it steering committee

The information contained in this presentation is considered proprietary

IT Steering Committee

Consolidate

IT Budget Proposal


IT Steering CommitteeBudget Proposal

Agenda

•IT Initiatives

•UVW Initiatives

•XYZ Initiatives

•RST Initiatives

•Corporate Initiatives

•Consolidated Project List


Budget Proposal

•How can we get more value from our IT?

•What is the return on investment?

•Is outsourcing the right answer?

Information Systems and Technology

•Infrastructure Lifecycle Management

•Datacenter Virtualization

•Workstation Virtualization

•Capacity Planning

•Hosting

•Outsourcing

•Proposal


Budget ProposalIT Initiatives

The information contained in this presentation is considered proprietary.

Budget Proposal

•8 out of 19 (42%) Switches are Currently EOL

•13 Single Points of Failure within Core Network

•11 Secondary Single Points of Failure

•Organic Infrastructure Growth (Unplanned)

•No Network Load Balancing

•Aging Servers and Workstations

•Capacity Planning to Accommodate Growth

Infrastructure Lifecycle Management


Budget ProposalInfrastructure Lifecycle Management

Our infrastructure is suffering from coronary disease…

The red circles show single points of failure within our Core Network.

The switches with the pink background are EOL.

Doing nothing puts all the companies at risk of losing business, including branch locations.


Budget Proposal

•Option 1 Do Nothing

•Option 2 Plan for Failure

•Option 3 Rebuild our House



Budget Proposal

•Option 1 Do Nothing

•Upside•Potentially Saves Money in 2009

•Down Side•No Support from Cisco•Replacement with 2 - 4 days (Used Market)•Net Sales Losses of ~ $357,296 to

$714,592 ...for Each Occurrence•No Load Balancing•Problem Doesn’t go Away



Budget Proposal

•Option 2 Plan for Failure

•Upside•Pre-purchase used equipment as backup•Cost Deferred Over Time•Downtime Reduced to 4 hours

•Downside•Network Performance Doesn’t Improve•Net Sales Losses of ~ $89,324 for

Each ...Occurrence•No Load Balancing•Problem Doesn’t go Away



Budget Proposal

•Option 3 Rebuild Our House

•Upside•Lease Option for 3 years•Fully Support Infrastructure by Cisco•Load Balancing and Redundant Failover•Improved Network Performance•Problem Goes Away•Increased Network and Application

Availability•Buyback Credit for Obsolete Equipment

•Down Side•Monthly Payment of ~ $1,800



Budget ProposalInfrastructure Lifecycle Management


Budget Proposal

•Option 3 Rebuild Our House

Additional Equipment Needed•Cisco 2851 Router 1 = 9,395•Cisco ASA5510 Firewall 1 = 2,100•Catalyst 3560/48 PoE Switch 5 = 24,130•Catalyst 3750/24 2 = 11,025•Sales Tax .= 3,850•Installation & Configuration .= 6,500•Less buyback of existing equipment ~ (3,000)

_______•Total Construction Cost to Rebuild .= 54,000



Budget Proposal

•Rebuild Infrastructure Next Year

ROI•Total Cost to Rebuild .= <54,000>


•Four Hour Lost Sales 89,243•Increase Performance 12,566(116 network users)

•First Year 47,809Savings•Second Year (Increased Performance Only) 60,375Savings•Third Year 72,941Savings

• 6 Month ROI


Budget ProposalDatacenter Virtualization

•What is Virtualization

Virtualization is the ability to utilize one physical server as several different servers.

The users, the network, and even the hardware sees the virtual server as if it were a different physical server.

Why would we want virtualization



•Why would we want virtualization

We took the concept of a single mainframe computer and broke it into multiple servers to add redundancy.

Different servers took on specific roles like email, file, print, or accounting to provide greater availability.

But servers are inherently under utilized. They sit and wait for something to do and then do it very fast, then sit and wait again.



•Why would we want virtualization

By virtualizing several servers on a single physical computer we’re able to get more bang for the buck because the server waits less.

If the physical server is capable of doing more and waiting less then we should stack as much work on a single server as possible.

Through virtualization we need fewer physical servers and that saves money.



“Do more with less”We Can

O.S.O.S.O.S.



APPLICATIONPROGRAMS

ApplicationPrograms

ApplicationPrograms

ApplicationPrograms

One ServerTwo ServersOne ServerThree Servers

SERVER HARDWARE

Server virtualization on a single platform presents risks…

If the server hardware fails then three servers are taken down.

As a result only non-critical applications are currently virtualized

The solution is to virtualize the entire datacenter…

OPERATING SYSTEM

O.S.O.S.O.S.



ApplicationPrograms

ApplicationPrograms

ApplicationPrograms

Three Servers

SERVER HARDWARE

ApplicationPrograms

ApplicationPrograms

ApplicationPrograms

Three Servers

SERVER HARDWARE

O.S.O.S.O.S.

