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KIT707 : Information And Knowledge Management

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Course Code: KIT707
University: University Of Tasmania

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Country: Australia

Question: 

Case Study 1
1.1 Explain what is meant by network neutrality and explain why the Internet has operated under net neutrality up to this point in time. 1.2 Identify who in the case study is in favour of network neutrality and who is opposed to network neutrality. Provide reasons in each case.
1.3 Explain the impact on individual users, businesses, and government if Internet providers switched to a tiered service model for transmission over land lines as well as wireless.
1.4 Discuss the implications of the following statement: Net neutrality is the most important issue facing the Internet since the advent of the Internet.
Case Study 2
2 .1 Identify and explain the inputs, processing, and outputs of UPS’s package tracking system.
2.2 Describe the technologies that are used by UPS and explain how these technologies are related to UPS’s business strategy.
2.3 Critically analyse the strategic business objectives that UPS’s information system addresses.
2.4 Critically forecast what would happen if UPS’s information systems were not available. 

Answer: 

Case Study 1
1) Network neutrality is an idea based on the principle that all ISP (Internet Service Provider) and the government should permit customers equal access to the applications and the content by treating all the data on the internet equally. It means there should be no discrimination (in terms of application, platform, user, site, content, modes of communication, attached equipment) by the internet service providers in relation with the nature and source of the content the customers access (Pil and Kim, 2010). In the present time, due to the net neutrality, Internet service provider gives internet to every individual user based on first come first serve. They have to provide equal services to everyone without any price or cost differences. In every country, a government authority manages and makes policies regarding Net Neutrality, which revised over years, and years like In USA, it is Federal Communications Commission (FCC) and in India, it is Telecom Regulatory Authority of India (TRAI) (Peha, Lehr and Wikie, 2007). In the absence of these government agencies and net neutrality, private business enterprise can contact ISP providers for giving them priority access to reach to their customers. For example, Big and International companies as Google, Facebook and Amazon can pay internet service providers so that they can give faster and more reliable access to the customers of their content compared to their competitors (Greenstein, Peitz and Valletti, 2016).
The reason of why internet worked behind net neutrality up to this point in time as up to now before there was no much content and users available on the internet. Therefore, this was not the major concern to all as what is happening on the internet because the internet speed and consistency was not effective. Another reason for emphasizing the internet to be neutral as it was built on telephone lines, which focuses to ‘common carriage laws (Sandvig, 2007). According to this law, all the phones companies need to treat all customers and the calls on the equally proportionate basis. If any customers are ready to pay higher prices of any service, the company is bound not to give any extra benefits like clearer or faster calls (Obutte, 2014). It is also known as a model of tired service.
A law stating – “Phone lines are liable to normal “carriage laws” that is a traditional pillar of the broadcast communications telecommunications”. This law states that telecommunication companies should treat all customers equally. The neutrality law was carried forward in the favour of internet users because the modern internet was built on these telephone lines (Hayes, 2008).
2) Those individuals and organizations who strongly support net neutrality rules and the current legal environment are in the favour of net neutrality. This includes the organizations like the Christian Coalition, MoveOn.org, the American Library Association, major users and consumers group, small business and bloggers (Hart, 2011). Some to the big organization was also in the favour like Facebook and Google. The telecommunication company Verizon and the Google presents and gives a split proposition – impose net neutrality on the wired connections but not on wireless networks. Various associates in the U.S. Congress are in the favour network neutrality and they said that the power of ISP providers to control the content by blocking and slowing it from access would also increase the risk of censorship (Quail and Larabie, 2010). Many users are also concerned about the results of the slower internet and high premium price on specific content as this may block them in accessing the content in a speedy fashion. Limited regulations are another concept, which forces companies to support net neutrality. With the time, the internet is also evolving in the form of AI and cloud computing (Xia et al, 2012). Therefore, in the near future, various technological advance like autonomous cars, augmented reality and AI will demand and use greater performance from the internet and if the restriction will be imposed, the creativity and innovation will be decreased.
The individuals who are not in the favour of network neutrality include the cable companies and the telecommunications (Krämer, Wiewiorra and Weinhardt, 2013). These companies want to charge differentiated prices based on the volume and amount of bandwidth taken by the content (whether video, audio or file) being delivered over the internet. Many companies stated that half the capacity on their local line is used by around 5 per cent of their users and they pay as same as the low-usage customers. Therefore, according to them metered pricing and the data is the good way to make equal the investment done in the organization and the network infrastructure (Shelanski, 2007). This will put a cap on every activity of the customer, which forces him to use any specific area of activity. They also add other aspects of arguments in their statements by saying that they want to stop the copyrighted material and illegal file sharing and that is why they are opposing over net neutrality. According to the Comcast report, file sharing of illegal and copyright material was consuming their 50 of the network traffic (Bridy, 2010). In addition, those who are not in the favour of network neutrality stated that it removes the incentives for the internet providers to provide new capabilities through innovation and upgrade to new technology.
3) If the internet adopts tired service model, the use of the internet through all devices may be decreased because tiered service will also include high cost. In addition, business enterprises have to go for the alternative method for the computing as many companies have adopted cloud computing as their infrastructure. There will be a competitive advantage for the several government agencies like USPS to the tired service.
The structure of tiered service permits customers to select from a small set of tiers at an increased value so that they can receive the service in a best-suited manner according to their needs. These arrangements can be seen in the field of telecommunication mostly when it comes to wireless service, broadband access to internet and cable television options.
Therefore, the principal of tired service is utilised by the wireless companies only if they are charging users dissimilar price based on the quantity of text messages, minutes in voice and various other features they wish.
Those companies who are owing or using internet networks argue over the net neutrality that the various imposed laws and regulations is negatively affecting the competitiveness in the economy by limiting the innovations (Becker, Carlton and Sider, 2010). These companies come in that list where the benefit of net neutrality is high. In addition, these companies can increase their revenue and profit by raising the cost for high bandwidth network users. These companies argue that the innovation and advancement in telecommunication sector may be possible with the extra-earned profit. According to their views, low-profit-margin, which is caused by net neutrality, stops them to design and create the future of the massive internet traffic handling.
Those who are in the favour of net neutrality argue that net neutrality allows everyone an equal opportunity to innovate and the rise in the price of the internet due to non-equality will hold the innovation capacity of those who get advantage from its equality (Lee and Wu, 2009). 
Below is the description according to the different individuals and organizations –

