UPS Competes Globally with Information Technology

It is important to understand what information systems are and why they are
essential for running and managing a business. It is also important to
understand the different systems that support different groups or levels of
management. In addition, digital technology and the Internet play a key role
in executing major business processes in the enterprise. Also, it is
important to understand the ethical, social, and political issues raised by
information systems.
The case studies below provide you with an opportunity to critically analyze
events that are taking place in real-life businesses. This helps to develop
your critical thinking and research skills as you research each of these
scenarios.
For this assignment, review four case studies-two from Chapter 1 and two
from Chapter 2. Then, in an essay, evaluate the studies and respond to each
of the questions below, using both critical thinking and theory as well as
supporting documentation.
In Chapter 1, read the case study "UPS Competes Globally with Information
Technology" on pages 23-24 of the textbook. Then, answer the questions
below.
How does UPS use information systems technology to achieve its strategic
goals of being more efficient and customer oriented?
What would happen if the automated package tracking system was not
available?
Discuss how globalization has "flattened" the world.
In Chapter 2, read the case study "Data Changes How NFL Teams Play the Game
and How Fans See It" on pages 52-53 of the textbook. The, address the
prompts below.
Analyze how information systems are transforming business.
What types of systems does the NFL and its teams use?
What is the role that these systems play in improving both operations and
decision-making?
In Chapter 3, read the case study "Smart Products-Coming Your Way" on pages
102-103 of the textbook. Then, address the prompts below.
Explain the importance of collaboration and information sharing for
businesses.
Explain what a "smart" product is, and use an example.
How do smart products increase rivalry among firms?
In Chapter 4, read the case study "Are Cars Becoming Big Brother on Wheels?"
on pages 121-122 of the textbook. Then, address the prompts below.
Describe how new technology trends may cause ethical dilemmas.
Discuss at least one ethical, social, and political issue raised by embedded
cyber connections in cars.
Discuss how big data analytics are being applied to all of the data
generated by motor vehicles.
In formatting your case analysis, do not use the question-and-answer format;
instead, use an essay format with subheadings. Your APA-formatted case study
must be at least four pages in length (not counting the title and reference
pages).
You are required to use a minimum of three peer-reviewed, academic sources
that are no more than 5 years old (one may be your textbook). All sources
used, including the textbook, must be referenced; all paraphrased material
must have accompanying in-text citations.
Page 23-24
Information Technology
Information technology is one of many tools managers use to cope with
change. Computer hardware is the physical equipment used for input,
processing, and output activities in an information system. It consists of
the following: computers of various sizes and shapes (including mobile
handheld devices); various input, output, and storage devices; and
telecommunications devices that link computers together.
Computer software consists of the detailed, preprogrammed instructions that
control and coordinate the computer hardware components in an information
system. Chapter 5 describes the contemporary software and hardware platforms
used by firms today in greater detail.
Data management technology consists of the software governing the
organization of data on physical storage media. More detail on data
organization and access methods can be found in Chapter 6.
Networking and telecommunications technology, consisting of both physical
devices and software, links the various pieces of hardware and transfers
data from one physical location to another. Computers and communications
equipment can be connected in networks for sharing voice, data, images,
sound, and video. A network links two or more computers to share data or
resources, such as a printer.
The world's largest and most widely used network is the Internet. The
Internet is a global "network of networks" that uses universal standards
(described in Chapter 7) to connect millions of networks in more than 230
countries around the world.
The Internet has created a new "universal" technology platform on which to
build new products, services, strategies, and business models. This same
technology platform has internal uses, providing the connectivity to link
different systems and networks within the firm. Internal corporate networks
based on Internet technology are called intranets. Private intranets
extended to authorized users outside the organization are called extranets,
and firms use such networks to coordinate their activities with other firms
for making purchases, collaborating on design, and other interorganizational
work. For most business firms today, using Internet technology is both a
business necessity and a competitive advantage.
The World Wide Web is a service provided by the Internet that uses
universally accepted standards for storing, retrieving, formatting, and
displaying information in a page format on the Internet. Web pages contain
text, graphics, animations, sound, and video and are linked to other web
pages. By clicking on highlighted words or buttons on a web page, you can
link to related pages to find additional information and links to other
locations on the web. The web can serve as the foundation for new kinds of
information systems such as UPS's web-based package tracking system
described in the Interactive Session.
