bod draft kiedaisch v3

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1November 6, 2009 PBI Confidential

Strategic transformationbusiness process redesign and interlock

Presenter

October 27, 2009


2/25


Transforming the Enterprise

Transforming Selected Business Processes

Standardizing Business Processes

Changing the Technology Platform


Big T EnterpriseTransformation

ProcessTransformation

ProcessOptimization andStandardization

TechnologyUpgrade /Implementation


3/25


Planning

Architecture

Strategy

Operating Model

& Business Rules

Vision

Strategies& Goals

Business Practices& Policies

Business Requirements

Capabilities

Governance

Program Evolution

Vision

Affordability Model

180 new practices

400 revised policies

5000 business requirements

End-state Architectures

(IT, Capabilities, Customer)

Roadmap

Risk Assessment

Business Case


4/25


VisionAffordability Model

180 new practices

400 revised policies5000 Requirements

RoadmapRisk AssessmentBusiness Case PhaseII ($TBD)

Q2 Q3 2011Q4 Q1 Q2

OTC:

- Standardorder-2Bi lls,2A/ Rs- 1collection

(platform)Service:

- CaseMgmt

Sales& Mktg : SinglePQCWeb:

-E-commerce-B2B

Credit:

- Real -timerisk -basedcreditpricing/collections

- USMSMexposure

Servi

- Fi- C

Expa

Credi

Data:

IT:

Care:

- Partner/facilityconsolidation- NAtelephonynetwork

Service:

- WorkforceOptimization

OTC: Expandto USManaged, DMT,MVS,Secap

Care/OTC: Shutdo

wnlegacy processesWeb :Technical SupportData: MSMcustomer, product, offer, pricingIT: ShutdownUnisys, IMS, CIS,SCM

legacy, PathfinderAll: KnowledgeBaseManagementService: Remotediagnostic

Care:

- UniversalC- Casemgmt

IVR: CareselfWeb: CaresData: Custom

Su

-A-M-E-Cl

-Int

-N

.FastTracks(seeright)

FastTracks

Sales: Sellmoreon pb.com

Sales: GrowInside SalesCare:Drivecustomersto myBill

OTC:Property Tax

OTC:Drive ACH

Credit: Collect TINsService: Shift moretech support tot hephone

Service: Shift moretechsupport totheweb

SupplyChain: Enact Portfolio ManagementTeam(end-of -life)

ScenarioComparison

Proposedvs Current

($Exact)

(inmillions)

Annual Costs:

Current Year

A ct ua l B as el in e Y ea r 1 Y ea r 2 Y ea r3 Y ea r4 Y ea r5 T he re af te r T ot al

C ap it al I nv est men t -$ (3.979)$ (35.218)$ (30.720)$ (13.187)$ (0.151)$ (0.860)$ (84.115)$

YearlyExpense-Proposed -$ (0.050)$ (45.109)$ (42.098)$ (29.046)$ (20.926)$ (90.046)$ (227.274)$

YearlyExpense-Current/Doothing -$ -$ -$ -$ -$ -$ -$ -$

Annual ExpenseVariance -

favorable/(unfavorable) (0.050)$ (45.109)$ (42.098)$ (29.046)$ (20.926)$ (90.046)$ (227.274)$

Incremental EBIT (0.050)$ (33.167)$ (21.549)$ 45.080$ 63.670$ 340.484$ 394.469$

End-state Architectures(IT, Capabilities, Customer)

W

orkstr

Practice

Policy

I D ProposedPractice

As-Is

Polic

y

Policy

Summa

ry

Descrip

tion

Plii Ruir

ActualDatePolicy

Published

2 1 0 2.1.0

Dr iv u r h b

forendtoendcapabilities

(e.g.,res earch,purchase

products/services,&cust omer

support) 19-May

2 1 1 2.1.1

y w y w v v

customerstothewebforendtoendcapabili tiesthroughoutthe customer's

lifecycle. 19-May

2 1 2 2.1.2

w

togotothewebf orendtoendcapabilit iesthroughoutthecustomer's lifescycl e

22-May

2 1 5 2.1.5

yw y

customerlifecycl efromallcust omerfacingorganizationswill includethePit ney

Boweswebsiteandrelevantl inksbasedonthetype ofcommunicationandformat

ofcommunication(electonic, paper,product,etc) . 19-May

2 1 6 2.1.6

y w y w

ensureawebexperiencethati scustomerfriendlyanddoesnot exposeinternal

complexities. Thewebsitewill beevaluatedregularly. Contentwillberef reshed

andusabilityenhancementswillbeimplemented.

