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ICT352 ICT Project Management
Question:
Australia Forestry International is a seven-year-old private company with roots in the American tree farming industry with an interesting past. They used to be astate-owned organization, but the state divested their interest in the sector and now leases the land to AFI. This has brought with it some legacyissues including a contingent of employees ‘the old-timers’ who are used to antiquated technology,systems and a limited range of operations on the estate. The company receives most of its revenue fromdomestic markets (selling wood to sawmills, pulp mills, board manufactures, etc.) for consumer products but has recently been more and more engagedwith international markets (namely China and Korea)exporting high grade logs for veneer and cabinet making. They desire to grow the business in the most profitable and sustainable way and there are internal discussions as to how to do this.
Project 1 – Incorporation of Advanced Technology into Operations
The forest sector is always changing, and businesses must adapt to maintain their competitive posture. In line with Hugh’s vision of incorporating technology to streamline operations and save costs AFI has requested a project be developed to provide a roadmap for technology trials, deployment and operationalisation of datacapture. It is thought that drones could be used for insect spraying andinventory management while unmanned harvesting equipment (machines that cut down trees) could also be employed. Additionally, an app could be developed to better capture and disseminate data and information throughout the company, though they are open to other suggestions that will help them best change and adapt to the industry and remain competitive. They request that this project be operational in 2 years and be financially viable (i.e. investment required is less than project costs over a 10-year horizon). The company has allocated 75k budget to scope the work and up to a 5 million-dollar budget for full technology deployment.
Project 2 – Research and Development Into Bushfire Resilience
The latest bushfire season was one of the worst on record with much of the plantation coming under threat. Many say that this season was 10x worse than usual in Queensland and it was 10x worse than that in NSW. AFI has really been struggling with the business and operational ramifications of this disastrous season (losing crops, having to change crop rotation to meet demand, varying planting schemes and timing, clean-up, etc.) and wants to develop a project to help mitigate the impacts of such extreme weather and conditions in the future. They believe that research and development into topics such as 1) drought and fire resistant genetically modified tree species, 2) increased use of low intensityburning on their plantations (deliberately setting fire to the crop periodically to lower the threat of ahigh intensity catastrophic crop killing burns), and/or 3) research to determine if they should forgo, abandon or relocate crops due to regional climatic forecasts. The group expects a comprehensive research proposal (goal, methods, deliverables), thorough reporting of results and contextualized advice (strategy, financial, etc.) and recommendations for deployment for a budget of 100k.
Project 3 – Domestic Biofuels Market Emergence
Amid increasing high domestic energy costs and improving technologies there now appears to be markets for harvesting by-products (material that is left over after logs are taken out – branches, tree tops, etc.). This material has historically been burned on site before replanting. AFI has been fielding calls from businesses asking to purchase this material to be burned for fuel, made into pellets for the export power market or to be used as the source material for emerging biochemical products. Given this potential for an increased revenue stream and lowering costs of replanting the group is quite keen onexploring this opportunity. As a pet project of Jacko, AFI has approached you with a project to developthe business case for AFI and to set up a subsidiary organization that would provide the collection,processing (chipping) and transportation of material to end customers. The outcome of the productneeds to provide a holistic view of the business ramifications of the shift, operations and financialfeasibility of the investment. This project will receive an internal R&D budget of 40k. Along the sameline they have toyed with the idea of creating a Customer Relationship Management (CRM) app. This app could be developed to log, track and sort these enquiries and eventual clients along with their existing clients. This project would receive a budget of 75k.
Project 4 – Export Supply Chain and Coronavirus Adaptation
AFI is an Australian company with an export business tied to Asian markets, namely China, Japan and South Korea. These markets have been increasingly important to AFI and are generally seen to be a lucrative and growth market for their products. As with any international business and supply chainthere are risks and rewards. With the recent coronavirus outbreak in mainland China (and other risksabroad), AFIs cashflow and markets are being threatened as trade slows down due to decontaminationrequirements and weaker than usual Asian demand. AFI has requested that you expedite a project aimed at evaluating different markets and establishing new trade routes to further diversify their export market business. They request that you provide a thorough market analysis, short term guidance and long-term roadmap for a more resilient export market supply chain. This project would receive a budget of 50k.
Project 5 – Western Australia Expansion
AFI has always had ambition to grow the company outside of Queensland and NSW. Given a shifting landscape of supply and demand in the region and the bushfire threat they have been looking at land in Western Australia. AFI has an opportunity to purchase 50,000ha of land in WA to grow blue gum crops (high value for paper production). You have been approached to plan a project to effectively start up a new planation. This project will include land acquisition, field office establishment and initial forestry crop planting. They also want to develop a plan for organizational change and adaptation to include this separate unit outside their current corecompetencies. To make this happen, AFI has provided a budget of 10 million dollars over the next three years.
Project 6 – Marketing – Domestic Products
AFI, being of traditional roots has generally taken a conservative approach to expansion and diversification, but increasingly growers in other parts of the world (South America, Southeast Asia) have been able to cut the cost of production and gain a competitive advantage. Australian counterparts tend to have a higher wages and more stringent environmental restrictions attached with their business. The team would love to engage the public in a market awareness campaign espousing the sustainability of their product, quality of their product and value of domestic products and certification methods. Effectively, they want to ensure they continue to get a premium for their domestic products and hedge against increasingly cheaper import wood varieties. The team has asked you to complete a project that would survey the public on views of the timber industry, value placed on domestic industry and willingness to absorb premium pricing for their products. Furthermore, they want to engage politicians to encourage them to place tariffs on ‘unsustainable’ import timber threatening the viability of their business model. AFI has provided a 50k dollar budget for your services to develop and deliver a project that would address these issues.
ICT352 ICT Project Management
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