TABLE OF CONTENTS

CHAPTER PAGE

INTRODUCTION.............................................................................................................................

QUESTION A....................................................................................................................................

QUESTION B....................................................................................................................................

QUESTION C....................................................................................................................................

QUESTION D....................................................................................................................................

QUESTION E....................................................................................................................................

QUESTION F....................................................................................................................................

CONCLUSION..................................................................................................................................

REFERENCES……………………………………………………………………………………

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Introduction

Management information system (MIS) become a pivotal to an organization in supporting as

a tool to achieve its vision and mission. Information systems gain their importance by processing the
data from company inputs to generate information that is useful for managing the operations. MIS
not only include software systems, but the entire set of business processes and resources that are
used to pull together information from functional or tactical systems. The available data from the
system is used by the organization in various way to help the business in managing, executing,
delivering and maintaining all the activities involved in the business. The entire system is designed
to assist the organization take the right decision and actions to meet its strategic and tactical goals.
MIS combines information from multiple systems. These help management staffers better
understand their own departments’ contributions. Manager who’s aiming to improve has to establish
a broader perspective with the help of a great MIS.

The questions or actions should directly relate to tactical or strategic goals. This mean that
the MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS
focuses on the major issues of the business. The manager has to establish a broader perspective with
the help of a great MIS. Therefore, an MIS can track the complete organization within the
organization and enable an easier method for analyzing independent processes. These processes
consist of organized work activities information and knowledge to produce valuable products or
services. By integrating an information system, a company is following the latest business trend. It’s
a great way to speed up the progress of the company. The company no longer spend a lot of time and
money on unnecessary activities rather put the focus on the main goal ahead.

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A. Firm Profile

a. Describe the nature of activities and services provided by the firm

B. Business Start-up

a. A brief relevant historical background on the company and how they began operations and major
key milestones of development and achievements.

Major key milestones of its development and achievements.

In the 1907, the United Parcel Service (UPS) started out in a close-sized office located in the
basement. The founders of the United Parcel Service were two teenagers from Seattle. They had one
phone and two bicycles and they promised to run this service under one statement only; "best service
and lower rates". For more than hundred years, this formula has been used by the UPS and it is running
successfully. This is the largest package delivery company in the world. The world's ninth largest
airline is owned by the UPS. It is a global enterprise and has 96,000 employees and 408,000 vehicles.
Everyday it delivers approximately 15 million documents and packages in America and covers
hundreds of territories and countries. This essay explains how Value Chain and Value web models help
the United Parcel Service (UPS) identify opportunities for strategic information systems application.

How UPS identified its Opportunities for Strategic Information Applications? Huge businesses
like United Parcel System (UPS) identify their opportunities using some web models. Research shows
that UPS explored the opportunities for strategic information system applications using Value Chain
and Value web models. Before digging into the details of primary functions of UPS, we should get
familiar with two basic terms such as Value Chain and Value web model. "Value Chain Analysis is one
of the fundamental elements of Chain Analysis, which is itself a critical element of the contextual
frame work upon which all business models are pinned" (www.va1ue-chain.com). If we breakdown
the primary functions of the UPS, we'll find out that it has separate departments for operations, input

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logistics, sales, service, output logistics and marketing. Other models can be used to within this
software to further differentiate between.

The second basic term is the Value web model. "The Value web model is made up of four
major components- each in themselves a network which can be Value web architecture on other level
of recursion. They are: the user network, the producer network, the investor network and the system
integrator" (Taylor 2001). Here the user network is basically the customer, the producer network
includes the supply chain, the investor network includes social investors and management is called the
system integrator. These four components have to maintain a relative balance with each other to
protect web from distortion.

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C. Business Problem

a. Discuss a specific business problem, opportunity or challenge which required an IS solution.

Describe the antecedents to the problem including the social, managerial, organizational,
technological, legal or economic issues which increased the complexity of addressing the
problem or opportunity.

The relationship between Value Chain and Value Web can be better understood by this
statement. "Value chain isn't breaking as much as it's transforming into a value web"¦.Value chains still
exist, but because of the network, each chain intersects with other chains, creating a web" (Anderson
2011). For businesses like UPS, value web is a much useful model as compared to value chains. Value
web is interconnected, multimodal, unpredictable, and byzantine set of relationships. The reason
behind the creation of "value chains" was to generate an end product; on the other hand value webs are
designed to put a customer at the middle. Therefore who ever is closer to the centre is definitely better
positioned.

The breakdown of secondary functions includes organizational structure, technology,

procurement and human resources. Once the breakdown of the domains is derived, which accurately
reflects the processes. These processes deliver the service or the product to customers. A traditional
value chain has a property called as linearity. It assumes that there is a direct relationship between
operations and input logistics. In reality, each domain is linked with several other domains. While
building value chains, the non-linear relationships should always be considered. Value Chain is used
for analyzing the connection between the source and delivery.

