Title: Part three: Winning Competitive Advantages with IT
1Part three Winning Competitive Advantages with
IT
2- 1. Case Study UPS
- 2. The key applications in business
- 3. Strategic Information systems
3Case 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
4Case 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?
5Case 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.
6Case 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
7TYPES OF INFORMATION SYSTEMS
8MAJOR 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)
9TYPICAL 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
10TYPICAL 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
11TYPICAL 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
12TYPICAL 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
13TYPICAL 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
14KNOWLEDGE WORK SYSTEMS (KWS)
- KNOWLEDGE LEVEL
- INPUTS DESIGN SPECS
- PROCESSING MODELLING
- OUTPUTS DESIGNS, GRAPHICS
- USERS TECHNICAL STAFF
- EXAMPLE ENGINEERING WORK
STATION
15OFFICE AUTOMATION SYSTEMS (OAS)
- TOWARD A PAPERLESS OFFICE
- REDESIGN OF WORK FLOW
- INTEGRATED SOFTWARE
- ERGONOMIC DESIGN
- BRIGHT, CHEERFUL WORK SPACE
- EXAMPLE PRESENTATION GRAPHICS
16MANAGEMENT INFORMATION SYSTEMS (MIS)
- MANAGEMENT LEVEL
- INPUTS HIGH VOLUME DATA
- PROCESSING SIMPLE MODELS
- OUTPUTS SUMMARY REPORTS
- USERS MIDDLE MANAGERS
- EXAMPLE ANNUAL BUDGETING
17MANAGEMENT INFORMATION SYSTEMS (MIS)
- STRUCTURED SEMI-STRUCTURED DECISIONS
- REPORT CONTROL ORIENTED
- PAST PRESENT DATA
- INTERNAL ORIENTATION
- LENGTHY DESIGN PROCESS
18TPS DATA FOR MIS APPLICATIONS
19DECISION SUPPORT SYSTEMS (DSS)
- MANAGEMENT LEVEL
- INPUTS LOW VOLUME DATA
- PROCESSING INTERACTIVE
- OUTPUTS DECISION ANALYSIS
- USERS PROFESSIONALS, STAFF
- EXAMPLE CONTRACT COST ANALYSIS
20DECISION SUPPORT SYSTEMS (DSS)
- FLEXIBLE, ADAPTABLE, QUICK
- USER CONTROLS INPUTS/OUTPUTS
- NO PROFESSIONAL PROGRAMMING
- SUPPORTS DECISION PROCESS
- SOPHISTICATED MODELING TOOLS
21EXECUTIVE SUPPORT SYSTEMS (ESS)
- STRATEGIC LEVEL
- INPUTS AGGREGATE DATA
- PROCESSING INTERACTIVE
- OUTPUTS PROJECTIONS
- USERS SENIOR MANAGERS
- EXAMPLE 5 YEAR OPERATING PLAN
22EXECUTIVE SUPPORT SYSTEMS (ESS)
- TOP LEVEL MANAGEMENT
- DESIGNED TO THE INDIVIDUAL
- TIES CEO TO ALL LEVELS
- VERY EXPENSIVE TO KEEP UP
- EXTENSIVE SUPPORT STAFF
23INTERRELATIONSHIPS AMONG SYSTEMS
DSS
MIS
KWS OAS
TPS
24SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
- SALES MARKETING SYSTEMS
- MANUFACTURING PRODUCTION SYSTEMS
- FINANCE ACCOUNTING SYSTEMS
- HUMAN RESOURCES SYSTEMS
25SALES 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
26MANUFACTURING 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
27FINANCE 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
28HUMAN 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
29SUPPLY-CHAIN MANAGEMENT
30HOW 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
33ENTERPRISE SYSTEM
Vendors
Customers
34INDUSTRIAL 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