Introduction to IT Modernisation Project - India Post, 2012
Department of Post India

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
Old Postal Services systems were not efficiently addressed India post services to rural and urban areas socio economic balancing. India post provides last mile delivery to important government schemes .Besides department servants were not accountable to the people due to less efficiency and less organised management .This was affected to government services such as Mahatma Gandhi National Rural Employment Guarantee Scheme, UIDAI related services, old age pensions, scholarships to weaker sections. This was directly impact the common citizen of the country. Less quality of services and less management 2)A lack of internet and IT communications in majority of post offices and its banking services are inaccessible to persons with disabilities 3.Labor efficiency was the key problems was faced before this projects, under trained staffs and un balanced work management, less efficient schedules 4.Un improvement of services with market demand 5.Low service quality , Low customer awareness , No business culture , Intense competition from couriers ,no Regulatory monopoly - poor incentives urban areas),Financial deficit limits investments , Price inflexibility , Little automation and modern technologies such as of e-mail and telecom, continued losses, Unprofitable operations 6. Absence of a good delivery model leads to (i) Declining conventional mail revenues due to electronic substitution; (ii) reduced market share from more customer-focused competition; (iii) missed opportunities to become the fulfillment service provider of choice for Internet shopping 7. The lack of a system for monitoring department revenues, so budgetary autonomy impedes the introduction of new services and products and hinders investment in new infrastructure and the ability to make sound business decisions. As all costs incurred are reimbursed by the central government, there is little incentive to reduce costs or increase productivity

B. Strategic Approach

 2. What was the solution?
The India Post 2012 Project aims at transforming the Department of Posts into a “Technology Enabled, Self Reliant Market Leader” by introducing IT enabled postal, retail, banking and insurance services. It is directed towards achieving increased market shares and revenues, new products and services, improved service delivery, motivated workforce and rural development. The Department hired the services of Accenture and National Institute for Smart governance as consultants and to prepare the blue print of the Project and successfully accomplished the preparation of Detailed Project Report. Based on the inputs in the Detailed Project Report, the cabinet committee on economic affairs approved proposal of Department of Posts recommended by the Expenditure Finance Committee( EFC), Consultancy report identified the following areas as offering potential for India Post electronic funds transfer, online banking, smart cards, mutual funds, social security benefits, postal Giro, e-commerce, and microcredit. The provision of these services by the Post Office network will have two effects: 1) Modernizing the post office system, expanding the scope of its business, and enabling it to increase revenues in the face of competition in its core activities; 2) Bringing these services to the people as well as further developing the e-commerce and E-government sectors. Key Objectives are :- 1) Increase existing customer base 2)To provide multiple delivery channels like Internet, Mobile Banking, ATMs, Telephone, cards etc- Access to Financial Services at each – door step 3) To become one Stop Solution for Financial Inclusion & Microfinance initiatives of government, public/private sector banks 4) To become preferred choice of customers by leveraging Core Banking Platform And the initiative steps taken are 1) Increase Market Share and Revenue 2) Offer New Products and Services 3) Deliver Improved and Consistent Customer Care 4) Drive High Employee Satisfaction 5) Empower Rural Post Offices through Technology The IT Modernisation Project is implementing throughout India, including rural and remote areas. It is covering 25,000 Departmental Post Office locations and approximately 1,30,000 Rural Post office locations. Targeted audience are Rural customers Poor, rural development programs, Government of India, rural old age persons, Department employees etc. Modernization of the Post Office (providing speed and reliability) is a necessary precondition to the growth of e-commerce in rural India. The Post Office's functions can help facilitate and provide essential infrastructure for e-commerce. In other countries, postal organizations are providing fullservice logistics operations for e-commerce companies - handling not only the flow of goods, but also taking orders, warehousing, return services, and guaranteeing a secure payment service. This could be making a developed India.

