How do support initiatives save costs on capital projects?

1. How do support initiativessave costs on capital projects?

2. Market news • Mega million $$ of outsourcing • $50M and above size • Complete IT outsourcing • Outsourcing to save costs • And to cut jobs….. • Frustration on support levels • Communication • SLA s • Understanding of customer business

3. What we believe? The best Companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists --- not to save money by firing more people ……….Thomas L. Friedman in his book….The World Is Flat

4. Low return on IT investment Value for investment Money spent on Lethargic IT Projects tech support Disruptive upgrades Users Complain About Key Support Criteria “ Please call back once our system is working again ” out to lunch

5. The big picture Implementations Migrations Capital Projects Custom Development Upgrades Sierra Atlantic Product Vendor Support Network Customer Support Network Customer Specific Service Model • One Shoe fits all • Large Install base • Cost pressures • Limited Staff • Skill sets • Knowledge gaps • User priorities • Scalability Project surge requirements Fixed Capacity Variable capacity Transformed Customer Service Increase bandwidth Of Client resources AMS Requirement analysis Client COE

6. Shared Services No Knowledge retention Resource replacement model Limited or no SLA s Only cost savings basis Will not accommodate project needs Customer specific resource modeling Customer COE Increase bandwidthmodel Extensive SLA s Growth & create budget for new initiatives Planned across annual project needs Contrast Traditional Support AMS

7. Critical to Planning • Intensity of capital projects need to reduced • Increased load of testing • Increased # of issues • Change Orders to manage load • Every project need • Very specialized skills • Trouble shooting skills • Routine tasks • Unforeseen dependencies • Support Networks • Internal support • Product vendor • Service provider’s support

8. Impact analysis Customizations Reports Application patching Practice runs Sandbox environment Testing & QA Functional CRP s DBA assistance Production cutover Get documentation Analyze Custom objects Migrate & test Remote assistance Simulated runs & VPN Optional VPN & remote On-site Remote assistance On-site Example - Upgrade benefits Typical Upgrade tasks Leverage Support (AMS) Over 40% savings on Upgrade budget

9. Case Study #1 A world leader in unified storage solutions

10. TIBCO Agile Oracle SAP Siebel Custom Apps Case Study Key Value • Eng Relationships • Integration IP • Process Optimization • Global Delivery • Track Record Optimized Application Support • 3 years of relationship • 1000 bugs fixed • 20 projects executed • 100% customer satisfaction

11. Technical Team Delivery model Offshore Delivery Manager DBA Team Functional Team Sierra Atlantic Onsite Delivery Manager Network Appliances IT team QA Team Business Users

12. AMS Services SLAs Value Proposition • Improve SLAs response successively to accommodate more temporary service requests • ‘Early Support Task’ management approach to optimize support of subsequent go-live projects • Pro-active value proposition for new enhancements / modules leveraging offshore support • Overall scope & SLAs seen from long term (2 yr) perspective – accommodate project crests & troughs

13. Sl. No. Satisfaction Criteria Rating (1 – 5)** Comments 1. Knowledge / Skills (How would you rate the knowledge and skills of our teams deployed on the project) 5 Knowledge and depth of team seems well balanced. 2. Responsiveness (How responsive were our teams to the project’s needs or your team’s requests) 5 Have delivered on time. 3. Quality (How would you rate the quality of service provided or product delivered) 5 Users have been very satisfied with the quality of work returned. 4. Delivery effectiveness (How effective were our project execution & management in meeting the project’s stated goals) 5 5. Process Transparency (Was there adequate and regular visibility provided to you of project progress & issues, if any. How effective was this visibility) 5 6. Productivity (Please rate the productivity of our team deployed on the project) 5 Amount of work completed has exceeded expectations. 7. Value for money 5 Very Good. Customer Feedback

14. Case Study #2 A leading global supplier of unsaturated resins

15. Project Successes • Indiana plant went live on January 11 • The responsiveness, dedication, and commitment of SA resources from Developers up through management has been outstanding • The technical competence of the team was clear • The relationship grew during the 15 month project …. VP & CIO – Client

16. Strategic Partnerships Optimal Participation Range Short Term Relationship Range Major Projects Small Project / Support Activities IT Department Outsourcing Degree of Customer Intimacy

