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GETTING EMERGING TECHNOLOGY RIGHT THE FIRST TIME!

GETTING EMERGING TECHNOLOGY RIGHT THE FIRST TIME! Ensuring Successful Mass Enablement of Trading Partners! March 2005 JAY JAYAMOHAN. ETA formed as spin-off solutions and services firm, specializing in Emerging Technology strategy and application with proprietry MES TM solution

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GETTING EMERGING TECHNOLOGY RIGHT THE FIRST TIME!

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  1. GETTING EMERGING TECHNOLOGY RIGHT THE FIRST TIME! Ensuring Successful Mass Enablement of Trading Partners! March 2005 JAY JAYAMOHAN

  2. ETA formed as spin-off solutions and services firm, specializing in Emerging Technology strategy and application with proprietry MESTM solution Mass Enablement System (MESTM) is a unique solution that helps companies roll out initiatives across large trading partner bases Service offering of half day workshop that brings you up to speed on RFID and how it fits your business Jay Jayamohan / CEO of ETA, has extensive experience leading large roll outs of technology initiatives Formerly COO of a firm voted as number 10 on Washington Technology Fast 50 companies Led PriceWaterhouse’s Enterprise Application practise and has international experience with various industries Extensive experience with leading large and small companies in new technology implementations and business re-engineering Able to leverage experience for process improvement using emerging technology for both commercial and government sector ABOUT ETA & Jay Jayamohan

  3. Objectives Provide YOU with an update on the opportunities that exist to accelerate widespread adoption of Emerging Technology – emerging from direct experience with other mass supplier adoption programs in RFID Agenda HealthCare Challenges & Opportunities Introduction to Mass Enablement System (MESTM ) Tried & Tested - from commercial retail & consumer goods rollout of emerging technologies Benefits and Adoption program Summary with ETA service & solution Q & A INTRODUCTIONS, OBJECTIVES & AGENDA

  4. HEALTH CARE CHALLENGES • COST • Healtcare cost is 15% of GDP in 2004 and rising • Healthcare premium increasing by double digits • Employer healthcare cost expected to rise 12% on an average • PROCESS • Rising medical errors coupled with failing quality standards • Lack of patient data and fractured delivery system • Growing outpatient care problem due to lack of infrastructure • TECHNOLOGY • Lack of wireless system and interoparability • Slow to improve Business Processes and adopt Emerging Technology • Lack of common standards for data and privacy

  5. Financial & Technical Barriers to Adoption of Health IT • FINANCIAL BARRIERS • Lack of quick Return On Investment (ROI) • Lack of access to Capital • High cost of Emerging Technology adoption • TECHNICAL BARRIERS • Long and complex implementations • Lack of standards and changing policy guidelines • Inability to quickly integrate and incorporate changes to business processes

  6. OVERCOMING HEALTH CARE CHALLENGES USING ET • One of the fundamental inefficiency of America’s healthcare system is the timely matching of patient need to the most appropriate level of service at the most appropriate cost. • Emerging Technology including RFID has the potential to overcome the challenges through: • Reduced Healthcare cost • More timely and accurate payment from carriers • Save time and money • Allow doctors to see more patients per day • More productive practice • Less administration more information about practice

  7. OPPORTUNITIES - MEDICINE, TECHNOLOGY & BUSINESS • New Technologies - building blocks for future of medicine • Medicine is innovation friendly and absorbs new technology quickly • Technology is an important trigger for future of patient care • New opportunities exist in robotics, tissue engineering and wireless • Miniaturization - via ‘observation car’ through the body • Unique instrument being developed for less invasive diagnostics and therapy • New imaging tools, wireless telemetric data transfer and a new sensors form the framework for future endoscopic products • For the patient this means less pain, shorter hospital stays and, most importantly, the opportunity to detect disease at early stages. • Acting in an entreprenurial way - making use of opportunities • Use innovation as a sustainable source of growth • Adopt technologies at the innovation stage not invention stage • Mass enable technology efficiently for realistic ROI

