Innovation ICT

ICT Technology Innovation
Changing from within
Dirk De Boeck (BP BIZ) & Tim Groenwals (IOS)

Content
1. Rationale & basic types
2. Setting the scene
3. Internal ICT Technology Innovation & Improvement
4. External ICT Technology Innovation & Improvement
5. Organization & Portfolio
6. Communications slide
ICT Technology Innovation – Dirk De Boeck & Tim Groenwals – July 2011 2

Basic rules
It can be done in a
lean way
Competitors have a
head start
We over-estimate
the speed of change
but under-estimate
the impact
Not understanding
the business means
failing to adapt fast
enough
ICT changing on the
inside prior to
inventing for the
outside
Not solo in our little
corner

Competitors / other posts have a head
start (1/3)

start (2/3)

start (3/3)

8
© bpost – ICT Technology Innovation – Tim Groenwals - Internal DRAFT
Technology PUSH innovation involves IT
scanning for emerging technologies that can
be “pushed” into the business
Technology PULL innovation starts with the
business “pulling” technology into it to
address opportunities
Source of definitions : Gartner

3 types of Technology Innovation
Radical Technology
Innovation
Fundamental changes,
entirely new products and
solutions
Incremental
Technology Innovation
Improvements on radical
innovations,
creating big benefits on
existing successful solutions
Technology Innovation
by Reapplication
Existing solutions applied to
other domains,
bring fast time to market

Are there quick win area’s to
investigate before end 2012?
Radical
Incremental
Reapplication
ICT Techno
Push
ICT Business
Pull
Technology Innovation with focus on fast time to market

What as of 2013?
Radical
Incremental
Reapplication
ICT Techno
Push
ICT Business
Pull
Technology Innovation with focus on fast time to market

“Technology Innovation is business evolution for
survival. Standing still is moving backwards.”
(D. De Boeck & T. Groenwals)
“Innovation is a process where you convert
creativity into added value faster than your
competition”
(Y. Remy)
Smart remarks

A number of internal ICT
quality levels and SLA’s
are not in synch with the
market standards.
ICT Service & solution
portfolio of bpost tends to
become outdated faster
than we want, even before
we really used them at full.
What a waste of basic
investment.
Not all internal service levels
are balanced with end customer
requirements.
An inconvenient truth
Is it logical, with all our virtualization solutions, that it still takes 6
weeks to launch a server?
Is it acceptable that software requests still need to be processed
manually?
Why is video conferencing still not possible over the network, while
it has become a market standard in all other industries?

Setting priorities
2011-2013: 70% will focus on WITHIN
ICT needs to reflect first on its
INTERNAL Technology innovation
prior to dream about EXTERNAL
Technology innovation.
ICT Service & solution portfolio of bpost tends to become
outdated faster than we want, even before we really
used them at full. What a waste of basic investment.
2013-2015: 70% will focus on
the MARKET
Guiding ICT in Technology Innovation to improve our service
level will continue
More and more focus on EXTERNAL trend watching too
ICT gradually becoming a FEED into business for new ideas
Advise on technology enhancements to raise service levels
on all standard operations which are sold to end customers
Hookup with existing innovation circles lead by BUSINESS
(ICT must not become solo player at this point)
Increase our ICT market conformity thus increasing our
selling credibility
Engage in trend watching for INTERNAL improvement, and
only then for EXTERNAL
2015-2020: ICT to be an
equal business driver for our
bpost market expansion,
incl. becoming a recognized
business consultant towards
our end customers.
Long term vision
70/30 will always adapt
when business changes
our priorities
It’s never Black and
White

Concrete actions
Map every ICT service in the portfolio on a technology maturity grid (maturity meaning contributive to
performance and service)
Categorize them according to their impact on customer interfacing / customer collaboration
Define needed technology enhancements / or re-modeling for a service level raise on the ones with
highest customer interfacing profile
Improve and enhance our technological building blocks which lead to a measurable better service to
end customers
Propose new ICT solutions, based on business innovation triggers, and aligned with GROWTH (not solo
in our corner)
Propose where to drastically improve our existing technological solution (to have better customer
interfacing & SLA’s, use less FTE’s and become cheaper overall)
There will be 5 key activities (see further)
5

Internal ICT
Technology
Innovation &
Improvement
17

Confirmed by customer as
“needed”
bpostTechnological
Maturityleveltoday
HIGH
HIGH
LOW
LOW
Priority for
Technology Innovation & Improvement
Cancel or buy external
Innovate if business case exists
Re-build into other services
Sustain & develop
commercial texts for it
ICT Technology Maturity Grid (start)

ICT Portfolio Maturity Grid (target)
Make if we can ourselves
Buy or with partners if we can’t
Buy external
what remains
Keep only things which have evolved
Enhanced and innovated new
core service portfolio
INTERNAL
Confirmed by customer as
“needed”
bpostTechnological
Maturityleveltoday
HIGH
HIGH
LOW
LOW

