EACO Conference 2015

Dr. E KinaraPMG Kenya

Contents1. Business models2. ICT as a driver of change

• Processes• Systems• Products

3. Efficient Delivery of Postal & Courier Services4. Overcoming the Challenges5. Discussions

New Business ModelsInternal

Profit Center based organograms• The traditional Postal services have been centered on hierarchical

organograms that has overtime introduced granite bureaucracy that have seriously compromised innovations and business decisions in the Postal Corporations in East Africa

• Peter Ducker introduces the Profit Center Models which designates all operation units as business units complimenting each other and decentralizes command and control creating an environment of innovations and quick decisions

New Business ModelsExternal

Shift from Monopolistic to Public Private Partnerships• The traditional business was majorly monopolistic with Postal services

developing product offerings in silos

• A shift is to be made towards public private partnerships and close working with Governments to bridge various divides e.g. digital, financial, social amongst others

• This mitigates on investment portfolios e.g. in infrastructure, real estate and capital (fixed and working)

• Kenya example can be seen in various partnerships • Financial services – Agency banking• Huduma Centers • Couriers for large hauls Etc.…

ICT as Driver of Change It is imperative for Postal services to incorporate ICT as a new business

frontier to enhance efficiency in service delivery • Process

• Incorporation of ICTs in key process as track and trace, proof of delivery, sorting, front and back office (electronic scanners etc…)

• Systems• Adopting enterprise solutions to foster management reporting and

business intelligence foster quick response to market demands and needs

• Products• Introduction on new ICT based offerings e.g. electronic mail, DMM,

Hybrid Mail, WI-FI etc… will enhance the profit margins for the new posts.

Efficient Delivery of Postal & Courier Services

Postal and courier services will remain the core business for the operators

There is urgent need to increase efficiencies in delivery of these services

Major ways of improvement of the offering:-• Track, Trace, Notification and Proof of delivery• East Africa should fast track Physical Addressing• Postal Organization should pioneer into e-Commerce (especially

the delivery of Parcels and items shopped online)• Partnerships with last mile delivery to reduce on costs e.g. the

‘Boda boda’ partnership proposal with KEMSA in Kenya.

Over coming the Challenges

‘The most important internal barriers [to innovation in posts] have to do with being too slow to make decisions, too much

bureaucracy and having a corporate culture that doesn’t encourage creativity’

- Dr. Kristian J. Sund (the Future in in the Post III)

• ‘

Heavy capital investment in ICTs and trainingParadigm shift from the traditional thinking and

operationsNew Competition from the most unlikely

competitor (Banks, Telecoms, Newspaper Companies…)

Over coming the Challenges

EACO Conference 2015

Dr. E Kinara PMG Kenya

Discussions