The changing face of the workforce and the technology they expect to have at their fingertips

1. The changing face of the workforce and the technology they expect to have at their fingertips David Backley, CTO Westpac May 2008

2. Contents • Westpac – who are we • The evolution of technology and employee expectations • Examples of new and emerging tools inside the corporation • Security implications • Wrap up

3. Westpac Banking Corporation at a glance • Australia’s first bank – est. 1817 • Consistent earnings growth • One of the top 50 banks in the world by market capitalisation • Strong franchise in core markets of Australia, New Zealand and the near Pacific • 28,018 employees, 1,070 branches, 2,207 ATMs • 3.3 million online banking customers; 326,000 shareholders • A global sustainability leader • Dow Jones Sustainability Indexes 2002 – 2007 • Global 100 - 2006 & 2007 1. Moody’s upgraded Westpac’s long-term rating from Aa3 to Aa1 on 4 May 2007. 2. Market capitalisation as at 13 September 2007. Source: IRESS

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

5. Contents • Westpac – who are we • The evolution of technology and employee expectations • Examples of new and emerging tools inside the corporation • Security implications • Wrap up

6. Technology evolution over the last 30 years Today Mid 70s – Mid 80s Mid 80s – Early 90s Mid 90s 2000 Era Cybercrime Act 2001 Crimes Act 1914 Terrorism Insurance Act 2003 Criminal Code Act 1995 Anti Money Laundering & Counter Terrorism Financing Act 2006 Changing Regulatory Landscape Privacy Act 1988 Privacy Act [NPPs] 2000 Basel II Sarbanes Oxley Social networks Blackberry email services IP Telephones Flexible working hours Remote working from home Instant Messaging Own telephone Personal computer Increasing Employee Expectations Personal email address Equal rights Internet access during work hours Laptops instead of desktop PCs Limited Home Technology 1st Mobile Phones Touch tone phones introduced Affordable broadband Changing Technology Landscape Dotcom boom Dial up home internet Ubiquitous Internet @ work 1st PCs Introduced 1st use of internet outside Military /universities

7. What do employees expect from the modern corporation? • Computer savvy employees especially Gen Ys (and Gen Xs) are involved with a diverse range of technologies in their personal life which they expect to adopt as part of their working life, such as: • Instant messaging • Social networks • Collaboration tools • Aggregated news feeds • Organisations need to consider the diversity of needs then provide tools and technologies that enable efficient and effective work practices • The ‘war for talent’ also means that organisations such as Westpac need to stay ahead technologically to attract and retain individuals

8. This is the out of work on-line experience for many employees 2nd Life Saxo Bank 2nd Life Unitirin 2nd Life ABN AMRO Linked in facebook myuglyroom World of WarCraft 2nd Life Visa 2nd Life Caja Madrid 2nd Life BCV Stagecoach island crackle myspace Second Life 2nd Life Deutsche Bank flickr 2nd Life Wirecard 2nd Life Parisbas many eyes digg craigslist YouTube upcoming RBC Innovator Slashdot del.icio.us 2nd Life Credit Agricole KodakGallery yourpointofview Innovation Jam offtopic WikiCentral now what Motley Fool 2nd Life ING Prosper eBay Amazon Wikipedia SOCIAL CONNECTION ENTERTAINMENT NEWS & INFORMATION PROBLEM SOLVING TRADE EDUCATION & TRAINING

9. Contents • Westpac – who are we • The evolution of technology and employee expectation • Examples of new and emerging tools inside the corporation • Security implications • Wrap up

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

11. Corporate, informal & social networks Most large organisations have dozens if not hundreds of informal networks, in which human nature, including self-interests, leads people to share ideas and collaborate. As individuals integrate work and personal relations, it becomes increasingly difficult to keep intellectual property within company boundaries. If one’s personal and work networks are intertwined, how do you not talk about work? How do you not share ideas?

