Building the 100% Intel Pat Perry Director, e-Business Solutions for Sales and Marketing Intel Corporation May 15, 2003

Intel and the e-Corporation: A Historical Look Launchedwww.intel.com Formed Internet & E-Commercegroup Intel strengthens communication with suppliers; launches supplier.intel.com Intel launches global online ordering system; Reaches $1 billion in online orders in first month Intel forms E-Business Group Intel reaches $2 billion in online orders/month Intel ranked #1 e-Business by Interactive Week Intel executives sharpen focus on Internet as Business Process tool Company-wide Intranet portal gives employees access to interactive services and information Sandra Morris Top 25 e-Business Executive Ranked by Supply Chain Technology Magazine Intel is a founding member of RosettaNet consortium becomes marketing vehicle Intel leads RosettaNet B2Bi $5B in txn Job ’96 kicks off One first major BPR projects Intel sets ERP strategy That ties BPR To IS roadmap First Big part of ERP and BRP installed Intel e-Auctions Save 5% on Supply

Corporate Strategy: 100% e-Corporation Demand Creation Order to Cash Supply / Demand Finance HR (Direct) (Indirect) Supply Chain Corporate Services Req to Settle CUSTOMERS SUPPLIERS

100% e-Corp Foundation Systems Applications Architecture Infrastructure Data Data Quality Decision Support Business Process Business Process Design Transition Change Management Business Strategy

Extend: Supply Chain Integration with Customers & Suppliers OEM/Disti Customers Place orders Change orders Request additional product Look up availability, pricing, product info Analyze forecast, backlog, inventory data Intel Inside – submit ads, review funds, make claims Retrieve public, conf, & secret mktg & tech info Reseller Customers Reserve product through disti of choice Register for and attend training & events Retrieve sales, mktg & product information Suppliers View or search for POs Send invoices Communicate shipment status Check on payment status Retrieve piece part data & BOMs Engineering collaboration & issue resolution Over 25% of orders taken outside normal business hours >80% of revenues generated electronically From 2-3 weeks to 30 minutes to receive confidential information 75% fewer errors on orders 5,000 docs available 74% Customer issues resolved online 117,000+ Resellers Supported Worldwide >$9B/year in electronic Procurement >80% PO/Invoice transactions electronic 5200 collaboration users

R2SSDO2C Demand R2SSDO2C Demand R2SSDO2C Demand Complex network of non-connected applications & databases Application Integration (EAI) Database ERP Apps Content & Support Content & SupportApps Legacy Mainframe IntegrateConnect B2B / RosettaNet Customers OutsourceMfgrs Suppliers Connect B2B / RosettaNet RosettaNet is B2Bi enabled by e-Business standards & web services Business to Business Integration (B2Bi) at Intel *Other brands and names are the property of their respective owners.

Portfolio Management What it is: What it is: –Financial management methodology for BPR and IS programs Benefits: Benefits: –Focus on delivering value –Tighter linkage to LOB –Captures cross functional and inter company value –Better ROA, prioritization direction Competitive Advantage Value (MSS/ASP) Greenspan Value (discounts, inventory,productivity) 15% 85% O2C 20% 80% Sup/Dmd 33% 67% Cust 100% 0% R2S Corp Svcs 30% 70% Total

eBusiness Leadership Summary Greatest Value is in Customer Supply Chain Greatest Value is in Customer Supply Chain Successful efforts see value after 2 years and step function value in the 3 rd and 4 th years Successful efforts see value after 2 years and step function value in the 3 rd and 4 th years Successful efforts are based on clear business mandates Successful efforts are based on clear business mandates Continuous Innovation in building new capabilities is best approach to delivering value (vs. Big Bang) Continuous Innovation in building new capabilities is best approach to delivering value (vs. Big Bang) You are never ‘done’ You are never ‘done’

® For more information on Intel’s e-Business implementation, Go to