Australia Post and navigating the last mile

Over the years, Australia Post has featured in this blog. And here. And over here too.

You would think I had no more to say on the topic. (Believe me, I’d prefer to have something else to write about – but it’s the summer, it was a long weekend, the weather is frying my brain, etc.)

But Auspost just loves to keep delivering poor service (see what I did there?).

From direct personal experience, four times in about as many weeks Auspost have failed to meet their own service levels for parcel delivery. In short, on each occasion their drivers claimed to have attempted delivery, but did not leave any notification. As a result, the parcels were delayed, and it was only when I received the “Final Reminders” from my local post office that I had any idea these items were awaiting collection.

Each time, I have lodged a formal complaint. In fact, I was encouraged to do so by the counter staff, who indicated that my experiences were not unique, and that they were as exasperated as I was. They also suggested that the front line staff are not being listened to by management.

With each complaint, I have been advised that “the relevant people will be spoken to”, and I have been assured “it will never happen again”. But it keeps happening, and nobody at Auspost can adequately explain why.

OK, so once could be a genuine error. Twice sounds like poor performance. Three times, and it starts to seem like a regular occurrence. But four times, and it points to a systemic problem, a failure which Auspost seems unable or unwilling to address.

So pervasive is Auspost’s reluctance to engage in genuine, honest and open dialogue with their customers (remember the National Conversation?), that at one point, a supervisor I spoke with refused to confirm the address of my local parcel delivery office. During another call, when I asked for some basic information as to whether other people in my area had made similar complaints, I was advised to submit a Freedom of Information request to obtain that sort of data.

After the second occasion, and sensing that Auspost was not getting the message, I also submitted a complaint to the Ombudsman. However, the latter said that “twice was insufficient” for their office to take any action. Ironically, the exact same time as I took the call from the Ombudsman, the postie was delivering yet another “Final Reminder” card, in respect to a third parcel for which there had been no evidence of a previous “Attempted Delivery”. I’m still waiting for the Ombudsman to get back to me….

More importantly, I’m still waiting for Auspost to notify me of what specific steps they have taken to resolve this pattern of poor service.

Meanwhile, Auspost keeps boasting about all the parcels they are delivering, thanks to the boom in online shopping. It’s just a pity that (from my experience), they are doing a really poor job of it.

Next week: What should we expect from our banks?

 

 

The NAB SME Hackathon

The recent week-long Intersekt fintech festival kicked off with a 48-hour hackathon, sponsored by NAB, hosted by Stone & Chalk and York Butter Factory, and designed to meet the needs of NAB’s SME customers.

Using NAB’s own transaction data APIs, participants were asked to come up with a solution to one of the following challenges:

1. How to make the lives of SME owners easier
2. How to help SMEs generate more business

12 teams competed over the weekend, and each presented their ideas to a panel of industry experts. Clearly, these were not the usual startup pitches (and none have a public website), but it was interesting to see the results. Projects are listed here in the order they presented:

NABTax – “tax audit insurance”
Designed to encourage better/best practice tax governance among SMEs, it uses a combination of a tax risk rating linked to a reduced cost of premiums for tax audit insurance.
The solution would help SMEs to be better prepared for an ATO request for information, aid understanding of the ATO’s current small business benchmarks, and provide insights on the ATO’s data matching protocols.
Essentially it would generate a risk rating based on quantitative and qualitative analysis of supporting documents supplied by the SME.

EasyPay – “reconciling invoices and receipts”
Deploying an e-invoicing model, the platform would generate a unique reference number, linked to an ABN, and generate a QR code to be scanned by the payer.
At its heart, it would better match invoices and payments. The service would be sold under a freemium model, and would be compliant with the New Payment Platform (NPP).
The main challenge would be in reaching and gaining traction with consumers (the bill payers).

ORDR – “managing cash-flow, inventory ordering and sales”
Drawing on a dashboard showing SKUs of items in stock, it would use machine learning
to predict stock ordering requirements. Although this concept was based on actual SME experience, the panel felt that there would be integration issues with existing POS and supply chain systems. Also, how would it link to CRM data, and how would it be able to both accommodate new season stock, and accurately forecast demand?
Finally, what level of SKU data is actually available from NAB transaction data?

Just-In-Time MBA – “a financial/business coaching app for SME owners”
According to data presented by the team, 60% of SMEs fail within their first three years. And given there are something like two million micro-businesses in Australia, and 250,000 new ones established each year, if nothing else, there is a huge opportunity to reduce this failure rate.
Using the available APIs (plus data from the SMEs’ accounting systems), the platform would analyze payments data and issue alerts designed to prompt remedial action.
Based on the presentation, it seemed that the proposed analysis is only capturing cash-flow – clearly, the real value and insights would come from holistic health checks.

