eTransforming ANZ

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eTransforming ANZ
David BoylesHead of Technology, e-Commerce and
Payments18 July 2000
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eBank with a human face
Provide our customers with a personalised,
multichannel experience through seamless channel
integration, web enablement and CRM technology

• Robust and flexible infrastructure. Rationalise
  core systems platforms, standardise desktops
  and services, and create a single IP network
• eCommerce capabilities. Build strong capabilities
  via eCommerce centre of excellence, ANZ Ventures
  discipline, and changing the way Business Units
  and IT work together
• Cost reduction. Aggressively reduce costs by
  using technology to improve productivity, reduce
  complexity, straight-through processing
  automation of administrative functions.

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Technology vision
Web enabled Channels
Standard Platforms
Customers
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Infrastructure Application platform
rationalisation
1998
2000
Hogan, EDS, TC, BankMaster
Core Systems
6 majorsystems
1998
2001
Platforms
Business Outcomes

• Simpler systems and platforms reduce cycle times
  more flexible/adaptable
• Benefits from infrastructure NZ internet banking
  in 10 weeks
• Greater ability to leverage new economy
  technologies Win2000 Unix
• Lower hardware, software licence fees and support
  costs

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Infrastructure Standardised servers and desktops
1998
2000

• All PCs running Windows NT or Windows 2000
• Office 2000
• Microsoft strategic alliance

• Multiple hardware platforms
• Win 3.1, Win NT, Dos, OS/2
• Different office applications

Business Outcomes

• Provides all staff the best tools possible,
  including Office 2000, via the intranet
• Low cost of ownership through a standard
  solution - enables central upgrades,
• reduced maintenance costs
• Key alliances will underpin leadership
  capabilities in business applications

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Infrastructure Industrial strength web
Web farms

• Windows based web farm approach across ANZ
• World class technical design and systems
  management capability
• Standardised approach and repeatable build
  capability
• Dedicated and focused technical team

Business Outcomes

• Robust, scaled industrial strength web
  infrastructure
• High security standards including firewalls,
  encryption capability and certificates
• Fast to build and low cost to maintain
• Single site failover and second site DRP

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Infrastructure Single IP network
1998
2000
Multiple data networks
A single IP Network provides universal
connectivity, both internal and external
1999 CBD administration offices and large
branches converted 2000 All sites converted
Business Outcomes

• Cost neutral, but 100 times capability increase
  response time halved
• Flexibility - support any to any connectivity
• Intranet access supporting improved knowledge of
  all staff
• Industry standard facilitates connections to
  external partners to support large
• scale e-business development

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Infrastructure Payments transformation
Today
Tomorrow
FTS MIDANZ (payments) MIDS/MERVA Braid
Telex/Fax CARS (recln)
MTS Telex Intelitracs
Telex Intelitracs
Finet(payments) Recon
Inward Drawings Global Payments STI/ALA MIDANZ
(payments) MMSI / SEARCH EFS, DEMS, CARS
Venus STI/ALA MIDANZ (payments, reconln) MMSI /
SEARCH
Fundtech CARS

• New technology Global Payments system retires 27
  existing systems
• Processes 90 billion a day worldwide
• Australian implementation from 4Q 2000

Business Outcomes

• Provides infrastructure for other payment
  initiatives including integration with eCommerce
  and Global Cash Management
• Enables greater efficiencies through
  consolidation, real time capabilities and
  increasing Straight Through Processing
• Provides agility and flexibility in new product
  delivery

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Capability Centres of excellence Example 1
eCommerce Centre of Excellence

• Standard Practices
• Architecture
• Processes
• Development
• Testing
• Component re-use
• User authentication

• Platform
• Standard platforms and tools
• Systems Monitoring
• Operating systems
• Security

Personal


Business Units
Corporate
Joint Solutions Teams
International

• Business Outcomes
• Solutions that meet Business Unit requirements
• Cost effectiveness - standard practises,
  leveraging ANZIT
• Timeliness to market - Rapid Application
  Development, 30 day cycle, but 3-7 days on many
  projects, e-auto - concept to full business
  launch 6 months

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Capability Transforming the culture
Development and training - leadership
development - specialist career paths - on-line
training
From
To

• Large (2-3 yr) project focus
• Platform /technology focus
• Technology as a necessary cost
• IT as a specialist support function
• Technical skills paramount
• People as expensive commodity

• Rapid development, 30-90 day cycles
• Business benefits approach
• Technology as business fundamental
• IT/ Business Unit joint planning
• Leadership and customer orientation
• People as valuable investment
• Empowering people to initiate improvement Triple
  A program delivering 19m benefits to date

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Capability Centres of Excellence Example 2
Business Alignment

• ANZ Ventures
• Established late 1999
• Small expert team supporting all businesses
• Utilising rigorous processes
• Following strict guidelines around strategic fit

Investment Committee EMC
Investment Decision and Governance
ANZ Ventures
Business Outcomes

• 180 opportunities processed
• 6 deals concluded
• 66 in the pipeline

Opportunity identification, synergistic
outcomes, return on equity
Opportunity analysis, Deal Execution and Support
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Capability Trust and authentication

• Identrus
• ANZ is currently the only Australian bank to have
  an equity investment in Identrus.
• Identrus has a number of distinguished members
  from the banking industry.

