L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

77
L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009 Postal Product Innovation

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Postal Product Innovation. L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009. “The problem that is usually being visualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them” Joseph Schumpeter - PowerPoint PPT Presentation

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Page 1: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

L.A. Pintsov and A. ObreaPitney Bowes Inc.

30 April 2009

Postal Product Innovation

Page 2: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

“The problem that is usually being visualized is how capitalism

administers existing structures, whereas the relevant problem

is how it creates and destroys them”

Joseph Schumpeter In “Capitalism, Socialism and Democracy”, 1942

The problem that is usually being visualized is how Posts administer existing products, whereas the relevant problem

is how they create and destroy them

Page 3: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

3

Page 4: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

4

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Forecast for “information” mail Forecast for “information” mail

• The volume of traditional letter mail products is declining– …and will continue to decline irrespective of the overall economic conditions– First and Second class mail are easiest targets for electronic diversion

• Mail as a information communication media is undergoing transformation from the dominant media to a specialized form (according to Marshall McLuhan)

• Consequences: – Traditional letter mail products will be transformed to a much more diverse and

multi-featured postal products that will be custom tailored to specific applications and specific vertical and geographic market segments

– New custom-tailored letter (information) mail products will be value priced even in in the markets where USO postal operators will retain monopoly over letter mail products

– Posts that will excel in this transformation will remain profitable– Commercial success of letter mail will be much less dependent on volume and

cost!

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Business ApplicationsBusiness Applications

• Human Resources– Payroll– Benefits– Education and training– Hiring– Recruiting and staffing– Records management

• Payment services– Card services– Check processing– EDI

• Sales, Marketing and Customer Care– CRM– Database marketing– Telesales and marketing– Web sales and marketing

• Administration– Tax processing– Claims Processing– Asset management– Document management

• Finance and Accounting– Billing– Accounts Payable /Accounts Receivable– General Accounting– Taxes management– Risk management– Financial reporting– Financial analysis– Financial managements– Investor relationships– Mergers and Acquisitions/Corporate

development• Logistics and Distribution

– Materials management– Fulfillment– Warehouse/Inventory management– Transportation– Procurement

All business processes with a communication component can benefit from integration with postal products

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Your Business

Communications - Business ApplicationsCommunications - Business Applications

Sales, Marketing

CRM,Accounts Receivable

Investor Relationship

Accounts Payable, ERP

Accounts Payable

Government Compliance

Benefits Management

Potential Customers

Existing Customers

Stockholders

Suppliers

Service Providers

Government Entities

Employees

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Your Business

Communications - Business ApplicationsCommunications - Business Applications

Sales, Marketing

CRM,Accounts Receivable

Investor Relationship

Accounts Payable, ERP

Accounts Payable

Government Compliance

Benefits Management

Potential Customers

Existing Customers

Stockholders

Suppliers

Service Providers

Government Entities

Employees

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Benefits of Integrated Communication ChannelBenefits of Integrated Communication Channel

• The postal product and the business application evolve independently – Automating the maintenance of these linkages minimize ‘friction’ and

complexity of execution (EPPML does that)

• Mail item design for maximum attractiveness to the recipient

• Data services

• Workflow, exception processing, services

• Better control of time and location of:– induction – delivery

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Page 10: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

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New approach to Postal Products New approach to Postal Products • Information technology can play far more significant role in

postal product innovation and consumption

• How? Hint: Teach computers the notion of “postal product” – What is the “postal product” from human and computer

perspectives?

• All known postal products (existing and planned) have a deep structure that can be formalized for computer processing while preserving their essential human processability

• Postal product can be described as a collection of named attributes which have measurable values

• Postal product can be represented for computer processing using modern mark-up language (à la XML)

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Model Model

• Mail creation, induction, processing and delivery driven by standardized information interfaces between all parties involved

• Model to emulate: e-commerce – ubiquitous computing– connectivity – information presentation standards (XML/HTML)

• Postal product is a (multi round) communication protocol between Post and customers – standardized set of interfaces 12

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Structure of postal productStructure of postal product• Physical elements described by data attributes

– Physical parameters (dimensions, volume, density, material characteristics) and content (restricted for certain services)

