systemsteps esupport proposal

March 13, 2002

1

SystemSteps/Colleagues®

Table of Contents

Executive Overview...................................................... ........... 2

The Business Problem................................................... ........... 4

The Quality Approach to Performance Management... ........... 5

E-Learning.................................................................... ........... 8

Integration With Other Business Systems..................... ......... 13

The “Performance Managed” Experience..................... ......... 13

E-Performance Tools and the Learning Curve.............. ......... 21

Proposed SystemSteps Curriculum............................... ......... 26

Current State of SystemSteps........................................ ......... 32

SystemSteps Site Development Timeline..................... ......... 40

Re-allocation of Resources........................................... ......... 42

Financials...................................................................... ......... 44

M-Gate Status................................................................ ......... 45

Summary....................................................................... ......... 49

March 13, 2002

2

SystemSteps/Colleagues®

A Proposal for Improved Post-Sale Support and Cost Reduction

John Sawinski - PCS Services

Executive Overview

CLEARLY, IN OUR BUSINESS, EVERY POST-SALE PRODUCT TOUCH CAN HURT. .

SystemSteps is a plan to implement a broad, e-learning certification and post-sale prod-uct support environment that develops Customer affinities and solves two pressing problems:

• How do we prevent product with no discernible defect from being returned?

• How can we discipline every aspect of the reverse logistics process to fix handsets at the lowest possible cost?

This is an e-business that replaces existing paper and labor-intensive processes: The Motorola SystemSteps/Colleagues Preferred Service Provider plan radically changes the way we develop, deliver and verify information to call centers, points of sale, and repair operations. It compels Motorolans and non-Motorolans alike to keep good hand-sets in Customer hands and to fix them quickly and cheaply when they break. It limits Motorola’s liability and cost for work performed badly and, most of all, it does this mainly by retasking existing resources at only moderate cost.

In addition to cost reduction, SystemSteps/Colleagues is designed as a well-margined, sold service that can deliver revenue to our bottom line, or that can be exploited by the sales team as a value proposition not offered by our competitors.

Large volume, low-cost consumer electronics businesses are not tolerant of deficient post-sale support. Missteps in call center quality, reverse logistics and repair operations trigger an avalanche of returns, causing margin erosion and churn. In a commodity elec-tronics market where unit costs are stripped to the bone, the cost of a single, moderate, post-sale, consumer intervention can kill the margin from 5-10 units. The hit from a

MARGIN

SIMPLE SERVICE INCIDENT

LOSS FROM COMPLEX SERVICE INCIDENT

MARGIN

UNIT VOLUME

Executive Overview

SystemSteps/Colleagues® 3

more complicated case involving multiple phone calls and one or more return/repair cycles will nullify the business value of ten or more devices.

TARGET AUDIENCES Within the financial spaces of cost reduction and revenue, there are four corresponding, distinct audiences for SystemSteps/Colleagues participation:

Level 0.5 - Cost Reduction: The average consumer who might be capable of minor troubleshooting if better informed. While we would track SystemSteps access and col-lect user information from this audience, they would not be charged, as the cost of pro-viding access is more than offset by the reduction in returns. Development costs for the program at this level are offset because participants who pay for level II and III pro-grams are also required to complete the same level 0.5 and level 1 exercises. In addition, data gathered during interaction by consumers with the SystemSteps site has marketing value.

Level 1 - 50/50 Cost Reduction/Revenue: This group provides the most rudimentary level of service, almost exclusively at the point of sale. However, it is important to con-sider that since almost 40% of returned handsets are not usually defective, the potential of Level 1 servicers to keep handsets out of the return flow has enormous cost-saving value. At this level, handsets are not taken apart. Service intervention is limited to sys-tem problems, programming, features/options, and simple, external mechanical repairs like antennas, battery covers, chargers, etc. If a true defect is found, the phone is either sent in for repair directly or exchanged for a replacement under an Over The Counter (OTC) program, after which the original, broken handset is forwarded to a central repair depot. Level 1 SystemSteps participants will be charged a minimal subscription amount in the $250/yr range, but this charge will probably be bundled with other sales.

