GLOCO Product Assurance System Team 2 May 5, 2012 Alex Blokker Joseph Hall John Longmire Rachel Noiseux Stan Rajan 1

Business Problem GLOCO Supply Chain Primary diversion on high-end medical device equipment Various distributors, manual touch points Product Counterfeiting Brand deterioration Increased consumer risk Revenue loss (3% Annual Pacemaker Sales in $24M) 2

New Service Offering - GPA GLOCO Product Assurance (GPA) system Increase product revenue ($24M+ annually) Reduce risk to GLOCO, customers, patients GLOCO will utilize RFID tracking for enhanced tracking and authenticity verification of pacemakers for GPA subscribers GPA Customer Benefits Notification of fraud or product issues (recalls) prior to use Reduced risk to patients implanted with these devices Eliminates manual paperwork and data entry for tracking 3

Use Cases: Verification & Warranty 1 During pre-op, the pacemaker is scanned for both its RFID and barcode. A unique ID (surgery code, patient id, etc.) is entered or scanned as well. 2 GPA transmits the data to GLOCO where the product codes are matched and the device is checked for any known issues. 3 The pre-op user receives notification immediately with the product’s authenticity, viability, etc. 4 After processing the warranty information, GLOCO sends the hospital an electronic record of the warranty, thus eliminating any manual paperwork. 4

Functional Requirements Solution 5 The user must be able to: Select GPA function Conduct product verification Warranty registration Conduct inventory update Input alphanumeric data GLOCO must be able to: Store ERP data using GS1 standards Ability to provision RFID tag

GPA Technical Architecture 1.Product Serialization and RFID Management: SAP Auto ID 2. GPA Mobile Application 3.G-WARP extensions 4.ERP extensions

Data Management GS1 Standards for Healthcare Data Used Global Location Number (GLN) Global Trade Item Number (GTIN) Data Collected from two main sources: GLOCO The Customer (Hospital) 7

Deployment Considerations Time to market Minimize patient risk and revenue loss Minimize impact on current operations Mitigate project risks; Establish contingencies Identify roadblocks early Upfront design and assessment Create frequent success milestones 4 Phased Approach 8

System Deployment Phase 1: Set-Up Acquire and Install Dev resources User Interviews Technical Assessment Software Spec document Technical Gap assessment Reference Architecture Phase 2: AUTO-ID AUTO-ID Install ERP Integration Floor equipment install and config Floor equip testing Floor user training Testing Parallel usage Cutover Phase 3: G-WARP G-WARP development Integration to ERP Outbound messaging dev Testing Promote to Production Go Live / cutover Phase 4: GPA Configure Environments Mobile App Dev Agile Test Iteration 1 Agile Test Iteration 2 Code Complete Testing Promote to Production Go live 9

Operational Governance RolesResponsibilitiesParticipants GPA Executive Project Sponsor  Secures spending authority and resources for the project  Champions the project to the enterprise  Stays up to date on project activities  The ultimate decision makers for the project GLOCO CFO GPA Project Steering Committee  Provide project oversight and control  Champions project the key organizations  Approve project deliverables  Provide issue resolution  Approve scope changes  GLOCO PMO, Application Delivery, Technology & Operations, Manufacturing, Distribution  Coeur Hospital GPA Project Manager  Ensures Project Team completes the project  Develops Project Plan with Project Team  Secure approval of deliverables from Steering Committee  Report and escalate issues to the Steering Committee GLOCO Project Manager GPA Project Team  Produce Deliverables  Execute Project Plan tasks  Train End Users  Application Developers  Systems Analysts  Business Analysts from Manufacturing and Distribution 10

User Enablement Deployment Team Sales Representative Training Staff Technical Resource Training Enhance support from GLOCO Warranty staff (FAQ’s) Customer staff training with rollout Follow-up training sessions as usage expands Communication Leverage Sales Representative communication channels Coordinate demonstrations and technical consultations Relay timeline for new products Rollout Plan Training Knowledge Management Commun- ication 11

User Enablement Deploying the Product Assigned Deployment Team Rollout by Product Enhance Current Support Channels Launching the Service Leverage Corporate Systems Issue Tracking, Product Feedback Iterative Documentation FAQ, Deployment Tips Rollout Plan Training Knowledge Management Commun- ication 12

Operational Readiness 13 End User 1 st Level Help Desk 2 nd Level Application Support 3 rd Level Developer Support Customer Support Processors Open Incident Perform RCA Send Solution to End User Search Knowledge Repository Confirm Bug / Open Change Ticket / Supply Patch Confirm Solution

GPA Prototype Users scan the product they wish to register RFID tag is on each pacemaker package 14

GPA Prototype RFID scan returns the product’s authenticity Registration of product can be determined based upon information presented 15

GPA Prototype Procedure ID must be provided for registration Keypad or scanning of barcode will enter the procedure ID Procedure ID ties the product to a patient 16

Success Metrics Business Benefit Increase warranty information collected by 25% Decrease the use of expired products to 1% Application Performance 99.99% availability < 4 second response time on inquiries Project Milestones Deliver the project within 10% of the projected budget Deliver 90% of milestones on time 17

GLOCO Product Assurance: Driving Higher Revenues, Higher Profits, and Higher Brand Value for GLOCO 18

Q & A Any Questions? 19