20120912 tip lausanne dirk palder capgemini the status of postal services 3.0 - key findings second innovation study

The Status of Postal Services 3.0:
Second Postal Innovation Study

Taking a fresh look at new products/ services
in the global postal industry by putting
ourselves in the customer’s shoes

Key study findings / Capgemini Consulting

TIP Lausanne, 13 September 2012

Transform to the power of digital

Capgemini – the ONLY Global European Services Group in Consulting & IT
40 countries and 100 languages (As of December 31, 2011)

North America UK & Ireland France Benelux Nordic Countries Central & Eastern
9,505 8,977 21,307 10,391 4,538 Europe 8,962

Canada

United States All over Europe

United People’s Republic
Morocco Arab Emirates of China
Mexico Taiwan
India Vietnam
Guatemala
Philippines
Malaysia

Group workforce Singapore
Brazil
119,707
Working offshore
Chile 44,467 Australia

Argentina

Latin America Morocco Italy Iberia India Asia Pacific
9,176 431 2,381 4,942 35,727 3,370

Group Headquarters
Paris, France Copyright © 2012 Capgemini Consulting. All rights reserved.

Capgemini – a strong partner (2011 full year)

Cap Gemini S.A.” is a member of the CAC40,
Revenue 2011: €9,693 million listed in Paris
ISIN code: FR0000125338
 Operating margin : €713 million
 Operating profit : €595 million
Note: Our brand name is “Capgemini” but the name
 Net cash and cash equivalent : €454 million
of our share on the stock exchange is
“Cap Gemini S.A.”

Revenue by business Revenue by industry

Distribution & Energy, Utilities &
Consulting Services
Local Professional Transportation, Customer Chemicals
Services products, retail
5.3%
15.7% 12.7% 10.8%

Manufacturing
17.7% 20.8% Financial
Services
41.5%
Technology
37.5% 9.3% 4.4%
Services
Outsourcing Telecom, Media Other
& Entertainment
24.3%
Services

Public Sector

Copyright © 2012 Capgemini Consulting. All rights reserved.

Contents

Background

Key Findings

Examples

Strategic Learnings

Copyright © 2012 Capgemini Consulting. All rights
4

“The Status of Postal Services 3.0” is Capgemini’s second global postal
innovation study
General conditions of Capgemini’s 2nd study

Aim: Gathering in-depth know-how regarding the power of
innovation in the postal industry (continuation of a long-term
study serie1)

Reference book on new products/ services introduced between
2008 and 2010 in the postal industry to postal customers,
marketing 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 (particularly
Internet research) as would be available to customers searching for
products/ services

Additionally postal operators were asked to review captured data
(response rate: >40%)

1 Predecessor study is the 2010 Capgemini study “Innovation Management in the Postal Industry – the Key for Business Transformation“
6

Which areas did you cover from these postal operators?

Areas covered

Initial target areas: Identified areas:

Mail
Mail

Parcel
(including courier and express)
Parcel

Logistics
Additionally: (partially covered if new product/
 Special products for Logistics service introductions)
private customers
 Absolutely new
Mail business fields Financial products and services1
Finance
New
business
fields
Insurance products and services1
Insurance

Diversifying areas
(not representing traditional
Others postal products, e.g. car sharing)

1 Traditonal business for many postal operators

7

Which postal operators are covered in your study?

Study coverage – Four continents
Operators covered:1
Australia
Austria
Belgium
Canada
Denmark/ Sweden
Finland
France
Germany
India
Italy
Japan
Jersey
The Netherlands
Norway
Singapore
Spain
Switzerland
United Kingdom
USA
1 In alphabetical order

8

Which postal operators were the most innovative companies in the period
covered? 1
Number of new product/ service introductions by country (postal incumbent) from 2008-20102

22
Total number of new product/
service introductions at the
19 postal operators: 133

14
12
11 11 10 10
9

6 6
4 4 3 3 3 2
1 1 1
2 2 2

The top innovating operators are European. With 22 new product/ service introductions from 2008 to 2010 Swiss Post is
the leader in number of new product/ service introductions, followed by Italy (14) and Spain (12).

1 In terms of number of new product/ service launches
2 Operators that are early trendsetters (similar new product/ service launches before the year 2008) may be in a more worse position; these are for example Australia,
Denmark/ Sweden and Finland
10

Have you identified profound differences among the postal operators
studied according to their new product/ service strategy?
Classification from the perspective of moving ahead into Postal Services 3.0

New Product/ Service
Introductions1

High ? Leaders

Activist
Low

Laggards
Enhancing New
Low High Business2

Thereby, while some small operators were very active in introducing new products/ services for enhancing new business
(Leaders), others postal operators were not (Laggards).

1 Counted by number of new products/ services introduced from 2008 to 2010
2 Counted by number of new products/ services introduced in this category
11

How did you capture and evaluate the degree of new product/ service
introductions?

Framework – New Product Radar - WHAT

1 Digitalization

8 Information & 2 Making
Interaction Access
Easier

7 Business 3 Modernizing Legend: Concentration on new
Model Existing product/ service introduction:
Products/ High
Services
Medium
Low
Non-Digital
4 Enhancing/
Digital
New
6 Process
Business
Basic population each with:
5 Business  “WHAT”
Partners/  “WHY”
Alliances  “HOW

12

introductions?

Framework – New Product Radar - WHY

1 Digitalization

Interaction Access
Easier

Products/ High
Services
Medium
Low
Non-Digital
4 Enhancing/
Digital
New
6 Process
Business

13

introductions?

