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

[cheryl]

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.”

 

[Catatonic]

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.

 

[InsideUPS]

From: Meet ORION, Software That Will Save UPS Millions By Improving Drivers' Routes - Forbes

"UPS won’t disclose how much ORION specifically cost, but Perez says the program is a “good-sized project” for the company’s $1 billion annual technology spend. The company has 500 staff working on its deployment."

 

[Catatonic]

From: Meet ORION, Software That Will Save UPS Millions By Improving Drivers' Routes - Forbes

"UPS won’t disclose how much ORION specifically cost, but Perez says the program is a “good-sized project” for the company’s $1 billion annual technology spend. The company has 500 staff working on its deployment."

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.