IEEE BMS BES Status Update IEEE IT

IEEE BMS / BES Status Update IEEE IT Department 20 -Sep-2004 ITSC meeting

Business Management System Project • Intent of the project is to “leverage the infrastructure” per the recommendation from the BDO Seidman report. • Final recommendation will be based on the trade offs between efficiencies using an integrated solution vs. the unique requirements of each business supported. • A key implementation issue will be how transaction processing is distributed (decentralized processing on centralized platform). • Will have both cost and service implications. • The BMS solution will help define some key components of EA and ensure that is a step in that direction

Business Entity System Status & Phase 3 • Phase 1 implementation – On schedule - Oct 2004 – included purchase of Oracle modules (Customer On-line, Contracts & Data Librarian) and necessary system hardware & support software. – Subset of IEL customers (275) will be processed using new software beginning in September. – Full back end integration with Oracle Financial Modules and limited front end integration with Maximizer CRM software. • Phase 2 - 1 st quarter 2005. – Add Non US IEL customers – Expand the functionality to include additional electronic only package - ASPP & POP customers

BES Project investment Phase 1 and 2 • 2003 / 2004 – Invested app. 350 K on capital for Oracle modules and 165 K on consulting cost – On target for cost and on schedule for project delivery dates!

Business Entity System Status & Phase 3 • Phase 3 continues software integration with purchase of additional Oracle modules (Advance Pricing, Bill of Materials & Sales Reporting). – 3 rd Quarter 2005 – Functional integration to be expanded to include new electronic offerings (eg. Enterprise) and print subscription ordering & fulfillment. – Will provide enhanced service integration, sales reporting, service and operational efficiencies. • Possible Phase 4 to include customer facing self-service applications and integration into content delivery platform (Xplore). – Capture requirements – 3 rd Quarter 2005

Business Management System Project • Driving force is the need to replace the current Oracle ICSS system that supports membership processing (1995). • The desire is to implement a fully integrated business system that supports all customer facing business applications – membership, nonmember subscription, conferences, etc. • Methodology being used to develop business requirements is “use cases” – provides a base to evaluate purchased applications or develop in house.

Business need for the BMS system • The current system is obsolete and antiquated • The business needs have outpaced the system changes to a point it needs a fresh start • It may cost more to maintain and enhance the old system than implementing a new system • Not doing anything is no longer an option • Inability to support new business drivers and technology drivers may hurt us grow revenue and stay competitive

Status Update Since ITSC 11 -Aug 2004 meeting • • • FINCOM, at their August meeting, set-up a placeholder of 1 MM in the 2005 budget towards IT initiatives (BES/BMS and Security) in anticipation that the ITSC would make the recommendation to support these projects at the November Board Series Ben Johnson to present updated financials to Fincom – Sept 25 th Distributed RFPs to 10 Vendors – Aptify, Avectra, Accenture, TMA, ACGI, Oracle, JL Systems, Systems Evolution, Global Turnkey, Data Systems Solution – Anticipate ~6 vendors will respond • Distributed IEEE BMS Business Requirements to Mary Ward-Callan and Cecelia Jankowski for further distribution to volunteers – – • Art Winston ITSC Committee TAB – Gene Hoffnagle, John Vig (TAB alias – awaiting responses) RAB – Marc Apter, Maurice Papo, Regional Directors Standards – Jim Carlo, Don Heirman, Paul Nikolich BMS requirements being reviewed with ITSC members and soliciting feedback

Vendor Status update • Held initial phone discussions with several vendors • Received preliminary software licenses and integration costs from vendors (see attached) – Varying costs received from vendors based on preliminary responses received • Through our RFP evaluation process, we will continue to refine the costs since we will be: – Confirming software solutions (buy vs. build) – Confirming interface impacts driven by software solutions – The above variables/unknowns could potentially impact the project costs we review/recommend in November by 50 – 100%

BMS Preliminary Capital estimates (000 Thousands) Vendor 2005 2006 2007 2008 Total Aug ITSC Model 2, 930 1, 120 4, 620 Vendor 1 1, 290 395 295 1, 980 Vendor 2 3, 680 640 590 4, 910 Vendor 3 3, 240 580 460 4, 280

BMS Preliminary Expense estimated (000 Thousands) Vendor 2005 2006 2007 2008 Total Aug ITSC Model 443 863 1, 074 3, 454 Vendor 1 214 392 985 1, 071 2, 662 Vendor 2 543 985 1, 585 1, 430 4, 543 Vendor 3 684 1, 071 1, 430 1, 216 4, 401

Highlights of our Vendor Selection Process • • • Establish Vendor Selection criteria Evaluate Initial Vendor Responses, First Cut Complete Initial Vendor Presentations Second Cut Review Vendors Prelim. Proofs of Concept Conduct detailed POC with Selected vendor finalists. Refine costs and incremental staff requirements Align scope based on features and capabilities supported by vendor solutions Define integration points between BMS and applications outside BMS Scope Define phased deliverables 16 -Sep-2004 23 -Sep-2004 8 -Nov-2004 Jan-2004 Feb-2004 Continuous Jan-2004 Jan/Feb-2004

BES Financials (000 Thousands) 2005 Capital 557 Expense 161 2006 2007 2008 Includes Phase III implementation and Phase IV requirements gathering for 2005 161 Revised upward from $135 K to $161 as a result of Oracle software maintenance cost estimates Total 557 161 644

BES Sales/Customer/Other Service Efficiency and Avoidance Savings ($ Thousands) Year CS/MS Committed CS/MS Cumulative Other Dept TB Verfied Other Dept Cumm All Depts Cumm 2004 0 2005 175 85 85 260 2006 525 700 85 170 870 2007 700 1400 229 399 1799 2008 700 2100 229 628 2728 Committed in 2005 budget cycle Total Savings over 4 years is 2. 7 MM

Next Steps • Receive Vendor response to RFP • Update to Fincom – Ben Johnson • Receive Volunteer feedback on requirements • Finalize requirements and Define Scope for BMS Phase I • Complete Preliminary Vendor Presentations • Confirm Preliminary Vendor Cost projections • Obtain Preliminary Board Approval on Budget • Confirm Scope and budget information based on POC 13 -Sep-04 25 -Sep-04 16 -Oct-04 Oct 2004 Nov-2004 Feb-2004