Transcript Slide 1

BT Supplier Networking Event 2007
18th June 2007
Agenda
Meryl Bushell
• Welcome
• BT in the marketplace, our results, our strategies
Claire Garrett
• Chorus - delivering the Benefits
• CSR in Procurement & Supply Chain
Meryl Bushell
• Working with our suppliers
• Close
BT Group strategy: positive results, positive trends
Revenue
EBITDA*
13th quarter of growth
5th quarter of growth
3.0%
5.0%
2.0%
4.5%
4.0%
1.0%
3.5%
3.0%
0.0%
2.5%
2.0%
-1.0%
1.5%
1.0%
-2.0%
0.5%
0.0%
4
04
/0
5
Q
2
04
/0
5
Q
3
04
/0
5
Q
4
04
/0
5
Q
1
05
/0
6
Q
2
05
/0
6
Q
3
05
/0
6
Q
4
05
/0
6
Q
1
06
/0
7
Q
2
06
/0
7
Q
3
06
/0
7
Q
4
06
/0
7
4
1
03
/0
4
Q
Q
03
/0
03
/0
3
Q
03
/0
4
2
1
Q
(1.5%)
Q
(1.0%)
4
-3.0%
(0.5%)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
EPS*
Dividends
20th quarter of growth
6.5
16
14
12
5.5
10
8
4.5
6
4
3.5
2
0
2.5
Q1
Q2
Q3
* Before specific items and leavers
Q4
2001/2
2002/3
2003/4
2004/5
2005/6
2006/7
Global Growth
“Revenues in USA, Japan, China and India
will more than double by 2009” Andy Green Sept 2006
USA
India
INS
i2i
Adding over 600 billable consultants
skilled in delivering solutions that are
centred on repeatability
Customers include over 80% of the
ITES/BPO market, as well as attracting
numerous global and Indian
multinationals in other sectors
Serving half of Fortune 1000
Presence in over 30 locations
across the United States
Presence across all major Indian
commercial centres
Now the leading Global carrier in India
Revenue $140m
Revenue $20m
From traditional telco…
Keys to
our evolution
Real time
Global
Open
… to leading services provider with global capabilities
The transformation agenda
BT’s transformation is driven by three objectives:
1. Bringing strategic strength to the
business through our global 21CN
platform
2. Becoming number 1 for customer
service by March 2009
3. Simplifying and speeding up the
way we work
We need to keep ahead of the game
Our previous operating model was sequential with
few customer checkpoints
Operate
Platform
Market
Requirement
Product
Design
Network
Design &
Build
IT
Design &
Build
Process
Design
Serve
Customer
…This required a new operating model
New pan-BT operating model
Define and
manage customer
experience
Optimise
design and
platform build
E2E
Drive services
and operating
efficiency
Consume and build common capabilities
Organise
New BT structure
Customers
BT
Group
Ben
Verwaayen
CEO
•OC
•Design
Council
BT
Retail
BT Global
Services
BT
Wholesale
Openreach
Ian Livingston
CEO
François Barrault
CEO
Paul Reynolds
CEO
Steve Robertson
CEO
Andy Green, CEO Group Strategy and Operations
BT Design
BT Operate
Processes and information flows continue to be managed in line with our legal, regulatory and Undertakings obligations
Openreach structure remains unchanged. Wholesale regulated products will remain in the Wholesale LoB
Day 1 (July 1) structural changes
Minimise change at
the customer front-end
Technical design
& development
BT
Design
~6,900
people
Technical design
& development
Network design
& development
Retail
(140)
Global Services
(3600)
Wholesale
(9060)
Network operations
BT
Operate
~13,000
people
Network operations
(+3,600
contractors)
(+ ~16,800
contractors)
IT development
One IT
(7060)
Note: Best current view, subject to change as detailed design is finalised
IT operations
What is happening and when
Day 1
Day 2
Day 3
1 July - 07
New management structure
1 Oct - 07
New trading model
1 April - 09
‘#1 for service’
Plan
March 07 - June 07
Transition
July 07 – Oct 07
Transform
Oct 07 –
BT Procurement: Strategic Priorities
Capability Transformation
Emerging Country Sourcing
Global Domain Leadership
Procurement Right-shoring
Chorus – delivering the benefits
Key Stakeholder Relationship Management
Supplier Management
Chorus -Delivering the Benefits
Claire Garrett
What is the Chorus Programme and
why do it?
Our business challenges
•
•
•
•
•
The ability to become more agile
Constant internal business change
Support global contract wins
To have an end to end view of BT’s performance
To have an holistic view of supplier spend
Chorus- A Programme of Transformation
Oracle 11.5.10 e Business Suite
Policies/Processes
Training/Communications
Behaviour
Scope
In Scope