– Network Parameters (geography of induction and delivery)– Priority & (where there are options) routing information– Timing and frequency of collection and delivery

• Information about– Events that occurred during mail item processing– Other mail items linked to the mail item being served – Objects linked to the mail item being served (box, signatory, …)– Other mail sent, received or replied to by sender or recipient

• Rules – Conditions imposed on physical and informational elements

(mail unit, mail unit content, mail unit attributes, money)• If (attribute X meets this condition) Then (do this)

– Remedies for when service could not be delivered as specified 13

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Postal product access requirements Postal product access requirements

• Mail Item make up – data, format and placement

• Computerized data to accompany mailing – timing, messaging and protocol requirements – examples: Statement of Mailing Submission (SMS), Manifest, PostalOne

documentation etc.

• Grouping and containerization – pre-sort and mail unit nesting requirements

• Pricing and payment requirements– Rates and accounting rules

• Offering requirements

• Validity period14

Page 15: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

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What is EPPML?What is EPPML?

• Extensible Postal Product Model and Language

• EPPML enables standardized definition of almost unlimited variety of postal products – Standard: UPU S54

• A postal product expressed in EPPML:– Is an information object (suitable for computer

processing)– Can be represented by elements organized as an

extensible collection of measurable attributes– All postal products represented in EPPML have a common

structure across all carriers/posts (defined by EPPML standard schema)

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Postal Product RepresentationPostal Product Representation

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<PostalProduct xsi:noNamespaceSchemaLocation=…... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID>... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints>...</PostalProduct>

<PostalProduct xsi:noNamespaceSchemaLocation=…... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID>... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints>...</PostalProduct>

governs the structure ofgoverns the structure of

DMM

contains contains contains contains

contains contains

ProductDefinition(XML doc)

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Postal Product XML Schema

Top Level Outline

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Postal Product RepresentationPostal Product Representation

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The common structure for representing Postal Products is defined by EPPML Schema

(draft UPU Standard)

The common structure for representing Postal Products is defined by EPPML Schema

(draft UPU Standard)

attributeattribute

value of an attribute

value of an attribute

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1. Designing new product

2. Evaluating new product operational feasibility

3. Evaluating new product economic feasibility

4. Marketing and selling new product

5. Production (delivering new product)

Note: – First three activities are essentially information gathering and processing– Fourth activity can be organized also as information processing– Production is a set of physical and information processing activities (mail

creation, collection, induction, sorting, transportation, delivery and data services)

Postal product innovation with EPPMLPostal product innovation with EPPML

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1. Designing new product2. Evaluating new product operational feasibility

– Access requirements3. Evaluating new product economic feasibility

– Costing and pricing4. Marketing and selling new product

– Distribution channel– Enabling access to new products

5. Production (delivering new product)– Mail creation (mailer)– Mail processing and delivery (post)

Postal product innovation with EPPMLPostal product innovation with EPPML

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Designing new productDesigning new product

Postal product design must encompass and leverage collective customers’ knowledge rather than simply "marketing existing products to existing customers".

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Capturing mailer’s needs and constraintsCapturing mailer’s needs and constraints

23Mailer Domain

Mailer’sNeeds and

Cons-traints(XML)

Mailer’sNeeds and

Cons-traints(XML)

<MailerNeeds xsi:noNamespaceSchemaLocation=…... <MailerID>1234PB6789-... </MailerID>... <MailUnitAttribute> <Weight>6</Weight> </MailUnitAttribute>...</ MailerNeeds >

<MailerNeeds xsi:noNamespaceSchemaLocation=…... <MailerID>1234PB6789-... </MailerID>... <MailUnitAttribute> <Weight>6</Weight> </MailUnitAttribute>...</ MailerNeeds >

Tracking

InductionEvery DayNone

InductionEvery DayNone

Chicago

Chicago

Mail Operations

Weight (Kg)6

Delivery TimeTuesday

Comm. owner

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XML representation for postal product XML representation for postal product

Postal Operator Domain

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

<PostalProduct xsi:noNamespaceSchemaLocation=…... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID>... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints>...</PostalProduct>

