Findings from Capgemini Consulting second postal innovation study. Please feel free to contact Dirk Palder to get deeper information our background.

1. The$Status$of$Postal$Services$3.0:$
Second$Postal$Innova9on$Study$
!
Launching!new!services!in!the!postal!industry.!
A!customer!orientated!approach?!
!
Key$study$findings$/$Capgemini$Consul9ng$
Dirk$Palder,$Global$Postal$Leadership$team$
$
IDWorld$Interna9onal$Congress$$
Frankfurt,$16th$October$2012$
Transform to the power of digital

2. Contents$
! Study Background
! Key Findings
! Examples
! Strategic Learning's
2$

3. Study$Background$

4. What!triggered!Capgemini!for!conduc>ng!this!study?$
Mo9va9on$for$the$study$
Market!
Developments!!
&!Needs!
Study!Triggers!
Customer!
! Requests$for$inspira9ons$
! Need$for$business$
transforma9on$
! Changes$through$digital$
world$
! Lack$of$a$comprehensive$new$product/$
service$compendium$
! Hot$topic$in$the$industry$
! High$acceptance$of$Capgemini’s$
predecessor$study$
! Strong$demand$for$a$successor$edi9on$
New products/ services
as means for
business transformation/
business model change
! Helping!in!defining!the!roadmap!to!Postal!Services!3.0!
! Providing!inspira>ons!for!innova>on!
Copyright © 2012 Capgemini Consulting. All rights reserved.
4$

5. What!is!the!second!global!Postal!Innova>on!Study?$
General$condi9ons$of$the$second$Postal$Innova9on$Study$
Aiming$for$gathering$in[depth$know[how$regarding$the$power$of$
innova9on$in$the$postal$industry$(con9nua9on$of$a$long[term$
study$serie1)$
Reference$book$on$new$products/$services$introduced$between$
2008$and$2010$in$the$postal$industry$to$postal$customers,$marke9ng$
agencies,$postal$suppliers,$experts$from$postal$operators;$period$
conscious$chosen$based$on$the$learnings$from$the$first$study$$
Gathering$data$from$publicly$available$sources$only$as$would$be$
available$to$customers$searching$for$products/$services$
Addi9onally$postal$operators$were$asked$to$review$captured$data$
(response$rate:$>40%)$
1 $Predecessor$study$is$the$2010$Capgemini$study$“Innova9on$Management$in$the$Postal$Industry$–$the$Key$for$Business$Transforma9on“$
Copyright © 2012 Capgemini Consulting. All rights reserved.
5$

6. !!!!!!!!!!!!!What!are!your!findings!from!innova>on!gathering!and!data!usage?$
Learnings$from$informa9on$gathering$and$usage$
Innova>on!
Marke>ng!
! Lack$in$professional$marke9ng$of$new$products/$services$
! Lack$in$dedicated$innova9on$departments/$contact$persons$
Access!
! Lack$in$global$and$professional$communica9on$
! Lack$in$adequate$descrip9on$for$customers’$understanding$
Coopera>on!
! Lack$in$interest$for$marke9ng$by$third$par9es$
! Lack$in$openess$for$becoming$convinced$of$the$importance$to$promote$new$products$
Data!Usage!
! Lack$in$comparison$due$to$differences$in$interna9onal$repor9ng$standards$
! Lack$in$transparency$of$new$product$history$
Copyright © 2012 Capgemini Consulting. All rights reserved.
6$

7. !!!!!!!!!!!!!!Which!areas!did!you!cover!from!the!postal!operators!studied?$
Areas$covered$
Ini>al!target!areas:!
Iden>fied!areas:!
Mail$
Mail$
Parcel$
Mail$
Therein$including:$
! Special$products$for$
private$customers$
! Products$from$new$
areas$of$business$
Parcel$
(including$courier$and$express)$
Logis9cs$
Logis9cs$
Finance$
Financial$products$and$
services1$
Insurance$products$and$
services1$
New!
business!
fields!
Insurance$
Diversifying$areas2$
Others$
1
2
Traditonal$business$for$many$postal$operators$
Areas$are$not$represen9ng$tradi9onal$postal$products$(e.g.$car$sharing)$
Copyright © 2012 Capgemini Consulting. All rights reserved.
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8. !!!!!!!!!!!!!!Which!postal!operators!are!covered!in!the!second!Postal!Innova>on!Study?$
Study$coverage$–$Four$con9nents$
Operators)covered:1)
Australia$
Austria$
Belgium$
Canada$
Denmark/$Sweden$
Finland$
France$
Germany$
India$
Italy$
Japan$
Jersey$
The$Netherlands$
Norway$
Singapore$
Spain$
Switzerland$
United$Kingdom$
1 $In$alphabe9cal$order$
USA$
Copyright © 2012 Capgemini Consulting. All rights reserved.
8$

