John ChenChairman, CEO, and President

Opposing Forces

Client/Server

ExplorerCOMDistributedCClusters

MainframeNetscapeCORBACentralizedJavaMPP

Dynamic and Complex Environment

Complex

Simple

Stable Dynamic

Organization

Environment

Today’sEnvironment

Fortune 2000 Environment

• 52 applications

• Multiple DBMS systems

• Heterogeneous hardware and networking

• Globally operating in six countries

• 5000 employees

Source: MetaGroup

Fundamentals To Win

Foundation is fundamental

ROI is achieved through adaptability and

integration

Essential Building Blocks

"Today, the e-Business Platform has become the foundation for a complete Internet infrastructure

that will adapt to handle applications as services to the platform"

Steve Garone, IDC

Integration EnterpriseWeb Sites

305M CARG 107%

Personalization and Services EnterprisePortals

2.3BCARG 57%

Analytic and B2B ApplicationsSelf-ServiceCRM, B2B

2.4B CARG 80%

Foundation DepartmentalWeb Sites

705M CARG 100%

Source: IDCIT Spending Y2000

“Always Available”EnterpriseSelf-Service1.0B

Two Opposing Choices to Reduce Complexity

Make everything work together

Make everything the same

SyBuild: Sample Fortune 2000 Company

• Respond to change quickly

• Reduced latency

• Leveraged ERP investments

• Reach all your touch points of the enterprise

• Increased collaborative interaction

• Liquidity

ROI Value Points

Solution 1: Make Everything Work Together

Advantages

• Re-use existing applications that work• Use of best-of-breed applications

• Reduce latency

• Lower overall cost

• Faster to deploy

Advantages

Disadvantages• Need to challenge people to learn to be more aware

Cost Model

AdapterSoftware

$600,000

EAI software

Includes (6) adaptersat 100K each.

$250,000

EAI Hardwarecosts

$75,000

ProfessionalServices

$4.250M 5x cost of software

$5,452,500Source: MetaGroup

1st year maintenance

$127,500 15% of software

Training $150,000 Assume 10 classes

Use of Standards and Integration

• EAI open frameworks

– Adapters to applications

– Adapters to messaging infrastructure

• Use emerging standards

– XML, J2EE, Web Services

• Graphical process modeling and generation

• Reusable components

Extensible Open Platform

Solution 2: Make Everything the Same

www

www

www

Planning &Forecasting

OrderProcessing

Customer Service

Manufacturing

Marketing

Documentation

Suite of applicationsfrom single vendor

Integrated throughthe use of a single database

Advantages/Disadvantages

• Simplified management• Simplified buying• Easier upgrade cycles

• Risks• No best of breed• Higher costs• Political tensions• Hard to adapt• Still need to integrate

Cost Model

Advantages

Disadvantagese-BusinessSuite Software

$2M

Applicationconfigurationcost

ERMsoftware license

Prof and staff services,configuration training$2.650M

Infrastructure ImplementationCosts

$2MServer, desktop hardware, server utilitysoftware

1st yearmaintenance

$997 15%

$8,717,500Source: MetaGroup

Speed==Profit

• Speed (soft costs)

– Delivery of services to the customer

– Option1: shorter time to deploy as well– Re-use of existing applications– Do not have to re-train all your employees– No re-organization around new applications

• Cost versus speed

– Speed drives:

– Customer attraction, customer retention and customer satisfaction

Summary

• Only ONE choice:

– Everything works better when everything works together

• Use all the attributes of the World Wide Web

• Embrace standards and complexity

• Re-use your existing assets both systems and people

• Use an extensible open foundation