TECH2300 Service and Operations Management in IT Report 3 Sample
Your Task
Choose and describe your organisation, including the industry it is in and background of the organisation
o Conduct a risk management plan
o Conduct business impact analysis
o Conduct incident response plan
o Conduct a recovery plan
Assessment Description
Adverse events could cause significant disruptions to a business. Your task is to select an organisation of your choice and consider adverse events that would lead to significant disruption of the business. Then you are to conduct a management plan to discuss the impact to the business, incident response and recovery plan which to bring the business back to normal conditions. This assessment aims to achieve the following subject learning outcomes:
LO1 Analyse the organisational and people factors that influence the delivery and operationalisation of IT services.
LO2 Determine the information and technological requirements for effective IT service delivery in diverse organisational contexts.
LO3 Evaluate the performance of partners and suppliers in ensuring the effective delivery of IT services within organisations.
LO4 Design IT value streams and processes that underpin an organisation's products and services.
Assessment Instructions
Students must conduct research externally and included references in order to produce a well referenced case study. You should use at least ten (10) sources of information and reference these in accordance with the Kaplan Harvard Referencing Style. These may include websites, social media sites, industry reports, census data, journal articles, and newspaper articles. These references should be presented as in-text citations and a referencing list at the end of your assessment (not included in the word limit). Wikipedia and other ‘popular’ sites are not to be used.
Students may use the attached template when conducting the assessment.
Select an organisation of your choice (it has to be a real company in Australia), discuss the industry and the business it is in and how it is particularly vulnerable to business disruptions and disasters.
Part One – Risk Management Plan
• Identify and analyse events that affect your business adversely and evaluate measures to deal with each of these identified risks.
• A minimum of 5 risks needs to be identified.
• Use the following risk management matrix when conducting your risk analysis:
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Part Two – Business Impact Analysis
Business Impact Analysis uses information in your Risk Management Plan (Part One) to assess identified risks and impacts against critical activities of your business and determine basic recovery requirements.
Critical activities are primary business functions that must continue to allow your business to continue to operate.
You need to include the following in your business impact analysis:
• Identify 4 critical business activities of your business.
• Impact to the business in the event of disruption.
• Length of time the business can survive without performing this activity.
• Assignment of Recovery Time Objectives (RTO) to each function, which is defined as time from declaration of a crisis/disaster to time the critical business function return fully operational to avoid serious financial loss.
Part Three – Incident Response Plan
Prepare a plan which allow timely response to 4 types of critical incidents and reduce the impact of those incidents on business operations identified in Part Two.
Part Four – Recovery Plan
Recovery is returning to the condition before the emergency. Primary focus should be on performance of critical activities as soon as possible after a critical incident. Students are expected to complete in the template recovery support in ‘worst case’ scenarios, and includes the following:
• Strategies to recover business activities in the quickest possible time.
• Identifying resources required to recover operations.
• List the positions responsible and have an anticipated completion date/time.
Part Five – Reflection
The four pillars of a BCP are assessment, preparedness, response, and recovery. In light with the specific industry your company is in, provide ONE (1) recommendation with explanation on how your company can improve in its readiness in each of the pillars of BCP.
Solution
Introduction
As per Uni Assignment Help, Leading Australian retail behemoth Woolworths Group operates in a dynamic sector where business disruptions and natural calamities pose serious dangers to its operations. This paper explores a thorough risk management strategy customized for Woolworths, identifying and examining five key risks that could have a negative impact on the business. These dangers include interruptions to the supply chain, cyberattacks, economic downturns, product recalls, and natural disasters.
This paper also evaluates how these risks might affect four crucial corporate operations, from customer data management to supply chain management. In order to reduce the impact on business operations, the company provides an incident response plan and a recovery plan in reaction to these risks.
Risk Management Plan for Woolworths Group
A number of hazards could negatively impact the operations and profitability of Woolworths Group, a significant Australian retail corporation that operates in the grocery, alcohol, and general merchandise sectors (Sumarliah et al., 2021). The business has created a thorough risk management plan that assesses potential threats and considers risk mitigation strategies in order to handle these risks effectively.
