• Developed an efficient IT Strategy for USPS to reduce costs, increase profits and improve customer outreach
• Introduced technological advancements that can improve the time efficiency and increase productivity of the business
Emergent Methods: Multi-lingual narrative tracking in the news - real-time ex...
United States Postal Service IT Strategy
1. United States Postal Service (USPS)
Team 2:
Akshay Mulay
Xiting Wang
Wenpei Wang
Balaji Katakam
Swapnil Panchal
Jiancheng Zhao
Jianjie Gao
Under Guidance of Professor Michael Parfett
Stevens Institute of Technology
MIS 760 – B
IT Strategy
Fall 2017
2. Agenda
• Summary & Introduction
• Corporate Strategy
• Business Service Unit Strategy
• IT Strategy
• Digital Strategy
• Data Strategy
• IT Service Design
• Technology Road Map
• Business Models
• Functional Strategies
• Financials
• Operations
• Implementation Strategy
• Measurement and Metrics
• Issues
• Conclusions
Swapnil Panchal
4. Executive Summary
What are we doing?
•USPS is an independent agency monitored by United States Federal
Government responsible for postal service in the United States
•The organization is currently dealing with decreasing customer-base
due to inefficient package delivery due to different factors.
•To counter this deficiency, we have developed an IT strategy that
proposes advanced customer management model with transparent
real time package status.’
•Using better tracking systems, self insured shipment, competitive
pricing, paced deliveries and broadened customer base.
Swapnil Panchal
5. Introduction
Company Background
•USPS (also known as U.S. Mail, Post Office or Postal Service) providing
postal service in United States, insular areas and associated states.
•One of the few organizations which is explicitly authorized by United
States Organizations.
•Founded in 1775 during Second Continental Congress, Benjamin
Franklin was appointed as the Postmaster General.
•Third-largest civilian employer in the United States.
Swapnil Panchal
8. Size, Growth Rate, Outlook
•1775: Established as independent organization and Benjamin Franklin was
appointed as the Chief Postmaster General by Continental Congress
•1994: Postal Service launched public internet site
•2008: Competitive Pricing for expedited mail began
•2012: GoPost® and MetroPost™ tested
•Employs 617,000 employees making it the 3rd largest U.S. Civilian Employer
Swapnil Panchal
12. Corporate Strategy
Mission, Vision, Objectives, Value-Statement
Bind the nation together by providing universal
delivery service
Postal Services that Customers Value in a Digital
Economy
Attain 4 goals: Deliver, Equip, Innovate and Invest
Understand Customer Needs, Provide more visibility,
Transform Existing Mailer and Shipper Experience
Mission
Vision
Objectives
Value-
Statement
Swapnil Panchal
15. Business/Service Unit Strategy
• Understand Changing Customer Needs and Market Trends
• Provide More Visibility and Control of Mail and Package Delivery Services
• Transform the Commercial Mailer and Shipper Experience
• Improve Retail Experiences and Expand Digital and Alternative Access
• Enable a Seamless Cross-Border Experience for Customers
• Build a World-Class Customer Care Process
• Increase Customer Engagement Through Social Media
Swapnil PanchalMission, Vision, Objectives, Value Statement
17. Mission
Wenpei Wang
● USPS would try to use the advanced tracking technology for locating the
packages.
● Reducing the cost and saving the time for raising the customer experience.
● Optimizing the transportation algorithm for faster delivery.
Vision
By taking the latest technology and faster delivery for being the market leader.
18. Objectives
Wenpei Wang
Chip based package: To use this kind of GPS built-in
package could easy track the accurate location of your
goods, and the chip would automatically calculate the
remaining delivery time. In addition, this package can be
used for more than hundreds time and it would potential
reduce the cost.
Drone delivery: Taking advantage of the drones to deliver for
reducing the labor cost. Amazon has been tested this new
method for delivery.
19. Objectives
Wenpei Wang
Routes analytics-Big data:
Collecting tons of routing data and saving into database for exploring
the potential benefits. Through researching the data, a best route would
be created and it including the duration, transportation method and
cost, etc.
IBM Watson:
It is a question answering computer system capable of answering
questions posed in natural language, which can be used as customer
support to reduce the number of human representatives for resolving
issues faster.
20. Value Statement
Wenpei Wang
● By applying the latest technology for increasing the efficiency of USPS delivery.
● Faster delivery for saving time to customer and obtaining deserved reputation
for USPS.
● Great reputation would take potential profits and occupy more market share in
delivery industry.