The United Parcel Service (UPS) has been maintaining leadership in the small-packaging
delivery services. It has a very tough competition with other companies such as Airborne Express and
FedEx. Each package delivered by UPS has a scan able bar-coded label. This label contains detailed
information of the destination, sender and the date of the arrival of the package. UPS provides special

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software to the customers that allow them to download and print their own labels. The smart label
provides specific info, which is transmitted in to the computer centres of UPS and then it is sent to the
distribution center. This distribution centre should be near from the final destination. The label data is
downloaded at this centre using special software, by the dispatchers. This is done to create an efficient
delivery route for the driver. This route is defined while considering factors such as weather
conditions, traffic and location of each stop. Each driver of the UPS picks up a computer, which is the
Delivery Information Acquisition Device (DIAD).

This can access wireless network cell phone can rely on. UPS works on an automated
packaging system. Along the route, at various points, bar code devices quickly scan the information
present on the label. The data is based on the progress of delivery of package is fed in to the central
computer. In this way the representatives of the UPS easily check the status of any package. Their
computers are directly connected to UPS's central computers. In this way the representatives answer
the customers' inquiries.

Delivery Information Acquisition Device (DIAD)

DIAD is a device used by the delivery drivers working in United Parcel Service (UPS).
Through this device and stay updated with package delivery information. The drivers record package
delivery information using DIAD. They then transmit the package information to the network of UPS
to update the progress information of each delivery package. The information flow is therefore smooth
and on time. The information and communication are shared via this device in between various
networks and drivers of UPS. In this way the drivers stay in touch. Also they constantly receive
updates about the work schedules and also regarding conditions of traffic.

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 The DIAD records a picture (digital) of the signatures of the receiver. Drivers scan bar code of
each package; they can even scan the recipient's digital signature and write down the receiver's last
name. They then send this info to UPS's network. This information is used by the UPS for tracking of
the package.

Information System of UPS

"UPS has become a leader in global supply chain management. At UPS, global distribution and
logistics involves managing not only the movement of goods, but also the information and funds that
move with those goods" (www.ups.com). At UPS, sharing of communication and information is very
critical and necessary. This information includes the package size and also the delivery destination. To
manage funds, goods and information, it is very important to integrate information systems. The
maximization of revenues of UPS can be certified in this way. United Parcel Service is extremely
successful in its development. It has differentiated itself from other companies and has made an
efficient use of information technology for the improvement of the quality of its operating services.
The United Parcel Service is also providing services in Logistics, Ecommerce, decision green,
International trade, credit card services, financial services and also UPS mobile. UPS provides the
above-mentioned services and also running the shipment delivery business.
The Logistic services include the supplier, vendor management and supplier management. "United
Parcel Service has used DIAD, UPSnet, and COMPASS; these are some of the technologies which
have provided the company with unique features" (Badar 2011, pp. 3).
How UPS Identified Opportunities for Information Systems using Value Chain?
A Primary Value Chain is based In-bound logistics, outbound logistics, Marketing and Sales, Services,
Operations, Human Resource Infrastructure, Technological Development and Procurement. Figure 1
clearly shows this. Value Chain has been providing various opportunities to the UPS for progress in
Information Systems.

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 The United Parcel Service (UPS) provides various consulting services. These services are
strictly for procurement and investment. As we know that an efficient supplier is required as a
guarantee for an effective and efficient supply chain management. The services of procurement of the
United Parcel Service (UPS) gained an advantage in handling the inventory shortages. These services
have successfully replaced inventory with information. In the year 1995, United Parcel Service (UPS)
started logistics functioning. In this way it provided solutions in the management of supply chains all
over the world. These logistical services include call centers and also Web retailing, also warehousing
and management of the supply chain, global trade financing and inexpensive ground delivery or quick
air delivery. The United Parcel Service (UPS) has been acting as a logistic provider (like a third party).
It uses modes for transportation of containers and packages of all kinds. The United Parcel Service
(UPS) has specific strategies of distribution and these are integrated through the containerized
maritime shipping with several shipping modes. Therefore Value Chain has been playing an important
role in the progress of this huge company.

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D. Technology-based solution
a. Discuss the IS solution introduced to address the business challenge, problem or opportunity.
What process led to the choice of this solution and what other options were considered?

The Distribution System of the UPS is based on three steps, namely consolidation, distribution and
fragmentation. Consolidation is first step for parcel collection. Later these parcels are assigned for
delivery through specific routes. The path that leads to the destination is made short by keeping traffic
conditions in mind. For this purpose the drivers use the DIAD.