  8. CHALLENGES TO OPPORTUNITIES • SAME NUMBERS FROM A DIFFERENT PERSPECTIVE • Healthcare spending is close to $26 Billion in 2004 and projected to grow over $34 Billion by 2008 • By 2008 payer spending will amount to $7.5 billion and provider spending will be at $26.7 billion. • The largest revenue chunk in the payer segment is services, which will grow from around $2.5 billion to $3.5 billion between 2004 and 2008. • Among providers hospitals are the largest source of healthcare ICT spending, representing around 57% of the market, going from $11.7 billion to $15 billion throughout our forecasting period. • TAKE ADVANTAGE OF THE OPPORTUNITY • Overcome your biggest ‘pain point’ in adapting emerging technology using effective Mass Enablemet solutions. • Create win-win situation for your business and customers using emerging technology

  9. MASS ENABLEMENT OF AN EMERGING TECHNOLOGY ACROSS A TRADING PARTNER BASE SHOULD NOT BE LEFT TO ‘CHANCE’… 000s Trading Partners Initial notification and updates YOU • Intermediaries responsible for enablement at scale: • Industry bodies • EPC Global • Consultants • Systems integrators • Hardware manufacturers • -Software manufacturers Variable quality of advice Untested technology Competing service providers Unclear business cases The ‘whisper game’ • Top 5 uncertainties of mass adoption of ET to meet required deadlines: • Are all my trading partners aware of the program and my requirements, in a uniform manner? • Are my trading partners implementing a ‘Band-Aid’ or a real solution? • At what stage of implementation are my trading partners? Will I meet my deadlines? • How quickly can I notify my total supply base of program updates and developments? • How can I develop a feedback mechanism and community channel to further enhance adoption? …CONTROLING THESE UNCERTANTIES WILL GREATLY IMPROVE EXECUTION.

  10. CONTROLLING THE UNCERTAINTIES REQUIRES PROACTIVE OWNERSHIP OF THE ADOPTION LIFECYCLE… ANNOUNCE BEST PRACTICE ADOPTION PROGRAMS ARE IN CONTROL OF ALL 5 PHASES ENHANCE ENROLL ENABLE …ARE YOU ADEQUATELY INVOLVED IN EACH PHASE TO MEET YOUR STATED DEADLINES AND BUSINESS CASE OBJECTIVES? EDUCATE & ADVISE

  11. FEW COLLABORATION PROGRAMS EXIST TODAY THAT PUT THE ‘PULL’ SIDE OF THE PARTNERSHIP IN CONTROL – EVEN WAL-MART SUFFERS Wal-Mart RFID program Wal-Mart Data Sync Program • Program off to conspicuous start, slow going – Scope: 200-250 suppliers • Supplier momentum, but not as planned • Supplier slap-and-ship approaches undermines future of program • Inadequate coordination with enabling program of data synchronization • Creation of solution partner ‘frenzy’ and associated effects and ramifications • Mandate issued in 2002: 06/03 deadline • Scope: all 13-15,000 suppliers • Mandate revision to 01/01/04 • By 12/04, only 1 to 2,000 in ‘production’ • Proliferation of ‘Band-aid’ solutions undermines future of intuitive • Widespread confusion and resentment of proxy enablement partner (UCCnet)

  12. TRADITIONAL VERSUS BEST PRACTICE ADOPTION OF EMERGING TECHNOLOGY – ACROSS MASS TRADING PARTNER BASE

  13. ANNOUNCE ENROLL EDUCATE & ADVISE ENABLE ENHANCE DELIVER BEST PRACTICE ADOPTION INFRASTRUCTURE FOR COLLABORATIVE PROGRAMS - TO ITS CUSTOMERS AND THEIR PROGRAM OFFICES Rollout strategy, planning & continuous improvement Learning Management System (LMS) & community portal Managed services Progress On-Demand • Consultative rollout planning • Marketing and communications strategy towards trading partner base • Strategic review of service providers by type and fit for every ‘flavor’ of trading partner • RFID and other Emerging Technology strategy consulting • RFID Academy • Accreditation program • Automated outreach • Personal tuition • Survey design, deployment and management • Student graduation • The official word-of-mouth, delivering fact versus hearsay • Trading partner contact management • Communication campaign management • Response management • Follow up and expediting • eCommerce • Status capture & PRM/CRM • Effectiveness of • Announce • Enroll • Education • Enablement • Enhancements • Readiness of supply base • Forecast for completion by segment and individual trading partner • Trends • Risk reporting