21. Definition of the IT strategy
Wenpei Wang
Sales increase
&
More customer base
Latest tracking technology
Drone delivery
Optimizing routing algorithm
22. Mintzberg’s 5 P's strategy
Wenpei Wang
Plan
Optimizing logistics
algorithm
Chip based
package
Drone delivery
Perspective
Increasing the customer
base
Faster delivery and
lower cost
Pattern
Technology leader in
delivery share
Great reputation around
the whole industry
Position
Most well-known
delivery company
New technology
explorer in delivery
Ploy
Keep using the latest
technology for saving
time and reducing the
cost
Maintaining the leading
place in market
23. Alignment with Corporate and Business/service unit
Wenpei Wang
● CEO needs to understand and support the CTO to implement IT strategy for applying the new ways to
increase delivery performance.
● Also, CTO have to issue a blueprint for technology deploy and keep tracking the specific process.
● Always researching the customers satisfaction for delivery service. It will have a significant impact for
clients loyalty in future development.
● Technology department should keep the latest methods can be applied for delivery. Like the humanoid
robots expected for employed by 2025.
● Business department needs to estimate the market in advance. Earlier information would help the
technology department to apply the suitable and optimizing method for business.
24. Implementation
Wenpei Wang
Vision and
strategy
Customer Perspective
Focusing on the people who prefer fastest delivery.
Offering great service and tracking info for pleasant
experience.
Internal Perspective
Reducing delivery time for more efficiency and profits.
Earning the good reputation in delivery industry.
Learning Perspective
Using the new technology for delivery and encourage
the staff to innovate more methods.
New technology would bring competitive advantage
than other delivery companies.
Financial Perspective
Income increasing and stakeholders can share more
benefits.
26. Five principles for delivering value
Wenpei WangPrinciple 1: Have a clearly defined portfolio value management process
Budget control for technology investment
Principle 2: Aim for chunks of Value
Getting feedback from customers after they received the faster package.
These comments would guide to optimize the next strategy.
Focusing on large online retailer as the potential customers.
Principle 3: Adopt a holistic orientation for technology value
Enlarging the technology investment for competitive advantages.
More robots deployed can reduce human cost for lowering the whole budget.
Integrating transportation algorithm with machine learning to save time and cost.
Principle 4: Aim for joint ownership of technology initiatives
Building the mutual trust between technology and business.
Principle 5: Experiment more often
Testing the security of drone and stability of chip based package at fixed periods.
Measuring the algorithm for the routes accuracy to ensure lower cost and less duration.
27. Digital strategy
Wenpei Wang
Big data for analyzing the best routes:
Collecting the delivery method, time, date, package weight, duration for further analysis to optimize the
best route
Tracking packages:
Using the mobile app to track the detail information about package
Drone delivery:
Taking advantage of the drones for faster processing and shipping to save the time and raise customer
experience
IBM Watson:
Computer based system can reduce the number of human service cost and can process any issues in short time.
28. Business improvement and competitive advantage
Wenpei Wang
Saving the cost:
Best routing by transportation algorithm would save time and cost for delivery. IBM Watson also replace
human service with computer processing for less expenditure.
Technology innovation:
More technology applied would trigger more people and fund to push the technology innovation.
Fastest way to delivery:
Using the drones to deliver goods would ensure the customers can get their packages within 30 minutes
after they placed the orders.
Income increasing:
Faster way deliver would obtain the better reputation, and it will transfer to potential benefits.
Great reputation:
Faster delivery and easier tracking means fantastic customer experience. It would bring potential
influence and well-known reputation in the delivery industry.
36. Improve the Customer Experience
Jianjie Gao
- Be transparent
- Perform consistently
- Complaints: delay, lost or no reply.
- Analyze and study clients
- Using social networks for one-to-one response as well as
public reply
- Network effect
- A vocal customer can reach over 1,000 people
- Build trust
37. Business Intelligence
Jianjie Gao
- Offer better service delivery, particularly during high
volume seasons
- Reduce costs, such as those incurred from under
utilization of contracted services
- Enhance overall competitiveness
- Public cloud could help reduce cost, improve
operations, and strengthen the security and
resilience of data source.
- IBM Watson will help us optimize the cost for
customer relationship management.
- Route optimization will reduce the delivery time
and shipping cost.
“There is no lack of postal data —
it is already big,” Mohammad
Adra, assistant inspector general
for the Risk Analysis Research
Center at the USPS OIG Office,
said. “Let’s start to address the
imbalance between the plethora of
data and the paucity of analysis,
and extract value out of it.”
