© 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Adaptive Enterprise Business and IT Synchronised to Capitalise on Change “Name” “Title”

2 Discussion topics The CIO’s balancing act The Adaptive Enterprise BMW’s journey Partners Play Vital Roles Customer Validation Adaptive Enterprise today

3 Mitigate risk: Ensure security and continuity of internal business operations, while minimising exposure to external risk factor Maximise return: Improve business results; grow revenue and earnings, cash flow, reduced cost-of-operation Improve performance: Improve business operations performance end-to-end across the enterprise Increase customer and employee satisfaction Increase agility: Enable the business organization and operations to adapt to changing business needs The CIO’s balancing act

4 The Adaptive Enterprise Business and IT synchronised to capitalise on change Business Information Technology Business benefits: simplicity, agility, value

5 Integration Simplification Standardization Modularity Applied consistently across: Business processes Applications Infrastructure Adaptive Enterprise design principles Reduce number of elements Eliminate customisation Automate change Use standard technologies and interfaces Adopt common architectures Implement standard processes Break down monolithic structures Create reusable components Implement logical architectures Link business and IT Connect applications and business processes within & outside the enterprise

6 Darwin Architecture for the Adaptive Enterprise Apply key design principles consistently across business, application, infrastructure −Simplification −Standardisation −Modularity −Integration Holistic approach: Integrate people, process and technology IT business management Service delivery management Service delivery Business services Application services Infrastructure services Business objectives and strategy Enterprise

7 Moving from maintenance to innovation IT Future State Application Maintenance 15% Application Innovation 45% Infrastructure Innovation 10% Infrastructure Maintenance 30% IT Current State Application Maintenance 30% Application Innovation 23% Infrastructure Innovation 5% Infrastructure Maintenance 42% Source: HP IT department, 2004

8 Business and IT synchronized to capitalize on change Adaptive Enterprise benefits SimplicityAgilityValue Reduce IT cost and complexity Reduce business operations costs Make it easier to implement change Ensure resources work together Adapt in real time to business needs Drive change (time, range, ease) Improve business processes Accelerate time to market Unlock the value of assets Free up resources for innovation Increase revenues and profitability Create competitive advantage

9 Adaptive + Business process + Time to value + Dynamic & synchronized + Flexible Becoming an Adaptive Enterprise is a journey CIO focus areas Operational Transformational Managing critical transitions, while architecting and innovating for the future Efficient + Applications + Quality of service + Virtual & managed + Optimized Business value of IT Stable IT infrastructure Keep it running Simplified & standardized Predictable Architecture Economics Focus Objective

10 Partners Play Vital Roles IT business management Service delivery management Service delivery Business services Application services Infrastructure services Business objectives and strategy Enterprise OpenView and Development Partners VAR’s Integrators Service partners Management & Solution partners The Adaptive Enterprise journey leverages every type of HP partner Business consultants

HP July “A program which allows partners to dovetail their offerings into the AE messages from HP with a simple engagement model is a great step forward.” “This is a great offering to open the door and add immediate value as so many users are addressing this issue right now.” “Our entire services team has started to reorganize our offerings to fit around the Adaptive Enterprise message.” Our partners believe in the Adaptive Enterprise opportunity - Michael Scoby, American Digital - Richard Hall, Morse (UK) - Paul Winbauer, Avnet AES

HP July Validation of Adaptive Enterprise Leveraging the best of the industry Technology partners Software partners System integration partners Channel partners

13 Business needsCustomer benefitsHP solution Adapt to business needs, drive profitable growth On-line config, pricing & ordering of new vehicles New support center for 45,000 users, 12 locations Consolidate data center for flexibility, manageability Upgrade financial services network Improve CAE performance Managed service for multi- vendor storage, exchange and backup on demand StorageWorks SAN with 12 XP arrays, 10 virtual arrays, FibreChannel 4 Superdome servers (Integrity & HP 9000); 150 clustered ProLiant servers New CAE Bench using HP-UX and Linux HP Indigo printing press BMW is a global automotive manufacturer with 116,000 employees, 5 plants, 35 sales companies, and 6,000 dealers The HP difference Utility solutions Project management Portfolio breadth Simplicity Storage TCO reduced by 20% over 3-year period Agility Faster time to market Fastest possible reaction to unplanned requirements Value Improved customer management Volume printing of personalized brochures BMW’s journey We need Partners to enable this type of engagement below our top 1000 accounts

HP July An Adaptive Enterprise helps you achieve greater simplicity, agility and value across your organization. It makes your business – not just your IT – more efficient and effective. HP creates strategic alliances and partnerships with trusted companies with which we share vision, values, and an opportunity to gain competitive advantage. These relationships enhance customer value, provide access to new markets, create and improve business models, and stimulate demand for HP and partner solutions. Summary - Adaptive Enterprise today