User-side Payment Settlement Libby Christie Managing Director - Industry Marketing Telstra Business Solutions - Australia 1
Telstra Corporation An Australian full service Telecommunications company Unique challenges in servicing 18M people in metro, remote areas Directories - White and Yellow Pages Smartcards - in 40,000 payphones Major player in B-B e-commerce as a buyer and supplier 3rd largest telco in the world (by profit) - US$3.2 Billion in 1998; 10th largest in world (by revenue) - US$10.9 Billion in 1998 Market capitalization: US$75 Billion 55,000 employees in over 20 countries Official sponsor of the Sydney 2000 Olympics 40,000 suppliers worldwide 2
The new data paradigm What is the Data Mode of Operation (DMO)? Created to plan the infrastructure capabilities Telstra requires for the coming five years to support Telstra s future business activities. Objectives of DMO Provide a network infrastructure that will be cost-competitive for the future data-dominated traffic mix. Provide a systems evolution strategy to enable Telstra s proces ses and systems to be customer fo cussed and cater for a highly varia ble product mix. 34
Telstra s e-commerce Journey Reach New Markets Connect with Partners Reduce Costs/ Improve Customer Service Corporate Web Access Accept payments on line e-procurement Online Ordering 2-way interaction Outlook Explorer EDI MRO Smartcard EFTPOS PKI XML OCP email Browser BillPay SureLink Internal Pilot Telstra Online Purchase Card Financial Settlement 4
Telstra Finance Trial Telstra Finance Centralised Processing, Messaging, Tracking, Payments... Telstra as a buyer Supplier A Supplier B Supplier C 5
Goods and services at Web Speed Boeing 747 customers can lose up to $40,000 per minute American businesses will expend 80% of their purchasing efforts on MRO MRO comprises 20% or less of their total purchasing expenses Complexities of business re-engineering & supply chain management Buying & selling organisations seek easy to use, open standards based solutions 6
Case Study: Telstra Manual Process B&G Initiate Request C&C Lookup Catalogue In Catalogue? Manual Fill Form (TB100) Manual In Catalogue? Stop Deligate Approve s Return to Initiator Send to Service Plus Send to ECPLAN Send to Director Send to FOS In Stock? Raise PO Input into BISTEL FOS Accepts Check data Raise picker from MAC Send to supplier Generate PO (EDI or manual FAX) Return to Initiator Stop Stop Print order Blue copy to Initiator Blocked invoice CASE STUDY Sort EDI vs. Manual Stop Invoice received Invoice has PO# Scan if hard copy Manually input into BISTEL Match PO vs. Invoice Raise credit debit GR-IR Generate payment Investigate PO PO requiremen t Sent to Delegate (TB500) Send to FOS Check data FOS Accepts Direct Invoice Raise credit liability. Debit expense Stop Goods have arrived Verify goods vs TB100. and/ or PO Do goods match? Confirm goods received Mail PO/ receipt to requestor Perform online receipting Debit expense to cost centre Exception processing Action on exception Manual payments Up to 38 Steps and 6 working days 7
Telstra s New World Class Process CASE STUDY tify initiator by E-mail of requisition status Browse Supplier Catalogue Initiate request Initiator selects stationery on Intranet Add items to shopping cart until finished Confirm/modify delivery details Submit purchase requisition to delegate Delegate authorises purchase? Send requisition to BISTEL Search Supplier Catalogue tify initiator by E-mail of requisition status Generate PO to supplier Stop Initiator or other person checks delivered goods Initiator retrieves PO data from intranet Do goods match? Initiator receipts items Archive Exception processing Transmits receipt data to BISTEL Current EDI invoicing & payment process Telstra Intranet Internet Debit expense to cost centre BISTEL e-payments Reduced to 21 Electronic Steps - same day 8
Mastercard engage Microsoft System has slashed PO time by 20% Cut cost of processing PO from $US125 to $40 Delivers valuable reporting data Deployment of cutting edge web based procurement solution 9
Commercial Service Buyer Y Telstra Telsta Finance Buyer Z Centralised Processing, Messaging, Tracking, Payments... Telstra as one of many buyers Supplier A Supplier B Supplier C 10
Telstra as a Service Provider - Open Commerce Platform Catalog Internet Supplier Web Catalog Financial In stitutio n Buy er Premise Web Browser Telstra s Open Commerce Platform Financial Settlement Supplier Premise Web Browser IEC-Enterprise Internet Integrated Online Reporting Internet WebEC Messaging Core Legacy VAN Mailbox VAN Mailbox 11
Buyer Global Commerce Facility Encryption & Authentication Supplier Telstra s Open Commerce Platform Financial Settlement Module Payment Trigger Payment Encryption & authentication Buyer Financial Institution Payment Instrument Supplier Financial Institution 12
Buyer Global Commerce Facility Encryption & Authentication Supplier ERP Internet Procurement System Telstra s Open Commerce Platform Financial Settlement Module Internet Supplier System Payment Trigger Payment Encryption & authentication Buyer Financial Institution Credit Card / Direct Entry Supplier Financial Institution 13
Key Learnings from our trial Business process re-engineering essential for success Streamline process & delegation levels Financial settlement integrated into procurement process Encryption & authentication to reduce risk & liability Supplier hosted catalogues 14
Analysis - Next steps Multiplicity! Any customer able to access any procurement or payment application Financial Settlement = Authorise, authenticate capture & settle securely The computer is becoming the network allowing interactive global messaging Open frameworks for procurement & financial settlement 15