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Why Posts Are Able to Become Leaders in Innovation & New Technologies

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Why Posts Are Able to Become Leaders in Innovation & New Technologies the Postal Industry, Innovation & Markets Vol. 4 | Issue 1 | 2016 Why Posts are able to become leaders in innovation & new technologies Conten t Editorial THE PUBLIC PRIVATE PARTNERSHIP PATH 3 Robert A. F. Reisner Driving innovation in big organizations is a real challenge and studies show that many struggle POSTAL REGULATION OR POSTAL 6 or fail when they try to implement an innovation INNOVATION? architecture. But why is that so and how can Prof. Matthias Finger posts accomplish something where so many others fail? IMITATION VERSUS INNOVATION 8 Adam Houck The recent roundtable jointly organized by the Postal Innovation Platform (PIP) and the U.S. TURNING AN AIRCRAFT CARRIER 9 Postal Service Office of Inspector General (USPS Jake Thomases OIG) tried to shed light on this question. Posts FROM INNOVATION TO POLICY that have created an innovation architecture 12 and other companies with a track record in inno- Kathy Siviter vation joined the discussion to analyze what A NEW INTRAPRENEURSHIP & CUSTOMER 15 tools and strategies can lead to a successful in- CENTRICITY ARCHITECTURE FOR POSTS novation management and thus drive growth Bernhard Bukovc and bring the company closer to its customers. Read some of the results in this new edition of NEW REFERENCE FRAMEWORK HELPS POSTS 17 our Postal Industry Newsletter. TO SUCCESSFULLY IMPLEMENT IOPT Freek Smoes In addition, learn more about the topics and discussions during the PostalVision2020 Confer- INNOVATION IN AN POST 19 ence which have shown that the postal sector is John McConnell engaging with increasing speed in new technolo- gies, new solutions in eCommerce and cross- USING INTERNET OF THINGS (IOT) 20 border business. TECHNOLOGY Patrick Armstrong It is difficult to implement groundbreaking changes in large organizations, in particular THE MIKE TYSON EFFECT 22 when they come with a history embedded in Francois Eijgelshoven government structures. However, most posts are turning around their organizations success- fully and some are even setting new standards in innovation and customer centricity. the Postal Industry | The Postal Industry newsletter provides original analysis, Enjoy reading our newest edition of the Postal information and opinions on current issues. The editor establishes caps, hea- dings, sub-headings, introductory abstract and inserts in articles. He also edits Industry Newsletter. the articles. Opinions are the sole responsibility of the author(s). the Postal Innovation Platform (PIP) is a unique open platform and forum that focuses on innovative postal services and studies the future of the postal indus- try with a solution oriented approach. It provides a conference, think tank and Dr. Bernhard Bukovc research platform that is unique in the postal world and shall ease the imple- Chairman, Postal Innovation Platform mentation of new and innovative postal business solutions. Subscription | The subscription is free. Please do register at <http://mir.epfl.ch/ [email protected] newsletter> to be alerted upon publication. Letters | We do publish letters from readers. Please include a full postal address and a reference to the article under discussion. The letter will be published along with the name of the author and country of residence. Send your letter (maximum 450 words) to the editor-in-chief. Letters may be edited. Publication director | Matthias Finger Editor in chief | Bernhard Bukovc Publisher | Chair MIR, Matthias Finger, director, EPFL-CDM, Building Odyssea, Station 5, CH-1015 Lausanne, Switzerland (phone: +41.21.693.00.02; fax: +41.21.693. 00.80) email: <[email protected]> Website: <http://postal-innovation.epfl.ch/> Published in Switzerland 2 Dossier The Public Private Partnership Path - Will a Changing Marketplace Offer New Opportunities for Value Creation for the Posts? Robert A. F. Reisner * The concluding panel of the Postal Innovation Platform (PIP) Conference in September 2015 in Geneva addressed the subjects of Big Data and Public-Private Partnerships. This has been a particularly timely subject for posts around the world. During the course of the PIP Conference there were multiple opportunities to re-visit the com- mon problems facing posts as markets continue to be transformed by digital technologies. Multiple studies have documented the way that posts everywhere are now confronting the implications of serving mailers and consum- ers who have new tools with which to facilitate purchase decisions and mailers who are creating new digital mar- ket offerings. The result has often been a decline in traditional revenues for posts. These large scale, labor inten- sive institutions whose histories begin as governmental enterprises are all facing the consequence of needing to adapt to changing markets that are testing their ability to be agile. Today, the posts, whether public agencies or privat- streams into new sources of insight. ized enterprises, are