Transforming the National into an eEnterprise

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Transforming the National into an eEnterprise

• Michael Coomer - EGM, e-Commerce

www.national.com.au
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Disclaimer
The material that follows is a presentation of
general background information about the Banks
activities current at the date of the
presentation, 28th June 2000. It is information
given in a summary form and does not purport to
be complete. It is not intended to be relied upon
as advice to investors or potential investors and
does not take into account the investment
objectives, financial situation or needs of any
particular investor. These should be considered,
with or without professional advice when deciding
if an investment is appropriate.
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Why change
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Why transform

• We are moving from the the industrial economy to
  the knowledge economy
• We are moving from value chains to value webs
• eCommerce is exploiting inefficiencies in the
  value chain - new business models are exploiting
  inefficiencies in the value network
• Value is shifting downstream to the customer -
  and to the customers customer
• What has made us successful in the past is no
  longer sufficient to deliver value for the
  future. We need to find new sources of
  shareholder value and new sources of revenue.

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Operating rules are changing...
THREATS
OPPORTUNITIES
Disintermediation More transparency Disaggregation
Commoditization Margin erosion Global
competition Non traditional new entrants
Global opportunities Increased access to
customers Improved efficiencies Better
information sharing with customers and
suppliers Faster growth potential More efficient
capital markets
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How the National is changing
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The National has re-organised to prosper
The Nationals recent restructuring has
positioned the National to effectively compete in
the networked marketplace. The creation of Nova,
the Nationals eBusiness incubation and
acceleration centre, ensures the Group will
successfully launch new eBusinesses. In
combining the Corporate, eCommerce and Technology
Strategy functions, the Group has recognised the
convergence and blurring of the lines between
these key aspects of financial services
businesses.
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The Corporate Technology Strategy charter
Purpose Corporate Technology Strategy exists to
take a pro-active leadership role in positioning
the Group, by bringing forward profitable
opportunities, both traditional and new economy,
and proposing value added strategic choices to
the Managing Director.

• Scope and Responsibilities
• Provide strategic leadership in the development
  of the Group's Corporate Strategy
• Use a Portfolio Framework to provide strategic
  direction for management of existing businesses,
  optimising growth and shareholder value
• Identify and align with strategic partners to
  enable pursuit of the Group's evolution to a
  growth oriented e-organisation

• Success criteria
• A measurable and sustainable increase in Future
  Growth Value

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CTS will be responsible for the Groups
eCommerce and eBusiness Strategy

• Focus - with a Corporate perspective
• Responsiveness - to dynamic business demands
• Strategic Alignment
• Strategic leadership and direction
• Corporate/eCommerce/Technology Strategy
  alignment, Globally.
• Centralised thought leadership
• Information sharing through Group wide eCommerce
  forums
• Funding Benefits
• centrally managed eCommerce budget
• funded predominantly through Capital budgets
• single agency accountability for all eNational
  benefits 500M (3-5 yrs)

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Group Strategy in action at the National
INPUTS
Global Business Trends (across industries)
Competitor Activity
Business Unit feedback
Customer feedback
Technology evolution/revolution
Supplier/Partner Activity
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The Group is transforming to an eEnterprise along
two parallel paths - evolving existing
businesses and launching new business models -
with the same end goal, creating eNational.

• Approach
• Improve execution within existing businesses

• Financial
• Apply ROE/ROI investment principles

• Focus of Work
• Build out the infrastructure
• Reinvent the processes

• Objectives
• Dramatic reduction in costs
• Improved capabilities

Execution Focus
Evolve existing businesses
National
eNational
Share learnings
Launch new business models
Business Model Focus