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



Accounting & Consolidation
Procure to Pay
Projects billing, Costing and
Management
Expenses
Time Management & Costing
Inter-company & Intra-company
Sales Ledger
Financial & Management
Reporting
Interface




Payroll
Inventory
Planning & Budgeting
Human Resources
Programme is 3 years in duration with a focus on quarterly deliveries
Chorus- The Benefits
The Stakeholders
• Buyers
• End Users
• Suppliers
Buyers- ‘Efficiency & Effectiveness’
• World class Buyer Tools
• Visibility of Spend & Commitment Globally
• Control of Supplier commitment & end-user
behaviour
• Focus on Strategic Sourcing
End Users- ‘Doing the right thing’…
• Common Platform & Process globally
• Access to Global, Regional & Local suppliers
through the same platform
• Surety that their procurement actions are in line with
Group Procurement Contracts & Governance
Suppliers- ‘Removing Barriers to Trade’
• Single web based platform for all Sourcing activitiesby March 2008
• Order Channel rationalisation
• Web based or electronic interface options for Orders
• Common invoice process and electronic interface
options for invoice submission
• Self service information tools
The Next Steps
• Early Adopters for Sourcing Events- 1st May-31st July
07
• Initial Communications live on www.selling2bt.bt.com
during July 07:-
– How to access the application
– How to access the BT Sourcing activity
– How to input your response
• Go live with new mandatory process for Buyers in the
UK to use the PDC team (who will be using the
Oracle Sourcing application)- 1st August 07
• Further information to follow on Ordering and
Invoicing changes (Domain by Domain)
Further Sources of Information
www.selling2bt.bt.com
Climate Change and
Purchasing Principles
Claire Garrett
Climate Change
Mapping the Road to our Vision (possible actions)
“harness communications to tackle climate change”
Key
Now
Phase 1
Phase 2
Phase 3
Phase 4
Consolidating our Green
Credentials
Making BT immune from
extreme weather
Incentives for customers
who reduce footprint
Introduce Bio
Fuels and Hybrids
Green Contract
Globally
Implement
Procurement Policies
Transforming our
business
New build data
centres have DC
power
Maximising on new
market opportunities
Incentives for suppliers who
reduce footprint through their
value chain
Set energy & cost
targets on 21CCE
Launch C3
Practice
Employee
engagement
use CC message to reduce
consumption of consumables
Salary Sacrifice for
employee offsets
Supply & Market low
All products have
Majority of employees opt
energy hardware
energy efficient targets
Build energy
Internal Carbon low carbon cars
security
Trading scheme
Data centres
launched
Energy savings in
Audit
Discounted rates to
Smart Travel
delivering customer
Low carbon ‘green’
employees who switch to
Programme
service
consumer package
same energy supplier as
Review CC Reduce heating by 2% yr on yr
BT
Roadmap for
Risk
Pension Scheme
21CN – reduction in ISO 14001
Develops SRI Strategy
Green Contract
energy
agreed
Using the Brand and CC
Fleet Trial
credentials to open up new
Launch tools & Employee
70% Employees
market opportunities
CO2 calculator Package
join big switch off
Review hire cars
Now - End 2007
2008 - 2009
2009 - 2010
Mapping the Road to our Vision (possible actions)
“harness communications to tackle climate change”
Key
Phase 4
Consolidating our Green
Credentials
Transforming our
business
Now
Phase 1
Phase 2
Phase 3
Maximising on new
market opportunities
Incentives for suppliers who
reduce footprint through their
value chain
Employee
engagement
Implement
Procurement Policies
All products have
energy efficient targets
Smart Travel
Programme
Green Contract
Review hire cars
Now - End 2007
2008 - 2009
2009 - 2010
Procurement Principles
1. We will harness the capability, diversity and innovation of our
supply base to add value to our business and encourage
suppliers to offer solutions which have a reduced
environmental impact.
2. That the energy consumption and environmental impact of a
product or service (from manufacture, through usage, to
disposal) is a mandatory criterion in all tender adjudication.
3. That the energy consumption and environmental impact of
any replacement product or service (from manufacture,
through usage, to disposal) is less than its predecessor.
We will ensure that our suppliers meet appropriate targets on
energy consumption and environmental impact.
BT’s Climate Change Vision
To harness communications to reduce climate change
Close
Meryl Bushell
Focus on customers
• Lead-to-cash
• Concept-to-market
• Trouble-to-resolve
What we need from you
•
•
•
•
Savings
Commercial Flexibility
Agility
Innovation
Innovation awards
• To stimulate and celebrate
innovation in our suppliers.
• To encourage innovation that
benefits BT, our customers and the
wider community.
• To raise awareness of innovative
activities in the supply base across
Procurement and wider BT.
• The Award will recognise the most
innovative suppliers for new ideas
or innovative projects in progress.