Level 2 - Certification Revenue: Lower-level Technicians with little or no prior cellu-lar experience fall into this category. They typically work at a larger point of sale or one of the smaller depots. Their range of activities includes all level 1 fixes plus reflashing/software maintenance and repair of mechanical breakage. Level 2 Techs can take phones apart but are not allowed to solder. This population is also quite valuable to us in that they are reimbursed less under our warranty policy and yet are capable of fixing about 70% of handsets with actual defects. An intriguing feature of the level 2 audience is that their learning and certification activities can be conducted almost exclusively online. We anticipate being able to reach and control 1600+ North American Level 2 Techs simultaneously for every new product release through the SystemSteps e-commu-nity, replacing large numbers of 2-day onsite classes conducted in previous years, which due to inadequate resources, did not reach everyone. Estimated charges for annual certi-fication of individual level 2 Techs are in the $1K/yr range.

LEVEL 0.5 = CONSUMERSLEVEL 1 = NO DISASSEMBLY REPAIRSLEVEL 2 = NO SOLDERINGLEVEL 3 = COMPONENT REPAIRS

Level 3 - Certification Revenue: Full component repair. Most Level 3 Techs exist in Customer or 3rd party repair depots. Under our new certification agreement, for a flat rate reimbursement of $27/incident, including parts, regardless of defect, Level 3 shops are expected to complete each repair they start within 48 hrs or face a $56/incident charge if Motorola takes responsibility for the case. SystemSteps certification will be a blend of online and classroom instruction. The annual certification charge of $2.2K/Tech includes one week of mandatory training and skills testing in our classrooms in Texas.

GENERAL POPULATION20M

LEVEL 1 AT POS50K TAM = $12M

LEVEL 2 TECHS2.1K TAM = $2.1M

LEVEL 3 TECHS0.9K TAM = $1.8M

The Business Problem

4 SystemSteps/Colleagues®

COMPETITIVE OFFERINGS: No vendor or third party has captured this market. To date, Nokia and Ericsson have posted limited e-support websites, but none with closed-loop, tracked interactivity and certification support like SystemSteps.

SystemSteps also plays strongly in the intangible space of building mindshare, not only in the Sales and Service communities, but potentially in the Consumer arena too. When-ever anyone, anywhere, anytime, has a question about cellular, whether or not they actu-ally own a Motorola cellular product - they will turn to Motorola for the authoritative answer.

The Business Problem

Carrier Customers have shifted supply chain risk back to manufacturers

Carriers in the U.S. have successfully leveraged their volume buying power to force handset vendors into consignment-like sales contracts that enable them to offer very lenient returns policies to end users, yet insulate themselves against supply chain risk.

Any-return-within-30-days, no-questions-asked, new Customer adopter strategies at Carriers like AT&T Wireless and Sprint allow them to compete primarily on airtime price. Motorola’s contractual obligation to take back such returned handsets to our own inventory, at full reimbursement in most cases, for up to a full year after initial sale, gives U.S. Carriers license to engage in sloppy business practices like regional over-stocking, wild volume speculation, marketing experimentation, etc. at little or no risk.

4XHVWLRQ��:KDW�LV�WKH�FRVW�RI�127�SURYLGLQJ�SHUIRUPDQFH�VXSSRUW�IRU�OHYHO��"��

- Return Rates of as high as 19% in warranty period

- U.S. Warranty Base = 15M units

- 2.9 Million Returns in 2001 (min)

- 70% of Aggregate Returns are No Trouble Found

- Average Cost/Incident = $37 (not counting lost carrier revenue)

- $6.3M/Month in Unnecessary Cost!

Answer: NTF Returns on Motorola Phones last year cost us and our Customers as much as $76M. .

The Quality Approach to Performance Management


Handset margins generally decrease every year and declining ASP curves have flat-tened. In this environment, every cost is more visible. Carriers have demonstrated some willingness recently to partner on service burden problems and are begining to under-stand that they must implement point-of-sale repair or call center service interventions to further cut costs. Our Customers are not stupid: They know these costs are being passed back to them in one way or another as a component of future sales.

It is critical to the future of our business that we teach and control the behaviors of everyone who can potentially return handsets or who is involved in fixing them.

To date, though, the cellular community has been hindered by the lack of a practical per-formance management system. SystemSteps provides that support through a 24 X 7 online interactive presence that:

• Teaches

• Measures

• Supports


Quality system principles can be applied to performance management.

UNCONTROLLED KNOWLEDGE IS NOT A QUALITY PROCESS

What we do in our technical communications business today is generally an uncon-trolled process like 1-way paging: Students come to class, we send them service bulle-tins and manuals, talk to them on the phone from time to time, and push supplementary information at them in an outbound fashion, but we don’t always know:

• Did they truly learn what they need to know?

• Can they do the job we expect them to?

• Will they remember six months from now?

• Are they satisfying Customers?

• Did we waste their time with information of no value?

• Was our information timely?

• Are they improving daily?



