Business Management System BMS Project Status 02 -Dec-2005

Business Management System (BMS) Project Status 02 -Dec-2005 ITSC Meeting Sally Waselik 1

Objective l l Project Status/Timeline Next Steps IT Vision - “We Deliver Quality Solutions For Our Customers” 2

Project Status l Initiated Implementation Phase - 06 -Sep-2005 l 39 week project – Target Completion - July 2006 l Design Phase – Completed on schedule - 04 Nov 2005 l l Confirmed scope/requirements Outlined/Selected design options Construction Phase – Underway - Target 10 Feb 2006 Project remains on schedule for July 2006 IT Vision - “We Deliver Quality Solutions For Our Customers” 3

Project Status • Design Phase Calibration Point Findings • Design improvements/requirements • Can handle within 2005/2006 BMS/IT budgets • Systems Infrastructure performance requirements • Continue to conduct sizing due diligence evaluations • We are currently at a 90% confidence factor • Proof of concept to be completed March 2006 • Can handle within 2005/2006 BMS/IT Capital Budget • Will incur additional $. 200 m maintenance expense in 2006 IT Vision - “We Deliver Quality Solutions For Our Customers” 4

Project Status • Design Phase Calibration Point Findings • 2006 Training • Using the “Train the Trainer” approach for users • Identify Key Users – Power/Super Users (~20) who attend Siebel training courses who then structure the training to align systems with the operational processes from the IEEE user perspective (versus sending all ~120 users to training courses) • Estimated costs about $. 200 m expense in 2006 IT Vision - “We Deliver Quality Solutions For Our Customers” 5

Project Timeline: BMS Design Phase concluded on 04 -Nov-2005 Overall project is on track for on-time completion within the planned 39 weeks schedule Project Management AUG-2005 Wk 1 Wk 2 ……. . Wk 8 Wk 9 Wk 10 ……. ……Wk 21 Wk 22 Wk 23 ……………. …… Wk 31 Wk 32 Wk 33 … Wk 37 Wk 38 Wk 39 ………… Set Up Design Phase concluded on 04 -Nov Start Date 06 -Sep DESIGN Phase – 8 Weeks Complete) Soln. Definition Report/Analytics – 4 Weeks: (Complete) Design Report/Analytics – 7 Weeks (In Progress) 14 Week Construction phase began on 07 -Nov Total Project Duration is 39 Weeks – Target July 2006 CONSTRUCTION: Build and Unit Test – 14 Weeks Integration and System Test – 10 Weeks Critical Milestone: Code Freeze 10 -Feb 2006 ACCOMPLISHMENTS • Completed BMS Design with successful cross team reviews on 11/4 • Completed Reporting Solution Definition • Completed overall Project Plan Definition – continuing plan elaboration • Began Construction Phase on schedule Our Customers” IT Vision - “We Deliver Quality Solutions For 6 Knowledge Transfer – 2 Weeks UAT – 3 Weeks Deployme nt - 2 Weeks

Guiding Design Principles % Configured Lightly Customized Components Customer 85% l Product 75% l Orders 65% l Technical Interest Profiles (TIPs), Designations, Membership require new Workflows l Dynamic Region / Section Assignment at Enrollment and COA l Siteminder integration to Siebel Self-Registration (Single Sign On) GL Distributions, Pricing Rules, Eligibility Rules, Product Conversions require new Workflows, Scripting Fulfillment, Accounts Receivables, Renewal Notification and Order Validation require new workflows/scripting IT Vision - “We Deliver Quality Solutions For Our Customers” 7

Next Step – Construction Phase - Business Teams remain as an Integral Part of the Project During Construction & Testing Phases 10/24 10/31 11/7 11/14 11/21 11/28 12/5 Reporting Design 12/12 12/19 . . 1/9 1/16 Formal Design Review by Siebel Systems Siebel Design Review CONSTRUCTION Application Iteration 1 e ritiz Enhance Prio w ie ev R 1/23 … 2/10 w ie Solution Review e ritiz ev R Enhance Critical Milestone 2/10 ! Solution Review Application Iteration 3 ev w ie R itize r Prio Cross Team Reviews 8/4 Code Freeze (Build) Solution Review Application Iteration 2 …. Siebel Configuration Review Prio Application Track 12/26 Enhance Integration Other Solution Tracks Reports Data Conversion Integration Testing Phase We are taking an iterative approach to ensure users see system – early and often IT Vision - “We Deliver Quality Solutions For Our Customers” 8

Project Status New Technology Base l Siebel is new to our People. The software has a learning curve l l Sent key IEEE personnel to Siebel training Conducting ongoing on-the-job hands-on training with our Implementation partner (Capgemini) Strengthening project team with select resources when needed IEEE Infrastructure requires updates to meet requirements and user expectations l l l Aligned in-house staff to drive Infrastructure plans Conducting Proof of Concept exercises throughout project plan Closely monitoring all infrastructure/performance behaviors IT Vision - “We Deliver Quality Solutions For Our Customers” 9

Project Status Scope Control l Ensuring we focus on “External User Experience” Disciplined management of Scope Control and Change Request (CR) Process l Focus on CRs with no impact to overall schedule l Leveraging Executive Steering Committee to ensure appropriate priority l Organizational Change Management (OCM): End User Training and Management of change on our organization l The BMS Solution involves a broad change with both a new application and new processes l l Closely working with business team on OCM stream (Training, Communication, Deployment Approach) Evaluating alternative training options for maximum impact IT Vision - “We Deliver Quality Solutions For Our Customers” 10

Next Steps Key Upcoming Milestones § Calibration point on scope for Deployment § Confirm Scope/Implementation Hours/Timeline § Update ITSC § § Project Plan Highlights - Build Phase IT Vision - “We Deliver Quality Solutions For Our Customers” 11 Completed November 2005 Fin. Com/Board Meetings Completed December 2005 January 2006 10 -Feb-2006

Thank You! IT Vision - “We Deliver Quality Solutions For Our Customers” 12