1. The Fruits of Our Collaboration: Quality, Speed and Satisfaction
Mark Colombo
Senior Vice President, Digital Access Marketing
FedEx Services
David Zanca
Senior Vice President, E-Commerce Technology

2. IT and Marketing are often a study in contrasts.
We’ve worked to transform those contrasts into collaborative
efforts. It’s a competitive advantage. Today’s customers are
mobile and super-connected .. so we gotta plug into those
channels. First, let’s play a little quiz. Everybody stand up … 2

3. remember to pick up eggs, milk & mt. dew
Audience Checklist
DOES NOT text message
DOES NOT conduct banking online
remember to pick up eggs, milk & mt. dew
DOES NOT have a social networking account
DOES NOT trade goods in the digital marketplace
Text message? Bank online? Linkedin or Facebook?
Buy/sell on eBay or Craig’s List? Blog?
Authored a Wiki entry? Belong to virtual world?
Game online? Twitter or online presence?
What if we asked your kids the same questions?
DOES NOT blog
DOES NOT author a Wiki entry
DOES NOT belong to a virtual world
call RBC
tomorrow a.m.
DOES NOT game online
DOES NOT use a presence device

4. Gen Y and Gen X are the Most Active Online Consumers who regularly use the Web for the following activities:
Gen Y (18-27)
Gen X (28-41)
Younger Boomers (42-51)
Older Boomers (52-62)
Seniors (63+)
Gen Y Index*
Use Web-Based
73%
65%
52%
50%
38%
1.3
Use Instant Messaging
56%
33%
25%
21%
17%
1.8
Send Photos by
41%
40%
27%
20%
Use Social Networking Sites
42% 7% 4% 1%
2.7
Play Online Games Alone
39%
31%
24%
1.4
Download Music
36%
22%
13%
2.1
Purchase Products
45%
28%
23%
1.0
Gen Y (18-27)
73%
56%
41%
42%
39%
36%
Gen Y – just entering the workforce – is connected.
Look at Social Networking usage, then download usage.
They buy no more online than anyone else. They live
in a connected fashion to interact and share information.
It’s not solely about commerce – it’s about presence.
36%
36%
Base:
U.S. Online
Customers
*Note: The Gen Y index represents the percentage of Gen Y consumers doing the activity divided by the average for all U.S. customers. An index of more than 1.0 represents an activity that Gen Yers do more frequently than the average customer, and an index of less than 1.0 means that Gen Yers do that activity less than the U.S. average. Source: Forrester Research

5. Engage the Net Generation as Customers and Employees
Workforce Mix by Generation
G.I. and Silent ( )
Baby Boomer ( )
Generation X ( )
Net Generation ( )
54%
51%
49%
48%
FedEx must to deliver exceptional digital
experiences so that this generation connects
with us as employees and customers.
38%
37%
28%
22%
22%
18%
16%
13% 3%
1980
1990
2000
2010
Source: Bureau of Labor Statistics

6. At FedEx, 13MM Digital Experiences Each Business Day
Our digital presence today:
13MM FedEx digital experiences every day
87%+ of all parcels are initiated digitally
30% of all FXO print business

7. Singular Accountability
Critical Path: Goal Congruence
Deliverable 2
Deliverable FY Q4 Q3 Q2 Q1
Planning and Rollout
Strategic
Deliverable 3
Deliverable 1
Key
Deliverables
Status
Deliverable 2
Deliverable FY Q4 Q3 Q2 Q1
Planning and Rollout
Strategic
Deliverable 3
Deliverable 1
Key
Deliverables
Status
IT and Marketing Must Align to Enable Global Access for the Digital Consumer
The path to collaboration starts with us:
Goal Congruence
Aligned our strategies
Aligned our compensation objectives To
Deliverable 2
Deliverable FY Q4 Q3 Q2 Q1
Planning and Rollout
Strategic
Deliverable 3
Deliverable 1
Key
Deliverables
Status
Singular Accountability 7

8. IT and Marketing Must Align to Enable Global Access for the Digital Consumer
Risk Score: 35
Maximum
Sample Projects: A B C  
Risk
Very low
Low
Medium
High
Extreme
Access on mobile devices.>> E-Commerce Digital Dashboard
Critical Path: Language
Executive Communications
Joint O&D Meetings
Employee Communications
Language
Joint communications with our peers
Between our management team
And with our employees 8

9. IT and Marketing Must Align to Enable Global Access for the Digital Consumer
Critical Path: Process
Agile Development
Joint Enterprise Service Quality Metric
Process
Agile Development
Joint SQI metric 9

10. IT and Marketing Must Align to Enable Global Access for the Digital Consumer
Critical Path: Quality Software Delivery
Manages the “manufacturing line”
Uses performance management system to monitor, measure and assess risks
Diagnoses and corrects problem areas in the software development cycle
Quality Software Delivery
Manages “manufacturing” line
Uses performance mgmt. system to monitor,
measure and assess risks
Diagnoses & corrects problem areas in SDC 10

11. IT and Marketing Must Align to Enable Global Access for the Digital Consumer
Critical Paths to Collaboration:
Language / Process
Goal Congruence
Software Management
Location
And the last critical path is the old real estate mantra:
Location, location, location!
90 IT and 96 DA Marketing team members co-located
in Fall 2008.
Impressive results… 11

12. Results: Quality Measurement Jointly-defined metrics
Quality Assurance Field Test Lab
Continuous Improvement Pricing Logic Change
Results: Quality
Measurement (jointly-defined metrics)
Quality Assurance (Field Test Lab)
Continuous Improvement (PLC)

13. Results: Speed Global Access with tools that are: Easy-to-use
FedEx Desktop
Global Access with tools that are:
Easy-to-use
Customizable
Real-time
Reliable
Relevant
FedEx Advanced Tracking
FedEx
Mobile
Results: Speed to market
Global access with tools that are:
Easy-to-use, customizable,
real-time, reliable and relevant.
FedEx QuickShip
Web
Services
FedEx Print Online

14. “The Choose FedEx sites were rebuilt and launched in one hour
“The Choose FedEx sites were rebuilt and launched in one hour. The quality and speed of execution would not have been possible without our two teams co-locating.”
“Co-location was a great move and proved itself out when my team (Marketing) and Angela’s team (IT) handled the crisis over the cubical walls.”
Dennis Shirokov
FedEx.Com Marketing
Speed testimonial from one of our
Marketing managers. 14

15. Results: Customer Satisfaction
Automation Volume
Average Daily Volume (In Thousands)
4,000
5,000
6,000
7,000
FY05
FY06
FY07
FY08
82%
87%
100%
Percent Automated
Employee satisfaction translates to
Customer satisfaction.
Customer research backs it up.

16. Questions & Answers
Thank you – and now we’ll take your questions. 16