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Evolution of National Postal ServicesTransformation, growth, and survival in the Third Millennium

iewpoint Paper

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Table of contentsIntroduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Current state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The multi-channel environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Drivers for change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Competitive environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Potential for growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Develop and introduce new products and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reduced costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Win back lost business and gain new customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

HP capabilitiesnew products and services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Online capabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional financial services and capabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Intelligent mail (IM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Hybrid mail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

RFID-based recorded delivery for important or valuable documents or packages . . . . . . . . . . . . . . . . . .

Investigate new emerging government initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

HP capabilitiesreduced costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Online fulfillment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Kiosks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Outsourced HR functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Call center efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application modernization and rationalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ITO rationalization and multi-vendor management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Green initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

HP capabilitiescapitalizing on opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modernized applications help gain business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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IntroductionEuropean and North American Postal Services haveseen a steady and continuous decline in the useof first-class mail over the past five years. This hasconsistently been the highest margin product and thefunding engine for less profitable services. Industrypredictions are that over the next several years to2010, first-class volumes could have declined byaround 30% from those of 2004. The industry isnow fighting for survival in a multi-channel world;the ubiquitous Internet now reaches more than 71%of households and uptake is expected to increase.High-speed broadband makes Internet-based servicesmore attractive and practical, which will likely expandthe use of online alternatives to mail. The projected

decline of first-class mail impacts Postal Servicesability to continue affording a universal service. Thisrepresents one of the greatest challenges facing thePostal Services in Europe and North America.

Current stateAs shown in Figure 1, todays modern Postal Industryis actually an amalgamation of a number of variousindustry capabilities comprising communications,financial services, mail, a trusted arm for governmentservices, retail, fulfillment, expediting and logistics.

With a rich heritage and selectively good branding,todays post offices represent one of the mostattractive retail channels across Europe and North

America. Despite having a significant history of

seeking out and seizing opportunities offered byemerging technologies, many of todays Postal Seorganizations may be somewhat resistant to changdue to internal resistance to the incorporation of n

technological solutions, along with their associatedprocesses and work practices. Throughout EuropeNorth America, Postal Services unions are seen asresistant to modernization and unwilling or unableaccept a proactive role in the new and emergingreality of the global Postal Services industry in whthey reside.

Other than the last mile, the majority of PostalServices organizations are currently generally reato their customers, knowing nothing of an individuimmediate needs until they walk through the door,relying upon customers coming to post offices tofulfill many special services at the counter such assubmitting packages for delivery, next-day let terdelivery, and certified post.

Other than select, narrow, and isolated forays intonew technology, the late adopters basic mainstaservices are relatively outmoded and static incapability, while the forward thinking and actingleader organizations have gradually stolen a marcon the high inertia organizations. Volumes andmargins have been negatively impacted for the leagile organizations. The more capable and techni

astute competitors are currently benefiting from theopen EU market, but are also eyeing global markewith a view to aggressive expansion.

A review of emerging new business opportunities and discussion regarding consultativeapproaches to regaining lost business and cutting costs within the postal services.

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Un

ite

dKing

do

m

USA

Cana

da

Ita

ly

Germany

Aus

tra

lia

Hong

Kong

Ne

therlan

ds

France

Portuga

l

Po

lan

d

New

Zea

land

Postal Services Letters (first and second class post)

Flats (mags, catalogues, etc)

Special delivery (overnight, etc)

Non Addressed Mass mail

Click n Ship

Bulk mail

Intelligent mail

Parcel and packagedelivery

Regular

Overnight

International

Express

Communications Telephones

Internet service provision

Financial services Credit cards

InsuranceForeign currency cards

Foreign currency exchange

Mortgages

Bill payment services

State services Benefit payments

Government payments

Vehicle road tax

Passports

Drivers licenses

National ID cards

Yes

No

Not Applicable

Partial

Limited

1

2

2

2

1

With wide variations in the effective implementationof the EU Open Market Directive 2008/6/EC, toopen EU postal markets fully to competition by2010, some continental European Postal Serviceorganizations have over 30% of bulk mail deliveredby their competitors, while others have close to zeropenetration. The road to liberalization has provedchallenging with the EUs first Green Paper on thesubject delivered in 1993; with subsequent target

introduction dates of 1998, 2003, 2007, 2011 an2013, the final goal has remained elusive. Withthe eventual equalization across all affected natiostates, there should ultimately be a level playingfield. Meanwhile, there remain significant challengto maintain revenues and margin over the next fewyears, while simultaneously ensuring survival.