<PostalProduct xsi:noNamespaceSchemaLocation=…... <UniqueProductID>CD12-9123-FFE5-912E-... </UniqueProductID>... <MailUnitAttributeConstraints> <AccessRequirements> <MailUnitPhysicalAttributes> <Weight>0-2</Weight> </MailUnitPhysicalAttributes> </AccessRequirements> </MailUnitAttributeConstraints>...</PostalProduct>

Weight Range

Induction0-30 Kg10-100 Kg

Induction0-30 Kg10-100 Kg

0-2 Kg

0-2 Kg Max. Transit Time

2 d5-7 d

2 d5-7 d

2 d

1 d2 d

marketing

Confirmation of events

InductionFirst processingDelivery

InductionFirst processingDelivery

InductionInduction

operations

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Redirection and positive proof of identity product as an EPPML document

Redirection and positive proof of identity product as an EPPML document

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Postal product innovation with EPPMLPostal product innovation with EPPML

1. Designing new product2. Evaluating new product operational feasibility

– Access requirements3. Evaluating new product economic feasibility

– Costing and pricing4. Marketing and selling new product

– Distribution channel– Enabling access to new products

5. Production (delivering new product)– Mail creation (mailer)– Mail processing and delivery (post)

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Page 27: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

New product cost accounting in post-reform environment

New product cost accounting in post-reform environment

• Quick introduction of new products requires quick and reliable estimation of their costs

• Need to accommodate customized products

• Dynamic costing and pricing

• Automated cost accounting process is the way to go

• Two modes:– Pre-computed cost (before product introduction) as a

function of anticipated demand (volume)– Post-computed cost based on actual demand with the

demand data collected in real time (on-line)

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Cost accounting in EPPML-enabled environment (ABC method)

Cost accounting in EPPML-enabled environment (ABC method)

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Postal Process DecompositionPostal Process Decomposition

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PPDF mapping to postal process

• Postal Product Definition File (EPPML) is ‘compiled’ to map to the post’s operational capabilities

• Results:– Activity list– Parameter values

• Add activity– Identify parameters– Identify values

• Feed into cost drivers

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Postal product innovation with EPPMLPostal product innovation with EPPML

1. Designing new product2. Evaluating new product operational feasibility

– Access requirements3. Evaluating new product economic feasibility

– Costing and pricing4. Marketing and selling new product

– Distribution channel– Enabling access to new products

5. Production (delivering new product)– Mail creation (mailer)– Mail processing and delivery (post)

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Post / CarrierPost / Carrier

Creation of Postal Product

Creation of Postal Product

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

definitionsof postal products

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Post / CarrierPost / CarrierPost / CarrierPost / Carrier

Mailer DomainMailer Domain

Post / CarrierPost / Carrier

Download Postal Products

Download Postal Products

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

Data Center Data Center

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

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Mailer DomainMailer Domain

Post / CarrierPost / Carrier

Mailer Selects Product

Mailer Selects Product

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

Data Center Data Center

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

Page 35: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Mailer DomainMailer Domain

Post / CarrierPost / Carrier

Mail Generation and Induction

Mail Generation and Induction

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

Data Center Data Center

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

mail tray

MailCreation

Instructions

Page 36: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Mailer DomainMailer Domain

Post / CarrierPost / Carrier

Mailer Requests New Postal Product

Mailer Requests New Postal Product

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

Data Center Data Center

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

Request new

product

request received

Page 37: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Mailer DomainMailer Domain

Post / CarrierPost / Carrier

New product consumptionNew product consumption

Operations Operations

Data Center Data Center

product(XML)

product(XML)

product(XML)

Data Center Data Center

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

product(XML)

mail tray

MailCreation

Instructions

request received

newproductavailable

newproductin use by mailers

days

product(XML)

product(XML)

product(XML)

product(XML)

Page 38: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Designing New Postal Product Designing New Postal Product

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Post

Regulator

Postal Product Development

Operations

Recipient

Application for new product

(EPPML)

New Product Definition File

Operational Constraints

Application for new product

(EPPML)

Mailer Recipient

Mailer’s BusinessCommunication Requirements

New or Updated Carrier Products

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On-demand New Postal ProductsOn-demand New Postal Products

