E-business at www.westpac.com.au Jerry Gross, Group Executive I.T. and e- Business March 2001
Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 22 March 2001. 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.
Strategic Intent Customer Intimacy Operational Excellence Product Innovation
Strategic Intent 1999/2000 Focus Customer Intimacy Operational Excellence Product Innovation
Strategic Intent Customer Intimacy 2001 Focus Operational Excellence Product Innovation
Westpac Focus Fully Integrated Manufacturer/Distributor Trusted Retailer of Financial Solutions Individual product view of each customer, fragmented across multiple contact points Mass market orientation (limited customisation) Relatively narrow product range, mainly manufactured in-house Old economy, in-house, resource intensive focus Integrated customer understanding, independent of contact point Creating individual financial solutions Broad product range aggregated across suppliers Multi-channel delivery platform
NEW LESSONS E-Commerce Myths Distance Learning vs. Universities PDA s vs. Laptops Careers.com vs. headhunters e-tailers vs. Malls Online players vs. Brick and Mortar players Call Centres vs. web-based support
New Assumptions in Selling The death of the transaction the rise of the relationship The death of the passive consumer the rise of active co-creator The death of opaqueness the rise of transparency The death of the product the rise of experience
The New Exchange Architecture Industrial Age Information Age - Marketer-initiated - Marketer-controlled - Monologue - One-time - Customer-initiated - Customer-controlled - Conversation - Ongoing
Banks competitive advantage Buyer Value Chain Request for information / purchase enquiry Assess pricing, service levels, quality Place order for goods Receive invoice / goods Pay for goods BANK Increasing need for Trust Payments System $ Supply product information, respond to information requests Price goods & services Fulfil orders Ship goods and invoice buyer Seller Value Chain Receive payments for goods and services BANK
Banks competitive advantage Our legacy is also an advantage: - Already playing a key role in facilitating commerce - Large distribution networks Position of trust Large online community across the full spectrum of customers
Westpac Beliefs "Clicks and Bricks" is the ultimate offensive play Focus on "Outside In Superior execution Self-serve mass customisation Straight through processing New business models Build to change, not build to last All Commerce is e-commerce Alliance Culture
Should we, or someone else do it? Strategic Importance Sustainable Profitability Available Opportunities Portfolio Strategies
Focusing on Customer Rich Components Rapid Execution Close to the Customer GUI OBJECTS MIDDLEWARE MESSAGING Robust large scale management OPERATING SYSTEM HARDWARE NETWORK
Duality in ebusiness initiatives ebusiness Stay-in-business initiatives (evolutionary, incremental) Differences scope speed funding people incentives Destroy-yourbusiness initiatives (revolutionary, discontinuous)
Investment Options High Evolve Transformation (New Value Propositions) IT Enabled Transformation Enhance Extend Efficiency (Cost Savings) Competitive Position (Enhanced Revenues and relationships) Effectiveness (Reduced time, improved process quality) Low Low Potential Buyer Value Capture High
Venture Acceleration Management Team Focused Strategy Partnership Track Record Ability to Create Value
What progress have we made... Key capabilities launched in the last year Launch of New Zealand Internet Banking service Launch of f2 Domain home lending partnership Launch of Healthpay health insurance payroll contributions service Launch of SME Superannuation contribution service Launch of Westpac Broking Launch of Business Internet Banking service Launch of third party payments capability for business and consumer customers Launch of yieldbroker.com fixed interest trading portal Launch of e-bonds distribution capability Launch of FX Online foreign exchange trading capability Launch of On-line Research service Launch of Nostro / AUD online institutional accounts service Redesign and re-launch of westpac.com.au site Establishment of Metiom Australasia JV to provide eprocurement and B2B Marketplace services
The End Game? Execution will be the determinant Capture and exploit ideas Partner for targeted ASP offerings New customer relationship Proactively offer new services Open marketplaces Comparing to best practices in any industry
Jerry Gross jgross@westpac.com.au