UPS is using IT to create competitive advantage for itself. Are they bringing "custom software" back?
Since the advent of software packages, custom software has taken a backseat. Companies always had trouble programming and implementing custom software so the advent of the ERP, CRM, SCM and their brethren has been a bane to most. Most companies are pursuing a best of breed strategy for software selection and implementation.
However, in this rush to buy, we have forgotten that IT is a strategic weapon. It creates strategic advantage. How does one create differentiation when implementing the same software everybody in the world has?
Hence, the smart players are pursuing a best for the need strategy. UPS is one of them. Its route mapping software has given it unimaginable efficiencies. More importantly, it has given it strategic differentiation its competitors cannot easily overcome.
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