QAD CSS Web Implementation MWUG September 2010 Presenters

QAD CSS Web Implementation MWUG September 2010 Presenters: Heather Scaggs & Rob Rush

Agenda – Part 1 A. O. Smith – Company Overview The Web Initiative – 2009: Strategy, Scoping & Design – 2010: Development & Implementation – Where We are Today Demonstration

Agenda – Part 2 Methodology – AOS Passport Process Project Management – Project phases, project stages, waves – Rigorous project management Multi-Vendor Reasoning and Approach – CSS versus customized ecommerce solution – Feature-rich product catalog – Hybrid approach playing on the strengths of multiple vendors

Who is A. O. Smith? A look at: – A. O. Smith Corporation – A. O. Smith Electrical Products Company

A. O. Smith Corporate Founded 1874 Corporate Headquarters – Milwaukee Began a refocus effort in 1996 Concentrated corporate portfolio on two business: – Electrical Products Company (Motors) – Water Products Company (Water Heaters) 16, 000 employees worldwide Financially sound corporation

Electrical Products - Overview Started as Whirl-A-Way Motors – 1946 – Purchased by A. O. Smith – 1950 Enjoyed rapid growth 1960 -80 with air-conditioning boom Began industry consolidation - 1997

Electrical Products - Today Divisional sales in 2009 $620 million Leading global supplier - among the top four Facilities (23), employees (8, 500) Full line of electric motors 1/800 to 400 HP Over 78, 650 motors built per day

Electrical Products – Global Locations Tipp City, OH Divisional Headquarters Gainsborough, UK Mt. Sterling, KY Winchester, KY La. Vergne, TN El Paso, TX Juarez, Mexico Monterrey, Mexico Acuna, Mexico Changzhou, China Suzhou, China Yueyang, China Dubai Singapore

Residential Applications

Customers

Electrical Products - Web Initiative A look at: – Strategy, scoping, objectives & benefits – Requirements & deliverables – Technical platforms & systems integration

Strategy: Development Model AOS EPC Values & Strategies Best Practices Validation Leadership Inputs AOS EPC Web Strategy Competitor Research & Analysis Web Team & IT Supplier Input Customer Research & Analysis

Strategy: Leadership Inputs Interactive Visit repeatedly Easy to do business with AOS Brings added value Easy to navigate

Strategy: Research & Analysis Competitor Analysis Customer Analysis A. O. Smith Analysis

Highest Priority Deliverables Visibility Features – – – Inventory Availability Pricing Order Status Including Shipment Information Order Entry Product Cross Reference Technical Information – – Drawings, Diagrams and Photos Nameplate and Rating Data Performance Data Features

Benefits - Immediate Strategy - Recognized as high value, first choice by providing: – 7 x 24 x 365 availability of information and ordering – Innovative – Enhanced brand perception Drive efficiencies by providing: – Product repository – Streamlined publication of product catalog – Speed of information to the customer Establish baseline for further development

Initiative Objectives Brand image Easy to navigate Manage content quickly Easy access to data Ecommerce Promote an atmosphere for revenue growth

Phased Approach Phase 1 - Implemented Sept 2009 – Static Content Phase 2 - Launch Q 2 2010 – Ecommerce Phase 3 - 2011 – Additional customer-centric features – Global web presence Phase 4 & Beyond – Differentiators

Web Initiative – Delivery Roadmap Phase 1 Phase 2 Phase 3 Public Portal Deliverables – • Static mrktg data • Enhanced graphical imagery consistent with corporate brand • Transfer of content management from IT to Sales & Marketing Deliverables – Technical Info • Dwgs, Adv Tech Specs • Marketing Specs Visibility Features • Adv Cat Search/List Price • Adv Dist/Svc Shop Locator • Prod X-Ref Phase 4 Phase 5 Deliverables – In Scoping Deliverables – To be Scoped Semi-Dynamic Data (E-business) Newest Generation Web Services Customer Portal Deliverables – • Inventory-location • Customer Pricing • Order Status • Order Entry • Acct Status Global Web Presence Real-time Data Integration with Back-End Systems (Ecommerce) Static Data – Content Management Software Technical Foundation 2009 2010 2011 Q 04 2012 & Beyond

Phase 1 – Static Content The need for content management software – Static content was originally hard coded – Marketing dependent on IT resources to update Ektron Content Management Software (CMS) – Implemented in 2008 – Marketing independently edits and publishes content – Created foundation for future phases

www. aosmithmotors. com - Previous

New Site – Live 2008

Phase 2 - Public Portal Enhancements www. aosmithmotors. com Cross Reference Distributor Shop & Service Shop Locator Advance Catalog Search

Phase 2 - Customer Portal Customers can login to the Customer Portal to access: Pricing Check Inventory Place an Order Check Order Status Track a Shipment View Order History View Accounts Receivable Information

Advance Catalog Search – Integration Search from Public Portal or Customer Portal search includes additional customer-centric information: – Customer part number – Available inventory – Customer’s net price – Ability to add to cart Integration of: – Public Portal databases (Data Repository) – QAD CSS (Secure customer login) – Ektron (Web – User Interface)

