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Digital Imaging, Document Delivery and the United Parcel Service Wednesday November 4, 1998 Susan Chapman Eduardo Gonzalez Nina Lee Andrew Robertson Jean-Christophe Roux 288,000 This is the number of packages weighing less than 2 pounds that UPS delivers everyday.

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Digital imaging document delivery and the united parcel service l.jpg

Digital Imaging, Document Delivery and the United Parcel Service

Wednesday November 4, 1998

Susan Chapman

Eduardo Gonzalez

Nina Lee

Andrew Robertson

Jean-Christophe Roux


288 000 l.jpg
288,000 Service

  • This is the number of packages weighing less than 2 pounds that UPS delivers everyday.

  • It is also 30% of UPS’s revenues ($6 billion). What if email, which is fine for most of those documents, takes the business away?

  • The small package segment is already a competitive nightmare. FedEx has a strong 56% market share in this segment.


To convert 288 000 worries into l.jpg

To convert Service288,000 worries into



Ups introduces ups document exchange l.jpg

...UPS introduces ServiceUPS Document Exchange


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UPS Document Exchange Service

  • UPS OnLine Dossier

  • UPS OnLine Courier

  • Same idea to carry document through the Internet

  • But Dossier offers a higher degree of security


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Video Description of ServiceUPS OnLine Dossier


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The technology behind the ups document exchange l.jpg

The technology sides of UPS Document Exchange, let’s have a look at...behindthe UPS Document Exchange


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We will focus on: sides of UPS Document Exchange, let’s have a look at...

  • The main consumer-related specifications that have driven UPS technological choices.

  • The technologies that UPS chose to meet those specifications.


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The main specifications that sides of UPS Document Exchange, let’s have a look at...drove UPS technological choices

  • Universality

  • Simplicity

  • Reliability

  • Security


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  • Universality sides of UPS Document Exchange, let’s have a look at...

    • Must be available everywhere

    • Must be sender-driven

    • Must handle various business applications

  • Simplicity

    • Must be intuitive and user-friendly

    • Must NOT imply new IT expenses


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  • Reliability sides of UPS Document Exchange, let’s have a look at...

    • Must inspire a high degree of confidence

    • Must deliver any digitized material

    • Must eliminate physical components

  • Security

    • Must verify identities of sender and receiver

    • Must be tamper proof

    • Must be trackable


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To meet those specifications, sides of UPS Document Exchange, let’s have a look at...UPS . . .

  • Made the obvious choice of the Internet (universality and simplicity)

  • Allied with AT&T to benefit from its Internet backbone (reliability)

  • Allied with leaders of the On-line delivery business (simplicity, reliability and security)


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The technologies that are used sides of UPS Document Exchange, let’s have a look at...

  • Step One: Have the document digitized

  • Step Two: Send the document

  • Step Three: Receive the document


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Step one: sides of UPS Document Exchange, let’s have a look at...Have the document digitized

  • Usually, the document is already on the computer

  • But if that is not the case, we may need to scan the document


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How does a scanner work sides of UPS Document Exchange, let’s have a look at...


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Send the document sides of UPS Document Exchange, let’s have a look at...

  • This is the core the UPS Document Exchange service

  • We will focus on its major feature: high degree of security


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Before going into the details... sides of UPS Document Exchange, let’s have a look at...


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A little technical up-date! sides of UPS Document Exchange, let’s have a look at...

  • Digital Certificates

    • Identification and functional role

    • The Certificate Authorities

  • Digital Signatures

    • Guaranty the sender is the appropriate person

    • Guaranty the contents were not altered

  • Cryptography Primer

    • The digital envelope: secret and public keys


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Traditional Cryptography sides of UPS Document Exchange, let’s have a look at...


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Public Key Cryptography sides of UPS Document Exchange, let’s have a look at...“Only the appropriate receiver can open”


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Public Key Cryptography sides of UPS Document Exchange, let’s have a look at...“The recipient is sure of the sender’s identity”


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Digital Envelope sides of UPS Document Exchange, let’s have a look at...Cryptography

  • The trouble is that Alice and Bob must agree on the keys and someone may intercept their “agreement”.

  • Do you have a solution?

  • Yes, the solution is:

    • “Only the appropriate receiver can open” the document

    • “The recipient is sure of the sender’s identity”


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Into the details sides of UPS Document Exchange, let’s have a look at...ofUPS Document Exchange


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Another three-step approach transportation of the document over the Internet.

  • Step 1: From the sender to UPS

  • Step 2: UPS in action

  • Step 3: From UPS to the recipient


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Step1: transportation of the document over the Internet.From the sender to UPS


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Step 2 transportation of the document over the Internet.UPS (NetDox) in action


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Step 3 transportation of the document over the Internet.From UPS to the recipient


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Receive the document transportation of the document over the Internet.