9. Key$Findings$

10. !!!!!!!!!!!!!! !Which!postal!operators!were!the!most!innova>ve!companies!in!the!period!
covered?1$
Number$of$new$product/$service$introduc9ons$by$country$(postal$incumbent)$from$2008[20102$
22
Total$number$of$new$product/$
service$introduc9ons$at$the$19$
postal$operators:$$$133!
14
12
11
11
10
10
9
6
6
4
2$
4
3
3
3
2
1
1
2$
1
2$
The$top$innova9ng$operators$are$European.$With$22$new$product/$service$introduc9ons$from$2008$to$2010$Swiss$Post$is$
the$leader$in$number$of$new$product/$service$introduc9ons,$followed$by$Italy$(14)$and$Spain$(12).$
1
2
In$terms$of$number$of$new$product/$service$launches$
Operators$that$are$early$trendsejers$(similar$new$product/$service$launches$before$the$year$2008)$may$be$in$a$more$worse$posi9on;$these$are$for$example$Australia,$$
Denmark/$Sweden$and$Finland$
Copyright © 2012 Capgemini Consulting. All rights reserved.
10$

11. Have!you!iden>fied!profound!differences!among!the!postal!operators!
studied!according!to!their!new!product/!service!strategy?!
Classifica9on$of$postal$incumbents1$in$terms$of$moving$ahead$into$Postal$Services$3.0$
New$Product/$Service$$
Introduc9ons2$
Leaders!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
High$
Ac>vists!
Low$
Laggards!
Low$
1
2
3
High$
Enhancing$New$
Business3$
Presenta9on$of$the$country’s$flag$for$the$studied$postal$incumbent$in$the$respec9ve$country$
Counted$by$number$of$new$products/$services$introduced$from$2008$to$2010$
Counted$by$number$of$new$products/$services$introduced$in$this$category$
Copyright © 2012 Capgemini Consulting. All rights reserved.
11$

12. How!did!you!capture!and!evaluate!the!degree!of!new!product/!service!
introduc>ons?$
Framework$–$New$Product$Radar$[$WHAT$
Digitaliza>on!
Making!!
Access!
Easier!
Informa>on!&!!
Interac>on!
Business!!
Model!
Modernizing!!
Exis>ng!!
Products/!!
Services!
Legend:!Concentra9on$on$new$$
product/$service$introduc9on:$$
$
Non[Digital$
Digital$
Enhancing/!
New!
!Business!
Process!
Business!!
Partners/!!
Alliances!
Copyright © 2012 Capgemini Consulting. All rights reserved.
12$

13. How!did!you!capture!and!evaluate!the!degree!of!new!product/!service!
introduc>ons?$
Framework$–$New$Product$Radar$[$WHY$
Digitaliza>on!
Making!!
Access!
Easier!
Informa>on!&!!
Interac>on!
Business!!
Model!
Modernizing!!
Exis>ng!!
Products/!!
Services!
Legend:!Concentra9on$on$new$$
product/$service$introduc9on:$$
$
High$
Medium$
Low$
Enhancing/!
New!
!Business!
Process!
Business!!
Partners/!!
Alliances!
Non[Digital$
Digital$
Basic$popula9on$each$with:$
! “WHAT”$
! “WHY”$
Copyright © 2012 Capgemini Consulting. All rights reserved.
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14. How!did!you!capture!and!evaluate!the!degree!of!new!product/!service!
introduc>ons?$
Framework$–$New$Product$Radar$[$HOW$
Digitaliza>on!
Making!!
Access!
Easier!
Informa>on!&!!
Interac>on!
Business!!
Model!
Modernizing!!
Exis>ng!!
Products/!!
Services!
Legend:!Concentra9on$on$new$$
product/$service$introduc9on:$$
$
High$
Medium$
Low$
Enhancing/!
New!
!Business!
Process!
Business!!
Partners/!!
Alliances!
Non[Digital$
Digital$
Basic$popula9on$each$with:$
! “WHAT”$
! “WHY”$
! “HOW$
Copyright © 2012 Capgemini Consulting. All rights reserved.
14$

