Impact of digitalization on africa postal services chances


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Is Africa attractive and ready for a digital transformation?
How fast is Africa going digital?
What are the logistics chances and needs of Africa?
Which role could a postal operator play in the digital future?
Which trends are driving Africa into a next generation
Which strategic option a postal operator should analyze?

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Impact of digitalization on africa postal services chances

  1. 1. Impact  of  Digitaliza7on  on  Africa  as  a  Chance   for  Post  Operator  to  serve  the  Na7on   Dirk  Palder   Vice  President   Global  Transforma7on  Officer   Customer  Experience  &  SM-­‐Management   &  Head  Postal  Service  Industry     Forum  Postal  Africain  November  2013   Marrakech,  Maroc   Transform  to  the  power  of  digital  
  2. 2. Is  Africa  going  digital?  
  3. 3. First:  How  is  Africa  developing  overall?   AVrac7ve  growth  and  the  middle  class  as  the  base  for  eCommerce  ac7vi7es  
  4. 4. African  trade  flow  overview:  Growing  quiet  nicely,  but  could  be  stronger  with  more   connec7vity  (digital  and  logis7cal)   Africa’s    World  Exports  in  USD  Billion   Africa’s  Total  Trade  in  USD  Billion   1096,1   1038,4   Africa   805   346,99   441,7   549,8   148,6   150   595   589,1   772   671,7   277,1   284,4   Africa   951   186,1   243,1   310,1   380,9   447,8   506,3   389,8   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   Africa’s  Top  5  ExporHng  Countries  in   order  of  ranking   128,5   134,5   160,9   198,6   239,7   Egypt   Algeria   Angola   Egypt   357,2   444,7   South  Africa   Angola   449,3   Nigeria   Algeria   Africa   Africa’s  Top  5  ImporHng  Countries   in  order  of  ranking   South  Africa   Africa’s  World  Imports  in  USD  Billion   Morocco   501,1   382,2   290,8   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   Source:  Africa-­‐Asia  trade  versus  Africa’s  trade  with  the  North:  Trends  and  trajectories     Rank  1   Rank  2   Rank  3   Rank  4   Rank  5   Copyright  ©  2013  Capgemini  Consul7ng.  All  rights  reserved.   4  
  5. 5. African  trade  flow  overview:   Africa  and  Europe  are  dominant  trade  driver,  but  Asia  is  growing  fast.   Africa's  total  trade  with  various  regions  compared  in  USD  Billion   2000   Total  Trade   Africa's  total  trade  with  Asia   Africa's  total  trade  with  Europe   Africa's  total  trade  with  USA   Intra  Africa  Trade   1800   1600   1400   1200   1000   800   600   400   200   0   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   Source:  Africa-­‐Asia  trade  versus  Africa’s  trade  with  the  North:  Trends  and  trajectories     Copyright  ©  2013  Capgemini  Consul7ng.  All  rights  reserved.   5  
  6. 6. eCommerce  eTailing  needs  crucial  mass  and  capability  in  logis7cs.    
  7. 7. Logis7cs  Movements  with  Road  Poten7al:  Intra  Europe  Market  has  biggest   trade  volumes  than  intra-­‐  Asia  and  inter-­‐Europe,  but  Africa  is  catching  up.   Inter  and  Intra  –  Con7nental  Trade  (USD  Billion)   Direct  access  by  road   330   416   956   524   808   3996   184   177   148   89   2464   471   198   62   =  inter-­‐regional  merchandise  trade  (in  billion  dollars)   Source:  WTO  Interna7onal  trade  sta7s7cs  2011   =  intra-­‐regional  merchandise  trade  (in  billion  dollars)   7  
  8. 8. Cross  boarder  trade  need  a  cheap,  fast  reliable  and  flexible  network  and  a  central   coordinated  network  management  (IT  based)   MUST  have  to  build  cross  boarder  trade  plakorms   1   Road transportation will be crucial for growth 2   Reliable: GPS controlled, scheduled for forecasting 3   FAST and secure: Pre-Custom clearance 4   Containered: Fast and secure exchanged 5   Network Controlled: Dynamic optimized via central IT 8  
  9. 9. But  there  is  more  to  say:   Internet  diffusion  in  Africa:  “Yes,  the  lights  are  going  on”  
  10. 10. Nigeria  is  ranked  top  amongst  the  African  countries  for  the  number  of  Internet  users  in   millions  followed  by  Egypt  and  Morocco   E-­‐Commerce  in  Africa  (I/III)   Africa:  Top  Internet  Countries,  Rank  1-­‐10,  by  million  Users,  In  December  2011   0 5 10 15 20 25 Nigeria 30 35 40 45 45,0 Egypt 21,7 Morocco 15,7 Kenya 10,5 South Africa 6,8 Tanzania 4,9 Algeria 4,7 Aganda 4,2 Sudan 4,2 Tunisia 3,9 In  million  Internet  Users   African  E-­‐Commerce  Scenario   § Although  Nigeria  leads  the  African  na7ons  with   highest  number  of  internet  users,  followed  by   Egypt  and  Africa,  South  Africa  is  the  country  with   B2C  E-­‐Commerce  plakorms   § The  factors  curbing  online  retail  for  African   Na7ons  are:   – Low  internet  penetra7on   – Focus  on  cash  transac7on   § Mobile  payments  have  become  increasingly   popular,  promo7ng  B2C  E-­‐Commerce  growth   Source:  Internet  World  Stats  2012,  Market  and  Research  Report   Copyright  ©  2013  Capgemini  Consul7ng.  All  rights  reserved.   10  