-Simple- makethemessageanddialogueunderstandableforthecustomer(eliminate

marketing/product/service/salesjargon;don'trequireaPhDtogetit)

-Helpful-fullyaddressthecustomer'sneed/objective(rightinformation;nooverload;

solvetheproblem;relevant)

-Alternatives-giveoptions;personalized;beabletoserveinyourcustomer'schannelof

choice-Reliable-consistentoutcomesal lthetime,ineverychannel

-Easy-easytouseanddo(nounnecessarycomplexity;intuitivedesign;features) 22-May

2 1 7 2.1.7

y w w v y y

aboutitsEmployees,Customers,BusinessPartners( includingcontactswithin

CustomersandBusinessPartners)andotherident ifiablei ndividuals.Uniform

guidelinesforcollecting,using,disclosing,s toring,accessi ng,transferri ngor

otherwiseprocessingsuchinformationassistsPi tneyBowestoprocessPersonal

Informationfairl yandappropriately,di sclosingitand/or transferringit onlyunder

appropriatecircumstances. 19-May

2 1 8 2.1.8

PitneyBowesmaycollectpersonal informationfromvisitorst oPitneyBowes

InternetWebpages.Theinformati oncollectedmayincludenameandaddresses

(postalore- mail),tel ephonenumbers,orother informationnecessaryto fulfil l

orders,providerequestedservices, orforotherPit neyBowesbusinesspurposes.

Establishinguniformproceduresforthecol lectionanduseof personal

informationinafair andlawfulwaywill enhanceconsumertrustandconfidencein

dealingwithPitney Boweson-line. 19-May

2 1 9 2.1.9

PitneyBoweswilldevelopandi mplementspecificproceduresrel atedtothe

treatmentofpersonal informationandprivacy. Trainingmaterialswil lbe

developedanddeliveredtoall employeeswithaccess toorresponsibility for

customerinformation.Employeesmustcompletecer tificat ionfortreat mentof

personalinf ormationandprivacyat leastannually. 19-May

2 1 13 2.1.13

Inordertosimplifyandstreamline processes,PitneyBoweswill createone

standardizedproductidentif ierforapr oductorserivcewhichwill beconsistent

acrossmasterdataandut ilizedbyall organizations,includi ngthecustomer.

22-May

2 3 0 2.3.0

Pricingwillbemanagedand

controlledbymarketingwit h

thegoalofminimizingmanual

exceptions. 26-May

CustomerMaturityModel

0

1

2

3

4

5

Resp

ondto

ema

ilma

rketi

ng

Visit

thew

ebsit

e

Rece

ivereco

mmen

datio

nfro

man

othe

rcus

tome

r

Callf

orpre-

sales

infor

mati

on

Cond

uctn

eeds

asse

ssm

entv

iaonlin

e

Resp

ondto

web

mess

agin

g(no

n-PB

)

