Contract Termination/ Save the Customer Accountability Black Belt-G.K. McCown Service Division BU – Dallas, TX.

2 Project Overview n IKON is not successfully "saving", or proactively attempting to save, leasing customer relationships at n 1) the time of an early termination request from a customer, n 2) lease expiration. n This project is currently focused on improving/establishing standard lease customer retention reporting processes in an effort to improve the expiration report accuracy. n Goal: To improve Retention Rate 5% or $736,000

3 Current Process Capability The overall IKON target is the LSL- 75% and the minimum target is 70%. We are currently performing at 62.9% overall (south Region) and have a goal to improve by 5%.

4 Project Strategy n 18 Month Lease expiration report accuracy n Move to 67% from current 62.9% lease retention Focus on Oracle Data Base Validation

5 DISCOVERIES in Sales n The OSO Lease expiration report: n Meeting with several Sales Managers and Sales Reps we learned that they do not use the expiration report consistently. 1. Cannot reliably retrieve report 2. Does not show all of the opportunities in their territory 3. Redundant equipment shown for upgrades 4. Lacking additional information n Sales cannot consistently utilize the report for their forecasting practices and upgrade potential. WHY?

6 Additional Report Requirements n Third Party Lease expirations not available n Monthly equipment (Only) payment n Upgrade Quote (At time report is generated) n Buyout to return quote (At time report is generated) n Buy out to own quote (At time report is generated) n Service information populated n When service is built into lease i.e.…Image Management n Monthly equipment payment = X n Monthly Service Payment = Y n Copy Allowance n Actual volume being ran n Overage Rate The current expiration report does not provide the above requirements easily, if at all.

7 The DATA between IKONICS and Oracle!!! n MATCHED data? NO! n Originally we learned that we were not running an unmatched report similar to the unmatched report between IKONICS and On-Target. This report tells us what asset records are not matching between the two DATA bases. n OBTAINED new data! YES! n After working with the Oracle team we were able to create this unmatched report. n The results were ALARMING! We started with over 12 thousand records which was too large to manage and analyze. n CHANGED our data focus? YES! n Investigate why we have so many records unmatched.

8 Data Errors: Unmatched Records

9 Additional Discoveries n Some equipment on the unmatched report did not convert over from OMD to the install base which still have current existing leases. 1. Some equipment shows that it went to whole sale but was still in the field. 2. Some equipment showed to be picked up but IOSC still has active leases on them. n Manual processes need validation

10 Detailed Process Map Manual Processing Steps for retrieving final pickup tickets

11 Order Management and Supply Chain Once an order is complete and sent to Houston they depend on the warehouse to scan the pickup ticket into PDF format and upload to an “N” drive that is located on the Sanarray Server.

12 Next Steps… n Scaled down with new amendment: n Scale the focus down to the actual DATA and Lease Expiration report accuracy between IKONICS, Oracle and OSO (Oracle Sales Online) n Develop Team of FSS’s and Oracle/OMD experts to: n Analyze filtered data n Explore solutions n Build recommended action list. n Focus on manual steps in supply chain and Order management process.