Individual users – The tired service model aids in keeping the superiority of service standards for the high level of application and content like VoIP or video streaming. As the services are provided at a better level, the cost will also be increased.
Businesses
Increase the service quality in-terms of efficiency and effectiveness.
The company providing internet services will decrease the cost.
“Better service will lead to more cost and pay”
Mainly for the international and global business.
Government – Due to government regulations, the ideas and expressions of the people will be affected who post their messages in forums. This will prevent the individual user from developing innovative ideas.

The internet will be only used for the relevant usage rather than any type of leisure. The government will also be affected, as it will be difficult for the government to share any relevant information with the people efficiently and effectively. The small-scale business also argues that if the net neutrality is replaced by the tired service model, it will be difficult for them to survive and compete against the “big fishes” in the market.
4) The internet has also revolutionized the way we live in. In addition, it is one of the most innovative developments in the history. With the help of the internet, it can be only possible that the sharing of knowledge and the spreading of information can be done effectively and efficiently (Teece, 2010).
The impact of the popular websites like Amazon prime video and Netflix, in  the sense that Internet Service Provider (ISP) should take notice of its profits and for providing more speedy internet, they can charge an extra fee too (Crowcroft, 2007). However, if Netflix did not want to pay, ISP can make slow down the website deliberately or block it.
Net neutrality means various internet service provider like Verizon, AT&T and Comcast, cannot play favourites with the application and content provider (Hemphill, 2008). This means the internet will be open and equal for all which is significant for the purpose of innovation and creativity.
If ISPs will impose fees for faster and better service or they want to give separate lane for extra payers, then it will be difficult for the tech start-ups to compete with the “Big Fishes” in the market like Netflix and Facebook. Therefore, there is a need for net neutrality so that the things can be fairer and competitive. In addition, if all the information and content are treated equally, then there will also be freedom of speech, expression and information.
The reason why Net Neutrality became the issue as in recent months, this issue comes into the head when proponents of net neutrality represented by President Obama and other parties including Democrats advocate that all applications and contents on the internet should be given equal proportionate or treatment (Faulhaber, 2007).
However, the challengers of the net neutrality claim that the Internet is too complex for the purpose of regulation (Willinger, Alderson and Doyle, 2009). They also argue that regulation and controlling the internet application and content needs of both innovation and capitalism.
The internet is for everyone and no one own it. However, some users have to pay for the network structure (basically the “pipes”) that provides access to the internet with making available all the content and services. Individual customer or user of the internet pays to their service provider for using of their services and fee paid by them are generally termed as a flat subscription by the user, which they have to pay to avail the offers and service. There is no matter how little and how much they are using the internet. Therefore, one side of the discussion is focused on ensuring the continuous growth and improvement of the internet infrastructure whereas the other side of the argument focus on how to pay for that. Some of the argument stated that eliminating the net neutrality will lead to the censorship where other arguments state that the content will remain available but at different prices.
The debate goes continuous and this is not the final words on the issue, but it is a massive and important step in the right direction.
Case Study 2
1)  There is a series of steps in the inputs, processing and outputs of the UPS package tracking system:

