removing barriers to innovation by mark ryder, prime vision
TRANSCRIPT
Mark A. RyderDirector: Marketing & Key Accounts
REMOVING BARRIERS TO INNOVATION
Post-Expo Asia-Pacific 2014
Who are Prime Vision?
• Part of a postal operator ourselves;• Core technology developer in reading and coding
systems;• Middleware developer between sorting systems,
decision systems and IT;
Partners with posts to develop automation solutions or reutilise existing investments in automation and software in new ways;
Trend > Data, Smarter Services, “Future Post”
• No longer are we just sorting and delivering the mail;• Many trends and opportunities in the postal sector demand data,
whether its about the mail-piece, process, product, delivery point or more;
• At every level, data is an enabler to innovation, change and the “future post”;
Delivering innovation: Are you ready for change?
• “Fighting the old”….ignoring reality….resisting change• “we invested so much in this system, we must use it!”;• “it would cost us too much to change this system”;• “we have always done it this way”;• “hedging your bets”….waiting until the market settles down;• “our automation suppliers are blocking change”
• “Building the new”….being brave….having a vision• Forget what is lost, focus on tomorrow;• Innovate! Reinventing the post;
(In fact, the heaviest investors of yesterday perhaps have the highest
barriers to innovation today)
• The old postal paradigm: those posts with highest automation The old postal paradigm: those posts with highest automation would be most likely to be efficient and profitable; would be most likely to be efficient and profitable;
• In fact, in today’s postal world, these legacy automation and In fact, in today’s postal world, these legacy automation and production platforms can hold back innovation and agility;production platforms can hold back innovation and agility;
• Less automated posts now have an advantage in their speed Less automated posts now have an advantage in their speed to market in many cases;to market in many cases;
• The key is how flexible, adaptable and open are your The key is how flexible, adaptable and open are your automation and production platforms?automation and production platforms?
The past may be holding you backAnother barrier to delivering innovation
Uncomfortable pace of change• Hundreds of years of service – traditional core business will be a
niche business within 5-10 years• Technology investments, sorting etc could be spread over 10-15
years:• Right now, can you see 10-15 months ahead?;• Confidence to invest is a barrier to innovation as well;
• E-Commerce, “smart” services are the new drivers (and many non-postal initiatives)
Long-term thinkingIn a short-term world
• Change is not limited to just the post:– All stakeholders must be ready to change, including suppliers and the
wider market;• Being brave is important, but also your approach to change and
delivering innovation;– Adaptable & flexible for change long-term;– “Open” non-proprietary systems, configurable, modular, multi-vendor;
• What do you need to deliver your “future post”?:– Rate your existing assets: valuable / frozen / redundant / reconfigured;
Recognize this world?
Recognize this world?
Blue-sky thinking
• Innovation is strong in posts. Many are reinventing themselves;• Looking beyond traditional definitions of ‘what a post does’;
Inspirational stories of change and innovation
• Recognised their USP: • Trusted brand and most complete last-mile delivery provider in the
country;• Delivering more…i.e. groceries, pharmaceuticals with services;• Customer-centric eco-system, consolidated deliveries at time slot,
payment and even returns
• Prioritized deployment of high-impact tools for their customers;• Enabling access digitally to core services via four new apps;• Mobile platforms, IOS, Android
• Developed a new USP:• Global services for NZ clients, enabling international business;
• Designed a global logistics network of own facilities and partners;• New capabilities, event management, warehousing and logistics
(Peter Somers, APPU Conference 2013)
(Brian Chandler, APPU Conference 2013)
(Press Release: April 2014)
Detailed impact areas: Locked-in by your suppliers?
At the automation level:•Sorting•Reading / Coding•eDi (Electronic Data Interchange)•Databases•Track & Trace•Route Planning•Revenue protection / recovery
• Many posts are “locked-in by their existing technology suppliers into expensive, proprietary systems that no longer meet the needs of the business;
• A major barrier to change and innovation;
• Expert third-party intermediaries can help: both in “re-imagineering” systems as well as working with original vendors;
• Future choices preferably should be specified as “open, flexible and configurable” from day 1
Commercial realities
• Finance can be a major barrier to delivering innovation;• Raising capital expenditure, even for business transformation, is
difficult in today’s “short-term, rapid change” postal world;• Some postal suppliers are offering innovative commercial
models alongside their innovative technology:• E.g. development, integration and services offered under a SAAS
arrangement (Software As A Service), eliminating the need for major up-front capital investment;
• Are your suppliers working with you? Have they adapted to the new market realities?
Have an expert intermediary on your team
Recipe for success:•A true co-development partner;•Postal expert, technology, market and processes;•Making the most of your existing investments in technology;•“Re-imagineering”, adapting what you have for new innovative ways of working;•Overcoming “locked-in” situations with open integration expertise and partnering approach;•Flexible commercial models and services;•Ease of adding new functionality and modules to respond to new market demands and opportunities
Mark A. RyderDirector: Marketing & Key Accounts
REMOVING BARRIERS TO INNOVATION
Post-Expo Asia-Pacific 2014
Thanks for your attention!