O.S. O.S. O.S. O.S.O.S.O.S.O.S.

Three Servers

O.S.O.S.

Three Servers



ApplicationPrograms

ApplicationPrograms

ApplicationPrograms

Four Servers Two Servers

ApplicationPrograms

ApplicationPrograms

ApplicationPrograms

SERVER HARDWARE SERVER HARDWARE

O.S.O.S.O.S.



Domain Controller

Print Server Backup

Antivirus Server

Web Sense Server

Solar Winds Server

FTP & Web Orders Server

Citrix Server Backup Exchange Server (Cleveland)

Backup SQL Server (Cleveland)

Current Server Pool

Backup Exec Server

SharePoint Intranet Server

Argus Server

ADP Server

Print Server

Domain ControllerDHCP / DNS

Email Server

User Profiles Server

Great Plains

SQL Server

File Server



Domain Controller

Print Server Backup

Antivirus Server

Web Sense Server

Solar Winds Server


Citrix Server Backup Exchange Server (Cleveland)


Server Consolidation Through Virtualization

SERVER HARDWARE

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SharePoint Intranet Server

Argus Server

ADP Server

Print Server

SERVER HARDWARE

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Email Server

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SERVER HARDWARE

SERVER HARDWARE




Backup Exchange Server (Cleveland)


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Citrix Server

35 35 35

Server Consolidation Through Virtualization


Budget Proposal

•Virtualized Datacenter

Additional Equipment Needed•Dell PowerEdge R900 3 = 71,925•VMware License 7 = 28,990•Sales Tax .= 8,325•Installation & Configuration .= 5,500•Less buyback of existing equipment ~ (8,000)

_______•Total Cost to Virtualize .= 106,740

Datacenter Virtualization


Budget Proposal

•Virtualized Datacenter

ROI•Total Cost to Virtualize .= <106,740>

Datacenter Virtualization

•Replace Servers Out of Warranty 113,2612009

Most warranties expired 2007 6,521 Additional•Replace Servers Out of Warranty 13,000201019,521 Additional•Replace Servers Out of Warranty 26,0002011

45,521 Additional• The cost to delay virtualization continues to escalate every year the decision is postponed

• The benefits of virtualization, high availability, automatic load balancing, redundancy, and recovery remain unavailable.

• The risk of system failure increases by 20% every year

11 Month ROI

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OPERATING SYSTEM


Budget ProposalWorkstation Virtualization

65 – 100 Workstations

SERVER HARDWARE

OPERATING SYSTEM

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SERVER HARDWARE

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Budget Proposal

•Virtualization

•Workstation Virtualization

•Thin Client Architecture

•Reduced Cost and Footprint (7w-vs-150w)

•Greater Security / Faster Startup

•Virtualization of Hard Disk and RAM

•Complete System Backups

•Unified Patch Management

Workstation Virtualization


Budget ProposalWorkstation Virtualization

•Wyse

The Wyse V10-L will provide desktop

connectivity at a fraction of

the cost of a normal PC and

operates at 4% of the power,

providing more control and

less administration while at

the same time giving the

user more power and speed.


Budget Proposal

•Virtualized Workstation

Cost Analysis


•Wyse V10-L 89 = 28,480•Dell PowerEdge R900 2 = 47,950•Sales Tax 6,305•Less buyback of existing equipment ~ (8,900)

_______•Total Cost to Virtualize = 73,835

•Dell Desktop Computer (average) 1,200•Dell Laptop Computer (average) 1,800•Wyse Thin Client V10-L 320•89 Desktops, 27 Laptops


Budget Proposal

•Virtualized Workstation

ROI•Total Cost to Virtualize = < 73,835 >•PC Lifecycle (89@ 1200) / 4 Years 26,700

per year• Power Consumption Savings 2,800

per year (PC =116,946Kw, Servers =25,404Kw)

• Lost Worker Productivity 12,566•First Year = <31,769>


• 21 Month ROI• Savings offset virtual server replacement cost over 3.5 years

•Second Year = 10,297Savings

•Fourth Year = 94,429Savings

•Third Year = 52,363Savings

•Fifth Year = 136,495Savings


Budget Proposal

•Current SAN

•Current Capacity 2 Terabytes

•Currently Used 1.33 Terabytes (67%)

•Divided in to Five Drives (Not Sharable)•Drive 1 15% Available (Ghost Images)

•Drive 2 9% Available (User Data)

•Drive 3 96% Available (SQL Databases)

•Drive 4 56% Available (SQL Logs)

•Drive 5 85% Available (Virtual Servers)

