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© Copyright: Ben Livson 1999. All rights reserved. Hybrid Messaging Workshop Business Modelling for Integrated Messaging and Postal Services By Ben Livson.

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Presentation on theme: "© Copyright: Ben Livson 1999. All rights reserved. Hybrid Messaging Workshop Business Modelling for Integrated Messaging and Postal Services By Ben Livson."— Presentation transcript:

1 © Copyright: Ben Livson All rights reserved. Hybrid Messaging Workshop Business Modelling for Integrated Messaging and Postal Services By Ben Livson

2 © Copyright: Ben Livson All rights reserved. Session 1 - Introductions Executive summary - overview The current situation –Messaging –Electronic addressing: the concept –The international experience –The market The economics of messaging

3 © Copyright: Ben Livson All rights reserved. Session 2 Executive Summary - Overview Business Concept and Customer Value Proposition Reaction by National Postal Services? SWOT Analysis of National Postal Services The Business – History and Present Technology Outline – how does it work?

4 © Copyright: Ben Livson All rights reserved. Session 3 How does it work? –(a) Intelligent Addressing –(b) Distributed Nodes –(c) Description of Authentication –(d) Billing and Customer Care –(e) SMTP Handler Billing Functions

5 © Copyright: Ben Livson All rights reserved. Session 3 continued Market Analysis –Customer segments –Product service bundles, pricing and revenue, and costs –Critical Success Factors –Risks and Responses

6 © Copyright: Ben Livson All rights reserved. Electronic Addressing Concepts Phase 1 - Mail House Emulation –Postal Address File = customer mailing list –Manipulate and validate against PS.PAF –Content file(s) –Optional form files (for statement printing) –IDP since IDP Data Stream --> into an international Hybrid Mail Language standard –Proprietary solutions: ELetter is web-enabled.

7 © Copyright: Ben Livson All rights reserved. Session 4 Management and Organisation Financial Plan - Pricing, Revenue and Cost Industry Literature Profile on Business Partners & Competitors –When and how to involve Global Business Partners? –What does it take to make it?

8 © Copyright: Ben Livson All rights reserved. Session 4 profiles continued –United Parcel Service - UPS –Federal Express Corp –DHL Worldwide Express –Microsoft - Royal Mail Relay One –Netscape - Sweden Post - –AT&T Mail –International Data Post Hybrid Mail ePOST

9 © Copyright: Ben Livson All rights reserved. Session 4 profiles –IDP PC ePOST - current and future –US E-Stamp and Stamp Marker Internet Postage Metering –Tumbleweed Posta Service Providers: UPS Online ® Dossier and UPS OnLine ® Courier and Pitney Bowes iSend. –E.C.S by USPS, Canada Post & La Poste –ELetter Where to from here?

10 © Copyright: Ben Livson All rights reserved. Hybrid Mail Overview Executive Summary © Copyright: Ben Livson All rights reserved.

11 What is Hybrid Mail? Seamless integration of all with postal services The last frontier to be conquered for unified messaging of , fax, SMS, EDI, voice with postal services Premium value added messaging and fax without technology! Extension: outsourced print on-demand

12 © Copyright: Ben Livson All rights reserved. Public Internet Postal Services Final Distribution Web Service Activator Web Service Activator Web Tracker Web Tracker Web-enabled Customer Care Web-enabled Customer Care Surface Mail Royal Mail USPS, IDP.. Gateway Voice Mail Help Help Desk Robot Intelligent Addressing and Distributed Nodes Managed Interfaces GHM Intranet Global Hybrid Mail GHM Fax, EDI, Pager & SMS G H Directory Services Directory Services M

13 © Copyright: Ben Livson All rights reserved. Intelligent Addressing Address types include , postal, phone voice mail, fax, EDI, SMS-pager etc. Examples: Ben.Livson.36.Minnamurra_Road.[NSW.] for postage for voice mail for facsimile

14 © Copyright: Ben Livson All rights reserved. Hybrid Mail Consumer Benefits Full automation of the postal process from printing, addressing, folding, inserting into envelop, franking-metering & delivery Annual saving of 100+ hours per person No technology required for consumer to receive and send and fax! Wrongly addressed mail minimised Speed of delivery maximised Quality printed paid letter vis junk

15 © Copyright: Ben Livson All rights reserved. Premium Value Added Services Express delivery Certified, non-repudiable & track-able items Colour on demand print eg. colour glossies Overhead transparencies, greeting cards … Media delivery of floppy disk & CD ROM Paperless out-sourced mail room (out & inbound) address and fax number service for people without access to any technology! Advertising Document audit services...ecommerce

16 © Copyright: Ben Livson All rights reserved. Service Provider Benefits Premium value added messaging in contrast to free junk Physicals of real infrastructure vis Internet intangibles - real barriers of entry! Postal services market > $200b Value added potential > $300b Print on demand market > $500b Huge opportunity: the last major market to be deregulated, re: Telco industry success

17 © Copyright: Ben Livson All rights reserved. Hybrid Mail Cost Structure Large mailhouse cost base Minimise CAPEX: Fuji-Xerox finance guarantees price per printed page, folded, inserted, enveloped... Advertising and Brand Marketing Distribution via IDP a possibility Network: America --> India & China!