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Mailer Post

Postal Ops

Updates and additions to Postal Product Definition

Files

Request

for Postal Product

Page 40: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Postal product innovation with EPPMLPostal product innovation with EPPML

1. Designing new product2. Evaluating new product operational feasibility

– Access requirements3. Evaluating new product economic feasibility

– Costing and pricing4. Marketing and selling new product

– Distribution channel– Enabling access to new products

5. Production (delivering new product)– Mail creation (mailer)– Mail processing and delivery (post)

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Postal Product DeliveryPostal Product Delivery

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Post

Data Center

Operations

Recipient

Product Definition File(s)

Operational Data

Customer-directed information

Mail UnitMail Unit

Customer-directed information

Mailing Information

Mailer Recipient

Mail assembly

and finishing

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Mail creation driven by EPPML

Mail creation driven by EPPML

Mailer

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

Postal Product (XML)

Postal Product (EPPML)

Postal Product (EPPML)

Mailer’sNeeds

(EPPML)

Mailer’sNeeds

(EPPML)

Post

Mailer’sConstraints

(EPPML)

Mailer’sConstraints

(EPPML)

Mail Production Systems

mail tray

Instructionsfor

Mail Production

(EPPML)

Instructionsfor

Mail Production

(EPPML)

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Working in Concert

Working in Concert

PostMailer

UPU

product(XML)

product(XML)product

(XML)

New Products

New Mailing

schema(XML)schema

(XML)

schema(XML)

Cons

train

ts

XML CDI

mail traySMS

Operations

Needs(XML)

product(XML)

product(XML)product

(XML)

Needs and Preferences

Instructions(XML)

Page 44: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

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Examples of Innovative Postal Products:

Mutually Trusted Mail (MTM) Product

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RequirementsRequirements

• Sender wishes to be assured that a given mail unit has been delivered and received by the specified recipient at a certain time and at a certain place

• Sender wishes to keep the content of the mail unit intact and secret (only sender and recipient are supposed to know the content and the content arrived as it has been sent)

• Recipient wishes to be assured that mail unit came from the right source (sender) and that it contains content that recipient ordered or expected

• Recipient wishes to be able to redirect delivery of the mail unit after it has been sent

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Robert Dupont

Rue d’Example

1000 Lausanne

12345678901234

Mail Unit

Tracking Number (Mail Unit Identifier)

Evidence of Postage Paid (Stamp, Meter Impression,Or Permit)

Partial Ciphertext(Ciphertext1)

Page 48: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Mail Unit Production System (Sender)

Computer

Postage MeterOr Mailing MachineOr Inserter

Label printer

Office Printer

Robert Dupont

Rue d’Example

1000 Lausanne

123456

Data CenterRecipient

SpecialServices Data Internet

Database

Mail Unit

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Database Record ContentDatabase Record Content

Mail Unit Tracking Number

(Mail Unit Identifier)

Recipient Name/ Address

Informationand

Location Information in

geographic coordinates

Mail Unit Content

Mail Unit Physical Attributes:Weight

Mail Unit Physical Attribues:Dimensions

Mail Unit Physical Attributes :Color

Ciphertext1: InformationIn the bar code present on Mail Unit(hexadecimal10 bites)

Ciphertext2:Information stored in the (200 bytes)

Decryption Key Part1:One TimeRecipient Identification Code (OTRIC)(Decimal)20 bits

Decryption Key Part 2: Information stored in the (Decimal)108 bits

57.xxx.001 Robert DupontRue d’Example1000 LausanneSwitzerland

Geocordinates:Latitude 42 deg 40 min 62.55 sec N Longitude 3 deg 39 min 34.57 sec E

Viagra Tablets Rx 12356799PhilomelRx 23459875

357 gr 23x18x15 cm Brown A01BFT985AB885EC768C

B01BFT985FEF183E076EFA4311DF51B35………………..F34CB7A5931

12345 9874653022781374103266013953

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Portable Wireless Scanning device (PWS) for Delivery Agent

Display

Key Entry Pad

Scanning Camera

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Data Center

Carrier

Sender

MailUnit

Recipient

DeliveryAgent

PWS

Mail Unit

Mail Unit

Internet

DataBase

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Examples of Innovative Postal Products:

