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Ver 2.02 2000-MAR-28 Short-term U.S. Growth Opportunities Enterprise Application Management (EAM)

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Presentation on theme: "Ver 2.02 2000-MAR-28 Short-term U.S. Growth Opportunities Enterprise Application Management (EAM)"— Presentation transcript:

1 Ver MAR-28 Short-term U.S. Growth Opportunities Enterprise Application Management (EAM)

2 2AgendaAgenda EAM Definition and Packaging Approaching Clients – Initial conversations – How EAM addresses client’s pain – Client FAQ Sales Support Regional Focus Q&A

3 3 How would you rate your current experience level in selling the EAM offering? 1. What does EAM stand for? 2.I have a general understanding of what EAM is 3.I have some experience in selling EAM 4.I have lots of experience with EAM and could teach this session

4 Ver MAR-28 EAM Definition & Packaging

5 5 ERP/EAM Market Trends Recognition of the value of moving to a fully integrated solution has produced a strong acceptance of packaged applications Best Practices & External Managed Services to reduce Total Cost of Ownership, improve overall customer satisfaction, and increase profitability The acknowledgement of a business model that supports integration of strategic partners into a position of accountability within the corporations The cost and complexities associated with acquiring, retaining and maintaining skilled resources is a consistently underestimated challenge

6 6 What is Enterprise Application Management? Defining the Solution: EAM can be delivered as a managed service or as supplemental support to existing capabilities An Enterprise Application Management (EAM) partnership provides functional and application management of your integrated enterprise software packages by using a remote, leveraged, professional staff. EAM provides the services you need … Performed to the level you need them... Reliably, professionally and cost-effectively … In a partnership environment. EAM is about service and value

7 7 Services are based on a defined statement of work and service level agreements Transition Management (Start-Up) Program Management Level 2 Help Desk - Functional Support Application Failure / Resolution Analysis Minor Upgrades Application/Program Minor Enhancements Functional Extension / Major Enhancements Interface Failure Support Batch Job Failure Support Performance Tuning / Run Time Improvement Application Disaster Recovery Base EAM Services Service Overview

8 8 Uplifts: User Access Administration Premium Disaster Recovery Optimization (T&M projects): New Module Implementation Integration With Other Applications Major Upgrade Application Release Data Archiving and Retrieval Optional EAM Services Services are based on a defined statement of work and service level agreements Service Overview

9 9 Cost-effective, globally leveraged support... while maintaining a client-specific focus Product Specialists Industry Specialists Best Practices Repeatable Solutions EDS Solution Centres provide the leadership, expertise and best practices for EAM services Centres of Excellence Research & Development Knowledge Repository Partner Relationships Leveraged

10 10 EAM and Hosting Sales/Pricing Packages ERP Hosting Platform & Technical Delivery “…getting the application to the client” Outsourcing (transition existing) ERP Hosting (new set up) Sales Package #2 Sales Package #3 (Enterprise) Application Management Functionality Delivery “…managing the application functionality for the client”... Onsite Dedicated Remote Leveraged past history future direction Jointly Features/Functions Programming Configuration Interfaces Optimization Level 2 Help Desk (Functional) Data Center & Hardware Network (WAN) Level 2 Help Desk (Techn) Technical Delivery O/S Admin. Database Admin Application Admin (Basis) Level 1 Help Desk Patches/Upgrades Disaster Recovery Target Market Any size client Select industries ERP s/w installed ERP s/w not installed; EAM added to implementation and/or Hosting Services Clients beginning ERP (ERP hosting standard) Variety of client scenarios in between (ERP hosting custom) Client with ERP transitions capital & resources to EDS (outsourcing)

11 Ver MAR-28 Approaching Clients Approaching Clients Initial Conversations

12 12 EAM - Qualification Likely growth candidates for EAM services Currently uses one of the following ERP packages: – SAP – Oracle – PeopleSoft – JD Edwards Supports the application with in-house personnel, 3rd party services supplier, or with EDS dedicated personnel Wants to decrease expenses associated with supporting ERP Has a good relationship with EDS Wants to increase ROI on ERP investments NOTE: Detailed Sales Qualification Checklist is available on What We Sell

13 13 Now that you’ve had your “ERP” system running for awhile, how are things going for you? I know it takes a lot more than most people anticipate to support, and I was just wondering how you’re doing. Besides the hundreds of ERP clients we support today, EDS has internally implemented SAP - so we’re very tuned into the complexity of support and the end-user perspective of using ERP systems. How is your support team working out? What’s the satisfaction level of the users? Do you think you’ll be able to handle growth? Are you reaching your expected ROI? When EDS is not providing support today: Lead-in Conversation

14 14 Lead-in Conversation When EDS is providing on-site support today: Your discretion on starting a cost reduction conversation, but the reason for pitching EAM in this scenario: If EDS is contractually obliged to provide year-over-year reductions in the cost to the client to support the applications, while also maintaining the same or better service levels, EAM may provide a means of delivering to both goals. Be aware that if EDS is currently providing dedicated and/or on-site personnel without the year-over-year cost reduction commitment, the CDE may want to consider the switch to EAM at renewal time, as existing revenue streams can be at risk.