• Building the foundations for a Global Trust and
  Authentication Services infrastructure to take a
  leading role in B2B, B2C, B2G, B2E and Payments.
• ANZ/Partner IP
• Based around digital certificates and Smart Card
  technologies
• Key inititiatives and investments
• Security and Access System
• Identrus
• ANZ Telstra /ERG JV
• Other investments and strategic relationships

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Web-enabling ANZ
B2C
AST Real Time Loan Approvals
B2B
Internal
ERP
VIPS
Directors on line
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Costs High quality low cost solutions

• Already delivered
• Reduced dependence on expensive contractors
• Co-located IT executives with business managers
• Increased staff numbers in lower cost high
  quality environments
• Introducing new quality and efficiency programs
  across all development sites
• electronic time cards and project management
• implemented CMM pilot in the International Unit
  for roll out across ANZ
• Delivered training on-line
• Business Outcomes
• CMM pilot has reduced coding cost by 24 and
  errors by 90
• Quicker problem definition and solution
• Staff turnover dropped from 18 May 1998 to 7
  May 2000

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Costs Payments voucher imaging project
Win 2000 and web based
Purpose built - discrete configurations
Replace voucher processing equipment with PC
based image capture technology
Scalability - ability to scale solution to suit
individual sites Flexibility - any number of
sites of any size
Proof of Concept completed. Progressive testing
2000. Australian rollout commences 2001
Business Outcomes

• Low cost/greater capability
• Competitive advantage through flexible
  scalability and Lockbox integration
• Enables transformation of customer service
  activities and customer self service
• Maintains ANZ at best practice in Australia

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Costs Straight through processing Example 1
Esanda Loans, Leases and Cash Investments
Internet
Application Servers
Middleware
Backend
Web Servers
Customers
Internet Service Provider
A
B
Virtual Private Network
Dealers Brokers
C
ANZ Network
Sales Team
Intranet
D
Support Staff
W2000
W2000
Unix
Head Office
Common entry point for all channels
One user interface
Proof of Concept Complete. Implementation
Scheduled Q2 2001
Business Outcomes

• Low cost delivery via straight through
  processing, designed for Fault Tolerance, High
  Availability, Scalability and Performance, easily
  integrated and deployed.
• Responsive to changing business needs - designed
  for plug and play
• Highly Secure, protected by Firewalls and a
  Security Policy Service.
• Leading edge use of Microsoft solutions

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Costs Straight Through Processing Example 2
Personal Banking Loan Origination System
Internet
Middleware
Customers
Backend
Application Servers
Web Servers
Internet Service Provider
ANZs Core A/C Processing System
Mortgage Managers
Credit Bureau
ANZ Network
ANZ Branch Network
Intranet
MIS
Packaged Solution
Packaged Solution
IBM M/frame
Back-office Operations
First implementation for Mortgage products
scheduled 2000
Business Outcomes

• Faster response to customers, and web-based
  access to origination processes
• Common, automated end-to-end processes for all
  products and channels
• Electronic workflow of remaining manual
  processes
• Significant productivity improvements - reduced
  reworks

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Costs Delivering Via the Web Internally
October 1999
Today
End 2000
Post 2001
Informational
Transactional
Dynamic
E-business
Evolved from IT pilot, text primarily
General/ Access
MAX reaches 14,000 staff
Max reaches 20,000 staff
All staff
Basic publishing

• Publishing tools -
• 100 staff trained
• PFS manuals on-line

On-line manuals supported by document management

• Publishing tools -
• 200 staff trained
• All Manuals on-line

Publishing

• 160 forms on-line
• incl. Leave online

1000 Forms Common processes automated
E-Forms
400 Forms on-line Workflow tools in place
Training
On-line training - stage 1
Vendor selected
On-line training - stage 2
Knowledge Management
Strategy pilots
Institutionalise

• Extend pilots across
• Business Units

Multi Media
10,000 access
Limited Functionality
7,000 access
Business Outcomes

• Max has become medium of use
• Costs reduced via move to paperless office
• Increased effectiveness through keeping staff
  better informed
• Improve administration processes for staff via
  the web

19
eBank with a human face
Provide our customers with a personalised,
multichannel experience through seamless channel
integration, web enablement and CRM technology

• Robust and flexible infrastructure. Rationalise
  core systems platforms, standardise desktops
  and services, and create a single IP network
• eCommerce capabilities. Build strong capabilities
  via eCommerce centre of excellence, ANZ Ventures
  discipline, and changing the way Business Units
  and IT work together
• Cost reduction. Aggressively reduce costs by
  using technology to improve productivity, reduce
  complexity, straight-through processing
  automation of administrative functions.