THE CO-OPERATIVE UNIVERSITY OF KENYA

NAME: GRACE KIRIGI

REG. NO: MBAC01/8508/2020

COURSE: MASTER OF BUSINESS ADMINISTRATION

UNIT TITTLE: MANAGEMENT INFORMATION SYSTEM

UNIT CODE: MBC 3104

LECTURE: PROF: KARUME

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Read the Case scenario in page 53 to 54 regarding United Parcel Service (UPS) and answer the case
study questions on page 54

CASE STUDY QUESTIONS

1. What are inputs, processing, and outputs of UPS’s package tracking system?

Inputs of the tracking system include package details, signature of the customer, package pick up,
package delivery, billing details and the current location of the package. All this information is accessed
through the scannable barcode that is printed on each of the packages. Because of the scannable
barcode, it only takes up to 60 seconds from the time a driver picks up a handheld device to when the
customer can see the package. These handheld devices called DIADs allow UPS to reroute packages, if
need be, at anytime and anywhere along the route of the driver. All of these factors aid in UPS’s fast
deliveries and help reduce costs.

2. What technologies are used by UPS? How are these related to UPS’s business strategy?

Some of UPS technologies include the Delivery Information Acquisition Device, software for mapping out
fastest and most efficient delivery routes, the label download and print software, package tracking
system, and various UPS mobile applications across various mobile operating systems. UPS strives to
achieve many things, amongst some they work toward building their global business, they offer products
to expand their customer’s access to global markets, and they offer industry-leading technology that
simplifies and improves customers’ business process.

3. What strategic business objectives do UPS’s information systems address?

One common strategic business objective that companies often have is to use time effectively and
efficiently. An information system that addresses and solves this problem is the scan able barcode. As
previously explained, the barcode allows the customer l to access real time whereabouts of their
expected package. Paired with the DIAD, the scannable barcode system allows the driver to retrieve
fastest routes to destinations and for the packages to be rerouted if needed. Another business objective
addressed in addition is lowering the human error when it comes to sorting and sending out packages
from warehouses. The information system UPS uses, allows the ordering, packaging and delivering of
parcels as timely and efficient as possible. Everything is automated, and cost calculations come with the
OMS.

4. What would happen if UPS’s information systems were not available?

If UPS’s information systems weren’t available, they wouldn't have the competitive advantage they
have now. With other leaders in small parcel delivery such as FedEX and DHL, their operations would be
lacking in comparison. Loyal customers would switch to something faster, more effective, and cheaper.
Physical UPS offices would be very busy and the image the public has of the company would rapidly fall.

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Read the Case scenario in page 66 to 68 and answer the case study questions on page 69

CASE STUDY QUESTIONS

1. What kinds of applications are described in this case? What business functions do they support?

In this case, they started their own company that providing personal service, which is to run errands for
their customers with motorcycles. There are few applications being used by the company to run their
business.

Kinds of applications are described

 Enterprise Resource Planning (ERP) system

ERP is integrated enterprise-wide standard information systems that automate all aspect of an
organization’s business process. When their business growing bigger, they wanted to get an Enterprise
Resource Planning (ERP) system to help in managing the business, however, they found the quotations
are too high. As a result, they started their own information technology company, Innov8 (innovate),
and they created their customized ERP system, and they then connected to their customized PDAs
(Personal Digital Assistants) through a cloud computing system that was made by LinkDotNet and
Mobinil. It allows each rider (the worker) receives tasks one at a time on their PDA, which also includes a
GPS to provide them with the correct directions. The GPS function can also monitors the rider’s location
to ensure that they are working well.

 CISCO

When they wanted to provide a better customer service, they started to invest in an innovative contact
center and using CISCO. This application supports up to 300IP phones, having a reporting module and a
good recording system which made it much easier for the company to track its received calls and work
on any problems that its customer service agents might face.

 Mashaweer Server

It is one of the software components developed by Innov8. It is a centralized application that manages
the elements as below:

-Orders placement, editing, pricing, review, tracking, and reports

-Routes management and optimization

-Clients (management, reports, discounts)

-Packages tracking

-Contracts

-The call center

-Satellite offices

-Representatives

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-Cash transactions and expenses tracking for representatives and satellite offices

-Asset tracking of vehicles, PDAs, and mobile printers

-Management reports

 Application Program Interface (API)

The application is used to interpret the data and presents you with the information you wanted in a
readable way. API is playing an important role to integrate Mashaweer ordering system with third
parties. This application allows third parties, for instances delivery company to automate their delivery
system and integrate Mashaweer into their existing CRM / dispatching systems and it opens a great
opportunity for their business expansion.

 Mashaweer PDA application

This application is being installed on all the PDA of the riders and it manages the elements as stated:
Order items progress tracking, collection of order fees and other costs, against a printed invoice,
package handling (barcode scanning and destinations), messaging, cash and expenses tracking and
synchronizing data periodically and at the beginning of each shift.

 Supervisory Control and Data Acquisition (SCADA)

SCADA system is a system of software and hardware elements that allows industrial organizations to
control industrial processes locally or at remote locations, to monitor, gather, and process real-time data
and so on. SCADA system will be used in the Mashaweer headquarters to monitor all of the live orders
and measure the traffic in case of rush hours and so it allows the riders to prevent using the wrong road
and react to it before depart.

What business functions do they support?