•Needs Additional Capacity and Reallocation

Capacity Planning


Budget Proposal

•Proposed SAN

•Increase Capacity to 3.5 Terabytes

•Reconfigure Drive Allocation•Drive 1 1.2 TB 67% Available (Ghost Images) Raid 5

•Drive 2 1.2 TB 38% Available (User Files) Raid 10

•Drive 3 600 MB 80% Available (SQL Databases) Raid 2

•Drive 4 146 MB 59% Available (SQL Logs) Raid 1

•Drive 5 300 MB 73% Available (Virtual Servers) Raid 1

•Drive 6 146 MB 40% Available (Exchange Datastore) Raid 1

•Drive 7 146 MB 40% Available (Exchange Backup) Raid 1

•Requires a Complete Wipe and Restore

Capacity Planning


Budget Proposal

•Proposed SAN

Additional Equipment Needed•300GB 15K RPM SAS Drive 5 = 6,000•Sales Tax .= 495•Installation & Configuration .= 0

Included_______

•Total Cost to Upgrade .= 6,495

Capacity Planning

• This solution positions the company for 5 years of growth.• Data growth of 18% common• Current data (1.33TB) will grow to 3.04TB in 5 years• This solution adds 2 additional drives for Exchange (increasing performance)


Budget ProposalHosted Service

•Upside•No Need to Replace Aging Equipment•Consistent Monthly Cost (Never Ending)•Zero Capital Expense•Server Virtualization Increases Availability•24x7 Professional Monitoring of Systems•Load Balanced Architecture•Server Recovery SLA



•Downside•Very Expensive•Contract Renewable Without Escalation Limits•Costly to Resume Premise Based Operation•ISP Becomes Single Point of Failure•T1 Lines Critical for Data Access•Need to Increase Internet Bandwidth•Still Need IT Support Personnel



Hardware Solution:

Description Unit Price QtyM o n t h l y

R e c u r r i n g SetupExtended

SetupCisco ASA 5510 Firewall Sec Plus $550.00 1 $ 550 $ 375 $ 375HP VMWare ESX Server Solution $4,095.00 4 * $17,480 $2,500 $ 10,000

Software and Services Solution:



SetupOS & Hardware Management Included 16 Included Included Included

Advanced Monitoring Included 16 Included Included Included

32 IP addresses - 27 usable Included 1 Included Included Included

Virtualization Architecting / Migration Assistance $125.00 4 Waived N/A N/A

Connectivity Solution:


R e c u r r i n g SetupExtendedSetup

3Mbps Data Connectivity (1TB transfer) Included 1 Included Included Included

Total Monthly Fee - $18,030

Total Setup Fee $10,375

Total 5 Year Commitment $1,159,060

Compared to a hosted solution we could replace every server in our data-center 2 times a year.

To implement the additional servers and virtualization in our own datacenter would cost $100,740

Still need to supply our own support personnel

• Quantity adjusted for comparison purposes only.

11.50 Times More

Over 5 years

3% Inflation Cost Year 1 226,735 Year 2 222,851 Year 3 229,536 Year 4 236,422 Year 5 243,515 Total 1,159,060



Hardware Solution:



SetupCisco ASA 5510 Firewall Sec Plus $550.00 1 $ 550 $ 375 $ 375HP VMWare ESX Server Solution $4,095.00 4 * $17,480 $2,500 $ 10,000

Software and Services Solution:



SetupOS & Hardware Management Included 16 Included Included Included

Advanced Monitoring Included 16 Included Included Included

32 IP addresses - 27 usable Included 1 Included Included Included

Virtualization Architecting / Migration Assistance $125.00 4 Waived N/A N/A

Connectivity Solution:


R e c u r r i n g SetupExtendedSetup

3Mbps Data Connectivity (1TB transfer) Included 1 Included Included Included

Total Monthly Fee - $18,030

Total Setup Fee $10,375

Total 5 Year Commitment $1,159,060

Compared to a hosted solution we could replace every server in our data-center 4 times a year.

To implement the additional servers and virtualization in our own datacenter would cost $80,725

Still need to supply our own support personnel

• Quantity adjusted for comparison purposes only.


Not Recommended

11.50 Times More

Over 5 years



Dedicated Servers

Description Quantity Monthly Setup

PowerEdge R900 Quad CoreESX Server+SANVirtual Machine Hosts.

HypervisorVMware ESX Server

HardwareDell PowerEdge R900Quad Processor, Quad Core Intel Xeon E734064 GB Memory (Fully Buffered)2 x 146 GB (15k RPM) 2.5" SAS Drive(s), RAID 1

4 $8,840 $2,400

Dedicated Firewall (w/VPN and DMZ options)


FirewallCisco ASA 5510 Firewall – Active/Passive

Redundant Devices Configured for Failover 100 Mbps Connectivity

1 $985 $400

VPN Access Cisco VPN Access3DES Encryption Fully Managed, Software Updates

4 Site $200 $50

SAN


SAN Connection(s)HA Fiber Network - Redundant Fiber HBAs

4 Connection

Included $800

FC SCSI SAN StorageDrives: Fiber Channel SCSI - Configuration: RAID 5 + HS

2,000 GB $7,500 $800

As with the previous hosted solution the cost is 1389% more expensive over a five year period.

Hosting fees will never end and most like will rise more than the rate of inflation.

