Question

Subject: Innovation and technology management

Case 1: Use of Technology

Federal Express (FedEx) was founded about 50 years ago. It handles on an average of 3 million package-tracking requests on a daily basis. To remain ahead of its competitors, FedEx strives on customer service by keeping a comprehensive website, FedEx.com. It increases customer service and reduces costs. For example, each request for information which can be retrieved from the website rather than by the call centre help FedEx to save an estimated $1.87. The costs for FedEx have been reduced from more than $1.36 billion per year to $21.6 million per year by customers using the website instead of the call centre calculating each package-tracking request costs Federal Express 3 cents.

Another know-how that improved its customer service is Ship Manager, an application installed on customers’ sites so users can determine shipping charges, weigh packages, and print shipping labels. Customers can also tie their invoices, billing, accounting and inventory systems to the application, Ship Manager.

Nevertheless, Federal Express still spend almost $326 million annually on its call centre to reduce customers’ annoyance when the website is down or when customers have difficulty using it. It uses CRM software called Clarify in its call centres to ensure customer service representatives’ job easier and to speed up response time.

Answer the following questions:

a)     What is the importance of technology to ensure high-quality customer service?

b)    Can you estimate Federal Express’ annual savings from using information technology?

c)     Can you give a few examples of information technologies used by Federal Express?

d)    What is the role of the application ‘Ship Manager’?

e)    Your overall observations and learning from the above case study.

Answer 1

(a) Technology plays an important role in delivering high quality and quick response services to the customers or the users.

By using websites of the company customers can easily track their packages and get complete information about the products and its shipping details . User become more independent rather then rely upon the call centres of the company for quick response.

(b) Fedex save $1.87 anually by launching its website and reducing the use of call centres.

(c) Technologies used by FedEx are:

• Website FedEx.com is a comprehensive website that is used to reduce the cost and increase the customer services.
• ShipManager is an application that is used by the customers to track the details of their packages , weigh packages, print shipping labels.
• CRM software Called CLARIFY has been used in Call centres for the representatives in order to speed up their process to response to the customers.

(d) By using Ship Manager Application customers or users determine the

• shipping charges
• weigh packages
• print shipping labels.

Customers can also tie their invoice, billings ,accounting and inventory systems.

(e). The observation from the above case study of FedEx shows that the technology or information technology plays an important role in the development of any business stratgies.

Fedex saves $1.36 billion per year to $21.6 billion per year by using its E commerce website FedEx.com. The software Clarify also play an very important role in order to enhance the quick response to the users query as well as They provide best services to their customers by ShipManager application provides at the user end to get complete details of packages and tracking of packages.