Supply Chain Disruptions
A crucial part of Woolworths' operation is its supply chain, which makes sure that stores are stocked with necessary goods. It is thought likely that the indicated risk of supply chain interruptions due to natural catastrophes or transportation problems would materialize. The availability of goods in stores could be significantly impacted by such disruptions. Woolworths is working to diversify its supplier base to lower reliance on a single source and create backup distribution channels in order to handle this risk. Even in the event of supply chain problems, these steps will aid in preserving the flow of merchandise to stores.
Cybersecurity Breach
In the current digital era, cybersecurity is of utmost importance for any firm, and Woolworths is aware of how serious this issue is. It's conceivable that there will be a cybersecurity breach, which might have serious repercussions like data theft, financial losses, and reputational harm (Njomane and Telukdarie, 2022). Woolworths keeps making major investments in employee training, cybersecurity safeguards, and incident response procedures to reduce this risk. By doing this, the business hopes to lower the possibility of a breach and lessen the impact through quick and efficient reactions.
Economic Downturn
Economic downturns can have a big effect on customer buying habits, which impacts Woolworths' revenue. Although a moderate chance of a recession is considered, the effects might be significant. Woolworths keeps their business strategy flexible to mitigate this risk. It keeps a careful eye on economic indicators, enabling the business to swiftly modify its strategies in reaction to shifting economic conditions. During economic downturns, this agility is essential for cost-cutting and marketing tactics.
Product Recall
Even though product recalls are not common, they can significantly harm a retailer's standing and bottom line. Although Woolworths understands that a product recall is improbable, it would still have a big impact (Parkinson and Parkinson, 2018). The business keeps strict quality control standards in place, performs routine product inspections, and has a well-thought-out recall plan in place to mitigate this risk. These steps guarantee that any possible safety issues are swiftly addressed, reducing the negative effects on clients and the company's reputation.
Natural Disasters
Given that its headquarters are in Australia, Woolworths is vulnerable to calamities like floods and bushfires. These occurrences may interfere with transportation, harm infrastructure, and affect business operations. Although a natural disaster is considered rare, the effects might be severe. Woolworths has extensive disaster recovery strategies in place in case of such occurrences. In order to keep businesses open and able to serve customers even in the face of natural disasters, these plans also include preparations for backup power sources and emergency supply channels.
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Business Impact Analysis for Woolworths Group
A key element of the risk management and business continuity planning at Woolworths Group is the Business Impact Analysis (BIA). It entails a methodical evaluation of the possible effects that different risks and interruptions could have on the company's crucial business operations (Wang, 2022). To ensure the company's resilience in the face of adversity, this study is crucial for establishing priorities and recovery objectives.
Critical Business Activities
• Supply Chain Management: Woolworths heavily relies on a convoluted supply chain to have a wide range of goods in stock in its retail locations. Product shortages and decreased customer satisfaction may result from a supply chain disruption, such as one that affects vital suppliers or transportation networks due to a natural disaster.
• Point of Sale (POS) Systems: The retail operations of Woolworths depend heavily on its point-of-sale technology (Van Kampen and Kirkham, 2020). Any significant disruption to these systems, whether brought on by a cyberattack or a technical issue, can prevent transactions from being processed, which can cost money and annoy customers.
• Distribution and Logistics: Logistics and distribution must be effective if goods are to be delivered from suppliers to retailers. Any disruption in this sector, whether as a result of supply chain problems or transportation difficulties, might lead to empty store shelves and delayed deliveries, which would have an impact on sales and customer confidence.
• Customer Data Management: Numerous customer records, including personal data and purchasing history, are kept by Woolworths (Boustani and Pallavicini, 2022). Whether due to system malfunctions or cyberattacks, a breach or loss of this data could result in legal trouble, reputational harm, and regulatory fines.
Impact Assessment and Recovery Objectives
Woolworths must evaluate the probable effects of disruptions and ascertain how long the company can operate without carrying out each of these essential business functions. Setting Recovery Time Objectives (RTOs) to determine when these operations must be fully functioning in order to prevent significant financial loss requires the use of these information.
The BIA aids Woolworths in deciding how to focus its recovery efforts. For instance, knowing that the business can sustain a one-day disruption in customer data management but only two weeks without proper supply chain management allows resources to be allocated and planning efforts to be made accordingly.
