from anywhere… to anyone taking care of business – december 2004 taking care of business...

From anywhere… to anyone

Taking Care of Business – December 2004

Taking Care of Business

Innovation @ Canada Post



• Canada Post Today

• Taking Care of Business Challenges

• How We’re Enabling Change

• Creating Value for Our Customers Solutions for Improving Service Delivery

AgendaAgenda



• C$6.2B organization• 66K employees• 13.7M points of call• Businesses and Consumers

• 10B mail pieces annually• 22 major processing plants• 24K points of access• 6K vehicles

Canada Post Today - ProfileCanada Post Today - Profile

InnovapostInnovapostInnovapostInnovapost

www.epost.cawww.epost.cawww.epost.cawww.epost.ca

PurolatorPurolatorPurolatorPurolator IntelcomIntelcomCourrierCourrierIntelcomIntelcomCourrierCourrier

ProgistixProgistixProgistixProgistix

AssuredAssuredLogisticsLogisticsAssuredAssuredLogisticsLogistics

Border FreeBorder FreeBorder FreeBorder Free

Canada PostCanada PostCanada PostCanada Post



Canada Post Today - RevenueCanada Post Today - Revenue

Canada Post Group of Companies

Postal Services$5.03 Billion

Overnight Courier$1.05 Billion

Other$69 Million

Logistics$110 Million

Source: 2002 Annual Report



Our ChallengesOur Challenges

• Growing service delivery expectations

• Declining mail network economics Lettermail volumes declining: 1–5%/yr Network getting larger: 175,000 new addresses/yr 12% decline in revenue per address

• Continued focus on cost management

• Increased pressure for openness and accessibility

• Demand for new technology, without risking security

• Openness to new models of collaboration



Government ChallengesGovernment Challenges

How do we …….

• Improve Reach and Speed of Public Communications

• Increase Access to Government Services

• Support Two-Way Multi-Channel Communication

• Enhance Secure Document Distribution

• Support the Transition to eGovernment

• Simplify Document Management

• Enhance Our Mailroom Operations

• Optimize Regional and Local Office Connectivity

• Reduce fraud and theft



Responding to CustomersResponding to Customers

Providing Services Across Multiple Channels

• Improving Customer Satisfaction – Introduced first point of contact resolution

86% of customer inquiries resolved at first point

• Channel Evolution– Meeting customer interests for online channel:

12,100 customers ordering products and services 16,000 commercial customers using Electronic Shipping Tools 1,700 retail outlets ordering inventory 9,700 commercial customers managing their accounts 11,000 procurement shopping baskets created electronically each month

– Moving customers to automated voice response 46% of customers answered with self-serve IVR (used to be 8%)

– Moving 1,000 retail outlets to pre-authorized payment– canadapost.ca website responds to 17 million unique visitors per

year growing at a rate of over 60% year over year and is ranked 7th among Canadian business sites



Responding to Customers: Responding to Customers: eSignatureeSignature

• Enhance delivery information to the Customer – Next Day availability

• Leverage the new Supply Chain functionality of SAP – Event Manager

– more than tracking and tracing

Objective: To Improve Customer Service and Reduce Signature Capture And Data Entry Costs

Challenge: Next day availability of information from 40,000 documents originating in > 6000 locations and handled by > 30,000 people.

• Leverage existing scanning technology – use of the right tool for the right task



• eSignature gives customers proof of delivery with a signature.

• eSignature has 3 methods of access – via the corporate website, the Online Business Centre and through Customer Service

eSignature – Customer AccesseSignature – Customer Access



eSignature eSignature – – Process Re-engineeringProcess Re-engineering

Our customer-facing improvements have resulted in lower internal cost and higher quality.

