3 Step Upgrade Anton Chilton – SVP Global Services - QAD Jeff Kohagen – Consulting Manager - QAD

3 Step Upgrade Plan 1 2 3 Value Plan Deliver

Recent Enhancements, New Modules 2007 MANUFACTURING EXECUTION WORKBENCH JUST-IN-TIME SEQUENCING TRANSPORTATION MANAGEMENT DESKTOP SHIPPING SALES FORCE AUTOMATION .NET UI 2007 MARKETING AUTOMATION QAD ENTERPRISE APPLICATIONS 2007

Recent Enhancements, New Modules 2008 GLOBAL ENTERPRISE EDITION ENHANCED CONTROLS MOBILE FIELD SERVICE PRODUCTION SCHEDULER WORKBENCH CONFIGURATOR .NET UI 2007 DEMAND MANAGEMENT DISTRIBUTED ORDER MANAGEMENT

Recent Enhancements, New Modules 2008 2009 CUSTOMER RELATIONSHIP MANAGEMENT SERVICE & SUPPORT MANAGEMENT FIED SERVICE SCHEDULER MOBILE FIELD SERVICE PROJECT REALIZATION MANAGEMENT PRODUCT INFORMATION MANAGEMENT REPORTING FRAMEWORK OPERATIONAL METRICS ENTERPRISE FINANCIALS

QAD Enterprise Applications Development March 2007 September 2007 March 2008 September 2008 April 2009 2002 2005 MFG/PRO eB2 MFG/PRO eB2.1 QAD 2007 QAD 2007.1 QAD 2008 EE QAD 2008 SE QAD 2008.1 EE QAD 2008.1 SE QAD 2009 EE QAD 2009 SE QAD Standard Financials Shared Services Domains QAD Enterprise Financials (EF) QAD Internationalizations

New Features - EE COA Mask Self Billing Tax Registers Now on shared set level Allows for a global chart of accounts with control on local (domain) combinations Self Billing Tax Registers Tax register create Italian tax registers

New Features Statutory Currency Shared Set Merge Daybooks / AP Daybook Sets Regional Balance Sheet / Income Statement SSM Accrued / Deferred Revenue Reports Operational Metrics Picklists for Depot orders

New Features International Legal Documents Reporting Framework Supports documents for shipping / receiving documents Control file setting to keep invoiced sales orders Reporting Framework Create reports directly from browses Use EE financial browses

Upgrade Considerations 10

QAD 2009 EE Upgrade Considerations Financial / Regulatory Business Implementation Technical Security Customization Reporting Tools Training Upgrade Plan

Financial / Regulatory Considerations 12 12

Financial / Regulatory Considerations Internationalization – localizations are removed International regulatory functionality incorporated in base product Can impact all users Time phased consolidation of international requirements

Business Considerations 14 14

Considerations Understand your objectives in upgrading Reporting requirements Business analysis requirements Is there a clear definition and understanding regarding shared services requirements ? Measure baseline metrics before upgrade Degree of change management or managing change that will be required Is there a definitive list of customizations Is there an understanding of frequency of use Is there an understanding of who owns each customization Is there an understanding of what each customization does. A go forward review and migration strategy for all customization will be required Every go forward customization will have to be domainized Customizations must be reviewed for compliance to .NET Standards, and to determine impact of schema changes 15

Business Considerations The amount of business process reengineering that is envisioned to support initiatives such as Lean, Shared services, etc. Customer Service Applications Support Operations Accounts Receivable Accounts Payable

Business Considerations General Ledger Expanded Account Structure New Reporting Structure Format Positions Removed Additional Setup Business Relations Shared Services AP AR

Business Considerations Is there an understanding of what new functionality is available or net change from legacy version? Will there be new features and functionality the business will be taking advantage? Enhanced security CRM Lean manufacturing PIM Production schedulers EAM CSS Configurator Warehousing

Implementation Approaches 19 19

Implementation Considerations Is this project considered a new implementation, technical upgrade or is it a reimplementation Will a business process assessment (BPA) be required Will business process reengineering (BPR) be required Is this project a “lilly pad” for another upgrade – If so, how can it be positioned for the next upgrade