Incident Response Plan
The following critical occurrences are ones for which Woolworths should have an incident response plan in place:
1. Cybersecurity Breach Response: The incident response team is promptly activated in the case of a cybersecurity breach. This group consists of communication experts, legal counsel, and IT specialists. Isolating affected systems is their main objective in order to stop further damage and data loss (Xu, 2022). In order to ascertain the scope of the breach and the data that was compromised, they perform a forensic examination. Woolworths has a predetermined communication plan in place to quickly contact concerned customers while upholding data privacy laws. In order to stop future intrusions, they perform security upgrades and updates simultaneously.
2. Supply Chain Disruption Response: Woolworths mobilizes a specialized reaction team in the event of a supply chain disruption. To determine alternative supply routes and examine the impact, this team collaborates closely with suppliers. In order to keep customers and shop managers informed about product availability, they also maintain constant communication. To guarantee that store operations are not significantly disrupted, the corporation keeps a stockpile of necessary goods.
3. Natural Disaster Response: When a natural disaster strikes, Woolworths puts employee safety first and deploys its emergency response teams. These teams work with local law enforcement to examine store and distribution facility damage. Emergency communication techniques and predetermined evacuation procedures are both part of the company's incident response plan (Pinchuck, 2023). Recovery activities are started to reopen stores and resume regular operations as soon as possible after the immediate safety issues have been addressed.
4. Product Recall Response: Woolworths' response to a product recall is distinguished by its promptness and openness. They segregate the impacted products, inform customers, and carry out in-depth investigations to ascertain the reason for the recall. To guarantee adherence to recall processes, the incident response team collaborates with pertinent regulatory agencies and authorities. The organization prioritizes open communication and keeps a crisis communication plan in place to manage public perception and trust.
Recovery Plan
Woolworths should prioritize the following recovery techniques in the event of a critical incident:
• Supply Chain Recovery: Woolworths is aware of the critical significance of an efficient supply chain. The recovery strategy places a strong emphasis on flexibility and diversification in the case of a disruption. Alternative supply lines are found and created beforehand, making it possible to quickly reroute supplies to impacted stores (Crocetti et al., 2023). Working closely with important suppliers guarantees a coordinated response, hastening inventory replenishment. This recovery strategy includes contingency agreements with logistical partners and cross-training of workers to reduce disruptions.
• POS System Recovery: The POS system is essential to how stores operate. The recovery plan places a priority on quickly resuming operation in the event of a system malfunction or cyberattack. This entails setting up backup POS systems, frequently on the cloud, to carry on business in case of outage. The preservation of transaction history and client data is guaranteed via data recovery from secure backups. In order to maintain company continuity, staff members also undertake manual transaction processing training.
• Distribution and Logistics Recovery: Restocking stores and assuring on-time delivery depend on distribution and logistics (Redda, 2021). In order to speed up the distribution process, additional resources are being deployed along with the activation of secondary distribution centers and rerouting of deliveries through unaffected channels. The key to maximizing this recovery process is cooperation with transportation partners.
• Customer Data Recovery: Data recovery and protection for customers are essential. This plan prioritizes restoring client data from secure backups in the event of a breach or data loss. To guarantee the correctness and completeness of retrieved data, stringent data integrity checks are carried out. In order to stop future incidents, improved data security measures are applied concurrently.
Reflection
1. Assessment: For Woolworths, regular risk assessments are crucial. The retail environment is changing due to shifting consumer tastes, new technologies, and potential threats. To improve in this area, the business needs to put together a specialized team that will monitor market developments, potential hazards, and legislative changes (Freeburn and Ramsay, 2020). In order to keep the risk management strategy strong and forward-looking, they should also engage in scenario planning to foresee potential future issues.
2. Preparedness: The key elements of preparedness are employee readiness and training. To make sure staff members are prepared to handle a variety of issues, Woolworths should regularly review and improve its training programs. Additionally, regular training exercises and simulations, such those for a cyberattack or an interruption of the supply chain, can assist pinpoint problem areas and guarantee a coordinated reaction.