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To address the transportation of the document over the Internet.universality constraint

  • We need formats that are standards:

    • For text: pdf

    • For image:jpeg

    • For video: mpeg

  • We focus on pdf


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Pdf format transportation of the document over the Internet.

  • Portable Document Format

  • Developed by Adobe (Acrobat software)

  • Main features by other document formats

    • Cross Platform

    • Navigational

    • Ultra-Printable

    • Ultra-Viewable

    • Smaller.


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The marketing strategy transportation of the document over the Internet.


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What’s the Product? transportation of the document over the Internet.

  • It’s fast,

  • It’s easy to use and safe to use.

  • It’s versatile.


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Who are the targeted customers? transportation of the document over the Internet.

  • Law Firms

  • Medical Care Providers

  • Banks

  • Insurance Companies


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Cost Comparison transportation of the document over the Internet.

  • Documents Letter Fax Doc X

  • 1 Cost $4.44 $6.23 $3.17

  • 10 Cost $9.62 $17.5 $3.17

  • 100 Cost $61.43 $130.1 $3.17

  • UPS Online offers the potential for dramatic savings for its customers.


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Pricing transportation of the document over the Internet.

  • Volume Based Discounts within North America

  • Monthly Transactions Dossier Courier

    • 1-99 $7.00 $2.50

    • 100-299 $6.30 $2.25

    • 300-999 $5.60 $2.00

    • 1,000-over $4.90 $1.75

  • Volume Based Discounts outside North America

  • Monthly Transactions Dossier Courier

    • 1-99 $12.00 $4.75

    • 100-299 $10.80 $4.30

    • 300-999 $9.60 $3.80

    • 1,000-over $8.40 $3.30


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Benefits comparison transportation of the document over the Internet.

  • Method Drawbacks Doc X Solution

  • Overnight Time consuming prep. No printing, copy, stuffg. Missed pickups No cutoff time

  • Internal delivery delays No middleman

  • High cost/based on wt. Less expensive, based on file size.

  • Fax No security/confidentiality Document security

  • Poor quality Original quality material

  • Productivity loss Rapid in time transit

  • Calls to confirm receipt Receiver confirmation

  • Document tracking.


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Vs. Email transportation of the document over the Internet.

  • Email Drawbacks Doc X Solution

  • Unreadable versions Reader/translator

  • Unpredictable Scheduled Delivery

  • Untrackable Document tracking

  • Security dangers Identity validation

  • Encryption

  • Instant desk to desk.


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The History of UPS transportation of the document over the Internet.

  • Founded by Jim Casey in 1907.

  • Messenger delivery by foot, car and bicycle.

  • Established ‘common carrier’ services throughout US by 1975.

  • Airline deregulation in 1978, overnight services in 1982.

  • Corporate legacy: Emphasis on internal promotion lack of IT expertise.


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The Strategy of UPS transportation of the document over the Internet.

  • Is it to follow FedEx’s lead?

  • Or to meet customers’ needs to gain a competitive advantage through technological and global expansion


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UPS’ Strategy to Launch DX transportation of the document over the Internet.

  • Establish partnerships with major technology companies (technical knowledge, shared development costs, brand-name recognition)

  • Partners develop technology (history of well-managed partnerships, Danzas)

  • Market with UPS label and through alliances with suppliers of ERPs, Internet services, e-mail services, PCs

  • Move faster than competition


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Why DX fits with UPS’ strategy? transportation of the document over the Internet.

  • Satisfies customer need (fast, secure small document delivery).

  • Technology development through partnerships.

  • Some global impact (especially through OnLine Dossier).

  • But does it provide UPS with a competitive advantage?


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Does DX provide UPS with a competitive advantage? transportation of the document over the Internet.

  • Improve customer service

  • Decrease overhead and logistics for 288,000 packages

  • Builds customer relationships

  • Improve technical knowledge and reputation in conjunction with business and e-commerce solutions


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The Competitive Environment transportation of the document over the Internet.

POTENTIAL

INTERNAL

RIVALRIES


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UPS works with suppliers & partners transportation of the document over the Internet.

They provide technology

They help UPS gain market access that UPS lacks.

But some of these partners are positioned to compete with DX.

Potential Internal Rivalries


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Qualcomm & iName - makers of e-mail software that will include Exchange.

Mindspring - Internet service provider.

Compaq Computer - will include Exchange on its computers.