All of these technologies, along with the people required to run and manage
them, represent resources that can be shared throughout the organization and
constitute the firm's information technology (IT) infrastructure. The IT
infrastructure provides the foundation, or platform, on which the firm can
build its specific information systems. Each organization must carefully
design and manage its IT infrastructure so that it has the set of technology
services it needs for the work it wants to accomplish with information
systems. Chapters 5 through 8 of this book examine each major technology
component of information technology infrastructure and show how they all
work together to create the technology platform for the organization.
The Interactive Session on Technology describes some of the typical
technologies used in computer-based information systems today. UPS invests
heavily in information systems technology to make its business more
efficient and customer oriented. It uses an array of information
technologies, including bar code scanning systems, wireless networks, large
mainframe computers, handheld computers, the Internet, and many different
pieces of software for tracking packages, calculating fees, maintaining
customer accounts, and managing logistics.
Let's identify the organization, management, and technology elements in the
UPS package tracking system we have just described. The organization element
anchors the package tracking system in UPS's sales and production functions
(the main product of UPS is a service-package delivery). It specifies the
required procedures for identifying packages with both sender and recipient
information, taking inventory, tracking the packages en route, and providing
package status reports for UPS customers and customer service
representatives.
The system must also provide information to satisfy the needs of managers
and workers. UPS drivers need to be trained in both package pickup and
delivery procedures and in how to use the package tracking system so that
they can work efficiently and effectively. UPS customers may need some
training to use UPS in-house package tracking software or the UPS website.
UPS's management is responsible for monitoring service levels and costs and
for promoting the company's strategy of combining low cost and superior
service. Management decided to use computer systems to increase the ease of
sending a package using UPS and of checking its delivery status, thereby
reducing delivery costs and increasing sales revenues.
The technology supporting this system consists of handheld computers, bar
code scanners, desktop computers, wired and wireless communications
networks, UPS's data center, storage technology for the package delivery
data, UPS in-house package tracking software, and software to access the
World Wide Web. The result is an information system solution to the business
challenge of providing a high level of service with low prices in the face
of mounting competition.
Interactive Session Technology
UPS Competes Globally with Information Technology
United Parcel Service (UPS) started out in 1907 in a closet-sized basement
office. Jim Casey and Claude Ryan-two teenagers from Seattle with two
bicycles and one phone-promised the "best service and lowest rates." UPS has
used this formula successfully for more than a century to become the world's
largest ground and air package-delivery company. It's a global enterprise
with more than 454,000 employees, over 112,000 vehicles, and the world's
ninth-largest airline.
Today, UPS delivers 5.1 billion packages and documents in more than 220
countries and territories. The firm has been able to maintain leadership in
small-package delivery services despite stiff competition from FedEx and the
U.S. Postal Service by investing heavily in advanced information technology.
UPS spends more than $1 billion each year to maintain a high level of
customer service while keeping costs low and streamlining its overall
operations.
It all starts with the scannable bar-coded label attached to a package,
which contains detailed information about the sender, the destination, and
when the package should arrive. Customers can download and print their own
labels using special software provided by UPS or by accessing the UPS
website. Before the package is even picked up, information from the "smart"
label is transmitted to one of UPS's computer centers in Mahwah, New Jersey,
or Alpharetta, Georgia, and sent to the distribution center nearest its
final destination.
Dispatchers at this center download the label data and use special routing
software called ORION to create the most efficient delivery route for each
driver that considers traffic, weather conditions, and the location of each
stop. Each UPS driver makes an average of 100 stops per day. In a network
with 55,000 routes in the United States alone, shaving even one mile off
each driver's daily route translates into big savings: $50 million per year.
These savings are critical as UPS tries to boost earnings growth as more of
its business shifts to less-profitable e-commerce deliveries. UPS drivers
who used to drop off several heavy packages a day at one retailer now make
many stops scattered across residential neighborhoods, delivering one
lightweight package per household. The shift requires more fuel and more
time, increasing the cost to deliver each package.
The first thing a UPS driver picks up each day is a handheld computer called
a Delivery Information Acquisition Device (DIAD), which can access a
wireless cell phone network. As soon as the driver logs on, his or her day's
route is downloaded onto the handheld. The DIAD also automatically captures
customers' signatures along with pickup and delivery information. Package
tracking information is then transmitted to UPS's computer network for
storage and processing. From there, the information can be accessed
worldwide to provide proof of delivery to customers or to respond to
customer queries. It usually takes less than 60 seconds from the time a
driver presses "complete" on the DIAD for the new information to be
available on the web.