Framework – New Product Radar - HOW

1 Digitalization

Interaction Access
Easier

Products/ High
Services
Medium
Low
Non-Digital
4 Enhancing/
Digital
New
6 Process
Business

14

WHAT is the role of digitalization on postal operators’ business model
transformation?
Overall evaluation – WHAT

WHAT Lessons Learned

Degree of digitalization
of Core Products/
Services
Non-digital The world goes digital – the pace is postal services is
strongly increasing
46.5 53.5

Digital Similar digital efforts both for core business and
diversification
Degree of digitalization of
Diversification
Lack of sustainability in digital business models;
Non-digital
41.2 critical: total efforts for pushing digitalization
58.8

Digital

15

WHY do postal operators introduce new products/ services?

Overall evaluation – WHY

WHY Lessons Learned

Reason for new product/
service introductions

Leaving or changing the envelope
Modernizing Enhancing/
Existing Products/ New Business
Services 10.5
30.8 58.6
Access improvement (e.g. by multi-channel solutions)
Making
Access
Easier
Convergence & Solutioning still weak and non
consistent over different channels

16

HOW do postal operators implement new product/ service introductions?

Overall evaluation – HOW

HOW Lessons Learned

Method for new product/
service introductions

Declining focus on operational (process) improvements
Business Partners/
Alliances

Business 9.8 Process
Model 25.6 37.5 Increasing role of communication solutions and
27.1
business strategy (Big Data)

Information & Interaction
Rather MAKE than COLLABORATE and NETWORKING

17

How many introductions target the postal value chain and where?

Assignment of new products/ services to the stages in the postal value chain

Transport
Collect Sort
Stage Number of Percentage
Package new of new
1.5% products/ products/

Address 4.4% 0.0% services services
4.4% Print 5 7.4%
7.4%
Package 3 4.4%
Address 5 7.4%
Print 7.4%
44.1% Deliver Frank & Pay 13 19.1%
Collect 3 4.4%
Sort 0 0.0%
11.8% Transport 1 1.5%
CRM & After Sales
Deliver 30 44.1%
CRM – After- 8 11.8%
Sales
19.1% Sum 68 100.0%

Frank & Pay

 Confirmation of trend identified in 2011: decreasing activities in the core area
 Delivery still prevailing and dominant
 Starting to focus on the front-end (e.g. address) – though slowly

18

What are your learnings from Leaders?

Overall evaluation – LEADERS

Leaders Lessons Learned

Leaders hunt for new business

Leaders approach the communication solutions area

Leaders go ahead for digitalization
11% of the postal operators
introduced 27% of new
products/ services
Leaders explicitly communicate innovation power

19

What are the most interesting products and services from your perspective?

Product Highlights (1/4) – Individual (outstanding) introductions

• Application allows users to keep track of their
Social Facebook data via a customized book
Memories compiling social network data and visualizing
these with photos and info graphics; the book
20111 transforms users' social network information
into a lasting memory

1 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

21



• Online luxury store for clothes, jewelry,
cosmetics, etc. (designer brands)
Clout • Some brands are exclusively offered by Clout
Shoppe Shoppe as usually not being available in
2009 Singapore
• Multi device access

22



• Car-sharing scheme using purely electric cars
eShare • Customers are billed for the number of
kilometers travelled and the time-period of use
2010
• Registration can be completed by calling a
hotline or online

1 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

23


Product Highlights (4/4) – Introduction at several operators – one example per category
• Self-service parcel delivery and collection
terminals
SmartPOST • Flexible delivery option, especially for
2010 requirements of e-commerce Itella
• SMS with a locker code is sent when the parcel
is ready for pick up

• Sending mail online, which Japan Post delivers
Web Yubin
Hybrid Mail as a hard copy
Solution • Delivery at a desired time of the day (morning Japan Post
2008
or afternoon), tracking service allows to check
the delivery status of items

• The user sends a picture via MMS with
Postcard via personal greetings by entering the phone
Mobile number of the recipient Norway Post
2009 • Norway Post finds the corresponding address
for the postcard and delivers it as a hardcopy

nugg.ad
Adcloud • Move into upstream digital added value stages DP DHL
intelliAd

24

“The Status of Postal Services 3.0” based on Capgemini’s second innovation study:
Postal Service is transforming, but so far in a probing & learning phase
Key learning's from our studies

Going Digital including mobile “everywhere in the postal world”,
Intensity and focus (reason WHY is different ) still quiet different

More happening than customer/sales knows & understand

The MAKE culture still dominates instead of Ecosystems/Platforms

Missing link between initiatives internal and external
some Fashonitas, no Digiraties

The strategic vision and positioning of the transformation is weak

1 Predecessor study is the 2010 Capgemini study “Innovation Management in the Postal Industry – the Key for Business Transformation“
26

Key question to design the Postal Services 3.0:
What are you famous for, how to ensure profitability & who is your competitor?

Postal Market Spider Net: Which of the five strategic directions will profile your business transformation?

Core
Postal
Mail
Distribution
Creation
Make Selection

Customer Targeting
Communication
Fulfillment
27

Establish your desired perception
based on the fundaments of your core

Have you missed our Digital Transformation Study with MIT?
Have a look at the findings!

Thank you
Innovation – Transformation – 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

20120912 tip lausanne dirk palder capgemini the status of postal services 3.0 - key findings second innovation study

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