UPS Competes Globally with Information Technology

It is important to understand what information systems are and why they are

essential for running and managing a business. It is also important to

understand the different systems that support different groups or levels of

management. In addition, digital technology and the Internet play a key role

in executing major business processes in the enterprise. Also, it is

important to understand the ethical, social, and political issues raised by

information systems.

The case studies below provide you with an opportunity to critically analyze

events that are taking place in real-life businesses. This helps to develop

your critical thinking and research skills as you research each of these

scenarios.

For this assignment, review four case studies-two from Chapter 1 and two

from Chapter 2. Then, in an essay, evaluate the studies and respond to each

of the questions below, using both critical thinking and theory as well as

supporting documentation.

In Chapter 1, read the case study "UPS Competes Globally with Information

Technology" on pages 23-24 of the textbook. Then, answer the questions

below.

How does UPS use information systems technology to achieve its strategic

goals of being more efficient and customer oriented?

What would happen if the automated package tracking system was not

available?

Discuss how globalization has "flattened" the world.

In Chapter 2, read the case study "Data Changes How NFL Teams Play the Game

and How Fans See It" on pages 52-53 of the textbook. The, address the

prompts below.

Analyze how information systems are transforming business.

What types of systems does the NFL and its teams use?

What is the role that these systems play in improving both operations and

decision-making?

In Chapter 3, read the case study "Smart Products-Coming Your Way" on pages

102-103 of the textbook. Then, address the prompts below.

Explain the importance of collaboration and information sharing for

businesses.

Explain what a "smart" product is, and use an example.

How do smart products increase rivalry among firms?

In Chapter 4, read the case study "Are Cars Becoming Big Brother on Wheels?"

on pages 121-122 of the textbook. Then, address the prompts below.

Describe how new technology trends may cause ethical dilemmas.

Discuss at least one ethical, social, and political issue raised by embedded

cyber connections in cars.

Discuss how big data analytics are being applied to all of the data

generated by motor vehicles.

In formatting your case analysis, do not use the question-and-answer format;

instead, use an essay format with subheadings. Your APA-formatted case study

must be at least four pages in length (not counting the title and reference

pages).

You are required to use a minimum of three peer-reviewed, academic sources

that are no more than 5 years old (one may be your textbook). All sources

used, including the textbook, must be referenced; all paraphrased material

must have accompanying in-text citations.



Page 23-24

Information Technology

Information technology is one of many tools managers use to cope with

change. Computer hardware is the physical equipment used for input,

processing, and output activities in an information system. It consists of

the following: computers of various sizes and shapes (including mobile

handheld devices); various input, output, and storage devices; and

telecommunications devices that link computers together.



Computer software consists of the detailed, preprogrammed instructions that

control and coordinate the computer hardware components in an information

system. Chapter 5 describes the contemporary software and hardware platforms

used by firms today in greater detail.



Data management technology consists of the software governing the

organization of data on physical storage media. More detail on data

organization and access methods can be found in Chapter 6.



Networking and telecommunications technology, consisting of both physical

devices and software, links the various pieces of hardware and transfers

data from one physical location to another. Computers and communications

equipment can be connected in networks for sharing voice, data, images,

sound, and video. A network links two or more computers to share data or

resources, such as a printer.



The world's largest and most widely used network is the Internet. The

Internet is a global "network of networks" that uses universal standards

(described in Chapter 7) to connect millions of networks in more than 230

countries around the world.



The Internet has created a new "universal" technology platform on which to

build new products, services, strategies, and business models. This same

technology platform has internal uses, providing the connectivity to link

different systems and networks within the firm. Internal corporate networks

based on Internet technology are called intranets. Private intranets

extended to authorized users outside the organization are called extranets,

and firms use such networks to coordinate their activities with other firms

for making purchases, collaborating on design, and other interorganizational

work. For most business firms today, using Internet technology is both a

business necessity and a competitive advantage.



The World Wide Web is a service provided by the Internet that uses

universally accepted standards for storing, retrieving, formatting, and

displaying information in a page format on the Internet. Web pages contain

text, graphics, animations, sound, and video and are linked to other web

pages. By clicking on highlighted words or buttons on a web page, you can

link to related pages to find additional information and links to other

locations on the web. The web can serve as the foundation for new kinds of

information systems such as UPS's web-based package tracking system

described in the Interactive Session.



