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: