Please answer the case 1 questions.

Closing Case 1 POM The United States Postal Service Utilizes Information A Variety of Solutions Technology to Modernize To address these problems, the USPS is implementing a variety of solu- The Problems tions. The agency is redesigning its mail-tracking system to encode as Every American is a customer of the United States Postal Service (USPS; much information as possible on its letter and parcel bar codes with its Intelligent Mail bar code (IMB) system. The IMB uses automatic www.usps.gov), an agency that delivers 158 billion pieces of mail per scanning devices and sorting equipment to scan bar codes to capture year. Despite its importance to U.S. citizens, however, the agency faces billions of data points and transmit them to a central database. Data multiple challenges, including: range from the type of mail being delivered to a parcel's final destina- . Electronic mail has contributed to a decrease in the volume of tion. The IMB enables the agency's postal processing facilities to oper- first-class (or stamped) mail. This decrease has led to a decline ate more efficiently. in USPS revenue. In addition to supporting this real-time responsiveness, the USPS is also using data to enhance mail delivery. Accurately tracking how mail Another cause of declining revenues is competition from private moves around the country, from the moment a delivery vehicle arrives delivery companies like FedEx (www.fedex.com) and UPS (www. at a dock to the second a letter reaches a delivery point, provides the ups.com). These businesses are taking customers away from agency with massive amounts of data. Data analytics enables the USPS USPS's package delivery service while sometimes relying on the to develop dynamic routing-the use of sophisticated algorithms to agency for last-mile delivery. Last-mile delivery is the final and map out the most efficient and cost effective mail delivery routes. typically most expensive leg of a delivery route. In addition, mobile computing is driving innovation at the USPS. . Other companies are also developing services that could disrupt The agency has been replacing letter carriers' cellphones with mobile the USPS's parcel delivery service. For example, Matternet (http:// delivery devices (MDDs). These handheld devices access multiple mttr.net), Amazon (Amazon Prime Air), and Google (Project Wing) wireless networks to track parcels in real time. In addition, the MDDs have developed unmanned aerial vehicles, or drones, that can provide the USPS with location data from its delivery vehicles. This deliver packages and letters process helps the agency to ensure its employees' safety, predict deliv Transportation has long been the essential skill at the USPS. Nev- ery times, and pick up urgent materials from its customers. ertheless, the agency has approximately 160,000 delivery vehi- In the fall of 2014, the agency introduced an augmented reality cles that are 20 years old and need to be replaced. technology designed to convert standard print ads into interactive In contrast to transportation skills, digital technology has not been experiences. The system enables consumers to use a free Android or an essential skill at the USPS. One major example that illustrates 105 app to view digital presentations when they scan special icons that this problem occurred in November 2014, when the USPS became a marketers attach to advertising brochures sent through the mail victim of a cyberattack that threatened to put the names, address- In November 2013, Amazon entered into an arrangement with the es, and social security numbers of 800,000 of its employees at risk. USPS to deliver packages on Sundays in select cities. The partnership created an opportunity for the USPS to establish a stronger foothold in Further, USPS efforts to utilize cloud computing to reduce costs the growing package-delivery market. Consequently, its package reve- have raised concerns. In September 2014, the USPS inspector general (IG) nue increased 12 percent from 2012 to 2014. criticized the agency for not properly controlling applications in its cloud In response to the Inspector General's criticisms regarding environment with regard to information accessibility and data security cloud applications, the USPS is utilizing the Federal Cloud Credential The USPS has long recognized these problems, and it has tried to Exchange. The exchange is a cloud-based clearing service that acts as introduce cost-saving measures. However, even though the agency is a hub for validating the digital credentials of people who want access part of the executive branch of the federal government, Congress has to online government services. As a result, the Exchange also provides enormous power over it. (The USPS is not funded by taxpayers.) Specif- a high level of security for USPS applications running in the cloud ically, Congress has rejected proposals to eliminate Saturday delivery And the largest missed opportunity for a possible solution? If of first-class mail, and it has prevented the USPS from consolidating federal privacy guidelines allowed the practice, the USPS could use little-used post offices in rural areas. These moves would have helped the IMB to help retailers and catalog companies create successful the agency reduce costs. Congress has also required the USPS to make marketing campaigns. Consider a retailer that receives an e-mail or a regular payments into its future retirees' health benefits, a mandate text message alert from the USPS that a particular customer has just that imposed financial burdens on the agency. received the company's catalog. The retailer could immediately e-mail The USPS also has massive amounts of data on every piece of the customer a digital coupon or a promotional offer in an effort to mail exchanged among millions of Americans as well as the companies drive sales and enhance the overall customer experience. that sell to them. However, the agency must meet the privacy statutes The Results that apply to federal agencies. As a result, the agency cannot sell its data to businesses to help them better target consumers and therefore The CIO of the USPS notes that information technology has become a increase sales revenues. core function within the agency. That is, IT is no longer a cost center. And the result of these numerous and diverse problems? Despite Instead, it adds essential value to the organization. However, the suc- taking measures to reduce costs, such as closing processing centers cess or failure of these diverse initiatives remains to be seen. That is, and reducing employee working hours, 2015 was the USPS's ninth con- can the USPS stop losing so much money each year, or at least slow secutive year of losses. the hemorrhage? Closing Case 2 31 Sources: Compiled from D. Leonard, "From: Postmaster General; 10, 2013; W. Jackson, "USPS Set to Put Federal ID System to the Test," To: Amazon," Bloomberg BusinessWeek, August 3-9, 2015; S. Tracy, GCN.com, August 22, 2013; www.usps.gov, accessed July 14, 2015. "Autonomous Vehicles Will Replace Taxi Drivers, but That's Just the Beginning," Huffington Post, June 12, 2015; "Intelligent Mail Barcode Questions for Mailpieces," United States Postal Service, May 4, 2015; S. Edelstein, "U.S.P.S. "Long Life' Vehicles Last 25 Years, But Age Shows Now," Green 1. Provide specific examples of how information technology is nega- Cor Reports, February 17, 2015; J. Williams, "Heading into 2015, USPS tively impacting the USPS. Looks to Tech to Reshape Model," fedscoop, December 31, 2014; C. Waxer, 2. Provide specific examples of how information technology is posi- "Digital SOS: How Technology Can Save the USPS," Computerworld, tively impacting the USPS. December 8, 2014; C. Waxer, "Modernizing the Mail," Computerworld, December, 2014; J. Williams, "USPS Cloud Systems Don't Comply with 3. Describe how information technology both positively and nega- Established Standards, OIG Says," fedscoop, September 10, 2014; M. tively impacts your university. Ashley, "Why Amazon Locker Is Better Than Home Delivery," TechHive, 4. Is it possible to generalize and describe information technology as July 28, 2014; "U.S. Postal Service Parcel Delivery Lockers," Office of Inspector General, United States Postal Service; December 2013; J. Edgar, a "two-edged" sword for all organizations? Why or why not? "How Technology Is Changing the USPS," The Wall Street Journal, October