Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and it

Transcription

1 B2B Marketplace ebusiness Strategy 16 June 2000

2 Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 16 June The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs.

3 Purpose Background on the strategy Harry Wendt Discussion of our approach David Issa Questions and Answers 3

4 Westpac s 5 Point Strategy 1 Organise around where and how we create value 2 Optimise the old production functions 3 Extend the enterprise and create new businesses 4 Deepen and broaden customer relationships 5 Build the capabilities and culture to succeed 4

5 Value Chains Servicing & Processing Product Solutions Sales & Marketing Current Span of Banking Services Request for information / purchase enquiry Assess pricing, service levels, quality Place order for goods Receive invoice / goods Pay for goods Banks / Payments System Receive payments for goods and services Ship goods and invoice buyer Fulfil orders Price goods & services Supply product information, respond to information requests Buyer Value Chain Seller Value Chain 5

6 Westpac s Opportunities Internal e-procurement services for Westpac e-procurement services for Westpac Corporate Clients Establishment of a Westpac trading community Establishment of other trading communities 6

7 Westpac s Opportunities Westpac s own procurement NewCo Westpac s Suppliers Other Buyer Communities SME Portal Other vertical and branded trading communities Other Supplier Communities Westpac s SME s 7

8 Scope of Opportunities Illustrative High Investment / Risk B2BRegional Market Place - Other Portals, Vertical Communities, non-westpac large Corporate procurement Westpac Corporate Customers Internal procurement Westpac SME Procurement Portal Low Westpac Internal Procurement Low Potential Value Capture High = Opportunities that could be capture by being a customer of an eprocurement provider = Opportunities that could be capture by having a equity stake in a eprocurement provider 8

9 Strategic Fit High Create a New Business New e-market places for other organisations including corporate clients IT Enabled Transformation Low Low Enhance Business Execution Extend the Enterprise Enhance internal procurement processes and ensure compliance Potential Buyer Value Capture Extend by developing an e- Procurement portal business customers High 9

10 Evolution of B2B Procurement One-to-Many e-procurement (one large buyer to one Content Aggregator to many suppliers) Aggregator Hubs (several large buyers to one Content Aggregator to many suppliers) Marketplace (many buyers of all sizes to many suppliers of all sizes) B2B Phase I B2B Phase II 10

11 Intelisys 4,500 Users 24,000 Suppliers e-procurement 5,000 Users 10,000 Suppliers e-marketplaces 20,000 Businesses 322,000 Businesses 48,000 Businesses 100,000 Businesses Powered 700,000 Businesses SA government 4,500 Users 15,000 Suppliers 3 Million Businesses 200,000 Businesses 3,000 Users 38,000 Suppliers 11

12 Intelisys Australasia - Market place Westpac s own procurement NewCo Westpac s Suppliers New Portal Other Buyer Communities Westpac Portal New Portal Other Supplier Communities Westpac s SME s = bilateral agreement 12

13 Intelisys Australasia Value is created through: Licence fees and maintenance fees paid by customers of Intelisys Australasia Service fees paid by customers and some suppliers where Intelisys Australasia sets up web site/ catalogues for supplier Transaction fees paid by the supplier only when transaction completed. Indicative transaction fees from the US market range from 2-7% of the transaction value. 13

14 Intelisys Australasia Plans to have two additional portals in place within 18 months Will assist Westpac to: develop its internal eprocurement capability to lock in the supplier rationalisation and procurement savings already targeted develop and implement a SME portal by end of 2000 calendar year. 14

15 B2B Marketplace ebusiness Strategy 16 June 2000