Total

Description Monthly Setup

Total Monthly Recurring Cost $4,450


$17,525

The information contained in this presentation is considered proprietary.


Dedicated Servers


PowerEdge R900 Quad CoreESX Server+SANVirtual Machine Hosts.

HypervisorVMware ESX Server

HardwareDell PowerEdge R900Quad Processor, Quad Core Intel Xeon E734064 GB Memory (Fully Buffered)2 x 146 GB (15k RPM) 2.5" SAS Drive(s), RAID 1

4 $8,840 $2,400

Dedicated Firewall (w/VPN and DMZ options)


FirewallCisco ASA 5510 Firewall – Active/Passive

Redundant Devices Configured for Failover 100 Mbps Connectivity

1 $985 $400

VPN Access Cisco VPN Access3DES Encryption Fully Managed, Software Updates

4 Site $200 $50

SAN


SAN Connection(s)HA Fiber Network - Redundant Fiber HBAs

4 Connection

Included $800

FC SCSI SAN StorageDrives: Fiber Channel SCSI - Configuration: RAID 5 + HS

2,000 GB $7,500 $800

As with the previous hosted solution the cost is 1389% more expensive over a five year period.

Hosting fees will never end and most like will rise more than the rate of inflation.

Total

Description Monthly Setup

Total Monthly Recurring Cost $4,450


$17,525

Not Recommended


Budget ProposalOutsourcing

•Can Outsourcing Save Money•Outsourcing Model Works For Large Companies

•Provides immediate scalability of staff resources•On site staff usually owned by outsourcing company

•Outsourcing Model Works For Small Companies•Cannot afford to hire staff full time•Disparate skill sets make support expensive

•Outsourcing Model Does Not Work For Medium Companies

•Minimum staff required full time•Reduction in staff not sufficient to warrant support cost


Budget Proposal

•Outsourcing Service

•Assumes 80% resolution

• If resolution rate increases to 90% …

• 145 x 25 = 3,625 Mo

• Increase 725/Mo or 8700/Yr

• Monthly cost could increase to $12,800

• Annual cost could increase to $153,600

• Still need IT Support on site

Outsourcing



$1,200

$500Solar Winds Network Monitoring

$141,151

$142,851

$142,851 $2,049

$2,049

$3,749

•Dropping top two service techs – still cost $2,049 to $10,749 more each year

•VPN Support Extra - $210 / Month

•Add Users, Remove Users, Tape Backups and Restore, and other service all EXTRA $



$1,200

$500Solar Winds Network Monitoring

$141,151

$142,851

$142,851 $2,049

$2,049

$3,749

•Dropping top two service techs – still cost $2,049 to $10,749 more each year

•VPN Support Extra - $210 / Month

•Add Users, Remove Users, Tape Backups and Restore, and other service all EXTRA $

Not Recommended


Budget Proposal

•IT Budget Recommendations and Proposal

Additional Equipment Needed•Infrastructure Rebuild (6 Mo.ROI) 54,000•Datacenter Virtualization (11 Mo.ROI) 106,740•Workstation Virtualization (21 Mo.ROI) 73,835•Capacity Planning 6,495•Hosted Service (Not Recommended) 0•Outsourcing (Not Recommended) 0

_______•Total IT Proposal .= $ 241,070

IT Proposal

Financing over 3 years will cost ~ $7,600 / MonthFinancing cost will be ~ $30,800

$1.00


Budget ProposalProposal

Recommended

Erwin Commercial FinanceOPTION 1 – CAPITAL LEASE

LEASED PROPERTY COST $250,000.00 PAYMENTS Monthly Rental Payments are to be received in advance. INITIAL LEASE TERM 36 Months 48 Months MONTHLY RENTAL FACTOR .02718 .02244 MONTHLY RENTAL PAYMENT $6,795 $5,610 END OF INITIAL LEASE TERM OPTIONS Purchase all of the Leased Property for its then fair market value.

OPTION 2 – CAPITAL LEASE LEASED PROPERTY COST $250,000.00 PAYMENTS Monthly Rental Payments are to be received in advance. INITIAL LEASE TERM 36 Months 48 Months MONTHLY RENTAL FACTOR .03040 .02414 MONTHLY RENTAL PAYMENT $7,600 $6,035END OF INITIAL LEASE TERM OPTIONS Lessee will have the option to purchase the Leased Property at

the end of the Initial Lease Term for $1.00.


