Seventy per cent of Posts worldwide consider postal e-services strategically important for the future, according to a first-of-its kind study by the Universal Postal Union that measures the development of these services. The research also establishes an important industry index against which to monitor e-services’ evolution.
The study points to a rapid growth in postal e-services. Globally, 85 postal e-services were introduced in 2010 alone, compared to 33 in 2007, according to the study.
E-post on top
The extensive list of services identified by the study were categorized in four areas: e-post, e-finance, e-commerce, and e-government. (Types of services included in each category are described below.)
E-post services are the most developed, especially in industrialized countries, followed by e-finance and e-commerce services, according to the study.
Specifically, the study shows that e-services, such as track and trace, online consultation of postcodes and post office locations, electronic money transfers, online payment of public utility bills, hybrid mail and address validation, are well developed and viewed as important.
Services considered strategically important but currently underdeveloped include electronic signatures, notifying customers of deliveries by SMS or e-mail, online changes of addresses, the provision of electronic postal certification marks, postal registered electronic mail, electronic customs documents and digital identities.
“What this study shows is that, as physical mail volumes decline, Posts are not standing on the sidelines. They are being innovative and making strategic use of new technologies to diversify their products and services to meet customers’ increasingly changing needs,” says UPU Director General Edouard Dayan. “And their innovation capacity is totally independent of wealth, which is why several Posts from developing countries are considered leaders in some areas,” he adds.
Postal e-services will be a key component of the UPU’s next world postal strategy to be adopted at its 25th Universal Postal Congress in Doha, Qatar, in September-October 2012. Dayan adds that the results of this study are providing the UPU with valuable insights into where to focus efforts to help member countries develop.
Overall index
In terms of overall development in postal e-services, the UPU index places the following countries in the top ten: Switzerland placed first, followed by Belarus, Italy, Germany, Qatar, Tunisia, France, the Republic of Korea, the United States and Canada.
While Posts from industrialized countries provide on average twice the number of e-services than their counterparts in developing countries, several of these are considered innovative and digital leaders in their own right, the study reveals. The index places Belarus, Brazil, South Africa, Tunisia and Ukraine in the top 25 in terms of overall postal e-services development.
In specific areas, Belarus ranked first in e-commerce services, while Switzerland led in e-finance and France in e-post services.
Even though several e-government services were identified in the study, the number of countries providing such services was insufficient to produce a specific index at this time.
Drivers of development
While postal e-services are considered important, the study also reveals that some Posts are still not giving them enough attention in terms of financing, market development and organizational management.
The study further suggests that such services currently contribute modestly to the bottom line – an average 1.5 per cent of a Post’s global revenues. “A few Posts are reporting confidentially that e-services are generating upwards of 30 per cent of their revenues,” says Farah Abdallah, UPU e-services expert, who co-authored the study. “This shows that if Posts develop a comprehensive digital strategy, there is potential for sustainable growth.”
When it comes to drivers of development, the study shows that a country’s innovation capability is more important than its wealth. The existence of appropriate regulation and infrastructure supporting information and communication technologies are also important factors.
Ninety-three Posts answered the UPU survey, resulting in a 49% response rate. The study will be conducted on a regular basis.
Study highlights
· Postal e-services are developing rapidly worldwide; the number of such services launched annually by Posts has tripled between 2007 and 2010.
· For the purposes of the study, 55 different types of postal e-services were identified worldwide.
· Seventy per cent of Posts worldwide consider postal e-services strategically important for the future.
· The first postal e-service – track-and-trace services – were introduced around 1992.
· Although there is a gap between industrialized and developing countries in terms of postal e-services development, the index established by the study shows that not all developing countries are trailing behind; some are considered leaders in e-post, e-commerce and e-finance.
· The development of postal e-services is driven more by innovation capability than wealth.
· ICT infrastructure and regulation as well as innovation are important drivers of postal e-services development.
· While postal e-services are considered strategically important, strategy, management and profits are not aligned.
Definitions
· E-post services include internet-access points in post offices, postal electronic mailboxes, online direct mail, etc.
· E-finance services include electronic invoicing, electronic remittances, online bill payment, e-payment of public utility services, etc.
· E-commerce services include online shops for postal and philatelic products, online subscription to periodicals, SSL web certificates, etc.
· E-government services include digital identity, electronic payment of retirement pensions, online passport applications, electronic customs documents, etc.