UPS Spends $1 Billion a Year on Big Data: For What?

Discussion in 'The Latest UPS Headlines' started by cheryl, Nov 8, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Spends $1 Billion a Year on Big Data: For What? - Bloomberg

    David Barnes, chief information officer at United Parcel Service Inc., says the company is using data from customers, drivers and vehicles in a new route guidance system that will save time and money. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”
     
  2. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Before anyone starts spouting off that Orion costs $1 Billion a year, watch the video.
    UPS spends about 1 billion a year for all technology related expenses.
    That includes all the computers, PCs, DIADs, desks, chairs in the Information Services branch.
    It includes all the personnel expenses of the IS people and local TSG people.
    It includes the millions to provide and support tracking, on-call pickup, Calculate time and costs as well as many other information systems.
    Orion probably does not cost more than $10 ​Million a year in Technology cost.
    I welcome someone in the know to give actual costs per year for Orion.
     
  3. InsideUPS

    InsideUPS Active Member

  4. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    From my experience and classification of IT projects, "good sized" means it is $30 million or less.
    Capital Expenditures such as new servers would be in addition to the $30M
    Juan is a District Manager level person in the IS group and quite possibly the next CIO.
    That 500 staff working on deployment will cost more than the technology development.
    That is an operational cost unless the deployment person is assigned to IS.
    ​These technology projects deployed in UPS Operations just about always cost many times over in operational cost to deploy than to develop.
    The cost to develop and deploy ORION over 2013 - 2018 could easily reach $120 Million or $20 Million per year.
    That does not include the probable $30 Million plus to develop to this point.