Re-define Business Processes Upgrade Scenarios Technical Migration with data conversion Customization Data Conversion Small Process Changes Optimization Technical Migration without data conversion Conversion Data Load Small Process Changes Optimization NOTES FOR LYNNBoxes instead of buttons And 1st large box is a project & 2nd box is a project (optimization) 1:1 Convert Database Data setup still fits the needs Historical data important to keep Reload master data Data setup needs to be changed and/or cleaned up Historical data is not important to keep or even in bad shape Small Process Changes Replacement for customizations with: Standard functionality Output management Data warehouse/ BI Process changes that are more effective to do now, then later as optimization. Re-implementation Business concept and processes are changed Setup master data is changed dramatically and/or poorly maintained Historical data is not important to keep or even in bad shape A lot of new functionality to implement, that has to be done on that moment and cannot be postponed to an optimization phase Standardization It is a real new start Re-Implementation Re-define Business Processes Non-Intrusive Customizations Data Load 21

Centralize/Standardize First QAD MFG/PRO 8.6, 9.0, eB, eB2 QAD 2007 QAD 2008 Standard Edition QAD 2009 Enterprise Edition ERP Database Plant 1 ERP Database Plant 1 ERP Database Plant 1, 2 and 3 ERP Database Plant 1, 2 and 3 ERP Database Plant 2 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 3 22

QAD 2009 Enterprise Edition Migrate first to QAD 2009 Enterprise Edition, than Centralize and Standardize QAD MFG/PRO 8.6, 9.0, eB, eB2 QAD 2009 Enterprise Edition ERP Database Plant 1 ERP Database Plant 1 ERP Database Plant 1, 2 and 3 ERP Database Plant 2 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 3 23

Technical Considerations 24 24

Technical Considerations Architectural Number of databases Number of domains Options Single database with multiple domains Multiple databases with multiple domains Single database with single domain

Technical Considerations Database and domains considerations Strategy for points of failure (single or multiple) Database maintenance or shutdowns strategy Language considerations in the same database How many sites are you willing to upgrade at once Time zone considerations

Security Considerations 27 27

Role Based Security All application security in QAD 2009 EE is role based Roles are defined for each discrete area of the business using Segregation of Duties concepts Roles are linked to menu functions using Role Permissions Users are assigned access to Domains and Entities Users are assigned to roles for Entities and Domains Tools provided for the automatic loading and editing of default roles and permissions XML integration already available

Customization Considerations 29 29

Customization Considerations The number and types of customizations to the legacy system Is there a definitive list of customizations Is there an understanding of who owns each customization Is there an understanding of what each customization does Plan to replace customizations with standard functionality Remember - every customization in a multi domain database will need to have the domain key added API’s and interfaces to 3rd party software Needs to be fully identified and go forward strategy developed Is it within scope to update 3rd party software solutions QXtend – Integration Framework

Reporting Considerations 31 31

Reporting Considerations Requirement Solution Ad hoc reporting Inquiries Typically a one-time request for data Standard reporting Typically run weekly, monthly, etc. Fairly static in layout, query parameters, etc. Can be run in batches and on a schedule Forms and labels Invoices, orders, etc. Package labels, barcodes BI reporting Data Warehousing Metrics/models OLAP reporting .NET Browses .NET Reporting QAD BI 32

Workbenches, Browses, Collection Pre-set with user ability to change and create new

Reporting Create New, start with Browse, or modify Existing QAD reports Add images, graphs and other controls Additional Features Windows Task Manager Schedules Output documents, Excel, PDF Release with QAD EA 2009 includes samples Existing reports converted over time Sam pl make a 3 screen build Support forms and reports 2009 EE and SE – (Financials still has Crystal) Core functionality – set-up, printing, displaying, generating to doc, excel or pdf Integrated designer – WYSIWYG Right click to design mode for fonts, colors, fields, layout, etc Includes the ability to print Bar codes Future – Document mgmt, replacement and standardization of current reports 34

Business Intelligence QAD BI 3.0 Business Intelligence Return “Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization.” Available NOW for Early Adopters GA in March 2010 Want more information? Monica Borrell mob@qad.com 503-329-2394 talking notes: QAD BI 3.0 is our enhanced BI offering. It has a new architecture, enhanced business content. It allows data to be consolidated from both QAD and non- QAD data sources. Please contact Monica Borrell at mob@qad.com for more info What resonates? QAD Proprietary