15. WHAT!is!the!role!of!digitaliza>on!for!postal!operators’!business!model!
transforma>on?$
Overall$evalua9on$–$WHAT$
Lessons Learned
WHAT!
$$
Degree of digitalization
of Core Products/
Services
Non[digital$
46,5
53,5
The$world$goes$digital$–$the$pace$in$postal$services$is$
strongly$increasing$
Similar$digital$efforts$both$for$core$business$and$
diversifica9on$
Digital$
Degree of digitalization of
Diversification
Non[digital$
41,2
Lack!of!sustainability!in$digital$business$models;$
cri9cal:$total$efforts$for$pushing$digitaliza9on$
58,8
Digital$
Copyright © 2012 Capgemini Consulting. All rights reserved.
15$

16. WHY!do!postal!operators!introduce!new!products/!services?$
Overall$evalua9on$–$WHY$
Lessons Learned
WHY!
$$
Reason for new product/
service introductions
Modernizing$
Exis9ng$Products/$
Services$
10,5
30,8
Enhancing/$
New$Business$
58,6
Leaving$or$changing$the$envelope$
Access$improvement$(e.g.$by$mul9[channel$solu9ons)$$
Making$
Access$
Easier$
Convergence$&$Solu9on$Offerings$s9ll$weak$and$non[
consistent$across$different$channels$
Copyright © 2012 Capgemini Consulting. All rights reserved.
16$

17. HOW!do!postal!operators!implement!new!product/!service!introduc>ons?$
Overall$evalua9on$–$HOW$$
Lessons Learned
HOW!
$$
Method for new product/
service introductions
Declining$focus$on$opera9onal$(process)$improvements$
Business$Partners/$
Alliances$
9,8
Business$
25,6
Model$
37,5
27,1
Informa9on$&$Interac9on$
Process$
Increasing$role$of$communica9on$solu9ons$and$
business$strategy$(Big$Data)$
Rather$MAKE$than$COLLABORATE$and$NETWORKING$–$
Risk?$$
Copyright © 2012 Capgemini Consulting. All rights reserved.
17$

18. How!many!introduc>ons!target!the!postal!value!chain!and!where?$
Assignment$of$new$products/$services$to$the$stages$in$the$postal$value$chain$
Transport
Collect
Sort
Package
1.5%
4.4% 0.0%
Address
4.4%
7.4%
Stage
Number of
new
products/
services
Percentage
of new
products/
services
4.4%
Address
5
7.4%
13
19.1%
3
4.4%
0
0.0%
Transport
11.8%
3
Sort
CRM & After Sales
7.4%
Package
44.1% Deliver
5
Collect
Print 7.4%
Print
1
1.5%
30
44.1%
8
11.8%
68
100.0%
Frank & Pay
Deliver
CRM – AfterSales
19.1%
Sum
Frank & Pay
! Confirma9on$of$trend$iden9fied$in$2011:$decreasing$ac9vi9es$in$the$core$area$
! Delivery$s9ll$prevailing$and$dominant$
! Star9ng$to$focus$on$the$front[end$(e.g.$address)$–$though$slowly$
Copyright © 2012 Capgemini Consulting. All rights reserved.
18$

19. What!are!your!learnings!from!Leaders?$
Overall$evalua9on$–$LEADERS$
Leaders!
Lessons Learned
$$
Leaders$hunt$for$new$business$
Leaders$approach$the$communica9on$solu9ons$area$
Leaders$go$ahead$for$digitaliza9on$
11%$of$the$postal$operators$$
introduced$27%$of$new$
products/$services$
$
Leaders$explicitly$communicate$innova9on$power$
Copyright © 2012 Capgemini Consulting. All rights reserved.
19$