Vote by Mail

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RequirementsRequirements

• One voter one vote– No votes are lost– No more than one vote per voter

• All ballots are delivered to voters (Sender is Voting Commission)

• All votes are counted(Sender is the voter)

• Privacy – the vote should be private to the voter(The ballot cannot be traced to the voter)

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System DiagramSystem Diagram

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Page 55: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Mail Piece with Voting BallotMail Piece with Voting Ballot

55

Ballot Type

Mail Piece Identifier

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Mail Piece with VoteMail Piece with Vote

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Voting Commission101 Washington BlvdCentertown, CT 06499-4321

Mail Piece Identifier

Return envelope provided by the Voting Commission

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Example: Integrating processes inVoting Commission and Post

Example: Integrating processes inVoting Commission and Post

Votes are accounted for from induction to counting in the Voting Commission:– Potential attackers:

• Employees of the voting commission or their contractors• Postal employees or contractors• Intruders

– Attacks:• Remove votes from the set of returned votes or otherwise render the votes uncountable

– The process of detection and reporting:• The Voting Commission communicates to the Post the list of unique identifiers assigned

to return envelopes • The post counts the votes observed in the mailstream (their identifiers are a subset of

the list provided by VC)• The count and the list is provided to Voting Commission via Manifest (arrow 10) • The Post delivers mail items with votes (arrow 7)• The Voting Commission detects discrepancies (addition, deletions, duplicates)

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Supporting Information Supporting Information

58

• Discrepancies of thickness and weight together with mail item identifiers• Discrepancies of ballot types together with mail item identifiers• Multiple entries together with mail item identifiers• Missing names / addresses and identifiers to the voting commission• Fraudulent (identifiers not included in the list provided by the Voting

Commission) or duplicate identifiers to the voting commission

• Discrepancies of thickness and weight together with mail item identifiers• Discrepancies of ballot types together with mail item identifiers• Multiple entries together with mail item identifiers• Missing names / addresses and identifiers to the voting commission• Fraudulent (identifiers not included in the list provided by the Voting

Commission) or duplicate identifiers to the voting commission

• Mail item identifiers and their ballot types • Names / addresses and identifiers of voters• Mail item thickness and weight

• Mail item identifiers and their ballot types • Names / addresses and identifiers of voters• Mail item thickness and weight

Page 59: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Attributes of Postal Products – outgoing ballotAttributes of Postal Products – outgoing ballot• Mail item design

– (Visible) Ballot type (Data content, Data format, Placement) – Voter name / delivery address (Data content, Data format, Placement )– Mail item identifier (may be placed either on the outbound envelope or on a visible insert, i.e. address bearing

document) (Data content, Data format, Placement )

• Product characteristics– transit time– geography of induction, geography of delivery

• Access requirements.– SMS (as defined in CEN 15523), no later than induction time – List of voter names and addresses together with corresponding ballot type– Info about physical characteristics of mail item (SMS)

• Customer Directed Information (includes information identifying the processing step and its time and location)

– Mailer (Voting commission) Directed Information• Discrepancies of thickness and weight together with mail item identifiers• Discrepancies of ballot types together with mail item identifiers• Multiple entries together with mail item identifiers• Missing names / addresses and identifiers to the voting commission.• Fraudulent (identifiers not included in the list provided by the Voting Commission) or duplicate identifiers to the voting

commission.– Recipient (Voter) Directed Information

• Contingencies– Handling of undeliverable mail items 59

Page 60: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Attributes of Postal Products – returned voteAttributes of Postal Products – returned vote

• Mail item design– Delivery address (Voting commission address) (Data content, Data format, Placement) – Mail item identifier (Data content, Data format, Placement) – (Visible) Ballot type (necessary to group and deliver info to recipient VC) (Data content, Data format, Placement)

• Product characteristics (transit time, geography of induction, geography of delivery)– geography of induction (limit the geography for each instance of the product – that implies that for each customer

there is another product)– geography of delivery

• Access requirements• Customer Directed Information

– Mailer (Voter) directed information– Recipient (Voting commission) Directed Information

• List of multiple entries together with mail item identifiers• List of fraudulent or duplicate identifiers (resulting from comparing the identifiers of returned mail items

received by the post against the list of return mail items identifiers provided by the Voting Commission).• Manifest of return mail items (votes) received by the post• Manifest of return mail items (votes) delivered by the post to the Voting Commission