The operation of distribution is functionalized. This happens from one hub to another hub. The
purpose behind this is to calculate distances. Decisions are taken according to the vehicle used such as
a truck or an airplane. Distribution operates between 3 main hubs such as the Main Hub that located at
Louisville. The second main hub is at UPS World port; the third one is at Willow Springs. Third
portion of the Distribution System is the fragmentation. Fragmentation is about delivery of packages to
its specific destinations. It is the reverse of consolidation "The Package Flow System of the UPS uses
labels which are called as smart labels" (Tam 1992, pp. 350). Information required for the creation of
smart labels is provided by the customers on the Web site. This data is forwarded to delivery centers.
This data helps the company while making plans for parcels' dispatching. This system has a special
feature. This feature is about built-in geographic information system software. The mapping of routes
is done through this software

Technological Development

By the year 1993, the United Parcel Service (UPS) used to deliver approximately 12 million
documents and packages each day. The UPS completely depends on technology in order to maintain its
efficiency. It is therefore able to keep prices low. Also it provides outstanding customer services as it
has to handle a huge volume of work. One of the tools used by the UPS is the UPSnet. It is a data
communications network and suitable for covering the whole globe. It provides a processing pipeline
of data for both package processing and delivery on international level. This technology tool includes a

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satellite of the UPS and links distribution sites of the UPS in 46 countries. UPS has three key elements
for achieving success. These elements are globalism, service and connectivity.
Competitors of United Parcel System (UPS).

The UPS has three strong competitors namely FedEx Corporation, CH Robinson Worldwide,
Inc (CHRW) and Expeditors International of Washington, Inc (EXPD). The FedEx operates business
segments and enjoy direct competition with UPS. These business segments include the FedEx Express,
FedEx Ground and also FedEx Services. CHRW is another competitor of UPS. It contracts with the
companies, which provide transportation, all over the world in order to arrange logistics services. The
third competitor of the UPS is the EXPD. This also provides good logistics services. "UPS is the only
competitor in the industry that handles all levels of service (express, ground, domestic, international,
commercial, residential) through its integrated pickup and delivery network" (Chakravorty, Khan &
Hilborn 2011).

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E. Addressing the challenges

a. Assess the IS solution - has the problem been solved, was the company able to achieve the
objectives set out? Include the views of stakeholders concerned including managers, employees,
clients, partners or customers concerning the new solution or service provided.

The vision of future of the UPS has moved far beyond the delivery of packages only. It is true
that the core business of UPS was package delivery but, in this century,, this company has become a
global facilitator of commerce. Several years ago, UPS planned to become a mover of goods and
funds. It promised to provide distinct vision of the future. Ultimately, UPS wants that it means to the
same thing around the world. This company realizes that until it develops the recognition, it has to take
a defined approach. We know that good branding has always reinforced a very strong vision, and it
should be central to an outstandingly good brand. However, it is not enough to advertise the unique
vision of the brand. Other factors that count a lot are the public relations, communication with the
customers and also internal communications. These factors define the vision of any company.
Unavailability of UPS's Information Systems

"A major portion of the value of new IT projects accrues from future projects, which use the
technology." (Dos Santos 1991, pp. 1). The establishment of UPS from a small scale to such a huge
company can be defined as "A successful experiment may prompt a process improvement. Or process
improvement initiatives may begin leveraging a transformation long before it is complete" (Ross &
Beath 2001). If we imagine UPS without its Information Systems then the survival of such a huge
company would have been impossible. Delivery of packages from one territory to another requires
storage of information also sharing and updating of information. The packages, credit cards and other
stuff is delivered in millions, covering several regions. Without information systems UPS would not
have been able to survive. In the 21st century, UPS is doing a great job in the field of updating of its
information systems. The customers are provided access to softwares so that they can view the
progress of delivery of packages. This has greatly increased the reputation of UPS as the customers

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receive satisfaction even before the delivery of a package. Everything runs systematically hence
allowing customers all over the world trust UPS's services blindly.

The official website of the United Parcel Service (UPS) is regularly updated. It is ever ready to
provide business solutions that go way beyond shipping. Whether a home business is to be established
or a worldwide business, the solution provided by UPS caters all. The flow of funds, information and
goods can be synchronized for a new or an old business. This website is extremely useful for career-
oriented people. UPS welcomes customers and professionals from all over the world. It is currently
providing air transportation, ground transportation, global air and ocean freight services and truckload
also. The additional capabilities of the United Parcel Service (UPS) include distribution, logistics,
international trade, customs brokerage, management, e-commerce, mail and other variety of financial
services.

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F. Lesson for Manager

a. Discuss three key lessons which managers in organization can learn from this case.

Every firm or a company needs to improve its services regularly in order to achieve success
and a good reputation. This essay provides information of the United Parcel Service (UPS) but as it is a
huge company, it definitely lacks excellence in some categories. Customers of UPS enjoy excellent
services but it is not an easy job to maintain such a good feedback.

