ReInventing the Post The Trusted Intermediary Product and

Re-Inventing the Post The Trusted Intermediary Product and Service Innovation Vienna 2013

1. Context 2. Concept 3. Implementing 4. Future Value

The Postal Journey : Identifying and Meeting the Challenges Leading Post have been successful in adapting to external change over the last decade. Digital switch and E-Commerce is here. Continued core business efficiency will be necessary but not sufficient to maintain Posts value and financial position. 1990 s Cost Quality Automation Labour Process Measure 3 Copyright: Strategia Group 2000 s Liberalisation Competition Corporate Models Regulatory Alignment Commercial Orientation Mail Value Chain 2010 -20 Securing the Household Channel Digitisation and Pull Media Convergence CRM & Billing Convergence New Message and Logistics Systems Maintenance of last decade programmes Integration of digital and physical offering and support convergence of process Customisation with standard modules Respond to pull, identity and media convergence

Post Strategic Choices Traditional market definitions no longer align to customer needs and limit creativity. Post need to define future ambition and road map Potential Position Traditional Developed Visionary Last Mile Core Post Document Manager Transaction Comms Enhanced Mail Delivery Bridge Post Multi-Media Intermediary Market Comms. Enhanced Mail Delivery Market Maker Data &Campaign Management USO Enhanced Domestic Integrator/ Partnership USO Parcels Home Delivery E-Commerce Solutions Heavy Freight Cross Dock TPL/FPL Retail Counters Channels Portals Citizen Counters & Delivery Web Post Multi- Media Service Provider Transactions Third Party Banc Assurance International. _ Regional Global Solutions _ _ Sector Integrator Malling Services Letters Express Parcels E-Commerce Solutions Logistics Counters Financial Services Growth 4

The Intermediary Opportunities The Post has to renew the intermediary role and create new revenue streams. It needs to add value both between and for the sender and receiver in an increasingly digital messaging environment. The key service drivers are trust, media management and address and identity management. Opportunities are identified in a number of categories Mailer Business Processes • SCM, CRM, FPM TRUSTED PHYSICAL DIGITAL& MOBILE PLATFORMS Market Communications Logistics & Fulfilment OUTSOURCING SERVICES DISTRIBUTION Business Communications Transactions & Payments Document Management Intermediary • Outsourcing of document management, mail processing & mailrooms prior to entry into the Postal production system Financial Intermediary • Development of wider role in financial services Transactional Intermediary Marketing Intermediary • Provision of physical & electronic infrastructure to provide integrated multimedia messaging services and outsourcing of customer business processes in Direct Marketing Communication Logistic Intermediary • Development of positions in the goods delivery market ranging from ecommerce solutions warehousing and fulfillment through to international express and third part y logistics services TRUSTED PHYSICAL DIGITAL & MOBILE PLATFORMS Receivers Processes • SCM, CRM, FPM • Provision of physical & electronic Infrastructure to provide integrated multimedia messaging services and outsourcing of customer business processes in transactional & administrative data communication utilising the capacity to span physical and electronic systems leveraging the trust brand creating economies of scale or users Citizen and Government Intermediary • Development of electronic counter services and platforms. Which can be used for both Government and commercial services which efficiently create services to increase the efficiency of transactions between Government and the population The Solution Intermediary • Development of integrated solutions based on integration of message goods and financial flows physical and electronic intermediation and the trust brand 5

Postal Intermediary: Transactional Communication The core of Postal revenues has been in B 2 C transactional communication. Pull based portal messaging system are an increasing threat to these communication flows. Innovation in these areas is core to revenue protection Integration Document Services Trust Services Message Management Message Distribution Intelligent Mail Room Outsourcing Forms Hosting Print Management @post secure mail @ Post Integration with ERP Document Management Electronic Post Mark Volume Hybrid E- Archive Document Imaging Records Management PC-Hybrid Consumer Delivery Preference Secure Trust Messaging Communities Multimedia preference aggregated messaging portal Physical Mail Systems Trust Services Electronic Identity (e. ID) EBPP Content Rights Management EDI Outsourced Management of Transactional Portals Invoice and Payroll Outsourcing 6 Copyright: Strategia Group

