Gabe Wisneski Jana Kowalik Olivia Gonzalez Jeff Robinson Samuel Medina

1. Delivery Information Acquisition Device (DIAD) at UPS Gabe Wisneski Jana Kowalik Olivia Gonzalez Jeff Robinson Samuel Medina University of Houston-Victoria  MGT 6352

2. Company overview Before • Founded in 1907 Seattle Washington • 19-Year-Old James E. (Jim) Casey • $100 Loan for Messenger Service • American Messenger Company Now • $49.7 Billion Corporation • 200 Countries & Territories • 3000 Mail Box Etc. • 300 Compressed Natural Gas Fleet 02/09 • 14.5 Million Packages • Delivered Daily Q1 2009

3. Developmental History of the DIAD

4. Delivery Information Acquisition Device (DIAD) • UPS Delivers 14.5 Million Packages & Documents Every Day • Online Tracking Transformed the Package Delivery Industry • Aids CIOs and their teams to • business-oriented • strategic approach to IT • provide new and improved customer services • maximum flexibility in field

5. Differentiation and Effectiveness to identify strategic priorities Customer Tracking in Real-Time Flexibility to accept future network technologies Delivery Information Acquisition Device (DIAD)

6. Year of Introduction • 1990 • Hard Drive • 0.75 megabytes of memory • Development • Created by two wholly owned subsidiaries of UPS. • Design • 11 x12 inches in size • Pen-like Stylus • Technology • Almost completely eliminated paperwork for drivers and customers. • Ability to scan and collect bar code information. • Info could then be uploaded at the end of every shift by each driver. • Able to tally COD information, program route information and maintain driver timecards. DIAD I

7. Year of Introduction • 1993 • Hard Drive • Doubled the memory of the ordinal DIAD. • Memory of 1.5 megabytes. • Development • UPS factored in recommendations from drivers. • Led to the DIAD II being smaller and lighter. • Increased ease of use. • Improvements • Provided the ability for drivers to have two way communications in the vehicle from the DIAD back to the dispatch center. • Delivery information could be uploaded in real time through a cellular service when the DIAD was inside the vehicle. • Allowed UPS to give customers same day package tracking information. • Previously customers had to wait till the next day to find out whether or not their package had been delivered. DIAD II

8. Year of Introduction • 1999 • Hard Drive • Faster processor • Memory of 6.5 megabytes • Development • Developed at the urging of the Ken Lacy, UPS’s Chief Information Officer. • Manufactured by Motorolla, Inc. in Schaumburg, IL • Design Adjustments • A global keyboard that glowed in the dark. • It was the introduction of modular architecture. • This allowed UPS to change individual components based on need or desire. • It gave UPS much more flexibility than they had with any of the previous DIADs. • Improvements • Capable of capturing and transmitting real time delivery information in three ways. • Through an internal packet data radio. • By way of an in-vehicle cellular service. • Through a “built-in automatic dialer for traditional telephone transmission.” • Enabled two way communication away from the vehicle. • Allowed drivers more freedom and by not making them return to the vehicle every time they had wanted to upload or download information to or from the server. DIAD III

9. Year of Introduction • 2005 • Hard Drive • 128 Megabytes of Memory • 20x the amount of DIAD III • Development • Co-developed by UPS and Symbol Technologies • Design Adjustments • Lighter and more ergonomically sound. • Full color screen • Improvements • WiFi • Bluetooth Connections • General Packet Radio Service (GPRS) Communication • Global Positioning System (GPS) • Increases efficiency of UPS drivers. • UPS dispatch center can locate the most convenient driver for an on-call pick up. • Gives most efficient routes and assists in finding unfamiliar addresses. • Alerts the driver if they drop off a package in the wrong location. DIAD IV

10. UPS – Economic, Social, and Environmental objectives USPS – Customer needs, leverage strength, and embrace change FedEx – Compete, satisfy customers, and manage collaboratively Industry Analysis

11. New Market Entrants – Low -Existing companies already efficient Customer Power – High -Customers include the general public and businesses. -Customer choice based on cost andreliability Supplier Power – Medium - Grumman Olson - HP - Motorola - Symbol Corporation Competitive Rivalry – Intense -Large, well known companies -Aggressive strategies Threat of substitute products/services – Low -New technology may create better services. Porter’s Competitive Forces Model

12. Company Analysis of the DIAD

13. Prior to DIAD sorting, tracking, delivery = labor intensive very paper intensive prone to error due to illegibility Sorters memorize zip codes and shelf locations place packages correct vehicle shelf location Drivers clock-in pickup their list of deliveries pull form the correct shelf to load his/her truck plan orderly route. In Route little communication extra pickup or a package or change of address. Final Destination required delivery confirmation signature captured by paper, pen, and carbon paper Return to the local operation center drivers would unload their truck turn in the delivery confirmation sheet clock-out Delivery confirmation sheet passed to the data entry department entry of information was slow and time consuming very difficult read due to hand writing Before the DIAD

14. Rolled out to small group of influential employees • Well received by most drivers • Veteran drivers were slow to accept the change • Called tech support for slightest issue • Issue raised with visibility of the screen for drivers who wore sunglasses • Corrected issue with polarized screen DIAD Adoption

