postal services 3.0

Postal Services 3.0TM From Vision to Reality Post-Expo 2011 - Stuttgart Dirk Palder, Vice President September 26, 2011

Today’s agenda

© 2011 Capgemini - All rights reserved

2 2011-09 POSTAL SERVICES 3.0-DIRK PALDER OHNE VIDEO-V3_EDIT.PPTX

Agenda

*  The digital world driving change

*  Impact on the postal industry

*  Need for business model change

*  What? Content

*  How to change? Business Transformation – Capgemini’s 5E Model

Digitalization – revolution The world is changing faster and offering more surprises than ever



Source: Gartner, YouTube, Twitter

In 2013, there will be more mobile internet users (1.82 bn) than fixed

users (1.78 bn)

Over 660 million Skype users -

if the VoIP leader Skype were a carrier, it would be

the largest in the world

70% increase YoY on mobile banking

As of 2010, Facebook passed the mark of 500 million users – if it was a country, it would be the world’s third largest after

China and India

35 hours of video uploaded to YouTube per minute – the equivalent of 150,000+ full length movies in theaters

each week

With 13%, social networking takes the largest percentage on the worldwide share of online

time – this category did not exist 5 years ago

Blackberry needed 300+ days to sell 1 million

devices – of the iPhone 4 1.5 million units were in a

single day

110 Mio tweets on Twitter per day

VIDEO

Internet speed/ penetration rate (2010)

Internet speed and penetration

The adoption rate of the internet is directly related to the increase in download rates especially in Europe and North America

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0

10

20

30

40

50

60

70

80

90

100

Internet Penetration Download Speed (KBPS)

North America

Europe APAC

Dow

nload Speed (in K

BPS)

Inte

rnet

Pen

etra

tion

(%)

Sources: CPRDT Lab Analysis, www.internetworldstats.com, www.speedtests.net.

Global Avg. Download rate - 4077



Mobile phone: developments

§  fastest growth rates in India and China

§  Smartphones are catching up

§  296.6 million smartphone units were sold

§  MORE than PC & Labtops together

§  Postal companies usage by developing

innovative smart apps and mobile postage

§  However, postal companies have not

integrated “mobile” at the core of their

strategies

Mobile penetration/ smartphone usage The world is going mobile, and smartphones are outperforming PCs

Key highlights

-‐10%

0%

10%

20%

30%

40%

50%

60%

0%20%40%60%80%

100%120%140%160%180%

Mobile Penetration, 2009(%) Mobile Subscriber Base Growth (2009 over 2008)

Mobile penetration and growth (2009)

Source: CPRDT Lab Analysis, www.gartner.com, www.itu.int, www.morganstanley.com.

0

200

400

600

800

2005 2006 2007 2008 2009 2010E 2011E 2012E 2013EDesktop PCs Notebook PCs Smartphone

2012E: Inflection point Smartphone > Total PCs

Global units sold – PCs + notebooks vs. smartphones

Pie

ces

(in M

illio

ns)



Digital Transformations are about substantial changes both on the IT as well as on the business side


6

Digital Transformation – definition

§  50% business & 50% IT transformation §  Most relevant for companies where IT has

a significant impact §  Based on key IT innovations/

IT architecture insights §  Targeting substantial changes in the way

business is done §  Challenging business strategy from an IT

perspective

What Digital Transformations are ... What Digital Transformations are NOT ...

§  Another name for IT strategy or IT organization projects – this may be a module of a Digital Transformation

§  Another name for a business transformation

§  Another name for a concurrent transformation – this may be a result/ part of a Digital Transformation

§  Incremental enhancements on the IT demand or supply side

2011-09 POSTAL SERVICES 3.0-DIRK PALDER OHNE VIDEO-V3_EDIT.PPTX

Main characteristics of the digital world The digital world is marked by five main characteristics


7

Easy access to relevant information available anywhere and anytime

INFORMATION ADVANTAGE

1

SOCIAL VIRTUALISATION

2 Convergence of real and virtual social life, limitless and borderless around the globe

TRUE MOBILITY 3 Everywhere online - Internet of things meets

the internet of mobility with no speed limit

CONNECTIVITY 4 Standardized connectors to/ with everything

enabling wireless and contactless pay & play

PERVASIVE TECHNOLOGY

5 Ubiquitous usage of technology becoming an ever more integrated part of our lives


Today’s agenda



Agenda




*  What? Content


Usually, a dominating new technology quickly substitutes the legacy one after a slow start – however, in terms of letter and email things look different



Source: Capgemini

Audio tape t

Volume

CD-Rom

E-Mail

Letter

1998

Distribution curve of a new technology

0

50

100

150

200

250

300

350

400

450

2005 2006 2007 2008 2009(E) 2010(E)

115 117 108 106 104 102

313 317 316 305 305 303

Europe Rest

Despite expectations of digital communication replacing traditional letter, the decrease in mail volumes is relatively slow Email vs. letters/ mails

Emails per user/ day Mail volume development (in bn)

0

20

40

60

80

100

120

140

160

180

200

2000 2002 2004 2006 2008 2010

15

50

90114

140

93

8

15

28

43

54

42

Business E-‐mails Consumer E-‐mails

194

135

412

157

118

65

23

434 428 425

-16.5%

405 -0.9%

Num

ber o

f Em

ails

Mai

l Ite

ms

(Bill

ions

)

Year Year

Source: Sources: CPRDT Lab Analysis, The Radicati Group, “Business/Consumer Email Traffic Historical and Forecast, 2000-2014“, January 2010, UPU.int, “Postal-Statistics“, 2010.

