Westpac Enterprise 2.0 experiences Enterprise 2.0 Executive Forum 2008 David Backley Chief Technology Officer Westpac Banking Corporation 19 February 2008 Prepared by Geoff Ward

The demographic of our business Total Employees by Generation 24% 50% 25% 1% Baby Boomers 1945 and 1961 Generation X 1962 and 1977 Generation Y 1978 and 1990 other 0% 20% 40% 60% 80% 100% BTSS BCB WIB BT Group Business Units Pacific Banking Total Generations by Business Unit Generation Y 1978 and 1994 Generation X 1962 and 1977 Baby Boomers 1945 and 1961

Westpac approach to Enterprise 2.0 Enterprise 2.0 is about people and culture, not just technology - Connecting people and sharing their knowledge - Attracting, retaining & reusing people and corporate knowledge Global trends demonstrate that Westpac needs to specialise in - Deeper customer intimacy and stronger advocacy - Core value propositions – share effort on non-core - Exploiting internal and external collaboration for higher than average margin growth

Enterprise 2.0 is about people and culture, not just technology

- Connecting people and sharing their knowledge

- Attracting, retaining & reusing people and corporate knowledge

Global trends demonstrate that Westpac needs to specialise in

- Deeper customer intimacy and stronger advocacy

- Core value propositions – share effort on non-core

- Exploiting internal and external collaboration for higher than average margin growth

Westpac approach to Enterprise 2.0 (cont’d) Enterprise 2.0 stimulates innovation and makes processes flow more effectively - Team: Sharing operational knowledge, ‘how tips’, ideas & suggestions - Process: Augmenting process tasks, support each other end-to-end - Community: Connecting equivalent roles across organisational boundaries Developing and sharing best practice, ideas & alerts, experience Enterprise 2.0 is happening, but needs harnessing as a strategic asset - Supporting current needs driven initiatives - Providing strategic direction and supporting guidance Making it universally available to match explicit needs Providing a framework for identifying and selecting the right tools Establish clear governance - Comprehensive coverage - Lightness of touch (self-serve)

Enterprise 2.0 stimulates innovation and makes processes flow more effectively

- Team: Sharing operational knowledge, ‘how tips’, ideas & suggestions

- Process: Augmenting process tasks, support each other end-to-end

- Community: Connecting equivalent roles across organisational boundaries

Developing and sharing best practice, ideas & alerts, experience

Enterprise 2.0 is happening, but needs harnessing as a strategic asset

- Supporting current needs driven initiatives

- Providing strategic direction and supporting guidance

Making it universally available to match explicit needs

Providing a framework for identifying and selecting the right tools

Establish clear governance

- Comprehensive coverage

- Lightness of touch (self-serve)

Enable I.T. to also support perpetual beta to be business agile Market Innovate Mature Core Cost & Time Agility Perpetual beta creates new flows (lightness of touch) Aligned IT supports business beta Use of alliances to access required capabilities Maintains existing flows Business case achieves hurdle IRR Traditional done by IT waterfall method Test an idea to see if there is interest/value Discover risks First to market Use new enabling technologies Take feedback from customers, workers, etc and extend capability Integrate into value chain Establish operational design Scale up Integrated solution with appropriate operation design to protect investment. Business critical to customer and/or Westpac EXIT or SUSPEND Cost & Time ? $ $

Perpetual beta creates new flows (lightness of touch)

Aligned IT supports business beta

Use of alliances to access required capabilities

Maintains existing flows

Business case achieves hurdle IRR

Traditional done by IT waterfall method

Test an idea to see if there is interest/value

Discover risks

First to market

Use new enabling technologies

Take feedback from customers, workers, etc and extend capability

Integrate into value chain

Establish operational design

Scale up

Integrated solution with appropriate operation design to protect investment.

Business critical to customer and/or Westpac

Enterprise 2.0 tools for now and the future – Westpac 2.0 Wiring the organisation together 2 nd life connecting new recruits to Westpac – another Web 2.0 site Flattening the organisation User generated content in WestpacUTube Capturing tacit knowledge in a wiki Do it yourself I.T. - mashups User generated content on Web 2.0 internet sites eg Wikipedia

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