15. A larger signature pad for the customer • Move the signature key so customers don’t hit it when grabbing the device • Text to other drivers • Email & Internet access • Voice recognition with the ability to enter addresses or other information verbally. • Credit card reader for C.O.D.‘s DIAD Requests

16. Loves the DIADthumbs up

17. Improves: • Delivery Time • Accountability • Reduction of data entry error • Customer Service DIAD Today

18. 96000 DIADs in use • Driver downloads delivery manifest • PAL (Preload Assistance Label) • Packages already loaded on truck • Directs Delivery, Efficient route, GPS • Text Message Alert • Digital Signature • Delivery Status Update Real-time • 10 million request each business day DIAD Today

19. Automated functions of data entry and call center departments • Eliminating around 6000 jobs • Saved 59 million sheets of paper • De-skilled the driver • Saved $600 million operating cost • Cut 1.9 million miles off delivery routes • DIAD V - 2010 DIAD Today

20. Traffic reports • Time and attendance • Special parking instructions • Security procedures • Customer contract information Other DIAD Features

21. UPS Value Chain Model - DIAD Administrator & Management Management tool that allows managers – time studies and measure drivers performance Human Resources Recruitment field is larger as DIAD deskilled worker Technology & Development Secondary Activities Receive feedback from users, solve device issues, plan future features Firm Value Chain Procurement None Operations Service Sales & Marketing Outbound Logistics Inbound Logistics • Daily ground schedules • Personnel scheduling • Fuel management • Package routing • Vehicle maintenance • Flight scheduling • Vehicle package pickups • UPS drop boxes • UPS Stores • Schedules • Storage • Promotions • Advertising • Uniforms • Trucks • Corporate accounts • Lost packages • Damaged packages • Package tracking • Phone service • vehicle package pickups • UPS drop boxes • UPS Stores • Schedules • Storage Primary Activities

22. 2012 UPS Delivery Truck

23. Questions

24. Karp, A . (2005). Tracking Every Movement. Retrieved March 21, 2009, from • http://www.aircargoworld.com/features/1005_1.htm#top • Nobel, C. (September 27, 2004). Wireless: Data capture- Delivery mechanisms • http://www.eweek.com/ • Brewin, B. (2003). UPS to spend $127M on tri-mode wireless driver terminals. Computerworld • Mobile and Wireless. Retreived March 14, 2009, from http://www.computerworld.com/action/article.do • Eng, P.M. (1991). Now UPS customers will have to sign on the dotted screen. Business Week • Online. Retreived March 14, 2009, from http://www.businessweek.com/archives/1991/ • /b320954.arc.htm. • Evolution of the UPS Delivery Information Acquisition Device (DIAD). (2004). UPS • Pressroom. Retrieved March 14, 2009, from http://www.pressroom.ups.com/mediakits/ • factsheet/0,2305,843,00.html. • Fillion, R. (2008) UPS technology saves fuel. Rocky Mountain News. Retrieved March 13, • 2009, from http://m.rockymountainnews.com/news/2008/Jun/24/ups-technology-saves-fuel/ • UPS Parcel Delivery Tracking Application. (2001). Mobile Info Best Practices Case Studies. • Retreived March 15, 2009, from http://www.mobileinfo.com/case_study/ups.html. • 2007 UPS Corporate Sustainability Report. (August 2008). UPS Sustainability. Retrieved March • 16, 2009, from http://www.sustainability.ups.com/docs/2007_CSR_PDF_Report.pdf. • Vision 2013. (October 2008). Five Year Strategic Plan for 2009-2013. Retrieved March 23, • 2009, from http://www.usps.com/strategicplanning/_pdf/ • Vision2013FullDocument.pdf • Mission, Strategy, Values. (2009). Company Information. Retrieved March 23, 2009, from • http://about.fedex.designcdt.com/our_company/company_information/mission_statement References

25. Dade, Cory. (2006, July 24). Moving Ahead:How UPS went from low-tech to an IT power- and • where it’s headed next. The Wall Street Journal. • Laudon,K. & Laudon,J.(2007).Management Information Systems:Managing the Digital • Firm.New Jersey:Pearson Education. • UPS (1994-2009).UPS Pressroom. Retrieved March 26, 2009, from • http://www.pressroom.ups.com/mediakits/factsheet/0,2305,1134,00.html • Niemann,Greg.(2007).Big Brown: The Untold Story of UPS. San Francisco:Jossey-Bass. • Dudley,Brian.(2005).AN ANALYSIS OF THE EFFECTIVENESS OF E-COMMERCE AT UNITED PARCEL SERVICE. Retrieved March 26, 2009, from • http://sais.aisnet.org • UPS (1991-1999).UPS Pressroom. Retrieved March 26, 2009, from • http://www.pressroom.ups.com/About/History/Consistent_Container • UPS Parcel Delivery Tracking Application (1999-2001).Best Practice Case Studies. Retrieved • March 26, 2009, from http://www.mobileinfo.com/case_study/ups.htm • Wodworthmedia (2007). Introduction to Management. Retrieved March 26, 2009, from • http://www.wadsworthmedia.com/marketing/sample_chapters/0324316593_ch01.pdf References