Inputs – In this step, raw data is collected or captured from the internal and external business environment. Majorly it includes 
Comprehensive information about the destination, sender and the date of arrival of the package.
Location of each stop and route including weather conditions and Traffic of the route.
The signature of the Customers, pick up information and the delivery information.
The tracking information of the packaging, which is transferred to the UPS central mainframe web for storage and processing.
Current status/progress and location of the package within the route to the destination.
Clearance documentation in relation to billing and customer.
Process – It is related with the conversion of the inputs into a meaningful form just like the conversion of the data into the relevant information. Majorly it includes –
Information transmitted and processed to the UPS central computers situated in Mahwah, New Jersey and Alpharetta Georgia.
With the help of the DIAD, the restructuring of package information tracking transmitted to the UPS networks of the computer. DIAD is captured from the scan-able label printed on packages and changing schedules.
The restructuring of information with the help of automated package tracking system.
For making the most efficient delivery route for every driver with the help of software creation and algorithms.
Output – In this stage, the information will be transferred to all those people who will use these activities for various significant purposes. Majorly it includes –
Pickup and the time of delivery.
The recipient of the package.
The information will be easily accessible available worldwide so that to handle customer queries and as the proof of delivery.
Log of all transactions as for the backup.
Continuous observing and redirecting of packages.
Present place, status and progress of package, which is in the route to destination or end.
With the help of DIAD, the most effective delivery direction will be downloaded into each device of the driver. This is in accordance with the weather conditions, traffic and other factors.
Billing and documentation. Here, the bill will be dispatched and necessary claims can be done.
Also includes various reports generated manually or from the system. It includes necessary summary reports for the management.

2) United Parcel Service (UPS) is using various information and internet technologies, which help the company making a competitive edge in the market and maintain an unbeatable position in the whole industry (Bowen, 2012). These technologies include barcode scanning systems, communications networks embedded in wired and wireless, DIAD (Delivery Information Acquisition Device), desktop computers, the central computer of the UPS which is also called as mainframe computer of the company, storage technologies for the package delivery data. UPS also includes various machineries related to telecommunication for transmitting the data with the help of cellular phone networks and pagers. The organization is also having in-house programmes for the package tracing, payments calculation and keeping of the consumer books and logistics management. Therefore, these all are the list of technologies used by the UPS, which helps them to grow and compete against the big companies like FedEx.
UPS business strategies are linked to these technologies, which help them to achieve their strategic objectives. For the 90 years, UPS is using the same strategy to provide better and excellent services with the lowest rate in the industry. The most significant aspect of this technology is giving the ability to the customers to track his/her packages with the help of the UPS website. However, the data can also continue to flow through the system of UPS and assist streamline the workflow at UPS with the help of these technologies. Therefore, all these technologies, software and strategy make UPS more reliable, efficient, competitive and profitable in the industry. This can be easily shown as the information system solution provides the high level of services even in this mounting competition with the low pricing strategies.
The UPS technology aligning with the business strategy helps in providing –

Best services –
Delivery Information Acquisition Device (DAID) helps the customers in getting relevant information regarding the concerned packages and allows helps them in answering their queries (Niemann, 2010).
As a customer getting live information about their delivery, they will get delighted and more satisfied.
The system of OMS provides automated fax or email to every users of its shipping milestone and any changes in the delivery outcome (Gangar, 2016).
As the customer can feel here that, the company is concerned for them, this result in an overall satisfaction.

Therefore, Satisfaction of customer = customer retention + customer loyalty = business strategy of best service (Thurau and Hansen, 2013).