20. What!are!your!learnings!from!Laggards?$
Overall$evalua9on$–$LAGGARDS$
Laggards!
Lessons Learned
$$
PostNord!(Denmark/!Sweden)
!
!
!
India!Post!(India)
!
!
!!
Jersey!Post!(Jersey)
!
!
!
Norway!Post!(Norway)
!
!
!
USPS!(USA)!
!Itella!(Finland)!!!!!!!!!
!Japan!Post!(Japan)!
Hardly$any$new$product/$service$introduc9ons$(out$of$
top$management$focus)$
!PostNL!(Netherlands)!!!!!!!!!!!
!Royal!Mail!(UK)!
Fight$for$survival1$–$transforma9on$by$new$product/$
service$introduc9ons$not$an$op9on$
Digital$new$products$are$not$a$core$focus$of$business$
ac9vi9es2$
47%$of$the$postal$operators$$
introduced$17%$of$new$
products/$services$
$
1
2
Postal$operators$with$losses$in$the$FY$2010:$India$Post,$Japan$Post,$Jersey$Post,$Royal$Mail,$U.$S.$Postal$Service$
Confirmed$also$by$Moya$Greene,$CEO,$Royal$Mail,$World$Mail$&$Express$Europe,$22$May$2012$
Copyright © 2012 Capgemini Consulting. All rights reserved.
20$

21. What!are!your!learnings!from!Ac>vists,!operators!that!are!neither!Leaders!!
nor!Laggards?$
Overall$evalua9on$–$Ac9vists$
Ac>vists!
Lessons Learned1
$$
Australia!Post!(Australia)
!
!
!
bpost!(Belgium)
!
!
!!
La!Poste!(France)
!
!
!
SingPost!(Singapore)
!Österreichische!Post!(Austria)!!!!!!!!!
!Canada!Post!(Canada)!
!Deutsche!Post!(Germany)!!!!!!!!!!!
!Correos!(Spain)!
42%$of$the$postal$operators$$
introduced$56%$of$new$
products/$services$
$
1
Par9ally$ahead$of$9me$–$similar$innova9ons$without$
success$story$
Par9ally$also$jumped$upon$wave$of$digitaliza9on$$
New$business$focus$also$(par9ally)$but$less$outstanding$
Applicable$to$several$but$not$necessarily$to$all$postal$operators$in$this$group$
Copyright © 2012 Capgemini Consulting. All rights reserved.
21$

22. Examples$

23. !!!!!!!!!!!!!!What!are!the!most!interes>ng!products!and!services!from!your!perspec>ve?$
Product$Highlights$(1/4)$–$Individual$(outstanding)$introduc9ons$
Social
Memories
(2011)1
1
! Applica9on$allows$users$to$keep$track$of$their$
Facebook$data$via$a$customized$book$compiling$
social$network$data$and$visualizing$these$with$
photos$and$infographics$
! The$book$transforms$users'$social$network$
informa9on$into$a$las9ng$memory$
Though$introduced$in$2011$(outside$the$period$studied$which$is$between$2008$and$2010),$such$outstanding$other$new$products/$services$are$covered$if$of$special$interest$
to$the$global$postal$industry$
Copyright © 2012 Capgemini Consulting. All rights reserved.
23$

24. !!!!!!!!!!!!!!What!are!the!most!interes>ng!products!and!services!from!your!perspec>ve?$
Product$Highlights$(2/4)$–$Individual$(outstanding)$introduc9ons$
Clout
Shoppe
(2009)
! Online$luxury$store$for$clothes,$jewelry,$cosme9cs,$
etc.$(designer$brands)$
! Some$brands$are$exclusively$offered$by$Clout$
Shoppe$as$usually$not$being$available$in$Singapore$
! Mul9$device$access$
Copyright © 2012 Capgemini Consulting. All rights reserved.
24$

25. !!!!!!!!!!!!!!What!are!the!most!interes>ng!products!and!services!from!your!perspec>ve?$
Product$Highlights$(3/4)$–$Individual$(outstanding)$introduc9ons$
eShare
(2010)
! Car[sharing$scheme$using$purely$electric$cars$
! Customers$are$billed$for$the$number$of$kilometers$
travelled$and$the$period$of$use$
! Registra9on$can$be$completed$by$calling$a$hotline$
or$online$
Copyright © 2012 Capgemini Consulting. All rights reserved.
25$

26. !!!!!!!!!!!!!!!!What!are!the!most!interes>ng!products!and!services!from!your!perspec>ve?$
Product$Highlights$(4/4)$–$Introduc9on$at$several$operators1$
SmartPOST
(2010)
! Self[service$parcel$delivery$and$collec9on$
terminals$$
! Flexible$delivery$op9on,$especially$for$
requirements$of$E[commerce$
! SMS$with$a$locker$code$is$sent$when$the$parcel$is$
ready$for$pick$up$
Web Yubin
Hybrid Mail
Solution
(2008)
! Sending$mail$online,$which$Japan$Post$delivers$as$a$
hard$copy$
! Delivery$at$a$desired$9me$of$the$day$(morning$or$
arernoon),$tracking$service$allows$to$check$the$
delivery$status$of$items$
Postcard via
Mobile
(2009)
! The$user$sends$a$picture$via$MMS$with$personal$
gree9ngs$by$entering$the$phone$number$of$the$
recipient$
! Norway$Post$finds$the$corresponding$address$for$
the$postcard$and$delivers$it$as$a$hardcopy$
nugg.ad
Adcloud
intelliAd
1
! Move$into$upstream$digital$added$value$stages$
Itella
Japan Post
Norway Post
Deutsche Post
DHL
One$example$per$category$
Copyright © 2012 Capgemini Consulting. All rights reserved.
26$

