eTransforming ANZ
David Boyles
Head of Technology, e-Commerce and Payments
18 July 2000
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.
Technology vision
Single IP
Network
Customers
Web enabled Channels
Customer
Management
Automated, seamless Straight-through Processing
Standard Platforms
Better Service
Lower Costs
Infrastructure: Application & platform
rationalisation
1998
2000
Hogan, EDS, T&C,
BankMaster
Core Systems
Hogan
CBS
6 major
systems
1998
Platforms
Apple
S/1
Novell
S/38
2001
UNIX
OS/2
UNIX
Storage
Tek
AS/400 VAX
Storage
ek
T
DiskICEBERG
Storage
Tek
Disk
Array
ICEBERG
W2000
Disk
Array Controller
Storage
Tek
ICEBERG
Disk
Array
ICEBERG
Disk
Array
MVS
TANDEM
MVS
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
Disk
Array
ICEBERG
Infrastructure: Standardised servers and
desktops
2000
1998
• 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
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
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
Infrastructure: Single IP network
1998
Multiple
data networks
2000
Single IP
Network
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
Infrastructure: Payments transformation
Today
FTS
MTS
MIDANZ (payments)
Telex MIDS/MERVA
Finet(payments)
Intelitracs
Braid Telex/Fax Recon
CARS (recl’n)
Inward Drawings
Venus
Global Payments
STI/ALA
STI/ALA
MIDANZ
MIDANZ (payments)
(payments, reconl’n)
MMSI / SEARCH
MMSI / SEARCH
EFS, DEMS, CARS
Tomorrow
Telex Intelitracs
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
Capability: Centres of excellence
Example 1
eCommerce Centre of Excellence
Standard Practices:
Personal
Business
Units
• Architecture
• Processes
Corporate
International
• Development
Platform
• Standard
platforms and
tools
• Testing
• Systems
Monitoring
• Component re-use
• Operating systems
• User authentication
• Security
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
Capability: Transforming the culture
Development
and training:
From
• 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
- leadership
development
- specialist career
paths
- on-line training
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
Capability: Centres of Excellence
Example 2
Business Alignment
ANZ Ventures
Investment
Committee
EMC
• Established late 1999
• Small expert team supporting all
businesses
Investment
Decision and
Governance
• Utilising rigorous processes
• Following strict guidelines around
strategic fit
ANZ
Ventures
Business
Units
Business Outcomes
• 180+ opportunities processed
• 6 deals concluded
• 66 in the pipeline
Opportunity analysis,
Deal Execution and
Support
Opportunity
identification,
synergistic outcomes,
return on equity
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
B2C
AST
Real Time
Loan Approvals
B2B
Internal
ERP
Directors on line
Sales & Service
Platform
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
Purpose built - discrete configurations
Win 2000 and web based
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
Costs: Straight through processing
Example 1
Internet
Customers
Internet
Service
Provider
Dealers
Brokers
Sales
Team
Support
Staff
Head
Office
Esanda: Loans, Leases and Cash Investments
Web Servers
Application Servers
Backend
A
B
Virtual
Private
Network
Intranet
Middleware
C
ANZ Network
W2000
One user interface
W2000
D
Unix
Common entry point
for all channels
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
Costs: Straight Through Processing
Example 2
Customers
Mortgage
Managers
Internet
Internet
Service
Provider
Personal Banking Loan Origination System
Web Servers
Application Servers
Middleware
ANZ’s
Core A/C
Processing
System
ANZ Network
ANZ Branch
Network
Intranet
Backend
Packaged Solution
Packaged Solution
Credit
Bureau
MIS
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
Costs: Delivering Via the Web Internally:
October 1999
Informational
Today
Transactional
Evolved from IT pilot,
MAX reaches 14,000 staff
text primarily
Publishing tools 100 staff trained
Publishing Basic publishing
PFS manuals on-line
General/
Access
End 2000
Dynamic
Post 2001
E-business
Max reaches 20,000 staff
All staff
Publishing tools 200+ staff trained
All Manuals on-line
On-line manuals supported
by document management
E-Forms
160 forms on-line;
incl. Leave online
400 Forms on-line
Workflow tools in place
1000 Forms
Common processes automated
Training
Vendor selected
Strategy & pilots
On-line training - stage 1
Extend pilots across
Business Units
On-line training - stage 2
Institutionalise
Limited Functionality
7,000 access
10,000 access
Knowledge
Management
Multi Media
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
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.