Make

online

purc

hase

Buy

viaph

one

Buyfro

maf

ield

sales

perso

n

Choo

sebu

ndle

viaonlin

e pr

oducts

electo

r

Make

paym

ents

elec

tions

Acce

ptterm

sand

cond

itions

Prov

ideacc

ount

info

rmati

onandp

refer

ence

s

Rece

iveno

tice

oford

er/ship

men

tstat

us

Cond

ucts

elf-in

stalla

ndsta

rtup

Rece

ivein-fi

eldinst

allat

ionand

train

ing

Assu

reuse

rsco

mfor

table

with

pro

duct

Retur

nand

repl

ace

prod

uct

Mak

eonlin

epa

ymen

ts

Conta

ctPB

forb

illing

and

pay

ment

supp

ort

Rece

ivebillin

gadju

stmen

torr

efun

d

Mana

geposta

gea

ccou

nt

Buy

supp

lies _

__%

Seek

diag

nosis

forp

rodu

ctprob

lems

Rece

iverepla

cem

ento

rons

itesupp

ort

Seek

tech

nical

supp

ortforp

roduc

tusa

ge

Rece

ivenotic

eof

asafe

tyor

pro

duct

reca

lliss

ue

Adop

trat

eand

regu

lator

ycha

nges

Asse

ssPB

alte

rnati

vesto

impr

ovebu

sines

s

Mak

ea

modifica

tion t

oan

exist

ingagr

eeme

nt

Rene

wan

agre

emen

t

Canc

elabu

sines

sarr

ange

ment

Resp

ondto

aPB

cust

omer

sur

vey

Parti

cipat

e in

user

trai

ning

Acce

ptth

e role

ofpu

blic

advo

cate

forP

B

MaturityLevel

Target

Current

Field Sales(Siebel or SFDCn

a

Channels& Portals

Logical

Layer

Call Cent(Siebel)

IVR, CTI &Segmentation

Field Sales(Siebel or SFDCn

a

Channels& Portals

Logical

Layer

Call Cent(Siebel)

IVR, CTI &Segmentation

LeadershipCommitment

Input

Define Business

Practices, Policies &Requirements

CapabilitiesAssessment

Governance

Strategy

Operating Model

& Business Rules

ClearArchitecture

Planning

Output Leverage

Program Evolution


5/25


Product

Servicing Model

Infrastructure

Customer

Experience

Hardware, software Service, supplies Financial Services

Simple, standard and cost efficient Customer choice and convenience Re-vamped customer oriented practices

Predictable and transparent offerings One commercial relationship

Convenient, multi channel engagement

Simple, highly automated transactionsStandard contractsCommon and shared technology

TransactionalModel

Simplifying Through Transformation


6/25


Customer Experience

Simplifying the Transactional Model throughTransformation

Product

Servicing Model Infrastructure


7/257November 6, 2009 PBI Confidential

OtherLOBs

BusinessOperations

StaffManagement

VendorManagement

CoreMailing

BusinessOperations

Information Technology

Data Cleansing & Conversion

Consultants

BusinessITData

Telephony

Telephony Technology

Technology Staff

ExternallyRecruitedemployees

Technology Architecture

Program Management Model

Customer Change Management

Employee Change Management & Training

Quality, Testing & Compliance

PMO & Governance / Value Realization

Business Expertise

Program Governance

Master Data Management

Business & Process Integration

User experience (Web, Contact Center, IVR)

CORETR

AN

SFORMATIO

NTEA

M



DiscoverService

Sign-UpBuy

OrderActivate

UseService

Pay forService

ResolveIssues

Stop/ChangeGrow

Marketing &

Communications

B2B

eCommerce

Support & Service

SAAS / On Demand Services

Function Goals and Benefits

Marketing &

Communications

Life-cycle communications

Digital Merchandising & PB Digital Experience

eMail & Community Management

Optimized selling & marketing

Increased PB wide cross selling

Lower communication cost / contact

B2B eCommerce eCatalog Configuration, eCommerce

Enterprise Client Bonding

eSignature & Subscriber Management

Increased B2B channel revenues

Clean & accelerated order management

Compliance to contracts

Support & Service Enterprise Relationship Mgt

Self-service content & knowledge development

Self-Service capabilities deployment

Call Avoidance / Productivity

Increased customer satisfaction

Increased A/R velocity, lower print costs,lower collection costs

SAAS/

On Demand

Develop experience and capabilities tointegrate and deliver new on demand andinformation based offerings

New offerings to new segments

Web Enabled Customer Centered Framework

User Experience



Capability Reduction inComplexity

Drivers

Price Quote andConfiguration

80% Single Price Quote and configuration enginefor all channels

Order Management 60% Streamlined Order Management systems and

processes

Contract Administration 75% Unified contract creation and maintenance

Billing and Cash Application 80% Dramatic reduction in number of billsgenerated and managed

Inquiries 80% Elimination of systems needed to respond to

customers requests

Contract Terminations 30% Reduction in contract systems

Impact


10/25


Risk Profile

BusinessRisk

1. Identify

3. Assign

4.Mitigate

5.Monitor

2.Assess

ChangeMgmt.

