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L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Postal Product Innovation. L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009. “The problem that is usually being visualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them” Joseph Schumpeter

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L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

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  1. Postal Product Innovation L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

  2. “The problem that is usually being visualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them” Joseph Schumpeter In “Capitalism, Socialism and Democracy”, 1942 The problem that is usually being visualized is how Posts administer existing products, whereas the relevant problem is how they create and destroy them

  3. Outline • Mailers and their needs • Mailing requirements of business applications • What if mailers have complete control over mail communications? • Postal Product • Integrates business applications with postal processes • EPPML - The technology that integrates mailer application with postal processes • Definitions • Postal Product innovation with EPPML • Examples – from business applications to postal products • Mutually Trusted Mail • Vote By Mail – show PPDF • Mail with Provable Content • Conclusions • What do we want? What do you want?

  4. Outline • Mailers and their needs • Mailing requirements of business applications • What if mailers have complete control over mail communications? • Postal Product • Integrates business applications with postal processes • EPPML - The technology that integrates mailer application with postal processes • Definitions • Postal Product innovation with EPPML • Examples – from business applications to postal products • Mutually Trusted Mail • Vote By Mail – show PPDF • Mail with Provable Content • Conclusions • What do we want? What do you want?

  5. Forecast for “information” mail • The volume of traditional letter mail products is declining • …and will continue to decline irrespective of the overall economic conditions • First and Second class mail are easiest targets for electronic diversion • Mail as a information communication media is undergoing transformation from the dominant media to a specialized form(according to Marshall McLuhan) • Consequences: • Traditional letter mail products will be transformed to a much more diverse and multi-featured postal products that will be custom tailored to specific applications and specific vertical and geographic market segments • New custom-tailored letter (information) mail products will be value priced even in in the markets where USO postal operators will retain monopoly over letter mail products • Posts that will excel in this transformation will remain profitable • Commercial success of letter mail will be much less dependent on volume and cost! 5

  6. Business Applications • Human Resources • Payroll • Benefits • Education and training • Hiring • Recruiting and staffing • Records management • Payment services • Card services • Check processing • EDI • Sales, Marketing and Customer Care • CRM • Database marketing • Telesales and marketing • Web sales and marketing All business processes with a communication component can benefit from integration with postal products • Administration • Tax processing • Claims Processing • Asset management • Document management • Finance and Accounting • Billing • Accounts Payable /Accounts Receivable • General Accounting • Taxes management • Risk management • Financial reporting • Financial analysis • Financial managements • Investor relationships • Mergers and Acquisitions/Corporate development • Logistics and Distribution • Materials management • Fulfillment • Warehouse/Inventory management • Transportation • Procurement

  7. Communications - Business Applications Your Business The Post Sales, Marketing Potential Customers CRM, Accounts Receivable Existing Customers Investor Relationship Stockholders Accounts Payable, ERP Suppliers Accounts Payable Service Providers Government Compliance Government Entities Benefits Management Employees

  8. Communications - Business Applications Your Business Communication channel Sales, Marketing Potential Customers CRM, Accounts Receivable Existing Customers Investor Relationship Stockholders Accounts Payable, ERP Suppliers Accounts Payable Service Providers Government Compliance Government Entities Benefits Management Employees

  9. Benefits of Integrated Communication Channel • The postal product and the business application evolve independently • Automating the maintenance of these linkages minimize ‘friction’ and complexity of execution (EPPML does that) • Mail item design for maximum attractiveness to the recipient • Data services • Workflow, exception processing, services • Better control of time and location of: • induction • delivery

  10. Outline • Mailers and their needs • Mailing requirements of business applications • What if mailers have complete control over mail communications? • Postal Product • Integrates business applications with postal processes • EPPML - The technology that integrates mailer application with postal processes • Definitions • Postal Product innovation with EPPML • Examples – from business applications to postal products • Mutually Trusted Mail • Vote By Mail – show PPDF • Mail with Provable Content • Conclusions • What do we want? What do you want?

  11. New approach to Postal Products • Information technology can play far more significant role in postal product innovation and consumption • How? Hint: Teach computers the notion of “postal product” • What is the “postal product” from human and computer perspectives? • All known postal products (existing and planned) have a deep structure that can be formalized for computer processing while preserving their essential human processability • Postal product can be described as a collection of named attributes which have measurable values • Postal product can be represented for computer processing using modern mark-up language (à la XML)

  12. Model • Mail creation, induction, processing and delivery driven by standardized information interfaces between all parties involved • Model to emulate: e-commerce • ubiquitous computing • connectivity • information presentation standards (XML/HTML) • Postal product is a (multi round) communication protocol between Post and customers • standardized set of interfaces