17. IT Customer Responsive, quality service Offered “best resources and rates” Preferential treatment Access to new technology and ideas Accurate billings Help in emergencies IT Provider Treated fairly; respect Paid “on-time” Loyalty in the face of short term problems First shot at new business Forecasting of needs Strategic Partnership

18. Sierra Atlantic at a Glance • 900+ employees worldwide • Silicon Valley management team • Global reach North America: Fremont-CA, Chicago, Toronto, Atlanta, Dallas, Boston Europe: London, Paris Global Development Center: Hyderabad, India APAC: Singapore, Kuala Lumpur EMEA: Dubai Our Promise: 100% Customer Satisfaction

19. OAUG SIG Sierra Atlantic Discrete-OPM/ Financials/ Apps Knowledge Repository Development Relationship with Oracle Unique advantage Customer FDA Regulated Industries Paints & Chemicals Oracle Metalink Support AMS Customer Knowledge base Building Discrete Products & Hi-tech

20. Our Oracle Partnership • Global SI Partner (US, Asia Pacific, Middle East, Europe) • Oracle Engineering Relationship • OPM Migration from GEMMS • SAP-OIP Integration • APS Product Development • Many Others • OPM Help Desk Support Partner • Preferred Oracle Integration Partner • Preferred Oracle Migration Factory Partner • Oracle Portal Partner • Oracle Resource Services Partner

21. Sierra Value Proposition • Dependable • Deep engineering relationships with product vendors • Large talent pool and expertise • Similar engagement experience • 24x7 support • Driven by Quality, SLAs and Productivity • Flexible • Right size partner • Work towards long term partnership • Highly scalable model • Affordable • Low cost structure • Optimal onshore – offshore team ratio

22. Application Maintenance and Support (AMS)

23. Key Activities Key Deliverables Application Support Framework Continuous Improvement Planning Transition Steady State • Productivity Improvements • Instance & Infrastructure Consolidation • Process Consolidation • Call Based Support • Resource Consolidation • Knowledge transition • Knowledge Acquisition • Parallel Perform • Steady State Transaction • Validation of our Proposed Engagement Plan. • Review existing SLA’s • Identify all in-scope projects • SOW • Application Specific Transition Plan • System Maintenance & Technical Document (SMTD) • Execution Process Document (EPD) • Finalize new SLA’s • Weekly – Metrics Reports • Steady State MIS, Status Reports • Tested Code/ Application • Project Status Reports • Continuous Improvement Plan • Quarterly Review Process

24. Transition Planning Inputs Steady State Continuous Improvement Activities Output Planning & Diagnostics • Application Profiling Documents • Customer • Validate the feasibility of proposed transition plan considering Customer resource availability constraints • Validate the scope of work • Provide current application and process specific information • Set up infrastructure for the Sierra onsite team and provide application access • Updated Profiling Documents • Sierra • Verification of Application Inventory • Understand problem resolution process • Understand current configuration management, change management and release management process • Understand field support and out of hours support process • Gauge application complexity • Review existing SLAs and associated deliverables

25. Transition Planning Inputs Steady State Continuous Improvement Activities Output Approach to Transition – Knowledge Acquisition Phase (KAP) • Refined Application Specific Transition Plan • Customer • Provide Application overview, demonstration and documentation • Provide overview of Customer standards • Provide details on functionality, design, interfaces and support history of the applications • Draft System Maintenance Technical Document (SMTD) • Draft Execution Process Document • New SLAs • Sierra • Understand application architecture, functionality and integration touch points • Perform application hands-on covering the implemented modules • Simulate non-critical requests by shadowing existing support team in a test environment • Collate technical and functional documentation (SMTD) • Finalize new SLAs

26. Transition Planning Inputs Steady State Continuous Improvement Activities Output Approach to Transition – Parallel Perform • Draft System Maintenance Technical Document • Draft Execution Process Document • Customer • Provide assistance to Sierra team on application hands-on on critical requests. • Review & approve application documentation • Sierra • Simulate critical/non critical requests by shadowing existing support team • Refine execution process document • Refine SMTD • Offshore training • Simulate onsite/offshore coordination • System Maintenance Technical Document • Execution Process Document