TalentProject

Operational

Compliance

Data

Technical

Culture

Competence

Capacity

Realization of Strategic Objectives:Simplification & GlobalizationImprovements to the Customer Experience



Traditionally At Pitney Bowes


11/25


Key Considerations

Incr

easingIm

por

tance

Realization of Strategic ObjectivesSimplification & GlobalizationImprovements to the Customer Experience

Avoidance of Organizational Fatigue

Capacity to Deal With Technical Complexity

Pace of Financial Costs and Benefits

Degree of Organizational Disruption

Organizational Readiness for Change


12/25


Critical Issues to Address

Need forspeed!!....and the gravity of history.

Capacity to absorb change...and challenge to drive growth

Lack of process expertise...functional view vs. E2E view..

Accountability modelOwnership and empowerment

Global leverage..how to tap into diverse talent pools.


13/25


Backup


14/25


Value Realization

Master Data Management

Customer Change Management

Employee Change Management & Training

Quality, Testing & Compliance

PMO & Governance

Business & Process Integration

User experience (Web, Contact Center, IVR)

Information Technology

Data Cleansing & Conversion

Consultants

(i.e.Business

ITData

TelephonyEtc)

Ven

dorManagement

CoreMailing

BusinessOperations

CORE TRANSFORMATION TEAM

Sta

ffManagement

Tailor &Sell

OrderTo Cash Service

& Support

Procure

to Pay

Manage

Finances

Business Expertise

Program Governance

Telephony Technology

Technology StaffOtherLOBs

BusinessOperations

ExternallyRecruited

employees

Technology Architecture

Program Management Model


15/25


Vision

Strategies/Goals

Business Requirements

Business Practices& Policies

Strategy

Operating Model

& Business Rules

Planning

Vision

180 new practices

400 revised policies

5000 business requirements

Roadmap

PhaseII ($TBD)

Q2 Q3 2011Q4 Q1 Q2 Q3

OTC:

- Standardorder-2Bi lls,2A/ Rs- 1collection

(platform)Service:

- CaseMgmt

Sales& Mktg :SinglePQCWeb:

-E-commerce-B2B

Credit:

-Real-timerisk -basedcreditpricing/collections

- USMSMexposure

Service:

- Field&phonesu- Casemanageme

Expandto Canada:

Credit: NAexposuData: Installed BasIT: ShutdownCICS,

Care:

- Partner/facilityconsolidation- NAtelephonynetwork

Service:

- WorkforceOptimization

OTC: Expandto USManaged, DMT,MVS,Secap

Care/OTC: Shutdownlegacypr ocessesWeb :Technical SupportData: MSMcustomer, product, offer, pricingIT: ShutdownUnisys, IMS, CIS,SCM

legacy, PathfinderAll: KnowledgeBaseManagementService: Remotediagnostic

Care:

- UniversalCareAgent- Casemgmt

IVR: Careself -serveWeb: Careself -serveData: Customer& product

SupplyChain:

-ATPforquotean-Multi-Location-EndtoEndOrde-ClosedLoopRM

Returns)-Integrated Invent

Forecast &Pla-Notouchorderp

.FastTracks(seeright)

FastTracks

Sales: Sellmoreon pb.comSales: GrowInside SalesCare:Drivecustomersto myBillOTC:Property Tax

OTC:Drive ACH

Credit: Collect TINsService: Shiftmore techsupport tothephone

Service: Shiftmoretechsupport to theweb

SupplyChain: Enact Portfolio ManagementTeam(end-of -life)

ScenarioComparison

Proposedvs Current

($Exact)

(inmillions)

AnnualCosts:

Current Year

A ct ua l B as el in e Y ea r 1 Y ea r 2 Y ea r3 Y ea r4 Y ea r5 T he re af te r T ot al

Ca pi ta lI nve stme nt -$ (3.979)$ (35.218)$ (30.720)$ (13.187)$ (0.151)$ (0.860)$ (84.115)$

YearlyExpense-Proposed -$ (0.050)$ (45.109)$ (42.098)$ (29.046)$ (20.926)$ (90.046)$ (227.274)$