The substitution of the letter is driven by a mix of changes in communication and lack of innovation.

Impact of technology in the postal market? Impact of technology and change in usage


11

Do not extent the substitution discussion into a self fulfilling prophecy

Dilution of letter content instead of substitution

Increase innovation capabilities to combine the worlds: mail-social-mobile

Increase Adaptability of postal system on volumes changes

Enhance your service portfolio and stop discussion around substituion

CORREOS - INNOVATION - TRANSFORMATION - POSTAL SERVICES 3.0.PPTX

Today’s agenda



Agenda




*  What? Content


The digital and sustainability challenge is the positioning several business



Segments

Companies

startups

Three big waves in the past Innovation in the postal market, but what is next…..?


14

Standardization of letters §  Formats §  Weights §  Address

Automation of sorting

§  Linehaul §  Last mile

Standardization

Industrialization

Multi-channel §  Access §  Multiple solutions

franking, etc.

Customization


Reinventing the business model for a postal operator is now a MUST: Postal Services3.0TM Framework



Postal Services3.0TM

Framework

“Innovation distinguishes between a leader and a follower.”�

Weakness: Who could enter the postal market?

Strength: How to leverage the postal brand reputation?


17

What would you expect a postal operator will look like after all our experience with Facebook, Twitter, Flikr,…

Threat: What will happen if nothing changes?

Opportunity: What could be the new CORE of a post - greenfield?


SWOT-Analysis

Today’s agenda



Agenda




*  What? Content


PMSS – Postal Market Service Spider But: what are you famous for and who is your competitor?



Distribution

Creation

Make Selection

Customer Targeting

Core Postal

Mail Parcel

Communication Fulfillment

Potential Postal Service3.0 – Scenarios: Defining the WHAT

You have the choice – but you should define systematically your market, e.g. BMFO method – Building Market Focused Organizations


20

THE integrated e-fulfillment provider of the country (e.g. InPost/ Saudi Post/ Malaysia Post)

THE communication/ CRM factory for...

THE service broker and even BUTLER for SMEs and consumers

THE logistics provider for…


Today’s agenda



Agenda




*  What? Content


Capgemini’s 5Es of Business Transformation

Our Business Transformation approach addresses all levels and aspects of a transformation: we call it the INFINITUM

Envision the Future.

Energise People.

Expedite Growth. Enhance Competitiveness.

Establish Key Capabilities.

Excellence, sustainability and speed are key characteristics of our quality-driven approach. © 2011 Capgemini - All rights reserved


Defining the right mix to leverage the core brand competence



Geographic

Business Model

Custom Segmentation

Organization Cluster

People

Capabilities

Systems Style

Sourcing Collaboration

Business Transformation Streams

Conception Design Realization Implementation B U S I N E S S

I T

From good to great –traditional transformation programs vs. Digital Transformation

Digital Transformation dissolves the traditional view on classic business/ IT transformation programs


24

Traditional Transformation Programs

Business strategy refinement driven by IT architecture

Business strategy-

driven release

plan

Heavy handholding post go-live

reviews

Digital Transformations


Success factors for building new solutions Organization: findings from a solution business study


25

Separate P&L

Mixed team sourcing

High-potentials in management

Focus on core capabilities for differentiation


Style: Its also about age and working characteristics …

Source: Adapted from IBM report: “Driving Workforce Productivity by Enabling Social Connection” (June 2009)



Traditionalist (55-65)

Boomers (45-55)

Gen X (30-45)

Millennials (18-39)

Training The hard way Too much and I’ll have

Required to keep me

Continuous and expected

Learning style Classroom Facilitated Independent Collaborative and networked

Communication style Top-down Guarded Hub and spoke Collaborative

Problem-solving Hierarchical Horizontal Independent Collaborative

Decision-making Seeks approval Team informed Team included Team decided

Leadership style Command and control Get out of the way Coach Partner

Feedback No news is good news Once per year Weekly/ daily On demand

Technology use Uncomfortable Unsure Unable to work without it

Unfathomable if not provided

Job changing Unwise Sets me back Necessary Part of my daily routine



“Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.”

Lessons learned to define the Postal Services 3.0TM



* Letter mail will have a long future because it is different, but with decreasing volumes over time

* It is better to cannibalize yourself using different channels and technologies

* All postal operators have a strong brand asset: TRUST

* Getting into the evoked set of relevant digital brands is a MUST to stay in the race

§  Being the neutral mediator is the classical brand awareness of a postal operator. However, it could be leveraged even better. Defining the options: -  communication broker/ platform/ media manager -  general data broker (new business models) -  butler = manager of services for SMEs and households -  fulfillment provider = solution business ²  or SIMPLY with one quote: CONNECTING PEOPLE

Innovation

Transformation

Postal Services 3.0

PEOPLE MATTER, RESULTS COUNT. CAPGEMINI



What could be your contribution to the postal market? CG Global Postal Team – The Collaborative Business Experience

Postal Services 3.0TM at www.capgemini-postalservices.com



Capgemini Rheinpalais

Konrad-Adenauer-Ufer 7 D- 50668 Cologne

Germany

Tel. +49 221 912644-100 [email protected]

Twitter:@DirkPalder LinkedIn: Dirk Palder

www.capgemini-postalservices.com

Dirk Palder

Vice President Global Postal Team

postal services 3.0

Documents

postal services

mobile internet users

internet penetration

mobile phone

mobile postage

mobile banking

integrated mobile

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