  13. Structure of postal product • Physical elements described by data attributes • Physical parameters (dimensions, volume, density, material characteristics) and content (restricted for certain services) • Network Parameters (geography of induction and delivery) • Priority &(where there are options)routing information • Timing and frequency of collection and delivery • Information about • Events that occurred during mail item processing • Other mail items linked to the mail item being served • Objects linked to the mail item being served (box, signatory, …) • Other mail sent, received or replied to by sender or recipient • Rules • Conditions imposed on physical and informational elements(mail unit, mail unit content, mail unit attributes, money) • If (attribute X meets this condition) Then (do this) • Remedies for when service could not be delivered as specified

  14. Postal product access requirements • Mail Item make up • data, format and placement • Computerized data to accompany mailing • timing, messaging and protocol requirements • examples: Statement of Mailing Submission (SMS), Manifest, PostalOne documentation etc. • Grouping and containerization • pre-sort and mail unit nesting requirements • Pricing and payment requirements • Rates and accounting rules • Offering requirements • Validity period

  15. Outline • Mailers and their needs • Mailing requirements of business applications • What if mailers have complete control over mail communications? • Postal Product • Integrates business applications with postal processes • EPPML - The technology that integrates mailer application with postal processes • Definitions • Postal Product innovation with EPPML • Examples – from business applications to postal products • Mutually Trusted Mail • Vote By Mail – show PPDF • Mail with Provable Content • Conclusions • What do we want? What do you want?

  16. What is EPPML? • Extensible Postal Product Model and Language • EPPML enables standardized definition of almost unlimited variety of postal products • Standard: UPU S54 • A postal product expressed in EPPML: • Is an information object (suitable for computer processing) • Can be represented by elements organized as an extensible collection of measurable attributes • All postal products represented in EPPML have a common structure across all carriers/posts (defined by EPPML standard schema)

  17. Postal Product Representation eppml standard (XML schema) governs the structure of <PostalProductxsi:noNamespaceSchemaLocation=… ... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID> ... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints> ... </PostalProduct> Product Definition (XML doc) contains contains contains DMM

  18. Postal Product XML SchemaTop Level Outline

  19. Postal Product Representation The common structure for representing Postal Products is defined by EPPML Schema (draft UPU Standard) attribute value of an attribute

  20. Postal product innovation with EPPML • Designing new product • Evaluating new product operational feasibility • Evaluating new product economic feasibility • Marketing and selling new product • Production (delivering new product) Note: • First three activities are essentially information gathering and processing • Fourth activity can be organized also as information processing • Production is a set of physical and information processing activities (mail creation, collection, induction, sorting, transportation, delivery and data services)

  21. Postal product innovation with EPPML • Designing new product • Evaluating new product operational feasibility • Access requirements • Evaluating new product economic feasibility • Costing and pricing • Marketing and selling new product • Distribution channel • Enabling access to new products • Production (delivering new product) • Mail creation (mailer) • Mail processing and delivery (post)

  22. Designing new product Postal product design must encompass and leverage collective customers’ knowledge rather than simply "marketing existing products to existing customers".

  23. Capturing mailer’s needs and constraints Comm. owner Weight (Kg) 6 Delivery Time Tuesday Mailer’s Needs and Cons- traints (XML) Tracking Chicago Induction Every Day None Chicago <MailerNeedsxsi:noNamespaceSchemaLocation=… ... <MailerID>1234PB6789-... </MailerID> ... <MailUnitAttribute> <Weight>6</Weight> </MailUnitAttribute> ... </ MailerNeeds > Mail Operations Mailer Domain

  24. XML representation for postal product marketing Postal Product (XML) Postal Product (XML) Postal Product (XML) Confirmation of events Max. Transit Time Weight Range 2 d Induction 2 d 0-2 Kg Induction 0-30 Kg 10-100 Kg 2 d 5-7 d Induction First processing Delivery 0-2 Kg Induction 1 d <PostalProductxsi:noNamespaceSchemaLocation=… ... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID> ... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints> ... </PostalProduct> operations Postal Operator Domain

  25. Redirection and positive proof of identity product as an EPPML document 25

  26. Postal product innovation with EPPML • Designing new product • Evaluating new product operational feasibility • Access requirements • Evaluating new product economic feasibility • Costing and pricing • Marketing and selling new product • Distribution channel • Enabling access to new products • Production (delivering new product) • Mail creation (mailer) • Mail processing and delivery (post)

  27. New product cost accounting in post-reform environment • Quick introduction of new products requires quick and reliable estimation of their costs • Need to accommodate customized products • Dynamic costing and pricing • Automated cost accounting process is the way to go • Two modes: • Pre-computed cost (before product introduction) as a function of anticipated demand (volume) • Post-computed cost based on actual demand with the demand data collected in real time (on-line)