• Contingencies– Handling of undeliverable mail items

60

Page 61: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

61

Examples of Innovative Postal Products:

Provable Content Product

Page 62: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

RequirementsRequirements

• Sender wishes to prove to a third party (court of law) that certain text (message) has been delivered and received by the specified recipient at certain time

• Sender wishes to keep the text of the message private (only sender and recipient are supposed to know the message)

Page 63: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Jelto J. Stant

Universal Postal Union

3000 BERNE 15SWITZERLAND

Cancellation Notice

Your franking privileges (Rental Agreement

# 123626) are cancelled as of

November 7, 2008

Reason---------------------------------------------Action Required------------------------------

Appealing----------------------------------------

Vienna, AUSTRIA

Original Cancellation NoticeOriginal Cancellation Notice

Page 64: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Jelto J. Stant

Universal Postal Union

3000 BERNE 15SWITZERLAND

GMBHVienna, AUSTRIA

pitney.bowes

Hash value of the document message

Graphic security elements

CANCELLATION NOTICE

Document message:Cancellation Notice

Franking Rental Agreement # 123626Date: November 7, 2008

Unique Identifier includes Email address of the sender

Mail Item Containing Original Cancellation Notice

Mail Item Containing Original Cancellation Notice

Page 65: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Jelto J. Stant

Universal Postal Union

3000 BERNE 15SWITZERLAND

Cancellation Notice

Your franking privileges Rental Agreement

# 123626 are cancelled as of

November 15, 2008

-------------------------------------------------------------

-------------------------------------------------------------

--------------------------------------------------------------

Vienna, AUSTRIA

Fake Cancellation NoticeFake Cancellation Notice

Page 66: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

66

Demonstration of EPPML Software Tools

Page 67: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Implications for mailers and recipientsImplications for mailers and recipients• User-friendly way of telling posts mail users’ needs

– expressing needs and wants in common language – automatically translatable into EPPML-structured candidate product

definition files• Automated access to postal products tailored to mailers needs• Mailers’ equipment can “translate” EPPML product descriptions into

executable design of mail items and mailings automatically consistent with postal product access requirements– Reduction or complete elimination of special expertise required for access

to sophisticated new products (mail make up, machine readable marks, data services)

• Operational cost reduction associated with reduced mail defects and costly exception processing

• Integrating mail with business applications– Example: Customer Relationship Management integrating information from

multiple sources including mail• Negotiating services (future)• Recipients participate too!

– Communicating with postal operators and carriers naturally

67

Page 68: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Implications for Postal MarketingImplications for Postal Marketing

• Adaptive marketing and demand-driven postal products – Responsive to senders and recipients communication needs and desires– new products- new revenue

• Internet and web take care of product distribution channel and product (free to Post)

– awareness even for very small market segments with very specialised needs• Virtual Private Channel

– lock in customers by providing private access to product details and pricing for selected customers

– 1:1 marketing and value-based pricing (higher margins on postal products custom-tailored to mailers and recipients needs)

– branding– information privacy and security via secure authenticated communication channel

and automation of contractual requirements• Cryptographic solutions already exist

• Cross-border mail– improved consistency of products between participating postal operators– computerized mailer generated information for customs clearance– full Track &Trace capabilities including delivery confirmation for mission-critical mail

items (e.g. eBay applications)

68

Page 69: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Implications for postal product delivery (Postal Operations)

Implications for postal product delivery (Postal Operations)

• Significant postal operations cost savings due to reduction (or complete elimination) of mail items defects as a result of:– Fully automated computer-assisted mail production

• Mail make up and address quality• Mail packaging• SMS (providing computerized information about mail via Internet)• Postal Revenue Protection

• Operations planning, dynamic capacity management, network rationalization and process optimization will benefit from availability of up to date and timely computerized information from mailers

• Operational constraints can be automatically analyzed and incorporated into product design

69

Page 70: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

Implications for postal financeand governance

Implications for postal financeand governance

• More effective, simplified and accurate cost accounting due to availability of information from customers (mailers and recipients)