VeriSign, Inc. - will provide digital certificates for Exchange

Adobe systems Inc. - will provide software to enable users to display & print documents in their original form


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NetDox, Inc. & Tumbleweed - two leading providers of secure digital delivery solutions. But these two partners also offer potential competition!


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NetDox offers a potential competition. digital delivery solutions.

DoxIt offers:

Global reach

Ability to transmit any digital file - text, graphics, audio

Authentication of sender and receiver identities

Highest level of encryption allowed by law


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Notarized audit trail digital delivery solutions.

Verification reports to verify: Sender, recipient, time, date of delivery, and message contents

Financial guarantee up to $100,000 per transaction

Pay per use - no up front costs

Works with current system infrastructure



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Tumbleweed offers a service called Posta 2.0: Netdox simply compete with UPS?

This system offered to Posta Service Providers (PSPs) that include (not exclusively) UPS

Posta 2.0 uses hardware and software components from Sun Microsystems to allow more concurrent users and faster delivery.


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The Competitive Environment Posta server software can be installed across a cluster of servers to increase performance.

POTENTIAL

INTERNAL

RIVALRIES

OUTSIDE

COMPETITORS


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The United States Postal Service will offer a competing product called Post Electronic Courier Service (“Post E.C.S.”).

Outside Competitors


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Post E.C.S. is not yet available product called Post Electronic Courier Service (“Post E.C.S.”).

will deliver documents with differing levels of security from secured SSL or PCT internet connections to optional RSA file-encryption on the Post E.C.S. server.

will allow recipients to read any document regardless of the software applications used.


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With iSend, you can pay as you go with per transaction pricing, or through a monthly subscription, which allows you to pre-pay for a number of packages at a reduced price.

If you opt for pay as you go, you pay $1.00 per package plus $.50 for encryption, $.50 for password protection, $.50 per additional recipient and $.25 for confirmation.

The monthly package entitles users to 20 packages for $19.95.


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pricing, or through a monthly subscription, which allows you to pre-pay for a number of packages at a reduced price.“FedEx, which has more than 40 per cent of the world’s courier market, is not planning to introduce a digital fleet. ‘There is no customer demand for such a service,’ it says. ‘Most companies are satisfied with their own ISPs and e-mail systems.”

-Financial Times (London), June 26, 1998


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The Competitive Environment pricing, or through a monthly subscription, which allows you to pre-pay for a number of packages at a reduced price.

POTENTIAL

INTERNAL

RIVALRIES

OUTSIDE

COMPETITORS

SUBSTITUTES


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SUBSTITUTES pricing, or through a monthly subscription, which allows you to pre-pay for a number of packages at a reduced price.

  • There are alternatives to pay-per-use digital document transfer including

    • devices that scan and encrypt documents for internet transfer and

    • encryption solutions for web-based e-mail.


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Hewlett Packard’s 9100C Digital Sender is a desktop sending device.

It enables users to digitally send paper documents to an Internet e-mail address, fax number, JetSend technology-enabled device, network printer or personal computer.

The 9100C retails for $2,999


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Netscape Communicator currently allows users to download digital certificates to encrypt their e-mail for free!

Doesn’t offer the same level of encryption.

Doesn’t insure delivery

Doesn’t integrate universality like DX does


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Conclusions digital certificates to encrypt their e-mail


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Where does DX fall on a 2x2 matrix of Functionality vs. Technology?

  • We conclude that existing solutions should be reinforced rather than opting for DX.


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YES Technology?

High sales forecast (31% of packages over Internet by 2000)

Inevitable progression for courier business

Gives customers faster, cheaper document delivery

Less infrastructure costs for UPS

NO

UPS adds nothing but its brand name equity to the process

UPS cannibalizes its own sales with the venture.

There are better solutions than the one UPS offers.

Is it a promising business?


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Other problems: Technology?

Low barriers to entry for other competitors

Demand will have to be built up and trust issues overcome.


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We conclude that UPS will not add to the Technology?value chain of its customers through DX more than lower-cost substitutes.

Customers would be better served by augmenting existing e-mail (along with attachment features) with digital certificates for encryption.

Possible Solutions

Sell an integrated software solution

Provide flat rate for use of secure server to transfer documents

Provide Document Management (add value).


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Strategies for the future: Technology?UPS and Document Management


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Document Management Technology?

  • Technologies used to manage distributed documents, disseminate information and input and retrieve documents (imaging).

  • It’s the integration of imaging, workflow, groupware and other technologies.

  • Why? Integrate UPS into value chain

  • In 1998, the electronic document management market totaled $2.9 Billion


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The Integration of Information: Technology?

additional markets for UPS?


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The students referendum: Technology?Will UPS succeed?


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