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Running Head: UPS INFORMATION TECHNOLOGY 1

Case Analysis #1: UPS Competes Globally with Information Technology ITM102 – 061 Professor Shah

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Case Analysis #1: UPS Competes Globally with Information Technology Summary and Key Points The article discussed the several ways UPS uses information technology to conduct business efficiently. The article mentioned the use of bar-code labels which are attached to each package which enables UPS to track the packages as well as provide information about the sender, the delivery location and time it must arrive. In addition, UPS uses a software called ORION to produce the most efficient paths for a driver to take. UPS drivers use a device called DIAD which can obtain signatures from customers as well as pickup and delivery information for packages. UPS created a system called OMS which they use to assess inventory and track critical parts for other companies. They use their expertise and experience in logistics, and information technology to provide services for other companies who need these systems for a rate that is much cheaper (Laudon, & Laudon, 2018). Discussion Questions 1. What are the inputs, processing, and outputs of UPS’s package tracking system? One of the inputs occurs when dispatchers input all the stops that one driver needs to make into the ORION system. This system then processes all the stops and outputs the most efficient route possible that will result in the lowest distance travelled. Another key input is through the DIAD. This device is used by drivers to capture the signatures and delivery information of the customers. This information is processed at UPS’s computer network to output proof of delivery or provide information to customer service representatives when they need to answer customers’ inquiries (Laudon, & Laudon, 2018).

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2. What technologies are used by UPS? How are these technologies related to UPS’s business strategy? UPS uses several vital technologies. They use their scannable bar-code label on their packages, the ORION and OMS systems, and the DIAD. These technologies all work together to efficiently organize and manage UPS’s business. The bar-code labels help to give each package a unique identification which can be authorized through their system and used to obtain information about the destination of the product, and what time it should arrive, among others. The OMS and ORION systems help UPS to be organized in its delivery and logistics which are vital to the success of UPS’s business. Finally, the DIAD is important to verify information about the product and the customer and is used to provide proof of delivery to the customer. All these technologies help UPS be one of the most organized and fastest delivery services (Laudon, & Laudon, 2018). 3. What strategic business objectives do UPS’s information systems address? Each system used by UPS helps their business objectives. The DIAD (along with the bar codes) helps to provide accurate and reliable information about the delivery as well information about the customer and sender which UPS can provide to the customer. The ORION system helps UPS drivers to be as efficient as possible saving UPS millions of dollars every year as well as getting packages to their destinations as soon as possible. The OMS system manages global orders and critical inventory quickly which is important in ensuring their process is efficient (Laudon, & Laudon, 2018).

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4. What would happen if UPS’s information system were not available? UPS will have a contingency plan in place of some type of disaster that would render their information systems to be inactive. In the case that even that fails (or something else that prevents UPS from using their system) it would be disastrous for the company. Information systems are the core of their business. Without having the technology to scan the barcodes on each package, or planning trips for the drivers, UPS’s entire foundation will collapse. The longer this situation lasts, the likelier that UPS will go bankrupt/out of business. In addition, many other companies using their OMS system would suffer as well due to the high degree of reliability that other companies put on this system (Laudon, & Laudon, 2018). Relevant Research/Comments UPS has used information technology to maximize their efficiency and have done it extremely well. Not only has UPS created systems and methods of managing packages that outshines their competitors, but have managed to connect all the different technologies into one efficient, reliable, and cost-effective system. Looking to the future, UPS has decided to solve one big issue: online shopping. Online shopping often means much smaller distances which is an issue for UPS because their system is perfected for deliveries ranging from across the country. To solve this problem UPS has invested $7 billion a year to rework their delivery system and upgrade their technologies so that they can handle the large traffic that online shopping brings (Brown, 2018). The future of UPS is uncertain. The revamping of their system may work flawlessly giving them a huge advantage over other companies, or it could be a disaster resulting in the company losing a lot of money, and leaving them behind competitors.

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References Black, T. (2018, September 12). UPS’s $7 Billion-a-Year Spending Spree Reaches a Moment of Truth. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2018-0912/ups-s-7-billion-a-year-spending-spree-reaches-a-moment-of-truth. Laudon, K., & Laudon, J. (2018). Information Systems in Global Business Today. In A. Gilfillan (Ed.), Management Information Systems (pp. 23-24). New York, NY: Pearson Education....