Conducting a system Study

Management-technology-organization
Information system
CASE STUDY
On
UPS inc.
 United Parcel Service
competes globally with IT
UPS the worlds largest air and ground package distribution company started out in 1907 in a closet size basement in the office. Jim Casey and
Claude Ryan, two teenager from Seattle promised “best service and lowest rates”.UPS has used this formula successfully for more than 90 years.
Today more than 90 million parcels are delivered throughout the country and more than 200 other countries and territories. The company has been
able to maintain leadership under stiff competition from other companies such as federal express and Airborne express by investing heavily on the
Information technology .Over the past decades UPS has spent more than 1 billion to boost customer service while keeping the costs low and
streamlining its overall operations.
Using a handheld computer called the Delivery information Acquisition Device,UPS driver automatically capture customers signatures along with
the pickup,deliveryand time card information. The drivers then place the DIAD’s into their truck’s vehicle adapter, a information transmitting device
that is connected to cellular phone networks.(drivers may also use this to transmit and receive information using an internal radio in the
DIAD).Package tracking information is then transmitted to UPS’s computer network for storage processing in the UPS's main computer. From there
the information can be accessed world wide to provide proof of delivery to the customers or to respond to customers queries.
Though it is an automated package tracking system,UPS can monitor packages throughout the delivery process. At various points along the route
from the send to receiver's bar code scanner device scans shipping information on that package label; the information is then fed to the central
computer. customer service representatives can check the status of any package from the desktop computers linked to the central computer and
able to respond immediately to enquiries from customers.UPS customers can access the information form the companies web site using their own
computer or wireless devices such as pagers and cell phones.
Anyone with a package to be shipped can access the UPS website to track packages, check delivery routes, calculate shipping rates, determine the
time in transit and schedule a pickup. Businesses any where can use the website to arrange the UPS shipments and bill the shipments to UPS
accounts or to a credit card. Data collected at the UPS website are transmitted to UPS central computer and back to the customer after
processing.UPS also provides tool s that enables customer such as CISCO to embed their own functions such as tracking and cost calculating into
heir own website so that they can track UPS without visiting the website.
UPS has started a new system called UPS document exchange to deliver business documents electronically using the internet. The service provides a
high level of security for these important documents as well as document tracking.
 Stystem study-Digital firm
• Management
Coordination of cost, Training to the Delivery personnel,
Training of CSR,monitoring delivery
schedules,coordinate transportation routes reduce
delivery time,generating invoices,billing documents and
reciepts.
• Technology
DIAD’s,central computer,UPS website,bar code
scanners,networks(telphone),application module
components,software to track packages automatically,
 Contn
• Organization
Sales and distribution
• Checking packages
• Taking inventories
• Training of personell

Middle level managers

Operational staff(CSR,delivery personnel)
Customers(micro)
Businesses(external,partners)
 contn
• Information system
Track shipments
Calculate shipping costs
Documents
Seamless integration with core processes
Global reach

• Business Solution
Lowered costs
Increased service
 Architectural perspective
• Transactional system design
INPUTS
customer details master file
shipping details
mode of shipment
DIAD information
Bar code information
UPS web site information
Third party embedded information(pick up,delivery)
 contn
• Processing
manual entry inputs are first electronically converted in electronic order/quotaion
document
workflow is trigerred once the billing information is cleared a contract for a delivery
schedule is prepared and futher according to rules and procedures governing the
process invoice generation is triggered.

Assignment to a particular business unit,distribution channel ,vehicle and driver also

are triggered.

Inputs from public interfaces such as third party websites and UPS web sites are
integrated with the core processing of the SD functional department and
automatically integrated with the finance functional processes resulting in a work
flow that triggers a invoice document. Automatical assignment to distribution
channel,pick up driver and vehicle initiated.
 Continued..
• Output
E-documents to the distribution channel to be patched on
the package.(invoice ,lading,shipto etc)
Outputs to CSR regarding tracking and routing
Updates to finance regarding delivery payments
Updates to invertory processing.
Reconnecting to External websites regarding status
updation
Generating MIS reports(transportation,delivery time,Etc).
Generating DSS reports(who,where,time,date).
 Functional perspective of IS
• Sales and marketing
– Order processing TPS
– Market analysis KWS
– Pricing descions MIS
– Evaluating new products and forecasts ESS

• Production and Manufacture

– Automated machine Control TPS
– CAD designs KWS
– Production Planning MIS
– Facility location ESS
 contn
• Finance
– Payroll TPS
– Portfolio analysis kws
– Budgetting MIS
– Lorg term investment and returns ESS

• Human resource
– Training and development TPS
– Job design,requirement identificaiton kws
– Resource allocation,career apth development MIS
– Lorg term firm talent aqusition and retention ESS.
 Importance of information System to
Management
• Henri Fayol
• Plan
• Organize
• Control
• Decide
• Coordinate
• Mintzberg
– Personal agneda and organizational goals
– Interpersonal networks across the organization
 Continued
• Mintzberg

Interpersonal
figurehead
leader
liason
Informational
nervecenter
diemminator
communicator
Enterprenuer
initiator
disturbance handler
Resource alocator
Negotiator.
 Descision systems
Transactional kWS control Management Strategic
control descisions control control
Structured TPS(order
processing)

Semi
structured
MIS DSS
Unstructured KWS ESS