18 © Copyright: Ben Livson All rights reserved. Competition -> Alliances Postal services, eg. Sweden Post International Data Post Relay One: Microsoft & Royal Mail E-Stamp, Stamp Marker, Pitney-Bowes in franking & metering UPS, FedExpress, DHL … couriers

19 © Copyright: Ben Livson All rights reserved. Competitors’ Strengths Established, trusted and very large Already carry out whole-sale hybrid mail eg. invoice and statement printing and mailing Still protected by regulation Control the last leg of mail drop Old boys network averse to start-ups

20 © Copyright: Ben Livson All rights reserved.

21 The current situation Messaging vis Postal Services Statistics –2-billion s/day vis 1.5 billion letters/day –2001: s = 8 x letters according to Forrester addresses: 120m --> 1b in Postal addresses: 2.5b (140m in the USA) Sources vary: CNET, Intelliquest & IDC Gartner: = 25% customer contacts

22 © Copyright: Ben Livson All rights reserved. Reactions by Postal Services Sweden Post annual report 1998 reports 4% pa gains in letter service turning into -4% pa Australia Post annual report 1998 analyzes letters 4.4b pa as 20% of all messaging 22b pa including telephony and facsimile. USPS 5-year Strategic Plan for largely ignores messaging.

23 © Copyright: Ben Livson All rights reserved. THE POSTAL WORLD IS GOING THROUGH A CHANGE Why? Because commerce on Internet is all about - Messaging - Payment - Logistics Core Postal Business

24 © Copyright: Ben Livson All rights reserved. T O R G E T B U S I N E S S S T R A T E G Y Positioning Sweden Post as the leading electronic commerce supplier T L O G I S I C S S T N E M Y A P T O R G E T S M A R K E T P L A C E Meeting place for: - Communications - Buying & selling - Information ’ M E S S A G E S

25 © Copyright: Ben Livson All rights reserved. The wheels are spinning faster It took 38 years before 50 millions Americans were listening to radio; Television reached 50 million in 14 years; Internet reached 50 million in 4 years. This is a wake up call for Postal Services Projects: Defence=5-10 years, MIS=1 year and E-Services=1-3 months.

26 © Copyright: Ben Livson All rights reserved. Electronic Addressing Concepts Phase 1 - Mail House Emulation –Mailing list of customer address file verified against Postal Address File –Content file(s) –Optional forms –IDP Data Stream DS since 1988 –IDP DS --> Hybrid Mail Language Standard –Proprietary: ELetter is all web-enabled

27 © Copyright: Ben Livson All rights reserved. Phase 2 of Electronic Addressing Desktop integration via Print Driver DLLs IDD PC ePOST since 1997 Royal Mail - Microsoft RelayOne First generation consumer solution No integration of with postal service Deutche Post annual report 1988 lists 83 million ePOST items vis 30b+ letters

28 © Copyright: Ben Livson All rights reserved. Phase True to postal services integration SMTP electronic addressing of the form For example: Sweden Post initiative with Sun & Netscape

29 © Copyright: Ben Livson All rights reserved. Evolution of Phase 3 Early phase and.us initiatives: Early idea: provide every postal address an address leads to problems: –A postal address may correspond to several addresses (can be resolved) –You cannot give addresses without permission Phase 3+: Directory centric subscriber driven with no need for accounts!

30 © Copyright: Ben Livson All rights reserved. International Experience IDP = 18 countries with a potential to reach 75% of global postal service volume. Currently IDP volume is 3b pa <1% global postal volume of 500b letters pa. Current focus in automating parts of postal services such as metering & franking eg. e-stamp.

31 © Copyright: Ben Livson All rights reserved. Potential Market 500b letters pa - 43% in USA Postal Services revenue $150b pa 90% already contestable as market deregulated Total postal market including letter print production and preparation > $500b pa Market > $1t pa with print on-demand

32 © Copyright: Ben Livson All rights reserved. Postal Services Globally 700K post offices, 6.1m staff & reach=70% Developed countries: 400 letters per capita Developing countries: 7-33 letters per capita China 7 letters per capita & 2400 regional sorting centres --> 255 centres Japan and Germany have both 82 centres International mail: 2.5% & parcels: 1%

33 © Copyright: Ben Livson All rights reserved. The Economics of Messaging Major messaging market segments include: –Free web-mail for portals –Outsourcing –Universal messaging –E-service for Sales Support and Customer Care –Secure certified commercial grade messaging –Each segment has massive competition with a very large number of entrants

34 © Copyright: Ben Livson All rights reserved. Entrants - “Free” Web-Mail Hotmail USA.NetWhoWhere Rocket MailFour11/Yahoo MailExcite HotOfficeAltaVista Junior Mail Juno 3Dmail AOL FabrikMailMail MSN InameMany others! Why so many?: Float, enhance portal, advertising, sell a web-mail solution, induce into valued added messaging eg. universal messaging.