 3. How did the initiative solve the problem and improve people’s lives?
1)Modernization and Computerization of post offices across the country, including branch postal offices in rural areas and creation of an urban-rural network 2) Implementation of integrated software covering all operations of the DoP such as Mail Operations, Postal Banking, Insurance, Finance and HR 3) Establishment of the required IT Infrastructure including Data centre, Wide Area Network(WAN) based networking of the departmental post offices 4) Deployment of Rural Information Communication Technology (Rural ICT) infrastructure in approximately 1, 30,000 Rural Post Offices across the country. 1) Core Banking- Enable anytime anywhere banking, supported by 1000 ATMs, mobile and web based access for all the users 2) Mail Operation- Increase visibility into mail operations (at the article level and overall volume, Enable mail applications such as track & trace and point of sale 3) Postal Life Insurance- Enable fully integrated life insurance platform Enable efficient and cost effective service to existing and new customers 4) Rural Information and communicating Technology hardware(ICT)- Rural ICT Hardware devices and applications for approximately 1.30 lakh Village Post Offices and, Enabling Branch post offices to perform all transactions electronically 5) Customer Interaction Channels- Manage India post Website, Customer service call center, E-Commerce solution for Department of Posts 6) IT System for Post office employees- Enable applications for all accounting modules and personnel management and Improve employee Productivity through better manpower planning

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
This project is implementing under 8 Request For Proposals (RFPs) - Rural ICT-Hardware, Rural ICT System Integrator, Data Center Facility, Core Centre Facilitator, Financial Services Systems Integrator, Network Integrator, Mail Operations Hardware and Change Management. 1) Rural ICT – Hardware- Provide Hardware devices and applications for network connectivity to approximately 1300000 Post Offices, enabling post offices to perform all transactions electronically 2) Rural ICT – System Integrator- Develop the platform for all applications that will reside in the Rural Hand held devices 3) Data Centre Facility - Provide centralized Data Centre Facility for hosting all applications and Disaster Recovery Center 4) Core System Integrator a) Integrate, all applications that will run in the post and mail offices b) Enable mail applications such as track & trace and point of sale c) Develop applications for all accounting modules and personnel management c) Create and manage India post website, a customer service call center and introduce d) E Commerce solution for DoP 5) Financial Services System Integrator a).Deploy Postal Banking & Insurance solutions b). Enable the department to perform anytime anywhere Banking, supported by 1000 ATMs, mobile and web based access for all the users 6) Network Integrator- Enable networking of Postal departmental offices across India and design DoP networks including network security 7) Mail Operations Hardware Procurement of hardware for Postal and Mail Processing offices such as desktop computers, printers, scanning devices/hardware and around 15,000 departmental postmen device hardware 7) Change Management - Manage change and prepare the staff for this massive IT Modernisation project of Department of Posts by conducting surveys and understanding concerns of postal employees

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
India Post’s primary stakeholders are its customers, employees and the Government of India The Department hired the services of Accenture and National Institute for Smart governance as consultants and to prepare the blue print of the Project and successfully accomplished the preparation of Detailed Project Report. Based on the inputs in the Detailed Project Report, the cabinet committee on economic affairs approved proposal of Department of Posts recommended by the Expenditure Finance Committee( EFC) 1)Project implementing in Department of Post monitored by directorate of Post 2) Data management command centre is the command centre 3) Consultants are National Institute for Smart Governance and M/s Accenture 4) Technology facilitator A) M/s Tata Consultancy Services- Core System integrator B) M/s Infosys Ltd-Core Banking and Financial implementation partner C) M/s Sify networks limited- Networks Implementations partner D) Reliance technology –Data Centre operations
 6. How was the strategy implemented and what resources were mobilized?
The Department hired the services of Accenture and National Institute for Smart governance as consultants and to prepare the blue print of the Project and successfully accomplished the preparation of Detailed Project Report. Based on the inputs in the Detailed Project Report, the cabinet committee on economic affairs approved proposal of Department of Posts recommended by the Expenditure Finance Committee( EFC) Total project cost involved around 18.77 billion INR around .3 billion dollar project. Funded by Government of India