Budget Proposal

•Increased Performance for Branch Offices

•Great Plains Upgrade

•Web Ordering

•CRM

•WMS – Warehouse Management System

•Video Conferencing

•Proposal

UVW Initiatives


Budget Proposal

Three things we can do to increase performance at the branches…

Performance issues isolated to Great Plains operating in the afternoon

•New T1 Lines

•Upgrade Citrix Server(s) for Performance

•Additional T1 Lines at the Branches

•Upgrade Infrastructure in Torrance

Increased Performance at the Branches


Budget Proposal

New T1 Lines

•Already Installed with Telekenex Phone System

•Improved Reliability

•No Measurable Difference in Performance



Budget Proposal

Upgrade Citrix Server(s) for Performance

•Branches Accessing Great Plains Through Citrix

•Distributive Processing at the Client

•Only One Citrix Server for ALL Branches

• Need Multiple Servers With Load Balancing Called a Citrix Farm

• Need Faster Servers

• PowerEdge 2950 III – Estimated $9,500



Budget Proposal

Additional T1 Lines at the Branches

•Increase Bandwidth

•Telephone

•Video Conferencing

•Data Access

•Great Plains

•Microsoft Office Applications

•Internet Access



Budget Proposal

Upgrade Infrastructure in Torrance

•Adding Router Will Not Improve Performance

•Adding Firewall Will Not Improve Performance

•Upgrading Switches WILL

•More Performance In Torrance

• Possible Increase in Performance for the Branches

• Added Reliability for Torrance and the Branches



Budget Proposal

Version 8.x Support Dies November

•Evaluate Enhancements in Version 9.0

•Evaluate Enhancements in Version 10.0

•Do We Need ALL the Current Modifications

•Collins to Provide Quote for Re-Write

•Estimate Cost to be ~ $120,000

•Which Modifications Can XYZ Use

•Determine Timeframe to Complete Re-Write

Great Plains Upgrade


Budget Proposal

• Evaluation Environment Already Set Up

• Do NOT Use TB1 for Testing

• Set Up New Server (Final Destination)

• Begin Testing Modifications to Determine Which Need to be Re-Written

• Engage Collins – Deposit Required

• Estimate 9 – 12 Months Development Cycle

Great Plains Upgrade


Budget Proposal

• Deploying Web Services In-House

• Increased Performance for Customers

• Directly Linked to Great Plains SQL Data for Real Time Inventory Availability and Accuracy

• Created a DMZ in Our Network

• Server Deployment July 3rd

• Development Cycle Completed September 1st

• Possible Application for XYZ to Use

Web Ordering


Budget Proposal

•Customer Management

•Sales Pipeline Management

•Marketing Management

Customer Relationship Management (CRM)


Budget Proposal


•Integrates with Great Plains

•Provides a Unified Messaging Platform•Provides a History of ALL Customer Conversations•Accessible to ALL Customer Care Team Members•Accessible to ALL Sales People•Accessible to Management

•Customer Feels “Taken Care Of”

•Provides Automated Follow Up



Budget Proposal

•Sales Pipeline Management (Lead Management)

•Improves Sales Team Reliability (Follow UP)

•Persistence is Key to Achieving Trust

•More Accurate Sales Forecasting

•More Aggressive Sales Efforts

•Better Sales Management of Sales Force

•Measured Results of Sales People

•Company Owns the Leads (No Little Black Books)



Budget Proposal


•Track Marketing Efforts

•Measure Marketing Results for Effectiveness

•Evaluate Marketing Dollars –vs– Sales Generated

•More Effective Use of Marketing Dollars

•Focus on What Works Best



Budget Proposal

ROI Concept –vs– Cost• Estimated Cost of Software $ 11,700

(13 Users, $900 Each)

• Services 17,550(Gartner Research Estimates Service at 1.5 Times Cost)

• Total Cost for CRM Solution $ 29,250


ROI is Measured in Soft Returns+ Customer Loyalty+ Repeat Business+ Industry Reputation ______________________________________

= Increased Sales

Estimated ROI = 12 Months


Budget Proposal

• Focus for next year is Bar Code Integration with Great Plains

• Increase Accuracy of Picking and Shipping

• Provide Customers With UPC Codes for Inventory Management and Re-Ordering

• Speed up Pick and Pack Process

Warehouse Management System (WMS)

• Email Customers with Order Status and Tracking Number


Budget Proposal

•The Current Objective is For Bar Coding (UPC)

•PanatrackerGP is a Bolt on For Great Plains

•MC 9090-G Wireless Gun

•Fully Integrated with Great Plains

•Uses Windows Mobile Media

•Electronic Pick Lists

•Email Notifications are Automated


Demo

http://www.panatrack.com/Portals/0/DemoVids/IntroVid/PanatrackerIntroVideo.html


Budget Proposal


•FasCor is Another Bolt on For Great Plains



PanatrackerGP• Cost $ 44,100

• Software• Installation & Training• Hardware


Budget Proposal

•Lifesize

•Cisco Systems - VT Advantage

Video Conferencing


Budget Proposal

•Lifesize

•Torrance, Houston, Cleveland, Portland

•Zero Operational Cost

Video Conferencing


Budget Proposal

ROI Analysis• Cost to bring people to Torrance

• Salaries (2 People, 4 Days) $ 4,780

• Round Trip Flight (Houston) 400

• Round Trip Flight (Cleveland) 450

• Hotel 3 days, 2 people, 2 rooms 1,350

• Meals ($63 / Day) x 2 People 500

• Lost Productivity (22,311 / 2 = UVW / 6 = 1 person x 2) 3,720 (Assumes 1 lost hour of sales for each person over a 4 day period)