38. Compliance Impacts and Needs
Jianjie Gao
The Postal Service exercises due care in ensuring all personnel and contractors working on its
behalf are in compliance with information security policies and associated standards and
procedures as defined by the Postal Service. Additionally, the Postal Service monitors, reviews,
and properly mitigates all instances of noncompliance throughout the organization using processes
that include, but are not limited to, the following:
a. Regular testing of security systems and processes.
b. Vulnerability scans.
c. Inspections, reviews, and evaluations.
d. Monitoring.
e. Audits.
f. Confiscation and removal of information resources.
g. Information security compliance training.
The importance of compliance with government and industry regulations and standards is to
prevent data breaches, loss of reputation and customers, fines and lawsuits.
39. Suppliers and alliances
Jianjie Gao
- USPS purchases five categories or portfolios: Commercial Products &
Services, Facilities, Mail & Operational Equipment, Technology
Infrastructure, and Transportation.
- Past performance evaluation factors include:
- Quality
- Timeliness of performance
- Business relations
- Cost control
- Solicitation Provisions define
requirements for suppliers and
alliances.
- Section 2 considering Evaluation
- Section 4 defines IT requests
41. Risk Management
Jianjie Gao
Risk management comprises five steps:
1. Identification — search for and locate risks.
2. Analysis — transform risk data into decision-
making information.
3. Response planning — translate risk information
into executable plans and actions.
4. Tracking and control — monitor risk indicators
and take corrective actions.
5. Reaction — implement risk actions in response
to actual risk occurrence.
42. Risk Management-Aspects
Jianjie Gao
1. Financial Risk
a. Vehicle cost
b. Cost of each mail
2. Strategic Risk
a. Network Adjustments Cause Performance,
Service Challenges
b. Processing Efficiency Vital to Package
Volume Growth
c. Information Technology- data source
d. Risk on International Mail
43. Information Resource Risk Management
The risk assessment must be completed in conjunction with system development. Additional risks may be
identified in each of the life-cycle phases as development progresses through requirements definition,
design, coding, testing, and production. The risks must be re-assessed and the risk assessment report
updated as follows:
● Every year for a payment card industry information resource.
● After a significant audit finding.
● Whenever the information resource experiences significant enhancement or modification, including
changes to the infrastructure, operating system, or hardware platform.
● After an information security incident that violates an explicit or implied security policy and
compromises the integrity, availability, or confidentiality of an information resource.
● Every 2 years for sensitive-enhance, sensitive, critical high and moderate, and externally facing
information resources as part of the recertification process unless an earlier re-assessment is
warranted.
● Every 3 years for nonsensitive and noncritical information resources as part of the recertification
process unless an earlier re-assessment is warranted.
Jianjie Gao
44. Communication
- We will be increasing the awareness of USPS’s advantages over its
competitors.
- There will be multiple hoardings set up over major highways that
will be portraying the USPS edge.
- The current customers will receive extra discounts for loyalty.
- There will be some good deals offered to new customers.
Jianjie Gao
46. PROFESSIONAL ASSESSMENT
OPPORTUNITIES
• Increase of e-commerce
business
• Competitors pricing structure
• Getting additional funding if
needed
STRENGTHS
• Government Funding if needed
• On-time delivery
• Introduction of new technology
• Faster processing and service
with help of new technology
WEAKNESS
• Increased Operating Expenses
• Decline in single-piece first class
mail
• Large volume of Data
• Increasing Complexity of
Algorithms as data volume
increases
THREATS
• Competitors such as Fedex and
UPS
• Workforce resisting the change
• Data Breach and Security of the
Data
SWOT Analysis Akshay Mulay
47. PROFESSIONAL ASSESSMENT
MARKET DEVELOPMENT
• Looking to provide services
internationally
• Investing in technologies to
manage data both domestically
and internationally
DIVERSIFICATION
• Innovating the delivery services
with humanoid robots and
drone deliveries
• Investing in Research and
Development
MARKET PENETRATION
• Reliable and a cost efficient
service
• Variety of options available to
send mail or packages
PRODUCT DEVELOPMENT
• Use of IBM Watson and Routing
Algorithms to make delivery
efficient
• Tracking devices for real time
tracking of a shipment
ExistingMarketNewMarket
New ProductsExisting Products
ANSOFF Matrix Akshay Mulay
48. Porters 5 forces
1. Rivalry Competition : High
Competitors Delivery Process and Brand Value
2. Threat of New Entrants : Low
It is difficult for new entrants to earn a reputation and customers are less likely to select for the new delivery companies
3.Bargaining Power of Buyers : Moderate