Tools Considerations 36 36

Standard Conversion Tool Domain Merge Tool Custom Code Conversion Tool Tools Standard Conversion Tool Domain Merge Tool Custom Code Conversion Tool Program Tracer Tool Non-intrusive customization framework 37

Standard Conversion Tool Background Finance module tables re-built Conversion guide Document of the conversion process and required information Pre-conversion utilities Define basic set up decisions, and produces data integrity reports Conversion Typically need to run multiple test conversions Post conversion validation Configuration 38

Training Considerations 39 39

Training Considerations Consider Enterprise Financials as an implementation of a new module – Core Team Introduction to EE (5) Advanced Financials (4) Security (1) Reporting Framework (3) Non-intrusive customization (5) System admin (4) Conversion (3) Assess the training needed for the operational modules

Training Considerations 41

Easy On Boarding Place holder

Appendix Upgrade Plan

Q-Advantage Implementation Methodology Plan Design & Configure Test & Accept Deploy & Evolve Implement Manage Kick-off Project Complete Process & Technical Design Train End Users Complete Final Data Load Agree on Business Process Solution Design Train Core Team Complete Data Validation & Functional Testing Execute Cut-Over Plan Agree on Project Controls Build System, Scripts & User Procedures & Convert Data Complete System & Performance Testing Post-Launch Evaluation QAD Consulting uses a proven methodology - based on our extensive and deep industry expertise - when helping clients to implement and customize QAD solutions. We have a set of best practices templates that helps you optimize your operations and get up & running quickly and smoothly. We work with your team of Key business resources, IT staff, and end users, to transfer knowledge, streamline business processes and promote self-sufficiency. For companies with multiple sites being implemented, we support a Core Model implementation, which develops a core solution package per your recommendation that can be used to Quick Start additional site implementations. The Plan Phase –Adequate planning assures the fit and value of the result and paves the way for fewer problems later. What starts right tends to stay right. The Kick Off Meeting sets the project direction and objectives. Objectives are clarified and a plan and schedule to complete the Plan Phase are completed. The Business Solution Design results from identifying issues with the current business solution and defining Business Processes supported by QAD arriving at interface, 3rd party and custom requirements. Establishing Controls & Policies assure that the project is directed as cleanly as possible and pre determines how risk and problems will be addressed and managed avoiding unnecessary conflicts. The Project Plan lays out what tasks must be completed when and by which resources to produce the desired deliverable, “Successful Solutions on time and on budget” Wise use of Customer Resources help for a “Center of Excellence” to support end users and future implementations and roll-outs Many projects involve the implementation of multiple locations and entities. The development of a core model that delivers a foundation solution can then facilitate rapid and quality roll-outs to subsequent locations. The Design & Configure Phase – Building the solution blue print builds the solution tailored to produce your desired results. A complete functional and technical design that focuses on the desired business processes that drive improvements is created and documented. Training a team of your key process owners assures the design is your design and involving them in the design and configure process builds internal expertise and self sufficiency for continual improvement. As part of the design process the system is built, meaningful test scripts are developed all of which lead to documented User Procedures to help manage the change for End Users. Solutions to identified gaps are designed, documented, developed and tested to assure they work and can be supported. All of the above are developed, tested, refined and validated through a planned series of increasingly more precise Conference Room Pilots or prototypes. Your participation in this develops internal experts and change facilitators. At the end, the solution is very complete picture of how you will do business in the future. The resulting CRP will often be used to jump start the pilot phase for other plants or locations. The Test & Accept Phase – Training and using End Users to validate the process, procedures, and performance of the system to assure readiness for live processing. End Users are trained by Customer Project Team using Process Procedures developed and refined in prior phase Data is loaded and End Users validate Functionality by executing a day in the life, and assuring results are correct. System and performance testing is complete as End Users execute a day in the life, putting a full days stress on the system. Customer Project Managers and Team Leads evaluate Test Acceptability and advise changes as necessary for re-testing. A plan is developed for cut-over to live processing as well as deployment of the solution to all users and sites. The Deploy & Evolve Phase – Pinal preparations, beginning and supporting live processing and assuring the solution is optimal on an ongoing basis Prior to beginning live processing data is loaded up to the date of cut-over to assure a seamless data transition The plan created previously for cut-over is executed for transaction processing, reporting, and closings, while being supported by QAD consultants. As each part of the cut-over plan is executed, it is evaluated. At the end of the cut-over plan the project and current state are evaluated again to assure that any issues and improvement opportunities are addressed. Support and maintenance is transitioned from the QAD Project Team to AMS. If the implementation include rollouts to additional sites or a Core Model, adjustments to the Core Model and Rollout Plan based on the resulting implementation are completed. Communication and Change Management - Every project will introduce significant changes to the work being performed and opportunities for miss-communications. The methodology stresses managed communications both through the early agreement on project controls and policies, but also by calling out key communication points. Change Management is facilitated through involvement of Key Users in the design, and development of End User Training and Procedures. A focus on specific other change management steps are available when desired. Program / Project Management – Critical elements of Program / Project Management are integral to the methodology starting with agreeing on project Scope in the form of the Business Solution Design, project controls in the form of the Program/Project Management Plan, and resources and scheduling in the form of the Project Implementation Plan. Ongoing Risk evaluation and analysis as well change control tools and processes are also integral to the methodology. The Change Control Policy defined in the Program/Project Management Plan clearly controls the process for changing both Functional Scope (Business Solution Design) and Project Work Scope (Project Implementation Plan. Incident and requirement changes are controlled through reports and logs. Project Team and Steering Committee meetings keep issues and change requests within the bounds of the project. Frequent Risk Assessments, assure the impact of external influences are mitigated and included in planning and ongoing assessments. Sign-offs assure closure to project deliverables and major phases. Agree on Project Plan & Resources Develop, Deliver & Test Custom Solution Conduct Stakeholder Validation Session Manage Applications & Support Determine Core Model / Rollout Requirements Validate / Refine Solution via CRP Cycles Develop Cut-Over & Deployment Strategy Adjust Core Model & Rollout Plan Communication & Change Management Program & Project Management 44