  14. TRIED AND TESTED INFRASTRUCTURE & METHODOLOGY • Retailers: Walgreen's, CVS Pharmacy, Eckerd, Safeway, Albertsons, Ahold, Food Lion, Best Buy, Auchan, Casino, Tesco, El Corte Ingles, Co-op Italia,etc • Manufacturers/distributors • Combined unique supplier base of 0ver 30,000 • Deployed segmented approach to 4,000 chain drug, 750 electronics and entertainment, 8,000 grocery/food/tobacco & GM/Apparel • Data synchronization total enablement program, faculty and LMS with CRM reporting capability • RFID mass education, survey and enablement capability • Supplier outreach mechanisms • Automated • Consultative individual and seminar based • On-demand reporting and project management

  15. HOW IT ALL CAME TOGETHER FOR SEVERAL GLOBAL RETAILERS

  16. BENEFITS OF ETA APPROACH TO COLLABORATIVE ADOPTION MANAGEMENT • Announce phase effectiveness improves from 20% to 90% + • Enrollment ensures you have a direct line of sight to every single trading partner, and the appropriate contacts – automated • Mass educate supply base at speed and scale • Education phase reduced from 2 years to 6 months • Assess continuous trading partner understanding and capability • Kill ‘whisper game’ • Reduce number of Band-Aid solutions deployed by trading partners • Lead supply base to trusted enablement partners at the right cost • Manage out the risk of late delivery or surprises • Enhance relationships and program results

  17. YOU HAVE THE ABILITY TO BE EVEN MORE PROACTIVE REGARDING RFID ADOPTION - PROPOSED ENHANCEMENTS TO ENSURE SUCCESS ILLUSTRATIVE • Repurpose PORTAL • Convert existing content into interactive courses and education seminars • Create new education courses/programs that lead trading partners through basic understanding to advanced capability e.g. • RFID 101 • YOUR requirements 101 • TAGS and ‘what’s right for me ?’ • Interactive FAQ • Ask the expert, scheduled Webinars & seminars • Which integrator is right for me • Defining a business case for RFID • Create capable missionaries and send them to top tier suppliers • Trading partner contact information factory • CRM linked to trading partner readiness and capability • Reporting capability across the top

  18. SUMMARY AND NEXT STEPS • Currently supplier rollout of RFID is a multi-faceted, segmented program that will take several years to execute • There is a clear requirement for a targeted program to manage total enablement, versus traditional adoption and CRM activity • ETA has the pedigree required to assist you or your prime contractor in delivering infrastructure and services to ensure speed and quality of adoption by trading partners en-mass • Proposed next steps • Deeper dive into the types of capabilities that can be leveraged • Demo of the enablement program in place with several global retailers • Understanding of key issues and milestones in Your program going forward • Determine Your receptivity to creating a formal enablement Academy

