• on Sep 8th, 2014 in Ideas Worth Exploring | 43 comments

    You can’t cut your way to prosperity. That seems to be the message coming out of many of the comments we received on our recent blog about the next phase of network consolidation. So, if cutting alone isn’t the answer, what are your ideas for revenue growth?

    Five years ago, we ran a blog post asking stakeholders for their best brainstorming ideas to help the U.S. Postal Service improve its net income. Interestingly, the suggestions seemed split about evenly between cutting costs and generating revenue. So, this time, we want to ask just about revenue-generation ideas. Of course, we welcome any thoughts you have on ensuring a viable Postal Service. That’s what this forum for stakeholder feedback is all about. So this week we ask you to consider the following:

    • What is the number one idea you have to raise Postal Service revenue?

    Share your ideas in the comment section. If you respond to someone else’s idea, please remember to keep it civil. Let’s get a dialogue started. 

  • on Feb 4th, 2013 in Strategy & Public Policy | 2 comments

    The number of Postal Service patents has grown significantly in the past few decades, as have the patents for rival carriers FedEx and UPS. When compared to other industries, such as information technology and wireless communications, the Postal Service has not significantly leveraged its intellectual property or fully recognized the potential financial and strategic value of these assets. If the Postal Service considered the commercial significance of each of its patents and licensed its intellectual property, it might find a valuable source of significant revenue. A 2011 Office of Inspector General report found that the Postal Service has 329 global families of patents, which means each “family” of a patent may have a multiple number of U.S. and international patent documents. The study looked closely at three specific patents to assess the commercial significance of each patent, or the revenue that the Postal Service may be able to generate through licensing of the patent. Those three patents alone hold a commercial value of more than $18 million per year. The report concluded that the Postal Service did not manage its portfolio of patents to maximize commercial significance. However, some stakeholders have argued that the Postal Service is different from private industry, even if it is encouraged to act like a business. It is a public institution held in the public trust. In that sense, it belongs to the American people. Shouldn’t a public institution that belongs to the American people open up the technology and patents it has developed for the benefit of the national infrastructure? There is a risk that in licensing patents or holding proprietary technology, the Postal Service may stymie innovation in the public and private sectors. Some people have looked to the Defense Advanced Research Projects Agency (DARPA) as a model. Its idea to link computers into a national system eventually led to the development of the Internet. The key for the Postal Service is to build a strategy and let it guide decisions on how best to leverage intellectual property. The first step might be to have an active program that looks to generate as many intellectual property instruments as possible. Once the Postal Service owns and protects that property, it can determine whether the best approach is to license it, sue for infringement, or share it. Tell us what you think. Take our poll question and then go to the comment section to share what you think would be the best strategy for the Postal Service on intellectual property and patents.

  • on Sep 3rd, 2012 in Products & Services | 9 comments
    As the U.S. Postal Service remakes itself into a leaner organization in the face of a communications revolution, it still remains a powerful medium and an important part of the nation’s infrastructure. A smaller Postal Service will still be huge, with more than $60 billion in projected revenue. It will not disappear tomorrow. A lingering concern remains, however, that the Postal Service is becoming less relevant to younger Americans. A recent public opinion poll by The New York Times and CBS supports this conclusion. According to the poll, only 30 percent of people under 45 say they use the mail “all the time.” While daily reliance on the Postal Service is still high for older generations, these poll results raise questions about the organization’s long-term future if physical mail does not play a role in the lives of younger Americans. A Pew Research study shows these younger generations turn to the Internet and smart devices for their news, entertainment, and to connect with friends and family. The Postal Service and traditional hard-copy communication vehicles will find it hard to win customers that have grown up as digital natives. Still, other polls suggest that hard copy and direct mail remain an important part of the media mix, even for those under the age 35. A 2011 survey by Pitney Bowes indicated that marketers under the age of 35 are more likely to use direct mail in their marketing mix than their older counterparts. Package delivery also remains an opportunity for the Postal Service as younger Americans are more likely than older generations to shop online. What do you think is the best way for the Postal Service to serve a younger demographic? Should it attempt to promote its traditional products to younger Americans and tout the benefits of hard copy as a complement or supplement to digital? Should the Postal Service instead focus on expanding its digital offerings? Is there another strategy?

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