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November 15, 2006

…teaching, research and public service. Solution Overview – Presented to:. Office of the President, UC. November 15, 2006. Agenda. 8:30 – 8:35 AM 8:35 – 8:50 AM 8:50 – 10:00 AM 10:00 – 10:15 AM 10:15 – 12:00 PM. Introductions SumTotal Background and Overview

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November 15, 2006

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  1. …teaching, research and public service Solution Overview – Presented to: Office of the President, UC November 15, 2006

  2. Agenda • 8:30 – 8:35 AM • 8:35 – 8:50 AM • 8:50 – 10:00 AM • 10:00 – 10:15 AM • 10:15 – 12:00 PM Introductions SumTotal Background and Overview Functional Session Break Technical Session

  3. Solution Demonstration - Introductions • Dave Crussell, Chief Operating Officer • Representing Executive Officer • Bill Docherty, Senior Director, Product Management • University of CA Technical Program Manager • Katie Khera, Practice Director, Professional Services • University of CA Program Manager

  4. SumTotal Background Market Leader 2006 • Leader in emerging mission critical space • The largest provider of learning and business performance technologies and services • 700+ employees • Financial leader • Expected $100+ million in annual revenue • Largest market share by revenue • 45% greater than next nearest competitor • Largest customer base • 1500+ enterprise customers • 17 million users worldwide • International Presence • Offices across the globe • Product localized in 14 languages • Large Enterprise Experience (over 100,000 learners) • Citigroup, Allstate, Lowes, Motorola,Glaxo Smith-Klein,HSBC, JP Morgan Chase, AT&T, Starwood, Vodaphone, Cendant, many others • Service metric leader • Double industry average of on-time, on-budget Commitment to Customer Success

  5. Clear Industry Leader by Revenue and Customer Count SumTotal Systems 2006 Source: Bersin & Associates, Learning Management Systems 2004

  6. MindSolve Acquisition Positions SumTotal as Leader in Talent Management • SumTotal Acquired MindSolve – Nov 14th • SumTotal only vendor to provide Best-in-Breed in learning and performance • MindSolve’s rich, patented technology and deep domain experience cannot be easily replicated • Multiple deployment options allow SumTotal to provide best solution to customers • Performance Management is the strategic enabler: • Determining if all other TM processes are working • Reporting learning effectiveness • Identifying the right skills to hire • Proving baseline for pay for performance • Builds base on skills & competency management • Learning management has the highest switching costs: highest usage and manages compliance

  7. SumTotal Strategy Moving Forward • Learning management is the strategic backbone: • Highest usage in Talent Management • Compliance management • Supports knowledge transfer • Performance Management is the strategic enabler: • Determining if all other TM processes are working • Reporting learning effectiveness • Identifying the right skills to hire • Proving baseline for pay for performance SumTotal Strategy After MindSolve Web Services / Portal / Reporting and Analytics Recruitment Management ($660M) PerformanceManagement ($180M) LearningManagement ($545M) CompensationManagement ($290M) Knowledge Management Content Management 20% 25% 17% 12% Competency Management Platform Integration and Data Platform Best-of-Breed Solution Offered Key Functionality Offered Solution provided through partners and open integration Sources: Yankee Group, Gartner Group 2005 Market Size and 3 Year CAGR

  8. Regulatory Compliance at UC • Objectives of the University of California • Priority is to Track Compliance Training • Provide Central Management of Compliance-Related Training Activities • Adhere to Internal Compliance and External Compliance (e.g. Ethics, Sexual Harassment, etc.) • Must Have Accurate Information for Audit Requirements

  9. Regulatory Compliance – Holland America Case Study • Challenges • “Floating City” with Internal and External Compliance Requirements • Municipal – Healthcare, Security, Firefighting, Waste Treatment • Other Services – Housekeeping, Food Prep, etc. • Over 100 Government Bodies Regulate Its Compliance • Potential Severe Penalties • Grounded Ships and Fines, High Liabilities • SumTotal Solution • Transformed Its Compliance Training Program • LMS Has Eliminated Lost Certificates • No More Onerous Data Entry • Cost Savings Lowering Phone, Fax, and Mailing Charges • Accurate Reporting

  10. Effective Consolidation and Automation at UC • Objectives of the University of California • Combination of Separate Learning Communities • Moving towards a Robust, Scalable, and Consistent LMS • Migration of Legacy Data • Connected Infrastructure for Global Tracking and Reporting • Efficient and Cost-Effective – Less Paper Process and Manual Input of Data and Reporting Procedures • Integration of Campus Instruction-Related Systems • Accomplished with Long-Term Vendor Relationship

  11. Consolidation and Automation – National College for School Leadership • Challenges • Large and Diverse Target Audience – 130,000 Users • Inconsistency in Program Delivery and Administration • Shortage in Current and Projected Skills for Administrative Staff • SumTotal Solution • Fully Integrated Solution – Blended and Personalized Learning • Created a “Paperless System” for NCSL • Learning Content Developed Centrally and Delivered to Different Locations • Provided a Quicker Path to Certification • High User Satisfaction – Key to Support for Future Initiatives

  12. SumTotal Solution Set • SumTotal Systems Incorporated provides an application platform & associated services that help organizations manage and deploy mission-critical information, skills, and knowledge across all business processes • The SumTotal Enterprise Suite is an integrated suite of eight business performance management applications delivering end-to-end capabilities that improve employee proficiency, extended enterprise productivity and bottom-line results for the organization • TotalLMS™ complete learning management • TotalLCMS™ content management and creation • TotalVCS™ live training • TotalDashboard™ predictive analytics application • TotalPerformance™ performance management application • TotalAccess™ offline/mobile learning application • TotalInformation™ info management application • TotalCollaboration™ collaboration portal

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