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IEEE BES / BMS ITSC Presentation

August 11th 2004

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Agenda – Sally Waselik

• Introduction• ICSS and BMS background• BES Vs. BMS

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ICSS and BMS background

• Current ICSS system– 10 year old, Coupled with Oracle financials AR,

Custom developed, Limitations, De-supported• ICSS Upgrade

– Decouple from AR, Upgrade to latest technology stack

• IEEE BMS – Add efficiencies in old system, Support new features,

Complete re-design / Buy

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BES Vs. BMS

• Distinct business needs– BES focus on Non member – Non Individual

Entities– BMS focus on Individual entities

• Different business / Technology drivers• Yet commonality and integration

necessary

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Agenda – William Cook

• Key drivers for successful IEEE business• Key stake holders for BES / BMS • Non member Business needs• IEEE BES Phased implementation

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Agenda – Nimish Shah• IEEE BMS Business needs• Keys to Efficient IT solutions• Business need / System limitations / Proposed

solution mapping• IT Implementation plan – high level• BES Options / Investment / Staffing• BMS Options / Investment / Staffing• BES / BMS integration points• Enterprise Architecture

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Keys Drivers for a Successful IEEE Business

• Outstanding Products– Relevancy to Member and Non-Member markets– Best-in-Class

• Customer and Market Driven Offerings– Targeted and flexible product offerings– Individualized Marketing

• Exceptional Service– Building Member Retention and Loyalty– Higher than some for-profit organizations

• Operational Efficiencies– Transactional throughput– Volunteer productivity

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IEEE “Lines of Operations”Key Stake Holders

– Publications• Publications, Sales & Marketing, Customer Service,

Information Technology– Membership & Public Imperatives

• Regional Activities, Technical Activities, Publications, Corporate Communications, Corporate Activities, Member Service, Information Technology

– Standards• Standards, Publications, Customer Service, Information

Technology.– Conferences

• Technical Activities, Information Technology– “Other”

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IEEE BES Business Requirements

• $92+ million dollar business – both print and electronic - Growing needs and complexity

• BES System Requirements Include:– Integrated System reporting.– Hierarchical Customer structures.– Automatic billing & commission calculations.– Automatic renewals and invoicing.– Integrated Xplore/eRights authentication setup.

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IEEE BES Business Needs – Cont.

• BES System Requirements (continued):– Automate Quotation, and customer

correspondence– Integration between Marketing, Sales,

Customer Relationship Management (CRM) and Fulfillment systems

– Better reporting tools

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Current System Implementation & Limitations

• Customer contact detail information and hierarchy maintained separately in Maximizer CRM system by Contract Administration & Sales.

• Customer billing detail maintained separately in Excel file by Customer Service.

• Renewal bills generated and sent via Word & Excel by Customer Service.

• Manual billing and commission calculations input to Oracle AR system to record revenue.

• Customer access detail manually input into eRights by Customer Service.

• Reporting generated via multiple sources depending on the requirement – often doesn’t reconcile.

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BES Phase 1

• Will include all US IEL customers • Will utilize existing non member customer

base already in Oracle system.• Will be integrated with CRM* customer

account information in Maximizer (changes in one system will feed the other – “circle of life”).

* Customer relationship management

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BES Phase 1

• Built in scanning and work flow using Feith software:– 90/60/30 day system driven renewal follow up.– “Contract” software will automatically generate

appropriate notice (currently manual).– Notice can be emailed or printed and mailed

directly to sales rep or customer.– Eliminates manual invoice tracking via Excel.

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BES Phase 1

• On receipt of payment will automatically create an invoice and send to Oracle AR system.

• Provides automatic feed into Oracle GL system based on defined revenue recognition rules.

• Significant step in improving automation of back end business system – leads to improved customer service & processing efficiency.

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BES Phase 2

• Expands deployment and accompanying Phase 1 benefits to non-US IEL product line, and all other electronic only packages such as ASPP and POP.

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BES Phase 3

• Continues software integration with purchase of Advanced Pricing and Sales Reporting Modules.– Functional integration to be expanded to

include new electronic offerings (eg. Enterprise, IEL “Lite”) and print subscription ordering & fulfillment.

– Will provide integrated internal system to improve service and drive operational efficiencies.

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BES Phase 4

– Possible enhancement to include customer facing self-service applications and integration into content delivery platform (Xplore).

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AR CustomBilling

Scanning/Workflow

Renewals,Quotations, Invoicing

Full Pricing eRightsIntegration

Other IELContracts

ASPP,POP

OracleAccts.