NAB SME Connect – “connecting small business to customers”
Using a number of data inputs, this service would push deals in real-time to your smart phone. The customer app shows only relevant offers – based on preferences, proximity, etc. The client SMEs can see the level of interest and demand, to generate “Smart Deals” based on transaction data. The panel wondered about the opt-in model, and also felt there were already similar competitor products, or that any competitive advantage would be difficult to defend.

Wait< – “wait less for elective surgery”
Aimed at time-poor SME owners, the team wanted us to think of this as an “eBay plus Afterpay for elective surgery”. Taking the approach of a two-sided marketplace, it would
support transactional loans to cover the cost of surgery, and match customers (patients) to suppliers (health care providers). Drawing on NAB’s current healthcare payment services, the solution would combine NAB’s transaction banking and health APIs, plus Medicare APIs (for patient and practitioner verification), to generate a pre-populated lending form. No doubt designed to appeal to NAB Health, this was a very niche project.

Tap & Go – “turning customer loyalty into rewards more easily and more cheaply”
This idea would enable SMEs to use transaction data to decide who gets a discount, and how much. Built on a merchant administration platform, it would capture transaction data from POS systems. It would be offered as a subscription service for merchants. The panel wondered how this solution compared to the competition, such as Rewardle.

TAP – “smarter marketing solutions”
Commenting that only 16% of SMEs are maximizing their online presence, this service is designed to increase merchants’ digital presence. It would use NAB APIs to manage and track campaigns – by comparing the data to past sales periods and previous campaigns. Campaigns would also be linked to social media accounts. The panel questioned how the solution would fare against competitors such as Hootsuite.

StopOne – “integrated hub for making data driven decisions and connect with a NAB banker”
Conceptually, this was a very ambitious project, designed to let SMEs use dashboards and forecasting from NAB transaction data (and other sources), to drill down into visualized data records. It would also integrate with social media insights, incorporate a messaging platform to allow SMEs to communicate with their bankers, and enable SMEs to share their dashboard with a business banker. The panel queried the cost of the data analytics for the SME, which presumably comes on top of their existing accounting software.
They also suggested the team take a look at what 9 Spokes is already doing in this space.

Spike – “accounts payable solution”
Currently, paying invoices can involve a 10 step process. The average SME has 90 suppliers. Accessed via a NAB accounts payable login, the solution incorporates the Google vision API to capture an image of the invoice and extract key data points. The SME then chooses the date and account for payment, the invoice is stored in the cloud, from where is posted to the Xero ledger, and the NAB payments portal. In addition, the client can share purchase order data with their supplier to pre-populate the invoice. It could
also optimize expenses, by recommending offers or product switches. When asked about the commercial model, the team suggested it could be offered free by NAB, who get access to extra data.

nablets – “focus on things that matter”
According to this team, 90% of SMEs are not taking full advantage of digital tools. Using NAB APIs and event-based triggers, clients would use their NAB Business Connect account login to create “if this then that” rules and tasks. It would also leverage open banking data APIs. The panel asked about the logic and the parameters to be embedded in the rules-based activities, as well as the proposed categories and range of functions to be automated. They also wondered how it would actually help SMEs to adopt digital tools – some of which are already integrated into the current banking portal.

NAB Hub – “Small Business Hub”
Designed to present banking data the way customer wants to see it (P&L, balance sheet, net asset position etc.), it would also help in generating leads for pre-approved loan products, and help with investments via optimized rates, and for insurance cover it would
assist with policy reviews, claims and risk analysis. The panel asked if this was intended to be a NAB add-on or a standalone product. They also suggested the team look at what Tyro is doing around lending analysis – but recognized that there was possibly a place for this type of tailored advice.

Based on the judging, the winners and runners-up were:

1. Just-in-time MBA
2. Spike
3. NABTax

Meanwhile, the crowd favourite was Just-in-time MBA, and the best innovative idea was TAP.

If I had to summarise the presentations, it would be as follows:

1. Most of the presentations were still talking about yesterday’s/today’s banking products, rather than products of the future
2. There was very little evidence of projects designed to help SMEs grow their business
3. Any effort to gain traction for these projects will revolve around changing customer (and bank) behaviours….

