Modeling the FedEx IT division: a system dynamics approach to strategic IT planning
Abstract This paper describes the development of a macro-scale model that predicts staffing, training and infrastructure funding over a five year period for the FedEx Information Technology Division. A system dynamics model was built using regressions on business, system and productivity metrics coupled with business projections. The model generated expected demands for development, support and infrastructure rollout. IT management was provided with a dashboard of strategic factors that could be adjusted to determine the impact on workloads and productivity of the IT organization. Model outputs were judged acceptable by management for order-of-magnitude budget and planning estimates. More important, the exercise galvanized IT management's commitment to process improvements and architecture and focussed attention on human resource strategies.