15 15 Differentiators Quality and consistency Cost effective and leveraged Service flexibility Customization and integration Industry and application knowledge Strategic partnerships Breadth of services portfolio Field proven methodology Best in class Help Desk Global infrastructure Technology vendor independence Measurable SLAs EDS Values Our Client Relationships

16 Ver MAR-28 Approaching Clients Approaching Clients How EAM Addresses Client’s Pain

17 17 Conquering the Complexity Finding Qualified Professionals Updating & Maintaining Skill Sets Staff Retention & Career Development Your Staff Strictly Focused On Core Business Meeting Your Customer Needs Controlling Cost & Meeting Expectations Access & Leveraging Global Professional Staff Partnering For Success What are the Goals - What are the Barriers (“Pain”) EAM

18 18 Value Proposition EDS clients can become nimble and market responsive in the new digital economy through the ability to rapidly reduce their ERP TCO (5%-30%), re-invest in e-business strategies, and improve business operations while effectively managing their value-add partners as a result of engaging EDS’ EAM Services

19 19 EAM Service Benefits Affect your bottom line using EDS’ knowledge of application strengths and areas for improvement Enjoy operations excellence and stability via repeatable, global methodologies Leverage a global resource pool, including ERP package and industry expertise Control IT spending with predictive costs Get the services you need, at the level you need them Accelerate your ROI as EDS stabilizes, optimizes and extends your enterprise solution

20 20 EDS Success Stories (always check latest referenceability) Oracle - American Axle – Dedicated on-site support SAP - Sterling Diagnostics / Agfa – Combination remote and on-site production support (previously all on-site) SAP - Getrag Gears North America – Remote production support (as needed; T&M) PeopleSoft - Nat’l Assoc of Securities Dealers (NASD) – EAM has been proposed; showed savings (currently all on-site) PeopleSoft - The Limited – EAM win with Apps Hosting (due diligence)

21 Ver MAR-28 Approaching Clients Approaching Clients Client Frequently Asked Questions

22 22 Client FAQ How does EAM affect ROI for ERP? By using a remote, leveraged delivery model, EDS can leverage resources across multiple clients, allowing each client to pay only for the amount of service required - not for full FTEs that may or may not be utilized 100% of the time. When EAM provides consistent services such that the ERP system integrity and availability are assured, clients are then able to provide consistent service to their own customers. EAM resources can bring to bear their experience caring for multiple clients to address certain issues of any one client. Additionally, the experience of an entire worldwide team of experts can be tapped into for quick resolution of any issues. EAM services are structured to help clients find areas for business improvements as well as IT improvements.

23 23 Client FAQ (cont.) What are primary cost drivers of EAM? Number of module suites - each suite (ex. Financials, Mfg, etc.) requires a separate functional skill set Types of module suites - Manufacturing and Payroll are complex and drive higher skill set and/or more volume of skill set Named users - drives Help Desk costs (logging, tracking, functional expert time spent, potential data errors) Interfaces - drives potential of ERP system failures Customization - amount and type of customization drives technical programmers and functional experts required NOTE: EAM is largely a labor intensive service using a specialized skill set, where the supply is far short of the demand - hence, the need to leverage what is available.

24 24 Client FAQ (cont.) How can I be comfortable with the support staff being remote? In today’s world, service companies are finding that the most economical way to provide consistent service to a large client base (especially using scarce specialized skill sets) is in a remote, leveraged model. If the service company can provide services in a way that are internally economically viable, the client price will be reflective of the efficiencies. Current technologies, standard methodologies, and collaborative processes allow the support staff “down the hall” of yesterday to be virtually anywhere in the world, yet able to provide support at a moments notice. The EAM Program Manager will be on-site periodically to ensure service levels are being met and collaborate with the client on the most effective and efficient direction for increasing the value of their ERP strategic asset.

25 25 Client FAQ (cont.) What kind of service level commitments can I expect? This is defined by the service level agreement. Service levels consist of standard base services, standard uplifts, and can extend to custom service levels. What kind of pricing can I expect? Pricing is driven by the number of seats being serviced, the number of ERP modules that the client uses, and the service levels that govern the relationship. An apples-to-apples comparison of in-house or dedicated service level costs with those of the EAM offering should conservatively yield a 10% or better reduction in support costs.

