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
Wednesday November 4, 1998
To convert288,000 worries into
288,000 business opportunities!
...UPS introducesUPS Document Exchange
Video Description ofUPS OnLine Dossier
The technologybehindthe UPS Document Exchange
We will focus on:
Before going into the details...
Into the detailsofUPS Document Exchange
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The marketing strategy
UPS works with suppliers & partners
They provide technology
They help UPS gain market access that UPS lacks.
But some of these partners are positioned to compete with DX.
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
NetDox, Inc. & Tumbleweed - two leading providers of secure digital delivery solutions. But these two partners also offer potential competition!
NetDox offers a potential competition.
Ability to transmit any digital file - text, graphics, audio
Authentication of sender and receiver identities
Highest level of encryption allowed by law
Notarized audit trail
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
UPS is only distributor for DoxIt. Why? Why doesn’t Netdox simply compete with UPS?
Tumbleweed offers a service called Posta 2.0:
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.
The Competitive Environment
The United States Postal Service will offer a competing product called Post Electronic Courier Service (“Post E.C.S.”).
Post E.C.S. is not yet available
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.
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.
“ “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
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
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
Where does DX fall on a 2x2 matrix of Functionality vs. 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
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.
Low barriers to entry for other competitors
Demand will have to be built up and trust issues overcome.
We conclude that UPS will not add to the 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.
Sell an integrated software solution
Provide flat rate for use of secure server to transfer documents
Provide Document Management (add value).
Strategies for the future: UPS and Document Management
The Integration of Information:
additional markets for UPS?
The students referendum:Will UPS succeed?