• Cost For 4 Day Trip $ 11,200• Conference Room Video $48,920

ROI is 4.3 Trips (2 / per Year) = 26 Months

Video Conferencing

Lifesize – Conference Room Video Conferencing

Does not account for rising fuel cost that are expected to increase airfare by 40%, Hotels by 30% and food by 20% within the next 12 months…

$ 560

630

1,775

600

12,065

24 Months


Budget Proposal

Cisco Systems - VT Advantage

Video Conferencing

• Workstation Solution

• Not for Conference Rooms

• Less Expensive

• Expandable Solution

• Works with Existing Telephones

• Scaleable


Budget Proposal


• Requires Licensing

• Camera

• Software

Video Conferencing

Cisco IP Phone7960G

Cisco VT Advantage client on PC

Dialing

Answer

Association

Voice

Video


Budget Proposal


• Licensing Cost $60 / Workstation

• Camera & Software Included

• Initial Proposal for Cameras

Video Conferencing

• Mike Cloxx

• Bob Stew

• Steve Smith

• Richard Green

• Jeff Gustano

• Scott Barkley

• Todd McMann

• Rick Nieman

• Estimated Cost (7 x 60) $ 480

Pending Testing and Compatibility


Budget ProposalUVW Proposal

•UVW Budget Recommendations and Proposal

•Increased Performance for Branches$ 9,500•Great Plains Upgrade 120,000•Web Ordering 36,000•CRM for 13 People 29,250•WMS / Bar Coding 44,100•Video Conferencing 48,920•Desktop Conferencing 500

_______•Total UVW Proposal for 2009 .= $ 288,270


Budget Proposal

Operations

• ATP Customization

• QA Customization

• WMS / Bar Coding

• Additional Workstations on The Shop Floor

XYZ Initiatives

Commercial

• EDI

• eCommerce – B2B

• CRM

• Update Website


Budget Proposal

•ATP = Available To Promise

•Better Customer Service on Product Inquiries

•Greater Use of Existing Inventory

•Lower Overall Inventory

•Increased Sales

•Capture Missed Opportunities

ATP Customization


Budget Proposal

• ATP = Available To Promise

• Requires Collins to Modify for XYZ Use

• Meeting Scheduled for July 7 at 3:30pm

• Cost TBD

• Maybe Want to Modify for GP 10.0

• If We Delay GP 10.0 We May Wish to Pay For Modification of GP 8.5 ATP

• Estimate Range $10,000 to $25,000

ATP Customization


Budget Proposal

•EDI = Electronic Data Interchange

Major Supplier of EDI Service•Sterling Commerce

•eBridgeSoft

•ActData

•MaxEDI

EDI Facilitates Order Processing and Supply Chain Management for Faster, More Accurate Exchange of Information.

Major Customers Like Ewing, Toro, Granger, McMaster Carr, John Deere, Horizon, and Ferguson All Require EDI Processing

Electronic Data Interchange (EDI)


Budget ProposalElectronic Data Interchange (EDI)

• Sterling Commerce is a Leader in the EDI Industry

Cost Savings Analysis based on the Manufacturing Industry Standards

Demo

http://download.sterlingcommerce.com/sfsite/


Budget Proposal

ROI Analysis• Sterling’s EDI Solution (Estimated) $ 120,000

• Eliminate One Full Time Customer Care Person 45,000

• Increase in Sales 20,000

• First Year Cost < 55,000 >

• Second Year Savings 10,000

• ROI is 22 Months

Electronic Data Interchange (EDI)


Budget Proposal

• QA = Quality Assurance

•Controlled by Bin Location

•Greater Inventory Control

•Is Included in MRP Calculations

•Prevents Duplicate Purchase Orders

•Lower Overall Inventory

•Quantities Show in Order Entry

•Prioritizes QA Requirements

QA Customizations


Budget Proposal

• QA = Quality Assurance

• Requires Collins to Modify for XYZ Use

• Meeting Scheduled for July 7 at 3:30pm

• Cost TBD

• Maybe Want to Modify for GP 10.0

• If We Delay GP 10.0 We May Wish to Pay For Modification of GP 8.5 ATP

• Estimate Range $10,000 to $25,000

QA Customizations


Budget Proposal

• Modify UVW’s Website Ordering Program to Create an XYZ Website for Customers to Order Product

• DMZ to be Completed this Week

• UVW Web Services Being Brought In-House

• Increase Performance

• Proven Concept

• Estimate Modification to Cost $10,000 to $15,000

• Server and Software Cost ~ $15,000

E-Commerce – B2B


Budget Proposal

• Benefits of Web Presence• 24 Hour Ordering• Fewer Phone Calls to Sales People• Fewer Phone Calls to Customer Care Team• Fewer Faxes to Manually Key into System• Increased Accuracy• No Need to Hire Additional Customer Care People