26 26 EAM Solution Alternatives 1 EAM with EDS Apps Hosting Assumed starting solution 2 EAM with client in-house managed hosting Slight increase in Help Desk and communication line costs; minimal collateral and delivery procedure updates

27 27 EAM Solution Alternatives 3 EAM with 3rd party managed hosting Slight increase in Help Desk and communication line costs; minimal collateral and delivery procedure updates 4 EAM plus Application Administration* services Additional FTE skill set and Help Desk (technical) ongoing costs; pull together EAM and Apps Hosting collateral and delivery procedures *Application Administration services (installation and tuning, application & db monitoring, performance admin., system admin., application upgrades) are typically sold under EDS Apps Hosting, but can be included with EAM if EDS is not the Hosting provider.

28 Ver MAR-28 Sales Support

29 29 EAM Pricing Tool Client Type Selection: DescriptionSelection Client Type Value 1.Number of Suites/Modules1-3 with No Payroll or MfgEasy1 2.Named Users50 or lessEasy1 3.Interfaces1-3Easy1 4.Customization Low - Med Standard2 Client TypeEasy5 The EAM Yellow Pad calculator (for SAP, Oracle, and PeopleSoft) allows EAM Sales Support to answer 4 basic questions about the client. Based on pull down menu answers, the tool will calculate the client category: Easy, Standard, or Complex.

30 30 EAM Pricing Tool (cont.) Each of the EAM Base Services is listed and defaults to “Yes” as a starting point for services selected. The service levels shown match the client category that was calculated.

31 31 EAM Yellow Pad Pricing Easy CostPrice One-Time Transition: $64,432$129,016 Monthly Recurring: $18,333$35,232 Standard CostPrice One-Time Transition: $124,701$249,396 Monthly Recurring: $79,905$152,608 Complex CostPrice One-Time Transition: $183,834$366,274 Monthly Recurring: $209,228$406,226 NOTE: Prices shown are reflective of market benchmarking for EAM specific rates.

32 32 Local Biz*net Leaders West –Michael Blank Southwest –Michelle Rund Midwest –Mark Grier Southeast –Rob Flowers Northeast –Bob Pelton

33 33 EAM Collateral/Tools “What We Sell” - external Fact Sheet Client Presentation (warning: includes speaker notes) News Release Proposal/SOW template (base services) EAM optional services SOW template Assessment Questionnaire TCO Worksheet SAP Services Continuum “What We Sell” - internal EAM Services List (“cheat sheet”) Yellow pad Pricing Tool ERP Outsourcing Characteristics EAM Delivery Overview EAM Contact List Sales Qualification Checklist EAM Overview (M-Show) EAM Regional Training Sample

34 34 EAM Launch Status United States: EAM for SAP launched at Sapphire / News Release - June 2001 Collateral / Sales Support for SAP, Oracle, PeopleSoft available SAP, Oracle and PeopleSoft delivery ready J D Edwards hosting alliance in progress - Host/EAM ready 1Q 2002 Other regions: Japan (SAP only) - 1Q, 2002 A/P South - 2Q, 2002 Canada - 2Q, 2002 EMEA - 2Q, 2002 Latin America - 3Q, 2002

35 Ver MAR-28 Regional Focus

36 36 Northeast Region Approach Prioritize the target accounts Develop “pre-conversation” strategy Engage clients with strategic business conversations

37 37 Potential Northeast Targets Could these accounts benefit from EAM services: EMC? JCrew? MassMutual? Merrill Lynch? NASD? AGFA? AT&T? BCBSMA? BSC? Citigroup? Phillip Morris? Primedia? Textron? Verizon?

38 38 Northeast Region Contacts Delivery –Mike Allen Sales Support –Kit McKee, RSE Manager –Dan Dillon

39 39 Was today’s session valuable to you? 1.Strongly agree 2.Somewhat agree 3.Disagree 4.Strongly disagree

40 40 Do you think what you learned here will help you meet your targets for this year? 1.Strongly agree 2.Somewhat agree 3.Disagree 4.Strongly disagree

41 41 Do you see how you can increase revenue with your client short term? 1.Strongly agree 2.Somewhat agree 3.Disagree 4.Strongly disagree

42 42 Thank you for participating! You can find EAM collateral / tools at the following URL: A copy of this presentation can be downloaded at:

43 43 Replays of the EAM Growth teleconference are available from Nov.2-Nov.9 Call Further information

44 eds.com

45 45 MPM Global Offering Manager – Kelly Annarelli (CO) MPM Sales Readiness Manager – John Lillwitz (IL) MPM Segment SME – Ken Davis (TX) EAM Contacts (U.S.) Service Line Delivery Manager – Joe Buczkowski (MI) MPM Marketing Communications – Chan Chandler (TX) – Steve Carter (TX) MPM Sales Training – Susan Giesing (KS) E.solutions ERP Practices – Art Worster (NJ)


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