Serena Project Case Study Sapphire, Atlanta April 23, 2007

2 Agenda ► Project Mission Statement ► Challenges ► Partner Selection ► Summary ► Scope, Timelines ► Best Practices Adapted ► Benefits Realized ► Kudos

3 Serena’s Project Mission Statement “Build the foundation for strong business processes through a solid long term enterprise system strategy creating competitive advantages and cost savings for Serena” ► Business Drivers  Improve existing business processes and procedures  Leverage new system functionality  Adopt best practices  Improve quality of business data stored  Accurate reporting of business data ► Project Goals ► Combine Technical and Functional upgrade ► Conversion of Fiscal Year variant to be done in one step ► Harmonize business process as per requirements of Serena ► Cleanse Master Data to facilitate better Information System ► Remove redundant and unwanted configuration and programs ► Enhance performance of SAP system

4 Challenges ► 4.5B Unsupported version ► Large backlog of support packs, enhancement requests & bug fixes ► Many customizations – no documentation ► Redundancy  Multiple redundant ABAP objects – only 127 of 1700 objects in use  Redundant Configuration ► Data Quality  Lack of Archival Process ► Convoluted business processes  Fiscal Year Variant  Revenue Recognition reconciliation  Complex Legal consolidation with 17 countries and more than 80 company codes ► Increased on-going costs

5 Partner Selection ► Partner Selection  Desire to engage experienced partner  Not many options due to new technology  Cognizant –  Vendor engaged in R&D  Successful assessment study conducted  Recommend to move beyond Technical Upgrade  Depth of Domain knowledge and Technical Expertise

6 Summary Project objective Background

7 Scope Matrix Business Scope Serena Module Scope FinanceMaterials Management Sales & Distribution IS – SoftwareHuman Resources Geographic Scope AmericasEMEAAsia Pacific Technology Scope ECC 5.0 with DIMP Interface Scope TaxwareCBIUPS/Non UPS shipping Serena Intranet HR Online Reports Standard SAP reports Minimal Customized reports Data Conversions Master data loads Open transaction data B C A F D E G

8 Project Timelines

9 Best Practices Adapted ► Project Management  Course Corrections – Resourcing, Communication  Optimum Communication levels  Weekly Core team  Weekly Status Review meeting  Monthly Steering Committee  Focus on Business Benefits in Blueprint phase  Scoping frozen in Blueprint phase  Adherence to Change Control processes  Capping of FRICE Objects  75 person-days of effort  Continuous effort estimation and prioritization done to limit Development ► Teamwork  Excellent Team – Onsite, Offshore and Core team  Team Chemistry/teamwork (no personal agendas)  Rapport/Credibility of Cognizant with with key stakeholders  Flexibility from Serena and Cognizant resources ► Executive Buy-in  Senior Management Buy-in and Support  Monthly Steering Committee Meetings

10 Successful Execution

11 Benefits Realized ► Standardization  Migration of highly customized processes to SAP Best Practice standardization (i.e. Fixed Asset module was 99% customized and is now 99% standardized)  Standardized Customer Site Identification numbers. ► Usability  Clean system without irrelevant data, reports, configuration, result in dramatically improved usability. This has also shortened the time to train a user ► Accuracy  Validations and controls built-in prevent incorrect calculations and unexpected results  Automation of exchange rate load prevent errors in loading  Order Entry Pricing Conditions re-designed which result in more efficient and accurate order entry. This in turn improves business data for analysis  Customer Master Data scrubbed which result in improved ability to analyze customer base ► Productivity Improvement  Cleanup of transactional data result in significantly shortened processing time for SAP Revenue Recognition  Combination of Pricing Condition Re-design and Deferred Revenue Recognition re-design result in dramatically improved deferred maintenance revenue recognition process  Automated re-measurement of foreign currency accounts (re-measure from monthly exchange rates to month-end rates)  Development of new chart of accounts and profit centers with contiguous account groups allow for scalability/growth without modifications to existing reports

12 Benefits from Data Cleanup

13 Kudos