All of these technologies, along with the people required to run and manage

them, represent resources that can be shared throughout the organization and

constitute the firm's information technology (IT) infrastructure. The IT

infrastructure provides the foundation, or platform, on which the firm can

build its specific information systems. Each organization must carefully

design and manage its IT infrastructure so that it has the set of technology

services it needs for the work it wants to accomplish with information

systems. Chapters 5 through 8 of this book examine each major technology

component of information technology infrastructure and show how they all

work together to create the technology platform for the organization.



The Interactive Session on Technology describes some of the typical

technologies used in computer-based information systems today. UPS invests

heavily in information systems technology to make its business more

efficient and customer oriented. It uses an array of information

technologies, including bar code scanning systems, wireless networks, large

mainframe computers, handheld computers, the Internet, and many different

pieces of software for tracking packages, calculating fees, maintaining

customer accounts, and managing logistics.



Let's identify the organization, management, and technology elements in the

UPS package tracking system we have just described. The organization element

anchors the package tracking system in UPS's sales and production functions

(the main product of UPS is a service-package delivery). It specifies the

required procedures for identifying packages with both sender and recipient

information, taking inventory, tracking the packages en route, and providing

package status reports for UPS customers and customer service

representatives.



The system must also provide information to satisfy the needs of managers

and workers. UPS drivers need to be trained in both package pickup and

delivery procedures and in how to use the package tracking system so that

they can work efficiently and effectively. UPS customers may need some

training to use UPS in-house package tracking software or the UPS website.



UPS's management is responsible for monitoring service levels and costs and

for promoting the company's strategy of combining low cost and superior

service. Management decided to use computer systems to increase the ease of

sending a package using UPS and of checking its delivery status, thereby

reducing delivery costs and increasing sales revenues.



The technology supporting this system consists of handheld computers, bar

code scanners, desktop computers, wired and wireless communications

networks, UPS's data center, storage technology for the package delivery

data, UPS in-house package tracking software, and software to access the

World Wide Web. The result is an information system solution to the business

challenge of providing a high level of service with low prices in the face

of mounting competition.



Interactive Session Technology

UPS Competes Globally with Information Technology



United Parcel Service (UPS) started out in 1907 in a closet-sized basement

office. Jim Casey and Claude Ryan-two teenagers from Seattle with two

bicycles and one phone-promised the "best service and lowest rates." UPS has

used this formula successfully for more than a century to become the world's

largest ground and air package-delivery company. It's a global enterprise

with more than 454,000 employees, over 112,000 vehicles, and the world's

ninth-largest airline.



Today, UPS delivers 5.1 billion packages and documents in more than 220

countries and territories. The firm has been able to maintain leadership in

small-package delivery services despite stiff competition from FedEx and the

U.S. Postal Service by investing heavily in advanced information technology.

UPS spends more than $1 billion each year to maintain a high level of

customer service while keeping costs low and streamlining its overall

operations.



It all starts with the scannable bar-coded label attached to a package,

which contains detailed information about the sender, the destination, and

when the package should arrive. Customers can download and print their own

labels using special software provided by UPS or by accessing the UPS

website. Before the package is even picked up, information from the "smart"

label is transmitted to one of UPS's computer centers in Mahwah, New Jersey,

or Alpharetta, Georgia, and sent to the distribution center nearest its

final destination.



Dispatchers at this center download the label data and use special routing

software called ORION to create the most efficient delivery route for each

driver that considers traffic, weather conditions, and the location of each

stop. Each UPS driver makes an average of 100 stops per day. In a network

with 55,000 routes in the United States alone, shaving even one mile off

each driver's daily route translates into big savings: $50 million per year.

These savings are critical as UPS tries to boost earnings growth as more of

its business shifts to less-profitable e-commerce deliveries. UPS drivers

who used to drop off several heavy packages a day at one retailer now make

many stops scattered across residential neighborhoods, delivering one

lightweight package per household. The shift requires more fuel and more

time, increasing the cost to deliver each package.



The first thing a UPS driver picks up each day is a handheld computer called

a Delivery Information Acquisition Device (DIAD), which can access a

wireless cell phone network. As soon as the driver logs on, his or her day's

route is downloaded onto the handheld. The DIAD also automatically captures

customers' signatures along with pickup and delivery information. Package

tracking information is then transmitted to UPS's computer network for

storage and processing. From there, the information can be accessed

worldwide to provide proof of delivery to customers or to respond to

customer queries. It usually takes less than 60 seconds from the time a

driver presses "complete" on the DIAD for the new information to be

available on the web.