Low Cost –
The company has adopted the system of barcode scanning by which various dispatchers in the warehouse and centres can download the label data, using of the software with different algorithms to create a most effective route for the drive for the delivery.
The delivery route is affected by many factors like condition of weather, traffic and the location of each step. This will help them in saving time and more packages can be dispatched.
As the cost will be saved for the company, this will allow the customers to get the packages with the low rate.

3) The strategic business objectives that UPS information system addresses are related to the provision of best and excellent customer services to the users. For maintaining a high level of customer service and aligning its overall operation, the company also invest around $1 billion. The company also focuses on improving the efficiency of the performance by improving the operational processes (Brown, Blackmon and Cousins, 2013).
Because of the advanced integrated technologies, UPS can provide the services to the customers on a cheaper and in more efficient manner.

Operational excellence– In spite of the competition from the big giant companies like FedEx, UPS has maintained a continuing leadership by having an investment in advanced information technology. Operational excellence can also be seen in the strategy of UPS when they cut down the costs of fuel consumption in their trucks using advanced integrated technology. This shows that how much efficient are their in-house processing and operations.
Business models, new products and services – A new web-based Post Sales Order Management System (OMS) was launched by United Parcel System in the June 2009, which helps and manage in the world-wide service orders and inventory for critical parts fulfilment. With the help of this arrangement and the associated software, aerospace, equipment related to medical fields, high-tech electronics and other businesses enterprise anywhere in the globe that transport important parts so that to fast evaluate their critical parts inventory. In addition, to find the utmost efficient routing plan so that the customer needs can be met, online order placing and trace parts from the warehouse to the destination (Allen, 2016).
Competitive advantage – From the decade, United Parcel Service is leveraging and getting expertise in its global delivery network for managing the activities of supply chain and logistics for the other organizations. The company supply chain solutions branch gives a whole service bundles, which are standardised in nature so that to subscribing organizations at a fraction of what it would cost to make their own infrastructure and systems.
Improved decision-making – With the help of integrated internet and information technologies connected to every device with the people and users, the company are having a high degree of control over their people, information, technology, operations, processes and their customers. All their devices are connected to their central system situated in Mahwah, New Jersey and Alpharetta Georgia, which help the company and the management to make decision effectively and efficiently.
Survival – For the purpose of survival, the company always focusing on innovation in the information technology, which can help them in saving costs and earning an extra amount of profit but with the provision of better-satisfied customers. In this industry, due to the presence of big giants like FedEx force company to hold and block a leadership position in the industry so that this can increase the time in the life cycle of their business (Kumar, 2008). In addition, the company also diversify and expand by providing standardised supply chain and logistics solutions to the other companies like Lightning Science Groups who are a leader in making advanced lights products.

The competitive advantage of the company is addressed when they use advanced integrated technologies like DIAD which make them do things better than their competitors.
4) The absence of UPS Information System will create trouble for the business corporation to compete efficiently without the advancement in technology. If the necessary technology were not available, then like most of the company they can provide the information but a higher price. From the customer perspective, with the provision of information, the value was also provided and this makes the customers complete their task more efficiently (Kale, 2014).
Some problems of the United Parcel Services are related to the activities of the supply chain and logistics, which affects the other companies as they handle their logistics and supply chain activities too. These services consist of customs brokerage, mail services, freight forwarding, and designing of the supply chain, multimodal transportation, and financial services in addition to the logistics service. The company are having advanced integration of their technologies, which helps them to provide these services in an efficient and cheaper manner as compared to the most of the other companies.

Customer/Sender– If there will be no presence of the information system than the customers who are using their services will be decreased at a faster pace. In addition, the sender will also choose those individuals who have more information and high proof, and easy to recognise system.
Global delivering – Considering other nations and countries, it will be difficult to get their packages. They will not get faster information about their packages and this will make them confuse what is going with the packages.
Saving Costs –It cannot be said practically as whether it will be good for the company to saving the cost as they do not require enough employees and machines or whether the cost of operations will be high. However, this aspect of the management will be affected by the necessary information systems were not available.
Time losing– As the system always gives updated information about the packages, this will be as an advantage for the UPS has but now as the absence of the information system can make the company lose their time in inefficient processes and activities.
Connected companies – Various companies who are using UPI tools and information system in their supply chain activities and logistics like Lightening Science Groups who is the world-leading maker of lights products advances in technology such as efficient energy consumption, light-emitting diode lamps and custom design lightening system are using UPI supply chain solutions including logistics.
Finishing customer information –  In the absence of the information technology, the last stage of billing and documentation will also be affected as the work need to be done manually which leads to slower processing and greater time. In this process, this may affect the mind of the customer, which creates trouble.

