1ONYX Confidential

Coffee Retailer Case Study

September 2006

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Agenda

Overview

Implementation

Benefits

Lessons Learnt

Q & A

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Agenda

Overview

Implementation

Benefits

Lessons Learnt

Q & A

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Company Mission

Guiding Principleso Provide a great work environment and treat everyone with respect

and dignityo Embrace diversity as an essential component in the way they do

businesso Apply the highest standards of excellence to the purchasing,

roasting, and fresh delivery of coffeeo Develop satisfied customers all of the timeo Contribute to their communities and environmento Recognize that profitability is essential to their future success

To become a great, enduring company with the most recognized and respected coffee brand in the world, known for inspiring and nurturing the human spirit.

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The Company Before ONYX

o B2B - Sales Force (Foodservice & License Stores)

Variety of spreadsheets, Access Databases, misc. systems to track sales leads through B2B support

o B2C - Customer Care Center

Access Database -> Contact management system

Various tools for servicing customers needs (warranty database, intranet, sbux card tools…)

o B2E - Employee Shared Services

Contact management system

Access database for Employee Record Services

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Issues Before ONYX

Challenges:o Lack of comprehensive customer databaseo Had no true SFA – groups were using spreadsheets and

opportunities were falling through the crackso Lack of effective lead management process & pipeline visibility o Not able to capture, measure, and resolve customer issues

Results:o Redundant data stores and inefficient sales processeso Loss of intellectual propertyo Customer attritiono Lost revenue opportunitieso Heavy administrative burden on our sales force

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Onyx Implementation Executive Overview

Ο Three departments use Onyx as primary system, six additional departments use Onyx as secondary system

Ο Nearly 100% End User adoption

Ο Implementation went smoothly despite major acquisition during project

Ο Efficiencies gained via process automation (Marketing Wizard and Equipment Configurator)

Ο 59% increase in lead follow-up and 17% increase in lead closure

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Agenda

Overview

Implementation

Benefits

Lessons Learnt

Q & A

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Implementation OverviewOver 1,000 users in three business groups

o B2B - Sales Force (Foodservice & License Stores) Foodservice Launched Summer ‘03 Added Foodservice support Fall ‘03 License Stores launched Spring ‘05

o B2C - Customer Care Center Contact Management Launched Summer ’04 – replacing

previous system and Warranty Database Warranty, Customer Card, Nutrition, Feedback

o B2E - Employee Shared Services Contact Management Launched December ’04 – Replacing

previous system and Access Database

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Implementation Approach

1. Used a phased approach: Prove success then share with others.

2. Evaluated and re-engineered the business processes first.

3. Established strong support structure along with “carrots and sticks”.

4. Focused on business unit(s) with highest desire and highest return

Foodservice

Licensed Stores

Customer Care Center

Employee Shared Services

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Business Objectives:

1. Improve lead management – follow up and closure

Improve customer experience and company effectiveness

Website, phone, and Distribution Partner

2. Increase customer retention

Improve customer “touch”

Enhance cross-functional communications and increase accountability

Build customer knowledgebase

3. Automate workflow and reduce non-value added tasks

Improve the company’s employee experience and their own professionalism

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ONYX Answero Automatic lead routing based on customer segments and territory assignments

o Automated workflow through sales cycle including pre-populating required forms for customer setup

o Single repository for customer relationship information with one-click access to financial transaction reports

o Portfolio management across all brands

o “Equipment Wizard” to automate selection and manage costs of brewing equipment

o “Marketing Wizard” to automate selection and manage costs of marketing materials for the brew location

o Reps can use wireless “Hotspots” at the stores or connect to the network once back at their offices

o Customer Issue Tracking

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Agenda

Overview

Implementation

Benefits

Lessons Learnt

Q & A

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Key Successes and Challenges:

Successes:

o Great team and collaboration

o Business users at all levels engaged

o Successful initial project led to expansion of Onyx at Company

Challenges:

o Redesigning business processes in dynamic environment

o Acquired an additional coffee company after design complete and development underway

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Business Results:

1. Improved lead management – follow up and closure

o Improved customer experience and organizational effectiveness

o Website, phone, and Distribution Partner

Results: Increased follow up and closure = increased revenue

Increased lead follow up by 59%

Increased lead closure by 17%

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Business Results:

2. Increased customer retention

o Improved customer “touch”

o Enhanced cross-functional communications and increased accountability

o Built customer knowledgebase about how to best serve key customers

Results: Supported new customer touch strategy to improve experience.

