1. CHAIR, MANAGEMENT OF NETWORK INDUSTRiES Personal reflections on the future of Posts Matthias Finger Professor, EPFL Executive master in postal management 5 th and final module, Ras Al-Khaimah 28.1.2011

2. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 2 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

3. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 3 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?

4. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 4 Pressure on the State State global local Financial pressure Legitimation problems Competition Instrumentalization

5. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 5 Business opportunities National Public Global Decentralization Commercialization Policy-making (public, private, third sector) Regulation (State, TNCs, NGOs) Services: - Privatization - PPP Infrastructures Health Education Etc.

6. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 6 The pressure continues Institutions Technology centralization decentralization local global Nation- State Engine (global) governance ICTs Digitalization of everything (text, language, images …) Speed (data exchange) Capacity (data storage) Global availability Ability to analyze the data Interactiveness

7. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 7 Further challenges for the State Physical infrastructures of (public) services Electronic duplication of production (value chain) New services on the basis of The electronic duplication Efficiency gains outsourcing Innovation National, public Global, private Which role for the State?

8. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 8 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.

9. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 9 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, and data protection

10. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 10 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

11. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 11 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

12. CHAIR MANAGEMENT OF NETWORK INDUSTRIES 12 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