Supply Chain Visibility and CollaborationAn Infosys-Microsoft joint initiative

Executive Overview – 27-Jan-2009

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In a multi-enterprise high tech supply network, visibility remains one of the most stringent hurdles for effective planning and execution

Fragmented Supply Chain systems & processes

Self-contained components with high barriers of interaction

Multiple demand signals, customer segments, channels,partners & methods

Varied levels of technology and process standards

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Thru our research and customer interactions we see a rising need for Supply Chain Visibility and Collaboration

Shortening Product Life

Cycles

Intensifying competition

Shrinking Revenue and

Profits

Expanding supply

network

Which Means…• Improve internal supply chain user

experience - cut down data acquisition time.

• Provide platforms to do rapid analytics with quick change of decision parameters

• Real time information visibility for key supply chain decision making.

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Customers Are Challenged..

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• Rapid Response to Change

• Increased Simulation /

Analytics

• Improved transparency

• Real time decisions involving

partners

Thereby Increasing Need for...

• Complexity - 42% of respondents indicated that by 2010 their supply chain would become more complex • Fragmentation - 70% acknowledged disruptions in their supply chain and took hours to gain visibility into

problems• Data related issues – 25% of SC professional’s time is spent in resolving data related issues• Need for collaboration – 91% still use basic technologies such as email as the primary means of

collaboration

Results from our recent HiTech survey indicates that Visibility and Collaboration are among the top priorities for organizations

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The Infosys-Microsoft value proposition in Supply Chain

• Community for IP development• SC talents across verticals and

functions• Social network for SC professionals

(www.nextgenerationsupplychain.com)

SC Center of Excellence SCV platform – iterative renovation

SCV Modules - Speed of Time to value

Hosted, trusted 3rd Party Services

• Modular approach• Familiar Office user interface• Minimal user training• Augmented ROI on current IT landscape

• Pre-built framework• After sales service, Inventory, Procurement

• Risk free adoption• Perpetual front-end; variant back-end

• Highly secured environment• Multi-Enterprise visibility• Collaborative relationship

Sample results delivered:• Reduced on hand inventory for a Major consumer electronics by ~20%• Reduced order fulfillment lead time by 50% for a semiconductor company• Helped a leader in Power Generation Equipment reduce time to market and cut engineering TCO by

40%• Helped Automotive Systems Manufacturer optimize IT Infrastructure and save $1 million

annually

Infosys and Microsoft join forces to create synergy of business process expertise and state of the art technology that can address the complex supply chain issues in the global environment. Benefit to the client is speed, accuracy and cost effective solution to their supply chain problems

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Our solution consists of multiple business modules built on the Supply Chain Visibility (SCV) platform

SC operational enhancement via effectiveness and efficiency improvements

Alignment Process diagnostics; SC alignment to business strategy; Governance

Visibility & Collaboration

Cross-functional Performance Management, Real-time event and exception management; Co-planning

Optimal performance

Multi-node information integration, role base collaboration

Analytics Collaboration

Personas

Initiatives

What-If

Service Performance Workbench

Procurement Workbench

Inventory Visibility Workbench

Demand Management Workbench

Industry Models and pre-configured persona-based KPI catalog for 20+ process areas like Contact Center, Repairs, Procure to Pay, Contract Compliance, 100+KPIs, 200+ Metric, 40+ Dashboards, 40+ Scorecards and Function specific exception based collaborative workflows

Infosys SCV Business Modules

Integration Accelerators for Leading ERP, CRM systems.30+ Custom Initiatives Custom KPI management, Dash boarding.Scorecarding and Reporting, Alerts, Whiteboarding and Advanced Collaboration

Infosys Supply Chain Visibility

Platform

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The SCV platform provides the repeatable capabilities for visibility and collaboration across multiple business processes

Actionable visibility

• Secure interoperability• Avoid cumbersome layers of

technology• Bi-directional action

Role and exception-based

analytics

• Synthesize disparate systems• Simplified workflows• End-user productivity

Flexible collaboration and

execution

• Multi-dimensional collaboration• Unstructured environment• Information available and

consumable

MICROSOFT IS THE ONLY PROVIDER FOR INFRASTRUCTURE, ROLE-BASED PRODUCTIVITY, AND GLOBAL PERFORMANCE NETWORKS.

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The business modules that we have built on top of the SCV platform leverages our pre-built IP for accelerated deployment

Initiatives Collaboration

Service Supply Chain Supply Chain

Pre-built technology components on top of Microsoft product stack

Supply Chain frameworks & Metrics Hierarchy

Pre-built data models for manufacturing industryMetric ID KPI Flag Metric Name Metric Type Metric Business

DefinitionMetric Formula

CC1 Yes Call Center Cost Derived Total Cost of Call Center Operation

No of agents* Rate/ hr*No of hours (This is just an eg)

CC2 Average Agent Rate/ Hr Base Rate in $ Rate

CC3 Average Running cost per center per period DerivedThe avg cost of running a Contact Center for the enterprise

Sum of (amortized fixed costs + Variable costs) / No. of contact centers

CC4 Cost Per Call DerivedThe cost of call arriving and being answered at the call center

Calls Per Hour/ Agents Hourly Wage

KPI Catalogue for forward supply chain and reverse supply chain

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The Service Performance Workbench is our solution that enables organizations unlock significant value from their post sales service supply chains

“How can I acquire new customers by affecting a positive resonance from existing customers?”“How can I protect my existing customers from competition?”