YearlyExpense-Current/Doothing -$ -$ -$ -$ -$ -$ -$ -$

AnnualExpenseVariance -

favorable/(unfavorable) (0.050)$ (45.109)$ (42.098)$ (29.046)$ (20.926)$ (90.046)$ (227.274)$

Incremental EBIT (0.050)$ (33.167)$ (21.549)$ 45.080$ 63.670$ 340.484$ 394.469$

Affordability Model

End-state Architectures

(IT, Capabilities, Customer)

Capabilities

Business Case

Workstr

Practic

Policy

ID ProposedPractice

As-Is

Polic

y

Policy

Summa

ry

Descrip

tion

PoliciesRequired

ActualDatePolicy

Published

2 1 0 2.1.0

Drivecustomerstothe web

forendtoendcapabili ties

(e.g.,re search,purchase

products/services,&cust omer

support) 19-May

2 1 1 2.1.1

Itis PitneyBowespolicythat Marketingwillcreat ecampaignsandeventstodrive

customerstothewebfor endtoendcapabilit iesthroughoutthecustomer' s

lifecycle. 19-May

2 1 2 2.1.2

Allcust omerfacingorganizationswill beresponsibleforencouragingcustomers

togotothewebf orendtoendcapabilit iesthroughoutthecustomer's lifescycle

22-May

2 1 5 2.1.5

Itis PitneyBowespolicythat allcommunicationstocustomersthroughoutthe

customerlifecyclefromallcustomerfaci ngorganizationswilli ncludethePitney

Boweswebsiteandrelevantli nksbasedonthetypeof communicationandformat

ofcommunication(electonic, paper,product,etc) . 19-May

2 1 6 2.1.6

PitneyBowespolicyist hatallcust omerfacingorganizationswillcreateand

ensureawebexperiencethat iscustomerfri endlyanddoesnotexposeinternal

complexities. Thewebsitewillbeevaluatedregularly. Contentwillberef reshed

andusabilityenhancementswil lbeimplemented.

-Simple- makethemessageanddi alogueunderstandableforthecustomer(eliminate

marketing/product/service/salesjargon;don'trequireaPhDtogetit)

-Helpful-fullyaddressth ecustomer'sneed/o bjective(rightinformation;nooverload;

solvetheproblem;relevant)

-Alternatives-giveoptions;personalized;beabletoserveinyourcusto mer'schannelof

choice-Reliable-consistentoutcomesallthetime,ineverychannel

-Easy-easytouseanddo( nounnecessarycomplexi ty;intuitivedesign;features) 22-May

2 1 7 2.1.7

PitneyBoweswillprotect theprivacyandconfident iality ofpersonalinformation

aboutitsEmployees,Customers,BusinessPart ners(includingcontacts within

CustomersandBusinessPartners)andotheri dentifiableindivi duals.Uniform

guidelinesforcoll ecting,using,disclosing,s toring,accessing,t ransferringor

otherwiseprocessingsuchinformationassists PitneyBowestoprocessPersonal

Informationfairl yandappropriately, disclosingitand/ortransferringitonlyunder

appropriatecircumstances. 19-May

2 1 8 2.1.8

PitneyBowesmaycollectpersonal informationfromvisit orstoPitneyBowes

InternetWebpages.Theinformati oncollectedmayincludenameandaddresses

(postalore-mail),telephonenumbers,orotherinformationnecessaryt ofulfi ll

orders,providerequestedservi ces,orfor otherPitneyBowesbusinesspurposes.

Establishinguniformproceduresfort hecollectionanduseof personal

informationinaf airandlawful waywillenhanceconsumertrustandconfi dencein

dealingwithPitneyBoweson-line.19-May

2 1 9 2.1.9

PitneyBoweswilldevelopandi mplementspecificproceduresrel atedtothe

treatmentofpers onalinformationandprivacy. Trainingmaterialswillbe

developedanddeliveredtoal lemployeeswithaccesst oorresponsibilityfor

customerinformation.Employeesmustcompletecert ificati onfortreatmentof

personalinf ormationandprivacyat leastannually. 19-May

2 1 13 2.1.13

y , y w w

standardizedproductidentif ierfora productorserivcewhichwill beconsistent

acrossmasterdataanduti lizedbyall organizations,includingthe customer.

