IT Provides Business Edge in Battle of Archrivals

In this era of digital disruption, it’s no secret that technology can create winners and losers. These days, companies in a wide variety of industries boast about their tech prowess in TV commercials and Wall Street briefings. Here we look at the fiercest of rivals in three industries — retail, manufacturing and logistics – and examine how each company is exploiting IT to gain an edge. Home Depot CIO Matt Carey, for example, sees competitive advantage in software for scheduling store employees and algorithms to govern product stocking. But each company has weaknesses, too, and must watch out for IT advances at obvious competitors and out-of-the-blue disruptors.

Ford:

• The current version of the SYNC communications and entertainment system is based on a version of Windows built specially for cars. But Ford reportedly plans to drop Windows for BlackBerry’s QNX operating system, starting with 2016 cars. The AppLink feature lets drivers connect their smartphones to the system to run apps and share data.
• Driver-assist and crash-avoidance technology built into vehicles is analytics on wheels, processing data and adjusting the system in real time.

General Motors:

• OnStar, a proprietary in-car communications system, provides navigation services and monitors for safety problems for 6.5 million members.
• A deal with AT&T will expand OnStar to support 4G LTE cell service next year, which will enable infotainment features such as weather data and Internet radio.

FedEx: FedEx and UPS are looking at Amazon.com crouching nearby as a potential rival. The online retailer is working with USPS to deliver packages on Sundays. FedEx has partnered with the post office, too, for delivering light packages in a deal that generated $926 million in revenue for FedEx last year.

UPS: Both delivery companies were deluged by last-minute online shopping late last year, but UPS saw more delays than FedEx. UPS estimates that late and missed deliveries cost it $125 million to $150 million in refunds, plus $50 million in lost revenue. UPS has assigned its COO to figure out how to prevent such trouble; first up is better data sharing with business customers to identify potential problems sooner and adjust personnel and systems.