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Part three: Winning Competitive Advantages with IT

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Title: Case: UPS Author: Last modified by: FtpDown Created Date: 2/26/2002 12:12:45 PM Document presentation format: Company – PowerPoint PPT presentation

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Title: Part three: Winning Competitive Advantages with IT


1
Part three Winning Competitive Advantages with
IT
2
  • 1. Case Study UPS
  • 2. The key applications in business
  • 3. Strategic Information systems

3
Case UPS
  • In late 2000, best known for reliable,efficient
    package delivery.
  • Delivery 13.6 million packages a day set by 1.8
    million shippers to 7 million consignees.
  • In 1999, its revenue is 27 billions
  • IT/IS in recent decade
  • 1990 .UPS Net
  • 1993 DIAD(Delivery Information Acquisition
    Device)
  • mid of 1990 API tracking system
  • By late 2000 6 OnLine Tools
  • Late of 2000 e-commerce, e-logistics

4
Case Study UPS
  • What are the input, processing, and output of
    UPSs package tracking system?
  • What technologies are used? How are these
    technologies related to UPSs business strategy?
    What would happen if these technologies were not
    available?
  • What change in UPS management and organization
    when they use the package tracking systems?

5
Case Study UPS
  • Input
  • Package information, customer signature, pickup,
    delivery and timecard data, data location(while
    on route), and billing and customer clearance
    document.
  • Processing
  • Mainly,the data is transmitted to a central
    computer and stored for retrieval.
  • Output
  • Mostly the same data as the input----pickup and
    delivery time, location while on route, who
    signed for the package.

6
Case Study UPS
  • Technologies used include handheld computers with
    devices to automatically capture shipping
    information, barcode scanners, telecommunications
    for transmitting data, cellular phone network,
    and computer.
  • The strategy is still the original onebest
    service and lowest rate. Technology allows UPS
    and its customers to always know where a package
    is.
  • If the technology were not available, then UPS
    would, as it has through most of its history,
    attempt to provide that information to its
    customers, but at a high price. Note the pressure
    to reduce process time and cycle time

7
TYPES OF INFORMATION SYSTEMS
8
MAJOR TYPES OF SYSTEMS
  • TRANSACTION PROCESSING SYSTEMS (TPS)
  • MANAGEMENT INFORMATION SYSTEMS (MIS)
  • DECISION SUPPORT SYSTEMS (DSS)
  • KNOWLEDGE WORK SYSTEMS (KWS)
  • OFFICE AUTOMATION SYSTEMS (OAS)
  • EXECUTIVE SUPPORT SYSTEMS (ESS)

9
TYPICAL TPS APPLICATIONSSales Marketing Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Sales management, market research, promotion,
    pricing, new products
  • MAJOR APPLICATION SYSTEMS
  • Sales order info system, market research system,
    pricing system

10
TYPICAL TPS APPLICATIONSManufacturing
Production Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Scheduling, purchasing, shipping, receiving,
    engineering, operations
  • MAJOR APPLICATION SYSTEMS
  • Materials resource planning systems, purchase
    order control systems, engineering systems,
    quality control systems

11
TYPICAL TPS APPLICATIONSFinance Accounting
Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Budgeting, general ledger, billing, cost
    accounting
  • MAJOR APPLICATION SYSTEMS
  • General ledger, accounts receivable, accounts
    payable, budgeting, funds management systems

12
TYPICAL TPS APPLICATIONSHuman Resources Systems
  • MAJOR FUNCTIONS OF SYSTEMS
  • Personnel records, benefits, compensation, labor
    relations, training
  • MAJOR APPLICATION SYSTEMS
  • Payroll, employee records, benefit systems,
    career path systems, personnel training systems

13
TYPICAL TPS APPLICATIONSOther Types (e.g.,
University)
  • MAJOR FUNCTIONS OF SYSTEMS
  • Admissions, grade records, course records, alumni
  • MAJOR APPLICATION SYSTEMS
  • Registration system, student transcript system,
    curriculum class control system, alumni
    benefactor system

14
KNOWLEDGE WORK SYSTEMS (KWS)
  • KNOWLEDGE LEVEL
  • INPUTS DESIGN SPECS
  • PROCESSING MODELLING
  • OUTPUTS DESIGNS, GRAPHICS
  • USERS TECHNICAL STAFF
  • EXAMPLE ENGINEERING WORK
    STATION

15
OFFICE AUTOMATION SYSTEMS (OAS)
  • TOWARD A PAPERLESS OFFICE
  • REDESIGN OF WORK FLOW
  • INTEGRATED SOFTWARE
  • ERGONOMIC DESIGN
  • BRIGHT, CHEERFUL WORK SPACE
  • EXAMPLE PRESENTATION GRAPHICS

16
MANAGEMENT INFORMATION SYSTEMS (MIS)
  • MANAGEMENT LEVEL
  • INPUTS HIGH VOLUME DATA
  • PROCESSING SIMPLE MODELS
  • OUTPUTS SUMMARY REPORTS
  • USERS MIDDLE MANAGERS
  • EXAMPLE ANNUAL BUDGETING