Onyx directly contributed to a 4% increase in customer retention

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Business Results:

3. Automated workflow and eliminated non-value added tasks

o Improved the partner experience and our professionalism

“Aim (Onyx) has been a tremendous time saver and benefit for me and my team. It has allowed me to reassign account installs in seconds and follow-up on important information that is needed to do business.” ~Account Services Manager

“Getting info to the field is much easier now through Notes in Aim. We can see why there is a hang up in the process that needs to be resolved.” ~ Equipment Coordinator

Results: Company previously used Excel forms for new account set-up but replaced that with automated processes and workflows. This in turn led to efficiencies gained and higher customer satisfaction.

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Agenda

Overview

Implementation

Benefits

Lessons Learnt

Q & A

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Business Challenges

Ο Business focused on Product and operating in Silos• Hard to agree to change

• Business units competing

• Poor alignment of business units with CRM strategyΟ Changes to business requirements during implementation

• Parallel development

• New user base introduced with extensive requirements

• Significant changes to specification due to some unfamiliarity of business reps with terminology and concepts

Ο Project dependencies on internal resources• Continuous shifts in priorities of multiple parallel projects

• Unclear direction regarding management of shared IT and user resources

Ο Large User Base• Complex logistical exercise to train and deploy to entire organization

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Project Challenges … and how we overcame themΟ No strong business ownership & difficulty in making decisions

• Ensured options are discussed with all business units• Strong recommendations made to direct decision

Ο Aggressive timeframes• Strong development team to implement on time• Ensured clear definition of requirements prior to implementation• Unit testing by business resources prior to System Test• Quick turn around of bugs identified in System Test and User Acceptance Testing

Ο Silos• Involved all related business areas in requirement gathering and sign off • Business Owner working with Business units to improve alignment

Ο Many change requests & last minute changes to significant areas • Ensured implications are understood• Made no promises that we can/cannot deliver• Used strict change control• Clear understanding of requirements and business justification

Ο Business and IT commitment to dedicated resources to the project• Ensured quick turn around of user requirements, issue resolution, decision, sign-off, etc• Empowered user representatives with business knowledge and deep experience

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Lessons Learned

Ο Understanding of business objectives and strategies • Ensure the project resources are clear about what we’re trying to accomplish• Leadership required to ensure that focus is maintained on the business objectives

Ο Understand the client’s environment• Political environment• Past technology development and deployment history• Ensure adequate time is scheduled for testing

Ο Educate the business• Educate the business in both CRM concepts and Onyx system• Ensure that business is clear on why design is taking certain directions

Ο Walk through of all requirements and solution with client• Prototypes are not always necessary but can come in handy at times

Ο Keep it simple! First release should encompass as much out of the box functionality and user interfaces as possible

• Allows to bring client business and technical resources up to speed before tackling complex business rules

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Lessons Learned

Ο Onyx knowledge on both business and development side essential• Ensures fast and error free implementations, especially under time pressure

Ο Large projects require dedicated business/IT resources• Ensure high quality deliverables at the front end of the development cycle• Ensure resource have the right level of skills – poor resources may impact

project delivery• Ensure resources are placed in roles appropriate to their experience/skills

Ο Ensure there is one central project plan• Client implementation methodologies may require separate plans for business,

development, deployment etc. • Watch for shared resources

Ο Beware of Change Requests• All changes, no matter how small should be documented as change requests, …

even if implemented at no cost (e.g. Configurations)• Explain implications of the decision to the Client• Allow client to make the final decision

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Implementation Success Factors

Ο Support from executives • worked collaboratively on a number of challenging issues

Ο Great Client Delivery Team• Always aimed to deliver the best result and highest quality• Dedicated resources, followed our advice/direction• Delivered on time and on budget

Ο Cultural Change Program• Develop and implement a cultural change program before deployment of

systems. Focus on• Measures – customers and activity that support strategy• behaviours

Ο Training• A very successful training program developed for the client

Ο Technology• Strong technology platform

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