facing common pressures to As technologies for drawing insight from large, his- generate new revenues and provide more cost ef- torically unmanageable data sets has emerged, fective service. Yet in the midst of these pressures, posts throughout the world have recognized that there are opportunities for renewal. As the era of there are multiple data streams that can yield value Big Data has emerged, there has been wide scale for their customers and others – whether the issue speculation that this might offer potential opportu- is a marketing and customer facing challenge such nities to the posts. There is an irony in recognizing as gaining new insight into consumer demand, that some of the same digital technologies that identifying new potential customers, connecting have made transformation of the posts an impera- back end supply chain insights with front end mar- tive might also offer new opportunities for solving keting demands, exploring customer journeys problems. But this conversation is more than the through multiple touch points – there is a wealth of latest panacea. opportunity for the posts to be major players in this emerging field on behalf of their customers. One of the reasons that this discussion has seemed to be such a promising development is that posts In the US, the creation of the Intelligent Mail bar- are inherently Big Data organizations. Since posts code (IMb) has made it possible within the last 2 are among the largest organizations in the world in years for the USPS to gain visibility into the mail terms of numbers of people, retail outlets, facilities stream in real time and see the location of hun- for processing large numbers of letters and parcels, dreds of millions of pieces of mail – every day. Be- scale of their networks, numbers of assets and ing able to manage these flows has opened many more, to run a post effectively requires a facility new opportunities that are only beginning to be with large numbers. A new era of Big Data will explored. And as the USPS has recognized the op- open the opportunity to find new sources of value portunities that the IMb offers for coordinating creation. marketing campaigns, gaining customer insight and improving efficiency, there has been a growing rec- What's more, as the era of Big Data analytics has ognition that the IMb data can be combined with unfolded, it has become clear that the concept mail processing machine data that has been avail- means more than just large numbers. Analytic ca- able for a number of years. We are only beginning pabilities have made it possible to organize and to see the possibilities and perhaps even more im- analyze unstructured data that was traditionally portantly, to create the tools that grant both mail- unmanageable. Whether the issue concerns gaining ers and consumers an opportunity to take advan- insight from complaints or assessing video of retail tage of this data. So this has become a very prom- interactions or social media, modern advanced ana- ising field and the panel at the PIP conference con- lytics have made it possible to translate these data firmed this point. * Senior Advisor and Director at PricewaterhouseCoopers 3 Public Sector LLP D o s s i e r And yet, along with the promise we can see that But none of the questions outlined above are easy this area is raising many important questions as ones to resolve in the highly regulated government well: monopoly that is the USPS. As the Washington Post editorialized recently, “tied down like Gulliver Who will own the data when it begins to yield by regulators and Congressional barons and relent- customer insight? lessly lobbied by everyone…the postal service’s management lacks the autonomy to run the system If the posts have a fiduciary responsibility to efficiently.” (WP April 13, 2016). This is why the both protect the privacy of the consumers and final PIP panel was so encouraging to some of us to protect the commercial interests of their cus- who have been watching the transformation of the tomers, will it be possible to define a third posts for some time. I was joined on the panel by “postal zone” in which to create value? And both public sector representatives (Peter Gallagher, Director for Strategy and Business Excellence, An Even if these questions are resolvable with an- Post, Jihad Kosremelli, Strategic Planning and Or- swers that are acceptable to regulators, which ganization Director, Liban Post and João Melo, are the best institutions to assume which re- Head of Innovation Management & Development, sponsibilities for developing services? What CTT`) and by a private sector representative (Liam role should private companies play? When Church, CEO Escher Group). What we heard in Ge- should the posts be involved with the new ser- neva was what always seems to come from bring- vices? How should public private partnerships ing small scale practitioners together – practical be structured? solutions and innovations that they have been working on the scale of Ireland, Lebanon and Portu- Public institutions and private companies each of- gal.
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