Through its automated package tracking system, UPS can monitor and even

reroute packages throughout the delivery process. At various points along

the route from sender to receiver, bar code devices scan shipping

information on the package label and feed data about the progress of the

package into the central computer. Customer service representatives are able

to check the status of any package from desktop computers linked to the

central computers and respond immediately to inquiries from customers. UPS

customers can also access this information from the company's website using

their own computers or mobile phones. UPS now has mobile apps and a mobile

website for iPhone, BlackBerry, and Android smartphone users.



Anyone with a package to ship can access the UPS website to track packages,

check delivery routes, calculate shipping rates, determine time in transit,

print labels, and schedule a pickup. The data collected at the UPS website

are transmitted to the UPS central computer and then back to the customer

after processing. UPS also provides tools that enable customers, such Cisco

Systems, to embed UPS functions, such as tracking and cost calculations,

into their own websites so that they can track shipments without visiting

the UPS site.



UPS is now leveraging its decades of expertise managing its own global

delivery network to manage logistics and supply chain activities for other

companies. It created a UPS Supply Chain Solutions division that provides a

complete bundle of standardized services to subscribing companies at a

fraction of what it would cost to build their own systems and

infrastructure. These services include supply chain design and management,

freight forwarding, customs brokerage, mail services, multimodal

transportation, and financial services in addition to logistics services.

CandleScience, based in Durham, North Carolina, is an industry leader in the

candle and soap supply industry, providing raw materials such as waxes,

wicks, and fragrances to candle makers around the world. UPS worked with

CandleScience to accurately model shipping rates for the company and its

customers and to add a freight shipping option capability to its website.

UPS also helped CandleScience identify the optimal location for a new

warehouse for its West Coast customers. The new West Coast warehouse in

Sparks, Nevada lets the company reach some of its largest customers faster,

more efficiently and less expensively.



UPS provides both financial and shipping advice and services to Flags of

Valor, a small business based in Ashton, Virginia, which sells hundreds of

hand-crafted wooden flags each day to online customers. Using UPS Quantum

View Manage(r) technology, the staff can view and monitor outbound packages

and immediately respond to customer questions about order status. UPS

Capital(r), the financial service division of UPS, showed the company how to

protect its cash flow and assets by moving to a comprehensive insurance

plan.



Sources: Paul Ziobro, "UPS's $20 Billion Problem: Operations Stuck in the

20th Century," Wall Street Journal, June 15, 2018; www(dot)ups(dot)com, accessed

February 7, 2018; "Igniting Growth with CandleScience," UPS Compass, May

2017; and "Stars and Stripes Flying High," UPS Compass, December 2017.





Page 52-53

Data Changes How NFL Teams Play the Game and How Fans See It



All professional sports teams today collect detailed data on player and team

performance, fan behavior, and sales, and increasingly use these data to

drive decisions about every aspect of the business-marketing, ticketing,

player evaluation, and TV and digital media deals. This includes the

National Football League (NFL), which is increasingly turning to data to

improve how its players and teams perform and how fans experience the game.



Since 2014 the NFL has been capturing player movement data on the field by

putting nickel-sized radio frequency identification (RFID) tags beneath

players' shoulder pads to track every move they make. The information the

sensors gather is used by NFL teams to improve their training and strategy,

by commentators on live game broadcasts, and by fans attending games or

using the NFL app on the Xbox One.



The NFL's player tracking system is based on the Zebra Sports Solution

developed by Zebra Technologies, a Chicago-based firm specializing in

tracking technology that includes the bar codes on groceries and other

consumer goods and radio frequency identification (RFID) technology. The

Zebra Sports Solution system records players' speed, direction, location on

the field, how far they ran on a play, and how long they were sprinting,

jogging, or walking. The system can also determine what formation a team was

in and how players' speed or acceleration affects their on-field

performance. Want to know how hard Eli Manning is throwing passes or the

force with which a ball arrives in the hands of receiver Odell Beckham? The

system knows how to do all that.



NFL players have RFID chips in their left and right shoulder pads that

transmit data to 20 radio receivers strategically located in the lower and

upper levels of stadiums to collect data about how each player moves, using

metrics such as velocity, speed in miles per hour, and distance traveled.

From there the data are transmitted to an on-site server computer, where

Zebra's software matches an RFID tag to the correct player or official. The

football also has a sensor transmitting location data. The data are

generated in real-time as the game is being played. Each sensor transmits

its location about 25 times per player.



It takes just two seconds for data to be received by the motion sensors,

analyzed, and pushed out to remote cloud computers run by Amazon Web

Services for the NFL. From the NFL cloud computers, the data are shared with

fans, broadcasters, and NFL teams. The data captured by the NFL are

displayed to fans using the NFL Next Gen Stats website, NFL social media

channels, and the NFL app on Windows 10 and the Xbox One. The data are also

transmitted to the giant display screens in the arena to show fans during

the game.