There are several things that are to be improved. UPS has such an infrastructure, which is
improving the economic environment. No doubt it is the largest express delivery company in the whole
world. Reports show that more than seventy five percent of its revenue is generated through the
domestic businesses only. The United Parcel Service (UPS) reap the best results as it has played a big
role for improving the trade. In simple words we can say that this company works in cycle. It
generated flexible revenue and dominates the entire market as well. Conservative investors are willing
to choose UPS for their work. UPS has used the best tool available almost everywhere; Internet. Its
shipping business enjoys great benefits because UPS has a margin of growing more and more in the
field of e-commerce. Approximately sixty percent of purchase of online goods in America is handled
by the UPS.

It has become able to maximize the value of the shareholder. In the year 2011, UPS
repurchased shares of worth two billion dollars. Reports show that in the end of 2001, UPS was able to
reduce the outstanding shares and also increased its yearly EPS. There was an increase of ten cents in
the yearly EPS of UPS. The shareholders of UPS are more concerned about the rising oil prices. Oil
prices cannot be ignored as the entire movement (delivery of packages) is done through airplane,
trucks, ships and other vehicles. The rising prices of oil are passed to the customers. UPS has
successfully passed these costs to its customers and had maintained its volume of work.
In a quarter of a year, UPS delivers more than a billion packages all over the world. It has been titles as
the "World's Most Admired" company. This company has excellent reputation and product quality.

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Since years it has just focused on maintaining value of the long term investment. Also it is
continuously bringing innovation. These traits distinguish this company from its competitors.
Studies show that UPS has three competitors. FedEx and DHL are very strong competitors. As told
above, fifty percent American package deliveries are done via UPS. Since years UPS has been able to
do an up to the mark job. Various studies and reports discuss about the recommendations for bringing
more improvement in the services of the UPS. The transmission of information and communication
with the drivers of UPS has to be improved. It is true that they are the true representatives of UPS and
the customers do not realize that millions of people are working behind the delivery of every single
document or parcel. Hence the human error can be ignored when it comes to communication with the
customer service representatives.

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Conclusion

UPS has adopted every possible technology in order to make its services fast and efficient,
without making any error. The best part is that the customer is all the time updated with the movement
of his package. Both the sender and the receiver can view the information. This happens because at
every stop the progress is updated and then the parcel moves on. When it reaches the destination, the
sender is also informed. UPS has made the best use of the bar code scanner. Such a small and simple
technology is the cause of success of such a huge company that is dominating the parcel delivery
services all over the world.

UPS is a true example for all the package delivery companies. UPS is now struggling to save
its time from each and every stop in order to do more work in least possible time. The records of the
United Parcel Service (UPS) can hardly be broken by any other package delivery company in the
world. UPS has some fuel prices that are very unstable. In the year 2003, it introduced a unique
software system. Basically this software had a coding in programming languages such as C++ and C
language. Using this software, unique labels were generated for each package that has to be delivered.
It also provides help while packages are loaded in trucks or vans. The routes are mapped out easily and
the planners make the best use of it. The mileage of the delivery fleet of the company was greatly
reduced. Reports show that more than thirteen billion gallons of fuel was saved. UPS started to place
an individual hub and operations were broken down into smaller operations easily. UPS has
uncountable features and it makes a distinct place in the world of fast package delivery.

United Parcel Service (UPS) is one of the world's leading carriers. They ship and deliver
packages worldwide. A They are common to a majority of citizens and are a household name. They
compete amongst many other carriers both public and private. These include the United States Postal
Service and DHL. They have been in business for a number of years and have steadily improved their
business model. They have made a few recent changes in the development of technology that are and
will drive operations.

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 United Parcel Service (UPS) is focused on improved technology as a means of increasing
efficiency and returns. They have made a number of changes in their technology in recent years. There
are a couple of upcoming releases designed to save time and money. They will use keyless entry
systems to open bulkhead doors. This will save 3 seconds per stop and $70 million annually.
They will introduce MyChoice technology. This will allow customers a view into delivery windows,
putting them in location right with the driver. This should increase consumer sales.

United Parcel Service (UPS) recently refined the overall design of their domestic operations.
They have altered the design of their planes located at their hub in Louisville. This includes wider,
larger airplanes which can carry larger loads. This has reduced satellite hub use, reducing costs.
They have made two $1 billion expansions to this Louisville hub, Worldport. Worldport is the
world's largest fully automated handling facility. This facility can sort 416,000 packages an hour up
from 215,000 in the year 2000. These expansions were completed ahead of schedule and within
budget, adding to their ideal that planning and investments are long-term holistic and built to provide
efficiency and superior returns.

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