Anticipating the Industry's Machinery Needs Ahead of the Marketplace Demand Greg Howell Managing Dir

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Anticipating the Industry's Machinery Needs Ahead
of the Marketplace DemandGreg HowellManaging
DirectorPitney Bowes Australia New Zealand
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Is there a future for mail?
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Myths

• The paperless office is close
• Business Week, 1975
• By the turn of the century we will live in a
  paperless society
• Fortune 10 CEO, 1986
• If mail service fails to improve, 60 of mail
  will be delivered
• electronically by the year 2000
• Wall Street Journal, 1987
• Electronic mail..could replace 25 of snail
  mail by 2000
• TIME Magazine, 1998
• E-mail is disrupting postal services. The volume
  of personal
• communication that is done by letter is dropping
  precipitously,
• leaving postal services with magazines, bills and
  junk mail
• Clayton Christensen, The Innovator's Solution,
  2003

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Myths Early EBPP forecasts
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Reality

• Current forecasts suggest EBPP will have a
  reduced effect on mail volume

Source PB Analysis from Forrester, Jupiter,
Giga, and USPS Household Diary
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Mail Communication Works

• People accept mail-based communications
• Many prefer this medium
• Data driven personalisation drives higher
  response
• Consumers want relevant information
• Colour drives results
• Impossible to achieve same results in monochrome
  environment

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Australia Post Study

• Quotes
• The qualitative phase of the research exercise
  indicated that consumers understand and
  appreciate that personally addressed mail is able
  to achieve a consistent degree of relevance that
  is not possible through mass media.
• The research also found that often mail is
  shared with other people in the household, which
  is particularly pertinent to those purchases
  where more than one decision-maker is involved.
  Whats more, an equally high number of
  respondents kept the information to read later.

Source Australia Post Study performed by TNS
April, 2004
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its very difficult to make predictions,
especially about the future- Niels Bohr, Nobel
Prize in Physics, 1922
Many factors, not just technology, impacts how we
anticipate market needs
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Factors

• Mail Volumes
• Technology Advances
• Global Business Trends
• Economic Demographic
• Business Consumer Preferences
• Electronic Alternatives
• Competition
• Postal Products
• Mail Rationalisation
• Customers and the Industry at Large

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Mail Volume Growth
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Technology previously
Printing Inserts
Paper
To Inventory
Design
Printing Forms
Inserts
Database
Mailroom
Inserter
Forms
Document Printing
From Inventory
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Technology Current
Printing Inserts
Paper
To Inventory
Design
Printing Forms
Inserts
Database
Mailroom
Inserter
Forms
Document Printing
From Inventory
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Global Business Trends

• The rise of CRM
• Enterprise-wide view of customer
• Maximise customer value
• Strengthen relationships with customers
• Integrated customer communications
• Acquisition
• Retention
• Encompassing all media/communication channels
• Consistency of message
• Availability of rich data sources
• Data warehousing
• Data mining
• Delivering a better understanding of customers

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Customer Relationships

• are todays business currency and strongest
  asset.
• Capitalising on this asset through relevant
  communications means building long-term customer
  equity that propels profitability.

Profitability
Time
Customer lifecycle
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Customer Relationship Management
Wasted Advertising Opportunities Whitepaper,
Group 1 Software, March 2003
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Acceptability of mail communications
High
Fake No real understanding or relationship, but
attempts to simulate one Dear Mr. John Doe
Blatant Abuse Let us emphasize how much
information we have on you. Dear John,We
noticed ...
Perceived Level of Targeting
Junk No real understanding or relationship, nor
any appearance of one Dear Valued Customer
Serendipity Seemingly fortuitous offering of the
right product at the right time Dear John,We
thought ...
Low
Actual Level of Targeting
Low
High
Source Gartner Group
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Customers the industry at large

• How do the primary generators want messages
  delivered?
• Paper or E-Paper
• How do consumers want to receive
• Paper or E-Paper
• What will the future mail box look like
• or

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Anticipating the Industry's Machinery Platforms
designed for the market
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Designing to meet market needs

• Inserting systems are engineered to serve the
  markets core values
• Production Intelligence
• Provide high integrity
• Decrease the cost per mail piece
• Deliver consistent dependability
• Providing the ability to increase customer service

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Production Intelligence

• Traditionally targeted for high-end equipment
• Market demand for flexibility has been addressed
  by introducing this same level of intelligence
  onto lower volume and lower cost machines
• Providing access to smaller to medium generators
• Providing cost effectiveness for larger generators

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Production Intelligence Actionable Information
Not just What are my production stats Why is
machine 3 producing 20 less? Why is the
night shift performance below the others?
Floor Supervisor
Not just How efficient are we What can I do
to improve efficiency? Why do some jobs get
done on time, while others are consistently late?
Production Manager
Not just What are our operating costs Are we
in regulatory compliance? Which investment
will increase our productivity most?
Executive
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Production Intelligence Real Time
Access/Analysis

• Satisfy individual SLAs
• Increase quality through document integrity
• Optimise job efficiencies
• Maximise postal savings

Piece-Level Tracking and Reporting

• Reduce cycle time
• Improve resource management
• Maximise productivity

Process-Level Reporting

• Optimise capacity, workflow and processing costs
• Reduce production costs

Site-Level Status and Monitoring

• Ensure quality and end-customer satisfaction
• Enhance customer loyalty and retention
• Leverage enterprise investments

Enterprise-Wide Multi-Site Reporting
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Provide High Integrity
A inaccurate mail piece negatively impacts
customer satisfaction, hard-dollar costs and in
some instances theft or fraud

• Mail piece quality and accuracy
• Storing history of individual mail piece
• Monitoring and reporting of mailstream

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Decrease the cost per mail piece
The cost of manually regenerating a mail piece
can be 10 to 100 times the cost of preparing the
initial mail piece

• Continuous operating performance levels
• Shop floor analytics and reporting across all of
  print and mail
• Fewer reprints
• Minimal spoilage
• No damage to preceding of following collation
• Diverting collation before jam

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Deliver consistent dependability

• Maximum production over a work shift
• Ergonomic work cell
• Easy access to material at all times

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The ultimate truth

• All revenue in a company ultimately can be
  traced to the customer. In fact, more effectively
  acquiring new customers, retaining existing
  customers and growing all customers to maximum
  profitability are the most critical business
  issues facing today's CEOs.

Source DM Review Enterprise-Wide Customer
Relationship Management
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its very difficult to make predictions,
especially about the future Niels Bohr, Nobel
Prize in Physics, 1922
FROM ANTICIPATION TO REALISATION Through
IMAGINATION INNOVATION

• by listening to
• Global Market
• Analysts
• Posts

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Thankyou