The first technology I will be analyzing is the DIAD. The Delivery Information Acquisition Device (DIAD) was first introduced in 1991 by the United Parcel Service (UPS) and was manufactured by Symbol Technologies, Inc., and had an enormous impact on the package delivery business. The DIAD is a hand-held computer weighing approximately 2.5 lbs that allows UPS delivery drivers to collect and transmit shipping information using GPS technology. The device allows customers to sign for their delivery on its screen, using a special pen that the device recognizes, eliminating the need for papers and clipboards. The DIAD also provides shipment visibility, which not only helps the drivers but also allows the customers to track their shipments and deliveries.
The introduction of the DIAD benefited UPS in many ways. UPS was having trouble competing with other major contenders in the industry such as FedEx and other carriers that could provide overnight service and also had the ability to track their orders en route. Not only did the DIAD give UPS the competitive advantage it needed but it also helped eliminate errors that occurred in the signing process. According to UPS CEO Kent Nelson, “The elimination of illegible signatures nearly triple the number of error-free, next-day air deliveries”. The DIAD’s ability to display address information, estimated delivery times, package counts, shelf locations and navigation information made the entire delivery process much more efficient. The drivers are now able to receive delivery confirmations, address corrections and pickup requests all en route!
Although the deployment of the DIAD has increased efficiency in the shipping business and has become a fundamental part of how UPS does business, there are several disadvantages. From the driver’s perspective, this device equipped with GPS technology offers increased efficiency and convenience, all in exchange for privacy. One of the main perks to being a delivery driver, on the road all day, is the freedom that comes with it. Not only can the DIAD track all orders but it also tracks all drivers! The UPS dispatchers can locate the exact locations of all drivers at the push of a button. Every driver starts their day by automatically logging into the GPS system, which enables the dispatchers to track them through their DIADs throughout the day. Another disadvantage to this wireless, technological innovation is that like all emerging technologies on the market, they require constant monitoring and frequent repairs. Unlike the standard pen and paper method, these devices break down, the wireless signals get lost, and computer glitches constantly invade the systems. Once a business decides to get involved with technology, and with IT applications, they must be committed and must invest in constant upgrades and in researching the newest equipment on the market.
In the long run, entering the world of technology will have many positive results for an organization; however, the short-term will bring the high costs of innovation and cutting-edge technology. The DIAD has definitely increased UPS’s efficiency in delivering packages and has made UPS a more profitable, competitive business. However, the costs of reaching that point were extremely high, to outfit each and every driver with a hand-held computer. Now even though UPS incurred high expenses in the beginning to introduce this device and still must assume the costs of maintaining and upgrading their technology, they now eliminate the use of 59 million sheets of paper per year, helping the environment, and have “assumed a leadership role in global wireless networking”, growing into a $42.6 billion corporation.
Schwartz, Tamara. “UPS Steps up Global Wireless Networking”. Wireless Business & Technology, Jan. 1, 2000.
<http://72.14.205.104/search?q=cache:A7hC2IeOQawJ:wbt.sys-con.com/read/41213.htm+UPS+DIAD+cons&hl=en&ct=clnk&cd=1&gl=ca>
“Fact Sheets: The UPS Delivery Information Acquisition Device (DIAD IV)”
<http://pressroom.ups.com/mediakits/factsheet/0,2305,1077,00.html>
“The Wizard is OZ”. Chief Executive: Business and Industry, Mar. 1, 1994.
<http://www.thefreelibrary.com/The+wizard+is+Oz-a015271754>
<http://www.ups.com/>
No comments:
Post a Comment