Case Analysis_ UPS

Matt: 1. Describe business reasons/requirements for UPS to invest so heavily in networking technology? Assume a strategic focus of operational excellence , but consider interactions UPS has with both individual customers and other businesses. [Hint: Don't focus on technology in this question - UPS invest heavily into networking technologies because it is required that packages are kept track of and delivered to their proper destination - Sorting labels are put directly onto packages - UPS has made heavy investments into enterprise resource planning, including: - Software for truck drivers to drive faster routes by avoiding left turns, small decisions make a difference in delivery time. UPS also uses the information system ORION for the fastest routes drivers can take - Bluetooth tracking allows UPS to keep track of packages that leave their distribution centers. - Additional package scanning, labeling, and tracking systems - UPS requires that they are organized, which includes keeping track of packages within their warehouse until they are delivered to the customer - Implementation of the SP400 allows employees to bring physical, small devices to packages for an easy, simplified, and more accurate labeling process - UPS uses worldwide package tracking data so packages can be located no matter where they are - Users can track their own packages from the UPS website - UPS ensures the security of customers’ packages as well as the data transmitted through their secure network - UPS uses its own wired network to transmit package data. The chances of fingerprinting and information stealing are greatly reduced - Most of the data transmitted is not necessarily important because it is merely package tracking data, UPS still takes action to make their data secure - UPS has a three part network, to access the data encrypted in any of these networks users have to input a username and password into the system - Although UPS uses wifi to scan packages and transmit the data from the scans to a wireless access point, UPS uses secure ethernet LAN, as well as private power lines, to transmit the data from this access point across UPS’s digital network Ryan:

2. Given those business reasons/requirements, describe UPS' underlying information needs. Who needs what information where and when? Make sure to address communication and coordination challenges [Hint: think business "reach"]. Networking technologies: - These networking supply information needs for the workers of the company and the company itself - Lebel sorting and processing allows the company to keep track their shipments more efficiently - Allows UPS to keep track of movement of packages, in and out of their distribution centers - Provide most efficient driving routes to drivers - These features provided by the networking technologies are super beneficial to the company. Being an international company, these systems allow the company to keep track of data and important information throughout all of their branches. Organization: - With high volume of shipments, UPS needs to organize and keep track of when shipments both leave the warehouse and are dropped off - To help with this, drivers are equipped with a “SP400” which helped reduce processing time and mislabeled packages - World wide tracking data allows for packages to be tracked from anywhere at any time - These organizational implementations help everyone involved in the UPS process. Where before, the technologies mainly helped the company, the organizational measures that UPS has implemented help the customer as well. This makes the customer experience better because they can track their packages, package mistakes are not as common, and delivery process is easier for the drivers - Causing less headaches for the company as well as improving the customer experience makes these organizational requirements important to the company Security: - UPS uses different types of secure networks to keep package and shipping information secured - This allows the customers to feel more confident with their private information - Having its own secure network, allows for UPS to not have to worry too much about security leaks or identity fraud

- If the package lands at an airport, the employees unload the packages. Employees scan the labels and organize the packages. They will fall into one of three categories. 6) The Conveyor Belts - There are different conveyor belts for different types of packages. They sort the packages into different categories such as envelopes, 6-sided boxes, irregular boxes, etc., and then put them back on the planes. 7) Final Destination - Once the plane lands the employees scan the labels in order to print a preload assist label. The label helps the package get to the right place. Naveen: Question 4: What issues should UPS consider when investing in these networking elements? Consider the full life cycle of the technology assets (i.e., just like Total Cost of Ownership). [table hint: your table should at least have a column for the life cycle stage, another for the issue label, and another for the issue description/explanation] Life Cycle Stage Issues Description/Explanation Procurement and analysis ● What is the cost of development? ● How long will technology last before it becomes obsolete? ● Return on investment of new system ● UPS needs to consider how much the new information is worth. New tracking technology is expensive analysis is needed to decide if the added network results in increased speed, accuracy, efficiency worth the cost ● Partnership with HP to help build infrastructure is expensive. Analysis on cost of in house development and testing is needed ● Length of time where technology can be used, what is the lifetime of the new network before new network gets built ● How much revenue will network create with how long it lasts: example: (200 million) increased revenue per year * network life (8 years) = 1.6 billion > (1 billion) cost of network

development Systems Design ● What will system look like ● Sync and ease of use ● The new system is faster and better than the old, designed for tracking speed and efficiency ● But is the data organized and secure, and how is old data and software synced with the new Implementation ● Time frame of implementation ● Transition for drivers ● The new network comes with teaching all the employes how to use it, Implementation is most likely a simple process but drivers could have a learning curve ● UPS can’t have a long implementation period or run into any bottlenecks or technical issues ● The SP400 is a intuitive product and helps speed efficiency but education to staff is key to smooth implementation Testing ● Launching gps and fastest route system helps speed but does it need testing ● This is one of the most important steps, glitches and errors are something that needs to be eliminated ● The new network has to increase accuracy of all parts of the delivery process and testing is the best way of checking accuracy Deployment ● How does UPS replace old department tech and network? ● How do they teach new customers about new features? ● Quick launch of new software is key, as well as replacement of old systems, so there's no confusion ● Education of staff and intuitive software are important aspects to a successful deployment Maintenance ● What systems are in place to fix tracking issues ● What are manual measures that can be use in case of a system failure ● The ability to provide ongoing support and updates is essential to any network ● If there are errors, there needs to be a easy manual override to help fix system errors ● If the system goes down their should be a protocol and a backup way of delivery and processes ● The network needs the ability to be consistently improved so the tech does not become obsolete Other issues with the networking elements could be related to changing processes could be frustrating for old employees used to longstanding processes that they are attach to.