This document discusses developing business intelligence capabilities at postal organizations. It notes that postal organizations face declining mail volumes but growing package volumes, as well as increased competition. It then outlines that business intelligence is needed to support product and service decisions. The document describes evaluating USPS's business intelligence capabilities and identifying best practices from other organizations. It categorizes business intelligence into customer, market, and competitive intelligence. Finally, it discusses organizing business intelligence and moving forward with establishing capabilities at postal organizations.

1. Developing Business
Intelligence Capabilities
In The Postal Organisation
Bernard Markowicz, Ph.D.
March 2011
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2. The Changing Business Environment
Decline of reserved product volumes and revenues (-4%/year
for First Class in the U.S. (1))
Growth of packages (+3%/year in the U.S.)
Greater elasticity of competitive products (in average(2))
Increased competition and integration between marketing
channels (direct mail, email, broadcast, etc.)
business intelligence is needed to support products and
services decisions
(1) BCG Study for USPS
(2) Alan Robinson Study for Pitney Bowes – 2007-01
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3. Business Intelligence Investigation
In the fall of 2010, d/ap was tasked with evaluating
business intelligence capabilities at USPS
• Xerox • Pitney Bowes
Industry • Quad/Graphics • Best - Buy
USPS
Best
Interviews • P&G • Toyota of North America
Practices
• Gannett • Disney
• ADS - Epsilon • AT&T • Verizon
Canada • TJX - Chadwick – Zayre – HomeGoods
Post
Secondary
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4. Business Intelligence
• Customer segmentation (Attributes, needs, etc.)
Customer • Criticality of needs
Intelligence • Share of wallet
• Market characteristics
Market • Market trends
Intelligence • Players, value chains, participants, shares. etc.
• State of competition by segment
Competitive • Basis of competition (production, distribution, products)
Intelligence • Dependence on key product attributes
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5. Three Categories of Customer Needs
Outstanding Excitement Attributes Performance
(e.g., flat-rate boxes?) Needs (e.g., Price)
Customer Satisfaction
and Loyalty
Threshold Needs
(e.g., On-time Delivery)
Poor
Poor Performance Relative to Competitors Excellent
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6. The Business Intelligence Process
Collect & Sift, Sort,
Analyze Interpret Organize Present
Compile & Verify
• Customer • Data • Analytics • Trends • Dashbrd • Communi
Surveys cleansing • Integrate • Identify • Roadmap cation
• Market • Reduce internal/ gaps & • Segments playbooks
Research size of external opportuni- • Focus on
• Experts data • Score ties results Analyze
• Events, • Needs vs cards • Predictive • Support
Pubs behaviors • SWOT analysis decision Search
• Database • Mini DW making Index
/Systems
Filter
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7. The Business Intelligence Process
Collect & Sift, Sort,
Analyze Interpret Organize Present
Compile & Verify
conversion of information
to insight
Key Intelligence Topics
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8. Key Postal Intelligence Topics
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9. Business Intelligence Instruments
senders receivers
• Industry Assessments • Household Diary Study (USPS)
(Analyst reports, Press, Events) • Media panels
• Retail data mining • Focus Groups
• Acceptance units data mining • Satisfaction Surveys
• Satisfaction Surveys • Direct mail response tests
• Focus groups
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10. Organisation of Business Intelligence
DECENTRALISED CENTRALISED
Domestic Int’l Domestic B/I Int’l
Finance Ops Finance Ops
• Immediate and direct access • Better data integration value
• Facts closer to decisions • Analyst cross-training
• Low value data marts • Help build “Intelligence
• Idea silos consensus” across enterprise
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11. Moving Forward
Business intelligence is now a requirement for postal
operators
Accepted Encouraged Required
Identify key intelligence topic and develop briefs
Establish an “intelligence” consensus - Look for early wins
Gradually bring together resources in a centralised unit
Learn to develop insights from, and beyond information
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