Emerging Value Network

The letters and parcels postal value chain is not anymore only based on physical transportation but also includes add-

ons electronics services. Several postal actors are moving in this direction. Newcomers arrive in the postal business with digital platform services. In order to drive those evolutions, the posts companies’ further challenge will be to invent a new digital postal platform. Following the Apple example, the key successful factor will be the creation of the network effects, and the opening of the platforms to third-party participation that will allow them to gain a critical mass of

users.

The Network effect

The value chains are rapidly evolving into value networks, with multiple entry and exit points, creating enormous complexity for all the players involved. Today 60 of the world’s 100 largest

companies (by market capital) earn in excess of half of their revenues from platform-mediated networks.

A best-in-class example of platform-driven innovation is provided by Apple, which has created a network effect of mass usage by opening up its systems to developers.

The best platform strategy, do not necessarily include the best product. The ‘best’ platform refers to a system that is

open to other user interfaces and which has modular architecture upon which it is easy to build on, or to extend.

How Apple is killing standalone platforms

Digital postal platform

A digital postal platform articulate

underlying multiple functions, offered as core platform competencies, in order that these functions can be recombined to create new business opportunities. It could

include specifics applications, such as:

Logistic: i-parcel offers shipping and transaction solutions that reduce cost,

eliminate barriers.

Digital postal: Zumbox connects large transactional, financial & government mailers to consumer households for the

delivery & storage of digital postal mail. Western National Insurance Group is now delivering the majority of its customer communications via Zumbox.

E-commerce: My Shop in a Box is an all-in-one e-commerce solution, provided by the Australian Post including shopfront, hosting, payments, delivery & support.

Mailshot: Mediapost offer database services, mail & letterbox marketing, logistics for consumer promotions …

Trusted 3rd party: RPost offer email proof, message encryption, legal electronic signature, security & compliance. RPost has been selected as official cloud messaging platform by the Saudi Post.

Traceability: Geocolis ensure the real-time, continuous traceability of transported products.

Strategy and Perspective

In order to innovate in this digital postal area, the major challenges to achieve include the following:

earning to operate and monetize services successfully in an unstructured market

securing the business to consumer channel adding value to receiver pull, including digital pull linking physical and digital services to become a multi-channel operator developing customer relationship management opportunities within customer billing operations through multi -

function, physical and digital messages enriching physical logistics with digital messaging adapted to the new business environment

Alexandra Lepercq, may 2012