RFP for Structured Cabling MACDs EMEA Process details Jan 2010 Bart van der Kroef Duncan Davies

1. RFP for Structured Cabling MACDsEMEAProcess details Jan 2010Bart van der KroefDuncan Davies

2. Agenda • Why we are doing this • Processes for handling requests • The incident process • Questions

3. Rationale to resultinto • Complexity • 75+ vendors/installers • 20+ cabling standards • Disappearing cabling expertise • Lacking documentation • Lacking change control • Individual quotes, no price check • No SLA • Hidden management overhead costs • Limited quality check • Limited warranty application • Managed Service Solution • 1 vendor managing only Certified Cabling Installers • Based on 2 J&J cabling standards • Fixed material + labour cost • For all J&J EMEA locations • For all building types (low/high bay + clean rooms) • Clear work orders and change control • Clear SLA + penalties • Ensured quality • Ensured warranty • Documentation for Audit and Inspections • Aligned with NA Cabling vendor

4. Example quotes • Neuss(2009) • 10 new connections @ €7101,96 • Equal to € 710,20 per MACD • Schaffhaussen (2009) • 1 new connections @ CHF 1626,30 • Equal to € 1098,55 per MACD • Gargrave (2008) • 100 new connections @ €40.000,00 • Equal to € 400,00 per MACD • Courcelles (2007) • 50 new connections @ €38046,30 • Equal to € 760,93 per MACD 4

5. Processes for cabling in EMEA • Starting points • Data/voice cabling is part of network/voice infrastructure • Use current processes for requesting and incident handling • Request process types • Service request in ITSM - For up to 10 additional cabling MACDs. Horizontal cabling only. Urgency (Critical, High, Medium, Low) determines SLA level • Request for Service via Global Account Manager (formerly BRM) • RFS number assigned - Request is within GNO scope and standard solution. • Project ID and PM assigned - When cabling request is part of larger project and/or non-standard solutions • Incident management process – standard within IT Shared Services • Urgency (Critical, High, Medium, Low) determines SLA level • Note: MACD = Move, Add, Change, Delete

6. Processes for cabling in EMEA

7. Beacon ticket handling Incident – final process Since it is existing infrastructure Beacon has all documentation Beacon will contact local certified cabling installer to fix the incident according to SLA Progress can be monitored in ITSM (plaza.jnj.com) Beacon will use ITSM to feedback and close ticket Note: until documentation phase is finished, Beacon will call the end-user to verify the cabling and work with the local installer to get the routing of the cabling clear Request Beacon will call requester to determine exact outlet position(s) For Ariba countries Beacon will create Purchase Request based on standard order item After approval by J&J Beacon will create work order for local certified cabling installer to implement the request according to SLA Beacon will use ITSM to feedback and close ticket Note: for non-Ariba countries please have current person issuing the PR contact GNO FOM

8. Documentation hierarchy

9. Documentation hierarchy in Patch Manager

10. Outlet location in Patch Manager

11. Request for Service via Global Account Manager Request for Service GAM will collect requirements GNO Field Operations Manager will create a Technical Assessment form An RFS or project ID will be assigned and request will be routed according to current processes After receipt, Beacon will call requester to determine exact outlet position(s) A delivery date will be confirmed between Beacon and the requester In Ariba countries Beacon will create Purchase Request based on standard order item After approval Beacon will create work order for local certified cabling installer to implement the request according to the agreed delivery date Note: for non-Ariba countries please have current person issuing the PR contact GNO FOM

12. Purchase request in Ariba

13. We need your help during implementation Communication Please communicate to your sites how/where to issue requests and incidents Help to remove current cabling vendor from ordering system For non-Ariba countries Please inform the GNO FOM (Duncan and Bart) of the current person issuing the Purchase Requests 2009 Cabling expenditure If you have not done so already: please inform the GNO FOM (Duncan and Bart) of the former cabling companies details and expenditure

14. Patching No decision made yet

15. Implementation status update • Initiation(2 November 2009 – 22 December 2009) Completed except for some small sites (finalized 18 January 2010) • Managed Services (18 January 2010 - ) • Service request intake, transaction verification and consolidation • Requirements assessment and definition • Contractor management • Work and maintenance performed records • Documentation & drawings maintenance • Work performed inspections • Consulting and small project Engineering & Design • Multi-lingual Central Service Desk • In-region, industry certified engineers to proactively execute, provide insight and make recommendations • Documentation and Assessment (2 January 2010 – May 2011) • Beacon SPOC for ITSM and RFS intake (18 January 2010 - )

16. Beacon Service providers List of current Beacon service providers per country Ireland: Acess Data Solutions Inc Suir Engineering United Kingdom: Extreme Business Solutions LTD Arthur-McKay Hunter Communications RA Communications Switzerland: ElektroSchmid & Partner HufschmidAG BurkhalterTechnics AG Netherlands: LomansgroepTotaalinstallateurs Belgium: Siegers Second vendor negotiated with France, Germany, Spain Currently working with local contractors to secure agreements, with a target completion date of February 1, 2010.