Through its automated package tracking system, UPS can monitor and even
reroute packages throughout the delivery process. At various points along
the route from sender to receiver, bar code devices scan shipping
information on the package label and feed data about the progress of the
package into the central computer. Customer 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's website using
their own computers or mobile phones. UPS now has mobile apps and a mobile
website for iPhone, BlackBerry, and Android smartphone users.
Anyone with a package to ship can access the UPS website to track packages,
check delivery routes, calculate shipping rates, determine time in transit,
print labels, and schedule a pickup. The data collected at the UPS website
are transmitted to the UPS central computer and then back to the customer
after processing. UPS also provides tools that enable customers, such Cisco
Systems, to embed UPS functions, such as tracking and cost calculations,
into their own websites so that they can track shipments without visiting
the UPS site.
UPS is now leveraging its decades of expertise managing its own global
delivery network to manage logistics and supply chain activities for other
companies. It created a UPS Supply Chain Solutions division that provides a
complete bundle of standardized services to subscribing companies at a
fraction of what it would cost to build their own systems and
infrastructure. These services include supply chain design and management,
freight forwarding, customs brokerage, mail services, multimodal
transportation, and financial services in addition to logistics services.
CandleScience, based in Durham, North Carolina, is an industry leader in the
candle and soap supply industry, providing raw materials such as waxes,
wicks, and fragrances to candle makers around the world. UPS worked with
CandleScience to accurately model shipping rates for the company and its
customers and to add a freight shipping option capability to its website.
UPS also helped CandleScience identify the optimal location for a new
warehouse for its West Coast customers. The new West Coast warehouse in
Sparks, Nevada lets the company reach some of its largest customers faster,
more efficiently and less expensively.
UPS provides both financial and shipping advice and services to Flags of
Valor, a small business based in Ashton, Virginia, which sells hundreds of
hand-crafted wooden flags each day to online customers. Using UPS Quantum
View Manage(r) technology, the staff can view and monitor outbound packages
and immediately respond to customer questions about order status. UPS
Capital(r), the financial service division of UPS, showed the company how to
protect its cash flow and assets by moving to a comprehensive insurance
plan.
Sources: Paul Ziobro, "UPS's $20 Billion Problem: Operations Stuck in the
20th Century," Wall Street Journal, June 15, 2018; www(dot)ups(dot)com, accessed
February 7, 2018; "Igniting Growth with CandleScience," UPS Compass, May
2017; and "Stars and Stripes Flying High," UPS Compass, December 2017.
Page 52-53
Data Changes How NFL Teams Play the Game and How Fans See It
All professional sports teams today collect detailed data on player and team
performance, fan behavior, and sales, and increasingly use these data to
drive decisions about every aspect of the business-marketing, ticketing,
player evaluation, and TV and digital media deals. This includes the
National Football League (NFL), which is increasingly turning to data to
improve how its players and teams perform and how fans experience the game.
Since 2014 the NFL has been capturing player movement data on the field by
putting nickel-sized radio frequency identification (RFID) tags beneath
players' shoulder pads to track every move they make. The information the
sensors gather is used by NFL teams to improve their training and strategy,
by commentators on live game broadcasts, and by fans attending games or
using the NFL app on the Xbox One.
The NFL's player tracking system is based on the Zebra Sports Solution
developed by Zebra Technologies, a Chicago-based firm specializing in
tracking technology that includes the bar codes on groceries and other
consumer goods and radio frequency identification (RFID) technology. The
Zebra Sports Solution system records players' speed, direction, location on
the field, how far they ran on a play, and how long they were sprinting,
jogging, or walking. The system can also determine what formation a team was
in and how players' speed or acceleration affects their on-field
performance. Want to know how hard Eli Manning is throwing passes or the
force with which a ball arrives in the hands of receiver Odell Beckham? The
system knows how to do all that.
NFL players have RFID chips in their left and right shoulder pads that
transmit data to 20 radio receivers strategically located in the lower and
upper levels of stadiums to collect data about how each player moves, using
metrics such as velocity, speed in miles per hour, and distance traveled.
From there the data are transmitted to an on-site server computer, where
Zebra's software matches an RFID tag to the correct player or official. The
football also has a sensor transmitting location data. The data are
generated in real-time as the game is being played. Each sensor transmits
its location about 25 times per player.