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
1) The realization of this IT modernisation is bringing the potential to exacerbate social exclusion, to widen the inequalities between social groups, and to increase the income and decreasing the gaps between rich and poor .India has brought about several efforts to take the Internet to rural areas by building information kiosks/tele-centers. These can be used to deliver IT services to rural citizens. Post offices are ideally suited to provide these tele-centers. They have the reach, the physical space, and the public contact, which are all necessary for success. Rural post offices in India is equipping to work as Internet kiosks delivering information and services to rural communities This initiative is increasing adoption of the department’s services, and enhance the reach of postal services to the country's rural population, streamlining the distribution of social benefits 2) Bringing transparency, agility, flexibility and scalability of India post business operations. The programs will empower employees to deliver services more efficiently to rural communities using the latest technology. They also position India Post as a key agent in the Government of India’s inclusive growth policies. 3) This program is connecting and managing more than 130,000 handheld devices used by rural postal workers for distribution of social benefits under the National Rural Employment Guarantee Act and process Electronic Money Orders. 4) Developing India’s first choice in savings bank deposits schemes in mainly in rural areas with innovative customer-centric services ,Provide access to diverse financial services products thereby becoming the engine of economic and social growth 5) Information technology is increasingly used in many parts of the postal production process, administrative and material management and Mail transportation services and giving new value added services

 8. What were the most successful outputs and why was the initiative effective?
The responsibility of effective governance of the project has been entrusted to various committees. The Project Coordination Committee (PCC) will review the project related issues/risks and take major decisions regarding the project. The five Project Implementation Committees (PIC) will focus on respective areas and each one of them will have a sub committee. The PICs will review, approve and sign off project deliverables at each phase of the project. The Architecture Review Committee (ARC) will maintain solution architecture andintegrate different solutions. The Budget Review, Contract and Legal Committee will be responsible for financial and legal matters. There will be Circle Monitoring Committees, headed by CPMG to monitorthe progress of the project in each circle while the Regional Implementation Committees will be accountable for the timely completion of projects in respective regions and sharing information about the project with the field teams

 9. What were the main obstacles encountered and how were they overcome?
In developing its e-business activities, the Post Office will confront the challenges of positioning itself in a new technological and economic environment. A key question is what will be the organizational structure within which these e-business services will be structured? Will post offices be only the physical location where these services are offered? Or will the services be integrated into the operations of the post offices? Another key issue is that many government departments will not be open to the Post Office assuming their functions. The Post Office may, therefore, initially be limited to instances where other government departments do not have the capabilities or presence to deliver specific services. An e government activities require that the Post Office develop partnerships with the private sector. A corporate entity may be better situated to forge these partnerships than a government department. But India Post is succeeded by this activities by a marketing orientation in management and extensive management training. By this electronic delivery model is so imperative for posts and it addressing : (i) declining conventional mail revenues due to electronic substitution; (ii) reduced market share from more customer-focused competition; (iii) missed opportunities to become the fulfillment service provider of choice for Internet shopping. For growth beyond its current business. Technology will continue to remain a key driver of its postal business practices across the country. Appropriate institutional structures and partnerships with technology companies will therefore strengthen its capacity to compete in these markets.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
E-Government. -This refers to govermnent services offered through electronic channels. The benefits of using information and communications technology to provide numerous government services can be substantial, particularly for a large country such as India. E-government should help to cut red tape, improve efficiency, reduce costs, and reduce rent seeking opportunities. This will be particularly beneficial to rural and poorer people in India. Such as 1) Financial services (rural banking and rural post office life insurance)-Financial services are generally offered in partnership with licensed commercial banks and insurance companies. Under this model, the services offered by the post office are usually limited to basic deposit/withdrawal, checks and account activity services ("high street banking services") on behalf of their partner banks and to the payment of insurance premiums on behalf of their partner insurance companies. These transactions can generally be done at a post office counter or by Internet on a secure site. This partnership model has been developed in particular by the United Kingdom and Australian post offices 2) Bill payment services;-Bill payment services generally allow customers to pay utility bills at a post office counter or via the Internet on a secure site offered by the Post Office. Some post offices have expanded this service beyond utility bills, to include a wide range of other bills, including private-sector bills, government bills, and taxes. The U.S. Postal Service has expanded this service even further to allow payment of any type of bill via the Internet, by entering just the account numbers to be credited and debited. The Canadian and Australian post offices offer similar applications but for bills issued by a large number of registered users only. 3) Pension and other benefits services;-The post office provides information on pensions and other social security benefits. Social security refunds, pension, and other benefit payments can be cashed in at the post office. 4) Information repository and market/data analysis services-have mainly been built around mail redirection requests, which allow post offices to maintain an updated database of their customers' addresses. That allows them to offer business clients updating services of their own customer databases. Some post offices have expanded those services in the area of personalized mail to groups of clients and to market and data analysis services 5) Integrated logistics services have been the main area of diversification for many post offices .These services capitalize mainly on the development of the e-commerce and e-business industry , which created a large demand for parcel delivery services and handling of returns. 6) Internet and e-business assistance services were first developed by post offices as an extension of their logistics services since these were increasingly used by e-business clients. Most post offices offer a secure e-commerce message exchange service to allow businesses to conduct their business over the Internet on a secure site. Some post offices also offer authentication or certification services of Internet service transactions

