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BT Supplier Networking Event 2007 18 th June 2007.

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Presentation on theme: "BT Supplier Networking Event 2007 18 th June 2007."— Presentation transcript:

1 BT Supplier Networking Event th June 2007

2 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

3 BT Group strategy: positive results, positive trends EPS* RevenueEBITDA* Dividends * Before specific items and leavers 13th quarter of growth5th quarter of growth 20th quarter of growth

4 Global Growth India Customers include over 80% of the ITES/BPO market, as well as attracting numerous global and Indian multinationals in other sectors Presence across all major Indian commercial centres Now the leading Global carrier in India Revenue $20m USA Adding over 600 billable consultants skilled in delivering solutions that are centred on repeatability Serving half of Fortune 1000 Presence in over 30 locations across the United States Revenue $140m “Revenues in USA, Japan, China and India will more than double by 2009” Andy Green Sept 2006 i2iINS

5 From traditional telco… … to leading services provider with global capabilities Real time Open Global Keys to our evolution

6 The transformation agenda 1.Bringing strategic strength to the business through our global 21CN platform 2.Becoming number 1 for customer service by March Simplifying and speeding up the way we work BT’s transformation is driven by three objectives:

7 We need to keep ahead of the game Market Requirement Product Design Network Design & Build IT Design & Build Process Design Operate Platform Serve Customer Our previous operating model was sequential with few customer checkpoints …This required a new operating model

8 New pan-BT operating model Consume and build common capabilities Optimise design and platform build Drive services and operating efficiency Define and manage customer experience E2E

9 New BT structure Customers BT Retail Ian Livingston CEO BT Global Services François Barrault CEO BT Wholesale Paul Reynolds CEO BT Group Ben Verwaayen CEO OC Design Council Openreach Steve Robertson CEO BT Design Andy Green, CEO Group Strategy and Operations 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 Organise

10 IT development Network design & development Technical design & development Day 1 (July 1) structural changes Minimise change at the customer front-end IT operations Network operations Note: Best current view, subject to change as detailed design is finalised BT Design ~6,900 people (+ ~16,800 contractors) BT Operate ~13,000 people (+3,600 contractors) Retail (140) Global Services (3600) Wholesale (9060) One IT (7060)

11 What is happening and when Day 1Day 2 1 July - 07 New management structure Plan March 07 - June 07 Transition July 07 – Oct 07 Transform Oct 07 – 1 Oct - 07 New trading model Day 3 1 April - 09 ‘#1 for service’

12 Capability Transformation Emerging Country Sourcing Global Domain Leadership Chorus – delivering the benefits Key Stakeholder Relationship Management Supplier Management Procurement Right-shoring BT Procurement: Strategic Priorities

13 Chorus -Delivering the Benefits Claire Garrett

14 What is the Chorus Programme and why do it?

15 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

16 Chorus- A Programme of Transformation Oracle e Business Suite Training/Communications Policies/Processes Behaviour

17 Scope In Scope  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

18 Chorus- The Benefits

19 The Stakeholders Buyers End Users Suppliers

20 Buyers- ‘Efficiency & Effectiveness’ World class Buyer Tools Visibility of Spend & Commitment Globally Control of Supplier commitment & end-user behaviour Focus on Strategic Sourcing

21 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

22 Suppliers- ‘Removing Barriers to Trade’ Single web based platform for all Sourcing activities- by 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

23 The Next Steps Early Adopters for Sourcing Events- 1 st May-31 st July 07 Initial Communications live on during July 07:-www.selling2bt.bt.com –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)- 1 st August 07 Further information to follow on Ordering and Invoicing changes (Domain by Domain)

24 Further Sources of Information

25 Claire Garrett Climate Change and Purchasing Principles

26 Climate Change

27 Phase 1 Phase 2 Phase 3 Phase 4 Now Transforming our business Maximising on new market opportunities Green Contract Fleet Trial Review hire cars Data centres Audit Smart Travel Programme Reduce heating by 2% yr on yr 21CN – reduction in energy Employee Package Build energy security Energy savings in delivering customer service Implement Procurement Policies Supply & Market low energy hardware Salary Sacrifice for employee offsets Launch tools & CO2 calculator Introduce Bio Fuels and Hybrids Green Contract Globally Set energy & cost targets on 21CCE All products have energy efficient targets Internal Carbon Trading scheme launched Pension Scheme Develops SRI Strategy Making BT immune from extreme weather Incentives for customers who reduce footprint Incentives for suppliers who reduce footprint through their value chain use CC message to reduce consumption of consumables Majority of employees opt low carbon cars Discounted rates to employees who switch to same energy supplier as BT 70% Employees join big switch off Using the Brand and CC credentials to open up new market opportunities Consolidating our Green Credentials Key Launch C3 Practice Employee engagement New build data centres have DC power Roadmap for ISO agreed Now - End Review CC Risk Low carbon ‘green’ consumer package Mapping the Road to our Vision (possible actions) “ harness communications to tackle climate change”

28 Phase 1 Phase 2 Phase 3 Phase 4 Now Transforming our business Maximising on new market opportunities Green Contract Review hire cars Smart Travel Programme Implement Procurement Policies All products have energy efficient targets Incentives for suppliers who reduce footprint through their value chain Mapping the Road to our Vision (possible actions) “ harness communications to tackle climate change” Consolidating our Green Credentials Key Employee engagement Now - End

29 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.

30 BT’s Climate Change Vision To harness communications to reduce climate change

31 Meryl Bushell Close

32 Focus on customers Lead-to-cash Concept-to-market Trouble-to-resolve

33 What we need from you Savings Commercial Flexibility Agility Innovation

34 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.

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