27. Transition Planning Inputs Steady State Continuous Improvement Activities Output Approach to Transition – Steady State Transition • System Maintenance Technical Document • Execution Process Document • Customer • Review & approve process documentation • Assign service request to Sierra • Overall prioritization of work between Customer retained team and Sierra • Provide access to existing team on a need basis • Review and accept requests serviced by Sierra • Metric Reporting • Update Process and Plan Documents • Support Transitioned • Sierra • Transfer and Own the Tier 2 and Tier 3 activities for baseline support • Offshore Team Ramp-Up and Induction • Start providing Tier 2 and Tier 3 Support services

28. Transition Inputs Continuous Improvement Activities Output Steady State Planning Steady State • Execution Process Document • System Maintenance Technical Document • Customer • Assign service request to Sierra • Overall prioritization of work between Client retained team and Sierra • Review and accept requests serviced by Sierra • SLA Ownership by Sierra • Support Metrics • Knowledge Repository • Sierra • Provide support • Assist in prioritization of overall baseline work • Prioritization of service requests for work allocated to sierra • Weekly status updates • Period-end metric reports • Identify areas for continuous improvement

29. Continuous Improvement - Responsibilities

30. Governance Structure Governance Structure Sierra Customer • Strategic Direction • Relationship Review • Program Risk Management CIO Business Head Program Sponsor Division Head EAS Head Steering Committee Customer Sierra • SLA Review • Escalation Management • Go/No-go for initiatives Business Head Customer ERP Head Program Manager Practice Head Account Manager Program Manager Operations Support Team Sierra Customer • Project Review • Cases Prioritization • Resource Management • Risk Management • Scope Management • Communication Management • Knowledge Management Business Rep. Project Manager Practice Head Project Manager

31. Project Organization Customer Business Sponsor ONSITE Customer ERP Head Sierra Program Manager Customer Program Manager Sierra Project Manager Customer Project Managers Admin/DBA Consultants Functional Consultants • Customer Application Team • Business Analysts • Functional Consultants • Technical Consultants • Admin/DBA Consultants Division/EAS Head Practice Head Sierra Offshore Delivery Manager Infrastructure Team Offshore Project Manager Competency Managers Quality Coordinator Functional Consultants Technical Consultants Developers/Testers OFFSHORE

32. Project Monitoring and Control Weekly Status Report Participants • Sierra Onsite PM • Customer People • Systems Manager Reporting Metrics • SLA Performance • Outstanding Issues Monthly Reviews Quarterly Reviews Participants • Sierra Program Manager • Customer Program Manager • Steering Committee • Sierra Senior Management • Customer Senior Management Participants • SLA performance • Say/Do Ratio • Preventive Maintenance Recommendations Reporting Metrics • Overall Performance • Customer Satisfaction Reviews • Productivity Improvement • Financial Metrics Reporting Metrics

33. Software/ Hardware Issues Typical AMS Flow Level 3 Level 1 Level 2 by Client Issue Technical Team Severity1 No Help Desk 24 X 7 Functional Team Yes Client SA Team 24 X 7 (bus hrs) PSR Resolved and CSR Raised Security Administration Resolve & Close NO Yes Oracle Apps ? Submit issue Thru AMS system - PSR / CSR Classify Issues Change Request Board End User Issue Raised Level 2 Issues? SA Team Offshore (24 Hours) Approve? Client Project Manager Bin sweeping by SA Team and work Allocation to Onsite / offshore team Schedule CSR by Client PM/ Onsite Contact Functional Questions Execute CSR Close CSR

34. Severities & SLA Definitions • 1-Critical • Mission critical applications not working • SLAs • Acknowledge and respond to customer with-in 15Mins (Onsite) • Engage in 24X7 model till a acceptable solution is found • 2-Urgent (Concurrent Mgr Running, Reports generation etc.,) • Substantial features not available and will impact customer’s productivity • SLAs • Acknowledge and respond to customer with-in 2 Hrs (Onsite) • Engage till a acceptable solution is found. • 3 - Standard • Some functionality not available but workarounds are possible • SLAs • Acknowledge and respond to customer within 1 business day. • No criteria to resolve service request

35. Secure Communication Links 2 Mbps Dedicated Fremont VPN Hyderabad Public Internet Redwood Shores Client • Data Security • Protecting against unauthorized access Firewalls, Anti Virus Software, Project Specific Subnets, VPN • Regular Server backups Centralized backup facilities & backup policies • Computing Resource Security • Physical access, security personnel, alarm system • Confidentiality • Non-disclosure, IPR agreements • All Employees sign IPR agreements • Project specific IPR agreements