Advance Catalog Search – The Integration

The Extract/Load Process

Critical Factors For Success PEOPLE PROCESS TECHNOLOGY DATA 24/7 constituent access requires commitment to 24/7 AOS support Must develop an automated product release process to capture all product information in a controlled data warehouse Requirement of people, process & technology to manage all product data presented to constituent Successful implementation of other systems – a dependency AOS data must be cleansed for presentation to constituents to ensure data integrity Commitment of AOS resources: marketing, engineering & IT to support development & maintenance Business requirements must be well defined, scoped and time-released in terms of sophistication Web implementation phased, gated and well managed in incremental deliverables Consideration must be given to data fields in current implemented systems in order for all data to translate to the site consistently On time, On budget, Within Scope

Phase 3, 4 & Beyond - Future Enhancements Global online presence Differentiators Use the newest generation of web technology

Analytics – Public Portal A 569% increase in hits to the Public Portal in 2010 over same period, 2009 Leadership inputs: Interactive, Visit Repeatedly Leadership inputs: Increase internal efficiencies

Analytics – Customer Portal Visits to the Customer Portal since June 21 go-live – As of September 20: 3, 373 user logins 251 orders placed online Leadership inputs: Easy to do Business with AOS, Brings Added Value

Analytics – COS Call Volume Customer feedback …when one of our customers already on-boarded to the customer portal was asked for feedback it was very positive. The portal has cut his phone calls by 50%! Favorite feature is the ability to pull technical data – especially drawings – directly off of the site. …just wanted to relay the positive feedback. Thanks for all the work on what looks to be a very positive move forward for AOS! Leadership input: Increase internal efficiencies

Point Releases Point release will allow for continuous updates to the web site between major releases Prioritized parking lot methodology Schedule is the driver SCOPE Leadership input: Visit repeatedly COST SCHEDULE

Dilbert

Agenda – Part 2 Methodology – AOS Passport Process Project Management – Project phases, project stages, waves – Rigorous project management Multi-Vendor Reasoning and Approach – CSS versus customized Ecommerce solution – Feature-rich product catalog – Hybrid approach playing on the strengths of multiple vendors

Critical Factors For Success PEOPLE PROCESS TECHNOLOGY DATA 24/7 constituent access requires commitment to 24/7 AOS support Must develop an automated product release process to capture all product information in a controlled data warehouse Requirement of people, process & technology to manage all product data presented to constituent Successful implementation of Advanced Planning & Scheduling in order to successfully allocate inventory and promise delivery date to constituent AOS data must be cleansed for presentation to constituents to ensure data integrity Commitment of AOS resources: marketing, engineering & IT to support development & maintenance Business requirements must be well defined, scoped and time-released in terms of sophistication Web implementation phased, gated and well managed in incremental deliverables Consideration must be given to data fields in current implemented systems in order for all data to translate to the site consistently

Structured System Development Methodology AOS Passport Process – Developed internally 2008 – Typical system development life cycle methodology – Defined deliverables – Management gate reviews

AOS Passport Process - Overview Stage 1: Scoping Stage 2: Design Stage 3: Development Stage 4: Certification Stage 5: Implementation Executive Sponsor • Project prioritization • Stage gate approval • Approve funding Executive Sponsor • Stage gate approval Business Customer • Develop funding package • Stage gate approval Business Customer • Perform user acceptance test • Develop funding package* • Stage gate approval Business Customer • Create work aids • Perform SME training • Develop funding package • Stage gate approval Business Customer • Train end users • Create project evaluation and ROI • Stage gate approval Business Analyst • Create Implementation G 4 stage project plan • Assess readiness Business Analyst • Perform functional evaluation Business Analyst G 0 • Create business requirements • Create functional design • Create Design stage project plan Solution Architect • Create high level design G 1 Business Analyst • Create Development stage project plan Solution Architect • Create detailed design Support • Design sustaining support model • Create OLA/SLA Business Analyst • Create Certification stage project plan Solution Architect • Build solution • Perform system acceptance test • Create production support documents G 3 Solution Architect • No activity Solution Architect • Perform technical evaluation Detailed design created and approved Support • Build solution in staging area • Build Go Live support model* • Complete OLA/SLA Support • Perform support evaluation Support • Build sustaining support model* Support • Provide input to high level design Business requirements created and approved G 2 Solution built and tested Solution verified and readiness assessed Solution deployed and evaluated G 5

AOS Passport Process - Stage 1 - Scoping

Success: High Quality - On Time - Within Budget Structured Project Management – – – – Executive Sponsor Business Champion Web Steering Committee Core Team Business Analysts Right Technical Resources Passport and Project Management Monitored by Company Governance Boards – Performance Excellence Process (PEP) – IT Steering Committee

Right Deliverables - Right Resources A. O. Smith Statement of Values – – – Profitable growth Innovation Uncompromising integrity Imagination, competence, teamwork, diversity Corporate citizenship

Right Deliverables - Right Resources Comparison Criteria Vendor A Required Functionality Flexibility & Scalability Technical Platform Market Differentiation AOS Confidence in Vendor Technical Platform Control IT Support Cost Overall Score Vendor Analysis Numeric Rating Vendor B

Right Deliverables - Right Resources Multi-Vendor Approach – – AOS Business and IT leadership of the project CSS know-how Web skills for a customized public portal AOS capability to manage content and ongoing support Supplier Selection – – QAD RCM / Roundview Thirdware Brave. Point “Supplier Partnership” was key

Demonstration Public Portal – Advanced Catalog Search Customer Portal – Ecommerce Features Customer Login Add Items to Shopping Cart Check Order Status