• Opens Markets Not Currently Available

E-Commerce – B2B


Budget Proposal

• Benefits of Web Presence• UVW Estimates 20% to 30% of Sales to Come From the Internet

Within the Next Year• With EDI and Web Ordering 40% of All Sales Could be Automated

E-Commerce – B2B

ROI Analysis• Total Cost of Web Ordering < $ 31,833 >• Reduce Customer Care by One Person (6 Mos, 45K/Yr) 22,500• First Year Cost < 9,333 >• Second Year Savings (One Person - 45K/Yr) $35,667

Doesn’t Account for Increased Efficiencies or Customer Good Will


Budget Proposal


•PanatrackerGP is a Bolt on For Great Plains

•MC 9090-G Wireless Gun


•Uses Windows Mobile Media

•Electronic Pick Lists

•Email Notifications are Automated


Demo

http://www.panatrack.com/Portals/0/DemoVids/IntroVid/PanatrackerIntroVideo.html


Budget Proposal


•FasCor is Another Bolt on For Great Plains



PanatrackerGP• Cost $ 44,100

• Software• Installation & Training• Hardware


Budget Proposal


•Sales Pipeline Management




Budget Proposal


•Integrates with Great Plains

•Provides a Unified Messaging Platform•Provides a History of ALL Customer Conversations•Accessible to ALL Customer Care Team Members•Accessible to ALL Sales People•Accessible to Management

•Customer Feels “Taken Care Of”

•Provides Automated Follow Up



Budget Proposal

•Sales Pipeline Management (Lead Management)

•Improves Sales Team Reliability (Follow UP)

•Persistence is Key to Achieving Trust

•More Accurate Sales Forecasting

•More Aggressive Sales Efforts

•Better Sales Management of Sales Force

•Measured Results of Sales People

•Company Owns the Leads (No Little Black Books)



Budget Proposal


•Track Marketing Efforts

•Measure Marketing Results for Effectiveness

•Evaluate Marketing Dollars –vs– Sales Generated

•More Effective Use of Marketing Dollars

•Focus on What Works Best



Budget Proposal

ROI Concept –vs– Cost• Estimated Cost of Software $ 11,700

(13 Users, $900 Each)

• Services 17,550(Gartner Research Estimates Service at 1.5 Times Cost)

• Total Cost for CRM Solution $ 29,250


ROI is Measured in Soft Returns+ Customer Loyalty+ Repeat Business+ Industry Reputation ______________________________________

= Increased Sales

Estimated ROI = 18 Months(Seasonal Business)


Budget Proposal

• Mobile Station

• Stand $ 350

• Thin Client 350

• Monitor 300

• Total Cost Each $ 1,000

• Require 4 Additional $ 4,000

Additional Workstations – Shop Floor

http://www.nextag.com/ZIOTEK-Aluminum-Mobile-Computing-519600542/prices-html


Budget Proposal

•Standard Look and Feel With Corporate

•Bring ALL Product Lines Together

•Buckheim

•FC Kingspond

•Southfork

•Estimated Cost of Development $ 5,000

Update Website


Budget ProposalXYZ Proposal

•XYZ Budget Recommendations and Proposal

•ATP Customization $ 25,000•EDI 120,000•QA Customization 25,000•eCommerce – B2B 33,000•WMS / Bar Coding 41,100•CRM 29,250•Additional Workstations – Shop Floor4,000•Update Website 5,000

_______•Total XYZ Proposal for 2009 .= $ 269,350


Budget ProposalRST Initiatives

•Training for Yardi

•Upgrade Yardi Property Management to 6.08


Budget ProposalYardi Training

•Classroom Training•Voyager Commercial 885 / Student (2)

•Enterprise Property Management 850 / Student (2)

•On Line Training•Construction Operations and Reporting $ 75 / Student (1)

•Bank Reconciliation 75 / Student (1)

•Residential Month End 75 / Student (1)

•Voyager Budgeting and Forecasting 75 / Student (1)

•Voyager Work Orders 75 / Student (1)

•Correcting Tenant and Residential Ledgers 75 / Student (1)

•Argus 1,500 / Student (2)


Budget ProposalYardi Training

•Training Summary

•Yardi – Santa Barbara $ 3,470•Transportation Cost (2 Classes, 2 People, 3 Days) 680•Hotel (2 Classes, 2 People, 3 Days) 3,500

•Yardi – On Line 450•Argus – On line (2 people) 3,000

_______•Total RST Training .= $ 11,100


Budget ProposalUpdate Yardi Property Management to 6.08

•Yardi Upgrade is Included in Annual Support Plan

•Some Consulting Should be Expected

•Estimate Consulting at $ 2,000


Budget ProposalRST Proposal

•RST Budget Recommendations and Proposal

•Additional Yardi Training $ 11,100•Upgrade Yardi Construction to 6.08 2,000(Consulting Cost)

