User-side Payment Settlement

User-side Payment Settlement

Libby Christie

Managing Director - Industry Marketing

Telstra Corporation

An Australian full service Telecommunications company

l Unique challenges in servicing 18M people in metro, remote areas l Directories - White and Yellow Pages

l Smartcards - in 40,000 payphones

l 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

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.

Corporate Web Access

Internal Pilot Telstra Online Accept payments on line 2-way interaction e-procurement BillPay SureLink Online Ordering Reduce Costs/ Improve Customer Service Connect with Partners Reach New Markets email Browser Purchase Card Financial Settlement

Telstra’s e-commerce Journey

EDI MRO Smartcard EFTPOS PKI XML OCP Outlook Explorer

Supplier A Supplier B Supplier C Telstra Finance

Centralised Processing, Messaging, Tracking,

Payments...

Telstra Finance Trial

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

Case Study: Telstra Manual Process

Initiate Request Lookup Catalogue Fill Form (TB100) Deligate Approve s Stop Send to Service Plus Send to Director Send to ECPLAN Send to FOS Check data FOS Accepts Return to Initiator Input into BISTEL Yes Yes No Return to Initiator No Generate PO (EDI or manual FAX)

Print order Blue copy to Initiator Sort EDI vs. Manual Stop Goods have arrived Verify goods vs TB100 . and/ or PO Do goods match? Exception processing No Confirm goods received Yes Mail PO/ receipt to requestor Perform online receipting Debit expense to cost centre Invoice received Invoice has PO# PO requiremen t Yes No No Scan if hard copy Manually input into BISTEL Investigate PO Yes Blocked invoice Match PO vs. Invoice Raise credit debit GR-IR Generate payment Yes Stop B&G In Catalogue? In Stock? Raise PO No Raise picker from MAC Send to supplier Stop Stop C&C In Catalogue? Sent to Delegate (TB500) Send to FOS Check data FOS Accepts No Yes No Yes Raise credit liability. Debit expense Direct Invoice Yes No Manual No Manual Yes

CASE STUDY

Telstra’s New World Class Process

Initiator selects stationery on Intranet Browse Supplier Catalogue Search Supplier Catalogue Add items to shopping cart until

finished Confirm/modify delivery details Submit purchase requisition to delegate Delegate authorises purchase? Generate PO to supplier Initiator or other person checks delivered goods Initiator retrieves PO data from intranet Do goods

match? Initiator receiptsitems Archive

Exception processing No Yes Telstra Intranet Internet Yes Notify initiator by E-mail of requisition status No Notify initiator by E-mail of requisition status Send requisition to BISTEL Stop Transmits receipt data to BISTEL Current EDI invoicing & payment process Debit expense to cost centre

Initiate request Yes

BISTEL

e-payments

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

Buyer Y Buyer Z

Supplier A Supplier B Supplier C

Telsta Centralised Processing, Messaging, Tracking, Payments...

Commercial Service

Telstra as one of many buyers Telstra Finance

Telstra as a Service Provider - Open Commerce Platform

Catalog

S upplier Web Cat alog

Messaging Financial Settlement Integrated Online Reporting Supplie r Premise WebEC Web Browser Buy er Premise IEC-Enterprise Web Browser Internet Tels tra ’s Open Comme rce

Platform

Internet

Financial In stitutio n

Buyer

_Supplier

Global

Payment Buyer Financial Supplier Financial Telstra’s

Open Commerce Platform

Financial Settlement Module Commerce Facility

Encryption & Authentication

Payment Trigger Payment Encryption

ERP Internet Supplier System

Buyer

_Supplier

Global

Internet Procurement System Telstra’s

Open Commerce Platform

Financial Settlement Module

Payment Trigger Payment Encryption

& authentication

Commerce Facility

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

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