CHAPTER 1 : INFORMATION SYSTEMS
IN GLOBAL BUSINESS TODAY
INTERACTIVE SESSION : TECHNOLOGY
ARTICLE : UPS COMPETES
GLOBALLY WITH INFORMATION TECHNOLOGY
1. What are the
inputs, processing and outputs of UPS’s package tracking system?
Input :- capture raw data from organization or external
environment. In this issue the input are when the UPS workers scan shipping
information on the package label and feed data about the progress of the
package by using bar code device into the central computer
Processing :- Convert raw data into meaningful form. By
using UPS Information System all raw data from bar code scan can be processed
and organized to produce into meaningful information such as delivery route of
packages, time in transit and schedule of pickup
Output :- Transferred process information to people or
activities that used it. Customers service representatives are able to check
the status of any package from desktop computers linked to the central
computers and respond immediately to inquiries from customers. UPS customers
can also access this information from the company web site using their own
computers or mobile phones.
2. What technologies are used by
UPS? How are these technologies related to UPS’s business
strategy?
Technology can be divided into two form, software and
hardware.
Software :- a.
Special software for label printing
b. UPS Web Site Domain
c.
Web-based; Post Sales Order Management System
d. UPS Supply Chain Solution
Hardware :- a. Delivery Information Acquisition Device
(DIAD)
b. Scannable bar-coded label
c. Fax machine
d. High end computer
This technology play an essential part to smoothen the daily
operation of UPS Parcel Service where it help arrange all important data of
parcel systematically. The data of parcel or packaging such as name of the
receiver, weight of parcel, type of parcel and so on.
3. What strategic
business objectives do UPS’s information system address?
a) To maintain a
high level of customer service while keeping costs low
b) Streamlining
its overall operations.
4. What would happen
if UPS’s information systems were not available?
a) Operational failure :- UPS
cannot achieve the efficiency to attain higher profitability with lower
cost. Currently by using
information system UPS can save its delivery trucks about 28 million miles
and burn 3 million fewer
gallons of fuel each year. It also cannot achieve better productivity of UPS
driver trucks without the
DIAD device.
b) UPS cannot expand their
business models :- Without information system UPS cannot build the
suitable software
application that support with mobile applications and mobile web site such as
I-Phone, Blackberry and
Android
c) Customer And Supplier
Intimacy ; Serving customer poorly, lead to customer dissatisfaction which
decrease revenue and
profits. For example without proper Information System, UPS were not able to
track the status of parcel
or packaging and inform back to their customer.
d) Poor Decision Making :- Without the information system, the UPS
driver or dispatch may not able to
send the parcel by using the
best route (short mile). This eventually will lead to poor response time.
e) Competitive Advantage :- UPS may be out thrown from their business
activity by its rival such as
FedEx and Airbone Express.
In addition UPS may not able to response to the customer in a real time.
f) Survival :- Information
System is play a crucial role for company in 21st Century to
survived, without it
UPS will collapse like other giant
company such as Borders “One a giant
became a weakling on its
kness”
