CASE STUDY
UPS Store
The UPS Store grew out of United Parcel s acquisition of Mail Boxes Etc. in 2001.
Mail Boxes Etc. provided copying services, a place for individuals to pick up their
mail, and mailing services with firms such as UPS. The purchase by UPS was
intended to give the package delivery firm a retail connection. Shortly, thereafter,
UPS allied itself with Office Depot and Staples to provide shipping services in
their stores. To enhance its services, UPS has been consistently adding on-line
tracking and other services.
In developing these connections to the customer, the goal has been to create a
seamless integration of technology that makes it easier for consumers to choose
UPS. Thus, there was not a separate technology strategy, but instead, technology
was a key part of what enabled the strategy.
The way UPS achieved this is through the development of a consistent set of
business activities. For example, information technology is not treated as a separate
functional area. Instead, it is integrated into all of the working teams in the firm.
Thus, rather than asking technology support individuals if there is technology to
support the goal after the goal was already generated, there are technology
professionals involved in all aspects of the firm. Goals are generated with
technology in mind. This role for technology is enhanced by the fact that the chief
information officer is on the business strategy steering committee. All strategies
that come out of the firm have input from a technology perspective. UPS leads in
delivery-tracking technology, package-flow technology, and data analysis.
UPS has one of the largest DB2 databases in the world (an IBM product that is a
relational database management system) to help track all of its packages from the
different customer contact points. In addition, UPS uses Oracle databases to
provide package information to drivers and customers as well as to store and
analyze sales patterns, financial information, and marketing data. Because the trend
in this industry is toward smaller, more frequent shipments by and for individuals,
the detail of the UPS system should afford it a competitive advantage over its
competitors.
QUESTIONS
1. Discuss technology intelligence and technology strategy based on your
understanding?
2. What other areas do you think UPS would align to ensure that technology
was fully integrated into the firm's strategy?
3. UPS has two major competitors-the United States Postal Service and
Federal Express. What does UPS lead in technology mean for them?
United Parcel Service (UPS) is the world's largest bundle conveyance organization
as well as a leader in the logistics and transportation services market. James Casey
was the originator of the organization initially naming the business American
Messenger Company, based out of Seattle, Washington. UPS delivers 1.8 million
shipping customers in 200 countries, in 2009 the organization conveyed over 3.8
billion packages worldwide. UPS is in an extremely serious industry with rivals
such as United States Postal Services and Federal Express to give some examples.
Besides, UPS has kept the speed of being a global leader in the bundle conveyance
industry.
Step-by-step explanation
ANSWER-1.
Technology Intelligence (TI) is an action that enables companies to distinguish the
innovative opportunities and threats that could influence the future development
and survival of their business. It aims to catch and disseminate the innovative
information required for strategic planning and decision-making. As technology
life cycles shorten and businesses become more globalized having compelling TI
capabilities is becoming increasingly significant. Technology strategy (information
technology strategy or IT strategy) is the general arrangement that consists of
objectives, principles, and tactics relating to the use of technologies within a
specific organization. Technology Intelligence (TI) is a movement that enables
companies to recognize the mechanical opportunities and threats that could
influence the future development and survival of their business. It aims to catch
and disseminate the mechanical information required for strategic planning and
decision-making. Technology intelligence has turned into a central business
practice to contend in an increasingly advanced, worldwide, and dynamic
environment such as the present day. Especially for technology companies,
information-intensive organizations, and leaders in R&D projects.
Strategic monitoring, intelligence, and environmental scanning are associated with
information and information the board help to know about the latest competitors'
news and systematically monitor the business environment. Additionally,
supporting anticipation changes, minimizing risks, and taking benefit of innovation
opportunities are the base to perform better decision-making. UPS relies on several
technologies to gain an upper hand against rival companies. The organization
streamlines processes by utilization of standardized tag scanning systems, wireless
networks, a mainframe PC, a convenient computing gadget, software products, and
the internet.
ANSWER- 2.
Technology integration with a firm's strategy refers to efforts made by an
organization to include technology in every one of the activities of the
organization. Thus, technology becomes a piece of the organization's business. UP
Services is a messenger organization and is a worldwide monster, the organization
procured other companies such as M Box, O Depot, and Staples. The
organization's level headed behind the acquisitions is to include companies that
form an integral part in their supply chain process. The organization's goals are to
refresh the customers by providing them with a tracking number of the bundle. The
organization is ready to get refreshed information by using the latest technology
and thus technology is integrated into its services at all points. The organization
uses progressed database the board software to refresh its information bases. UP
services gained some companies which are connected to its business and are a
piece of the logistics. The organization is involved in the business of dispatch
business and its logistics involves operations such as making deliveries to clients,
addressing the right parcels to the right companies, making sure the parcels are
reaching the customers on schedule.
Thus the organization needs to include a database Management Company and IT
Services Company that find the right information such as to request tracking and
other services. Besides, the major region that the UPS will align into the firm's
strategy will be the training and advancement associated with the implementation
of new technology.
ANSWER- 3.
The point of the organization is to inform customers by sending them a bundle
tracking number. Using the new technologies, the organization is ready to get
current information and so technology is integrated at all stages of its services. As
an integral piece of its services, UPS created technologies and was therefore ready
to give its consumers quality services. Competitors such as UPS and FedEx face
the test looked at by the UPS market. This is because, as a feature of its activities,
UPS has incorporated information systems and also integrated its services with
technology. A massive measure of a piece of the pie, as well as the upper hand for
the two rivals, would diminish in the long run without the necessary improvements
and adjusting to the specialized lead of UPS. UP Services is a messenger
organization and is a worldwide monster, the organization gained other companies
such as M Box, O Depot, and Staples. The organization's level headed behind the
acquisitions is to include companies that form an integral part in their supply chain
process.
The organization's objectives are to refresh the customers by providing them with a
tracking number of the package. The organization is ready to get refreshed
information by using the latest technology and thus technology is integrated into its
services at all points. UP Services made technology an integrated piece of its
services and thusly it was ready to offer better services to its clients. Competitors
such as the US postal division and the F Express are facing danger from the
competition presented by UP services. This is because of the way that UP Services
integrated information technology as a piece of their operations and thus integrated
its services with technology. Without the requisite changes and adapting to the
innovative lead by UP services, a gigantic measure of the piece of the pie, as well
as the upper hand for the two competitors, will decline in long run.