1. EACO Conference 2015 Dr. E Kinara PMG Kenya EACO Conference 2015 Dr. E Kinara PMG Kenya

2. Contents

3. New Business Models  Internal  Profit Center based organograms The traditional Postal services have been centered on hierarchical organograms that has overtime introduced granite bureaucracy that have seriously compromised innovations and business decisions in the Postal Corporations in East Africa Peter Ducker introduces the Profit Center Models which designates all operation units as business units complimenting each other and decentralizes command and control creating an environment of innovations and quick decisions

4. New Business Models  External  Shift from Monopolistic to Public Private Partnerships The traditional business was majorly monopolistic with Postal services developing product offerings in silos A shift is to be made towards public private partnerships and close working with Governments to bridge various divides e.g. digital, financial, social amongst others This mitigates on investment portfolios e.g. in infrastructure, real estate and capital (fixed and working) Kenya example can be seen in various partnerships Financial services – Agency banking Huduma Centers Couriers for large hauls Etc.…

5. ICT as Driver of Change  It is imperative for Postal services to incorporate ICT as a new business frontier to enhance efficiency in service delivery Process Incorporation of ICTs in key process as track and trace, proof of delivery, sorting, front and back office (electronic scanners etc…) Systems Adopting enterprise solutions to foster management reporting and business intelligence foster quick response to market demands and needs Products Introduction on new ICT based offerings e.g. electronic mail, DMM, Hybrid Mail, WI-FI etc… will enhance the profit margins for the new posts.

6.  Postal and courier services will remain the core business for the operators  There is urgent need to increase efficiencies in delivery of these services  Major ways of improvement of the offering:- Track, Trace, Notification and Proof of delivery East Africa should fast track Physical Addressing Postal Organization should pioneer into e-Commerce (especially the delivery of Parcels and items shopped online) Partnerships with last mile delivery to reduce on costs e.g. the ‘Boda boda’ partnership proposal with KEMSA in Kenya.

7. Over coming the Challenges  ‘The most important internal barriers [to innovation in posts] have to do with being too slow to make decisions, too much bureaucracy and having a corporate culture that doesn’t encourage creativity’ -Dr. Kristian J. Sund (the Future in in the Post III) ‘

8.  Heavy capital investment in ICTs and training  Paradigm shift from the traditional thinking and operations  New Competition from the most unlikely competitor (Banks, Telecoms, Newspaper Companies…) Over coming the Challenges

9. EACO Conference 2015 Dr. E Kinara PMG Kenya EACO Conference 2015 Dr. E Kinara PMG Kenya