It takes just two seconds for data to be received by the motion sensors,
analyzed, and pushed out to remote cloud computers run by Amazon Web
Services for the NFL. From the NFL cloud computers, the data are shared with
fans, broadcasters, and NFL teams. The data captured by the NFL are
displayed to fans using the NFL Next Gen Stats website, NFL social media
channels, and the NFL app on Windows 10 and the Xbox One. The data are also
transmitted to the giant display screens in the arena to show fans during
the game.
The data have multiple uses. NFL teams use them to evaluate player and team
performance and to analyze tactics, such as whether it might be better to
press forward or to punt in a particular fourth-down situation. Data
transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to
the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a
deeper fan experience that gets fans more involved in the game.
Some of the statistics fans can now see on Next Gen Stats include Fastest
Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing
Leaders, and Receiving Leaders. Next Gen Stats also features charts for
individual players and videos that explain the differences and similarities
between players, teams, and games based on the data.
While the data may be entertaining for fans, they could prove strategic for
the teams. Data markers for each play are recorded, including type of
offense, type of defense, whether there was a huddle, all movement during
the play, and the yard line where the ball was stopped. The NFL runs
custom-created analytics to deliver visualizations of the data to each team
within 24 hours of the game, via a custom-built web portal. The system
displays charts and graphs as well as tabular data to let teams have more
insight. Each NFL team may also hire its own data analyst to wring even more
value from the data. The data are giving NFL fans, teams, coaches, and
players a deeper look into the game they love.
Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to
Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super
Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"
TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data
Operation Tracks Every Move on the Field," Information Management, December
7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra
Technologies, NFL Revamp Partnership For Third Season," SportTechie,
September 6, 2016.
Page 102-103
Data Changes How NFL Teams Play the Game and How Fans See It
All professional sports teams today collect detailed data on player and team
performance, fan behavior, and sales, and increasingly use these data to
drive decisions about every aspect of the business-marketing, ticketing,
player evaluation, and TV and digital media deals. This includes the
National Football League (NFL), which is increasingly turning to data to
improve how its players and teams perform and how fans experience the game.
Since 2014 the NFL has been capturing player movement data on the field by
putting nickel-sized radio frequency identification (RFID) tags beneath
players' shoulder pads to track every move they make. The information the
sensors gather is used by NFL teams to improve their training and strategy,
by commentators on live game broadcasts, and by fans attending games or
using the NFL app on the Xbox One.
The NFL's player tracking system is based on the Zebra Sports Solution
developed by Zebra Technologies, a Chicago-based firm specializing in
tracking technology that includes the bar codes on groceries and other
consumer goods and radio frequency identification (RFID) technology. The
Zebra Sports Solution system records players' speed, direction, location on
the field, how far they ran on a play, and how long they were sprinting,
jogging, or walking. The system can also determine what formation a team was
in and how players' speed or acceleration affects their on-field
performance. Want to know how hard Eli Manning is throwing passes or the
force with which a ball arrives in the hands of receiver Odell Beckham? The
system knows how to do all that.
NFL players have RFID chips in their left and right shoulder pads that
transmit data to 20 radio receivers strategically located in the lower and
upper levels of stadiums to collect data about how each player moves, using
metrics such as velocity, speed in miles per hour, and distance traveled.
From there the data are transmitted to an on-site server computer, where
Zebra's software matches an RFID tag to the correct player or official. The
football also has a sensor transmitting location data. The data are
generated in real-time as the game is being played. Each sensor transmits
its location about 25 times per player.
It takes just two seconds for data to be received by the motion sensors,
analyzed, and pushed out to remote cloud computers run by Amazon Web
Services for the NFL. From the NFL cloud computers, the data are shared with
fans, broadcasters, and NFL teams. The data captured by the NFL are
displayed to fans using the NFL Next Gen Stats website, NFL social media
channels, and the NFL app on Windows 10 and the Xbox One. The data are also
transmitted to the giant display screens in the arena to show fans during
the game.
The data have multiple uses. NFL teams use them to evaluate player and team
performance and to analyze tactics, such as whether it might be better to
press forward or to punt in a particular fourth-down situation. Data
transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to
the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a
deeper fan experience that gets fans more involved in the game.
