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Enterprise Application Management (EAM)

Enterprise Application Management (EAM). Short-term U.S. Growth Opportunities. Ver 2.02 2000-MAR-28. Agenda. EAM Definition and Packaging Approaching Clients Initial conversations How EAM addresses client’s pain Client FAQ Sales Support Regional Focus Q&A.

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Enterprise Application Management (EAM)

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  1. Enterprise Application Management (EAM) Short-term U.S. Growth Opportunities Ver 2.02 2000-MAR-28

  2. Agenda • EAM Definition and Packaging • Approaching Clients • Initial conversations • How EAM addresses client’s pain • Client FAQ • Sales Support • Regional Focus • Q&A

  3. How would you rate your current experience level in selling the EAM offering? 1. What does EAM stand for? 2. I have a general understanding of what EAM is 3. I have some experience in selling EAM 4. I have lots of experience with EAM and could teach this session

  4. EAM Definition & Packaging Ver 2.02 2000-MAR-28

  5. ERP/EAM Market Trends • Recognition of the value of moving to a fully integrated solution has produced a strong acceptance of packaged applications • Best Practices & External Managed Services to reduce Total Cost of Ownership, improve overall customer satisfaction, and increase profitability • The acknowledgement of a business model that supports integration of strategic partners into a position of accountability within the corporations • The cost and complexities associated with acquiring, retaining and maintaining skilled resources is a consistently underestimated challenge

  6. What is Enterprise Application Management? Defining the Solution: An Enterprise Application Management (EAM) partnership provides functional and application management of your integrated enterprise software packages by using a remote, leveraged, professional staff. EAM provides the services you need …Performed to the level you need them ... Reliably, professionally and cost-effectively …In a partnership environment. EAM is about service and value EAM can be delivered as a managed service or as supplemental support to existing capabilities

  7. Transition Management (Start-Up) Program Management Level 2 Help Desk - Functional Support Application Failure / Resolution Analysis Minor Upgrades Application/Program Minor Enhancements Service Overview Base EAM Services • Functional Extension / Major Enhancements • Interface Failure Support • Batch Job Failure Support • Performance Tuning / Run Time Improvement • Application Disaster Recovery Services are based on a defined statement of work and service level agreements

  8. Uplifts: User Access Administration Premium Disaster Recovery Service Overview Optional EAM Services Optimization (T&M projects): • New Module Implementation • Integration With Other Applications • Major Upgrade Application Release • Data Archiving and Retrieval Services are based on a defined statement of work and service level agreements

  9. Centres of Excellence EDS Solution Centres providethe leadership, expertise andbest practices for EAM services • Product Specialists • Industry Specialists • Best Practices • Repeatable Solutions Leveraged • Research & Development • Knowledge Repository • Partner Relationships • Cost-effective, globally leveraged support ... • while maintaining a client-specific focus

  10. EAM and Hosting Outsourcing (transition existing) Jointly Sales Package #3 Sales Package #2 Target Market past history • Any size client • Select industries • ERP s/w installed • ERP s/w not installed; EAM added to implementation and/or Hosting Services Features/Functions • Programming • Configuration • Interfaces • Optimization • Level 2 Help Desk (Functional) future direction Onsite Dedicated (Enterprise) Application Remote Management Leveraged Functionality Delivery • Level 1 Help Desk • Patches/Upgrades • Disaster Recovery • Clients beginning ERP (ERP hosting standard) • Variety of client scenarios in between (ERP hosting custom) • Client with ERP transitions capital & resources to EDS (outsourcing) “…managing the application functionality for the client” . . . ERP Hosting • Data Center & Hardware • Network (WAN) • Level 2 Help Desk (Techn) • Technical Delivery • O/S Admin. • Database Admin • Application Admin (Basis) ERP Hosting Platform & Technical Delivery Sales/Pricing Packages “…getting the application to the client” (new set up)

  11. Approaching ClientsInitial Conversations Ver 2.02 2000-MAR-28

  12. EAM - Qualification Likely growth candidates for EAM services • Currently uses one of the following ERP packages: • SAP • Oracle • PeopleSoft • JD Edwards • Supports the application with in-house personnel, 3rd partyservices supplier, or with EDS dedicated personnel • Wants to decrease expenses associated with supporting ERP • Has a good relationship with EDS • Wants to increase ROI on ERP investments NOTE:Detailed Sales Qualification Checklist is available on What We Sell

  13. Lead-in Conversation When EDS is not providing support today: • Now that you’ve had your “ERP” system running for awhile, how are things going for you? I know it takes a lot more than most people anticipate to support, and I was just wondering how you’re doing. • Besides the hundreds of ERP clients we support today, EDS has internally implemented SAP - so we’re very tuned into the complexity of support and the end-user perspective of using ERP systems. How is your support team working out? What’s the satisfaction level of the users? Do you think you’ll be able to handle growth? Are you reaching your expected ROI?

