Case Study Ups Competes Globally with Information Technology.docx

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Case Study Ups Competes Globally with
Information Technology
I/ The Importance of Information System to Enterprises
At the most basic level, an information system (IS) is a set of components that work
together to manage data processing and storage (Henry et al., 2004). Its role is to
support key aspects of running an organization, such as communication, record-
keeping, decision-making, data analysis, and so on. Companies use this information to
improve their business, make strategic decisions and gain competitive advantages
(SalemAl-Mamary et al., 2014).
Information systems help to improve enterprise performance.
Modern technology can greatly improve your company's performance and
productivity. Information systems are no exception. Institutions around the world rely
on them to research and develop new ways to generate revenue, attract customers and
streamline time-consuming tasks (Tripathi, 2011).
Information systems help enterprises save time and cost
With information systems, enterprises can save time and money and make wiser
decisions at the same time. Internal departments of a company, such as marketing and
sales, can communicate better and share information more easily.
Information systems help to limit errors in enterprise management and operation
Because this technique is automated and uses complex algorithms, it reduces human
error. Moreover, employees can focus on the core aspects of an enterprise instead of
spending hours collecting data, filling out papers and manually analyzing (Galliers et
al., 2011).
Information systems help enterprises collect information quickly
Thanks to modern information systems, team members can access massive data from
one platform.
There are many different types of information systems, and each type has different
functions. For example, business intelligence (BI) systems can turn data into valuable
insights (Chen et al., 2010).

Such technologies enable faster and more accurate reporting, better business decisions
and more efficient resource allocation. Another big benefit is data visualization, which
enables analysts to interpret vast amounts of information, predict future events, and
find patterns in historical data.
Organizations can also use enterprise resource planning (ERP) software to collect,
manage, and analyse data in areas ranging from manufacturing to finance and
accounting. This type of information system includes many applications that provide a
360-degree business view.
II/ UPS Competes GloballywithInformation Technology
The Role of Information System in the Realization of UPS Strategic Objectives
Through the study of this typical case, it is easy to see that UPS is one of the global
enterprises with advanced information systems. It is this advantage that enables UPS
to effectively use costs, reduce the shortage of operating costs and rationally
implement business operations.
Personal information, such as the customer's full name, address, telephone number
and weight of the goods, is considered input information in the ups parcel system.
Kenneth Laudon and Jane Laudon (2011) emphasized this point, namely "Kenneth
Laudon and Jane Laudon." In addition, the study clarified the problem and showed
that the barcode of the package was transmitted via UPS to the computer center in
Mahwah, New Jersey or Alpharetta, Georgia before being sent to the distribution
center. The nearest place of delivery. All information is processed through a special
information system to create an efficient delivery route, with each driver taking into
account traffic, weather conditions and the location of each station. In order to achieve
the above success, UPS has invested a lot of money in research and development
activities and advanced information technology. The company's official website also
states: “ups has deployed a number of tools and processes, known as package flow
technology, to optimize delivery routes. The Pft includes a suite of hardware and
software designed in part to help drivers plan the most efficient route-before the
package is even loaded into the delivery truck” (UPS Pressroom, 2009).
The leading Delivery Information Acquisition Device (DIAD) is considered to be a
major revolution in the delivery field of UPS. It is still considered by far one of the

most comprehensive tracking devices in the delivery and delivery industry. This
device helps delivery service providers provide advanced data acquisition and
transmission solutions, and enables customers to track their packages in real time.
Overall, this has greatly improved the business performance of express delivery
business. After-sales Order Management System (OMS) was launched by UPS in
June 2009 to effectively manage global orders and inventory. This solution enables
organizations around the world to easily evaluate inventory, so as to propose the best
routing strategy to meet customer needs, order online and track the whole delivery
process from warehouse to user (Laudon & Laudon, 2011).
In addition, on UPS, the automated email and fax system is a tool to help UPS
customers fully and accurately understand shipping milestones and shipping changes
related to flight schedules. Be responsible for transporting the goods they ordered.
It is not difficult to see that one of the key business strategies of UPS is high-level
service delivery, but it should be carried out with THAAOS's operating cost and
efficient and reasonable operation mode. It is the application of advanced technology
in the above information system that plays an important role in maintaining UPS's
leading position in the small package delivery industry. The success of UPS in its
global expansion and development in more than 200 countries and regions cannot be
overlooked by the importance of technology. In addition, modern investment
information systems have helped UPS improve its competitive position with
competitors. According to Kenneth and Jane Laudon (2011), "UPS estimates that with
this technology, their delivery trucks save 28 million miles a year and burn less than 3
million gallons of fuel." Advanced technology helps UPS provide customers with
tools to ship packages, check delivery routes, calculate freight rates, determine
shipping time, print labels and arrange schedules. Receiving and tracking packages.
All of this can be done without visiting the UPS Web site when the data collected on
the UPS Web site is transferred to the UPS central computer and then processed and
returned to the customer.
Through the case study, it can be seen that 03 strategic business objectives of UPS
have been effectively solved by information systems, including:

