CHAIR, MANAGEMENT OF NETWORK INDUSTRiES

Personal reflections on the future of Personal reflections on the future of PostsPosts

Personal reflections on the future of Personal reflections on the future of PostsPosts

Matthias FingerProfessor, EPFL

Executive master in postal management5th and final module, Ras Al-Khaimah28.1.2011

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Arguments

• Current public sector reform leads to a new “market”, a “public administration market”, which in turn can become a business opportunity for Posts

• But there is more than a business opportunity: once active in this market, a postal operator can develop other lucrative activities

• Postal operators are generally well positioned here

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Structure of the presentation

• The challenges for the State / public sector and the subsequently emerging business opportunities

• … the pressure continues: further challenges for the State

• How shall the State react?• Some examples• Which role for a postal operator?

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Pressure on the State

State

global

local

Financial pressureLegitimation problemsCompetitionInstrumentalization

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Business opportunities

NationalPublic

Global

DecentralizationCommercialization

Policy-making (public,private, third sector)

Regulation (State, TNCs,NGOs)

Services:- Privatization- PPP Infrastructures

HealthEducationEtc.

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The pressure continues

Institutions

Technologycentralizationdecentralization

local

global

Nation-State

Engine

(global)governance

ICTs

Digitalization of everything(text, language, images …)Speed (data exchange)Capacity (data storage)Global availabilityAbility to analyze the dataInteractiveness

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Further challenges for the State

Physical infrastructures of (public)services

Electronic duplication of production(value chain)

New services on the basis ofThe electronic duplication

Efficiency gainsoutsourcing

Innovation

National, public

Global, private

Which role forthe State?

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How should the State think?

Layer 1: Digital (Telecom-)Infrastructures (FTTH, wireless)

Layer 2: Hardware and software platforms (“middleware enabling platforms”): digital identity, digital signature, secure

payment, secure electronic communication, registries, geo-information, data repositories, e-health, e-democracy, etc.

Layer 3: Services: e-justice portals, e-voting portals, registry information, mobility platforms, moving services, marketplaces,

etc.

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What shall the State (still) do?

Layer 1: digital infrastructure

Layer 2: middleware enabling platforms

Layer 3: Services

Designation of a national infrastructure provider; regulation:- Universal service (accessibility, affordability)- Interoperability- non-discrimination

Concessions to “trusted third party”Regulation- Universal service- Data protection

Regulation of quality, reliability, anddata protection

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Example: Finland

• Policy Program to reform the public administration and renewal of the public services

• Goal: increase the competitiveness of the country

• National CIO, central, high-level steering organism

• Systematic development of a national infrastructure and services

• Quality criteria for online services

• Equal recognition for physical and electronic documents

• Implication of the private sector, PPP

• Guarantee of data protection and interoperability

• Education initiative

• clear distribution of responsibilities and tasks between the central and the regional governments

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Example: South Korea

• Reform of the working methods, the services and the management of the information in the public administration

• Clear and measurable objectives

• Systematic development of a national infrastructure and services

• National CIO, central and high-level steering organisms

• Guarantee of data protection and interoperability

• Systematic involvement of the private sector, PPP

• Education initiative

• “World’s best open e-government”

• “Ubiquous Korea” Korean Post as a central tool for its implementation

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Which role for a postal operator

Layer 1: digital infrastructure

Layer 2: middleware enabling platforms

Layer 3: Services Posts (at least some) would be ideally positioned:

• Some have already developed middleware enabling platforms and services

• “trusted third party”

• Capable of offering a universal service and of further developing this service

• Capable of linking physical and electronic communication