gure 1. Postal industry

apabilities

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In this highly competitive market, keys to survival willbe to:

Increase revenues

Reduce costs

Win back lost business

The multi-channel environmentTodays multi-channel retailer is a far cry fromthe bricks-and-mortar retailer of the end of the

last century. The whole retail industry has evolvedmore dramatically over the past decade than at anyother point in history. The amalgamation of variouschannels, such as physical stores (bricks-and-mortar),web shops, traditional catalogs, television, andcontact center operations, integrated with pick-upand delivery capabilities, provides buyers with moreoptions than ever.

Expectations have changed and customers aredemanding services tailored to their needs. Theywant a choice of features and the option to bundleor unbundle services. They expect customer support,

such as websites and help desks, to be part of aproduct offering. They will use multiple channels fordifferent purposes, perhaps collecting informationand comparing options through one channel andcompleting a purchase through another. They wantreadily accessible, relevant information to make betterdecisions, and the Internet is fast becoming theirprimary source of information.

The simultaneous arrival of developed online capabilityin conjunction with higher expectation levels representsa perfect opportunity for the Post Offices as they seekimproved profits, enhanced customer satisfaction, andgreater market share. There remain a number ofexciting possibilities for services:

Emergence of e-tailing

Online shopping

Direct to consumer retail

Catalogs

Home shopping television or infomercials

Integrated marketing and merchandising

Online payment of bills

Internet bankingIn-household demographics are shaping attitudes andbehaviors about the use of mail for applications suchas invoice payment. Younger consumers have grownup with alternatives and cannot be expected to repeatthe mail use pattern of previous generations. Thebaby boomer generation will be healthier, wealthier,

and live and work longer, and be more mobile thaprevious retiree generations, breaking the patternsset by their parents. When making a purchaseand shipping decision, customers, especially babyboomers, are increasingly aware of the importancof the entire order and fulfillment process, and thebalance the total cost with value. Timely informatioon the status of an order and the anticipated delivdate has become a baseline customer expectation

Drivers for changeCertainly, the most urgent and compelling driver fochange is the critical need to replace lost high-marevenue. With the acknowledged erosion in the usfirst-class letters, attributed to online alternatives topayment and other similar activities and communicawestern Postal Service organizations need to replathis revenue or face the threat of funding a shortfaorder to sustain a universal service, as mandated most nation states. There have also been permaneand long-term changes in the way citizens and

businesses use and regard Postal Services in a widcontext, with detractors viewing some operators ahaving been slow to incorporate and adopt onlinecapabilities into their various offerings. There is noclear and irrefutable evidence that online capabiliand usage for a wide range of Internet and webservices represent a potential remedy to revenue lNew markets are expanding rapidly where nonepreviously existed, and well attuned, nimble providare reaping benefits and gaining market share ovthose not yet offering a complete or attractive onlirange of capabilities.

With the implementation of the EU Open MarketsDirective 2008/6/EC, ever-increasing cherry-pickhas become more prevalent and potentially damabecause of its cumulative pressure on remaininglucrative margin revenues.

Overall competition is increasing at a rapid pace,as those providers who have invested heavily innew companies and capabilities seek to justify thestrategies and expenditures.

The industry faces a unique perfect storm scenaand must adapt and change with great agility and

pace to survive. With a mixture of state-owned anpublicly limited companies for Postal Services acroContinental Europe, a renewed call for a rationalreview of state-owned enterprises is inevitableas demands for ever-increasing funding outstripgovernment coffers.