Customers like Amazon and Target will select the service depending upon the flexibility of shipping and cost
4. Bargaining Power of Suppliers: Low
USPS maintains a good relationship with suppliers and the suppliers are valued with proper business principles
5.Threat of Substitute Products: Moderate
Companies like Amazon and Staples are considering drone delivery system on their own
PROFESSIONAL ASSESSMENT
Akshay Mulay
49. Business Strategy AS-IS TO-BE
Business scope -Currently serves United States of
America
-Look to expand internationally
Business Governance -Constitutes 11 member board
comprising of 9 Governors, 1 Post
Master General and, 1 Deputy Post
Master General
-More Power and Decision Making
Role for Operational Managers
-Improve Headquarters and Area
Staff Coordination
Distinctive Competencies - Mail Processing Centers
- Customer Satisfaction
- Become Leaner, Faster and
Smarter Organization
Akshay Mulay
50. Business Infrastructure AS-IS TO-BE
Key Processes - Shipping
- Mail Acceptance
- Tracking Systems
- Highly focused, Data Driven
technology to reduce mail
processing
- Streamline and Automate
shipping process
Organization Structure -Board of Governors including
Postmaster General and Deputy
Postmaster General
-Empowering employees and
regional managers
Akshay Mulay
51. IT STRATEGY AS-IS TO-BE
Technology Scope Data driven technology and
Automation
Use of Advanced Algorithms and
Systematic Competencies System Availability and
performance
Support Global Activity
Governance Performance management
value delivery
Radical Alignment with Business
Architecture Leveraging existing infrastructure Improve the automation of
packaging and sorting of shipments
Key Processes Reduced Mail Processing Optimal Algorithms and
Applications to reduce shipping time
Human Resources -Great workforce to create fabric
technology
-Create better working environment
for workers
Akshay Mulay
Akshay Mulay
52. Market Analysis and Demand
• Customer : USPS has customers ranging from an household individual
to certain government entities and also the private companies like
Amazon and Target for shipping mails and packages
• USPS provides International and Domestic Mail, Priority Mail and First
Class Mail
• Every Door Direct(EDDM) mail requires demographic accuracy and
providing a EDDM at a reasonable price is a challenge
• USPS coordinates with a number of small distributors and suppliers
to buy products and ensures timely, efficient delivery of shipments
Akshay Mulay
53. Target Market
• Our main goal is to target customers from every segment
• Main targets are the e-commerce websites
• These customers can help us increase our delivery usage across the United States
and we will help them curb over their costs.
• This will help us create a profit that can be invested for further IT development
and research
• USPS® Every Door Direct Mail® (EDDM®) is an affordable targeted advertising
technique that lets you map your marketing mail audience by age, income, or
household size. You can use the EDDM mapping tool to choose the ZIP Code™
and carrier route that will target your best possible customers—current and
future. The EDDM mapping tool is easy to use and discounts are available even
for small businesses.
Akshay Mulay
54. BCG Matrix
STARS
E-commerce and Online Diversification
QUESTION MARKS
First Class Mail
CASH COWS
Advanced Tracking System and Same Day
Delivery
DOG
Bills received in Mail
HIGH CASH GENERATION LOW
RELATIVE MARKET SHARE
MARKETGROWTH
RATELOWCASHUSAGEHIGH
Akshay Mulay
56. Identify areas of improvement
Analyse how they can be improved
Provide IT Based Solution
Create a plan of execution
Develop IT Based Solution
Test IT Solutions
Gather feedback based on this IT Solution
Improve the solution if it faces any issues
Deploy the IT Solution
Stages of IT Service Design
Balaji Katakam
58. Productivity
We have introduced advanced routing and scheduling algorithm for
faster delivery
Implementation of IBM Watson Customer Support on chat based and call
based support which will provide more visibility and control of mail and
package delivery services
Innovation
Live tracking of packages
Drone based delivery
Humanoid based delivery
Productivity and Innovation
Balaji Katakam
62. Technology Road map
Routing
Xiting Wang
● Static Delivery Route
-Large cost
-Time consuming
● Dynamic Routing Optimization
-better respond to evolving requirements and
constraints, it requires a timely and accurate
feedback system
-e.g. Google Routing Algorithms
63. Technology Road map
Tracking
● Tracking between
each station
-Disadvantage: lost package
and hard to trace back
● Tracking Carrier
-Advantage: improve
delivery efficiency
-Disadvantage: the
problem of losing package
still not be solved
● Tracking Package
-Utilize GPS tracing the
package in real time
-Precisely control the
delivery time
-Easy to find lost package
Xiting Wang
64. Technology Road map
● vehicle
-Constrain by the
traffic condition
-Time consuming
● Drone
-Increasing delivery speed
-Delivery to poor infrastructure
● Robot
-Customize delivery
-Reduce environmental
problem
-Reduce the workload for
human
2025
Xiting Wang
Delivery
67. Delivery development
Cooperate with Google to optimize better routing system
Cooperate with drones companies to create new delivery method
