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The HP Changengine technology makes it possible to pull the process logic outside of the application. This allows customers to change the business logic without changing the application —— thus dramatically speeding up how rapidly they can re-engineer their business processes.We have already introduced two software solutions based on this technology.HP AdminFlow is a software product that automates internal administrative processes. Examples include IT service request automation, automation of travel and expense reporting, and human resource management automation. Sumitomo Life Insurance has used this solution to change hundreds of processes quickly, as they prepare for industry deregulation.HP SmartContact is the integration technology that manages multiple customer contact channels - such as telephony, the Internet, fax, and electronic mail. Blue Cross of California, a major health-insurance provider, has used this approach to create an integrated “virtual”call center that has greatly improved the productivity of their customer-service representatives the satisfaction of their customers. We also have plans to offer a supply-chain solution based on HP Changengine. HP imaging technology is going to play a major role in E-business —— making possible applications like electronic catalogs, remote medical diagnostics and insurance-claim processing, to name just a few.To give you a glimpse of the role imaging will play, let me describe what we're doing with Liz Claiborne, the very popular designer of women's clothing.We're working together to create a “virtual showroom”that will show the latest fashions. It will allow early viewing and on-line purchasing. This approach will provide Liz Claiborne with a new channel to reach potential buyers —— especially those in medium and small-sized firms that are reluctant to incur the expense of a trip to the designer's showrooms in New York City. With the movement of almost all information to digital form —— and the universal connectivity provided by the Internet —— information can be distributed in electronic form, to be printed locally when needed. This has tremendous appeal. For example, Boeing keeps the 100,000 pages of its repair manual on a corporate web site. Repair technicians print only the pages they need to do a particular procedure. That way Boeing can be sure that the procedures are always up-to-date. And the technicians save a lot of time finding the relevant information, because they can do an on-line search for the information they need.Here's a fascinating example of distributed printing. It suggests an interesting future for the publishing industry.The Inter-City Express is a major European commuter line for business travelers. The trains receive the news twice daily via satellite. They take that satellite feed and use it to produce their own newspaper, targeted for their particular customers. The news is printed on an HP LaserJet printer.Unlike some of our competitors, HP has built a thriving consumer business. We have many products aimed at home users and small businesses, and we've developed the supply chain efficiency and support capabilities to serve mass markets.We've also been working hard to establish a higher profile in this arena. We've recently launched a branding campaign with the theme of “expanding possibilities.”It captures the notion of how we are making entirely new things possible. Let me show some examples.I'll start at the top-left quarter of this visual and move around clockwise.First, we're making it possible for people to access or capture information —— and even money —— in entirely new ways.A PC connected to the Internet is providing people with access to a whole new world of information.Our scanners are making it possible for people to capture information that has been only in paper form, and to transform that information into digital form where it can be sent over the network.And VeriFone's personal automated teller machines enable people to pull money out of their bank accounts and translate it into the form of “stored value”on their smart cards, which they can use just like cash. Second, we're also creating entirely new possibilities for creating and manipulating information. With our home photography systems, for example, people can edit their own photographs —— perhaps deleting someone they don't want in the photograph —— and create their own family newsletters, calendars or greeting cards.Third, our network-ready PCs enable people to transmit information to friends around the world —— or to share it with people they don't even know by posting it on a Web site.And, of course, we're providing the capabilities to print and duplicate that information. In fact, our all-in-one products do more than that. They print. They scan. They copy. They send and receive information via fax.This is just what the home user or small-business requires, because they don't have room for lots of different pieces of equipment.An E-Commerce competency is becoming a critical success factor for financial institutions around the world. HP has been working closely with Chinese financial institutions for several years to pioneer best E-Commerce practices in China. Let me highlight some of HP's contributions in this area. In 1995 we began to work with the China Construction Bank to develop a fund clearing system run on HP's UNIX platform. Today, HP's servers, PCs and support services are used throughout the bank's 44 branches across the country, helping to reduce typical transaction clearance times from up to 10 days to now less than 24 hours.This month, we are launching a trial solution with the Bank of China to enable their corporate customers to perform their standard banking transactions on-line. This marks a first for China.HP's VirtualVault solution was chosen over other solutions for its superior security and reliability, as well as service support. HP, together with our VeriFone subsidiary, is continuing to work with Bank of China to build on this platform, so that by the end of the year a full range of E-Commerce services will be available on line, again marking a first for China.I will leave it to my colleague from the Bank of China who will speak to you later today to tell you more about this exciting cooperation between HP and the Bank of China.Let me say a few words about VeriFone's capabilities.They started by providing solutions in the physical world with equipment such as payment terminals. The company then moved to become an early adopter of client/server computing, developing its solution on HP 9000 servers. As the Internet has grown in robustness, VeriFone has duplicated its capabilities in the physical world with products for the “virtual” world. v.WALLET is a PC-based payment utility that is embedded in Netscape and Microsoft browsers to allow consumers to make payments using credit cards.v.POS —— which stands for Virtual Point Of Sale —— is software that sits on the merchant's server and provides the tools for accepting secure Internet credit card transactions for a virtual store. These include real-time, on-line authorization, settlement, and other payment management functions. v.GATE is Internet gateway software that resides at the financial institution, where it manages transactions from multiple merchant Web servers.Finally, integrating these three worlds, we have created the Integrated Payment System, which is an open, client/server-based platform that enables the processing of all these forms of payment. So electronic commerce is coming of age, and it's happening quickly. With the combination of HP's and VeriFone's capabilities, we are driving this change.
So this is the Electronic World HP is helping customers build.We want to help you build and manage the IT infrastructure that allows you to extend your reach into new opportunities.We want to help you move your business processes to the Net quickly —— and to use it to create entirely new ways of doing business.We want to serve the needs of people who are working at home —— and even those who want to use technology for fun.And we want to help transform commerce by making the Internet a secure and efficient way of moving money.We are working to deliver value to customers in each of these arenas. But I also think it's important that we are operating in ALL four arenas. Because with the coming of the networked world, the boundaries between these different arenas are becoming blurred, and we can help you navigate this sea of change.Beyond our strong portfolio of hardware, software and support services, HP is committed to building the Electronic World through hosting special events that raise awareness and build the capabilities of our customers, channel partners and colleagues in government and academia. HP MegaForum is one example. This year's HP MegaForum will tour six major centers in China, starting with this opening event in Shanghai. In total there will be more than 30,000 participants in HP MegaForum in 1998, taking part in seminars on a wide range of topics, product demonstrations and trade shows. To my knowledge, an IT event of this scale and comprehensiveness represents a first both for China, and for HP.China HP also hosts another important IT event each year aimed for end-users called HP Electronic World. This year, it will be held in July in Beijing and will also focus on E-Commerce. We expect to welcome more than 40 vendors, and 10,000 visitors, with over 100 seminars on the full range of issues facing the IT industry in making E-Commerce a reality in China and around the world.This year at HP Electronic World, we plan one more first for China, and that is to link via videoconference audiences in Beijing, Taipei and Hong Kong in a common forum to discuss cooperation in Building Together our Electronic World. I suspect that David Packard would have been particularly honored to speak to this Chinese audience. We are certainly honored to have the chance to be part of it.The Electronic World represents a whole new way of doing business. I urge you to embrace it and use it to make your organization more successful than it has ever been.
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