HCL in theRailroad IndustryTransforming Railroads by Driving Business through Technology

• Railcontinuestotakemarketsharefromtruckingcompanies,offeringanefficientalternativeatcompetitiveratesandreducingthecostofdoingbusiness

• Intermodal(shippingcontainersandtrucktrailersmovingonrailroadflatcars)hasbeenthefastestgrowingrailtrafficsegmentinthepast25years

• InNorthAmericaalone,theRailroadindustryemploysover175,000workersandhaspoured$500billionintotrains,tracksandterminalssince1980

• Theaveragerailshippertodaycanmovenearlytwiceasmuchfreightforwhatitpaid30yearsagowhilepaying45%lesswhencomparedtothe80’s

• Passengerintermodalisfastemergingasmoreandmoreusersmixflightwithrailroadtravel,andrailroadfreightersaremorewillingtoshareroutesandtracks

UNDERSTANDING THE INDUSTRY

RaiLRoad VALUE SOLUTIONS

HCL – Here to help• 500+domain&technologyprofessionals

• ExperiencewithClass1NorthAmericanrailroadcompanies

• Transformationcapabilitiesinfunctionalareascoretorailroads-ProductEngineering,EnterpriseAssetManagement,WorkforceManagement,Revenue&CostManagement,CorporatePerformance,GlobalTrade&Compliance,andEnterpriseResourcePlanning

• TransformationsolutionsforMaintenanceRepair&Overhaul,CrewManagement,LinerAssetManagement,DecisionmakingbasisEventCorrelation,Shipmenttracking,remoteworkforceenablementandMobilityenabledsolutions

• Addressingthemostpressingchallenges–systemmodernizationwithoutimpactingcustomerservices,improvingemployee productivity, increasing operational efficiency and real-time supply chain visibility, simplifying travelexperience,enhancingdigitalpresence,andgroomingtoregulatorydemands

Geographically dispersed operations

Resource management

Operational efficiency and reliability

Increasing regulations & capital spend

• Complexassettrackingrequirements

• Maintainingoptimalinventorylevelsatmultiplelocations

• Complexworkforceschedulingrequirements

• Planningandschedulingofconstrainedmaintenanceresources

• Increaseininter-company/industryandcrossbordercollaboration

• Highcostlabor-Railworkersareamongstthemosthighlycompensatedworkers

• Large-scaleretirementsandmassiveintellectualcapacityexitingthelabor-forceatthesametime-theincreasingageofbabyboomersintheactivelaborforcecontinuestobeamajorconcern

• Unionizedworkforcewithincreasedbargainingpower-approximately85%ofClassIemployeesandaround,belongtoaunion

• AgingITsystemslimitresourceefficiencyandunderminesreliabilityinestablishedrailmarkets,preventingcompaniesfromrespondingquicklytochangingneeds;Inabilitytoadoptnewer,moreflexibletechnology

• Lackofindustrywidestandardsandeffortstoidentifyandautomateprocessesthrougheffectiveuseoftechnology

• IntheUSalone,40centsperrevenuedollarwasinvestedbackintoarailnetworksince1981-therailroadsareestimatedtospendnearly17%ofrevenueoncapitalexpendituresannually

• RailroadsarecommittedtomeetingthePositiveTrainControl(PTC)deadline,butitwillcostupto$13.2billiontoinstallandmaintainPTCoverthenext20years(whilePTCwillyieldjust$1inbenefitsforevery$20spentonit)

Business Challenges

+HCL Offering

iMRO for Rail

iCREW for Rail

iLINE for Rail

Automotive Data Warehouse

Crew Scheduling

Wireless Yard Switching

Maintenance of Way

• HCL’ssolutionforMaintenance,RepairandOverhaulthatenhancestheSAPERPapplication

• Addressesthetransportationindustry’srequirementsinAssetInduction,Inspection,MaintenancePlanning&ResourceBalancing,andpaperlessmaintenance

• Off-the-shelfapplicationthatbringsend-userbenefitsandoperationalefficienciesresultinginincreasedassetutilization,improvedmaterialavailability,greatercosttransparencyandbuiltincompliancesupport.

• HCL’send-to-endsolutionforadministering,assigning,planning,dispatchingandpayingcrews

• ExtendstheSAPERPfunctionalitiesofhumancapitalmanagementtotackletheuniqueworkforcemanagementchallengesoftransportationserviceproviders

• Improvesoperationalefficiency• Reducesoveralloperatingcosts

• HCL’ssolutionformaintaininglinearassetsbasedonSAPERP

• Addressesuniquerequirementsoflinearassetsthatcanstretchacrossthousandsofmilesrequiringregularinspectionandbothplannedandunplannedmaintenance

• Facilitatesbothplanningandexecutionoflinearassetmaintenance,whilemaintainingdetailedlabor,materialandothercostinformationtoenablefinancial/compliancereporting

• Decisionsupportsystemthatprovidesasingle,integratedviewofautomotivebusinessdata