22-May

2 3 0 2.3.0

Pricingwillbe managedandcontrolledbymarketingwit h

thegoalofminimizingmanual

exceptions. 26-May

GovernanceRisk Assessment

Architecture

CustomerMaturityModel

0

1

2

3

4

5

Resp

ond to

ema

ilma

rketin

g

Visit

the w

ebsit

e

Rece

ivereco

mmen

datio

nfro

man

othe

rcus

tome

r

Callf

orpre-

sales

infor

mati

on

Cond

uctn

eeds

asse

ssm

entv

iaonlin

e

Resp

ondto

web

mess

agin

g(no

n-PB

)

Make

online

pur

chas

e

Buyv

iaph

one

Buy f

rom

afie

ldsales

perso

n

Choo

sebu

ndle

viaonlin

epr

oducts

electo

r

Mak

epa

ymen

tsel

ectio

ns

Acce

ptterm

sand

cond

itions

Prov

ideacc

ount

info

rmati

onandp

refer

ence

s

Rece

iveno

tice

oford

er/ship

ment

stat

us

Cond

ucts

elf-in

stalla

ndsta

rtup

Rece

ivein-fi

eldinst

allation

and

train

ing

Assu

reuser

scom

fortab

lewith

pro

duct

Retur

nand

repl

ace

prod

uct

Mak

eonlin

epa

ymen

ts

Conta

ctPB

forb

illing

and

pay

ment

supp

ort

Rece

ivebilli

ngad

justm

ento

rref

und

Man

agep

osta

gea

ccou

nt

Buy

supp

lies _

__%

Seek

diag

nosis

forp

rodu

ctpr

oblem

s

Rece

iverepla

cem

ento

rons

itesupp

ort

Seek

tech

nical

supp

ortforp

roduc

tusa

ge

Rece

ivenotic

eof

asafe

tyor

pro

duct

recall

issue

Adop

trat

eand

regu

lator

ycha

nges

Asse

ssPB

alter

nativ

esto

impr

ovebu

sines

s

Mak

ea

modif

icatio

nto

anexist

ingagr

eeme

nt

Rene

wan

agre

emen

t

Canc

ela

busin

essa

rrang

emen

t

Resp

ondto

aPB

cust

omer

sur

vey

Parti

cipat

ein

user

train

ing

Acce

ptth

erole

ofpu

blic

advo

cate

forP

B

MaturityLevel

Target

Current

Fiel

(Siebe

FieldAntenn

a

Channels

& Portals

Logical

Layer

CIVR, CTI &

Segmentation

Fiel

(Siebe

FieldAntenn

a

Channels

& Portals

Logical

Layer

CIVR, CTI &

Segmentation

Program Evolution


16/25



Big TEnterpriseTransforma

tion

Scope: Cross-functional program for paradigm-shift to meet corporate strategic objectives or commitments to Wall Street Leadership: C-Suite Value Realization: Comprehensive business case. Baselines and robust mechanisms to monitor value creation, often

with risk-sharing / gain-sharing arrangements Critical Delivery Competencies: Strategy, Program Management, Change Management, Strategic Outsourcing, Process

Reengineering, Technology Implementation, Technology Hosting and Support


Scope: Optimization of a selected business function(s) with marginal change for interdependent functions Leadership: Selected Functional Leaders and Customer Operations Transformation Executives Value Realization: Robust business case validated against benchmarks Critical Delivery Competencies: Strategy, Program Management, Change Management, Process Reengineering,

Technology Implementation

Transforming Selected Business Processes

Scope: Standardization of processes (typically on embedded best practices within COTS packages) and consolidationof systems for a selected business function(s)

Leadership: Senior Business Managers and IT VPs, with oversight by Group VP Customer Operations and CIO Value Realization: Budget, Schedule, and Functional Specifications Critical Delivery Competencies: Project Management, Change Management, Process Reengineering, Technology

Implementation

Standardizing Business Processes

Scope: Incremental, if any, process change with upgrade or implementation of technology platform Leadership: IT Value Realization: Budget and Schedule Critical Delivery Competencies:Project Management and Technology Implementation