 Manufacturing and Production: Providing services to the customers by running errands on

behalf. The personal service is the product that they provide and they are providing the services
depending on the uses of information technology to receive the orders.
 Sales and Marketing: Providing good customer service to their customer by delivering the
correct goods and services on time by depending on the information shown on the PDA. As well,
can keep in touch with the customer for after sales service to build better relationship with the
customer.
 Finance and Accounting: Managing the company’s financial assets and maintaining the
company’s financial records to ensure that the company is always financially healthy with the
transaction record in the customised ERP.
 Human Resources: Attracting, recruit, develop and maintain the high quality company’s human
capital. Ensure that the workers are working happily with the company and providing the best
services to the customers.

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2. What are the benefits from equipping their riders with PDAs?

Personal Digital Assistant (PDA) is also known as a Palmtop Computer or Personal Data Assistant that
functions as a personal information Manager.

Function of PDA including:

- Order items progress tracking

- Collection of order fees and other costs, against a printed invoice

- Package handling (barcode scanning and destinations)

- Messaging

- Cash and expenses tracking

- Synchronizing data periodically and at the beginning of each shift

There are plenty of benefits to use PDA. Mashaweer invested in PDAs is to enable the operation process
to be monitored accurately. PDA provides functions like GPS tracking to track the location of the
customer and the riders so that they would not go to the wrong address for the goods and services
delivering. By using PDA, Mashaweer is able to decrease the amount of errors since the messenger is
tied to an automated process where he receives his tasks through the PDA handheld. Since it is a live
message, the riders will get the most accurate message from the customers and so they could reduce
the errors. Also, the expenses and fuel cost is minimised as there is lesser errors and the message is
more accurate and they would not go to the wrong place because the PDA will show them the correct
routes to use.

3. Was it a good decision to expand the business to Cairo? What are the implications of information
systems?

Yes, it was a good decision to expand the business to Cairo. When Mashaweer was first introduced in
Egypt, it captured 100 percent of the market share in this field as they were the first one providing this
kind of personal service and no one was doing this business. However, the market was not aware on this
kind of service or maybe they were not used to it, the company growth was slow in Alexandria until
people have started to accept this and found the usefulness of this service. However, in contrast, when
the company started their business in Cairo, it grew at a very fast pace. There are several factors causing
the company to enter the target market easier compared to the previous one. At the beginning,
people’s perception is that using the services provided by Mashaweer is too high cost and luxurious.
However, after they used it for a few times, they found that this service is actually very convenient and
helped them a lot in their daily life. The more the people love to use this service and they would spread
the words to the other places and to other people as the information technology is getting more
advanced, and it creates higher demand for the service and this is what helps the company to grow and
expand.

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Technology improvement has been one of the important factors to facilitate the working condition of
Mashaweer. When they decided to expand to Cairo, they decided to adopt a completely different
strategy. Mashaweer wanted to be able to cover all the Greater Cairo instead of only a specific area
from the very beginning. They wanted to enter Cairo with full force so that there will be higher entry
barrier for the competitors. They wanted to invest in their technology so that they are having higher
competitive advantage. Mashaweer is a company highly depending on technological tools. The
advancement of the technology day by day will benefit the company in terms of the company efficiency.
Time and cost reductions are the main key for the company to success and grow faster in Cairo or any
places they wanted to do business.

4. Do you think that Mashaweer will be able to accomplish their future strategy and sustain its market
share?

Yes, I believe that Mashaweer will be able to accomplish their future strategy and sustain its market
share. By using the technology they have invested in building their infrastructure, Mashaweer has the
potential to easily enter other markets in different regions as a very low initiation cost and since they
have built a strong customer base, this will definitely lead them to a more profitable business.

Mashaweer’s future strategy as follows:

 Mashaweer Supermarket: to provide online supermarket service that enable people to shop
online through their website and get it delivered by its representatives within 30 minutes of
placing the order. Variety of products will be displayed on the website. Mashaweer is hoping to
reach an average of 4000 orders daily in return for a delivery charge of 5 Egyptian pounds per
order.
 Call Centre: Expected to make up important revenue stream for the company as it starts
introducing marketing campaigns. As well, Mashaweer is planning to expand the call centre to
include other companies other than Mashaweer.
 Geographical Expansion: Using the technology they invested, they could enter and penetrate
the other markets easily. They plan to expand to other regions within Egypt, and as well to other
countries within the Middle East. In October 2013, they will open their first franchise in Beirut,
Lebanon. They also wanted to expand their company to several countries in the Gulf.

5. Do you think in near future, the competition between Mashaweer and Wassaly will be aggressive?
Why?

I believe that the competition between Mashaweer and Wassaly will not be very aggressive. Mashaweer
is the only one company providing this kind of service in Egypt. There is a company called Wassaly which
was established in Cairo after Mashaweer’s success in Alexandria. Massaly was operated on a much
smaller scale and their indirect competitors include other courier services (eg. DHL, UPS, TNT and
FedEx). Mashaweer has several advantages that help to build higher entry barriers to the competitors.
Mashaweer is having a rich database filled with thousands of loyal clients; this would be one of the
reasons that make them unbeatable. Besides, they are also having a bunch of good workers with high
qualification which hired with higher salaries compared to the other companies, and this is the way they
used to hire and maintain the quality of their riders as happy worker will bring happy customers. As well,

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due to they are the owner of the IT company, Innov8, it fosters technology integration in Mashaweer
and in higher cost efficiency.