Some of the statistics fans can now see on Next Gen Stats include Fastest
Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing
Leaders, and Receiving Leaders. Next Gen Stats also features charts for
individual players and videos that explain the differences and similarities
between players, teams, and games based on the data.
While the data may be entertaining for fans, they could prove strategic for
the teams. Data markers for each play are recorded, including type of
offense, type of defense, whether there was a huddle, all movement during
the play, and the yard line where the ball was stopped. The NFL runs
custom-created analytics to deliver visualizations of the data to each team
within 24 hours of the game, via a custom-built web portal. The system
displays charts and graphs as well as tabular data to let teams have more
insight. Each NFL team may also hire its own data analyst to wring even more
value from the data. The data are giving NFL fans, teams, coaches, and
players a deeper look into the game they love.
Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to
Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super
Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"
TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data
Operation Tracks Every Move on the Field," Information Management, December
7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra
Technologies, NFL Revamp Partnership For Third Season," SportTechie,
September 6, 2016.
Page 121-122
Data Changes How NFL Teams Play the Game and How Fans See It
All professional sports teams today collect detailed data on player and team
performance, fan behavior, and sales, and increasingly use these data to
drive decisions about every aspect of the business-marketing, ticketing,
player evaluation, and TV and digital media deals. This includes the
National Football League (NFL), which is increasingly turning to data to
improve how its players and teams perform and how fans experience the game.
Since 2014 the NFL has been capturing player movement data on the field by
putting nickel-sized radio frequency identification (RFID) tags beneath
players' shoulder pads to track every move they make. The information the
sensors gather is used by NFL teams to improve their training and strategy,
by commentators on live game broadcasts, and by fans attending games or
using the NFL app on the Xbox One.
The NFL's player tracking system is based on the Zebra Sports Solution
developed by Zebra Technologies, a Chicago-based firm specializing in
tracking technology that includes the bar codes on groceries and other
consumer goods and radio frequency identification (RFID) technology. The
Zebra Sports Solution system records players' speed, direction, location on
the field, how far they ran on a play, and how long they were sprinting,
jogging, or walking. The system can also determine what formation a team was
in and how players' speed or acceleration affects their on-field
performance. Want to know how hard Eli Manning is throwing passes or the
force with which a ball arrives in the hands of receiver Odell Beckham? The
system knows how to do all that.
NFL players have RFID chips in their left and right shoulder pads that
transmit data to 20 radio receivers strategically located in the lower and
upper levels of stadiums to collect data about how each player moves, using
metrics such as velocity, speed in miles per hour, and distance traveled.
From there the data are transmitted to an on-site server computer, where
Zebra's software matches an RFID tag to the correct player or official. The
football also has a sensor transmitting location data. The data are
generated in real-time as the game is being played. Each sensor transmits
its location about 25 times per player.
It takes just two seconds for data to be received by the motion sensors,
analyzed, and pushed out to remote cloud computers run by Amazon Web
Services for the NFL. From the NFL cloud computers, the data are shared with
fans, broadcasters, and NFL teams. The data captured by the NFL are
displayed to fans using the NFL Next Gen Stats website, NFL social media
channels, and the NFL app on Windows 10 and the Xbox One. The data are also
transmitted to the giant display screens in the arena to show fans during
the game.
The data have multiple uses. NFL teams use them to evaluate player and team
performance and to analyze tactics, such as whether it might be better to
press forward or to punt in a particular fourth-down situation. Data
transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to
the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a
deeper fan experience that gets fans more involved in the game.
Some of the statistics fans can now see on Next Gen Stats include Fastest
Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing
Leaders, and Receiving Leaders. Next Gen Stats also features charts for
individual players and videos that explain the differences and similarities
between players, teams, and games based on the data.
While the data may be entertaining for fans, they could prove strategic for
the teams. Data markers for each play are recorded, including type of
offense, type of defense, whether there was a huddle, all movement during
the play, and the yard line where the ball was stopped. The NFL runs
custom-created analytics to deliver visualizations of the data to each team
within 24 hours of the game, via a custom-built web portal. The system
displays charts and graphs as well as tabular data to let teams have more
insight. Each NFL team may also hire its own data analyst to wring even more
value from the data. The data are giving NFL fans, teams, coaches, and
players a deeper look into the game they love.
Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to
Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super
Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"
TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data
Operation Tracks Every Move on the Field," Information Management, December
7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra
Technologies, NFL Revamp Partnership For Third Season," SportTechie,
September 6, 2016.