Next week: VCs battle it out in the reverse pitch night

 

 

Tech, Travel and Tourism (revisited)

Just over two years ago, I posted a blog on how the tourism and travel industries needed to embrace the opportunities brought about by digital disruption. Having been on half a dozen overseas trips in the past 12 months, I can see that there have been some improvements in the traveler experience, but there is still a lot of room for improvement…

One of the biggest benefits has been the expanded integration of public transportation information into Google Maps. Navigation and route planning, right down to which platform to board from or which subway exit to take, has been a huge boost to the traveler UX. Many cities are now using integrated stored value cards for public transport, but limitations still exist: for example, some systems don’t make it that easy for overseas visitors to obtain the card itself, others make it hard to re-load other than by cash; while only a few systems, like Hong Kong and Japan, support multiple point-of-sale transactions for shops, restaurants and other services.

Another plus for frequent travelers has been the increased adoption of chip-enabled, e-passports which streamline the immigration entry/exit process (but only for participating countries, of course). Laborious paperwork still exists in many cases with arrival/departure cards and customs declaration forms – but over time, these processes should become more streamlined with the adoption of digital IDs and biometrics.

Using local mobile phone networks may have gotten easier with compatible operating systems, but even with pre-paid travel SIM cards and data packages, access costs are still disproportionately expensive for overseas visitors. Sure, there are more and more public WiFi services and hotspots available, but most still require users to provide personal data and/or reveal security weaknesses. Even though I recently purchased a mobile pass to access “free” WiFi services abroad, it’s hard to see what value it offers, because it only works after I have already logged onto the WiFi network.

Getting flight information, notifications and alerts via SMS and e-mail has improved considerably, along with easier online booking tools and mobile check-in solutions – and of course, QR codes now support paperless boarding cards. But I’ve noticed that some airline apps don’t support full integration with mobile phone wallets, and consolidating ticketing and invoicing information (e.g., for consolidated expense reporting) from multiple airlines and booking platforms still feels a long way off.

Finally, a constant irritation for travelers are the card transaction fees that most hotels still pass on at checkout – as if many guests are likely to pay in cash! – compounded by the FX fees that the credit card companies also like to charge. All up, this can mean an average of between 3% and 5% in additional fees, in a situation where hotel guests are something of a captive audience. Transaction fees remain a target for further disruption….

Next week: Token ring – a digital ID solution

 

 

 

#Blockchain heralds a new railway age?

Last week, I suggested that digital currencies might be the new portals. Reflecting further on my work with Brave New Coin*, it also occurs to me that the growth of Blockchain resembles the railway mania of 19th century Britain. Hopefully it won’t end in the same over-investment and asset bubble – but there are some interesting similarities.

“Railway Mania” – Image sourced from Business Pundit

First, the railways displaced the canal system, just as canals overtook roads as the key means of transportation. For these purposes, if we compare roads to the Internet, and canals to the World Wide Web, then Blockchain is the next generation of the “information superhighway”. Blockchain and distributed ledger technology, along with crypto-currencies, digital assets and smart contracts are powering the “new” internet – the Internet of Things, the Internet of Money, the Internet of Value Exchange.

Second, and in a similar vein, the Internet was designed primarily as a means of communication. Then, the web enabled e-commerce, content distribution and on-line interaction. Now, Blockchain technology is supporting a range of new activities – such as tokenizing tangible and intangible assets; securing personal data and financial accounts; decentralizing networks, exchanges and registries; and validating immutable transaction data.

Third, the proliferation of public, private and permissioned Blockchains is prompting the development of technical standards for the design, architecture, security and taxonomy associated with this technology – as railway systems have implemented common safety and operating standards. There is also the need for interoperability between Blockchains, just as railway networks have had to address different track gauges among competing operators.

Of course, on the downside, railway mania led to heightened speculation, failed or over-optimistic prospectuses, and duplication of competing networks as developers sought to secure the most lucrative routes.

And let’s not overlook the issue of forking, which Blockchains are having to address in order to meet the demand for increased processing capacity and/or to iron out potential design weaknesses. In some ways this resembles the creation of railway branch lines – in some cases, these subsidiary routes would become more important than their parent main lines; and may even have outlived them, following the Beeching restructures in the 1960s.

Finally, for all the benefits that Blockchain undoubtedly holds, challenges remain with “on-ramp / off-ramp” access – a bit like disconnected transport interchanges or uncoordinated train timetables.

*Note: the opinions expressed here are my own, and do not represent the views of Brave New Coin or their clients.

Next week: Long live experts….