Caution may pay off for Austria Post
THE ONLINE REPORTER 8th October 2001
CAUTION MAY PAY OFF FOR AUSTRIA POST
The head of Austria Post's new technologies Walter Trezek claims Austria Post hasn't lost out by being slow to run with the Internet or launch e-commerce projects.
Compared to the US Postal Service, Canada Post, Swiss Post or Deutsche Post that have already launched an array of online services, Austria Post has indeed been slow to get out of the gate.
But Trezek argues that by starting its online projects only about a year ago, the management board of Austria Post has let the hype settle down and has learned from the early adopters.
A reasonable cover story, but then again many of the early postal online initiatives such as portals and e-billing have only gotten a lukewarm response.
"The early adopters made a lot of mistakes. We started a year back and can learn a lot from their mistakes," Trezek says. He takes pride in the fact that Austria Post didn't jump at online activities like its neighbors, Swiss Post or Deutsche Post. He called Swiss Post's Yellow-world and Deutsche Post's Evita portals failures.
Austria Post has a smaller market of eight million people, smaller than New York City.
Trezek says the game plan is to base Austria Post's Internet strategies on a settled environment. Its cautious approach is now making way for a series of e-steps. Last year, it commissioned a study called Yellow Link to better understand the e-commerce market and its potential. While the results are confidential, it may have spurred the post into accelerating its e-ventures.
It wants to shore up its core business of shipping packets and letters in the business market. It's currently focusing on setting up an electronically supported logistics and fulfillment chain. The idea is to integrate the post's backend systems and middleware with that of its customers.
The e-logistics integration exercise is still work in progress but the goal is to link the post with customer warehouses so that before a product leaves the depot, the post knows that a shipment is on the way and can route it better to its destination.
The post also has an array of consumer products in the pipeline. There's an electronic postage service on the drawing board that's expected to move into a two-phase pilot next year and debut in mid- 2003.
Trezek expects there will be two versions of the PC postage services initially – one for consumers, the other for bulk mailers. Eventually, the two should merge into a single integrated platform. Trezek says Austria Post is examining both web and client/server versions. It won't develop the technology in-house and will likely license it.
Austria Post has recently started offering digital certificates through its partnership with Datakom Austria, a local certificate authority. But Trezek laments that response has been sluggish so far because of a lack of applications that can take advantage of the thing.
The post is also mulling secure e-mail and electronic document delivery services. It expects to decide by the end of the year.
According to Trezek, the post is seriously debating whether it should extend its universal service provider commitment to the digital world. The introduction of secure e-mail services may depend on the outcome.
The post has been experimenting with Internet kiosks that provide content on tourist spots, maps and transportation.
Also under consideration is a hybrid PC-based mail service that would let businesses and consumers send out letters or direct mail that can be printed in a secure location and distributed through the postal network.
Overall, the post has been rather parsimonious in investing in online projects. Trezek says the total expenditure so far has been $10 million. It could change as the initiatives underway move into higher gear.