Signature/HardcopySignature/HardcopyPrinted NamePrinted NameSuccessfulSuccessful//AttemptedAttempted

Yesterday

Day 2by noon

Day 4 +Day 1by noon

TODAY•Successful/Attempted

•Printed Name

•Signature/Hardcopy



Responding to Customers:Responding to Customers:Canadians On The MoveCanadians On The Move

Canadians have told us …- They want the convenience of a one-stop service for all

address changes and are willing to receive service offerings aimed at simplifying the moving experience

Business, Organizations & Government has told us…

- Need timely, accurate, authenticated address changes/updates – and would like to communicate with movers, to offer services to simplify the moving experience

- Have already created consolidation portals to facilitate address changes to numerous departments at the same time

Our challenge – connecting 40 million items/day with

35 million Canadians in 14 million locations



Canadians On The MoveCanadians On The Move

• Canada Post is the primary destination for movers

over 70% of households notify Canada Post each year

• Our multi-channel response – the electronic Change of Address Portal connects with movers

• We have a vested interest in maintaining the integrity of the Canadian address database.



The Canada Post Mover’s PortalThe Canada Post Mover’s Portal

Authenticated Citizen/Business completes the Change of Address transaction on the new Movers Portal

Citizen/Business completes check list of government agencies and businesses for CPC to notify and is presented with a unique page for each selection

The “Movers Portal”

File is sent to the identified mailer with name, old/new address, unique identifier, and any special requests



Responding to Small BusinessResponding to Small Business

BUSINESS MARKET

* Number of Customers

Enterprise Customers – Sector:

Mid Market Customers:

Small Business Customers:

5,000

>300,000

>1.5 M



Note: These are not points of competitive differentiation, they are expectations.

easy-to-use and easy-to-buy services. Simplicity

Efficiency streamlined business products.

Reliability consistent supplier experience.

Choice convenient points of access & product range.

Savings savings of time and money.

Dedication relevant suppliers, not partners.

Benefits value-added resource extensions.

Small Businesses want:

Listening to Small BusinessListening to Small Business



Win-WinWin-Win

For Partners Channel to reach small business Provides co-op marketing opportunities Provides market intelligence

For Canada Post Improved customer

satisfaction Enhances customer

loyalty Multi-channel services Market intelligence Direct customer channel Flexible program Tool for co-op marketing Generates new business

For the Customer

It’s instant recognition

It’s credible

It’s valuable



Communications Value ChainCommunications Value Chain

CAPTURE

IMAGEDELIVER

ARCHIVE

DESTROY

REMITTANCE PROCESSING

FULFILL

Response

CAPTURE

DATA

SORT / OPEN

Today converting SENDER responses into information and action is long and highly fragmented; a mix of internal and external activities, physical and electronic operations, diverse technology, and commoditized services.

DataDataDataData ConversionConversion

ConversionConversion

PrintPrint Telephone Telephone ElectronicElectronic

PrintPrint Telephone Telephone ElectronicElectronic

MailMailMailMail AnswerAnswer

AnswerAnswer ConversionConversion ConversionConversion DataData

DataData

Scanners and Document

Capture Software

Scanners and Document

Capture Software

Data Capture Software

Data Capture Software

Order Fulfillment

Order Fulfillment

Remittance ProcessingRemittance Processing

Document Management

Document Management



•Current BRM processes can take 4+ weeks

~3 days BRM induction to collection processing by ~1 week ~2-3 weeks

client fulfillment handling customer receipt

•Future potential – 1 day

BRM induction CPC Digital Response Mail Service

Customer receives item next day

Digital Response MailDigital Response Mail

Responsiveness Increases Customer Satisfaction

1 day



Canada Post is a Trusted Canada Post is a Trusted Service ProviderService Provider

Do Canadians perceive Canada Post as a trusted organization and along what dimensions?

• 94% of Canadians trust Canada Post

• Canadians trust Canada Post because we provide reliability, verification, recourse, and lack any vested interest in the transaction



What Does Trust Mean What Does Trust Mean Online?Online?

Does the trust factor associated with Canada Post in the real world translate to online?