27. Strategic$Learnings$

28. What!were!the!overall!key!findings!of!the!second!Postal!Innova>on!!
Study,!also!compared!to!the!predecessor!edi>on?$
Connec9ng$factors$and$new$insights$
Postal!Study!2010/2011!
Postal!Study!2011/2012!
Research!
Focus!
! Innova9on$management$$
! Operators’$perspec9ve$
! Primary$research$
! New$products/$services$
! Customers’$perspec9ve$
! Secondary$Research$
Players!
! Market$Shapers$
(well[organized,$low$profits)$
! Market$Op9mizers$
(low[organized,$high$profits)$
! Leaders$
(hunters$for$new$business,$pushing$digital$arena)$
! Laggards$$$
(figh9ng$for$survival,$neglec9ng$innova9ons)$
! Maturity$of$the$postal$value$chain/$process$
innova9ons$
! Rise$of$service$innova9ons$
! Further$decrease$of$ac9vi9es$in$core$area$
! Increased$focus$front[end$
! Highest$9me[to[market$for$business$innova9os$
! Increasingly$value$chain$extension/$new$business$
! Customer$solu9ons$(instead$single$products)$
par9ally$
! Marke9ng$not$integrated$in$innova9on$process$
! Underrepresenta9on$of$marke9ng$personnel$on$
innova9on$management$teams$decreases$the$
overall$success$poten9al$of$projects$
! Weak$product/$service$marke9ng$with$hindered$
customer$access$and$lack$of$use$cases$
!
Postal!
Value!
Chain!
Poreolio!
Adapta>on!
!
Marke>ng!
! Lack$in$dedicated$innova9on$departments/$
contact$persons$
Copyright © 2012 Capgemini Consulting. All rights reserved.
28$

29. “The!Status!of!Postal!Services!3.0”!!based!on!Capgemini’s!second!innova>on!study:!
Postal!Service!is!transforming,!but!so!far!in!a!probing!and!learning!phase$
Key$learning's$from$our$studies$
Going!Digital!including$mobile$“everywhere$in$the$postal$world”,$
intensity!and!focus!(reason$“WHY”)$s9ll$quite$different$
More!happening!than!customer/!sales!know!and!understand$
The!MAKE!culture!s>ll!dominates!instead!of!ecosystems/!plaeorms$
Missing!link!between!ini>a>ves!of!postal!operators!internal!and!
external!
The!strategic!vision!and!posi>oning!of!the!transforma>on!is!weak$
Copyright © 2012 Capgemini Consulting. All rights reserved.
29$

30. Which!lessons!can!postal!operators!learn!and!what!are!you!famous!for?!
Postal$Market$Spider$Net:$Development$in$five$strategic$direc9ons$through$business$transforma9on$
Postal
Core
Mail
Distribution
Creation
Make Selection
Customer Targeting
Communication Fulfillment
Copyright © 2012 Capgemini Consulting. All rights reserved.
30$

31. What!is!your!desired!and!in!your!country!respected!future!brand!percep>on!
based!on!the!fundaments!of!your!core!and!change!effort?!

32. Have!you!missed!our!Digital!Transforma>on!Study!with!MIT?!!
Have!a!look!at!the!findings!!
!

33. Thank!you!
Innova>on!–!Transforma>on!–!Postal!Services!3.0!
Dirk Palder
Vice President
Member Global
Postal-& Distribution
Leadership-Team
Capgemini
Rheinpalais
Konrad-Adenauer-Ufer 7
D- 50668 Cologne
Germany
Tel.
+49 221 912644-100
Mobile: +49 151 4025 2222
dirk.palder@capgemini.com
Twitter:@DirkPalder
LinkedIn: Dirk Palder
www.capgemini-postalservices.com
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