•Yardi Consulting 2,000_______

•Total RST Proposal .= $ 15,100


Budget ProposalCorporate Initiatives

•Upgrade Great Plains to Version 10.0

•Fixed Assets in Great Plains

•Automated Payroll Upload into Great Plains

•Great Plains 1099 Printing

•XL Reporter Managed Trees


Budget ProposalUpgrade Great Plains to Version 10.0

• Support for Great Plains Version 8.5 Ends 11/2009

• Skip Version 9.0

• If Version 11.0 is Available then Skip Version 10.0

• Requires Re-Write of ALL UVW Modifications and Customizations

• Corporate Has NO Customizations

• Upgrade Included in Annual Maintenance Plan

• Anticipate Some Consulting Cost ~ $ 10,000


Budget ProposalFixed Assets in Great Plains

• Fixed Asset Management Using Great Plains• Automatic Depreciation Calculations

• Automated Posting To Great Plains• Possible Allocation Entries?

• Evaluation of Fixed Asset System• Does it Provide ALL Necessary Calculation Methodologies

• Estimated Cost $5,000 Annual Licensing

• Can be Used by All Divisions


Budget Proposal

ROI Analysis• Fixed Asset System < $ 5,000 >

• Manpower Per Year 3,884

• First Year Savings < 1,116 >


• ROI is Less Than 4 Months

Fixed Assets in Great Plains

ROI is calculated for only Corporate.

Doest not account for savings from all divisions.

Actual ROI much sooner…

Avg.Salary 60,000$ Year30% 18,000 Burdon

78,000 Burdon Salary Per Year323.65 Burdon Salary Per Day

1 Hours Manpower Per Month324$ Per Month

3,884$ Per Year


Budget ProposalAutomated Payroll Upload to Great Plains

•Two Types of Payroll Integration With Great Plains

•Full Payroll Detail from ADP Uploaded to Great Plains•Requires Employee Data to be Maintained in Great Plains

•Payroll Costs Uploaded to Great Plains GL

•Preferred Way•Less Work to Maintain•No Setup in Great Plains Required•Greater Security for Employee Information

Budget Proposal

ROI Analysis• Automated Payroll Upload License < $ 5,000 >

• Manpower Per Year 15,535

• First Year Savings 10,535


• ROI is Less Than 4 Months

Automated Payroll Upload to Great Plains

Avg.Salary 60,000$ Year30% 18,000 Burdon

78,000 Burdon Salary Per Year323.65 Burdon Salary Per Day

4 Hours Manpower Per Month1,295$ Per Month

15,535$ Per Year



Budget ProposalGreat Plains 1099 Printing

•Great Plains 1099 Printing•Utilize Great Plains to Print Year End 1099 Forms

•Reduce Manpower•Increase Accuracy•Ensure Mailing Before January 30th

•Estimated Cost $ 5,000


Budget ProposalXL Reporter Managed Trees

•Purchase Upgrade to XL Reporter System•Managed Account Trees

•Faster Generation of Monthly and Yearly Reports•Greater Flexibility for Drill Down Detail

•Estimated Cost $ 3,000


Budget ProposalCorporate Proposal

•Corporate Budget Recommendations and Proposal

•Upgrade Great Plains to Version 10.0$ 10,000•Integrated Fixed Assts 5,000•Automated Payroll Upload to Great Plains 5,000•Great Plains 1099 Printing 5,000•XL Reporter Managed Trees 3,000

_______•Total Corporate Proposal for 2009 .= $ 28,000


Budget ProposalConsolidated

IT• Infrastructure Rebuild 54,000• Datacenter Virtualization 106,740• Workstation Virtualization 73,835• Capacity Planning 6,495

________• Total IT Proposal for 2009.=

$ 241,070

UVW• Increased Performance for Branches $ 9,500• Great Plains Upgrade 120,000• Web Ordering 36,000• CRM for 10 People 29,250• WMS / Bar Coding 44,100• Video Conferencing 48,920• Desktop Video Conferencing 500

________• Total UVW Proposal =

$ 288,270

XYZ• ATP Customization 25,000• EDI 120,000• QA Customization 25,000• eCommerce – B2B 17,000• WMS / Bar Coding 44,100• CRM 29,250• Additional Workstation – Shop Floor 4,000• Update Website 5,000

________• Total XYZ Proposal =

$ 269,350

RST• Training 11,100• Upgrade Yardi Construction to 6.08 2,000• Consulting 2,000

______• Total RST Proposal =

$ 15,100

Corporate• Upgrade Great Plains to Version 10.0 10,000• Fixed Asset Integration 5,000• Automated Payroll Upload to GP 5,000• Great Plains 1099 Printing 5,000• XL Reporter Advanced Account Trees 3,000

________• Total Corporate Proposal =

$ 28,000Total Budget Proposal• IT 241,070• UVW 288,270• XYZ 269,350• RST 15,100• Corporate 28,000 ________• Total Proposal = $ 854,790

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