Postal markets

Report
The role of the CIO
by the year 2020
Illustrated using a large semi-governmental organisation
Dirk De Boeck
Head of ICT Innovation
“The electric light bulb was not invented by
constantly improving the candle”
- Winston Churchill
So, what is the market
situation for bpost?
Why CIO’s are being pushed towards
innovation
Postal markets:
a lightspeed athanor of 2 worlds
“Facebook teams with Deutsche Post to preserve memories”
“eBay acquires Magento eshop”
“SingPost launches global ecommerce platform”
“bpost launches Do My Move Online”
“TNT Express goes mobile with tracking solution app”
“New DHL tool helps shippers
track and cut carbon emissions”
“The incorporation of e-services in the logistics
business has reached
a staggering exponential footprint since 2000”
- Post & Parcel -
The
eBattle
The battle has 3 main fronts
5
BATTLE ONE
CHURN
Churn from physical to enhanced, faster and
cheaper digital communication media
BATTLE TWO
COMPETITION
Competition entering postal markets with physical
and/or digital alternatives
BATTLE THREE
DEMATERIALIZATION
Vanishing volumes as part of a green, digital
economy
But we are aware of the threat.
9
The CIO and Innovation
10
Why Innovation has become the
CIO’s priority in postal services
Customers find postals too expensive
Aging infrastructure
Customers don’t care about the postal network
They only care about the content it ships
Vertical postal sectors will become obsolete (retail,
business & government)
No innovation = give away the market to other sector
leaders
11
Some already have a head start
•Operational
efficiency
•Pay as you go
•Keep latest
standards
Correos (Spain)
orders a EUR 41m
cloud-based IT
system
•Product
development with
partners (Motorola,
Zetes, …)
•More campus
thinking
Deutsche Post DHL
expands innovation
centre in Germany
•Simpler access to
package shipping
•Track & Trace
anywhere you are
FedEx widens
mobile access as
customer usage
evolves
•Protect market
share
•Push for more
online sales
•Control the parcel
market at the
source
•Claim percentages
on sales
DPD launches tool
for felixible delivery
windows in
Germany
Rakuten Group buys
Play.com and
Priceminister as
logistics triggers.
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What does this evolution predict?
2020 CIO must be
a service
integrator
• Telecom & ICT
• Multiple access to multiple
services
2020 CIO must be
enterpreneurial
2020 CIO must to
techno-visionary
• To leverage new markets
(shopping, egov, food
chain, medical logistics, …)
• While increasing service
levels in existing businesses
• ICT & telco giants penetrate
our market
• We penetrate their market
• Boundaries become vague
• Invasion by larger postal
countries with new hi-tech
offerings
13
How all this shapes the
future job description
of the CIO
14
Business drivers that will
influence the future CIO’s profile
How will ICT be part of the ecosystem?
Follow or lead business initiatives, or
both?
Which integrators will play a role in our
market?
Technology visioning
Competition analysis
What is our role in theirs?
Is it better to team or to battle?
Deal architecture
Is it better to focus or to be diverse?
Portfolio management
Do you really need to be the first? After
all, it’s the second mouse that gets the
cheese.
Release marketing
15
The future job description… focus
Manage data to feed
business decisions
Structure data to measure
Operational performance
Minimize number of IT systems,
or bridge them
Adopt external market ICT
standards, even in your core
business
Build disruptive technologies to
attract new types of customers
Investigate the competitor ICT as
well as your own
Even more cost reduction
And go cloud
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The 2020 CIO’s profile quadrant
INTELLIGENCE
•
•
•
•
Get the right data to the right people on the
right devices
Establishing and measure key performance
indicators
Improving data quality
Choose the right business intelligence and
analysis tools
INTEGRATION
Chief
Intelligence
•
Officer
•
•
Chief
Innovation
Officer
Another term for this might
be "Chief Connection Officer”
Connect various IT systems
Bridge legacy and cloud
services
Chief
Integration
CIO
Officer
INNOVATION
•
Identifying disruptive technologies
and find ways to apply them in the
enterprise (=INVENT NEW STUFF!)
•
Investigate the ICT setup of the
competition
Watch sector trends and filter them
Manage all R&D for ICT based
products
Improve the ICT customer
interfaces
•
•
•
Chief
Infrastructure
Officer
INFRASTRUCTURE
•
•
•
Reduce Infrastructure costs
Manage legacy technology
Ensure smooth IT operations
•
•
•
Eliminate "shelfware”
Adopt virtualization and cloud
Renegotiate contracts
17
In reality …
INTELLIGENCE
•
•
•
•
Get the right data to the right people on the
right devices
Establishing and measure key performance
indicators
Improving data quality
Choose the right business intelligence and
analysis tools
INTEGRATION
Chief
Intelligence
•
Officer
•
•
Another term for this might
be "Chief Connection Officer”
Connect various IT systems
Bridge legacy and cloud
services
Chief
Integration
Chief
Innovation
Officer
Officer
INNOVATION
•
Identifying disruptive technologies
and find ways to apply them in the
enterprise (=INVENT NEW STUFF!)
•
Investigate the ICT setup of the
competition
Watch sector trends and filter them
Manage all R&D for ICT based
products
Improve the ICT customer
interfaces
•
•
•
CIO
Chief
Infrastructure
Officer
INFRASTRUCTURE
•
•
•
Reduce Infrastructure costs
Manage legacy technology
Ensure smooth IT operations
•
•
•
Eliminate "shelfware”
Adopt virtualization and cloud
Renegotiate contracts
18
So, what are the
priorities for the near
future?
Don’t shoot at everything at once
But the question is:
In which areas will the CIO
need to look first?
Using Royal Mail (UK) as example
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Which segments to go for first
Source: 2010, Lausanne Business School, UK Postal Market
21
CIO priority setting in the UK
postal market for 2015-2018
Most crucially identified in the UK are:
Customer Service:
• = Existing services to customers
• = based on existing ICT offering
• = IMPROVE what you have
= QUALITY
New Services
•
•
•
•
•
=
=
=
=
=
=
Hunt for new markets
Hunt for new customers
Market share
Market development
INVENT / ACQUIRE what you don’t have
SALES
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Bpost potential area’s for new
business ICT as of 2012
Integrated
Track & Trace
(incl. via
syndication)
Large
government
automation
deals
Total
integration
for Document
Management
& Worklow
Combined
eBusiness
solutions
(FEM)
By 2020 the CIO will have to re-write
the complete tech-sales story
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The CIO and the cloud.
Be prepared.
Rising serverto-admin
ratio’s
• from 25:1 to
250:1 … 1000:1 …
10000:1 (Google)
ICT becomes a
variable cost
End-user auto
provisioning
• CAPEX:OPEX
• Is ICT still
strategic at board
level?
• SaaS-IaaS-PaaS
Infrastructure
becomes
commodity
• Business
knowledge is the
new key
Here comes “The Cloud” …
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Overall view on
expansion
Or not ….
25
Bpost expansion so far
Currently
present in 10
EU countries
2009: USA
2011: Asia
• Washington
• Chicago
• Hong Kong
• Singapore
Rumors about
bpost
expanding to
East-Europe
through
acquisitions
are not
correct. There
are no plans
(anymore) at
this point.
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Expand or Innovate
As postal operator we need to stay inside the government
mandate. This influences our economic model
ICT solutions will however:
• Open up new potential markets
• Expand customer base in existing markets
Key factor will be FIRST on becoming a very solid supplier
internally to the business
And THEN become a partner of our business lines
… with possibility to re-sell ICT services to the end market
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Let’s share some ideas
So what does the future look like to you,
as a CIO? Does this sound familiar?
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