1. The$Status$of$Postal$Services$3.0:$ Second$Postal$Innova9on$Study$ ! Launching!new!services!in!the!postal!industry.! A!customer!orientated!approach?! ! Key$study$ndings$/$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's2$ 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$of$Capgeminis$ predecessor$study$ ! Strong$demand$for$a$successor$edi9on$New products/ services as means for business transformation/ business model change! Helping!in!dening!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$the$rst$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!ndings!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$to$dierences$in$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>ed!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$New! business! elds!Insurance$Diversifying$areas2$ Others$1 2Traditonal$business$for$many$postal$operators$ Areas$are$not$represen9ng$tradi9onal$postal$products$(e.g.$car$sharing)$ Copyright 2012 Capgemini Consulting. All rights reserved.7$ 8. !!!!!!!!!!!!!!Which!postal!operators!are!covered!in!the!second!Postal!Innova>on!Study?$ Study$coverage$$Four$con9nents$ Operators)covered:1) Australia$ Austria$ Belgium$ Canada$ Denmark/$Sweden$ Finland$ France$ Germany$ India$ Italy$ Japan$ Jersey$ The$Netherlands$ Norway$ Singapore$ Spain$ Switzerland$ United$Kingdom$ 1 $In$alphabe9cal$order$USA$ Copyright 2012 Capgemini Consulting. All rights reserved.8$ 9. Key$Findings$ 10. !!!!!!!!!!!!!! !Which!postal!operators!were!the!most!innova>ve!companies!in!the!period! covered?1$ Number$of$new$product/$service$introduc9ons$by$country$(postal$incumbent)$from$2008[20102$ 22Total$number$of$new$product/$ service$introduc9ons$at$the$19$ postal$operators:$$$133!1412111110109 66 42$4333211 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 2In$terms$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,$$ Denmark/$Sweden$and$Finland$ Copyright 2012 Capgemini Consulting. All rights reserved.10$ 11. Have!you!iden>ed!profound!dierences!among!the!postal!operators! studied!according!to!their!new!product/!service!strategy?! Classica9on$of$postal$incumbents1$in$terms$of$moving$ahead$into$Postal$Services$3.0$New$Product/$Service$$ Introduc9ons2$Leaders!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!High$Ac>vists! Low$Laggards! Low$1 2 3High$Enhancing$New$ Business3$Presenta9on$of$the$countrys$ag$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$Copyright 2012 Capgemini Consulting. All rights reserved.13$ 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 LearnedWHAT! $$ Degree of digitalization of Core Products/ Services Non[digital$ 46,553,5The$world$goes$digital$$the$pace$in$postal$services$is$ strongly$increasing$ Similar$digital$eorts$both$for$core$business$and$ diversica9on$Digital$Degree of digitalization of Diversification Non[digital$ 41,2Lack!of!sustainability!in$digital$business$models;$ cri9cal:$total$eorts$for$pushing$digitaliza9on$58,8Digital$Copyright 2012 Capgemini Consulting. All rights reserved.15$ 16. WHY!do!postal!operators!introduce!new!products/!services?$ Overall$evalua9on$$WHY$ Lessons LearnedWHY! $$ Reason for new product/ service introductionsModernizing$ Exis9ng$Products/$ Services$ 10,5 30,8Enhancing/$ New$Business$58,6Leaving$or$changing$the$envelope$Access$improvement$(e.g.$by$mul9[channel$solu9ons)$$Making$ Access$ Easier$Convergence$&$Solu9on$Oerings$s9ll$weak$and$non[ consistent$across$dierent$channels$Copyright 2012 Capgemini Consulting. All rights reserved.16$ 17. HOW!do!postal!operators!implement!new!product/!service!introduc>ons?$ Overall$evalua9on$$HOW$$ Lessons LearnedHOW! $$ Method for new product/ service introductionsDeclining$focus$on$opera9onal$(process)$improvements$ Business$Partners/$ Alliances$ 9,8 Business$ 25,6 Model$37,527,1 Informa9on$&$Interac9on$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%StageNumber of new products/ servicesPercentage of new products/ services4.4%Address57.4%1319.1%34.4%00.0%Transport11.8%3SortCRM & After Sales7.4%Package44.1% Deliver5CollectPrint 7.4%Print11.5%3044.1%811.8%68100.0%Frank & PayDeliver CRM AfterSales19.1%SumFrank & Pay! Conrma9on$of$trend$iden9ed$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 2Postal$operators$with$losses$in$the$FY$2010:$India$Post,$Japan$Post,$Jersey$Post,$Royal$Mail,$U.$S.$Postal$Service$ Conrmed$also$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)!sterreichische!Post!(Austria)!!!!!!!!!!Canada!Post!(Canada)!!Deutsche!Post!(Germany)!!!!!!!!!!!!Correos!(Spain)!42%$of$the$postal$operators$$ introduced$56%$of$new$ products/$services$ $1Par9ally$ahead$of$9me$$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$Social Memories (2011)11! Applica9on$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)$$Individual$(outstanding)$introduc9ons$Clout Shoppe (2009)! Online$luxury$store$for$clothes,$jewelry,$cosme9cs,$ etc.$(designer$brands)$ ! Some$brands$are$exclusively$oered$by$Clout$ Shoppe$as$usually$not$being$available$in$Singapore$ ! Mul9$device$access$Copyright 2012 Capgemini Consulting. All rights reserved.24$ 25. !!!!!!!!!!!!!!What!are!the!most!interes>ng!products!and!services!from!your!perspec>ve?$ Product$Highlights$(3/4)$$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$Post$nds$the$corresponding$address$for$ the$postcard$and$delivers$it$as$a$hardcopy$nugg.ad Adcloud intelliAd 1! Move$into$upstream$digital$added$value$stages$ItellaJapan PostNorway PostDeutsche Post DHLOne$example$per$category$ Copyright 2012 Capgemini Consulting. All rights reserved.26$ 27. Strategic$Learnings$ 28. What!were!the!overall!key!ndings!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$$ ! Operators$perspec9ve$ ! Primary$research$! New$products/$services$ ! Customers$perspec9ve$ ! Secondary$Research$Players!! Market$Shapers$ (well[organized,$low$prots)$ ! Market$Op9mizers$ (low[organized,$high$prots)$! Leaders$ (hunters$for$new$business,$pushing$digital$arena)$ ! Laggards$$$ (gh9ng$for$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!Capgeminis!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$quite$dierent$More!happening!than!customer/!sales!know!and!understand$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$in$ve$strategic$direc9ons$through$business$transforma9on$Postal Core MailDistribution Creation Make Selection Customer TargetingCommunication 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!eort?! 32. Have!you!missed!our!Digital!Transforma>on!Study!with!MIT?!! Have!a!look!at!the!ndings!! ! 33. Thank!you! Innova>on!!Transforma>on!!Postal!Services!3.0! Dirk Palder Vice President Member Global Postal-& Distribution Leadership-TeamCapgemini 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.comPlease Scan & Vote