Presentation for the World Leasing Convention May 2001

Presentation for the World Leasing Convention May, 2001 Jointly presented by Susan Carol and Cameron Krueger

THE U. S. DIGITAL REVOLUTION TODAY ° Evolving Internet models & VC spending ° Poor communication, failure to understand leasing ° What do application service providers & B 2 Bexchanges offer? ° Does end-to-end leasing really matter? 2

INTERNET SPEED SLOWING DOWN ° Funding issues, stock market retraction ° Dot. Com challenges & failures ° Problems affecting lessors ° Internet revenue only at 10% in early 2000 § Disconnect of online, offline operations § Neglect of core capabilities § Focus on deal volume, rather than customer § Adoption rates low 3

THE “NEW”, NEW ECONOMY ° What makes a successful digital business? ° How long does it take? ° What are the characteristics of successful e-leasing ventures? ° What is the focus of the new, new economy? 4

THE INTERNET EXPERIENCE — REVEALED IN LEASING INDUSTRY-FUNDED SURVEY ° KPMG ° Inc. Magazine ° Monitor 5

SUCCESSFUL APPLICATIONS OF INTERNET TECHNOLOGY ° Case study perspective ° Case studies § Large ticket leveraged leasing corporation § Pure technology company § Small, mid-and small-ticket broker shop 6

CASE STUDY #1 LARGE TICKET LEVERAGED LEASING CORP. ° Situation § Legacy system & failure to move to “modern platforms” § Highly profitable – no urgency to improve operationally ° Problem § Management reports virtually impossible to create § Current reports costly & inaccurate § Needed marketing push into new markets ° Solution § Involved Internet & Intranet projects to improve customer relations, increase efficiency, & decrease costs 7

CASE STUDY #2 PURE TECHNOLOGY COMPANY ° Situation § Cost savings critical, but systems not up to task ° Problem § Sub-optimal management of returned equipment § Inability to generate buyout quotes in Internet time nor data-mine for sales § Could only accept applications via fax ° Solution § Custom built web/application tracking software § Integration to core lease accounting system § Online buyout quotes for some VAR’s 8

CASE STUDY #3 SMALL, MID- & SMALL-TICKET BROKER SHOP ° Situation § Human resources starved § IT resources starved ° Problem § Wasted time re-entering faxed documents § Data accuracy abominable § Only competitive advantage was rate ° Solution § Off-the-shelf Web application entry § Web application status query § Fully automated e-mail based vendor & broker communications 9

FUTURE OF E-LEASING ° Serious challenges ° How lessors will manage them ° Wireless is HOT ° E-signatures are here ° Does end-to-end leasing really matter? 10

APPLICATION TYPES THAT WILL WORK ° Intranet ° Executive Information Systems ° Data mart/report consolidation ° Focused specific needs ° ASP – They host it, you work it. ° Non-core competencies ° Customer service & asset management ° Non-proprietary technologies 11

APPLICATION TYPES THAT DO NOT WORK ° Application only – we have a lot of this today ° Web “presence” – five years out of date ° Outsourcing core business functions ° Anything technically challenging ° If-you-build-it-they-will-come applications 12

THE BOTTOM LINE ° Clear communication is critical, regardless of strategy ° Timely flow of information internally & externally is critical to survive § Efficiency, speed & convenience will drive e-commerce § Online leasing will expand because the Web offers the above § Customer service online and offline must reflect same culture 13

TOP 10 INTERNET RECOMMENDATIONS 1. Having a Web site is not enough to become a global operator 2. Choose your technology partners well 3. Determine SLA & exit strategy early 4. Balance business & technology goals 5. Get an internal champion & rally the end users 6. Budget for post implementation/go-live support 7. Fully-integrated is best, but best-of-breed is reality 8. Check customer references well 9. Insist that you own the data 10. Don’t forget security – hire a hacker 14