Postal Intermediary : Direct Marketing Post have both an opportunity and a requirement to drive direct mail. Critical factors will be data availability and management, media integration demonstrable campaign ROIs and simplifying campaign creation to increase use by application and customer group. Identify Groups Build & Manage Data Create Campaigns Manage Multimedia Campaigns Produce Distribute List Brokerage & Procurement Single Customer Database Administration Unaddressed Direct Mail Planning System Mailing List Preparation Geo-Marketing Effective Measurement Campaign Media Selection Address Cleaning & Verification Geo. Demographic Data Administration & Processing Campaign Planning Outsourcing Print On Demand Day Certain In-House Permission Marketing List Enhancement Database Building & Warehousing Campaign Management DM Aspects of Mailroom Outsourcing Bulk EMessage Distribution E-Mail Campaign Outsourcing Campaign Response Services Multi-Channel Address Services Data Mining Outsourcing Telemarketing Campaign Management Outbound Telemarketing E-Coupons Promotions/ Incentives Campaign Response Analysis International List Services Unaddressed Addressed Multi-Channel Message Distribution Permission Marketing Reply Coupons DM Portal Inbound Telemarketing CD/DVD Catalogue integrated to Postal Logistics Campaign Response Design Respond Customer Loyalty Mgt

Trusted Intermediary : e-Commerce Innovation : E-Commerce Providers – Services for Consumers Information Trust Personalisation Transaction Delivery After Sales Local Directories Comparison Portals E- Buyer Delivery Preferences Integration into key e. Commerce Sites Standard Service to promise Service Logistics Classified Sites Exclusivity Permission Marketing Payment Management Customised Delivery Returns On Line-Offline Integration Trust Portals Personalised Search Own Catalogues Shipping Tools and Management Response Management Multiple Value Portals Integration in to e-box solutions Shipping Account Integrated Solutions Integrated Physical DM Integration Shared E-Commerce Warehousing Delivery Returns Recalls Recycling Integration into Key Sites Digital DM Re-Seller Partner Shipping Management Service Logistics Contact and Engagement Centres CRM Own Web Store Hosted Service Dedicated Value Added Warehousing Campaign Management Agency APP and Social Media Stores TPL Standalone Payments Solutions & Integration Marketing Web Store Fulfilment &Logistics E-Commerce Providers – Services for Merchants Distribution Management Customer Manager

Postal Intermediary : E- Government remains a major customer to the Postal sector. Building solutions to support digital Government Identification Information Management Government Services Voting • Electronic Identify for Government • Outsourced Integrated Access to Multiple Government Portals • Localized community based portals • Electronic Voting • E Post office • Life time Address • Secure Mail Box-Infra grade • Dot. Post • Intra Government Workflows and Document Management • Licensing • Electoral Register Management • Government Search Links+ Portals • Health • Outsourced Government IT Administration • Tax and Benefits • Outsourced Trust communities • Passports • Outsourcing Archiving and Document Management • Legal/Courts 9 Copyright: Strategia Group 9

Posts - Solution Oriented Strategy Some Posts have made a strategic decision to develop integrated information logistics and logistic solutions focused on specific customer segments and business processes. Customer Segments Media Production Trade Services e Welfare , e Health, e Govt. Customer Processes Service Fulfilment Order - Cash Purchase - Pay Catalogue Sales and e. Commerce CRM SCM Public Print Media Distribution Material Management Retail & Wholesale Logistics Accounting & Finance Marketing

Postal Solutions: Examples Posts are now developing solution concepts more fully. Process Orientated Document Processing • Print Management • Print • Archive • Scan • Database Management Administrative Flows • Invoice and Order • Payroll Management • Advoice • Online Billing Secure Messaging Environments • Portals • Preference Supply Chain Management • Branch and Customer Solutions using variety of 3 PL tools • E-Commerce web platforms and fulfilment platforms Customer Orientated Distance Selling • Cycle Form Identification to Fulfilment and Response Management Government • Voting • Archives • Workflow • Portals Small Business • Cycle Form Identification to Fulfilment and Response Management • Create the access and Infrastructure • Integrate with Core Administrative Packages • Build Direct SME Portal rich DM features • Build Stand alone Services • Integrate into packages

Summary • Efficient core operating platform aligned to products and regulation critical but not sufficient for future growth • The Post has always been an intermediary linking business consumer citizens and governments in commerce and communication • The Trusted Intermediary • Concept builds and develops this historic role • A vision to communicate of future purpose to stakeholder • Creates a logical structure to define innovation opportunity • Customer and Market need focused • Rational model which encourages creativity around value chain and platform diversification and business process integration

Thank you Questions……… Adrian King Strategia Group adrian. king@strategiagroup. net +44 7796 308618