The data have multiple uses. NFL teams use them to evaluate player and team

performance and to analyze tactics, such as whether it might be better to

press forward or to punt in a particular fourth-down situation. Data

transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to

the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a

deeper fan experience that gets fans more involved in the game.



Some of the statistics fans can now see on Next Gen Stats include Fastest

Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing

Leaders, and Receiving Leaders. Next Gen Stats also features charts for

individual players and videos that explain the differences and similarities

between players, teams, and games based on the data.



While the data may be entertaining for fans, they could prove strategic for

the teams. Data markers for each play are recorded, including type of

offense, type of defense, whether there was a huddle, all movement during

the play, and the yard line where the ball was stopped. The NFL runs

custom-created analytics to deliver visualizations of the data to each team

within 24 hours of the game, via a custom-built web portal. The system

displays charts and graphs as well as tabular data to let teams have more

insight. Each NFL team may also hire its own data analyst to wring even more

value from the data. The data are giving NFL fans, teams, coaches, and

players a deeper look into the game they love.



Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to

Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super

Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"

TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data

Operation Tracks Every Move on the Field," Information Management, December

7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra

Technologies, NFL Revamp Partnership For Third Season," SportTechie,

September 6, 2016.



Page 102-103

Data Changes How NFL Teams Play the Game and How Fans See It



All professional sports teams today collect detailed data on player and team

performance, fan behavior, and sales, and increasingly use these data to

drive decisions about every aspect of the business-marketing, ticketing,

player evaluation, and TV and digital media deals. This includes the

National Football League (NFL), which is increasingly turning to data to

improve how its players and teams perform and how fans experience the game.



Since 2014 the NFL has been capturing player movement data on the field by

putting nickel-sized radio frequency identification (RFID) tags beneath

players' shoulder pads to track every move they make. The information the

sensors gather is used by NFL teams to improve their training and strategy,

by commentators on live game broadcasts, and by fans attending games or

using the NFL app on the Xbox One.



The NFL's player tracking system is based on the Zebra Sports Solution

developed by Zebra Technologies, a Chicago-based firm specializing in

tracking technology that includes the bar codes on groceries and other

consumer goods and radio frequency identification (RFID) technology. The

Zebra Sports Solution system records players' speed, direction, location on

the field, how far they ran on a play, and how long they were sprinting,

jogging, or walking. The system can also determine what formation a team was

in and how players' speed or acceleration affects their on-field

performance. Want to know how hard Eli Manning is throwing passes or the

force with which a ball arrives in the hands of receiver Odell Beckham? The

system knows how to do all that.



NFL players have RFID chips in their left and right shoulder pads that

transmit data to 20 radio receivers strategically located in the lower and

upper levels of stadiums to collect data about how each player moves, using

metrics such as velocity, speed in miles per hour, and distance traveled.

From there the data are transmitted to an on-site server computer, where

Zebra's software matches an RFID tag to the correct player or official. The

football also has a sensor transmitting location data. The data are

generated in real-time as the game is being played. Each sensor transmits

its location about 25 times per player.



It takes just two seconds for data to be received by the motion sensors,

analyzed, and pushed out to remote cloud computers run by Amazon Web

Services for the NFL. From the NFL cloud computers, the data are shared with

fans, broadcasters, and NFL teams. The data captured by the NFL are

displayed to fans using the NFL Next Gen Stats website, NFL social media

channels, and the NFL app on Windows 10 and the Xbox One. The data are also

transmitted to the giant display screens in the arena to show fans during

the game.



The data have multiple uses. NFL teams use them to evaluate player and team

performance and to analyze tactics, such as whether it might be better to

press forward or to punt in a particular fourth-down situation. Data

transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to

the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a

deeper fan experience that gets fans more involved in the game.



Some of the statistics fans can now see on Next Gen Stats include Fastest

Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing

Leaders, and Receiving Leaders. Next Gen Stats also features charts for

individual players and videos that explain the differences and similarities

between players, teams, and games based on the data.



While the data may be entertaining for fans, they could prove strategic for

the teams. Data markers for each play are recorded, including type of

offense, type of defense, whether there was a huddle, all movement during

the play, and the yard line where the ball was stopped. The NFL runs

custom-created analytics to deliver visualizations of the data to each team

within 24 hours of the game, via a custom-built web portal. The system

displays charts and graphs as well as tabular data to let teams have more

insight. Each NFL team may also hire its own data analyst to wring even more

value from the data. The data are giving NFL fans, teams, coaches, and

players a deeper look into the game they love.



Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to

Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super

Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"

TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data

Operation Tracks Every Move on the Field," Information Management, December

7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra

Technologies, NFL Revamp Partnership For Third Season," SportTechie,

September 6, 2016.



Page 121-122

Data Changes How NFL Teams Play the Game and How Fans See It



All professional sports teams today collect detailed data on player and team

performance, fan behavior, and sales, and increasingly use these data to

drive decisions about every aspect of the business-marketing, ticketing,

player evaluation, and TV and digital media deals. This includes the

National Football League (NFL), which is increasingly turning to data to

improve how its players and teams perform and how fans experience the game.



Since 2014 the NFL has been capturing player movement data on the field by

putting nickel-sized radio frequency identification (RFID) tags beneath

players' shoulder pads to track every move they make. The information the

sensors gather is used by NFL teams to improve their training and strategy,

by commentators on live game broadcasts, and by fans attending games or

using the NFL app on the Xbox One.



The NFL's player tracking system is based on the Zebra Sports Solution

developed by Zebra Technologies, a Chicago-based firm specializing in

tracking technology that includes the bar codes on groceries and other

consumer goods and radio frequency identification (RFID) technology. The

Zebra Sports Solution system records players' speed, direction, location on

the field, how far they ran on a play, and how long they were sprinting,

jogging, or walking. The system can also determine what formation a team was

in and how players' speed or acceleration affects their on-field

performance. Want to know how hard Eli Manning is throwing passes or the

force with which a ball arrives in the hands of receiver Odell Beckham? The

system knows how to do all that.



NFL players have RFID chips in their left and right shoulder pads that

transmit data to 20 radio receivers strategically located in the lower and

upper levels of stadiums to collect data about how each player moves, using

metrics such as velocity, speed in miles per hour, and distance traveled.

From there the data are transmitted to an on-site server computer, where

Zebra's software matches an RFID tag to the correct player or official. The

football also has a sensor transmitting location data. The data are

generated in real-time as the game is being played. Each sensor transmits

its location about 25 times per player.



It takes just two seconds for data to be received by the motion sensors,

analyzed, and pushed out to remote cloud computers run by Amazon Web

Services for the NFL. From the NFL cloud computers, the data are shared with

fans, broadcasters, and NFL teams. The data captured by the NFL are

displayed to fans using the NFL Next Gen Stats website, NFL social media

channels, and the NFL app on Windows 10 and the Xbox One. The data are also

transmitted to the giant display screens in the arena to show fans during

the game.



The data have multiple uses. NFL teams use them to evaluate player and team

performance and to analyze tactics, such as whether it might be better to

press forward or to punt in a particular fourth-down situation. Data

transmitted to broadcasters, to stadium screens, to Next Gen Stats, and to

the Next Gen Stats feature of Microsoft's Xbox One NFL app help create a

deeper fan experience that gets fans more involved in the game.



Some of the statistics fans can now see on Next Gen Stats include Fastest

Ball Carriers, Longest Tackles, Longest Plays, Passing Leaders, Rushing

Leaders, and Receiving Leaders. Next Gen Stats also features charts for

individual players and videos that explain the differences and similarities

between players, teams, and games based on the data.



While the data may be entertaining for fans, they could prove strategic for

the teams. Data markers for each play are recorded, including type of

offense, type of defense, whether there was a huddle, all movement during

the play, and the yard line where the ball was stopped. The NFL runs

custom-created analytics to deliver visualizations of the data to each team

within 24 hours of the game, via a custom-built web portal. The system

displays charts and graphs as well as tabular data to let teams have more

insight. Each NFL team may also hire its own data analyst to wring even more

value from the data. The data are giving NFL fans, teams, coaches, and

players a deeper look into the game they love.



Sources: Jason Hiner, "How the NFL and Amazon Unleashed 'Next Gen Stats' to

Grok Football Games," TechRepublic, February 2, 2018; Teena Maddox, "Super

Bowl 52: How the NFL and US Bank Stadium Are Ready to Make Digital History,"

TechRepublic, February 1, 2018; Brian McDonough, "How the NFL's Data

Operation Tracks Every Move on the Field," Information Management, December

7, 2016; www(dot)zebra(dot)com, accessed March 15, 2017; and Mark J. Burns, "Zebra

Technologies, NFL Revamp Partnership For Third Season," SportTechie,

September 6, 2016.