To learn more: http://bit.ly/GHur6o

1. A question of survival:
How postal and CEP companies are
transforming their business models to adapt
February 14, 2012
Martin Barnreiter Marco Vatteroni
m.barnreiter@pac-online.com marco.vatteroni@sap.com
+49-(0)89-232368-19 +39-06-51073-300
© PAC

2. Q&A
Your questions are welcome!
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 2

3. Agenda
About PAC
Major Business Challenges
Changing Buying Behavior through Technological Change
Business Diversification in the P&L Industry
Logistics Segment / Parcel Services – Diversification Examples
Communications Market – Diversification Examples
IT Challenges
Use Case: DPD Geopost GmbH
Diversification: Yes or No?
Interview with Marco Vatteroni (SAP)
Conclusions
Questions and Answers
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 3

4. Who is PAC?
Years our offices opened:
Pierre Audoin Consultants (PAC) was established Paris 1976
Munich 1992
by our founder Pierre Audoin in 1976 (Paris). Bucharest 1999
New York 2000
London 2002
The only European group with global coverage: São Paulo 2009
Strong local competences and global response. Berlin (takeover of Berlecon) 2011
The specialist for the software & IT services industry:
IT services and software suppliers, IT users, influencers and public bodies.
With the takeover of Berlecon Research: enhancing our expertise on software and IT
services in the Communication, Collaboration, and Mobility areas.
An integrated approach covering the whole value chain of our customers: off-the-shelf
reports, marketing & consulting services.
PAC supports IT decision makers & suppliers in the development and
implementation of a successful strategy by providing them with a better
understanding of the market, the competition and end-user behavior.
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 4

5. Major Business Challenges
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 5

6. Major Business Challenges
How strongly are the following challenges influencing your
current business?
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 6

7. Changing Buying Behavior
Source: La Poste
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 7

8. Business Diversification in the P&L Industry
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 8

9. Logistics Segment / Parcel Services
Diversification Examples
“Clinical Express” (TNT)
Blood samples shipped nationally and internationally
Conditions: certain temperature level (through special parcel kit); strict and highly
secure timeframe
Can be booked online, via e-mail or SMS
Traceable at any time
Add-on business, in a high-value segment that can thus help finance other
service developments. Integration into the whole pricing/billing structure.
On-site repair service for computers (TNT)
A partner engineer is instructed by TNT and goes to the customer’s site.
Engineer repairs the computer, brings and returns spare parts, e.g. the hard disk.
The partner’s share of service revenue needs to be calculated in the
pricing/charging.
These highly complex processes require a flexible pricing/rating and charging
model in order to fulfill all kinds of customer needs.
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 9

10. Communications Market
Diversification Examples
E-Postbrief (Deutsche Post)
Online postal service to send secured letters via e-mail
Customer needs to register online and identify themselves
User can send letters online, also registered letters
Letters can also be transferred to the recipient in a printed version
This new service leads to further integration of services to the pricing model,
especially for the bigger B2B customers.
PosteMobile (Poste Italiane)
The PosteMobile solution is a new mobile access channel to Poste Italiane’s services,
such as bill payments, telegrams or micropayments.
Services like pre-paid and post-paid voice, Internet, M-banking (mobile banking)
or gaming and M-commerce (mobile commerce) solutions
The new sales channels will increase the volume of transactions handled in the
pricing, billing and financial management systems.
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 10

11. IT Challenges
Highly heterogeneous, often decentralized IT landscape
Multiple solutions from different IT suppliers
Home-grown legacy IT solutions
Compliance regulations
IT needs to support all kinds of customer-oriented processes
CRM solutions need to integrate all marketing/sales channels
Effective billing/charging and revenue and expense management solutions as well as
partner financial management
Integration into ERP systems
Integrated end-to-end solution is required
Many in-house solutions require modifications or even replacement
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 11

12. Use Case: DPD Geopost GmbH (1/2)
Starting position
Decentralized: 45 subsidiaries
Inefficient and cost-intensive business processes
Difficult to set up and keep common compliance regulations
Customer data were redundant
Project
Project plan for implementation, testing, and roll-out
Restructuring of staff change management
Replacement of home-grown billing application
Automation of the order-to-cash processes
Centralizing 45 software instances and databases
Accounting team to execute any task from any subsidiary
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 12

13. Use Case: DPD Geopost GmbH (2/2)
Benefits
Increase of revenue approximately 0.25%-0.5%
Higher data quality and transparency
Improved business analytics
Better service to customers higher customer satisfaction
Save about 0.2% in terms of total revenue
Reduction of the IT infrastructure costs
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 13

14. Diversification: Yes or No?
4 dimensions to be considered when thinking about expanding the business:
1. Market size: How large is the market for e.g. value-added services?
2. Market growth: What are the expected growth rates in this market in the
next 5 to 10 years?
3. Market penetration: How many other players are already active in this market?
4. Capability: Does the company have the capacity, such as market knowledge,
personnel, technological know-how and, finally, the financial stability
to enter a new market?
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 14

15. Interview with Marco Vatteroni (SAP)
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 15

16. Conclusion
Ongoing transformation in the P&L industry
Further technological change / market liberalization
Increase in the use of internet technology
Success factors
1. Development of new services / change in business models
2. Support through modern IT solutions:
Technological support of new online/mobile services
IT modernization: ERP, end-to-end processes
A question of survival: How postal and logistics companies are transforming their business models to adapt 14.02.2012 © PAC 16