Remain realistic and keep a focus at
all times. Star Trek is only a TV
show.
20

Business
Innovation
Architecture
Projects
Services
OPS
Governance
As-Is Prioritize
Define
new
maturity
levels
Feasibility
& Definition
Budget
Process & Planning Watchdog / Process Compliance
Solution
Design
Acceptance
& Progress
Build &
Release
Planning
Review
Surveill.
Provide
Run &
Maintain
Collaborate
until transition
and Architectural “Go”
Handover to Arch.
Sign-on Sign-off (PID)
Innovation in the ICT roadmap
INTERNAL

Process: Internal ICT Technology
Innovation
List existing ICT
catalogue
Award a maturity
level for each item
Prioritize which
items to innovate
Define new maturity
levels for each item
Prioritize which
items to innovate
Feasibility check
Budget check
Handover to
architecture
Services
Services / Business
Business / Projects
Business
Business / Projects
Architecture
Projects
Architecture
Treat as a project
(2 per year)
Projects
ACTION INVOLVE ACTION INVOLVE

External ICT
Technology
Innovation &
Improvement

Hooking up with GROWTH
See also GROWTH (Yves Remy)
Collect from business all postal offerings with focus on growth & improvement where
ICT plays a part

Business in the trigger seat
Business to decide where ICT must be involved in developing or
adopting new / better solutions
Which may contribute to turn Question Marks into Stars
Which let Dogs die off with best in class cost control
Where to contribute in Re-applied Innovation of existing things
Where to contribute in possible Incremental Innovation
Focus in improving ICT to become a better sales argument
Focus on what exists first
It’s better to innovate an existing winner,
than to invent a new loser

Technology Innovation enablement
Idea’s
Creativity
Change
Culture
Business
Insight
Adaptive
Assets
Required investment
InnovationEnablement

Example of an adaptive asset
“Unified Track & Trace”
Core app
Core data
Adaptive elements,
based on usage
requirement
of the moment
Barcode format
reading
Portals
Contracting at the
door
End delivery point
changer
Customer
Connectors
Connect OUT
Connect IN

Where Technology Innovation creates
VALUE for survival
0
10
20
30
40
50
60
70
Cost
Future Value
RUN
(ops)
WIN
(projects & services)
CHANGE
(innovate)
Peter Hinsen
Competition sells very well what they don’t have
We have the stuff, but don’t sell it aggressive enough

Portfolio
Research Lab
Trend
Watching
Business
Consulting
Competition
Intelligence
Customer
Interfacing

Practical: how we are organized
Permanent
Innovation
Members
Members
borrowed from
Architecture
Other borrowed
ICT members
Business
Sponsors
Dedicated Assignment
based
Assignment
based
Assignment
based
RULES OF WORK
Independent
functioning to
guarantee enough
visibility
Uses existing
people from
Architecture upon
request next to an
own minimal team
Subject or product
based, NOT AD
HOC
ICT INNOVATION BOARD
ICT Innovation
Manager
Chairs
Assembles
Relationship
Partners
Customers
In very
specific
cases and
in the
event of
specific
topics

Blocks – Research Lab
32
Research Lab
After testing (via POC or in the lab), the requirements are handed over to ICT projects
A virtual team with engineers will be created
What we do :
-Specify technology requirements
-Evaluate test reports
-Final judge on success of all
technology aspects within a POC
Deliverables :
-Test report weighing & evaluation
-Technology requirements
-Input for business cases (benefits)
-Proposal for technology standards
Mission :
Test new technology to define the
requirements for maximizing value in
terms of efficiency, automation, and
longterm technology stack
Technology
Innovation teams
from BU
ICT Design &
Architecture
BU operations
ICT Projects
Specify the requirements
for innovation projects
ICT Design & Architecture
Specify the
requirements for
innovation architectures
or proposing standards
11/07/12 – ICT Technology Innovation – Dirk De Boeck & Tim Groenwals

Research Lab - example
Question about
possible SaaS
for Track &
Trace
Capture business
drivers &
requirements
Build test script
(with business)
Define tech
environment
needed to
perform test
Setup test
environment
(with supplier)
Test the product
or organize
supplier POC if
required
Test report &
recommendation
to requestor
Close down test
environment
Liberate
borrowed
resources
Business Business
Business (if
needed)

Blocks – Trend Watching
Trend
Watching
What we do :
-Market studies on new technology
with potential benefit for bpost’s
activities
- attend vendor sessions, seminars,
peer groups
-Look for substitute markets
Deliverables :
-Technology Heat Map
(~hype cycle)
Mission :
Look for new technologies which can
enable new product developments or
iniatives in BU & ICT
Market Intelligence
Competition
“ideabox”
Vendors
“Research Lab”
valid candidate for POC or
test
Innovation teams from BU
inform on new trends,
hypes or capabilities of
technology
First 2 years, focus 70% on business contribution and 30% on ICT contribution