• Visibilityofautomotiveoperations-frommanufacturertodealerdelivery-attheVINlevel

• Analysisofdamage/compilationofoccurrencesandliabilitiestooptimizeramplocations,andaccordcomparisonsandanalysisofactualrailcarvolumestobudgetandforecastestimates

• VisibilityandrealtimeinformationavailabilityatVINlevel• Improvedcostanalysisandutilizationoframps,railcarsandequipmentby~20%• Improvedtransittime(~15%)byreducingthedwelltime–minimizingrevenueleakage

• ScheduleManagementthroughautomatedcrewcalling;end-to-endvisibilitythroughoutyardandroadassignments

• Completevisibilitywithinthepools,assignmentsandemployeestatus

• AdherencetoFRA‘Hoursofservice’regulations

• 20%improvementincrewproductivity• 100%reliabilitywith24*7supportofferingcompletevisibilityofpools/assignmentsand

employeestatus• ImprovedROIthroughefficientcrewmanagement

• Providesanautomatedprocessthat“reads”thelegacysystemswitchlistwhereeachcarinthelisthasbeen“markedup”forfurtherdisposition

• Sendsthesignaltotheyardswitchcontrolpaneltomanipulatetheyardswitchesaccordingtothemarkedupswitchlist,increasingtheproductivityandsafety

• Effectivecontrolofswitchingoperations• Yardswitchinginsequentialorder,markedaspertheswitchlist• Improvedcommunicationandsafetyforyardpersonnel• Centralizedsystem-drivenswitchingoperationsforcardispositionwithintheclassificationyard

• Mobilitysolutionformaintenancestaffonfield,providingreal-timeconnectivitywithcoresystemsfromremotelocations

• Realtimeupdateofinformationonassignmentsanddeviationstothesystem

• 20%improvementinfieldstaffproductivity

• 100%visibilityaboutserviceassignmentsandstatus

• Improvedresourceutilization

Solution Overview and Value Proposition with Realized Benefits

• Understandingbusinessprocessespertinenttotheindustryandapplyingtechnologytoenhancecustomerexperience

• Dedicatedcustomeracademiestoexpediteresourceon-boardingandproductivitythroughdomainleddelivery

• OfferingaROIbased,provenApplicationManagementmethodologywithpredictableoutcomesdesignedtoalleviatethecentralissuesofvalueaddition,businessalignmentandcostreduction;Guaranteedsavingsaccruingfromreducedcostofoperations-‘Runthebusiness’,areploughedbackintotransformationalinitiativesfocusingon‘ChangetheBusiness’

PEOPLE IN ACTION THE RaiLRoad TEaM

Practice Snapshot

Domain Expertise Partnerships &Industry Alliances

Solutions & Frameworks

Unique BusinessModels

Comprehensiveservices across the ecosystem

• 500+domain&technologyprofessionals

• Deliveringservicesto9ofthetop15railroadcompanies,globally

• EngagedwithNorthAmerica’sClass1railroads;provencasestudiestodemonstrateexperienceandsubjectmatterexpertise

• Significantinvestmentsinrailroads-Solutions,Accelerators,Methodologies&Frameworks,addressinguniquefunctionalitiesprovidingcompetitivevalueforcustomersacrosskeyperformanceparameters

• iMRO

• iCREW

• iLINE

• AutomotiveDataWarehouse

• CrewcallingSolution

• OptimizedMaintenanceScheduler

• MaintenanceofWayMobilitySolution

• RailYardManagement

• EnterpriseTransformation

• ProductEngineering&Development

• SystemIntegration

• ITServices,Management&Operations

• BPO

• InfrastructureServices

• CustomApplicationDevelopment

• LegacyModernization

• MasterDataManagement

• EDI/B2BServices

• CollaborativeCo-SourcingModel(providesflexibility&scalabilityasacustomercanretaincontroloverallthestrategicaspectsofITwhileleveragingourcapabilitiesforoperationalexecutionandexcellence)

• Risk-RewardSharing

• OutputBasedPricing

• JVs

LeveragingstrategicallianceswithFortune1000firms

• SAP

• Oracle

• Microsoft

• TIBCO

• RedPrairie

• eBiznet

• Daon

• AvFinity

• EMC

• HP

• CA

• Misys

• Informatica

Business Transformation

SAPenabledbusinesstransformationacrossFinance,HR,ProcurementandCrewManagementprovidingexecutivereporting for the transport system in Greater London,including providing a shared services model. Results:Projected$400Mninrealizedsavings.

Finance and Payroll

Enabled real-time management information andimplemented world- class financial processes acrossAccounting,Planning&Budgeting,GRCandPayrollforthelargestClassIRailroadinNorthAmerica.Results:Adheresto industry specific requirements such as STB reportingandSTBcompliance,andfinancialtransparency.

