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IEEE BMS / BES Status Update

IEEE IT Department

20-Sep-2004 ITSC meeting

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Business Management System Project

• Intent of the project is to “leverage the infrastructure” per the recommendation from the BDO Seidman report.

• Final recommendation will be based on the trade offs between efficiencies using an integrated solution vs. the unique requirements of each business supported.

• A key implementation issue will be how transaction processing is distributed (decentralized processing on centralized platform).

• Will have both cost and service implications.• The BMS solution will help define some key components

of EA and ensure that is a step in that direction

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Business Entity System Status & Phase 3

• Phase 1 implementation – On schedule - Oct 2004– included purchase of Oracle modules (Customer On-line,

Contracts & Data Librarian) and necessary system hardware & support software.

– Subset of IEL customers (275) will be processed using new software beginning in September.

– Full back end integration with Oracle Financial Modules and limited front end integration with Maximizer CRM software.

• Phase 2 - 1st quarter 2005.– Add Non US IEL customers – Expand the functionality to include additional electronic only

package - ASPP & POP customers

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BES Project investment Phase 1 and 2

• 2003 / 2004 – Invested app. 350K on capital for Oracle modules and 165K on consulting cost – On target for cost and on schedule for project delivery dates!

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Business Entity System Status & Phase 3

• Phase 3 continues software integration with purchase of additional Oracle modules (Advance Pricing, Bill of Materials & Sales Reporting). – 3rd Quarter 2005– Functional integration to be expanded to include new electronic

offerings (eg. Enterprise) and print subscription ordering & fulfillment.

– Will provide enhanced service integration, sales reporting, service and operational efficiencies.

• Possible Phase 4 to include customer facing self-service applications and integration into content delivery platform (Xplore). – Capture requirements – 3rd Quarter 2005

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Business Management System Project

• Driving force is the need to replace the current Oracle ICSS system that supports membership processing (1995).

• The desire is to implement a fully integrated business system that supports all customer facing business applications – membership, non-member subscription, conferences, etc.

• Methodology being used to develop business requirements is “use cases” – provides a base to evaluate purchased applications or develop in house.

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Business need for the BMS system

• The current system is obsolete and antiquated• The business needs have outpaced the system

changes to a point it needs a fresh start• It may cost more to maintain and enhance the

old system than implementing a new system• Not doing anything is no longer an option• Inability to support new business drivers and

technology drivers may hurt us grow revenue and stay competitive

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Status Update Since ITSC 11-Aug-2004 meeting

• FINCOM, at their August meeting, set-up a placeholder of 1MM in the 2005 budget towards IT initiatives (BES/BMS and Security) in anticipation that the ITSC would make the recommendation to support these projects at the November Board Series

• Ben Johnson to present updated financials to Fincom – Sept 25th • Distributed RFPs to 10 Vendors

– Aptify, Avectra, Accenture, TMA, ACGI, Oracle, JL Systems, Systems Evolution, Global Turnkey, Data Systems Solution

– Anticipate ~6 vendors will respond• Distributed IEEE BMS Business Requirements to Mary Ward-Callan and

Cecelia Jankowski for further distribution to volunteers– Art Winston ITSC Committee– TAB – Gene Hoffnagle, John Vig (TAB alias – awaiting responses)– RAB – Marc Apter, Maurice Papo, Regional Directors– Standards – Jim Carlo, Don Heirman, Paul Nikolich

• BMS requirements being reviewed with ITSC members and soliciting feedback

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Vendor Status update

• Held initial phone discussions with several vendors

• Received preliminary software licenses and integration costs from vendors (see attached)– Varying costs received from vendors based on

preliminary responses received• Through our RFP evaluation process, we will continue to

refine the costs since we will be:– Confirming software solutions (buy vs. build)– Confirming interface impacts driven by software solutions– The above variables/unknowns could potentially impact the

project costs we review/recommend in November by 50 – 100%

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BMS Preliminary Capital estimates(000Thousands)

Vendor 2005 2006 2007 2008 Total

Aug ITSC Model

2,930 1,120 1,120 4,620

Vendor 1 1,290 395 295 1,980

Vendor 2 3,680 640 590 4,910

Vendor 3 3,240 580 460 4,280

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BMS Preliminary Expense estimated (000 Thousands)

Vendor 2005 2006 2007 2008 Total

Aug ITSC Model

443 863 1,074 1,074 3,454

Vendor 1 214 392 985 1,071 2,662

Vendor 2 543 985 1,585 1,430 4,543

Vendor 3 684 1,071 1,430 1,216 4,401

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Highlights of our Vendor Selection Process

• Establish Vendor Selection criteria 16-Sep-2004• Evaluate Initial Vendor Responses,

First Cut 23-Sep-2004• Complete Initial Vendor Presentations

Second Cut 8-Nov-2004• Review Vendors Prelim. Proofs of Concept Jan-2004• Conduct detailed POC with Selected

vendor finalists. Feb-2004• Refine costs and incremental staff

requirements Continuous• Align scope based on features and capabilities

supported by vendor solutions Jan-2004• Define integration points between BMS and

applications outside BMS Scope Jan/Feb-2004• Define phased deliverables Feb-2004

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BES Financials (000 Thousands)

2005 2006 2007 2008 Total

Capital 557 557

Expense 161 161 161 161 644

Includes Phase III implementation and Phase IV requirements gathering for 2005

Revised upward from $135K to $161 as a result of Oracle software maintenance cost estimates

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BES Sales/Customer/Other Service Efficiency and Avoidance Savings

($ Thousands)

Year CS/MS Committed

CS/MS Cumulative

Other Dept TB Verfied

Other Dept Cumm

All Depts Cumm

2004 0

2005 175 175 85 85 260

2006 525 700 85 170 870

2007 700 1400 229 399 1799

2008 700 2100 229 628 2728

Total Savings over 4 years is 2.7 MM

Committed in 2005 budget cycle

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Next Steps• Receive Vendor response to RFP 13-Sep-04• Update to Fincom – Ben Johnson 25-Sep-04• Receive Volunteer

feedback on requirements 16-Oct-04• Finalize requirements and

Define Scope for BMS Phase I Oct 2004• Complete Preliminary Vendor

Presentations Nov 2004• Confirm Preliminary

Vendor Cost projections Nov 2004• Obtain Preliminary

Board Approval on Budget Nov-2004• Confirm Scope and budget

information based on POC Feb-2004