  14. Lead-in Conversation When EDS is providing on-site support today: • Your discretion on starting a cost reduction conversation, but the reason for pitching EAM in this scenario: • If EDS is contractually obliged to provide year-over-year reductions in the cost to the client to support the applications, while also maintaining the same or better service levels, EAM may provide a means of delivering to both goals. Be aware that if EDS is currently providing dedicated and/or on-site personnel without the year-over-year cost reduction commitment, the CDE may want to consider the switch to EAM at renewal time, as existing revenue streams can be at risk.

  15. Differentiators EDS Values Our Client Relationships • Quality and consistency • Cost effective and leveraged • Service flexibility • Customization and integration • Industry and application knowledge • Strategic partnerships • Breadth of services portfolio • Field proven methodology • Best in class Help Desk • Global infrastructure • Technology vendor independence • Measurable SLAs

  16. Approaching ClientsHow EAM Addresses Client’s Pain Ver 2.02 2000-MAR-28

  17. Conquering the Complexity EAM Meeting Your Customer Needs Partnering For Success Finding Qualified Professionals Updating & Maintaining Skill Sets Staff Retention & Career Development Access & Leveraging Global Professional Staff Controlling Cost & Meeting Expectations Your Staff Strictly Focused On Core Business What are the Goals - What are the Barriers (“Pain”)

  18. Value Proposition EDS clients can become nimble and market responsive in the new digital economy through the ability to rapidly reduce their ERP TCO (5%-30%), re-invest in e-business strategies, and improve business operations while effectively managing their value-add partners as a result of engaging EDS’ EAM Services

  19. Affect your bottom line using EDS’ knowledge of application strengths and areas for improvement Enjoy operations excellence and stability via repeatable, global methodologies Leverage a global resource pool, including ERP package and industry expertise Control IT spending with predictive costs Get the services you need, at the level you need them Accelerate your ROI as EDS stabilizes, optimizes and extends your enterprise solution EAM Service Benefits

  20. EDS Success Stories (always check latest referenceability) • Oracle - American Axle • Dedicated on-site support • SAP - Sterling Diagnostics / Agfa • Combination remote and on-site production support (previously all on-site) • SAP - Getrag Gears North America • Remote production support (as needed; T&M) • PeopleSoft - Nat’l Assoc of Securities Dealers (NASD) • EAM has been proposed; showed savings (currently all on-site) • PeopleSoft - The Limited • EAM win with Apps Hosting (due diligence)

  21. Approaching ClientsClient Frequently Asked Questions Ver 2.02 2000-MAR-28

  22. Client FAQ • How does EAM affect ROI for ERP? • By using a remote, leveraged delivery model, EDS can leverage resources across multiple clients, allowing each client to pay only for the amount of service required - not for full FTEs that may or may not be utilized 100% of the time. • When EAM provides consistent services such that the ERP system integrity and availability are assured, clients are then able to provide consistent service to their own customers. • EAM resources can bring to bear their experience caring for multiple clients to address certain issues of any one client. Additionally, the experience of an entire worldwide team of experts can be tapped into for quick resolution of any issues. • EAM services are structured to help clients find areas for business improvements as well as IT improvements.

  23. Client FAQ (cont.) • What are primary cost drivers of EAM? • Number of module suites - each suite (ex. Financials, Mfg, etc.) requires a separate functional skill set • Types of module suites - Manufacturing and Payroll are complex and drive higher skill set and/or more volume of skill set • Named users - drives Help Desk costs (logging, tracking, functional expert time spent, potential data errors) • Interfaces - drives potential of ERP system failures • Customization - amount and type of customization drives technical programmers and functional experts required • NOTE: EAM is largely a labor intensive service using a specialized skill set, where the supply is far short of the demand - hence, the need to leverage what is available.

  24. Client FAQ (cont.) • How can I be comfortable with the support staff being remote? • In today’s world, service companies are finding that the most economical way to provide consistent service to a large client base (especially using scarce specialized skill sets) is in a remote, leveraged model. If the service company can provide services in a way that are internally economically viable, the client price will be reflective of the efficiencies. • Current technologies, standard methodologies, and collaborative processes allow the support staff “down the hall” of yesterday to be virtually anywhere in the world, yet able to provide support at a moments notice. • The EAM Program Manager will be on-site periodically to ensure service levels are being met and collaborate with the client on the most effective and efficient direction for increasing the value of their ERP strategic asset.

  25. Client FAQ (cont.) • What kind of service level commitments can I expect? • This is defined by the service level agreement. Service levels consist of standard base services, standard uplifts, and can extend to custom service levels. • What kind of pricing can I expect? • Pricing is driven by the number of seats being serviced, the number of ERP modules that the client uses, and the service levels that govern the relationship. An apples-to-apples comparison of in-house or dedicated service level costs with those of the EAM offering should conservatively yield a 10% or better reduction in support costs.

