Digital Transformation of Postal Operators – Challenges and Perspectives

Abstract

The postal operators are facing unavoidable digital business transformation in the era of the digital economy, Industry 4.0 and innovations. The rise of digital technology over the last 30 years has created both threats and opportunities for the postal industry. Digital transformation of companies and correspondence is having an impact on the core business activity of postal operators. Nowadays, electronic communications impact all of postal operators businesses. The volumes of physical letters have been decreasing substantially, particularly in the last couple of years. Obviously, this leads to loss of revenue. At the same time digital innovations, e-commerce, data collection, and digital identity have been at the heart of postal operators’ efforts to propose new services, spawn efficiencies, and adapt their organizational culture and strategy to the needs of the digital economy. These tendencies require a different postal infrastructure as well as different skills and patterns of employment for postal operators. Hence, the digital transformation has become a strategic priority for postal operators. Although postal services play a vital role in connecting people, businesses and government across the world, the postal industry is grappling with its greatest challenge yet: digital disruption. This article dealt with the opportunity and challenges faced by postal operators in age of digital transformation. It focusses on main drivers of digital transformation and the dimensions of digital transformation in postal services sector. Based on own study a penetration rate for postal e-services in Bulgaria is presented. The results show that extent to which postal operators in Bulgaria are offered e-services is far from fully exploited across the entire network. Based on the results digital strategy priorities of postal operators are proposed.