Organizational Impact Paper
Innovation is what gives an organization the competitive advantage the business will need to be successful in the market. Innovations are ideas that can impact the strategy, process, products and services that an organization has to offer to its customers. Three organizations that have an enormous impact on innovation are United Parcel Service (UPS), Hewlett-Packard and The Coca-Cola Company.
United Parcel Service (UPS)
United Parcel Service (UPS) is the world’s largest package delivery company (Hira, 2008). The company offers package delivery, specialized transportation and logistics services in more than 200 countries around the world. The company is always trying to find ways to be innovative and incorporate innovative ideas in the strategy of the company. The company has used digital technology to modernize operations (LaGesse, 2006). The company uses hand-held computers and wireless links to push automation of package flow technology. The company put a system in place that has saved the company money by cutting over 100 million miles of driving time and saving over 14 million gallons of gas as well as speeding deliveries (LaGesse, 2006). The company spends millions of dollars annually to keep up with technology and has made it easier for workers to get to packages when out doing deliveries. The central hub of UPS air deliveries in Kentucky is highly automated and uses computers to do all of the sorting. Having the latest technology also allows loaders to be trained in days instead of taking months (LaGesse, 2006). The company will have to ...
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...to deal with inbound and outbound logistics, one that is made up mostly of the personnel from outbound logistics. These professionals deal with the second core competency of Deere, logistics, separate from the manufacturing of tractors and lawnmowers. The creation of this team helps eliminate the risk Fedex’s poor performance (managers were not pleased with Fedex’s centralized transportation management service) and need to measure performance of a 3rd part continuously. As a result, performance is self-managed. We expect as the IT system is used to optimize and plan transportation routes amongst inbound and outbound trucks, cost savings will increase more rapidly. We believe internal continuous improvement, leaner logistics operations and synergies amongst all logistics activities will lead to the $69 million goal being met by the third year after implementation.
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
When one thinks about the post office one pictures long waits and small-white-ugly-vans. This holds value as today’s United States Postal Service continues to deteriorate and lose what made it special in the first place. For a long time now, the USPS should be restructured to meet the needs of the changing world. Although the UPSP holds dear in many people's heart, the USPS needs to be restructured because technology is the way of the future and a more modern postal service would benefit the environment. To begin with, the Postal service should be revamped since technology has proven to be the more efficient and simpler route.
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Innovation is defined as generation of new ideas or application of new ideas to existing situations to improve productivity, quality of care, and outcomes. Some of the principles of innovation are creative problem-solving; open, assertive communication to empower
Real Threat of Substitute Products or Services: High customer satisfaction earned through conscientious drivers, high reliability, and Internet-based tools has kept UPS at the top. UPS has created an economic advantage by assembling a dense integrated global shipping network that is unlikely to be matched by any but a few global players.
It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways (Pearce & Robinson, 2011, p. 376). Simply stated on Merriam-Webster.com, innovation is “the introduction to something new; a new idea, method, or device”. Netflix’s Innovative Overview The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regarding the services and products in the DVD rental industry (Watson, 2008)....
The United Parcel Service has taken steps to restructure itself from an operations-oriented company into a market driven industry. Recent findings suggested the need to achieve better external customer satisfaction. The steps taken were to improve the overall of all customers that utilize the services at UPS. Other key areas that need improvement are volume logistics and customer logistics. The main priority at UPS is to deliver the package on time. They provide a much-anticipated alternative to the monopoly of the United States Postal Service. This competitor has been unreliable on multiple occasions. The average customer is feed up with the inconsistencies of the United States Postal Service. Unlike this company, the United Parcel Service helped define the word efficiency. Even from the earliest days, when Jim Casey and Claude Ryan, two Seattle teens, gave life to the now world-known UPS delivery company. ”Management is the...
From the manufacturers’ warehouse to the shelves, the business must orchestrate a symphony of the right products to the right places at the right times. Walmart serves customers and members more than 200 million times per week in retail outlets, online and on mobile devices. The company is able to offer a vast range of products at the lowest costs in the shortest possible time (Chandran, 2001). The main reason for this incredible growth of Walmart is because its distribution centers are highly automated.
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
FedEx started offering SCM services to its customers on a very small scale in 1974.With increasing demand for services such as in...
Innovation is an object that was successfully implemented in production and making a profit as a result of scientific research or discoveries made qualitatively different from previous counterpart. The term innovation and disruptive innovation are similar. The innovation process is associated with the creation, development and dissemination of innovations.
Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually