Project Update Effective Product Launch Vendor Integration Inga Broerman Black Belt Marketing - Corporate

2 Project Definition Problem Statement: n Poor integration with vendors results in IKON Launching new products significantly behind vendor launch date n This results in lost revenue and decreased share of targeted markets as competitors take advantage of IKON's lack of access to new products n In the past 12 months, for the 27 new products introduced, the average number of days past vendor launch date to launch a product was 36 days, resulting in $X,XXX missed revenue opportunities (data not finalized due to Measurement Systems issues) Project Definition: n This project will define the current process used by our key vendors and IKON when launching a new product and identify areas to improve the processes and the integration between the processes to ensure IKON readiness to go to market effectively on product launch date. n This project will look at launches of new products, replacement engines and enablers. Excluded are IKON branded products, accessories, and IKON launches of products in which we assume product distribution for existing manufacturer product.

3 Project Definition Project Objective: n Reduce days past vendor launch date that IKON Product Marketing is prepared to launch new products. Project Benefits: n Revenue associated with increased volume of products placed during product lifecycle n Being able to hit the market effectively on Day 1 enables IKON to capture the share generated early in the launch phase and increase total number of selling days at full volume Financial Benefit: n Average Sales per day of new products (based on forecast) n Revenue per unit / OI per unit n Days Decrease in launch lag = additional annual revenue

4 Project Definition, Cont’d Project Metric “Y”: n Big Y = Days lag in IKON product launch behind Vendor n Project Y = decrease days lag to target Product Marketing Process Capability Defect Definition: n Days past vendor launch date IKON launches new products outside reduction targets Leveragability: n Project around vendor integration may have leveragability in future projects around: n supply chain interactions n training n service

5 Project Team n Black Belt – Inga Broerman n Champion – Steve Poole, Kim Castagnetta n Financial Analyst – Jason Henson n Process Owner n Annette McCrary, Director, Product Marketing n Mike Dane, Director, Product Marketing n Key Team Members: n Tim Bach, Product Marketing - Data n Keith Audit, Product Marketing – Pricing n Eric Dettman and Meghan Toomey, Marketing Communications - Collateral n Brian Bennett & Elaine Chacko, Common Coding n Dan Nero, Professional Services n Don Hebert, Field Service n Michele Dyer, Law Department n Master Black Belt – Bob Conrad

6 Background – Current Process n Due to structural changes within Marketing, processes around Product Launch are no longer valid n Data regarding Launch Dates, key input variables and high level benefits around timely product launch have not been tracked n Initial Six Sigma project focused on launch of replacement engines, however, placement data demonstrated limited revenue benefits n Project scope was amended to include launch of all products, including enablers, new products and replacement engines n Product Marketing manages the process of product launch and promotion to the field n Various ‘sign-off’s’ are required to launch a product at IKON: Service, Service Training, Professional Services, Pricing, Systems Update (Oracle, OMD) and Supply Chain n Receipt of information from vendors is one inhibiting factor in launching products n Three key areas have been identified by the Process Owners as Key Inputs: n Service Guide / Training Planning n Oracle Configurator n Launchpad Updating

7 SIPOC

8 SIPOC (Extended Version)

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10 SIPOC (Extended Version)

11 CTx Identification n Customers n Sales Reps / Managers / Senior Sales Management n End User Customers n Y = Effective Product Launch: Product Marketing Vendor Integration n CTQ n Product Positioning n Approvals n CTD n Predictable Launch Date n Information available to field n Training Prepared n IKON System Readiness n Availability of Information to Product Marketing Team n CTC n None Identified

12 CTS Flow down

13 CTS Flow down

14 Process Map – High Level

15 Process Map – Detail

16 Data Collection for Y n Historic: n Data provided not able to be reproduced n Data will be validated by vendor according to defined standards n Develop Tracking System for Launch Dates, with Definitions & Processes n Date of Initial Notification n Date of Receipt of Final Product Information n Turnaround of Internal IKON processes n Test Definitions with Process Owners with Hypothetical Launches n Track Product Launches through Sept-Oct

17 Financial Impact (Sample) Historic Monthly Volume at full Ramp Average Sales / Peak Average Revenue Per Unit Daily Revenue OI Per Unit Daily OI Days Past Vendor Launch Hypo Days to Improve Annual revenue (based on improve days during year) Annal OI Ricoh Aficio 1060/ $ 16,100 $ 189,9808% $ 15, $ 2,849,700 $ 227,976 Canon Color imageRUNNER C $ 17,508 $ 228,1888% $ 18, $ 6,845,628 $ 547,650 Ricoh FAX5510 and FAX4410 Series $ 2,407 $ 11,2338% $ $ 718,891 $ 57,511 Ricoh FAX1160L Laser Plain Paper Facsimile $ 717 $ 1,6018% $ $ 176,143 $ 14,091 TOTAL: $ 847,229 Four Representative Products:

18 Data Analysis: Value of Data Note StDev Issue: Volume of Transactions very small

19 Data Analysis: Target Areas Specific Product Groups Have Issues

20 Analysis: Improvements Made Over time, lag has lessened, but is still significant