  19. FURTHER INFORMATION REGARDING ETA (EMERGING TECHNOLOGY PROVIDERS) • ETA was formed with the vision of providing timely, knowledgeable and vendor neutral advice for evaluating, planning and implementing Radio Frequency Identification (RFID). We will provide the right advice on all aspects of RFID including privacy concerns, best approach, and integration with existing solutions. We bring the advantages of being small, uniquely focused on RFID and the experience of a team that has years of experience providing emerging technology solutions to both Federal and Commercial clients. • RFID has the potential to transform business processes and enable huge cost savings for most organizations. But it also comes with the risks of multiple standards, privacy concerns and high cost of adoption. ETA has the knowledge, understanding and experience of dealing with emerging technologies and guiding organizations in the right approach for maximum return on investment. • Allow us to guide you in defining the business case, areas of improvement, and how to integrate with your existing enterprise applications. Let us help your organization take advantage of RFID technology. MISSION Provide professional, objective and cost effective RFID strategy and services to business leaders looking for ways to improve the performance of their organizations through this emerging technology 10332 Main St, #126 Fairfax, VA 22030 - TEL: 703 278 8713 - FAX: 703 278 9694 EMAIL: info@etadvisors.net www.etadvisors.net OUR SERVICES Regardless of what industry you compete in, excellence in adapting and innovating Emerging Technology (ET) can make or break your ability to keep up with the pace of change. We dedicate people and resources to advancing our expertise in the ET like RFID, Wireless and Nanotechnology. From planning to operations, we help clients build their skills and boost performance. The biggest challenges in implementing RFID solutions currently are issues with 1) Standardization and stabilization of the technology and functionality 2) Privacy of the data collected and tracked and 3) Storing, reporting and managing the information collected. ETA can help organizations in developing the strategy plan that will bring together the hardware, software and integration with existing applications. PLANNING & APPROACH INDEPENDENT VERIFICATION & VALIDATION STRATEGY EVALUATION • Fit Gap Analysis • People, Process & Technology • RFID Solutions - Approach • RFID Solutions - Planning next steps • Business Case • Process Study • Strategy evaluation • Implementation planning • Implementation execution • QA - Integration

  20. GET RFID?Immersion Sessions Everything your organization needs to know about RFID in a focused, half-day work session Wouldn’t it be nice if someone sat you down and explained everything you need to know about RFID today in a simple, focused way ? Whenever an emerging technology is introduced to the mainstream, it is accompanied by hype, confusion and fiction. RFID is no different in this regard. Therefore, the experts at ETA have called on over 6 years of RFID and Data Synchronization experience, coupled with 25 years of technology strategy and execution to help you get past this unnecessary evil. • Our experience in working with clients across several industries in Europe, Asia and North America has consistently told us that there can be no substitution for a strong grounding in the business implications and truth concerning the technology under focus. • To help our clients gain this critical context around RFID and the EPC Network, we have designed a simple, low cost program to prime you on RFID – our GET RFID? Immersion Sessions What you will learn in just half a day with our team, visiting you at your choice of location: GET RFID STRATEGIC AND PRACTICAL GET RFID LEVEL SET GET RFID SMART • What businesses and industries will benefit most and first? • How relevant is RFID to your company/industry? • Who is implementing RFID today and why? • What approaches are companies taking to RFID? • Who exactly is doing RFID today and where? • Is anyone benefiting yet? • Jargon buster – every acronym and technical term explained in terms a child can understand • Industry bodies and standards groups – who is governing RFID evolution? • Privacy, Security & Public Policy – essential facts to know • Who sells RFID solutions and who is a player versus an also-ran ? • Elements of RFID business cases – hoe companies are justifying action today • Should you implement /pilot now or just investigate? • Costs associated with RFID and the evolution of the technology • How RFID is evolving today – where your trading partners who have implemented RFID are going next and what it means to you • Explaining RFID to executives in terms they will understand • Elements of an RFID program and how to adapt your organization accordingly • Case studies from real world RFID projects to add to your repertoire • Introducing RFID the EPC Network • RFID History to present day – the short version • Basic components of an EPC RFID solution • How the technology can be applied to business process for benefits • Shortcomings and caveats the consultants gloss over • Realty check – When is this really going to take off? • How to prepare and educate your company and your trading partners GET RFID? Immersion sessions start at just $4,499 Visit www.rfidexplained.com to arrange for an immersion session for your company, or contact us using the information below. 10332 Main St, #126, Fairfax, VA 22030 - TEL: 703 278 8713 - FAX: 703 278 9694 EMAIL: info@etadvisors.net - http://www.etadvisors.net

  21. Questions? Thank You

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