First, cut operating costs. Research shows that UPS has reduced truck travel by 28
million miles (reduced mileage) due to the adoption of modern information systems.
In addition, UPS trucks burn less than 3 million gallons of fuel per year (reducing
energy/fuel consumption). From there, it can help UPS save a lot of operating costs.
Second, improve productivity. According to information posted on the company's
official website in 2009, using Diad also eliminated 84 million sheets of paper and
saved 7,308 trees per year "(UPS Pressroom, 2009). Using ups information systems
makes it easier for companies to operate their activities. For example, with the help of
special software, the dispatcher of UPS distribution center creates the most effective
distribution route for each driver, taking into account the traffic, weather conditions
and the location of each station.
According to the author, the third goal achieved by UPS is to improve customers'
awareness of online ordering services. With the help of advanced information
technology, customers can use ups services without going to ups stores or websites.
Customers can track their parcels, check delivery routes, collect freight, determine
shipping times, print labels and arrange online receipts.
What if the UPS information system is not available
If UPS's information system is not available, operating costs may be higher,
productivity may be lower, and customer traffic searching UPS sites for information
about their packages may be high, burning millions of gallons of fuel, traveling
millions of miles and wasting millions of sheets of paper.
How globalization has “flattened” the world
Now, "flat-world" has become a familiar term, referring to the late development of
globalization since the beginning of the 21st century, when ten economic and
technological factors in the world worked together to change the social model, make
the contact between individuals and people easier and closer, and make the world
more flat.
As a result of globalization, the world has created more and more common standards
and requirements. This process selects a behavior suitable for trends, survival and
development rules for every country, every enterprise and every person. No one can
own a market alone, let alone "beautiful bamboo is still beautiful". Of course, in this

common market, the advantages always belong to intelligent and flexible people.
Those who have a global perspective, master and apply science and technology
(especially information technology), have good governance capacity and know how to
use their resources (countries, enterprises or individuals). The depth will be those who
make more money (Christopherson et al., 2008).
A flat world means borders, territories, socio-political systems, preservation of
cultural identity, religion, race, history and geography, all of which must be
maintained, protected and dealt with according to new rules, new forms and new
methods... It not only protects itself, but also contributes to making the world flatter
and flatter.
When it comes to common market, it means equality between buyers and sellers,
between buyers and sellers, and between buyers and sellers. Due to globalization, no
country, region, enterprise or individual can survive outside this market. The rules of
the game are very fair. How brave, civilized, advanced social organizations and
adaptable can benefit from this market to that market.
Human civilization is creating unprecedented advantages to help latecomers take
advantage of narrowing the development gap, provided that the whole country and the
whole country have the will or not. Give full play to the potential and initiative of the
country or everyone in the country.
III/ Smart Products – Coming Your Way
The Importance of Cooperative Information Sharing to Enterprises
Information is an important resource in daily life. Moreover, information also plays an
important role in every state institution, organization and enterprise, and is the basis of
managers' decision-making (Kumar et al., 2016).
In their activities, managers always need information to plan, and change business
conditions according to changing information, so as to adjust and adapt to the actual
situation (Abareshi, 2011).
At the same time, through the information received, the manager helps to speed up the
control of all processes in the organization and help the organization survive and
develop in its operational areas (Abareshi, 2011).

Thanks to this news, business managers and organizations are effectively supported to
understand, taste and understand the market, determine the direction of new products,
and improve organizational and business activities. The business of the organization.
Especially in today's era of booming technology, it is based on information selected
by computers.
In addition to the position of self-management based on management science,
organizational science and information technology, it brings more and more practical
benefits to organizations in all activities (Abareshi, 2011).
Intelligent products and examples of intelligent products
Industrial Revolution 4.0 is a high combination of physical and digital hyperlink
systems, focusing on Internet, Internet of Things (IoT) and artificial intelligence. In
this revolution, the theme of intelligent products has been widely concerned, which is
no less than the theme of AI-artificial intelligence. It has entered a new technology era,
and people are "smart". However, it is called intelligent product, and so far, it has not
used a unified and accurate concept.
According to Gandhi and Gervet (2016); Porter and Heppelmann (2014), smart
products are products in a set of information-intensive services provided by
enterprises. One example of a smart product is the John Deere tractor, equipped with
on-site radar, GPS transceivers and hundreds of device tracking sensors.
The role of intelligent products inenhancing the competitiveness of enterprises
Bargaining power of buyers.
The birth and development of intelligent products is the premise for enterprises to
create opportunities for product differentiation, so as to improve their competitiveness
without relying on price competition. In addition, smart products play a role in
building a close relationship between enterprises and customers by aggregating rich
consumption trends, so the cost buyers who turn to new suppliers will increase. This
helps to improve customer loyalty to the enterprise (Savi et al., 2016).
Finally, enterprises have the opportunity to reduce their dependence on distribution
partners and even eliminate distribution in some cases, thus increasing profits. From
the above analysis, it can be seen that the bargaining power of buyers may decline
slightly or decline (Porter, 2016).

