复旦大学：《管理信息系统 Management Information Systems》（英文）课程PPT_Session 2 Winning Competitive Advantages with IT

Session 2 Winning Competitive Advantages with IT 1. Case Study: UPS 2. The key applications in business 3. Strategic Information systems 4. Summary of how it can be used to implement Competitive Advantages

Huang Lihua, Fudan U Session 2: Winning Competitive Advantages with IT 1. Case Study: UPS 2. The key applications in business 3. Strategic Information systems 4. Summary of how IT can be used to implement Competitive Advantages

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Huang Lihua, Fudan U

UPS Case: Trips UPS is a 95-year-old company whose history spans the bicycle to the Internet. Today the largest express carrier and largest package carrier in the world, UPS continues to develop the frontiers of logistics, supply chain management and e-Commerce. combining the flows of goods, information and funds a day for 7.9 million customers(1. 8 million pickups, 6/ Today, UPS delivers 13.6 million packages and documents million deliveries)and averages more than 6 million on- line tracking requests per day on its Web site. UPS invests more than USSl billion every year on information technology For a decade, UPS had been capitalizing on opportunities created by it to increase the efficiency and flexibility of its core business and to develop new business opportunities

Huang Lihua, Fudan U UPS Case: Trips • UPS is a 95-year-old company whose history spans the bicycle to the Internet. Today the largest express carrier and largest package carrier in the world, UPS continues to develop the frontiers of logistics, supply chain management and e-Commerce . . . combining the flows of goods, information and funds. • Today, UPS delivers 13.6 million packages and documents a day for 7.9 million customers (1.8 million pickups; 6.1 million deliveries) and averages more than 6 million on￾line tracking requests per day on its Web site. UPS invests more than US$1 billion every year on information technology. • For a decade, UPS had been capitalizing on opportunities created by IT to increase the efficiency and flexibility of its core business and to develop new business opportunities

UPS Case: Trips(cont) Jim Kelly, ceo and chairman of the board UPS The business model is changing, and our focus is changing O ur customers are demanding broader, deeper service, whether that's running telephone centers for them or doing their billing for them or going out and repairing their computer parts for them. we, re doing all kinds of things we didnt dream of doing ten years ago

Huang Lihua, Fudan U UPS Case: Trips (con’t) • Jim Kelly, CEO and chairman of the board, UPS: – The business model is changing, and our focus is changing.Our customers are demanding broader, deeper service, whether that’s running telephone centers for them or doing their billing for them or going out and repairing their computer parts for them. we;’re doing all kinds of things we didn’t dream of doing ten years ago

Becoming a Technology-driven firm Developed package tracing systems from 1986 By 1990:UPS Net processing facility which become IT infrastructure to suppor 9 a global network with 3 centralized DBs and a centralized dat deployment ofenterprise-wide application 1993: DIAD Delivery Information Acquisition Device) To capture a customer signature with every delivery and upload data in real time to package information DB Benefit To save each driver 30 minutes per day and collect information about each package and customer(60000 drivers To better understand the profitability of individual customers and packages To make routing and pricing decision To provide the customers with information on their individual shipping habi

Huang Lihua, Fudan U Becoming a Technology-driven Firm • Developed package tracing systems from1986. • By 1990: .UPS Net • A global network with 3 centralized DBs and a centralized data processing facility which become IT infrastructure to support deployment of enterprise-wide application • 1993: DIAD (Delivery Information Acquisition Device) • To capture a customer signature with every delivery and upload data in real time to package information DB • Benefit: – To save each driver 30 minutes per day and collect information about each package and customer (60000 drivers) – To better understand the profitability of individual customers and packages – To make routing and pricing decision – To provide the customers with information on their individual shipping habits

Becoming a Technology-driven firm mid of 1 990 become the one of the first companies to create its own web Direct to customer API individual companies could integrate into their own customer service systems Web-based tracking system reduce call center traffic Established alliance with key vendors integrate tracking API into the vendor such as Oracle Peoplesoft, IBM,SAP, Harbinger by late 2000: 6 OnLine Tools Allow the customers to link their own customers Others functions(Exhibit 3)

Huang Lihua, Fudan U Becoming a Technology-driven Firm • mid of 1990: become the one of the first companies to create its own web. – Direct to customer • API :individual companies could integrate into their own customer service systems • Web-based tracking system: – reduce call center traffic – Established alliance with key vendors: • integrate tracking API into the vendor such as Oracle, Peoplesoft, IBM,SAP, Harbinger. – By late 2000: 6 OnLine Tools • Allow the customers to link their own customers • Others functions (Exhibit 3)

Becoming a Technology-driven firm A wide range of Web-supported product and service such as EDE, Return Service(exhibit 4) Late of 2000: e-Logistics+ e-Logistics To provide a complete menu of behind the scene service that would manage the entire back-end logistics process from the time an order was placed on a customer 's web to the time the order was delivered. Service included warehousing, inventory management, order fulfillment(pick, pack and ship), shipping and delivery, management reporting, returns management, customers care, and telephone support In the future. UPS expected to be able leverage its data and systems to further improve service

Huang Lihua, Fudan U Becoming a Technology-driven Firm – A wide range of Web-supported product and service such as EDE, Return Service(exhibit 4) • Late of 2000: e-Logistics+…… – e-Logistics: • To provide a complete menu of “behind the scene”service that would manage the entire back-end logistics process from the time an order was placed on a customer’s web to the time the order was delivered. Service included warehousing, inventory management, order fulfillment (pick, pack and ship), shipping and delivery, management reporting, returns management, customers care, and telephone support. • In the future, UPS expected to be able leverage its data and systems to further improve service

Case Study: UPS List the key changes in UPSS business strategy and business models since 1986. What were the key stimuli or causes for these changes What technologies are used in the package tracking systems? How are these technologies related to UPS 's business strategy? What would happen if these technologies were not available?

Huang Lihua, Fudan U Case Study: UPS • List the key changes in UPS’s business strategy and business models since 1986. What were the key stimuli or causes for these changes? • What technologies are used in the package tracking systems? How are these technologies related to UPS’s business strategy? What would happen if these technologies were not available?

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 one: best 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

Huang Lihua, Fudan U 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 one:”best 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

Learn from the case The Information Systems Strategy Triangle Business strategy Organizational Information Strategy Strategy

Huang Lihua, Fudan U Learn from the case: The Information Systems Strategy Triangle Business Strategy Information Strategy Organizational Strategy