Trend Watching - example
Bring Your Own
Device hype in
the market
Investigate
added value for
bpost
Deposit first
SWOT to
selected
business
representatives
ICT
Business involved
Approve time to
invest
Market study &
technical
analysis (incl.
product tests)
Innovation Board
Recommend or
kill potential
future adoption
at bpost
Goto Research
Lab
Innovation Board
Goto Project
mode if
necessary

Blocks – Competition Intelligence
Competition
Analysis
What we do :
Reverse engineering of
competitive solutions
Capability analysis
Forensics (why they win deals)
Competitive alliances
Deliverables :
-Comparative solution map bpost vs.
Competitors
-SWOT per competitor for specific
RFP work
-Possible differentiators for bpost
when developing / improving
solutions
Mission :
Make sure bpost remains at equal
pace, or better than the competition
through specific features our
competitors lack and bpost
possesses.
Customer
Business Unit
Partners
Research Lab
Business Partners
Business Unit Mgt
CIO
Architecture
Teams working on RFP’s
Marketing
First 2 years, focus on specific analysis for intel in our RFP’s

Competition Intelligence - example
Hypothetic:
Belgacom
offers FEM
solution with
HP as central
system.
Chart the HP
solution
compared to the
solution of IBM
(bpost partner)
Identify specific
added value of
Belgacom telco
offer combined
with HP
Partner involved
Comparative file
with all
strengths and
weaknesses.
Develop
commercialblock
s to better
position
bpost/IBM
Innovation Board
Propose
innovative or
enhanced
features to the
bpost proposed
solution
Goto Research
Lab for POC (if
needed)
Innovation Board
Handover to
business
Business
Partner involved

Blocks – Business Consulting
38
Business
Consulting
What we do :
Investigate technology or
operational innovations /
enhancements + develop
commercial wrap around it
Customer convincing
Keep Business Units up to speed
on technology and possibilities
Deliverables :
-Business cases
-Customer presentations
-Advice on choosing the right
partners & platforms
-Visioning and landscape forecasting
-Advice & insight in Innovation
contribution of acquisition targets
(incl. ICT Audits)
Mission :
Provide adequate translation of
technology innovation or
enhancements into benefits for the
customers.
Be a commercial advisor on the
latest ICT solutions
Partners
Research Lab
Customer requests
Trend Watching
Deal Architecture
Business Partners
Business Unit Mgt
Sales
Customer
Partners

Business Consulting - example
Acquisition of a
company
Prepare due
diligence of ICT
part to check
contribution to
bpost’s
Innovation
Launch our
requiremen,ts
for data room +
define weighing
factors per item
Business involved
ICT audit +
findings report
Risk analysis +
recommendation
Briefing to
receiving ICT
unit at bpost
Develop high
level transition
plan
Handover to
business and to
the receiving ICT
unit
Business
Business involved
Services involved

Blocks – Customer Interfacing
Customer
Interfacing
What we do :
Define the external organization of
our ICT
Business alignment
Advise on technology enhancement
for SLA improvement
Deliverables :
-Better and new interfaces between
our ICT and the customer
-Improved processes inside ICT to
deliver the interfaces
-Improved SLA levels with better
commercial hit rate
-Unified logistics (simplier systems
for barcodes, identifiers, labling, …)
Mission :
Innovate bpost’s ICT contribution to
the business by remodeling and
building the ICT linking pins into the
customer’s business, which he can
clearly recognize, and for which our
invoices will be justifed.
Customer
Business Unit
Sales
Operations
Technical Design
Enterprise
Architecture
Business Unit
Sales
Customer
Business Consulting
Technology partners

Customer Interfacing - example
EDI + data
collection
engine needed
for Shop &
Delivery
Go to
Competition
Intelligence of
applicable to
investigate
competition
Capture business
requirements
Partner involved
List the gaps in
current
capabilities
List new usages
& functionalities
mapped to the
commercial
requirements
Priority setting &
roadmap for all
new customer
interfacing
functionalities
Assist in writing
PAC business
case for
innovative
development
Handover to
projects if PAC
approves
Business
Business involved
Complete
handover to
Architecture
Architecture
involved
Architecture
involved

Example of KPI’s for ICT Innovation
1. Develop 60% of POC’s with a positive commercial result (end
2012) and 80% (end 2015)
2. Align 2 external oriented SLA’s per annum with the ruling market
standard, or deliver a documented motivation for outsourcing
3. Develop 2 commercial wraps (text or presentation format) around
existing integrate-able ICT solutions
4. Contribute to the increase of our external revenue volume by 5%
per annum for all non-traditional mail services, as of 2013.
5. Obtain recognized visibility of ICT’s innovative contribution with at
least 2 BU’s by end 2013.

