Section 3 – Reading No 2 – UPS
Questions
Question 1: What are the inputs, processing, and outputs of UPS’s package tracking system?
Question 2 a. What technologies are used by UPS?
Question 2 b. How are these technologies related to UPS's business strategy?
Question 3: What strategic business objectives do UPS’s information systems address?
Question 4: What would happen if UPS’s information systems were not available?
Question 5: Specify the technology dimension of UPS
Question 6: Specify the management dimension of UPS
Question 7: Specify the organizational dimension of UPS
Question 8: Specify the technology dimension of UPS
Answer sheet template
Question 1: What are the inputs, processing, and outputs of UPS’s package tracking
system?
• Inputs: The inputs include
• Package information
• Signature of the customer
• Package pickup
• Time-card information
• Package delivery
• Clearance documents of the customer
• Billing details
• Processing:
• The data are transmitted to a central computer and stored for retrieval.
• UPS’s center computer sent to the distribution center nearest its final destination.
• Dispatchers at this center download the label data and create the most efficient
delivery route
• Outputs: The outputs include
• pickup and delivery times,
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• Current location
• Recipient for the package
• Pickup time and delivery time
• Specific driver details
• Route details
• Summary reports of the package
Question 2 a. What technologies are used by UPS?
• Handheld computers (DIADs)
• Routing software
• Barcode Scanner
• Wireless Communication
• Computer network for storage and processing
• UPS's central computer (large mainframe computers)
• Web browser
• Automated package tracking system
Question 2 b. How are these technologies related to UPS's business strategy?
UPS's business strategy?????
• Deliver "the greatest service at the most affordable prices."
How are these technologies related to UPS's business strategy?
• the customer’s ability to track his/her package via the UPS Web site.
• Improve efficiency and make parcel service’s cheaper
• UPS uses DIAD which can be accessed by wireless network
• Drivers can know more detailed information from handheld PCs that captures
customer signatures automatically
• Help the strategy to increase flexibility in business
• Help the business to integrate tracking, rating, address validation and other stuffs to
be done easily in a real time
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Question 3: What strategic business objectives do UPS’s information systems address?
What are strategic business objectives?
• Operational excellence
• New products, services, and business models
• Ability to provide services to almost anyone anywhere
• Customer and supplier intimacy
• Improved decision making
• Competitive advantage
• Survival
What strategic business objectives do UPS’s information systems address?
• Operational excellence:
• Maintain leadership in small-package delivery services by investing heavily
in advanced information technology.
• The company’s info system is an important part in operating the company’s
process
• New products, services, and business models:
• Achieve customer and supplier intimacy
• An information system helps managers in decision-making
• Achieve competitive advantage
• Customer and supplier intimacy:
• Customers can download and print their own labels using special software
provided by UPS or by accessing the UPS Web site.
• Keeping costs low and simplifying processes all add up to increase both
sales and intimacy with customers those other competitors can't duplicate.
• Improved decision making:
• Special software creates the most efficient delivery route for each driver
that considers traffic, weather conditions, and the location of each stop.
• Competitive advantage:
• High level customer service.
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• Customers can track packages promptly.
• Data is stored using cutting-edge technology.
• Variety of information technologies is available.
Question 4: What would happen if UPS’s information systems were not available?
• Arguably, UPS might not be able to compete effectively without
technology and will not become the largest package delivery company as it
is today
• Incurs more cost
• Slow in providing information to customers
• Slow operation
THE THREE DIMENSIONS OF INFORMATION SYSTEMS
Question 5: Specify the organizational dimension of UPS
The organizational dimension of The organizational dimension of UPS
information systems
Hierarchy of authority, responsibility • Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production and service workers
Separation of business functions • Sale marketing
• Human resource management
• Finance and Accounting
Unique business processes • Identifying package
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• Taking inventory
• Tracking the package
• Providing package reports
Unique business culture • UPS promises to provide: “best service and
lowest rates.”
• Both buyer and driver can conveniently track the
progress of the order using the management
information system.
Organizational politics • Managers, workers need to be provided with
enough information
• UPS’s drivers are trained professionally
• Customers are provided with package data
Question 6: Specify the managerial dimension of UPS
The managerial dimension of information The managerial dimension of UPS
systems
• Managers set organizational strategy for • Setting organizational strategy
responding to business challenges • To save money, UPS has created
a software to find the most
efficient daily route for each
driver.
• In addition, managers must act creatively: • Deciding to use automation to
• Creation of new products and services increase the ease of sending a
• Occasionally re-creating the package using UPS and of
organization checking its delivery status,
thereby reducing delivery costs
and increasing sales revenues
• Deciding to use automation to
increase the ease of sending a
package using UPS and of
checking its delivery status,
thereby reducing delivery costs
and increasing sales revenues
• Provide UPS drivers handheld
computers to track the route and
capture customers’ signatures.
• Creating software that provides
services to subscribing
companies.
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Question 7: Specify the technological dimension of UPS
The technological dimension of The technological dimension of UPS
information systems
• Computer hardware and software Computer hardware
• Data management technology • Handheld computers
• Networking and • Barcode Scanner
telecommunications technology • Desktop computers
• Networks, the Internet, intranets Computer software
and extranets, World Wide Web • UPS in-house package tracking software
• IT infrastructure: provides • Software to access World Wide Web
platform that system is built on Storage technology
• Package delivery data: pickup time,
pickup delivery, customer information…
Communication technology
• The Internet
• Intranets
• Extranets
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