Just the Fax: Federal Express meets the information age-Lessons learned in technology transfer

On July 2, 1984, the first ZapMail message was sent from Federal Express chairman Frederick W. Smith to six members of FedEx's corporate board of directors in separate cities across the country (Zemke 1986). It worked. However, by late September 1986, after suffering over $300 million in operating losses, Federal Express decided it didn't (Keller and Wilson 1986). Why? This postmortem of ZapMail draws on management and innovation theory and research, as well as historical accounts of communication technology development and market conditions from 1984 through 1986, to analyze the failure of FedEx's once-promising electronic delivery service. An analysis of the fax market in 1995 and FedEx's subsequent successful adoption of information technologies conclude this paper.