Customer
Cooperate with large wholesale companies
Business Model Alignment
Xiting Wang
68. 1. Improve customer's experience
Better tracking system
1. Compete for the package business
Technology innovation
1. Become a leaner, faster and smarter organization
Provide easier and more convenient service
Business Strategy
Xiting Wang
70. Marketing Segmentation
All age
All gender
English speaking
Middle class or
lower
Demographic Geographic PackageCustom
Marketing
Segmentation
USA Safety awareness
Believe in the
government
All kind of package
Jiancheng Zhao
71. 4P'S
Product Advanced tracking technology
Price Low cost strategy
Place Focus on market within the US
Promotion Branding & Advertisement
Jiancheng Zhao
72. Customers Service
1) customer feedback
collection
2) respond to the
customers
3) do survey or buy
study among the
customers
Increasing the customer satisfaction
Jiancheng Zhao
75. Internal Jiancheng Zhao
Collecting the delivery method, time,
date, package weight, duration for further
analysis to optimize the best route
database system
faster processing and shipping to save the
time and raise customer experience
Drone delivery
increasing efficient
and reduce cost
process simplication
implement
tracking package
system
tracking
Lorem ipsum dolor
sit amet,
staff training
76. External Jiancheng Zhao
1customer survey
do customer survey
or buy study from
others
build up feedback
system and treat it
seriously
2refresh brand
awareness
let customers know
the difference from
before and our new
advantages
3promotion
popularize
impress and interact
with the customers
4further
development
stay with the fashion
and newest
technology
80. New Metrics
Customer Satisfaction:
With the introduction of IBM Watson for customer support we can have
24*7 Support and the live tracking feature for packages enhances the
customer experience leading to higher customer satisfaction rates.
Customer Profitability:
Advanced routing algorithms will help us reduce shipping costs thus
reducing costs for the customer.
Customer Loyalty:
We will be introducing additional discounts for our customers to turn them
into loyal customers leading to increased customer base.
Akshay Mulay
82. Government Regulations on Drone-usage might limit delivery parameters.
Eg. FAA’s Part 107 Drone Regulations
FAA’s Section 333 Exemption for Commercial Drone Operations
States, Counties, Cities, & Towns All Regulating Drones – Death by a Thousand Papercuts
Implementation of Automated Delivery needs special permissions.
Government Regulations and Policies (Political and
Legal environment) Balaji Katakam
83. IBM Watson for Customer Relationship Management
Google based routing algorithm which uses Artificial
Intelligence and Machine Learning to improve
delivery speed
Introduction of Chip based package tracking for live
tracking of packages
Machine based delivery :
1. Drone based delivery system
2. Humanoid based delivery system
Technology environment
Balaji Katakam
86. Environmental Management and Regulatory Compliance. The Postal Service uses a management systems
approach to identify and address existing and emerging environmental compliance issues and associated
impacts. We are subject to numerous federal, state and local environmental laws and regulations. As part of our
continuous improvement process, the Postal Service annually reviews facility risk assessment criteria to address
business, regulatory and environmental aspects and impacts. In 2013, the Postal Service applied new corporate-
level facility risk criteria to better manage risk mitigation resource planning.
Addressing root causes is part of managing and reducing overall environmental risks to our organization.
Environmental Recordkeeping. In 2013, USPS focused on streamlining and standardizing environmental records
management. To support this effort, we deployed a new environmental filing system to approximately 340 high risk
facilities. The system, which includes both electronic and hard copy record retention mechanisms, improves
compliance and reduces risk.
Compliance
Balaji Katakam
87. ● Prime competitors have always had a competitive advantage over
USPS, in terms of ease of delivery, greater customer satisfaction and
gradually increasing market area.
● The lack of accurate deliveries, efficient customer care center and
shipment misplacement are the hindrances which the USPS should work
on.
● On contributing with new technologies, these deficiencies can be
successfully overcome.
Conclusion
Swapnil Panchal
88. Recommendations
By adopting following measures, USPS may gain significant advantage:
• Advanced Algorithms: This would enable to trace out the most efficient
route to ship the package, benefitting both; the customers as well as
USPS
• IBM Watson: It would provide better customer interaction and acquire
knowledge using AI. This knowledge will be further exploited for
organizations betterment
• Chip-based GPS: Real time location of the package will help customers
to locate the accurate transit location of the shipment thereby
predicting actual estimated delivery time
• Collaboration with E-Comm Giants: Collaboration with Amazon, CostCo,
Walmart would complement USPS to increase market share
Swapnil Panchal
