About digital transformation of “Qazpost”

• A bit of background
• What were the priority tasks?
• Development strategy for the IT department of "Qazpost"
• What difficulties did we have to face?
• Main results of "Qazpost`s" digitalization
• Results

A bit of background

The need for changes arose after customer requests. People were interested in modern digital services, such as internet banking or tracking the movement of postal items. "Kazpost" was already using digital systems in 2023, but they were chaotic and poorly connected to each other. Consequently, the level of task processing was low.

Several goals were set when creating Qazpost Digital. The main ones were: transformation of logistics, financial sector, social and government services, and creation of a solid infrastructure. Each block had its own tasks.

Customer needs, both legal entities and individuals, were taken into account when developing the goals. For example, special attention was paid to the development of the e-commerce segment. Customers were given the opportunity to order goods from other countries, such as Germany or the USA. "Qazpost" took over customs operations and organization of delivery to any point in the country.

It was important to pay attention to the development of financial stability. Separating services into different areas of activity created the foundation for long-term growth. Even if individual industries go into the red, the rest will bring profit.

The request from the government was taken into account when developing the goals. The government of Kazakhstan set the task of creating a major transit hub in the country. Therefore, "Kazpost" sought to open new logistics centers and help carry out transportation along key routes.

In addition to developing the postal direction, the organization is interested in forming a company providing financial services, including through the launch of a Corporate Bank. Creating a payment service for clients should simplify the provision of financial services.

What were the priority tasks?

To put it briefly, "Qazpost" chose as its strategy the creation of strong partnerships with all clients. It was important to provide postal, financial and logistics services for people and businesses. For convenience, task groups were created.

So, the first block is logistics. It is necessary to create a modern logistics network of centers with fast order processing. Taking into account the growth of the e-com segment, "Qazpost" decided to conduct IT integration with large platforms. Another task is to increase the number of cargo transportation, including international ones.

When developing the strategy, the emphasis was placed on the development of the 3PL segment, i.e. providing a full range of services: from packaging to storage of goods with subsequent delivery to the end consumer. In addition, the organization planned to open its own pickup points. To save money, they will work on the basis of post offices.

The second block is financial. It focuses mainly on providing services for businesses:

• settlement and cash services;
• internet acquiring;
• salary projects;
• treasury support;
• external payment services and others.

The third block is the provision of state and social services to the population. For this, rural branches are being transformed into multifunctional centers. Local companies will get the opportunity to use the area of post offices to display their goods.

Another block is the expansion of the branch network. New branches will be opened for this. If an old branch does not meet modern requirements, it is closed and a modern office is created.

Development strategy for the IT department of "Qazpost"

The main direction of activity is the transformation of the IT landscape. It consisted of adapting the existing infrastructure to new tasks. This includes focusing on the development of mobile services.

Speed and quality of data transmission are important for the operation of IT services. This is especially critical during peak loads. One of the tasks for the department is to create a reliable and fault-tolerant network.

Scalability is important for the development of "Kazpost's" IT sphere.

Constant development and growth of requirements for the operation of digital services forces to promptly improve the technological capabilities of the company. The infrastructure is developed with a margin of capacity - this allows for quick changes.

What difficulties did we have to face?

The main problem was the lack of a clear architecture. More than 50 information systems were fragmented. Some of them turned out to be non-working, including anti-fraud ones.

Another problem was the lack of a team. There were developers, but there was no structure within the department. Because of this, it was difficult to coordinate actions.

The infrastructure also turned out to be not so simple. During a detailed study, an excess of resources was revealed. The provision of branches had long been outdated. Working communication channels were very expensive.

Information could be duplicated in the database, and there was no corporate data warehouse at all. Data methodology and architecture were also not used. Because of this, the loss of information was critical for the department's work.

This is only part of the possible problems. In fact, there were even more of them. A clear understanding of what already exists and what needs to be fixed allowed for a reasonable allocation of team resources. Including by 2024, it was possible to implement a large pool of tasks.

Main results of "Qazpost`s" digitalization

Today, the organization's IT system includes more than 80 systems and 75 services. The volume of stored data exceeds 70 TB. To maintain stable operation of the infrastructure, virtual and physical servers with a total number of more than 1000 units were used. In addition, communication channels, postamats and tastamats, payment terminals were added.

Thanks to the involvement of specialists from different fields, it was possible to completely restructure the work of the IT department and accelerate the launch of new projects to the market. Technical service has also improved. Thanks to it, customers can quickly solve their problems.

Conducting an audit helped to understand what can and should be improved. Optimization of resources, especially human ones, got rid of meaningless overtime and burning deadlines. Project activities allow to clearly set goals and determine growth potential.

Results

To summarize briefly, the most important achievement is bringing the organization out of a prolonged crisis. Thanks to digitalization and the creation of a clear system structure, "Qazpost" made a profit of 2.4 billion tenge for the first time in five years. Shareholders received a dividend payment of 1.5 billion tenge. The total volume of tax calculations exceeded 32 billion tenge.

To simplify, it was possible to identify unnecessary systems for the organization's work and remove them. A check of deactivated services was carried out, and after studying each one, systems for restoration were identified. Such optimization helped to reduce costs and increase profits.

Comprehensive work in several directions allowed to quickly adapt to existing conditions and begin transformations. Residents of Kazakhstan have already been able to evaluate the organization as a postal and financial operator. People can quickly receive and send parcels, transfer money, pay for services of different companies.

In addition to developing IT infrastructure, work was carried out on fraud prevention, expanding the list of partners, improving financial services. This has already saved more than 600 million tenge.

For residents of remote settlements, "Qazpost" created its own marketplace with prompt delivery of orders. The platform also serves as a place to support producers, particularly farmers.

For the convenience of customers, a single application was created. In it, you can choose postal and financial services. Information and services are duplicated on the official website of the organization. The platforms are developed taking into account the needs of different user groups. A person with any user experience can figure them out.

"Qazpost" actively established connections with various structures. Thanks to this, it became an aggregator of the National Bank of Kazakhstan's "Digital Tenge" project. It allows for cashless payments in areas with limited internet access.

The head of state noted the achievements of "Qazpost". But the organization is not stopping there. The plans include further development of IT structures, refinement of current systems, expansion of the ecosystem and presentation of new projects for the population.