17. Questions ? • THANK YOU !

18. BACK UP

19. The solution • One price per drop for new installation of structured cabling (MACDs) • Installation cost fixed for Cat 5E and 6a (incl. cable, jacks, face plates, patch panels and labour) • Independent of: • Building type: office (low bay), warehouse (high bay) or lab/manufacturing (clean room) • Country or site • Cabling technology – both Siemon and R&M • Volume • Additional equipment to be quoted separately • Initiation at all EMEA sites • Visit Platinum, Gold and Silver sites, conference call to Bronze and Base sites • Acquire current documentation (with building drawings), contact info, current cabling vendor, etc. • Beacon personnel trained on JJ Standards, JJ ITSM7 requirements, JJ RFS processes • Beacon Engineers having on-site site awareness and photos • Beacon Central Service Desk prepared with facility, access and contact information • Beacon Field resources qualified, equipped and trained to deliver services on-site • Initiation costs @ €291,000 are paid by GNO

20. The solution (continued) • Documentation – G8 in first year, rest of EMEA in second year • Labeling of all structured cabling, incl. fibers • Drawings and database for horizontal and vertical cabling, cable conduits/raceways • Data room and cabinet drawings • Database for cable measurements, with direct link to cabling/patching database • UPS info • Patching database for every site • Initial load of the patching database • Remediation plan and budget, including non-IT facilities, i.e. power, HVAC, … • Management from 01JAN10 onwards • Local Certified Installer management including access to sites (training, badges, etc.) • Break/fix support according to SLA • Multi-lingual helpdesk • Small project quotes within 40 business hours • Yearly survey • No separate fee for Documentation and Management, as they are paid through new installs

21. Service Level Agreement • Critical: 4 hours - The Certified Installer technician will be on-site within four (4) hours to begin service restoration such as: Fiber Cut, Copper Cable Cut, Demarcation Cabling Problem for critical Telecom Circuits. • High: 8 business hours - The Certified Installer technician will be on-site within eight (8) business hours for Installation of horizontal cabling (less than 10 faceplates). • Medium: 24 business hours - The Certified Installer technician will be on-site within twenty four (24) business hours for routine work for additions, moves, changes and deletions. • Low: 72 business hours - As required - The Certified Installer technician will be on-site. • Service Level Objectives • Fiber cut inside buildings, up to 6 pair, MTTR < 6 hours. • Fiber cut outside buildings, up to 6 pair, MTTR < 24 hours. • Voice cable cut inside buildings, up to 100 pair, MTTR < 10 hours. • Voice cable cut outside buildings, up to 100 pair, MTTR < 24 hours. • Replacement of 1 double office link RJ45 < 24 hours.

22. Pricing including documentation and management Current quotes generally are excluding documentation and management Beacon fixed price offering 1stand 2nd year 3rdyear €365.66 / € 355.52 €301.48

23. Patching • Background • Patching is executed in NA by GNO (Verizon) through port (de)activation • Patching is executed in EMEA by GSS through data closet patching • Result: price agreement • Next step • IT leadership to decide on process and accountability

24. Business Case – Savings Savings • € 2.6 million annually • Based on average spend/quotes • Compared to new pricing This solution is obligatory • Resolving QCWW audit • Allowing these savings to be achieved • Achieving full documentation and management • Message from IT Leadership will be issued shortly

25. Work Order Process + Ordering • Through normal J&J processes and ITSM • Incident handling • Service Request tickets to initiate requests • eBonding with Beacon ticketing system to be delivered • Projects and requests combined with other technologies • Issued via an Request For Service • Ordering via Ariba • Through standard order items • Also for non-Ariba sites • Currently each OpCo separately • Need to ensure ordering to other vendors is not possible • Separate action for Finance to retrieve cabling budgets • Then ordering through blanket POs per hosting companies when budget is transferred • Not in scope of implementation project

