New Approaches to Dealmaking for complex IT transactions

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• New Approaches to Deal-making for complex IT
  transactions
• Steve Huhn
• VP
• Worldwide Strategic Outsourcing
• hp Managed Services
• March 2003

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hp managed services worldwide experience and
capabilities

• over 700,000 square feet of data center space
• 35,000 servers under management including hp,
  Sun, IBM, Compaq, Dell
• more than 10,000 Web servers managed
• 112,000 network nodes under management
• 900,000 Gb of network traffic handled per month
• Over 500,000 desktops under management
• Over 2000 people transferred into HP from our
  customers

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hp Enterprise strength

• Power more than 100 stock and commodity
  exchanges, including 14 of the worlds largest
• Support 95 of the worlds securities
  transactions
• Help process 2 out of every 3 credit card
  transactions worldwide and 3 out of every 4
  electronic funds transfers
• Handle 80 of the mobile billing and customer
  care traffic in Europe and Asia
• Help control 65 of the worlds energy
  infrastructure

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leveraging the strength of the portfolio

• hp services will design, build, integrate, manage
  and evolve IT solutions that address our
  customers specific problems by drawing on the
  strengths of our global capabilities
• consulting and integration
• customer support
• managed services

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Hp Servicess Global Reach
Reading Dublin
Bristol
Stockholm
Montreal
Utrecht
Calgary
Brussels
Toronto
Seoul
Detroit
Böblingen
Paris Valbonne Madrid
Kanata
Tokyo
Frankfurt
Cincinnati
Zurich
Beijing Shanghai
Colorado Springs
Grenoble Milan
Atlanta
Hong Kong
Dallas
India
Houston
Mexico City
Singapore
Caracas
Bogotá (CS)
Kuala Lumpur
Darwin
Sydney
São Paolo
Melbourne
Melbourne
New Zealand
Buenos Aires
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Deal-making Misconceptions

• Deals are sold
• Deal-making is about sharp negotiating
• The best solution always wins
• Deal are won by solitary heroes

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Deal-making
Gather your information

• Deal making is a complex mixture of multiple
  skills and talents.
• It is as much art as science.
• Deal making requires new approaches to process
  and new ways of motivating and rewarding behavior

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Deal-making ingredients
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Our approachthe hp approach to the engagement
(complex deal-making) process
Opportunity Phase
Negotiations and Transition Phase
Faithfully recording the deal, while preserving
the value expectation
Identification and qualification of the
opportunity
Opportunity Management System
ITOM
Establishing credibility and relationship
gaining the handshake
Creation of the compelling value proposition
Win Phase
Solutions Phase
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A team is a small number of people with
complimentary skills who are committed to a
common purpose, performance goals, and approach
for which they hold themselves mutually
accountable.
Gather your information

• Individual and mutual accountability
• Specific purpose/goal, objective
• Collective work product
• Discusses, decides and Shared leadership
• Does real work together

Team Theory
JR Katzenbach The Wisdom of Teams
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leveraging the strength of the deal team

• Deal teams consist of the following skills and
  associated support functions
• Engagement Lead
• Bid Manager
• Financial Lead
• Pricing specialists
• Solution Architect
• Tower Leads
• Sales Lead
• HR Lead
• Legal
• Contracts specialist
• Study team
• Due Diligence team
• Transition specialist/team
• Account General Manager
• Corporate Development
• Other roles as needed

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• Prepare your team
• Skills/Experience
• Defined Roles
• Tools/Templates
• Access to stored knowledge
• Facilities
• Logistics

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• Deal making takes
• Intelligence
• Creativity
• Affability
• Leadership
• Courage
• Judgment

Leadership
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Risk Management

• Risks of Winning a bad deal
• Assumptions around cost of performance
• Ability to hit delivery commitments
• Price performance curve of technology and labor
  markets
• Customer viability and creditworthiness
• Inflation, Tax and Currency risks
• Versus
• Risk of Losing the deal (loss of revenue)

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Deal-making Focus Items
Creating a compelling and relevant Value
Proposition

• Creating the right relationships and
  understanding the decision process

Creation and effective use of decision support
tools

• Balancing risk allocation and preserving
  expectancy in negotiations

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• Good deal making is a balance between
• aggressively creative innovation and risk taking
• and
• in-control, quality assured, measured
  risk-mitigation.

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• Deal making is about
• Timing, intuition and judgment developed and
  honed through experience and repetitive
  application of process.
• Creativity and tolerance for risk taking beyond
  your level of comfort.

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• Deal making requires intelligence gathering and
  assessment capabilities similar to those of a
  tactical military engagement.
• It puts a premium on becoming a learning
  organization through the capture and sharing of
  lessons learned.

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Deal-making truths

• Deals are made, not sold
• Deal-making is about finding and delivering a
  value proposition that meets the customers
  perceived needs and is a fair allocation of risk
• The best solution doesnt always win
  relationship, trust, and credibility count
• Deal-making is a team sport no one person wins
  the deal

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NOKIA

• customer benefits
• business transformation partnership
• cultural fit
• flexibility and creativity
• commitment and dedication
• improved global standard services delivery
• significant improvement in operating and
  support costs
• HP technology refresh
• major server consolidation opportunities
• 25 cost reduction over time

• global delivery for business critical servers
• 7 operations centers
• 3,000 serversmostly Compaq
• 60,000 users
• 342 employees transferred to HP
• Lotus Notes, Exchange, file/print sharing
• 260M contract value

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• Currently delivering a wide range of Managed
  Services and Support services globally
• Global Network Management
• Application Development and Maintenance
• Environment transition and Data Migration
  services
• Over 100M of services annually

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Benefits to CIBC High quality, consistent
service levels Market-benchmarked
pricing Improved service policies standards
Improved billing and reporting Predictable
costs A joint governance model Strategic
partner for innovation Less distraction from
core business

• CIBC IT Operations Summary 
• IBM Mainframe
• 4000 MIPS 34 terabytes
• HP NonStop Servers
• 18 systems 8 terabytes
• 4th largest in Americas
• IBM AS/400
• 5 systems 5.5 terabytes    
• UNIX Servers- 742 systems
• IBM 229
• HP 232
• SUN 281
• new 1000 (future planned migration)
• PCs and Mail
• 45,000 office and branch

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Ford

• HP is now managing
• over 2,000 servers in 100 locations worldwide
• 180,000 users in 2,000 locations
• 200,000 IP addresses
• 140,000 Exchange mail boxes

a ten year history of successful IT services
delivery, evolving to meet changing customer needs
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DIRECTV

• HP solution
• create infrastructure to help launch new business
  and use outsourcing to manage and continually
  evolve billing system
• environment
• LAN/WAN monitoring for three call centers, 70
  WAN connections, 40 networks, and 140 systems.
  data center management
• result
• seamlessly add millions of new customers to
  monthly billing process during rapid business
  expansion
• 120M over 3 years

worlds largest direct-to-home provider of
digital entertainment programming
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Delphi Automotive

• HP solution
• design, implementation and operations of the
  entire IT infrastructure for 5,000 SAP R/3 users
  in 17 European countries, supporting more than 60
  plants
• disaster recovery concept and implementation of
  a dual data center solution
• 1st level helpdesk in 13 languages
• 2nd level SAP R/3 application support
• oversight management
• managing HPs services organizations and CSC
  Peat Marwick

Delphi needed to evolve from legacy systems to a
cost-effective new environment to support its
need for high availability and fast response
times.
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Dow Chemical

• HP solution
• customized global help desk support serving
  50,000 users in 11 languages
• result
• seamlessly support Dows rapid growth after
  merger
• higher levels of user productivity and
  satisfaction

business challenge service desks were expensive
to manage delivered inconsistent service
quality
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EADS

• HP solution
• complete range of IT services
• network management
• messaging
• desktop solutions
• application management
• 3 operations centers
• 6,000 users

This agreement will provide better support for
our business processes during the strategic
re-orientation and internationalization of the
business unit, as well as clear cost reductions
for IT and project services.
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thank you
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