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Competitive environmentThe rate of change in the Postal Service industry is atan all-time peak, with various competitors showingapparently unbounded international mobility. Mergersand acquisitions activity also is moving at a seeminglyunsustainable level. New organizations are emergingwithout notice; they are employing clean sheetdesigns and carry no legacy or union baggage and,as such, represent a serious challenge and threat to

the status quo. While organizations with clear andwell-reasoned strategies secure global supply chainbusiness, others with less ambitious or confidentstrategic plans have formed potentially synergisticpartnerships and alliances to grow into new marketsor retain current positions. With the current depthand richness of communications and Internet basedbusiness support capabilities, it is just a matter of timebefore we see the formation of the first virtual PostalServices organizations.

Potential for growthDespite the fierce competition and reduced revenues,there remain significant opportunities for growth, withthree main areas and approaches identified as:

Develop and introduce new productsand servicesOnline fulfilment

Additional financial services and capabilities

Intelligent mail

Hybrid mail

RFID-based recorded delivery for important orvaluable documents or packages

Reduced costsVirtual SME Post Offices

Kiosks

Outsourced HR function

Call center rationalization

Application modernization and rationalization

IT OS rationalization and multi-supplier management

Green initiatives

Win back lost business and gainnew customersInvestigate reasons for lost government clients an

in conjunction with revised processes, newtechnology (such as kiosks) and applicationmodernization, re-tender for lost business

HP capabilitiesnew

products and servicesOnline capabilitiesHP owns Intellium (part of the Arcandor/PrimondoGroup), which is responsible for IT services andapplications development. Primondo, Arcandors Amail-order business, is managed by Quelle andother specialty mail-order companies as part of th

Arcandor/Primondo Group. As a market leader, Hhas recently expanded its multi-channel reach withacquisition of a German teleshopping channel. HP

also has a number of highly developed applicatiothat complement this functionality, such as MerchaAcquirer Services (card processing services), MobWorkplace Services (at point of delivery and/or collection) and Consumer Direct Services. HPalso works in partnership with companies such asDemandware, helping clients plan for, and implemend-to-end online solutions encompassing the enticycle from order taking, warehousing, and fulfillmto credit processing, applications management,system integration, loyalty programs, and handlingexchanges and refunds.

Additional financial services andcapabilitiesHP has considerable experience in deliveringlarge-scale cost savings and associated revenuesin financial services. HP has a successful long-termrelationship with the UKs Post Office Ltd. organizafor whom it has, in partnership, delivered a fullyoperational system for payment of welfare paymeelectronically as part of a European governmentdepartments social inclusion strategy. HP is eminewell-situated to provide similar services elsewhere

has quality references, where it has delivered costsavings on schedule and to budget to more than 5international banking and government organizatiowhile adhering to high-quality commitments.

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Intelligent mail (IM)HP has a long-term relationship with the U.S. PostalService (USPS). The leadership position, which USPSenjoys in its quest to implement a fully operationalbarcode-based IM system, is viewed in a positivemanner by HP, which has links with most of thecompanies involved in the initiative, including storagevendors, multi-state barcode application developers,high-speed sorting machine manufacturers, andsuppliers of hand-held mobile scanning and wireless

computing devices.

Hybrid mailHP is ideally positioned to support hybrid mailimplementations, with successful experience atcombining high-volume and high-speed data transfernetworks in synchronized association with high-speed and volume regional print centers locatedin immediate proximity to national Postal Servicedistribution centers. For a European governmentdepartment, HP provides a number of dedicatedhigh-security print centers with output capabilities

approaching 10 million pieces per month while alsomaintaining high-quality requirements.

RFID-based recorded delivery forimportant or valuable documentsor packagesHP is a world leader in the implementation of radiofrequency identification (RFID) and holds the recordfor the largest RFID installation, with 125,000 activeID tags for a single national customer at over 1,000 ofits sites. HP also has large-scale commercial passive

applications for Fast Moving Consumer Goods(FMCG) clients and, in conjunction with long-term RFIDpartners, views RFID for critical or high-value recordedor expedited delivery mail and packages as key tomeeting customers increasing expectations, whilesimultaneously providing a new high-margin productfor Postal Service providers.

