The UPS Store grew out of United Parcel s acquisition of Mail Boxes Etc. in 2001. Mail Boxes Etc. provided copying services, a place for individuals to pick up their mail, and mailing services with firms such as UPS. The purchase by UPS was intended to give the package delivery firm a retail connection. Shortly, thereafter, UPS allied itself with Office Depot and Staples to provide shipping services in their stores. To enhance its services, UPS has been consistently adding on-line tracking and other services.

In developing these connections to the customer, the goal has been to create a seamless integration of technology that makes it easier for consumers to choose UPS. Thus, there was not a separate technology strategy, but instead, technology was a key part of what enabled the strategy.

The way UPS achieved this is through the development of a consistent set of business activities. For example, information technology is not treated as a separate functional area. Instead, it is integrated into all of the working teams in the firm. Thus, rather than asking technology support individuals if there is technology to support the goal after the goal was already generated, there are technology professionals involved in all aspects of the firm. Goals are generated with technology in mind. This role for technology is enhanced by the fact that the chief information officer is on the business strategy steering committee. All strategies that come out of the firm have input from a technology perspective. UPS leads in delivery-tracking technology, package-flow technology, and data analysis.

UPS has one of the largest DB2 databases in the world (an IBM product that is a relational database management system) to help track all of its packages from the different customer contact points. In addition, UPS uses Oracle databases to provide package information to drivers and customers as well as to store and analyze sales patterns, financial information, and marketing data. Because the trend in this industry is toward smaller, more frequent shipments by and for individuals, the detail of the UPS system should afford it a competitive advantage over its competitors

References

Alghalith, Nabil. 2005. Competing with IT: The UPS Case. Journalof AmericanAcademyofBusiness,Cambridge.7 (5): 7 15.

Costides, Nick. 2004. There are no longer independent technology investments just investments. FranchisingWorld, 36 (1): 69 71.

Podmolik, M. E. 2004. UPS promotes commerce, supply chain capabilities. BtoB, 89 (12): 18 20.

QUESTIONS

1. Discuss technology intelligence and technology strategy based on your understanding?

2. What other areas do you think UPS would align to ensure that technology was fully integrated into the firm's strategy?

3. UPS has two major competitors-the United States Postal Service and Federal Express. What does UPS lead in technology mean for them?