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
For more than 150 years, the Department of Posts (DoP) has been the backbone of the country's communication and has played a crucial role in the country's socio-economic development. It touches the lives of Indian citizens in many ways: delivering mails, accepting deposits under Small Savings Schemes, providing life insurance cover under Postal Life Insurance and Rural Postal Life Insurance and providing retail services like bill collection, sale of forms, etc. The DoP also acts as an agent for Government of India in discharging other services for citizens such as Mahatma Gandhi National Rural Employment Guarantee Scheme wage disbursement and old age pension payments. With 1, 55,015 Post Offices, the DoP has the most widely distributed postal network in the world The Indian postal system offers huge opportunities for new profitable services that can go far beyond conventional postal and postal banking products. If the existing infrastructure and capacities can be leveraged for additional and innovative purposes, it will be possible. • To strengthen India Post's market position in an increasingly competitive Environment. • To reach financial viability and reduce the existing fiscal burden; • To offer attractive opportunities for private sector companies to partner with the post; • To bring new and better services to residents and business that can support economic and social development There is a sustained drive, by some elements of India Post's management, to transform it into a high performance, market-oriented, and profitable enterprise - and the Post is a prime candidate for a comprehensive turn-around program. New Partnerships and Alliances- India Post is willing to share its unique network with other companies and institutions. There are many private companies in different service industries that would be eager to take advantage of the postal retail and delivery platform. India Post offers an outstanding distribution channel for a variety of financial and non-financial products and information. India Post is also developing business alliances with various postal organizations abroad to guarantee better cross-border services to its customers. A partnership with French La Poste has been announced that will focus on international express mail but also cover financial retail services, IT development, and consultancy services.

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
Indian Post e-government initiative, still at the introductory stage, is the provision of computer and Internet facilities in the post offices to enable people in rural areas to access computer and Internet services and to attain computer literacy. As a satisfied customer of Indian post i can recommend these new initiatives .From this E government initiative a common man can get of government-linked services, such as pensions, social security, passports, licenses, and taxes from a mouse click. 1) E-banking,Cash management via Core Banking : Easy cash management and transaction through Core banking . services includes cash deposit, check encashment, transaction, withdrawals, e postal money orders, foreign exchange, and international money transfers. 2) Online postal life insurance services 3) I can pay all some important bill via post office online services Integrated logistics services-this services helps rural areas for getting parcels and logistics delivery, tracking services is available. the home delivery market and is expanding its logistics services to take advantage of the ecommerce 4) The Post Office network can take advantage of its vast logistical network to store, move and deliver goods and information. It can provide logistic support services, which would enable companies to outsource their logistic functions, including order and warehouse management, order processing and dispatch preparation, distribution, and financial management. It can offer merchants in e-commerce and direct marketing a comprehensive service to satisfy all inventor y and supply-chain management needs, including collection of goods from suppliers, warehousing, inventory management, receipt of orders, picking and packing, and delivery. The Post Office network has an obvious comparative advantage in the delivery of goods and commodities Some of the key features of e-fulfilment are • Increase revenues through electronic order management; • Minimize inventory using advanced warehouse management; • Optimize vehicle and network resources with transport management systems; • Increase customer services through sophisticated delivery-response time and shipping management tools

Contact Information

Institution Name:   Department of Post India
Institution Type:   Government Agency  
Contact Person:   Ms. Kavery Banerjee
Title:   Secretary (Posts)  
Telephone/ Fax:   01123096060
Institution's / Project's Website:  
Address:   Minister of Communications and Information Technology 2nd Floor, Dak Bhavan, Parliament Street, New Delhi. IN-11000
Postal Code:   110001
City:   New Delhi
State/Province:   New Delhi

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