3. Response: Clear communication, quick decision-making, and coordinated actions are essential for an effective reaction. In order to strengthen communication procedures, incident command systems, and departmental coordination, Woolworths should routinely examine previous occurrences and reactions. It's crucial to carry out post-incident reviews and include the lessons discovered in revised reaction plans.
4. Recovery: Recovery is an opportunity to build resilience, not just go back to normal. Woolworths needs to invest in innovations that speed up recovery time while also evaluating the efficacy of its recovery techniques on a regular basis (Wright et al., 2021). Utilizing cloud technologies for data recovery or diversifying supplier networks to speed up supply chain recovery are two examples of how to do this.
Conclusion
In conclusion, as a major player in the retail sector, Woolworths Group is exposed to a range of hazards that could jeopardize its daily business and financial stability. These dangers include natural disaster effects, product recalls, supply chain disruptions, cybersecurity breaches, and economic downturns. Woolworths must regularly evaluate and modify its risk management measures to maintain its resiliency and readiness. The supply chain management, point of sale systems, distribution, and customer data management have all been identified as key business activities, underscoring the significance of thorough recovery plans with clear Recovery Time Objectives (RTOs). Additionally, a strong incident response strategy is essential to lessen the effects of major incidents. Last but not least, continual development of the four components of business continuity planning (assessment, preparedness, reaction, and recovery) will increase Woolworths' capacity to deal with unforeseen interruptions and effectively recover from them.
Reference
Boustani, M. and Pallavicini, S., 2022. 'Woolworths Group Ltd v Gazcorp Pty Ltd'[2022] NSWCA 19; BC202200985: Abandonment and frustration. AUSTRALIAN PROPERTY LAW BULLETIN, 37(2), pp.24-26.
Crocetti, A.C., Cubillo, B., Walker, T., Mitchell, F., Paradies, Y., Backholer, K. and Browne, J., 2023. ‘A recipe for cultural disaster!’–a case study of Woolworths Group’s proposal to build an alcohol megastore in Darwin, Northern Territory. Globalization and health, 19(1), p.38.
Freeburn, L. and Ramsay, I., 2020. Green bonds: legal and policy issues. Capital Markets Law Journal, 15(4), pp.418-442.
Njomane, L. and Telukdarie, A., 2022. Impact of COVID-19 food supply chain: Comparing the use of IoT in three South African supermarkets. Technology in Society, 71, p.102051.
Parkinson, M.M. and Parkinson, M.M., 2018. Case Study 4: Woolworths Group plc. Corporate Governance in Transition: Dealing with Financial Distress and Insolvency in UK Companies, pp.203-221.
Pinchuck, S., 2023. Re: Woolworths Group Limited–Application for an individual exemption from the requirement to hold a retailer authorisation.
Redda, E.H., 2021. Initial impact assessment of Covid-19 on retailing: changing consumer behaviour and retail trade sales. Journal of Contemporary Management, 18(2), pp.22-41.
Sumarliah, E., Ahmad, M.N., Usmanova, K., Mousa, K. and Asad, M., 2021. Reflecting Coronavirus outbreak in the risk management of the apparel supply chain. IEEE Engineering Management Review, 50(1), pp.31-42.
Van Kampen, T. and Kirkham, R., 2020. Assessment of the Supermarkets and Grocery Stores Sector in Australia: A Case Study of Woolworths and Coles using DEA and VAIC™. Journal of New Business Ideas & Trends, 18(1), pp.1-11.
Wang, Y., 2022. A Survey and Research on Woolworths Customer Satisfaction. American Journal of Industrial and Business Management, 12(5), pp.1006-1011.
Wright, C.J., Clifford, S., Miller, M., D'Abbs, P., Giorgi, C., Crane, M. and Smith, J.A., 2021. While Woolworths reaps the rewards, the Northern Territory community will be left to clean up the mess. Health Promotion Journal of Australia: Official Journal of Australian Association of Health Promotion Professionals, 32(2), pp.158-162.
Xu, Y., 2022, December. Complete the Valuation Analysis with Discounted Cashflow Valuation and Multiple Valuations of Enterprise Value Mutiple, Price to Earning, and Pricing to Book Value. In 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022) (pp. 28-33). Atlantis Press.
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