Lastly, no information technology and system leads to the slowing of operation and processes slow in providing the customer with the relevant information about the packages, slow in finalising and finishing the user information and increased in the cost of packages.
References:
Allen, J.O. (2016) The Package King: A Rank and File History of United Parcel Service, US: CreateSpace Independent Publishing Platform.
Becker, G.S., Carlton, D.W. and Sider, H.S. (2010) Net neutrality and consumer welfare. Journal of Competition Law and Economics, 6(3), pp.497-519.
Bowen Jr, J.T. (2012) A spatial analysis of FedEx and UPS: hubs, spokes, and network structure. Journal of Transport Geography, 24, pp.419-431.
Bridy, A. (2010) Is online copyright enforcement scalable. Vand. J. Ent. & Tech. L., 13, p.695.
Brown, S., Blackmon, K. and Cousins, P. (2013) Operations Management: Policy, Practice and Performance Improvement, Boston: Routledge.
Crowcroft, J. (2007) Net neutrality: the technical side of the debate: a white paper. ACM SIGCOMM Computer Communication Review, 37(1), pp.49-56.
Faulhaber, G.R. (2007) [Special Section on Net Neutrality] Network Neutrality: The Debate Evolves. International Journal of Communication, 1(1), p.21.
Gangar, R.K. (2016) Order – Management – System, New York: Lulu.com.
Greenstein, S., Peitz, M. and Valletti, T. (2016) Net neutrality: A fast lane to understanding the trade-offs. Journal of Economic Perspectives, 30(2), pp.127-50.
Hart, J.A. (2011) The net neutrality debate in the United States. Journal of Information Technology & Politics, 8(4), pp.418-443.
Hayes, B. (2008) Cloud computing. Communications of the ACM, 51(7), pp.9-11.
Hemphill, C.S. (2008) Network neutrality and the false promise of zero-price regulation. Yale J. on Reg., 25, p.135.
Kale, V., (2014) Inverting the Paradox of Excellence: How Companies Use Variations for Business Excellence and How Enterprise Variations Are Enabled by SAP, New York: CRC Press.
Krämer, J., Wiewiorra, L. and Weinhardt, C. (2013) Net neutrality: A progress report. Telecommunications Policy, 37(9), pp.794-813.
Kumar, D. (2008) Outside the Box: Corporate Media, Globalization, and the UPS Strike, United States of America: University of Illinois Press.
Lee, R.S. and Wu, T. (2009) Subsidizing creativity through network design: Zero-pricing and net neutrality. Journal of Economic Perspectives, 23(3), pp.61-76.
Niemann, G. (2010) Big Brown: The Untold Story of UPS, San Francisco: John Wiley & Sons.
Obutte, P.C. (2014) ICT laws in Nigeria: planning and regulating a societal journey into the future. Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad, 17(1), pp.419-451.
Peha, J.M., Lehr, W.H. and Wilkie, S. (2007) The state of the debate on network neutrality. International Journal of Communication, 1(1), pp.709-716.
Pil Choi, J. and Kim, B.C. (2010) Net neutrality and investment incentives. The RAND Journal of Economics, 41(3), pp.446-471.
Quail, C. and Larabie, C. (2010) Net neutrality: Media discourses and public perception. Global Media Journal, 3(1), pp.31.
Sandvig, C. (2007) Network neutrality is the new common carriage. info, 9(2/3), pp.136-147.
Shelanski, H.A. (2007) Network Neutrality: Regulating with More Question Than Answers. J. on Telecomm. & High Tech. L., 6, p.23.
Teece, D.J. (2010) Business models, business strategy and innovation. Long range planning, 43(2-3), pp.172-194.
Thurau, T.H. and Hansen, U. (2013) Relationship Marketing: Gaining Competitive Advantage Through Customer Satisfaction and Customer Retention, Germany: Springer Science & Business Media.
Willinger, W., Alderson, D. and Doyle, J.C. (2009) Mathematics and the internet: A source of enormous confusion and great potential. Notices of the American Mathematical Society, 56(5), pp.586-599.
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