35 © Copyright: Ben Livson All rights reserved. Defining Universal Messaging Single Logical Message Store Supports Voice, Fax, , Video, Pages, Calendar Events,... Fully Accessible From Phone, PC, and Other Capable Devices Interoperability Between All Media Types Call Control

36 © Copyright: Ben Livson All rights reserved. Five Architectural Views Voic Centric Messaging Centric Messaging Client Integration Messaging Server Integration Messaging Intranet Messaging Acknowledgement:

37 © Copyright: Ben Livson All rights reserved. Centric Messaging Messages To/From Other Systems PBX Voic Server Server Message Store PC Client Telephone Client

38 © Copyright: Ben Livson All rights reserved. Universal Messaging Entrants Universal Inbox to/from fax, phone, pager-mobile, EDI, voic etc. can be grouped into service and solution providers including:

39 © Copyright: Ben Livson All rights reserved. Universal Messaging Entrants../2 messaging.com/message.htm "free" unified messaging - part of the Lucent Technologies

40 © Copyright: Ben Livson All rights reserved. Universal Messaging Entrants../3 iPOST Pulse point Communications

41 © Copyright: Ben Livson All rights reserved. Universal Messaging Entrants../4 ESA from StarTouch International Web Office, messaging, fax platform for ISPs

42 © Copyright: Ben Livson All rights reserved. E-Service: Customer Care

43 © Copyright: Ben Livson All rights reserved. E-Service: Sales Support Many others

44 © Copyright: Ben Livson All rights reserved. Messaging Market Trends Market has to rationalize - too many entrants in all categories. Many competitive advantages unsustainable –secure messaging S/MIME and S/SMTP –universal inbox –virus protection –anti-spamming –Delivery and read receipts

45 © Copyright: Ben Livson All rights reserved. Group 5 Messaging Proof of Message Delivery Archiving Legally Admissible Messaging Multiple Transports: Fallback to &fax Message Integrity and Security Universal Inbox

46 © Copyright: Ben Livson All rights reserved. Literature Internet Mail Consortium Electronic Messaging Association Ferris Research Radicati Group

47 © Copyright: Ben Livson All rights reserved. Business Concept Universal Inbox for Messaging supporting:  Postal letter service   Voic  Fax, pager, EDI and SMS  Redirection, A-Send and B-Receive Preferences and Directory Services  Outsourced Mailroom & Print On-Demand  Virtual and Fax addresses

48 © Copyright: Ben Livson All rights reserved. Value Proposition Scope is any computer file or anything that can be scanned into a computer file Full automation and outsourcing of all postal operations Automation and outsourcing of mailroom Outsourcing of print-on-demand Speed, quality and professionalism

49 © Copyright: Ben Livson All rights reserved. Value Proposition../2 SOHO savings: 60 hrs pa x $26/hr = $1,560 Assumptions: 720 letters pa * 5 min/letter Accuracy: postal addressing validated Improved cash flow with invoice cycle reduced by a calendar day Value added services such as tracking of delivery, insurance, notary and multi-media.

50 © Copyright: Ben Livson All rights reserved.

51

52 SWOT Analysis of National Postal Services

53 © Copyright: Ben Livson All rights reserved. History and Present Earliest postal delivery: Egypt 255 BC Universal Postal Union Berne Treaty countries, 6.2m employees, 700,000 post offices and 500b letters. International Data Post: 18 major countries: –Finland Post and IBM Finland 1988 –Australia EDIPOST > modern open IDP

54 © Copyright: Ben Livson All rights reserved. History and Present../2 Post 2005 Study by the Universal Postal Union: IDP PC ePOST 1997 RelayOne 1998 ELetter 1999

55 © Copyright: Ben Livson All rights reserved. Market Analysis SOHOs and SMEs are the most attractive segments. LME. Large-to-Medium sized Enterprise Already have existing mail rooms and infrastructures built but willing to outsource postal services, mail rooms & printing. Residential.Take years to educate - very high price sensitivity.

56 © Copyright: Ben Livson All rights reserved.

57 Postal Service Internet Initiatives Service Fulfilment - trucks & scheduling Tracking of logistics - parcel service On-line Post Shop E-Payments eg. Australia B-Pay E-Market eg. Sweden Post Torget National Certificate Authority - Retail E.C.S eg. USPS, Canada Post and La Poste


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