Changing the Technology Platform

ProcessTransforma

tion

ProcessOptimizatio

n andStandardiza

tion

TechnologyUpgrade /

Implementation


17/25


Product Hardware, software Service, supplies Financial Services

Servicing Model Simple, standard and cost efficient Customer choice and convenience Re-vamped customer oriented practices

Customer Experience Predictable and transparent offerings One commercial relationship Convenient, multi channel engagement

Infrastructure Simple, highly automated transactions Standard contracts Common and shared technology

Simplifying The Transactional Model ThroughTransformation


18/25


HighHighEstablished a Risk FrameworkIdentified and assessed 108 Business and IT risks

Established mitigations actions for allMonitoring 34 H/H & H/M risks

Already ambitious

scope continues to

expand (11 - M/H)

Quality sacrificed

for timeline and

budget (12 -M/H)

Cross -functional

governance

approach for

project not

sustained (13 -

M/H)

No capacity for

unexpected events

(14 - M/M)

Too many defects

discovered late in

the project phases

(15 - M/H)

Project &

Scope

Already ambitious

scope continues to

expand (11 - M/H)

Quality sacrificed

for timeline and

budget (12 -M/H)

Cross -functional

governance

approach for

project not

sustained (13 -

M/H)

No capacity for

unexpected events

(14 - M/M)

Too many defects

discovered late in

the project phases

(15 - M/H)

Project &

Scope

Risk Assessment


19/25


Potential Risk

Risk Potential Impacts Mitigation

Culture Bias for speed Resistance to change-fear of failure

Functional focus

Field Service Equipment Repair

Competence Process expertise Program management

Change management

Technical expertise

Customer Care Leasing

Customer Care Billing

Customer Care - P-Power

Supplies Orders via phone*

Product Support Hardware

Product Support Legacy

Product Support - Software

Capacity Competing initiatives

Staff reductions

CRU Service by Replacment

WillFin

alizeInputsO

n

Plan

eHome

Risk Profile


20/25


Phase I ($TBD)

Phase III ($TBD)

Phase II ($TBD)

2010 Q1 Q2 Q3 2011 2012Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

OTC:- Standard order- 2 Bills, 2 A/Rs- 1 collection

(platform)Service:

- Case Mgmt

Phase IV ($TBD)

Sales & Mktg: Single PQCWeb:

-E-commerce-B2B

Credit:- Real-time risk-based credit

pricing/collections

- US MSM exposure

Service:- Field & phone support re-platform

- Case managementExpand to Canada: Sales, OTC, Care, Credit, SCM, Service, WebCredit: NA exposureData: Installed Base, NA material, offer, pricing, NA customerIT: Shutdown CICS, Siebel, and Canadian systems

Web: Expand to EAMEData: Global customer,

materialIT: TBD

OTC: TBDCredit: Global ExposureCare: Global (Phone)Service:- Global Web Support- Global Knowledge Base

Care:- Partner/facilityconsolidation- NA telephony

network

Service:- WorkforceOptimization

OTC: Expand to US Managed, DMT, MVS,Secap

Care/OTC: Shutdown legacy processesWeb: Technical SupportData: MSM customer, product, offer, pricingIT: Shutdown Unisys, IMS, CIS, SCM

legacy, Pathfinder

All: Knowledge Base ManagementService: Remote diagnostic

Care:- Universal Care Agent- Case mgmt

IVR: Care self-serve

Web: Care self-serveData: Customer & product

Other

Projects

OTC-Move lockbox

AllMailstream1

Other Projects, schedule TBD:Web: B2B E-commerce (supplies, ink & toner)Supply Chain: Demand planningOTC: EAME Leasing

FASB13

Supply Chain-Post sale globalization-Increase drop shipcapability

-Facility consolidation

Supply Chain:-ATP for quote and order-Multi-Location Fulfillment-End to End Order tracking-Closed Loop RMA (Intelligent

Returns)-Integrated Inventory, Order,

Forecast & Planning-No touch order processing

2013 Q1

.Fast Tracks(see right)

Fast TracksSales: Sell more on pb.comSales: Grow Inside SalesCare: Drive customers to myBillOTC: Property TaxOTC: Drive ACHCredit: Collect TINsService: Shift more tech support to the phoneService: Shift more tech support to the webSupply Chain: Enact Portfolio Management Team

(end-of-life)

