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Taking Care of Business Innovation @ Canada Post

Taking Care of Business Innovation @ Canada Post. Agenda. Canada Post Today Taking Care of Business Challenges How We’re Enabling Change Creating Value for Our Customers Solutions for Improving Service Delivery. Canada Post Today - Profile. C$6.2B organization 66K employees

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Taking Care of Business Innovation @ Canada Post

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  1. Taking Care of BusinessInnovation @ Canada Post

  2. Agenda • Canada Post Today • Taking Care of Business Challenges • How We’re Enabling Change • Creating Value for Our Customers • Solutions for Improving Service Delivery

  3. Canada Post Today - Profile • 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 Innovapost Purolator Intelcom Courrier Progistix www.epost.ca Border Free Assured Logistics

  4. Canada 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

  5. Our 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

  6. Government 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

  7. Responding 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

  8. Enhance delivery information to the Customer – Next Day availability • Leverage existing scanning technology – use of the right tool for the right task • Leverage the new Supply Chain functionality of SAP – Event Manager • – more than tracking and tracing Responding to Customers: eSignature 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.

  9. eSignature – Customer Access • 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

  10. eSignature – Process Re-engineering Yesterday Successful/Attempted Signature/Hardcopy Printed Name Day 2 Day 1 Day 4 + by noon by noon TODAY • Successful/Attempted • Printed Name • Signature/Hardcopy Our customer-facing improvements have resulted in lower internal cost and higher quality.

  11. Responding to Customers:Canadians On The Move Our challenge – connecting 40 million items/day with 35 million Canadians in 14 million locations 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

  12. Canadians 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.

  13. The “Movers Portal” File is sent to the identified mailer with name, old/new address, unique identifier, and any special requests The Canada Post Mover’s 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 Authenticated Citizen/Business completes the Change of Address transaction on the new Movers Portal

  14. Responding to Small Business BUSINESS MARKET 5,000 Enterprise Customers – Sector: >300,000 Mid Market Customers: >1.5 M Small Business Customers: * Number of Customers

  15. easy-to-use and easy-to-buy services. • Simplicity • Efficiency streamlined business products. • Reliability consistent supplier experience. convenient points of access & product range. • Choice savings of time and money. • Savings • Dedication relevant suppliers, not partners. • Benefits value-added resource extensions. Note: These are not points of competitive differentiation, they are expectations. Listening to Small Business Small Businesses want:

  16. For the Customer • It’s instant recognition • It’s credible • It’s valuable 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 Partners • Channel to reach small business • Provides co-op marketing opportunities • Provides market intelligence Win-Win

  17. 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. Data Conversion Print Telephone Electronic Mail Answer Conversion Data Response SORT / OPEN CAPTURE IMAGE DELIVER CAPTURE DATA Scanners and Document Capture Software Document Management ARCHIVE Data Capture Software DESTROY FULFILL REMITTANCE PROCESSING Order Fulfillment Remittance Processing Communications Value Chain

  18. Digital Response Mail • 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 1 day Responsiveness Increases Customer Satisfaction

  19. Canada Post is a Trusted Service 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

  20. What Does Trust Mean 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

  21. New 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

  22. New Online Trusted Services - 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

  23. epost 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

  24. epost Will Form a Single EDPP Service • 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 servicesin 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

  25. New 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?

  26. The Electronic Postmark fills the Gap An Electronic PostMark provides evidence of: • Who signed the document / transaction • What was signed • When it was signed • PlusStorage and Archival of this evidence for as many years as required

  27. The Electronic Postmark Fills the 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

  28. Screen Shot of EPM and Word Postal Brand on All Desktops • 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!

  29. User Experience – UPU EPM for 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

  30. Canada 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 Result

  31. CPC - A Trusted Partner in Public Sector Service Delivery

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