  26. EAM Solution Alternatives • EAM with EDS Apps Hosting • Assumed starting solution • EAM with client in-house managed hosting • Slight increase in Help Desk and communication line costs; minimal collateral and delivery procedure updates

  27. EAM Solution Alternatives • EAM with 3rd party managed hosting • Slight increase in Help Desk and communication line costs; minimal collateral and delivery procedure updates • EAM plus Application Administration* services • Additional FTE skill set and Help Desk (technical) ongoing costs; pull together EAM and Apps Hosting collateral and delivery procedures *Application Administration services (installation and tuning, application & db monitoring, performance admin., system admin., application upgrades) are typically sold under EDS Apps Hosting, but can be included with EAM if EDS is not the Hosting provider.

  28. Sales Support Ver 2.02 2000-MAR-28

  29. EAM Pricing Tool The EAM Yellow Pad calculator (for SAP, Oracle, and PeopleSoft) allows EAM Sales Support to answer 4 basic questions about the client. Based on pull down menu answers, the tool will calculate the client category: Easy, Standard, or Complex. Client Type Selection: Client Type Description Selection Value 1. Number of Suites/Modules 1-3 with No Payroll or Mfg Easy 1 2. Named Users 50 or less Easy 1 3. Interfaces 1-3 Easy 1 Low - Med 4. Customization Standard 2 Client Type Easy 5

  30. EAM Pricing Tool (cont.) Each of the EAM Base Services is listed and defaults to “Yes” as a starting point for services selected. The service levels shown match the client category that was calculated.

  31. EAM Yellow Pad Pricing Easy Cost Price One-Time Transition: $64,432 $129,016 Monthly Recurring: $18,333 $35,232 Standard Cost Price One-Time Transition: $124,701 $249,396 Monthly Recurring: $79,905 $152,608 Complex Cost Price One-Time Transition: $183,834 $366,274 Monthly Recurring: $209,228 $406,226 NOTE:Prices shown are reflective of 2001-2002 market benchmarking for EAM specific rates.

  32. West Michael Blank 916-636-4203 Southwest Michelle Rund 972-604-3151 Midwest Mark Grier 517-249-5612 Southeast Rob Flowers 703-742-1132 Northeast Bob Pelton 301-721-1184 Local Biz*net Leaders

  33. EAM Collateral/Tools “What We Sell” - external • Fact Sheet • Client Presentation (warning: includes speaker notes) • News Release • Proposal/SOW template (base services) • EAM optional services SOW template • Assessment Questionnaire • TCO Worksheet • SAP Services Continuum “What We Sell” - internal • EAM Services List (“cheat sheet”) • Yellow pad Pricing Tool • ERP Outsourcing Characteristics • EAM Delivery Overview • EAM Contact List • Sales Qualification Checklist • EAM Overview (M-Show) • EAM Regional Training Sample

  34. EAM Launch Status United States: • EAM for SAP launched at Sapphire / News Release - June 2001 • Collateral / Sales Support for SAP, Oracle, PeopleSoft available • SAP, Oracle and PeopleSoft delivery ready • J D Edwards hosting alliance in progress - Host/EAM ready 1Q 2002 • Other regions: • Japan (SAP only) - 1Q, 2002 • A/P South - 2Q, 2002 • Canada - 2Q, 2002 • EMEA - 2Q, 2002 • Latin America - 3Q, 2002

  35. Regional Focus Ver 2.02 2000-MAR-28

  36. Prioritize the target accounts Develop “pre-conversation” strategy Engage clients with strategic business conversations Northeast Region Approach

  37. Potential Northeast Targets Could these accounts benefit from EAM services: • AGFA? • AT&T? • BCBSMA? • BSC? • Citigroup? • EMC? • JCrew? • MassMutual? • Merrill Lynch? • NASD? • Phillip Morris? • Primedia? • Textron? • Verizon?

  38. Delivery Mike Allen 716-745-7258 Sales Support Kit McKee, RSE Manager 972-605-2311 Dan Dillon 937-235-6804 Northeast Region Contacts

  39. Was today’s session valuable to you? 1. Strongly agree 2. Somewhat agree 3. Disagree 4. Strongly disagree

  40. Do you think what you learned here will help you meet your targets for this year? 1. Strongly agree 2. Somewhat agree 3. Disagree 4. Strongly disagree

  41. Do you see how you can increase revenue with your client short term? 1. Strongly agree 2. Somewhat agree 3. Disagree 4. Strongly disagree

  42. Q&A Thank you for participating! You can find EAM collateral / tools at the following URL: http://infocentre.eds.com/isolutions/sell/app_dev/sales.html A copy of this presentation can be downloaded at: http://infocentre.eds.com/isolutions/sell/dl_presinternal.html

  43. Further information Replays of the EAM Growth teleconference are available from Nov.2-Nov.9 Call 888-567-0459

  44. eds.com

  45. MPM Global Offering Manager Kelly Annarelli (CO) MPM Sales Readiness Manager John Lillwitz (IL) MPM Segment SME Ken Davis (TX) EAM Contacts (U.S.) • Service Line Delivery Manager • Joe Buczkowski (MI) • MPM Marketing Communications • Chan Chandler (TX) • Steve Carter (TX) • MPM Sales Training • Susan Giesing (KS) • E.solutions ERP Practices • Art Worster (NJ)

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