08-09

Phase 0

$6.1MM

2008As-is (OTC)IT UpgradesFlow vision

2009PracticesPoliciesReqs.RoadmapIT CostingWeb screens Included

in theCIP

Roadmap (v6.6)


21/25


Phase I

Phase II & III

Current transformation roadmap covers vast majority of business practice changes

Exceptions due to missing self-service capabilities in product roadmap and no asset managementowner/strategy

Two Bills

Flow Operating Model - Vision


22/25


Sales Care Service GFS FSS Collections

VOC

VOP

Globalization

Customer Experience

Global Process Management

Darwin

ORGANIZATIONAL ENABLERS

VOE

VOPVOC

Service Delivery Teams

TRANSFORMATION MODEL

ListeningPosts

MSM

Cross-BUCross-BU

Globalization

VOC

Requirements

PHASED IMPLEMENTATIONS

VOE

Framework


23/25


Overall T-Sat Index

Purchase Experience

INDEX

Customer Care

Experience

INDEX

Technical Support INDEX

Field Field Sales Equipment and Solutions

Field Install Equipment

Field Install SolutionsField Service Equipment Repair

Phone Inside Sales

New Small Customer phone buyingexperience

Retention

Customer Care Leasing

Customer Care Billing

Customer Care - P-Power

Supplies Orders via phone*

Product Support Hardware

Product Support Legacy

Product Support - Software

Self Service New Small Customers Self Install

Customer upgrade self install

CRU Service by Replacment

Web New Small Customer online buyingexperience

Online billing processes

Supplies Orders via web*

Web Self Service Technical SupportSTRA

TE

GIC

GOAL:CH

ANNEL

SHIFT

Customer Transactional Satisfaction Structure - 2010


24/25


Talent Change

Management

Project Operations Compliance Technical Data Financial

Project &/orBusiness will not

have sufficientqualified resources

#1 H/H

Building & managingsuccessful, matrixedteams will be difficult

( PB, Bus.Consulting, DataConsulting, Wiproetc.)

#2 M/H

Loss of keyresources both during& afterimplementation

# 3 M/M

Inside out design doesnot deliver improved CE

# 4 M/M

Failure to implementnew practices andpolicies #6M/H

Poor execution ofcustomer and/or org.change mgmt.

# 5 M/H

Scope l becomesunmanageable

#7 H/H

Quality, timeline &budget targets are notachieved or are traded-off for one another

#8 H/H

Organizational fatigueis driven by a multi-

year roadmap#9 H/H

Inability of businessto operate in atransitionalenvironment #10M/H

USPS reportingand /or /financial

transactions aredisrupted # 11L/H

PB Bank regulations/compliance affected

# 12 L/H

FASB 13 re-write isnot supported #13 H/H

SOX compliance isnot achieved # 14M/H

GSA and other buyingcontract terms areviolated #15 L/M

SAP will not deliverpromised functionality

within requiredtimeframe #16 M/H

Proposed technologyarchitecture will notsupport new PBbusiness environment

#17 M/H

Wipro businessanalysis &programming skills arenot adequate #18 M/H

Cleansing,conversion, migration

and interim state willbe complex#21 H/H

Focus on data qualitywanes after go liveresulting in morefragmentedenvironment #22 M/H

Benefit not achieveddue to reliance on

technology alone #19M/H

Design/executionnegatively impactsfinancial results

#20 M/H

High level risks have been assessed based on likelihood of

occurrence and severity of impact

Risk Assessment


25/25

25November 6 2009 PBI Confidential

BusinessRisk

ApproachRisk management methodology utilized by IT and the business forBusiness Transformation

1. Identify

Compile list of risprior experience, llearned, best practinput from stakeho

3. Assign

. Assign all risbracket

. High se

. Mediu

. Low se

4.Mitigate

dentifying mitigationigh and Mediums

t mitigation Heat Map

5.Monitor

tor remaining High orm Severity risks

de risk management as partject planning activities andff criteria

Assess all riskslikelihood of occseverity of impa

High Severity : H

Medium Severity

Low Severity: R

2.Assess

ChangeMgmt.

TalentProject

Operational

Compliance

Data

Technical

Risk Assessment

bod draft kiedaisch v3

Documents