17
MANAGEMENT INFORMATION SYSTEMS (MIS)
  • STRUCTURED SEMI-STRUCTURED DECISIONS
  • REPORT CONTROL ORIENTED
  • PAST PRESENT DATA
  • INTERNAL ORIENTATION
  • LENGTHY DESIGN PROCESS

18
TPS DATA FOR MIS APPLICATIONS
19
DECISION SUPPORT SYSTEMS (DSS)
  • MANAGEMENT LEVEL
  • INPUTS LOW VOLUME DATA
  • PROCESSING INTERACTIVE
  • OUTPUTS DECISION ANALYSIS
  • USERS PROFESSIONALS, STAFF
  • EXAMPLE CONTRACT COST ANALYSIS

20
DECISION SUPPORT SYSTEMS (DSS)
  • FLEXIBLE, ADAPTABLE, QUICK
  • USER CONTROLS INPUTS/OUTPUTS
  • NO PROFESSIONAL PROGRAMMING
  • SUPPORTS DECISION PROCESS
  • SOPHISTICATED MODELING TOOLS

21
EXECUTIVE SUPPORT SYSTEMS (ESS)
  • STRATEGIC LEVEL
  • INPUTS AGGREGATE DATA
  • PROCESSING INTERACTIVE
  • OUTPUTS PROJECTIONS
  • USERS SENIOR MANAGERS
  • EXAMPLE 5 YEAR OPERATING PLAN

22
EXECUTIVE SUPPORT SYSTEMS (ESS)
  • TOP LEVEL MANAGEMENT
  • DESIGNED TO THE INDIVIDUAL
  • TIES CEO TO ALL LEVELS
  • VERY EXPENSIVE TO KEEP UP
  • EXTENSIVE SUPPORT STAFF

23
INTERRELATIONSHIPS AMONG SYSTEMS
DSS
MIS
KWS OAS
TPS
24
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • SALES MARKETING SYSTEMS
  • MANUFACTURING PRODUCTION SYSTEMS
  • FINANCE ACCOUNTING SYSTEMS
  • HUMAN RESOURCES SYSTEMS

25
SALES MARKETING INFORMATION SYSTEM
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
ORDER PROCESSING
ENTER, PROCESS, TRACK ORDERS
OPERATIONAL
MARKET ANALYSIS
IDENTIFY CUSTOMERS MARKETS
KNOWLEDGE
PRICING ANALYSIS
DETERMINE PRICES
MANAGEMENT
SALES TRENDS
PREPARE 5-YEAR FORECASTS
STRATEGIC
26
MANUFACTURING INFORMATION SYSTEM
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
MACHINE CONTROL
CONTROL ACTIONS OF EQUIPMENT
OPERATIONAL
COMPUTER-AIDED-DESIGN
DESIGN NEW PRODUCTS
KNOWLEDGE
PRODUCTION PLANNING
DECIDE NUMBER, SCHEDULE OF PRODUCTS
MANAGEMENT
FACILITIES LOCATION
DECIDE WHERE TO LOCATE FACILITIES
STRATEGIC
27
FINANCE ACCOUNTING INFORMATION SYSTEM
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
ACCOUNTS RECEIVABLE
TRACK MONEY OWED TO FIRM
OPERATIONAL
PORTFOLIO ANALYSIS
DESIGN FIRM'S INVESTMENTS
KNOWLEDGE
BUDGETING
PREPARE SHORT TERM BUDGETS
MANAGEMENT
PROFIT PLANNING
PLAN LONG-TERM PROFITS
STRATEGIC
28
HUMAN RESOURCES INFORMATION SYSTEM
SYSTEM
DESCRIPTION
ORGANIZATIONAL LEVEL
TRAINING DEVELOPMENT
TRACK TRAINING, SKILLS, APPRAISALS
OPERATIONAL
CAREER PATHING
DESIGN EMPLOYEE CAREER PATHS
KNOWLEDGE
COMPENSATION ANALYSIS
MONITOR WAGES, SALARIES, BENEFITS
MANAGEMENT
HUMAN RESOURCES PLANNING
PLAN LONG-TERM LABOR FORCE NEEDS
STRATEGIC
29
SUPPLY-CHAIN MANAGEMENT
30
HOW INFORMATION SYSTEMS FACILITATES SUPPLY CHAIN
MANAGEMENT
31
  • Decide when, what to produce,store, move
  • Rapidly communicate orders
  • Track order status
  • Check Inventory Availability, monitor levels
  • Track shipments
  • Plan production based on actual demand
  • Rapidly communicate product design changes
  • Provide product specifications
  • Share information about defect rate, returns...

32
TRADITIONAL VIEW OF SYSTEMS
  • WITHIN THE BUSINESS There are functions, each
    having its uses of information systems
  • OUTSIDE THE ORGANIZATIONS BOUNDARIES There are
    customers and vendors
  • FUNCTIONS TEND TO WORK IN ISOLATION

33
ENTERPRISE SYSTEM
Vendors
Customers
34
INDUSTRIAL NETWORKS
  • LINK FIRMS INTO INDUSTRY-WIDE SYSTEM
  • HORIZONTAL Link firms in same industry,
    including competitors
  • VERTICAL Link firm with suppliers in same
    industry

35
  • Thanks for Your Attention
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