  28. Cost accounting in EPPML-enabled environment (ABC method) 28

  29. Postal Process Decomposition 29

  30. PPDF mapping to postal process • Postal Product Definition File (EPPML) is ‘compiled’ to map to the post’s operational capabilities • Results: • Activity list • Parameter values • Add activity • Identify parameters • Identify values • Feed into cost drivers 30

  31. Postal product innovation with EPPML • Designing new product • Evaluating new product operational feasibility • Access requirements • Evaluating new product economic feasibility • Costing and pricing • Marketing and selling new product • Distribution channel • Enabling access to new products • Production (delivering new product) • Mail creation (mailer) • Mail processing and delivery (post)

  32. Creation of Postal Product definitions of postal products Post / Carrier Data Center product (XML) Operations product (XML) product (XML)

  33. Download Postal Products product (XML) Mailer Domain Data Center product (XML) product (XML) product (XML) Post / Carrier Post / Carrier Post / Carrier Data Center product (XML) product (XML) Operations product (XML) product (XML) product (XML) product (XML)

  34. Mailer Selects Product product (XML) Mailer Domain Data Center product (XML) product (XML) product (XML) Post / Carrier Data Center product (XML) product (XML) Operations product (XML) product (XML) product (XML) product (XML)

  35. Mail Generation and Induction product (XML) Mailer Domain Data Center product (XML) product (XML) product (XML) Post / Carrier Data Center Mail Creation Instructions product (XML) product (XML) Operations product (XML) product (XML) mail tray product (XML) product (XML)

  36. Mailer Requests New Postal Product request received product (XML) Mailer Domain Data Center product (XML) product (XML) product (XML) Post / Carrier Data Center Request new product product (XML) product (XML) Operations product (XML) product (XML) product (XML) product (XML)

  37. New product consumption new product available request received product (XML) days Mailer Domain new product in use by mailers Data Center product (XML) product (XML) product (XML) product (XML) product (XML) product (XML) product (XML) Post / Carrier Data Center Mail Creation Instructions product (XML) product (XML) Operations product (XML) product (XML) mail tray product (XML) product (XML)

  38. Designing New Postal Product

  39. On-demand New Postal Products Updates and additions to Postal Product Definition Files Mailer Post Request for Postal Product Postal Ops

  40. Postal product innovation with EPPML • Designing new product • Evaluating new product operational feasibility • Access requirements • Evaluating new product economic feasibility • Costing and pricing • Marketing and selling new product • Distribution channel • Enabling access to new products • Production (delivering new product) • Mail creation (mailer) • Mail processing and delivery (post)

  41. Postal Product Delivery

  42. Mail creation driven by EPPML Mail Production Systems Mailer’s Constraints (EPPML) Postal Product (XML) Post Postal Product (XML) Postal Product (EPPML) Mailer’s Needs (EPPML) Instructions for Mail Production (EPPML) mail tray Mailer

  43. Working in Concert Needs (XML) Needs and Preferences UPU Instructions (XML) product (XML) product (XML) schema (XML) schema (XML) schema (XML) product (XML) product (XML) mail tray CDI Constraints XML SMS product (XML) product (XML) Operations Mailer Post New Mailing New Products

  44. Outline • Mailers and their needs • Mailing requirements of business applications • What if mailers have complete control over mail communications? • Postal Product • Integrates business applications with postal processes • EPPML - The technology that integrates mailer application with postal processes • Definitions • Postal Product innovation with EPPML • Examples – from business applications to postal products • Mutually Trusted Mail • Vote By Mail – show PPDF • Mail with Provable Content • Conclusions • What do we want? What do you want?

  45. Examples of Innovative Postal Products: Mutually Trusted Mail (MTM) Product

  46. Requirements • Sender wishes to be assured that a given mail unit has been delivered and received by the specified recipient at a certain time and at a certain place • Sender wishes to keep the content of the mail unit intact and secret (only sender and recipient are supposed to know the content and the content arrived as it has been sent) • Recipient wishes to be assured that mail unit came from the right source (sender) and that it contains content that recipient ordered or expected • Recipient wishes to be able to redirect delivery of the mail unit after it has been sent

  47. 12345678901234 Robert Dupont Rue d’Example 1000 Lausanne Mail Unit Tracking Number (Mail Unit Identifier) Evidence of Postage Paid (Stamp, Meter Impression, Or Permit) Partial Ciphertext (Ciphertext1)

  48. 123456 Robert Dupont Rue d’Example 1000 Lausanne Data Center Recipient Special Services Data Internet Mail Unit Office Printer Label printer Postage Meter Or Mailing Machine Or Inserter Database Computer Mail Unit Production System (Sender)

  49. Database Record Content

  50. Scanning Camera Display Key Entry Pad Portable Wireless Scanning device (PWS) for Delivery Agent

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