Declaring success, internal customer
satisfaction and measurement
• Per Innovation project 5
main criteria to be
defined by business
• Weight factors 1 to 5
• ICT knows upfront what
they will be measured on
in an Innovation track
• Objectivity guaranteed
• Making Innovation
deliverables measureable
• Using one simple
document

Candidates for potential tech innovation
Cloud Services
Unified
eCommerce
Platform
Customer
Centric
Interfacing
Standards
Unified Track &
Trace (already
started)
Unified
Communications
& Collaboration
(incl. customer
interfacing)
The best deals on the market all required
Re-applied and Innovative Solutions
(FEM, ELP, Electronic Driver Licenses,
Shop&Deliver, …)
But based on: Standardized Building Components

Realism
We believe
we can
handle 2
internal and
2 external
Innovation
Projects per
annum
On the
condition
the
resources
are made
(and kept)
available
Dedicated
needed:
1 PM
1 Comp.
Analyst
1 Lab
Researcher
Business
Consultant
can ad hoc
also be
external
Focus is key
!

Where in ICT
Projects
Services
ICTArchitecture
Governance
ICTInnovation
Systems&
Infrastructure
Independent position in ICT
Guarantees exact match
between Business
Requirements and the design
Creates visibility (Koen Van Gerven)
Composition by ICT
Minimal fixed team
Further flexibly staffed
innovation case by case, or
technology specific (guarantee
needed by other departments
of availability)

What ? Why consider it ?
On Demand Computing
- Self service IT -> infrastructure
is provisioned on demand
- Pay per use -> detailed metering
and billing of IT infrastructure
- Elasticity -> increase or decrease
IT resources when needed
- Huge cost reduction:
- End to end datacenter
automation
- Elimination of over-
capacity to cope with peak
load
- Optimize processes & allign
business with IT
What if not done ? Features/added value
- Continue lenghtly provisioning
process (current SLA=6 weeks)
- Continue expansion of self
owned storage, servers
- Expand datacenters, ...
- Lot’s of effort in non core
business tasks
- Deliver infrastructure in minutes
- Automation tools can be used to
handle almost all labour
intensive tasks
- Automate decomissioning of
hardware
- Provide services to customers,
not hardware
Examples: Cloud

Enable employees to use any
hardware to do their work (both
hardware owned by bpost, and
employee owned hardware). This
includes PCs, but also mobile devices
like smart phones and tablets
- Reduce cost by highly reducing
PC related interventions
- Work anywhere, anytime
- Freedom of choice: motivation
boost
- Global worldwide trend: bpost
image
- Fully locked, company owned
desktop is very expensive
(packaging, support), ...
- Productivity drop (ex: no use of
mobile devices)
- Archaic image of bpost in near
future
- One synchronized environment:
main desktop runs in datacenter
- Much larger application toolset
available to customers, instant
access to applications and
updates
Examples: Consumerization of IT

Set of technologies that automates and
unifies human-human/device
communications and collaboration in a
consistent user- interface and experience
across multiple devices and media types
- Reduces contact latency by optimizing
communications flows
- Increases productivity & business
efficiency
- Superior customer service
- Cost reduction (travel, roaming, real
estate)
- Eliminates any device and media
dependencies (Work from anywhere, at
anytime, anyhow)
- Mobility keeps limiting work time
(location dependant work)
- Not attractive for high (young) potential
- Suboptimal contact success rate
- Higher time to market
- Increasing lack of competitiveness &
customer/worker frustration
- Archaic image of bpost
- Dynamic collaboration workspaces
(internal & external)
- Single number reach
- UC integration in business applications
- Web conferencing / Telepresence
- Skills based contact search
- Customer remote or web appointments
- Enterprise social networks
Examples: UCC

Types of technology innovation when
using alliances
Zone 2
Strategic
alliance or
sector
consortium
Zone 3
Multi-company
innovation
networks in
complex
product
systems
Zone 1
Sector forums,
supply chain
learning
programs
Zone 4
Regional
clusters, “best
practice” clubs
Similar Heterogeneous
Radical
Innovation
Incremental
Innovation
Source: Adapted from Tidd, Bessant and Pavitt, 2005

So what does this mean?
ICT Innovation must have a business carrier and an operational improvement carrier.
Without them, innovation is not an asset.
First IMPROVE a winning internal service
Only then INVENT a new horizon
Remain realistic. We work for business, and we are not an invention agency
Question each product. How much ICT is a future product really?
Remain realistic: shifting the balls in the quadrant can be very small
Two major KPI’s matter:
•Improved customer satisfaction through better interfacing
•Increased win chances for new deals

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