge is better as compared to the system since it cannot account for traffic load (Hermes, 2009). || **Reassess** ||
 * **// Vehicle Fleet Record System //** || <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Vehicle Fleet Record System’s technical quality is low due to <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">user-friendliness issues and is <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">difficult to use even with extensive training . <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Business value is high because it is <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">necessary as Hermes has many vehicles that require monitoring/tracking since <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">contracted packages are assigned based upon drivers in the contract worksheet (Hermes, 2009). || **Renew** ||
 * **// Financial System //** || <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Finance System’s technical quality is low because <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">maintenance cost could be high since it is state-of-the-art. <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Business value is high as it is <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">necessary and is constantly used . However, assumptions are that it currently offers only basic functions thus it <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">can be upgraded to support more complex functions that may give a competitive advantage (Hermes, 2009). || **Renew** ||
 * **// Job Scheduling Or Ordering System //** || <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Job Scheduling/Ordering System’s technical quality is low due to <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">unreliability since <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">information is slow in reaching the depot team when contract customers make changes to their normal routine. <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Business value is high because it is the <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">core operations of Hermes and is used daily. However, the system <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">requires serious attention and possibly needing upgrading to reduce delays (Hermes, 2009). || **Renew** ||
 * **//Payroll System//** || <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Payroll System’s technical quality is low because it <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">could be unreliable and poses some <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">compatibility issues since <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">each region runs a different package . <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Business value is high because it is <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">used often and is a <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">vital operation in helping Human Resource Staffs as <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Hermes has many workers (Hermes, 2009). || **Renew** ||
 * **Glasgow** **System** || <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Glasgow System’s technical quality and business value are both high because it is <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">reliable, necessary and covers all core operations needed to succeed . Nevertheless, the system should be <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">enhanced with a GUI to improve usability (Hermes, 2009). || **Maintain** ||

This approach concerns itself with the power of innovation to have a competitive edge. besides that, this approach also states that workers at the organization boundary who have more awareness of the external environment often discover that IT infrastructure's competitive edge (Earl, 1989). Thus, the Ishikawa diagram and brainstorm session is used.
 * Earl's Inside-Out Approach**

**Ishikawa Diagram**
Ishikawa diagram or known also as cause and effect diagram is used to identify the root cause of a problem. To generate the diagram, three steps are needed (City Process Management, 2008). Figure 19 shows the diagram with Hermes’s root cause, integration. The symptoms are people, equipment, procedures and management because they are commonly used among the following (Russell, 2008). · The 8 P’s (Procedures, People, Price, Promotion, Processes, Plant, Product, and Policies) · The 6 M’s (Machinery, Materials, Maintenance, Methods, Mother Nature, and Man) · The 4 S’s (Skills, Surroundings, Systems, and Suppliers.)
 * Identify root cause and symptoms that cause it
 * Brainstorm solutions
 * Establish action plan

Brainstorming
This approach is used in conjunction with the Ishikawa diagram (Figure 19) to identify methods to resolve the issue, which is “Poor/Lack of Integration” and below are some of the resolving methods generated during the session.
 * Hire more IT experts to increased the members
 * IT department’s job scope needs reviewing
 * <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Review and understand current technology better
 * <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">All regions should have a standardized system using same formats
 * Review Hermes growth policy/method
 * <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Have more IT systems in place
 * <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Identify regions that are performing well to look at their systems
 * <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Make use of the modern PABX equipment to go along with new/old systems
 * Improve project management
 * Empower the IT manager

**Analysis**
After reviewing the answers thoroughly, the conclusion is that the highlighted answers are IT solvable and the remaining are management issues. Firstly, Hermes should make full use of their network connection by having network all regions using the phone lines in place to integrate their systems. However, to succeed all regions need to have the same system package. Therefore, Hermes should deploy their state-of-the-art <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">financial system for all regions, as this system is vital for managing cost. Besides that, the <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">Glasgow system and <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">vehicle fleet record system should also be upgraded by addressing the user’s issues. Hermes can also invest on some <span style="background: yellow none repeat scroll 0% 0%; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;">smart workload allocation systems that can help to sort the packages based on destination, size, weight etc in real-time. This helps maximizes Hermes vehicle by delivering more effectively and efficiently.

=Conclusion= After conducting research and analyzing on the external (STEEP, Porter’s Five Forces) and internal (SWOT) environment in relation to the financial analysis and McFarlan’s Strategic Grid to analyze Hermes’s current system, several business strategies have been come forth. In conjunction, by means of Earl’s Three Pronged Approach several new systems have been identified with will be helpful to Hermes while various other current systems requires some upgrading. The following are some of the new systems and currents systems that require enhancing:


 * **New Systems** || **Current Systems With Upgrading** ||
 * * Smart Workload Allocation System
 * E-commerce
 * Customer Intelligence System
 * GPS System
 * Job Numbering System (RFID) || * Glasgow System
 * Vehicle Fleet Record System
 * GIS
 * Finance System
 * Job Scheduling/Ordering System ||