Investigate new emerginggovernment initiatives

Although there are many new government initiatives

annually in every country, ID cards have graspedpublic attention recently and represent an idealopportunity for Post Offices for a variety of soundreasons. Firstly, national Post Offices are a publiclytrusted body, well-respected by local communitiesand conveniently located for the majority of citizens.Furthermore, they are experienced with security issuesand associated handling procedures, as they deal

with large volumes of cash in the retail banking paof their operations. In short, they are the best suiteand well-positioned organization over any othercommercial high street retail institutions. HP has along and successful history of delivering ID cards based on this experience, is well situated to providexpert assistance and support in the design andoperation of any ID card system.

For example, HP has delivered more than 17 milliosmart cards to the U.S. Department of Defense

(DoD) under a global security program, managedby the Defense Manpower Data Center (DMDC).This represents DoDs largest advanced smart cardprogram. HP was also awarded a contract in 200by the U.S. General Services Administration to proadditional smart cards to DoD. The Java-based smcards, known as common access cards (CACs), aprovided to individuals on active duty, in the Reseto the National Guard, and to DoD civilian personproviding physical access to military sites worldwiand need-to-know entry on to DoD networks andcomputer systems for authorized users.

The cards combine identification, physical access,computer access capabilities on a single computechip and help control access to military facilities inthe United States and foreign countries. HP, togethwith DMDC, with which HP has been a technologpartner since 1979, has proved to be the industryleader in identity management. DMDC maintains largest archive of personnel, manpower, training, financial data within the DoD through a databasemore than 35 million records for members of the suniformed services, retirees, and family members. was instrumental in designing and implementing th

worldwide CAC in 2001, the largest multi-applicaJava smart card implementation in the United State

HP capabilitiesreduced costsOnline fulfillment

Alternative points of entry for Post Offices presenta unique approach to improving and controllingprocesses, while providing a combination ofservices not previously offered or contemplated. His a leader in the direct-to-consumer multi-channelretailing environment, its significant capability ablydemonstrated in its work on behalf of more than 2branded consumer manufacturer and retail industrclients for whom it has delivered substantial benef

Virtual home and business Post Offices combinedwith a click-to-ship capability, in which customers

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would take advantage of the power of the Internetand the reach of the parcel delivery network, providescustomers with a new level of access to services,simultaneously reducing load on counter staff. Suchan alternative entry channel results in lower coststo Postal Service organizations, while providingconsistent performance in customer management andstandardization of processes.

Kiosks

Kiosks represent yet another alternative entry channel,with some of the same benefits as online capabilities,by redirecting workflow of straightforward in-branchPost Office transactions and interactions to a customer-directed self-service application, thereby freeing staffto deal with more complex matters. Optimizationacross appropriate branch operations necessarilyensures improvements to customer service overall.HP is well-versed in kiosk design, implementation,and operations, ranging from perhaps one of theworlds highest security applications at Ben GurionInternational Airport in Tel Aviv, Israel, to a European

government department.At the government department, HP was giventhe assignment of providing greater efficienciesand implementing a means of communicatingjob opportunities across geographic regions andindustry needs. Objectives were to improve fulfillmentand increase satisfaction for both job seekers andemployers, while maximizing the reach of the newlycreated national job board of available openings.The HP solution involved designing an ergonomicmodel that included wheelchair access, developingand establishing 7,000 such kiosks throughout the

country. Utilizing touch screen technology to list openpositions via the new national database system, thesolution has enabled 24x7x365 access to more than400,000 job openings across the continent andthrough a number of private-sector agencies. Eventaking account of economic factors, job searchesdoubled between 2005 and 2006, attesting tothe kiosks simplicity and accessibility. This has ledto increased use of the agencys services as moreindividuals take advantage of the kiosks convenience.The kiosks themselves can be easily deployed in newlocations and accommodate new applications.