• 63% of Canadians agree with the statement that “Canada Post has a role in protecting information sent and received online just like the role it plays today in protecting the information in my physical mail.” “I am more likely to use an online service if

Canada Post was a partner in the service” 54% agree

“Some online transactions require independent verification that they occurred and Canada Post has the experience to provide this” 53% agree



New Online Trusted ServicesNew Online Trusted Services

Electronic Document Presentment and Payment

• Also known as e-billing or EBPP (electronic bill presentment and payment)

• EDPP services allow consumers to receive, view, pay, manage, and store their bills and other critical documents online

For municipalities these include:- Hydro, Water, Property Tax, Business

Tax, and Licensing



New Online Trusted Services New Online Trusted Services - epost- epost

• epost provides an expanding document delivery network that connect Canadian business and consumers at a range of secure online locations

• One-time registration for any user

• Permanent, web-based location that is not dependent on a specific banking relationship, ISP or physical address

– enables universal access via epost homepage, Canadian Financial Institutions & personal financial software

• provides 24/7 customer care to manage registration process, username and password inquiries

• Digital Postmark - offers secure system and mailbox - distinct from email, e-courier and any other e-service



epost Evolutionepost Evolution

• Consolidated EDPP content in Canada previously fragmented between two services:

epost: Online “postal” model

webdoxs: On-line “banking” model

• Services divided Mailer and Consumer communities– Consumer: epost 35%; webdoxs 65%– Mailer/Biller: epost 55%; webdoxs 45%

• This fragmentation was significantly impeding further EDPP adoption by Canadian businesses and consumers

– Limiting value and return on investment for stakeholders

• Choice was to negotiate some “union” between the services to increase the market viability of each



eepost Will Form a Single EDPP post Will Form a Single EDPP ServiceService

• On July 8, 2004, epost acquired the BCE Emergis webdoxs service and will combine it with the epost service to form one of the most complete EDPP services in the world

100 of Canada’s largest Mailers/Billers will be delivering over 200 distinct documents

epost consumer usage is forecast to grow from more than 1 million users to 4.5 million users over five years

Seamless integration with every Tier 1 FI Web banking platform in Canada – 10 million potential customers



New Online Trust ServicesNew Online Trust Services

• Digital Commerce can remove the inefficiencies inherent in today’s paper-based transactions for signing and approvals

• Technology companies are building the platforms to facilitate digital commerce

• Governments and organizations are moving to develop the policy and legal framework for digital commerce

But, a gap remains…who will store the information as an impartial 3rd party and provide a time stamp to satisfy PIPEDA document retention periods?



The Electronic Postmark fills The Electronic Postmark fills the Gapthe Gap

An Electronic PostMark provides evidence of:

• Who signed the document / transaction

• What was signed

• When it was signed

• Plus Storage and Archival of this evidence for as many years as required



The Electronic Postmark Fills The Electronic Postmark Fills the Gapthe Gap

• Global application vendors need a universal way to support trusted digital signatures and time stamps in their applications.

• With Universal Postal Union’s Electronic Postmark standard, application vendors can program to one interface that has significance worldwide.

• Right now the only alternative is for separate developments for each country – this is expensive in long term

• Electronic Postmarking will be an integrated component of the popular Microsoft Office and Adobe applications to produce ease of access and worldwide service reach



Screen Shot of EPM and WordScreen Shot of EPM and Word

• For any document, form or “piece of electronic paper” – non-repudiation is applied in the form of a “PostMark” that also seals the document

• Once applied, the item is sealed as if it were in the mail – it cannot be tampered or corrected without trace

• And it is printed with the document to provide proof in paper form as well.

• Cross Border Signing can be supported!

Postal Brand on All Desktops



User Experience – UPU EPM User Experience – UPU EPM for Microsoft Outlookfor Microsoft Outlook

• Postal branding

• Proof of existence at a point in time

• Proof of transport (sending and receiving)

• Electronic and physical evidence – better than a signature

• Can be MIME extension or an EPM attachment

• Can have a “universal viewer” that works with non-outlook mail clients



Canada PostCanada Post

• We are continuing to re-engineer our business processes to improve on our delivery of services, to create more value in a multi-channel, demanding environment.

• Given the important role that mail and electronic channels play in servicing businesses and citizens, we are committed to providing increasing value throughout the value chain:

Leveraging our Business Process Re-engineering experiences

Growing value through integrated, multi-channel services and solutions

Reaching Canadian Small Businesses Growing interactive Mail Capabilities that can become

powerful tools in the delivery of services

Applying the Right Tools to achieve the Right ResultApplying the Right Tools to achieve the Right Result



CPC - A Trusted Partner in Public CPC - A Trusted Partner in Public Sector Service DeliverySector Service Delivery

from anywhere… to anyone taking care of business – december 2004 taking care of business...

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