BA401 Case 3-5 Pitney Bowes Inc

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Pitney Bowes Inc. Case III-5

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Transcript of BA401 Case 3-5 Pitney Bowes Inc

Page 1: BA401 Case 3-5 Pitney Bowes Inc

Pitney Bowes Inc.

Case III-5

Page 2: BA401 Case 3-5 Pitney Bowes Inc

Company Background

• $4.1 billion global provider of integrated mail and document management solutions.

• Founded on ,1920 By Arthur Pitney & Walter Bowes.• Headquarters at Stamford, Connecticut, U.S.• Global team of more than 35,000 employees• Presence in more than 130 countries worldwide• More than 2 million customers

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MilestoneYear Achievement

1902

Arthur Pitney patented his first "double-locking" hand-cranked postage-stamping machine, and, with patent attorney Eugene A. Rummler, founded the Pitney Postal Machine Company.

1917 Bowes moved his operations to Stamford.

1950 The company was listed on the New York Stock Exchange.

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Milestone (2)Year Achievement

1957 Pitney Bowes was named to the S&P 500

1962 Pitney Bowes was joined the Fortune 500.

1976The Pitney Bowes Credit Corporation was formed, providing customers with financing and payment solutions.

1980sThe firm expanded, offering copy machines and facsimile machines, a suite of management services and entering new markets, such as Japan.

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Year Achievement

1990s

Pitney Bowes continued to innovate in the field of digital technologies and software, introducing the AddressRight address & barcode printer (1991), the first in-line weighing and metering system (1992), the first secure digital postage meter (1995), the first ink jet postage meter (1996) and the Digital Document Deliver (D3) platform (1998) which provides message management via hard copy, web, email and fax.

2000 -2007

Pitney Bowes invested $2.5 billion in 83 acquisitions, primarily in software and services businesses including MapInfo, Group 1 Software, PSI Group and Imagitas. The company is known as an industry advocate, and has focused in recent years on advancing postal reform, the USPS Intelligent Mail barcode, transpromo and environmental sustainability.

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What They Do?

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Revenue (USD in

millions) 2007 2006 % change

US Mailing 2346 2350 0International Mailing

1070 1013 6

Production Mail

603 575 5

Software 346 203 71

Mailstream Solutions subtotal

4365 4141 5

Management Services

1135 1074 6

Mail Services

459 370 24

Marketing Services

171 145 18

Mailstream Services subtotal

1765 1589 11

Total 6130 5730 7

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Case Study: Australian Defense Organization

• Defense Business Support was responsible for receiving and sorting all external-bound mail from around the ACT and Southern NSW, then dispatching this mail to an external supplier to be processed. This ‘double handling’ approach was inefficient, expensive, cumbersome and time-consuming, and offered little transparency when it came to costs.

• Solution : Pitney Bowes solutions help Australian Defense Organization takes command of its mail by installing a DM1000, one of the DM Series Postage Meters, capable of processing up to 260 letters per minute. The DM1000 also comes with ‘Weigh-On-The-Way’ technology that automatically processes large letters without the need to weigh each one individually.

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Case Study: Owlett-Jaton• Owlett-Jaton is the UK’s largest stockist of fasteners,

fixings, ironmongery and hardware supplying the distributor and merchant trade.

• The weekly processing of over 4000 invoices is key to the efficient running of the business but with an out-dated printer and no inserting system, the task was putting unnecessary pressure on the post room team.

• Solution : Pitney Bowes helps Owlett-Jaton implement end-to-end mailing solution by a FastPac DI500 inserting system cut the time spent sending out invoices from three hours a day down to two morning sessions a week, a time saving of nine hours.

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Case Study: Birmingham University

• The University of Birmingham’s Post Room handles enough mail every day to fill two Royal Mail vans, which it then delivers to the University’s 27,000 students, 6,000 staff and 200 departments. With such large deliveries comes the added issue of around 100 high priority packages, which must be signed and accounted for every day.

• Solution : Pitney Bowes integrated its automated inbound mail processing and tracking system - Arrival® Arrival’s ability to provide data logs and track individual items mean any queries can be quickly resolved and missing items found. Avoiding the need to search various delivery books and leaving staff free to complete daily or additional tasks.

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Financial ServicesChallenge Solution PBBI Products Used

Meet growing regulatory requirements while keeping costs down

Implement solutions that meet multiple regulations while providing operational cost reduction benefiting a variety of departments.