12. MySpace has over 130 million accounts, showing the way? Facebook, increasing use by Westpac employees. Over 40 groups with Westpac in the name Access at work? Value & Risk Facebook and MySpace

13. Security issues with online communities • Sophos - Facebook Research • Set up fake profile Freddi Staur (anagram of ‘ID Fraudster’) • 42% of Facebook users added him as a friend • 84% listed their full D.O.B. • 23% provided their current phone number • Several included complete resumes • One included his mother’s maiden name • BBC (Watchdog) - Facebook Security • Sent messages to 100 people as Amba Friend • 35% approved the friendship • Watchdog opened a credit card under the name of Scott Gould, one of the respondents, using information from his profile http://www.sophos.com/pressoffice/news/articles/2007/08/facebook.html

14. Second-Life

15. Comments from participants • It was fun and enjoyable. I believe this may have a great future. The only problem was the amount of times it stopped but other than that, it was great. • We have a little way to get to get Second Life working for us, but I love the idea and I can see the potential. I see it as a fantastic opportunity and support it whole heartedly! • People ask questions when they normally wouldn’t. • Multiple conversations going on concurrently made it difficult to communicate. I found that a few people tended to dominate, and certain conversations were selectively focused on while others were ignored, or not responded to. Informative session though. Thanks! • The best benefit is that everyone gets a chance to have their say. This would not happen in a class environment. • Internally this tool will be great for interstate meetings and simultaneously screening video/presentations. Great for expos too, which are often Sydney based. Expos would be available to employees everywhere

16. Contents • Westpac – who are we • The evolution of technology and employee expectation • Examples of new and emerging tools inside the corporation • Security implications • Wrap up

17. Information Security Targeted Attack – Mass Extinction Event Information Access Control BCP failure System Access Control IT Phishing Cyber crime IP Westpac’s Information Assets Network domain access License Breach Unauthorised Software Usage Trade Practices Act Unauthorised Physical access Legal, Regulatory Industry codes CLERP 9 Sarbanes Oxley S302, 404, 409 Physical Physical Theft Of Info ISO/IEC 17799 Outsourced Service Provider Control Staff screening Checks Data Protection Act AS 3806 Virus incidents USA PATRIOT Act

18. Cybercrime - threat landscape 2006 ??? 2005 Sophisticated Trojans 2004 Evolved Financial Malware 2003 Basic Financial Malware Phishing

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

20. Contents • Westpac – who are we • The evolution of technology and employee expectation • Examples of new and emerging tools inside the corporation • Security implications • Wrap up

21. Challenges and limitations for the CIO CIOs reported that a lack of current need stopped them from Web 2.0 adoption 47% of the time. CIOs were most likely to view social networking and blogs as unnecessary, with a little more than half of respondents reporting as such. The Web 2.0 technologies that had relatively clear user benefits, RSS, wikis, and tagging, were less likely to be viewed as unnecessary; although, across the board, CIOs reported that a lack of need was the biggest impediment to adoption. Even in cases where there may be a need, more pressing concerns are likely to supersede Web 2.0 adoption; 35% of the time, respondents reported that they had “a more critical problem to solve.” Source: Forrester, 2007

22. Our approach to the ever changing I.T. landscape • It 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: • Deeper customer intimacy and stronger advocacy • Core value propositions – share effort on non-core • Exploit internal and external collaboration for higher than average margin growth • Emerging technologies can stimulate innovation • Team: Sharing operational knowledge, ‘how tips’, ideas & suggestions • Process: Augment process tasks, support each other end-to-end • Community: connecting equivalent roles across organisational boundaries • Develop and share best practice, ideas & alerts, experience • Adoption is happening, but needs harnessing • Support current needs driven initiatives • Provide strategic direction and supporting guidance • Make it universally available to match explicit needs • Provide a framework for identifying and selecting the right tools • Establish clear governance: • comprehensive coverage • lightness of touch (self-serve)

23. Thanks for your time – Questions? “I am enough of an artist to draw freely upon my imagination. Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution.” - Albert Einstein