“How can I fetch Additional revenue stream over the lifecycle of product and/or service ?”“How can I maximize my profitability using my Relatively lower investment in services infrastructure and still maintain flexibility in resource usage?”

“How can I increase my customer satisfaction by lowering response and resolution times?”“How can I improve the overall customer experience ?”

“How can I bundle products during service interactions with existing customers?”“How can I cross-sell/up-sell related products and services?”

Customer Loyalty

Differentiated Service

Service Revenue

Bundled Products

On Average, Companies that have deployed field service solutions have seen 19% boost in customer retention

• A provider of printing solutions was able to reduce order resolution speeds by 50% by measuring and improving areas of deficient performance such as work order taking and scheduling procedures

• Due to lack of timely access to work order data, a major supplier of process control solutions for the semiconductor industry lost significant revenue as billing cycles were as long as 45 days.

• 49% of Service centers in leading manufacturing companies also conduct direct selling activities

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The Procurement Workbench solution delivers significant cost savings by making business users efficient at taking effective decisions

“How can I get visibility into the spend under my management and identify savings opportunities? “How can I reduce costs without increasing supply risks?

“How can I get visibility into potential order and shipment delays that will impact manufacturing?”“How will my decision to resolve a problem impact other parts or locations?”“How can track the set of metrics that will help me control the process effectively?”“Who are the suppliers who are not doing well and how can I managed their supply risk?”

“How do I ensure high visibility of demand, inventory and order data to my suppliers?“How do I reduce supply lead time deliveries and increase supply reliability? “How can I reduce the operations costs by enabling each buyer to manage more spend?”

“How can I manage leakage in Sourcing savings through better compliance?”

“How can I reduce out of contract buying?”“How can I compliance with SOX and other local laws?”

Spend Visibility

Supplier Collaboration

Delivery Performance

Managing Better Compliance

On an average, business users spend more than 30% of their time finding information and not leveraging it

Average cost savings for transactions compliant with contract is 22% A leading semi-conductor manufacturer reduced its indirect spend by 10-12% in certain categories

by getting visibility into the spend by various divisions and simple leverage opportunities A leading conglomerate increased contract compliance from 35% to 84% through better visibility

into spend leakage data A large OEM reduced it’s inbound inventory and working capital by 25% in certain product families

through visibility into supplier inventory, proactive exceptions and effective collaboration

cvv

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Inventory Performance Workbench enables supply chain managers to efficiently monitor and control the inventory for a lean supply chain

“How can I reduce my inventory levels without impacting the service levels?” “How can I reduce obsolescence because of frequent changes in product design?”

“How can I increase my customer satisfaction by making true order promises?”“How can I ensure that I do not miss the Service Levels imposed by my big customers?”

Improve the Working Capital

Customer Satisfaction

Minimize Lost Sales“ How can I minimize lost sales because of stock outs?”“How do I have better visibility of inventory in my channels?”

“How can I reduce inventory carrying rate and cost?”“How can I reduce unnecessary expedites by avoiding delays in getting information ?”“How can I eliminate penalty $$ for missing service levels of my key customers?”“How can I reduce the huge amount of manual effort in getting the right data? “How can my planners collaborate to plan for effective demand supply balance?”

Improve productivity

In an Infosys survey with 30 high tech companies in the US, 73% mentioned that because of lack of visibility they cannot control unnecessary ageing of inventory; 69% mentioned that they end up stocking high inventory to address demand volatility

Some companies do not have the right set of metrics defined, most rely on supply chain data exchanged through e-mails, planners and channels spend a huge amount of time in manual synchronization of their data

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Customer Intelligence Workbench enables Sales & Marketing teams to efficiently manage team performance and improve campaign effectiveness

“How can I track sales team performance based on preset Performance indicators?” “How can optimize predictive trending of sales?”

Sales Force Effectiveness

Campaign Effectiveness

“How can I optimize the campaign channel?”“How can I track early adopters and non adapters across territories?”“How can I better understand customer preference of channel for campaigns?”

“How can I analyze customers based on demographics? “How can I track campaign outcomes across all segments of my customers?” “How can I track customer segment shifts across all my brands?”

Customer Segmentation

A leading digital lifestyle company was able to achieve significant improvements in productivity and effectiveness by implementing a system to facilitate data driven analysis programs

Campaign lifecycle reduced from 8 hours to 2 hours 50% reduction in application maintenance due to a single source of truth for Campaign data Significant Improvement in ROMI

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Customer Success Stories

Leading global imaging major

Supply Chain Analytics

Delivered end-to-end supply chain analytics solution including performance indicators, scorecards, & dashboards to improve demand intelligence and access to information.

Largest consumer electronics company

Real-Time Collaborative Portal

Built a worldwide collaborative portal solution to enable partners and customers to have a clear, real-time view of the status of purchase orders, sales, shipping, and inventory.

Largest oil & petrochemical group

Supply Chain Visibility

Consolidated real-time information from 20 sources into a visual, map-based solution to track assets for improved Hurricane management and response capabilities.

Large Engineering company

Supplier Collaboration

Deployed a collaborative commerce network to integrate disparate internal ERP and external partner systems & improve visibility and streamline ordering processes for suppliers.

Manufacturer of multiple consumer products, including batteries,

Supply Chain Analytics

Implemented a solution to surface live supply chain data from back-end Line-of-Business applications in the Office platform, improving productivity, search, and collaboration capabilities.

Leader in video game console market

Supply Chain Analytics

Consolidated 140 actions, workflows, applications, reports, and data into an Office-based supply chain visibility solution in 45 days.