Sample Plan Phases 0 - Engage 1 - Plan 2 - Design & Configure 3 - Test & Accept 4 - Deploy & Evolve

Phase 0 - Engage Complete Customer Profile Customer Full Product Presentation Functional Scope Workshop Technical Interview (infrastructure, sizing) Customization Scope

Phase 1 - Plan Initiation Activities Present Scope & Assumption (operational changes vs technical upgrade) Kickoff & Train on Methodology Project Management Planning Workshop "Present PMP - Org, Policies, Change Process" Multi-Site Strategy Workshop Quality Assurance Planning Workshop

Phase 1 - Plan Change Management Strategy WS Business Solution Design Activities Custom Systems Design & Estimate Present Process Packaged Process Maps & Demo Execution Process Gap Analysis if Required & Resulting work as Change Order Project Implementation Plan WS Baseline Measurement Workshop (metrics) Phase Closure Activities

Phase 2 – Design & Configure Technical Team Training 2009 EE Installation Class 2009 EE Administration Class QAD Reports Training 2009 EE conversion training 2009 Non intrusive customization layer training (confirm that this includes xml loads) Security training Infrastructure development Install project environment Customer Database Review/Prep Data conversion test #1 System performance test planning Core Team Training User Interface training Introduction to EE Financials 2009 EE Advanced Financials

Phase 2 – Design & Configure Solution Design Data conversion review GL - process design AP - process design AR - process design Reports Develop security model Development activities Programming tasks Third party integration CRP Cycles CRP1 - initial pilot / prototype Create test scenarios / scripts data conversion # 2 Execute scripts CRP report out Issue review

Phase 2 – Design & Configure CRP 2 Update test scenarios / scripts data conversion # 3 Execute scripts CRP report out Issue review Documentation Work aids GL - work aids AP - work aids AR - work aids

Phase 3 – Test & Accept Develop and Agree upon Test Plan Acceptance Test Preparations Conduct End-user training - for User Acceptance Test Conduct Final Acceptance Tests Conduct Performance Tests Phase Closure Activities

Phase 4 – Deploy & Evolve Develop cut-over plan Complete production system preparation Full end user training End user practice sessions Migration activities Go Live conversion Support post live processing Close and handover project Prepare for next site installation