Outsourced HR functionsHP has extensive experience in outsourced humanresources functions and has many clients in this area.Having been successfully providing benefitsadministration services to Canada Post since 2000, HPis currently responsible for the pension administrationfor Canadian Postal Services (CPS), based in

Mississauga, Ontario. CPS started a pension plana spin-off from the federal government in Canadaand HP won the contract to provide to CPS membfully outsourced pension administration, including center support and self-service retirement modeling

As the CPS source for expertise in benefitsadministration, HP hosts the CPS suite of applicatitools for the work and pension administrationsystem, case management, and imaging. The HPExcellerateHRO approach provides cost-effective

service delivery of HR administrative work andexpert HR design services, business, and local fit,while taking advantage of global best practices.ExcellerateHRO, the jointly owned HR business of and Towers Perrin, ensures that clients can align thHR agenda and delivery model with their key busobjectives, thereby helping to optimize their totalinvestment in HR processes and programs.

Call center efficiencyBelgacoms National Information Servicealsoknown as the phone number 1207is one of

Belgiums best-known call center services. Operatiout of several satellite call centers across the count500 agents provide clients with phone numbersand other information for individuals, companies,administrations, and healthcare services. These cecollectively receive thousands of calls daily frompeople who expect immediate assistance.

Economic realities prompted the Directory InformaServices division to seek competitive advantage boptimizing staffing costs and efficiencies, rather thfocusing on its technical infrastructure. It became

clear that Belgacoms existing call center workforcmanagement system needed to be expanded withadditional real-time capabilities. That is why, in 20the division chose HP to help.

Providing the complex service required a continuostaffing presence, efficient planning, and the optimallocation and follow-up of agents sharing thefluctuating workload. The HP solution has cut averresponse time from 30 seconds to less than three fthe 1207 information service, where getting anagent on the line quickly is crucial.

Application modernization andrationalizationHP has been successfully modernizing applicationfor global and national customers for more than 3years, and this capability represents the best returon investment for the majority of clients as well asbeing the fastest-growing segment in the IT industr

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internationally. Many organizations have grown theirIT systems and associated applications, with variousupgrades and refinements added over many years.However, with new legal and industry requirements,coupled with intense competitive pressures and evermore astute and demanding customer organizations,clients are increasingly aware that their applicationsare inflexible, inefficient, and costing them business.For DHL, with 5,000 offices globally and deliveringto 120,000 destinations worldwide, HP modernized

its aging non-integrated technologies, resulting inlower costs and improved efficiency with an integratedapproach to the daily management and tracking ofhundreds of flight and vehicle movements globally.

ITO rationalization and multi-vendormanagementThe HP approach to multi-vendor management withthe European government department saved it inexcess of 100 million per year post transformation,according to one of its executives. Standardservices are easier to maintain now and they can

be benchmarked to the market these days, so wereorganized now around a new services model placedat the heart of our IT, which uses industry standarddefinitions for what we buy, the executive said.

Green initiativesIDC estimates that currently about 50 cents of everydollar spent over the life of computer hardware are spenton energy. Over the next four years, this is expectedto increase by 54%, to 71 cents of every dollar.

Existing HP service offeringssuch as managed output

services, virtualized server solutions, and data centermodernization initiativeshelp clients reduce wasteand carbon emissions, reduce costs, and increaseefficiency. Improving quality and efficiency in HPoperations allows the company to reduce its carbonfootprint and leverage those improvements for clients.

Various other HP logistics solutions can offer in excessof 30% savings in transportation fuel costs alone,plus other efficiency savings associated with staffingrationalization and working capital reduction.

HP capabilitiescapitalizing onopportunitiesModernized applications help gaibusiness

As many Postal Services organizations are stateowned, central government has often been a reliasource for a number of differing contracts, includinpayment to citizens from a variety of governmentdepartments, vehicle road tax duty, and various stcontrolled licenses and benefits. With governmentdepartments now not exempt from competitivepressures and with constrained budgets, many haawarded contracts, long held by their National PoOffices, to other organizations, or in some casessetting up new facilities to handle business regionain competition with the erstwhile contract holder. Spractice is commonplace in the commercial worldrepresents potential opportunity, armed with modernapplications and processes, to present their previoclients with more competitive choices. HP has beethe forefront of investigating such opportunities anproviding the required and associated modernizedapplications in coordination with re-engineeredprocesses to win back lost business.