  11. 11. Mobile  is  crucial  for  Africa  –  Always  ON     and  smart  phones  could  leapfrog  
  12. 12. In  Africa,  the  Mobile  data  traffic  is  projected  to  grow  79%  from  2012  to  2017,  will  lead  to   rise  in  mobile  payments  in  African  countries   E-­‐Commerce  in  Africa  (II/III)   PB-­‐  Petabytes   Source:  Cisco  VNI,  2013,  A.T.  Kearney  Analysis   Copyright  ©  2013  Capgemini  Consul7ng.  All  rights  reserved.   12  
  13. 13. African  region  has  seen  significant  developments  in  mobile  payment  in  recent  years  with   number  of  ini7a7ves  highest  in  Sub-­‐Saharan  Africa   M-­‐Commerce  in  Africa  (III/III)   Mobile  Payment  Developments   §  Mobile  payment  apps  in  South  Africa:     – South  Africa’s  mature  retail  money  transfer  is  taking  next  step  in  mobile  payments  evolu7on  by  introducing  mobile  apps   –   In  early  2013,  Absa,  the  country’s  largest  retail  bank  added  mobile  app  to  the  other  op7ons  available  to  the  customer   §   Smartcards  in  Nigeria:   – Mastercard  has  also  laid  the  founda7ons  for  an  electronic  payment  systems  in  Nigeria,  working  with  Nigerian    Na7onal  Iden7ty  Management   Commission   §  Cross-­‐border  mobile  payments  in  West  Africa:   – In  July,  2013  Orange  announced  the  launce  of  Orange  Money  Transfer  service  which  will  be  the  first  mobile  money  service  opera7ng  across   more  than  two  African  countries  namely  Mali,  Senegal  and  Cote  d’lvoire   §  Mobile  Wallets  in  Egypt:   – Mobile  wallet  service  launched  in  June  2013  by  MasterCard,  Na7onal  Bank  of  Egypt  and  Mobile  Operator  E7salat   Source:  GSMA,  Amadeus   Copyright  ©  2013  Capgemini  Consul7ng.  All  rights  reserved.   13  
  14. 14. eCommerce  is  Taking  off  
  15. 15. Online  Retail  is  strongly  growing,  e.g.  SA  
  16. 16. eCommerce  Plakorms  are  developing  fast  all  over  the  con7nent  
  17. 17. eCommerce  fullfilment  is  already  successfull  done,     As  Full  Services,  but  does  the  Postal  Services  a  common  answer?  
  18. 18. Entrepreneurship  and  VC´s  crea7ng  new  companies:   Are  the  Postal  Services  connected  and  collabora7ng?  
  19. 19. The  venture  market  and  young  entrepreneurs  are  driving  forces  for  Digital   Africa.  Are  you  part  of  it?  PPP  -­‐  Public  Privat  Partnerships  
  20. 20. Key  Ques7on  for  Africa’s  Development:  In  which  business   should  Postal  Services  invest,  what  should  be  their  Core?    
  21. 21. Postal  Operator:  Where  are  you  famous  for  and  who  is  your  compe7tor?   Postal  Market  Spider  Net   Core   Postal   Mail Distribution Creation Make Selection Customer Targeting Communication Fulfillment 21  
  22. 22. You  have  the  choice  –  but  you  should  define  systema7cally  your  market  and  brand,  be   relevant  build  value:  e.g.  BMFO  method  –  Building  Market  Focused  Organiza7ons   Poten7al  Postal  Service  3.0  –  Scenarios:  Defining  the  WHAT   1   THE integrated e-fulfillment provider of the country (e.g. InPost/ Singapore, Australia, Malaysia Post) 2   THE Governmental BPO partner by nature 3   THE service broker for SMEs/consumers (butler) 4   THE privacy and data hub for… 5   THE the last mile delivery partner for eCommerce 22  
  23. 23. In  our  new  study  we  iden7fied  that  the  postal  industry  is  moving  towards  a  Postal  Service   3.0  sneaking  and  inconspicuous   Key  findings  Postal  New  Product  Study   New  product/  service   introduc7ons  are   nontransparent  and   inconsistent  for  the   market   The  nontransparent  product  strategy   fosters  the  thesis  that  the  postal   industry  is  moving  ahead  into  a  Postal   Service  3.0   29%  of  new  products/  services  were  for   “Enhancing/  New  Business”  and  17%  were  in   the  Business  Model  dimension   In  par7cular,  small  European  “hidden”   postal  operators  are  leaders  in  introducing   and  marke7ng  new  products/  services   Swiss,  Austria  and  Belgium  were  iden7fied  as   outstanding  innovators   Source:    Capgemini  Consul7ng,  The  Status  of  Postal  Service  3.0,  Cologne,  2011   23  
  24. 24. Dirk  Palder   Vice  President   Customer  Experience  and   SM-­‐Management   &  Head  Postal  Service  Industry   Phone:  +49  151  4025  2222   E-­‐Mail:   TwiVer:            @DirkPalder   LinkedIn:    Dirk  Palder   • INNOVATION   • TRANSFORMATION   • POSTAL  SERVICES  3.0