Mail360™

Determine the optimal branch distribution network; Establish achievable branch sales goals

Utilize predictive analytics to optimize the branch network strategy and maximize performance goals

WinSITE™Perform™

Understand who your customers are and reduce excess costs

Get a complete customer profile by analyzing and merging records to understand customer needs and reduce excess/duplication costs

Data Flow™

Reduce operational costs of printing and mailing customer communications while improving the customer experience

Aggregate several messages into a combined customer communication; deliver messages based on customers preference

DOC1®

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Competitors in Postage-meter Market

Company 2007 Revenue

(USD in millions)

% Revenue Growth Since

2006

Pitney Bowes Inc. 6130 7.0%

Neopost 1324 2.4%Francotyp Postalia 212 1.5%

Data-Pac N/A N/A Hasler Inc. N/A N/A

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Competitors in Document Services Market

Company 2007 Revenues (USD in millions)

% Revenue Growth Since

2006

Xerox (XRX) 17228 8.3%IKON Office Solutions (IKN) 4168 (1.4%)

Iron Mountain (IRM) 2730 16.2%

Pitney Bowes Inc. 2714 14.7%

Bowne (BNE) 851 2.0%

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Market Stock Price

ราคาปั�จจ�บัน (16/11/09) $25.02 ต่ อหุ้��นจ ายปั�นผลคร�งสุ�ดท้�ายเมื่��อ 12/08/09 $0.36 ต่ อหุ้��น

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Compare Market Price and S&P 500

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Balance Sheet

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Analyst from Balance Sheet

• Assets < Liabilities และ Equity มื่�ค าเปั นลบั– การท้��บัร"ษัท้มื่� Equity เปั นลบั หุ้มื่ายถึ%งบัร"ษัท้ไมื่ มื่�มื่',ค า

ในสุ วนของเจ�าของเลยแกยงมื่�ค าต่"ดลบั ซึ่%�งสุาเหุ้ต่�น าจะมื่าจากมื่�การซึ่��อหุ้��นค�นกลบัเข�าบัร"ษัท้(Treasury Stock) เพื่��อพื่ย�งราคาหุ้��นท้��ต่กต่-�าลงในปั. 2008-2009

– Assets < Liabilities หุ้มื่ายถึ%ง บัร"ษัท้น��มื่�มื่'ลค าของสุ"นท้รพื่ย/น�อยกว า มื่'ลค าหุ้น��สุ"นท้�งหุ้มื่ดท้��บัร"ษัท้มื่�

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Decision Making (1)

• Would it have made a difference if more of Jim people had moved with the product to the engineering team?

• Did the compromises the company made in product features help or hurt the product’s potential?

• What should AC&T have done to safeguard the most critical value propositions of the product?

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Decision Making (2)

• What did Jim’s team need to understand better about the business in order to help made the right trade-offs?

• Would the sales ramp of Stamp ExpressionTMs be affected by Stamp.com’s earlier entry with a customized stamp product?

• What sort of governance process made sence for AC&T if the doctrine of innovating close to the core was true

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Decision Making (3)

• Should it innovate very close to the existing businesses or explore ideas that would “push the envelope” at Piney Bowes?

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Scenario in Short TermScenario Impact Solution

1. การสุ งข�อมื่'ลเอกสุารหุ้ร�อเร�ยกเก0บัค าชำ-าระสุ วน

ใหุ้ญ่ เปั นเปั นการสุ งข�อมื่'ลอ"เล0กท้รอน

น"ค

การใชำ�บัร"การระบับั Mailing

System ของบัร"ษัท้จะลดลง

ท้-าใหุ้�บัร"ษัท้สุ'ญ่เสุ�ยรายได�ท้��เคยได�รบั

บัร"ษัท้ต่�องท้-าการเปัล��ยนต่วใหุ้�เข�ากนเท้คโนโลย�ท้��เปัล��ยนไปัโดยเปัล��ยนจาก

การจดการจดหุ้มื่ายและ

เอกสุารเปั นระบับัการจดการข�อมื่'ลอ"เล0กท้รอนน"คสุ/(IS) หุ้ร�อใหุ้�ความื่สุ-าคญ่

กบัการพื่ฒนา Software ใหุ้�มื่ากกว าเด"มื่

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Scenario in Short TermScenario Impact Solution

2. สุภาพื่ Balance Sheet ของบัร"ษัท้ยงมื่�สุ"นท้รพื่ย/น�อย

กว าหุ้น��สุ"นอย'

จะท้-าใหุ้�ผ'�ลงท้�นขาดความื่เชำ��อมื่�นท้��จะ

ลงท้�นกบับัร"ษัท้และราคาหุ้��นก0จะต่กลง

กว าเด"มื่

บัร"ษัท้ต่�องสุร�างความื่มื่�นคงใหุ้�บัร"ษัท้โดยเพื่"�มื่สุดสุ วนของสุ"นท้รพื่ย/ต่ อหุ้น��สุ"นข%�น พื่ยายามื่ลดหุ้น��สุ"นจ-านวนมื่ากของ

บัร"ษัท้ลง และยกเล"กนโยบัายการ

ซึ่��อหุ้��นค�น

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Reference• Robert A. Burgelman.“Strategic Management of Technology and

Innovation”. 5/e P878-889.• กรณี�ศึ%กษัา – Pitney Bowes Thailand

http://www.pitneybowes.co.th/thailand-th/index.aspx?page=postal-resource-centre 17/11/2009

• พื่"ท้น��ย/ โบัว ปัระเท้ศึไท้ย – Pitney Bowes Thailand http://www.pitneybowes.co.th/thailand-th/index.aspx?page=our-company 17/11/2009

• Pitney Bowes - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Pitney_Bowes

• Yahoo! Finance http://finance.yahoo.com• http://www.pbinsight.com• http://www.wikinvest.com/stock/Pitney_Bowes_(PBI)?ref=topnav

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Q&A