ConclusionThe last decade has seen a considerable change

respect to National Postal Services. Further, customexpectations and technological capabilities haveincreased at a rapid pace. With widely availableaccess to the Internet and high-speed broadbandconnections common in many homes, the world issmaller. Competitive pressures on most Postal Servare relentless, and there will be no going back onrecent technological innovationsquite the reverse

The next two decades will see further implementatof innovative online-based, customer-centricapplications, with a likely increase in mergers andacquisitions by global postal and logistics operato

Collaborative partnerships will increase and globaleaders will continue to consolidate their leadershipositions. In-sourcing functionality, such as thoseoriginated by UPS with Toshiba in the United Statewill set the leadership trend for similar arrangemefor those Postal Services operators with substantialogistics capabilities that seek growth and increasmarket share.

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National regulators will remain vigilant to ensure theconstant improvement of performance, customersatisfaction, and VFM levels, while workingpragmatically with other bodies, such as the EU, and

ensuring continued maintenance of the UniversalService Obligation (USO). This represents achallenging dilemma for most national operators.Due to its foundational nature, however, it is unlikelyany major changes in the USO will be granted,and operators will, therefore, need to evaluateand implement cost-effective alternatives, includingpotential technological solutions. The Federation ofRussia is reviewing a hybrid mail solution to helpameliorate overall costs for its geographically distantareas, with a remote printing centers approach. TheCanadian provinces have been highly successful in

the implementation of a digital inclusion capabilityfor more than 10 years, which provides alternativechannels to physical mail.

With global migration of some 191 million peoplein 2005 (according to UN demographic specialists),the world has seen phenomenal growth in cross-border remittances, totaling $360 billion in 2007,outstripping aid and all other capital inflows,according to the IMF. Post Offices, regarded as thelow-cost, de facto peoples bank in many countries,have proved to be easy to use and more trusted thancommercial banks, while offering a wide range of

other citizen-focused services. In countries such asPoland, France, Germany, and the United Kingdom,Post Office financial services are often the largestin-country banks and will, in all likelihood, entrenchtheir positions while also reviewing efficiency andadding new services.

With new and emerging services, Post Offices wilchange more than at any time in their recent histomost will need to develop and adopt multiple entrpoints as reliance on a single physical entry point

is unsustainable and, as such, effectively blocks thnew and emerging capabilities required to retainand grow market share in a fully liberalized markeMore use should be made of kiosks to provide anumber of services such as special delivery check-issuing licenses, and buying postal products. Othepotential services may include a variety of governdepartment services related to income tax self-assessment, ID cards requests, and benefits querie

Introduction of virtual Post Offices, as per the USPClick-N-Ship model, is essential for the realizationhigh margin growth, both in the home context andmore importantly, in Small and Medium Enterprise(SMEs). A virtual Post Office with Click-N-Shipcapability for the SMEs will provide a new platforfor growth and competitiveness, unrivaled in scopmagnitude since the Industrial Revolution.

Based on proven experience, HP is well-positionedto assist any National Postal Services organizationthat may wish to implement new capabilities ortransform its operations in order to survive in theliberalized market.

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About the authorAnthony JoyceAnthony Joyce is a Director of Transformation withHP Global Government Industry Group. With morthan 25 years experience in transformation for bothe private and public sectors, most recently he ledthe team responsible for designing the Departmenfor Work and Pensions transformation plan in the

After gaining a post-graduate degree from GMI inMichigan, he subsequently served as an intern wit

the late Dr. W. Edwards Deming. With significantexperience of transformation in relation to mergeracquisitions, and demergers in the commercial seche is now involved in public-sector transformation,focused on providing improved citizen centric servvia various government agencies and departments

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Technology for better business outcomes

To learn more, visit www.hp.com Copyright 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject tohange without notice. The only warranties for HP products and services are set forth in the express warrantyatements accompanying such products and services. Nothing herein should be construed as constituting andditional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.