driving etransformation australia and new zealand banking group limited david boyles chief...
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Driving eTransformation
Australia and New Zealand Banking Group Limited
David BoylesChief Operations Officer
Page 2
Today’s Agenda
• ANZ’s eTransformation Strategy
• Laying the foundations for successful eTransformation
– Focus on People, Customers, Process & Infrastructure
– Examples: Infrastructure Rationalisation
– Examples: Leadership in web-based technologies
• ANZ’s approach to internal eTransformation
• The PeopleSoft Partnership
• Key Learnings
Page 3
Continuous Productivity Improvement - ANZ’s way of life
• Rationalise & standardise our infrastructure
• Implement web-based technologies across a vast range of platforms & processes
• eTransform our internal processes
40
45
50
55
60
65
1997 1998 1999 2000 2001 Mar-02
NAB
CBA
WBC
ANZ
Cost leadershipCTI%
Provides the opportunity to:
Target
Mid 40’s
Page 4
ANZ’s Strategy
Specialise
eTransform
Perform
Grow
Breakout
• Building a portfolio of stand-out businesses with distinctive business leadership and a sustainable top 3 position that work as one ANZ
• Embracing technology to drive radical change, boost productivity, accelerate innovation and dramatically improve service and value
• Ensuring “best in class” performance for shareholders, customers, staff and the community
• Demonstrating strong growth momentum in core businesses and positioning ourselves in attractive new high growth categories
• Being bold and different, a high performance culture with a human face, technological leadership and a strong domestic and regional strategic position
Page 5
Laying the Foundations for Successful eTransformation
Starting in 1998 we made some key commitments involving People, Customers, Process and Infrastructure
• People: Alignment, collaboration & team work. Environment where individuals can excel. Retain critical individuals.
• Customers: Customer feedback processes & accountability, meaningful service levels, align with BU, implement TQM.
• Process: Consistent project management standards, strict criteria for new investment in applications, rationalise & standardise operational processes.
• Infrastructure: reduce costs, rationalise, consolidate & automate networks & platforms. Position for the future. Reposition backend product functions behind integrated service ‘frontend’.
Page 6
We rationalised and standardised our infrastructure
1998:
6 major systems
CBSHogan
MVS
UNIXW2K
2001
1998:
8+ major platforms
Core Systems
Platforms2002 1998 2002
- Provide all staff with best tools possible
- Low cost of ownership through standard solution
OS/2
Win 3.1Win NT
DOS
Servers & Desktops
1998
Multiple data networks
2000Internet Protocol (IP) network
- Single IP Network provides universal connectivity
- Greater ability to leverage new technologies
- Lower hardware, software licence fees & support costs
- Simpler systems & platforms reduce cycle times
Page 7
Leadership in Web-based Technologies
PAYplus – Global Payments Platform
• Standardised processes for enhanced product development
• Reduced operating and technology costs
• Improved operational risk management
VIPS - Visual Image Processing System
• Improved customer service through faster retrieval
• Enables eTransformation to customer ‘self service’ via Internet
• Eliminates geographic dependency on paper allowing stream lining of processes
• Lowest unit costs from ‘one pass’ data & image capture
Page 8
Web-based Technologies for a Range of Platforms
Tandem Replacement Project
• New lower cost base platform for EFTPOS & ATM switching
• Achieving high availability & high transaction performance
Microsoft Windows 2000 Platform for Branches
• Server & work stations deployed to 1000 branches across Australia & New Zealand to support new sales & service application
• Deployment also provided all branch staff with enterprise standard email & intranet
Proof of Concept of MS SQL 2000 for new data warehouse
Page 9
Positioning for Internal eTransformation
• Online self service is not new to our people
• eTransformation from the ‘top down’ - Board and CEO eTransformed using ‘Directors online’
• Introduced a common intranet (Max)
• Key people functions moved online - business process maps, Manage My Leave, Manage My Pay
• PCs@home offer taken up by 13,000 of our people
Page 10
Our Approach to the eTransformation of Internal Processes
Set Clear Objective
‘To move to online, standardised, real time processing, with Internet capability and wherever possible, self service environments.’
Prioritise Strategic Opportunities
Identify and reengineer key business processes
Page 11
PeopleSoft
• One area identified early on was the need for a common, standardised administration system or ERP – we chose PeopleSoft
• PeopleSoft met all our mandatory selection criteria
• HR functionality was tailored to Australian regulatory environment
• General ledger structure is a good fit to our operations
• Technology fits well with our architectural standards
• Relationships were effective and at the appropriate level
Page 12
Building on Microsoft Windows to Deploy PeopleSoft 8
• In the midst of deploying PeopleSoft 8 on MS Windows 2000 and MS SQL 2000
• MS Windows 2000 is our standard desktop operating environment
• MS Windows 2000 is also our standard for application servers running
• MS Windows 2000 has the lowest projected Total Cost of Ownership in comparison to other options we examined
• ANZ’s PeopleSoft implementation is one of the largest on this platform in the world
Page 13
Scope of our PeopleSoft Implementation
• ‘Vanilla’ implementation
• Processes changed to fit the software
• Focus on people impact – change management & training
• Major modules:
- Procurement
- Human Resources / Payroll
- Fixed Assets
- Accounts Payable
- Finance (General Ledger)
• Will cover 22,000 staff in Australia & New Zealand in 5 releases over 12 months – 5th release in September 2002
• Pushing the time / cost boundaries
Page 14
Organisational Impact
Changing the way we work, rather than the core system =
low customisation
Degree of package customisation
Low Customisation+
Major change to processes and jobs
=significant business change
Degree of package customisation
High stakeholder impact zone
Low stakeholderimpact zone
Low High
Ch
ang
e t
o A
NZ
’s e
xist
ing
pro
cess
es
and
jo
b s
tru
ctu
re
Page 15
Internal eTransformation BenefitsPeople
• Empowerment and satisfaction
• Transformation of culture – real time high velocity execution, delivery of web-based information anytime, anywhere, any place, straight-through automation
Productivity
• Faster, easier and more cost effective ways of working
• Easier capture and use of business information
• Consistent business platform across ANZ
• Reduction in operational risk
Costs
• Reduction in HR, finance administration and procurement spend & greater control of fixed assets
Page 16
Internal eTransformationKey Learnings
• Need strong sponsorship/leadership from the CEO down
• Strategic & architectural framework established early
• Project leaders must make key decisions – with broad impacts not always time to consult
• Full resource commitment – right quantity, right skills
• ‘Vanilla’ discipline: vigorous scope control at all levels
• Hard decisions taken up front –in the PeopleSoft implementation:
- restructure of chart of accounts for the general ledger- Significant reduction of vendor base from more than
18,000 to approximately 5,000
• Be ruthless on inefficiencies – take the opportunity to re-engineer your processes
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