Company

LOGO $elling-on-Value™

A Powerful Business Model

2

Executive Presentation

Executive Presentation

Preliminary BusinessCase Review

Preliminary BusinessCase Review

Business CaseDevelopment

Business CaseDevelopment

Validation Validation

Value Discovery - Collaborative Value Assessment

Executive Alignment

Executive Alignment

Value DiscoveryWorkshop

Value DiscoveryWorkshop

Transformation Roadmap

Transformation Roadmap

DeliverablesExecutive alignment:• Confirm Scope for solution & business unit•Collaborate on approach vision and objectives. • Identify focus areas where RP can help unlock business value•Collaborate on Interview Schedule•Develop benefits hypotheses

•Develop Interview Guide•Develop Engagement Plan•Conduct Project Kick-Off workshop •Conduct interviews to:

•Discover company strategies and business pain. •identify value opportunities and risk/constraints•Collect Quantitative Data

•Identify & prioritize Key Benefit Areas & KPIs•Develop high level Project Cost Estimates•Develop Solution Roadmap options/ Deployment Plan•Develop Benefit Models

•Forecast benefits based on RP customer experiences and best practices

•Validate quantitative and operational findings with Customer Project Manager & Controller

•Conduct Business case workshops

•Develop Proposal for RP License & Services

•Review business case with executive sponsor

•Company strategies, business pain & solution

•Review benefit and cost projections.

•Revise Presentation based on intermediate Feedback

•Present business case to Executive Steering Committee.

•Revise Presentation based on final Feedback

•Define next steps.

Deliverables

***Business case includes value proposition and differentiation – why choose RP?

3

Interview Guide – 5 types of Questionnaires

•Strategic• F

inan

cial

•Information Technology

•Operations

•Key Performance

Indicators

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10 Universal Business Case Value Levers – Business Applications

• SOX• USDA• FASB

• Financial Reporting Accuracy

• Penalties• Disruption to

Business• Errors

• Market Share• Speed to

Market• Better

Decisions• Employee

satisfaction

Intangibles

Strategic & Competitive Advantage

RiskMitigation

Regulatory Compliance

CreateShareholder

& Customer

Value

Increase Net

OperatingProfits

ImproveCapital

Utilization

DecreaseOperatingExpenses

IncreaseGrossProfit

ReduceCost ofCapital

ImproveCapital

Deployment

IncreaseRevenues

DecreaseCOGS

ReduceSellingCosts

ReduceDistribution

Costs

ReduceAdminCosts

ReduceR&D

Costs

ReduceWorkingCapital

ReduceFixedCosts

Increase Fill Rate & On Time Delivery Increase Volume & Price Optimization Improve product mix (align service & cost to serve)

Reduce Material Spend Improve asset productivity and efficiency Decrease Direct Labor Cost

Increase Customer Service/Sales Productivity

Reduce Warehousing Labor Reduce Transportation Cost SCM Network Optimization

Reduce time to market/commercialization process Reduce R&D Labor

Reduce inventory Optimize AR (DSO) and AP

Improve asset & Equipment utilization and rationalization

Improve investment planning and deployment

Reduce Purchasing Labor Costs Reduce IT Labor costs Reduce IT Fees (Maint. &Support, Data Center etc.) Improve human resources effectiveness

Property Plant &

Equipment

Tangibles

Inventory& DSO

Fees:IT/Call Center

Transpor-tation

ProductivitySpendRevenueGrowth

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What does Kaizen Mean?

• Japanese term – “Kai” means “Change”– “Zen” means “for the better”

• Kaizen: Continuous Improvement

• Concept– Small incremental improvements– Improvements add up over time– What’s get measured gets done

• KPI linked to Action!!!

Kaizen does not necessarily mean an event or “Blitz”

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RP Value PropositionBuild a Competitive Advantage, turning RP ’s customers

into a World Class Company

FOUR REASONS WHY RP IS THE

CHOICE OF REFERENCE

1. Financial Benefits

4. Cost Benefits

2. Strategic Benefits

3. Risk Mitigation Benefits

• 2.5 years cumulative benefit of $195MM

• Quick payback = 1.9 years

• $83MM inventory reduction

• $68MM yearly benefit (starting 2003)

• Internal rate of return of 110%

• Leverage existing RP investment (core functionality and internal skills)

• 51% reduction in legacy systems and 59% reduction of interfaces

• Enable industry specific and scalable solution(support <__> growth goals at low cost)

• Future needs can be met (FLM, Merger & Acquisitions processes)

• Standardization of business processes and data integrity. Speeds up synergies throughout the enterprise

• Better decision making based on real-time, accurate information

• Solution scalablity

• RP meets global requirements

• Proven solution/dependable partner

• RP dedication to High Tech industry

• RP /<__> Strategic partnership

• RP management and commitment

• Facilitates mergers and acquisitions

• <__> existing RP footprint