• Product costing can be automated - absolute necessity for quick product introductions– Cost causative product parameters captured in EPPML

product description files – Activities and activity-based costing method

• Essential (regulated), non-essential (competitive) and non-essential/regulated products– Requires freedom to define and price non-essential/

regulated letter mail products – Automated rate cases (data preparation)– Negotiated Service Agreements

70

Page 71: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

SummarySummary

• New vision for mail leveraging modern IT : e-Postal commerce or EPPML-enabled mail

• e-Postal commerce offers unprecedented opportunities in postal product innovation

• New tool (EPPML) – standardized and tested

• By effectively integrating customers and carriers e-Postal commerce creates:

– new automated distribution channel for postal products

– mail provably consistent with postal products access requirements reducing operational cost for mailers and posts

– Virtual private channel for privacy, consistency and legal contracts

• Challenges:

– cultural change to radical and open innovation

– rigidity of postal operations and infrastructure

– regulatory framework

71

Page 72: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

OutlineOutline

• Mailers and their needs– Mailing requirements of business applications– What if mailers have complete control over mail communications?

• Postal Product– Integrates business applications with postal processes

• EPPML - The technology that integrates mailer application with postal processes– Definitions– Postal Product innovation with EPPML

• Examples – from business applications to postal products– Mutually Trusted Mail– Vote By Mail – show PPDF– Mail with Provable Content

• Conclusions – What do we want? What do you want?

72

Page 73: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

73

Background and Illustrative materials

Page 74: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

74

Mail Communication System

Postal Infrastructure

Postal Financial Institution

Internet / Public Communication Network

Vendor Infrastructure

Financial Institution

Sender

Recipient

Processing

Transport

Delivery

Submission

Terminals

Postal Network

Page 75: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

What should be considered as a communication selection criteria from a sender viewpoint?

What should be considered as a communication selection criteria from a sender viewpoint?

• Value of communication content/message physicality– to sender– to recipient

• Purpose of communication/message (sender’s view)– inform– solicit action by recipient e.g.

• payment• order of merchandise or service• acknowledgement

– required by law

• Communication content (message) processability by recipient’s computer

• Potential for a dispute between sender and recipient and potential for exception processing (when something goes wrong with communication)– impact of physicality on disputes and exception processing

• Cost of switching to alternative communication means

Page 76: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

76

Observation

( (mail_unit.damaged == true) or (mail_unit.weight(t1) < 0.9 * mail_unit.weight(t0)) or (mail_unit.height(t1) < 0.85 * mail_unit.height(t0)) or (mail_unit.width(t1) < 0.85 * mail_unit. width(t0)) or (mail_unit.length(t1) < 0.85 * mail_unit. length(t0) )and (mailer_requests_redirect == true)

mail_unit.weight(t1)mail_unit.height(t1)mail_unit.width(t1)mail_unit.length(t1)mail_unit.damaged(t1)

mail_unit.weight(t0)mail_unit.height(t0)mail_unit.width(t0)mail_unit.length(t0)mail_unit.damaged==false

mail_unit.location == alternate_address

email

amount

mailer

mailer, recipient

1..RuleRuleRules

RuleID

Observation1..

ObservationExpectation1..

EventTriggerFunction

Action_List

Observation

1..RuleActionActions

ActionID

PhysicalAction1..

ObservationInformationalAction1..

ObservationMonetaryAction1..

Expectation

TimingOfAction

ActionType

TimingOfAction

AttributeName

PartyID

AmountCalculation

TimingOfAction

PartyID

PostalProduct

PhysicalAttributes

InformationalAttributes

AccessRequirements

Damage Reporting and Redirect ProductDamage Reporting and Redirect Product

Page 77: L.A. Pintsov and A. Obrea Pitney Bowes Inc. 30 April 2009

System DiagramSystem Diagram

77

Scanner

Printer/Envelope Printer

Data

Office Station

Computer

Internet/Web

Postal IT Infrastructure

Postal Product Definition File (EPPML)

Postal Product Definition File (EPPML)

Postal Product Definition File EPPML

Induct into Postal Network

Induct into Postal Network

mail traymail tray

mail tray

Postal Bank

mail item make up

SMS

containerisation

payment

CDI