26. The Foundation - Initiation • Initiation Schedule • Sent Separately • Initiation Tasks – Requires an Escort • Stakeholder Introduction • IMAC Program Overview • Processes & Procedures • Q & A • Information Gathering • Site Access Requirements • Site Access Training • Current Processes & Requirements • Facility Walkthrough • Obtain an available Floor Plan • Visit and Photo (where permissible) every Telecom Room • Generally observe the Building and Cable Infrastructure

27. Asked questions • Will a call with Beacon be required for each patch cable? • Answer: that is to be determined by IT(S) leadership (see slide 9) • Will Beacon’s database hold switch configuration information? • Answer: No, beacon will document only the physical layer of the network (layer 1). Verizon is responsible for the switch configuration information. • Is non-standard cabling in Beacon’s responsibility (e.g. alarming)? • Answer: If it is (RJ45) data cabling based, yes it is. • What process do we follow for cabling requests between now and year-end? • Answer: Current planning is that all sites that were competed within the Initiation step can order as of 16NOV09 with Beacon. The schedule for initiation will be sent separately.

28. Asked questions (2) • Typically Facilities does cabling in large manufacturing sites. How will that work within the new process – will ITS take full ownership or still be managed by Facilities? • Answer: Facilities can issue requests as described on slide 11. Detail process descriptions will be communicated soon. • Is there guidance on when to use an ITSM ticket and when to use an RFS? • Answer: Service Requests can contain up to 10 individual links • Will the number of cables per desk change (currently 3)? • Answer: The current standard is 3 cables per workspace. This may drop over time because of IPT implementations, but will be decided in later updates of the cabling standard. • Will a requirement of >3 points per desk need any type of exception process? • Answer: No, the standard only includes a minimum number of connections.

29. Asked questions (3) • Do we need to create an RFS for one new outlet? • Answer: No, as Service Request via ITSM will be sufficient (see slide 11). • Will the documentation be available to other business partners? • Answer: Yes, it will be available via the GNO SharePoint, allowing efficiencies to all involved. • Does this include GxP environments? • Answer: Yes, clean rooms are explicitly included (see slide 5). • Is telephony cabling included? • Answer: Yes, as telephony today also uses Cat 5E/Cat 6a cabling.

30. QCWW Observation • Observation (since 5/8/2006) • Lacking wiring and patch panel diagrams for every site globally • Lacking change controls 30

31. 1 MANAGED Solution Value Proposition Delivery of Services SLA Technology Certification Universal HW installation Connectivity Validation Warranty Compliance Monitor & Control Unified approach Maximize JNJ’s Position Price & Terms -Conditions Uniform cost per item/service Leveraging US Contract Negotiation Power Maintain (ongoing) Documentation Regulatory Compliance Change Control Process Archiving Accessibility of Data • Tracking • of Resources • Spend Analysis • Cost per • Material • Execution • Supervision • Overhead Consolidate & Simplify Sourcing by core-competence Cost models & Cost Reduction Technologies Vendor Rationalization • Centralize & Standardize • Verizon Roll Out • Maintain & Manage Enterprise Individuality: • Technology to 2 • Culture & Language • Geography & location • -Borders& local Taxes 38 Countries - 183 Locations - 60000 Seats – 180000 outlets … and growing Process Improvement Best Practices Transferability Governance Incorporate LATAM View $ Benefits Maximum Productivity Minimize Expense

32. Initiation Program details • Initiation Program Deliverables • Documented processes and procedures • Prepared roll-out plan with timelines, milestones, roles and responsibilities • Site information package content and key site contact information • Initiation Program Execution • Beacon communicates program objectives, processes & procedures on a local level • Pertinent site contact, practices and facility information • Pertinent Beacon personnel contact information • Status of site documentation • Establish monthly workload requirements • Local preferred contractors currently being utilized • Initiation Program Results • Initiated individual relationships with the sites • Compiled all gathered information into a centralized database • Established the service intake and delivery processes at site level • Identified key contacts for each location to ensure service delivery within agreed SLA • Established knowledge base for economical and effective ongoing support

33. Managed Service details • Objectives • Structured, single point of contact, means to fulfill daily service requests • Pool of resources to support planning, projects and special needs • Focus on progressing cost reductions, quality and program improvements • Beacon Managed Services include • Service request intake, transaction verification and consolidation • Requirements assessment and definition • Contractor management • Work and maintenance performed records • Documentation & drawings maintenance • Work performed inspections • Consulting and small project Engineering & Design • Multi-lingual Central Service Desk • In-region, industry certified engineers to proactively execute, provide insight and make recommendations