eTransforming ANZ
David BoylesHead of Technology, e-Commerce and Payments
18 July 2000
eBank with a human face
• 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.
Provide our customers with a personalised, multichannel experience through seamless channel integration, web enablement and CRM technology:
Technology vision
Better ServiceLower Costs
Automated, seamless Straight-through Processing
Single IP Network
Cus
tom
er
Man
agem
ent
Web enabled Channels Standard PlatformsCustomers
Infrastructure: Application & platform rationalisation
Hogan, EDS, T&C, BankMaster
6 majorsystems
CBS
HoganCore SystemsCore Systems
PlatformsPlatforms
TANDEM
StorageTek StorageTek Disk Array ICEBERGDisk ICEBERGDisk Array
MVS
AS/400S/38
VAXS/1
OS/2Novell
Apple
UNIXStorageTek StorageTek
ICEBERGDisk Array
ICEBERGDisk Array Controller
ICEBERGDisk Array
MVS
UNIX W2000
1998 2000
Business Outcomes
20011998
• 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
Infrastructure: Standardised servers and desktops
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
1998 2000
OS/2Win
3.1Win NTDos
• Multiple hardware platforms
• Win 3.1, Win NT, Dos, OS/2• Different office applications
• All PCs running Windows NT or Windows 2000
• Office 2000• Microsoft strategic alliance
Infrastructure: Industrial strength web
• 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
• 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
Web farmsWeb farms
Business Outcomes
Infrastructure: Single IP network
Business Outcomes
A single IP Network provides universal connectivity, both internal and external
• 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
Single IP Network
Multiple data networks
1998 2000
1999: CBD administration offices and large branches converted2000: All sites converted
Today Tomorrow
• New technology Global Payments system retires 27 existing systems • Processes $90 billion a day worldwide• Australian implementation from 4Q 2000
• 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
Business Outcomes
Infrastructure: Payments transformation
MTSTelexIntelitracs
FTSMIDANZ (payments)MIDS/MERVABraid Telex/FaxCARS (recl’n)
Finet(payments)Recon
Inward DrawingsGlobal Payments STI/ALAMIDANZ (payments)MMSI / SEARCHEFS, DEMS, CARS
VenusSTI/ALAMIDANZ (payments, reconl’n)MMSI / SEARCH
Telex Intelitracs
FundtechCARS
Capability: Centres of excellenceExample 1
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
eCommerce Centre of Excellence
Personal
Corporate
International
Joint Soluti ons Teams
Business Units
Platform
• Standard platforms and tools
• Systems Monitoring
• Operating systems
• Security
Standard Practices:
• Architecture
• Processes
• Development
• Testing
• Component re-use
• User authentication
Capability: Transforming the culture
• 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
From To
• 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
Development and training:
- leadership development
- specialist career paths
- on-line training
Capability: Centres of Excellence Example 2
ANZ Ventures• Established late 1999
• Small expert team supporting all businesses
• Utilising rigorous processes
• Following strict guidelines around strategic fit
• 180+ opportunities processed• 6 deals concluded• 66 in the pipeline
ANZ Ventures
Investment Committee
EMC
Investment Decision andGovernance
Business Units
Opportunity analysis,Deal Execution and
Support
Opportunity identification,
synergistic outcomes,return on equity
Business Alignment
Business Outcomes
Capability: Trust and authentication
• 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
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.
Web-enabling ANZ
Directors on lineDirectors on lineDirectors on lineDirectors on lineSales & Service Sales & Service
PlatformPlatform
ERPERP
ASTASTReal Time Real Time
Loan ApprovalsLoan Approvals
B2C
B2B
Internal
VIPS
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
Costs: Payments voucher imaging project
Scalability - ability to scale solution to suit individual sites Flexibility - any number of sites of any size
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 2001Business Outcomes
Win 2000 and web basedPurpose built - discrete configurations
Replace voucher processing equipment with PC based image capture technology
• 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
• 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
Costs: Straight through processing Example 1
Esanda: Loans, Leases and Cash Investments
Application Servers Middleware Backend
DealersBrokers
IntranetSalesTeam
Customers
Support StaffHeadOffice
Web Servers
A
B
C
D
ANZ Network
W2000W2000 Unix
Proof of Concept Complete. Implementation Scheduled Q2 2001
Internet Service Provider
Internet
Virtual Private
Network
Business Outcomes
One user interface Common entry pointfor all channels
Costs: Straight Through Processing Example 2
Personal Banking Loan Origination System
Application Servers Backend
MortgageManagers
IntranetANZ Branch
Network
Customers
Back-officeOperations
Web ServersANZ’s
Core A/CProcessing
System
CreditBureau
MISPackaged Solution
IBM M/frame
First implementation for Mortgage products scheduled 2000
Internet Service Provider
Internet
Packaged Solution
• 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
Business Outcomes
Middleware
ANZ Network
Costs: Delivering Via the Web Internally:
Evolved from IT pilot, text primarily MAX reaches 14,000 staff
Informational Transactional Dynamic E-businessOctober 1999 Today
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
End 2000 Post 2001
General/Access
Publishing
E-Forms
Training
KnowledgeManagement
Publishing tools - 100 staff trained PFS manuals on-line
On-line manuals supported by document management
160 forms on-line; incl. Leave online
Vendor selected On-line training - stage 1
Max reaches 20,000 staff All staff
10,000 access
Publishing tools - 200+ staff trained All Manuals on-line
Multi Media Limited Functionality 7,000 access
400 Forms on-lineWorkflow tools in place
1000 FormsCommon processes automated
On-line training - stage 2Strategy & pilots Extend pilots across
Business UnitsInstitutionalise
Basic publishing
eBank with a human face
• 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.
Provide our customers with a personalised, multichannel experience through seamless channel integration, web enablement and CRM technology: