June 2005 Board Plenary Session Sally Waselik Business Management System (BMS) and Business Entity System (BES) Project Status June 2005 Board Plenary Session Sally Waselik

Objective Recap Progress to Date Next Steps Business Management System (BMS) Business Entity System (BES) Next Steps Building our Business Framework for the Future

Major BMS Project Highlights Progress to Date Major BMS Project Highlights Current System – IEEE Customer Service System (ICSS) ▪ Board approved project to upgrade environment in June 2004 – Completed Future System – IEEE Business Management System (BMS) to support membership and customer needs ▪ With support of the IT Strategy Committee (ITSC) – enabled the definition of the business requirements and solution selection ▪ ITSC and IOC approved progress to date ▪ ITSC shared financials with FinCom and received board approval for budget in November 2004

Major BMS Project Highlights Progress to Date Major BMS Project Highlights Strategic Architecture Solution - Siebel: - Signed a software license agreement with Siebel on 30-Mar-2005 - This solution is highly scalable, large customer base using the software today - have demonstrated the ability to support multi-tier environments - is extensible for our current/future needs - Out of the box functionality to support integration is well thought out (supports interface to Oracle Financials, etc.) - documentation/training is excellent- toolkit is quite efficient in handling configuration - is meta data driven to assist our design for the 360 degree view of our customer - Analytics engine will assist us with information access/ad hoc querying etc. - Can support our BES needs (corporations, universities, government, etc.)

Project Implementation Next Steps Project Implementation - Initiated Discovery Phase . Started Monday, 09-May-2005 – Complete Friday, 30-Jun-2005 . Discovery Phase - Enables us to confirm requirements scope, project plans and implementation costs ~ After completion of the Discovery Phase – we will be able to confirm the budget . Target – 1st week of July 2005 - Initiate Implementation Phase - Mid July 2005 . Be operational for the 2007 Renewal . Meeting with Joe Lillie Friday to discuss budget approval process if there are changes - Involvement with the Users has been key to ensure we have captured requirements and identified opportunities to simplify our business operations where they exist

Key Opportunities under review to finalize Plan Next Steps Key Opportunities under review to finalize Plan - Service Oriented Architecture (SOA) – Build reusable services - Business Analytics – Information Architecture - Sales Force Automation (SFA) - Business Entity System (BES) timing - Business and Rule Simplification - Concurrent users assessment/environment sizing - Isolate key costs and review - Vendor costs review/negotiation - Balance of use of IT resources - Best contract type with consulting partner

Building our Business Framework for the Future Key Capabilities - 360 degree view of IEEE members/customers - Increased Flexibility . Roles, permissions and titles . Member grade/Individual Type attributes, privileges, rules . Multiple item/product-type shopping cart capabilities . Promotion/pricing/revenue overrides and multiple campaign tracking options - Ease of Information Access . Ability to get the information you need quickly the way you need it . Real time access to information . Building our authoritative source of member/customer information . Use of analytics as a dashboard for any one’s tracking key indicators

Building our Operational Framework for the Future Key Capabilities - Strategic Technical Framework . Service Oriented Architecture (SOA) – Build reusable services – Design for future use . Increased end to end interoperability - Streamlined Operational Efficiency . Streamlined User Interface and work flow . Simplify our business processes and business rules . Integrated view of our operational environment

BMS Capital/Expense View Progress to Date BMS Capital/Expense View 2005 2006 2007 2008 Total Capital Budget November 2004 3.770m 1.120m - 6.010m Expense Budget November 2004 .655m .863m 1.074m 3.666m

BES Capital/Expense View Progress to Date BES Capital/Expense View 2005 2006 2007 2008 Total Capital Budget November 2004 .557m Expense Budget November 2004 .161m .644m

Thank you!