Crew Management

ForthelargestrailroadcompanyinCanada,wemodernizedtheexistingcrewmanagementsystembymigratingfromamainframe infrastructure to a fully integratedmidrangesolution.Results:Vaultedthisclienttoaleadershippositionin employee productivity and cost control by reducingits dispatching costs, deadhead and layway costs andensuring guaranteed payments. Results: $60Mn annualsavingsprojected.

Customized Solutions

For Singapore’s premier public transport rail serviceprovider, we provided a solution to overcome specificproblems in their preventivemaintenanceplans.Results: Problem response time was reduced by 20%; cost inspares inventory was reduced by 33%; provided OnePlatformforallHRsystems

SUCCESS STORIES

CaseStudies

20+ Global Customers

“The introduction of the new integrated system will lead to a business change across Transport for London organizations and that will dramatically improve our efficiencies and benefit all of the London’s commuters and visitors.”

Managing Director, Finance and Planning, Leading Urban Transport Authority in London

Testimonials

• Customers-20+globalcustomersinNorthAmerica,Europe,India&theMiddleEast,APACandANZ

• Team-500+technology&domainconsultants

• Services–ITApplicationsDevelopment&Maintenance,EnterpriseTransformation,LegacyModernization,BusinessIntelligence&Reporting,ProductEngineering&Development,BusinessProcessOutsourcing,InfrastructureServices

• Solutions & Frameworks–iMRO,iCrew,iLine,RailYardManagement,AutomotiveDataWarehouse,MobileDataTerminal,PositiveTrainControl,OptimalYardSwitching,WirelessYardSwitching

• Partnerships–SAP,Oracle,Microsoft,TIBCO,RedPrairie,eBiznet,Daon,AvFinity,EMC,HP,CA,Misys,Informatica

HCL’s RaiLRoad Team IMPACTING THE WORLD

| 90000 people | 31countriesHcl tecHnologies: $6.2bn

THE WoRLd iS noTiCing SOMETHING UNIqUE ABOUT HCL

The‘EmployeesFirst’philosophyatHCL,thefirstsucharticulationintheITIndustry,isatthecoreofoureffortstoprovideouremployeeswithaworkenvironmentandculturethattheycantakepridein.

iT iS EMPLOYEES FIRST

Employees First.

Whenyouchannelizetheenergiesof90,000employeesandpouritintoafunnel,yougetapotentconcoctiongushingoutoftheotherendthatwillsendyourcompany’senginesracing.

WecallthistheEmployeesFirsteffect.

www.hcltech.com

HCL’sEmployeesFirstisanewandradicalmanagementphilosophywhichwillcatchonwiththeworldsoonerorlater

HonoredwiththeForresterGroundswellAward2011inthe‘Management–InnovativeSystems’categoryfor‘ValuePortal’–anemployeeideaexchangeplatformwhereemployeescollaborate,innovateandleadtheimplementationoftheirideastodelivervaluetoHCL’scustomers

DardenSchoolofBusinesshasdoneacasestudyontheimpactcreatedbyHCLthroughits“EmployeesFirstCustomersSecond”practice

HarvardBusinessSchoolteachesaboutHCLasacasestudyonbusinesstransformationhighlightingtheEmployeesFirstinitiative

HCL’sEmployeesFirstand‘democratization’ofmanagementconceptcould‘bringaboutacorporaterenaissance’

ExclusivereportonEFCSrecognizesthatthisphilosophyempowersHCL’sfrontlineemployeestomakedecisionsandtakeactionsforthebenefitofcustomers

Gartner

Rankedastheworld’sMostInnovativeCompanyinitsworkforcepractices

PublishedbyHarvardPress,Employees First, Customers Secondisadmiredbyglobalthoughtleaders-TomPeters,TonyHsieh,GaryHamel,JudyMcGrath,RamCharanandVictorK.Fung;Ranked

No.17ontheBestSellerlistin800-CEO-READ;Listedamongstthe‘BestBusinessBooksof2010’bytheLibraryJournalofAmerica;RankedNo.7onAmazonUK’slistingof‘BestBusinessBooksof2010’.

PublishesaCaseStudyrecognizingthebusinessvalueofHCL’sEmployeesFirst-“ForHCLcustomers,improvedengagementandemployeepassiontranslatesintogreaterflexibility,proactiveinnovation,andadesiretodotherightthingforthecustomer,regardlessofwhattherulesmightsay”,itsays.

WinstheAsianHumanCapitalAward2011forinnovativeandimpactfulpeoplepracticescenteredontheEmployeesFirst,CustomersSecondphilosophy

Forthefourthtimeinarow,WorldBlulistsHCLasoneoftheMostDemocraticWorkplacesintheWorld

AcknowledgesHCLTechnologiesastheworld’smostmodernmanagement

HCLisalsotheonlyAsiancompanywhoseCEOfeaturedonFortune’s‘DreamTeam’

HCLisintheElite“Thinkers50”List

OneofBritain’sTopEmployersforthe5thConsecutiveYear