• Approach
• Test new business models in new markets

• Financial
• Apply venture capital investment principles

• Focus of Work
• Design the offering
• Cut deals to deliver

• Objectives
• Visible presence in the e-world
• Customer acquisition

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CTS will map out and drive those paths for the
Group and ensure we arrive at an eNational that
is positioned to thrive in the eEconomy
Evolve existing business
Which businesses to invest in or divest of
National
eNational
What business models
integrate business back in
Launch new business models
(either through Nova or CTS)
(either through Nova or CTS)
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What is the Nationals eStrategy
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The Nationals eBusiness mission
Generate additional shareholder value by being
recognised as one of the leading e-Business
Financial Services Institutions in each of our
selected markets. Be essential to do business
with.
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The major strategic thrusts transforming the
National into an eEnterprise
1. Moving beyond existing customer-centric
orientation towards buyer-driven business models
1. Marketplace
2. Extending the role in the commerce value
chain via partnerships / alliances to capture new
value
3. Leveraging eCommerce approaches to reinvent
internal processes and roles
eNational
3. Enterprise
2. Extended Enterprise
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eNational High Level Objective (and benefits)
Through adoption of new business models
incorporating end-to-end automation and on-line
processing we aim to increase proportion of
customer-facing staff and reduce operating costs
significantly.
Non Customer Facing FTEs 53
Estimated Benefits (3-5 yrs) Savings
500m Plus Increased Revenue TBD
60,000
Objective 43
50,000
40,000
30,000
20,000
10,000
-
Group Total FTEs
Notes 1. Excludes NSITE, Homeside ALM 2. The
benefits have been calculated on the basis of
FTE's saved against existing staff levels and
business volumes.
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The Group, through CTS, is approaching eNational
through three sub-programmes
eNational
Marketplace
Extended Enterprise
Enterprise
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The Concert alliance. a key infrastructure
enabler
Customer Relationship Management
Product Innovation
Infrastructure
Human Performance Support
Value Chain Integration
Intellectual Property Supply
Enterprise Management
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When
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Deliverables ScheduleDigitising the National -
ISI
Note Wave 3, 4 5 to be confirmed after
completion of GBB
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Deliverables SchedulemyNational.com
Sep 01
Mar 01
Sept 00
Jun 01
Today
Dec 00

• myNational prototype
• myNational gameplan

• Employee Directory (AUS)
• eTransformation Program Stage 3
• Employee tools online Stage2

• Employee Directory (UK)
• eTransformation Program Stage 4
• Employee tools online Stage 3

• Employee Directory (US)
• eTransformation Program complete
• Employee tools online

• myNational.com infrastructure Stage1
• eTransformation Program Stage 1

• myNational.com infrastructure complete
• myNational.com business unit and operating
  entities online
• Employee Directory (NZ)
• eTransformation Program Stage 2
• Employee tools online Stage 1

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Deliverables Schedule Retail Marketplace
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Deliverables Schedule Corporate/Wholesale
Marketplace
Sep 01
Mar 01
Sept 00
Jun 01
Today
Dec 00

• Foreign exchange online trading(Virtual Private
  Network)
• Nabmarkets website (research)
• Web FX in USA (Autodeal Lite)

• Money Market online trading (AUS)
• Web Foreign Exchange online trading (Region
  2)
• Securities online (Stage 23)
• Currency Options online

• Money Market online trading (UK1)
• Securities online (Stage 1)
• Nabmarkets website (transaction services)

• Money Market online trading (UK2)
• Web Foreign Exchange online trading (Region
  1)

• Money Market online trading (NZ)
• Web Foreign Exchange online trading (Global)

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Deliverables Schedule Payments
Sep 01
Mar 01
Sept 00
Jun 01
Today
Dec 00

• Member of global authentication scheme. Regional
  and domestic consortiums established. Spay (Aus)
  and ECPS(UK) and others.
• NSIPS (Aus)
• B2C Payments gateway (Aus/NZ)
• Phase 1 B2B eCommerce Payments capability

• Guaranteed and authenticated payment capability
  (Aus, NZ)
• Extended B2C payments gateway (NZ)
• m-Commerce Payments (phase 1)

• Guaranteed and authenticated payment capability
  (Global)
• Extended B2B eCommerce payments capability (NZ,UK)

• M-Commerce Payments (phase 2)

• B2C payments gateway Europe
• Extend eMerchant Services
• eCommerce payments support for Concert (UK)

• Cross-border multi currency acquiring (Aus)
• ExtendedB2C payments gateway (MNC)
• Electronic bill presentment and payment
• Netmarket Trust Services
• eCommerce Trust Services

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Deliverables Schedule Infrastructure - Concert
Sep 01
Mar 01
Sept 00
Jun 01
Today
Dec 00

• Global IP Network
• eProcurement Pilot
• MNC Web Publishing
• WAP Pilot

• Complete Aus IP Network

• 1/3 of Aus IP Network
• Managed service end points in Europe
• International Voice Network

• 2/3 of Aus IP Network
• Global Call Centre infrastructure

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Questions
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www.national.com.au