Receivable

Maximizer- SalesForce

Hiarch.Sales/

ContractReporting

IndividualCustomerSelf-Serve

MS WordRenewals

ExcelContracts

Excel SalesReporting

IELContractsDomestic

Phase 1 Phase 2 Phase 3 Phase 4

EnhancedInternal

Processes

ContractTypes

ExternalFacing

Services

EliminatedRedundancies/

Manual Processes

Time

BES Implementation Timeline

SalesPerformance

Reports

eRightsManualInput

Std. CorpMembershp

NewPackages

ComboPackages

ContractListings

ManualBilling

DupeCustomer

Entry

ManualQuotes

RenewalTracking

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Agenda – Nimish Shah• IEEE BMS Business needs• Keys to Efficient IT solutions• Business need / System limitations / Proposed

solution mapping• IT Implementation plan – high level• BES Options / Investment / Staffing• BMS Options / Investment / Staffing• BES / BMS integration points• Enterprise Architecture

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IEEE BMS Business needs

• Member (Individual Entity)– Unified view of customer– Ability segment markets and preferences– Remove dependency on annual subscription

based processes and system– Flexibility on Products and offerings– Self service and web technologies– Operational efficiencies.

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Keys to Efficient IT Solution – 4 Rs

• Things to consider when Redesigning – Reusability

• Flexible framework / Buy Vs. Build / Common services / Common components – not Silo systems, interoperability

– Repeatability • Use of Same processes / Controlled environment / Flexibility

– Reliability • 24 X 7, Fail over, Robust architecture, scalability

– Recentness • Supported environment, Latest technology to make use of

resources, efficiencies etc.

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Business Issues - WhatIT Issues (System limitations) - Why Solution

Manually managed businessICSS system does not support Anniversary

Introduction of Oracle Contracts module –

Phase (I and II)

No unified view of customer hierarchy

ICSS system can not handle hierarchy well, no

integrity checks, No discipline in data entry

Customer online and Oracle TCA architecture

supports hierarchy(Phase I, II and III)

Multiple entries in to disparate systems

Disconnected applications - manual business processes

Introduction of Middle tier components - 9iAS and

workflow to help integrate(Phase 1 – IV)

Poor reporting capabilitiesLack of common denominator

Improvements with introduction of data

librarian module / Sales reporting (Phase III)

IEEE Business Entity System

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Business Issues – What(Partial List)

IT Issues (System limitations) - Why Solution

Lack of flexibility in Product offerings and bundling

ICSS system – Obsolete Data structures, Business

logic driven code, Old technology BMS Phase I

No unified view of customer

Silo systems, Lack of ICSS to support and

integrate

Enterprise architecture, Data definition and design, Better integration engines

BMS Phase I and II

System is subscription driven – business model is changing

ICSS system and business process were designed with membership and subscription in mind BMS Phase II and Beyond

Poor reporting capabilitiesLack of common

denominator

Improvements to Data warehouse capabilities / Extern vendor may have

this solved alreadyBMS Phase I

IEEE Business Management System

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Implementation Path

BES Phase I BES Phase II BES Phase III

2004 2005

BMS Requirements BMS POC BMS Phase I / .. Phase II

ICSS Upgrade

ICSS June Release

Enterprise Architecture Initiative

ICSS Sept. Release ICSSDec. Rel.

ProductionSupport

Bug fixes

ICSS Upgraded System

BES Phase IV

Integration

Merge

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Project investment Phase 1 and 2

• 2003 / 2004 – Invested app. 350K on capital for Oracle modules and 165K on incremental head count – On target for cost and on schedule for project delivery dates!

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Project Investment / needs – BES Phase 3 and 4

• 2005 (Projected) Covers Phase III deployed and Phase IV Requirements for the year 2005– Capital – 560K – Expense + Depreciation – 135K (2005)(Includes incremental contractors and Oracle software

investments)• Additional internal staff needs managed through

work program prioritization Developers, DBAs, QA, Infrastructure, Users etc.

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0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006 2007 2008 2009

ICSS BeforeUpgradeICSS PostUpgradeIEEE BMS

IT Cost Managing Membership Business – (in units and relative terms not absolute values)

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Project Costs - BMS

• Capital for 2005 – 2.9MM, Expense and depreciation – 465K *– Assuming Oracle modules and depreciation for the

part of the year (The development starts 2Q 2005)• Timing, Expectations

– Internal Buy-In on Range of Costs– Seek Contingency Funding from BOD– Specific target milestones for approvals and Project

Initiation*Based on what we know today….

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Enterprise Architecture Focus for 2004 / 2005

• Baseline current capabilities• Build team and facilitate in defining Enterprise

architecture• Identify key technology components to go after

for 2004 and 2005 such as– User experience / Portal– Membership / customer / Subscription– BES / BMS synergies and Integration– Data warehouse / Reporting – Infrastructure – OS / Database / Security

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BES / BMS Issues Discussion

Ben Johnson / Sally Waselik

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Action Plan on BMS initiative• Get a buy in from ITSC to move forward on BES and

BMS Projects – 8/2004• Obtain agreement in principle on Requirements – 8/2004• Send out RFP to vendors for their response – late

August 2004• Continue to narrow down the list of vendors and keep

fine tuning cost projections – 8/2004 – 2/2005• Follow-up ITSC prior to November Board series –

10/2004• Finalize recommendation to the board• FINCOM presentation if possible • Present motion in November Board Series – 11/2004