Rivalry among competitors.
Smart products are also expected to create competition by creating differences through
value-added services. In addition, smart products can help enterprises design products
for each customer group, further improve differences and formulate price policies.
Smart, connected products also provide an opportunity to extend value propositions
beyond products, including valuable data and enhanced services. Finally, as smart and
connected products become part of a wider product system, the competition among
competitors may also intensify, which we will discuss further (Savi et al., 2016).
Threat of new entrants.
New participants in the intelligent, connected world face considerable new obstacles,
starting with the high fixed costs of more complex product design, embedded
technology and multi-tier new information technology infrastructure.
Barriers to entry will increase as firms in the industry quickly grasp the important
strengths of their predecessors by collecting and accumulating product data and using
them to improve their products. Products and services and redefining after-sales
service. Smart, interconnected products can also increase buyer loyalty and switching
costs, further increasing barriers to entry.
However, barriers to entry will be lowered when smart, connected products span or
destroy the advantages and assets of old businesses in the industry. Moreover,
incumbents may be reluctant to fully grasp the possibilities of smart, connected
products, preferring to protect hardware-based strengths and profitable legacy
components and services. This opens the door to new competitors.
Threat of substitutes.
It is one of the advantages of intelligent products to improve operational efficiency by
adjusting capabilities, so as to create higher value for customers than traditional
products. This also helps to reduce the threat of substitution and improve the growth
and profitability of the industry (Savi et al., 2016).
Smart products can enhance the ability to activate new business models that can create
alternatives to product ownership, thus reducing the overall demand for individual
products.
Bargaining power of suppliers.

Intelligent products are threatening the traditional supplier relationship and contribute
to adjusting the bargaining power of suppliers. When the intelligent and connected
components of a product provide more value than physical components, physical
components can be commercialized or even replaced by software over time. The
software also reduces the need for physical editing, thus reducing the number of
physical component types. Traditional suppliers are usually less important to the total
cost of products, and their bargaining power is also reduced (Savi et al., 2016).
New vendors of technology platforms for smart, connected products can also gain
greater leverage through relationships with end users and access to product usage
data. . When suppliers capture product usage data from end users, they can also
provide new services for them.
Smart, Connected Products and Competitive Advantage
Economic principles suggest that to create a competitive advantage in the market,
companies must be able to make a difference, thus setting higher prices and operating
at lower costs than competitors or both. This makes profits and growth exceed the
industry average.
The basis of competitive advantage is performance. Performance requires enterprises
to adopt optimal methods in the value chain, including updated product technology,
the latest production equipment and modern sales force support methods, information
technology solutions and supply chain management methods.
Performance is a weight in the process of evaluating organizational competitiveness.
If a company is inefficient and constantly adopts new best practices, it lags behind its
competitors in both cost and quality. However, performance is not really regarded as a
sustainable advantage for enterprises, because competitors will implement the same
best practices and catch up (Savi et al., 2016).
In order to overcome the dependence on performance, enterprises need to have their
own personalized strategy. Smart, connected products are defining a new performance
standard that greatly enhances the standard of best practices. Every manufacturing
company must decide how to incorporate intelligence and connectivity into its
products.
Reference

Chen, D. Q., Mocker, M., Preston, D. S., & Teubner, A. (2010). Information Systems
Strategy: Reconceptualization, Measurement, and Implications. MIS
Quarterly, 34(2), 233–259. https://doi.org/10.2307/20721426
Salem Al-Mamary , Yaser Hasan & Shamsuddin, Alina & Aziati, A.. (2014). The
Role of Different Types of Information Systems In Business Organizations : A
Review. tInternational Journal of Research. 1. 1279-1286.
Henry, C. Lucas, Jr. (2004), Information Technology for Management, Tata Mcgraw
Hill Publishing Limited, New Delhi.
Tripathi, K.P. (2011), Role of Management Information System (MIS) in Human
Resource, International Journal of Computer Science and Technology, Vol. 2,
Issue 1, March, pp-58- 62.
Galliers, Robert D. and Leidner, Dorothy E. (2011), Strategic Information
Management Challenges and strategies in managing information systems,
Butterworth-Heinemann.
Christopherson, Susan & Garretsen, Harry & Martin, Ron. (2008). The World is Not
Flat: Putting Globalization in its Place. Cambridge Journal of Regions
Economy and Society. 1. 10.1093/cjres/rsn023.
Kumar, Ravinder & Singh, Rajesh & Shankar, Ravi. (2016). Study on collaboration
and information sharing practices for SCM in Indian SME. International
Journal of Business Information Systems. 22. 455. 10.1504/IJBIS.2016.077838.
Abareshi, A. (2011) ‘The antecedents of IT-business alignment in manufacturing
firms’, International Journal of Business Information Systems, Vol. 8, No. 3,
pp.322–337
Savic, Nebojsa & Pitic, Goran & Trbovich, Ana. (2016). Smart, Connected Products
as a New Competitive Advantage: Challenges for Serbia. Serbian Association
of Economists Journal of Business Economics and Management / Ekonomika
preduzeća. 64. 143-155. 10.5937/ekopre1602143S.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are
transforming competition. Harvard Business

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