Applying quality system discipline to performance management closes the loop and yields the following:

GOOD PERFORMANCE MANAGEMENT IS A 2-WAY STREET

But how to close the loop? . .

This is not a new problem: As recently as ten years ago, various segments of American business, mostly automotive and aerospace, recognized this as a problem and wrestled with paper and some rudimentary computer solutions like Computer Based Training (CBT) to step up the two-way flow of information and close the quality loop. Many of these efforts were driven by safety or regulatory issues and supported by extensive investment, some of it governmental.

Early practitioners of this art learned from their experiences to pick certification battles carefully: For example, where product complexity is high, the audience restricted, the product sales volume small and life-cycle short, it doesn’t make sense to invest in the longer cycle time and expense of a knowledge control and validation program.

1 1 3+ = Training

1 1 3+ =

Metrics

Metrics

Certification

Smart, on-timeService!

WarrantyPayments

$$



A REAL PERFORMANCE MANAGEMENT SYSTEM FEATURES:

The Internet, though, changed many things as we all know, including the ability to quickly offer and update knowledge and collect performance data from users - without human intervention. Like most things technical, Internet tool sets and delivery media become cheaper and easier to use over time so what we have now is a convergence of utility and application that more easily brings practical closed loop performance sys-tems to bear.

When is the Quality Approach to Performance Management most applicable? In situa-tions where:

• Product complexity is minimal

• Sales volume is high

• The audience is geographically everywhere

• The red-ink, financial implications of not managing performance are very large

In short - our PCS business. . .

What are some of the key elements of our proposed PCS e-performance system? . . . Elements that also develop mindshare and distinguish Motorola from our competitors?:

• Rich, E-commerce Personalization and Membership Features. - The site constantly adapts to a User’s changing needs and pushes information

• E-Learning and Certification - A Learning Management System that constantly refines the Learner’s knowledge

• Product Service Support - Interactive service aids that make Technicians productive

• Test Equipment and Shop Support - We need to take the mystery out of verifying handset quality and performance

• Product Support Tool (PST) Support - Our inability to support common handset support software at the lowest levels of our Customer base is a known problem

• Communities of practice - Online places for our constituents to share valuable insights with Motorola and each other

• Instant Information - Solution builders that save time and dramatically cut call center volume

E-Learning


E-Learning

“WHEN A SERVICE GOES FROM FREE TO FEE-BASED, ONE MIGHT EXPECT RESISTANCE AND RESENTMENT. YET, CUSTOMER SATISFACTION INCREASED WHEN HONEYWELL/WSE REVERSED ITS 30-YEAR OLD PRACTICE OF OFFERING FREE TRAINING TO DEALERS’ TECHNICIANS.”

HTTP://WWW.ELEARNINGMAG.COM/ELEARNING/ARTICLE/ARTICLEDETAIL.JSP?ID=2984

Within PCS, there has traditionally been strong sentiment against learning as a sold ser-vice. Perhaps this is because the cost of training as a percentage of sales is smaller than in Motorola’s infrastructure businesses, and is, as a result, more easily absorbed in the sale. But the simple fact is that most U.S. corporations, even those that manufacture OEM product or other hard goods, are also in the business of selling their learning and support efforts.

Other than being hindered by some outdated, institutionalized beliefs, however, we also face two other nagging, value proposition hurdles:

• We’ve been giving away training and support for years

• Our competitors also give it away

“T HE AMERICAN ASSOCIATION OF COMMUNITY COLLEGES REPORTS THAT MORE THAN 10 MILLION STUDENTS ARE ENROLLED IN COMMUNITY COLLEGES, WITH 64 PERCENT OF STUDENTS TAKING CLASSES PART-TIME. THESE PART-TIME STUDENTS FIND IT CHALLENGING TO BALANCE THEIR BUSY SCHEDULES WITH OBTAINING THE TRAINING THEY NEED TO SUCCEED IN TODAY’S BUSINESS ENVIRONMENT — ESPECIALLY IF THEY HAVE TO GO TO A TRADITIONAL CLASSROOM TO RECEIVE INSTRUCTION. A MORE CONVENIENT AND MANAGEABLE WAY FOR COMMUNITY COLLEGE STUDENTS TO ACHIEVE THEIR EDUCATION AND CAREER GOALS LIES IN E-LEARNING. E-LEARNING GIVES STUDENTS THE OPPORTUNITY TO CHOOSE WHERE, WHEN AND HOW THEY WANT TO LEARN. “

HTTP://WWW.ELEARNINGMAG.COM/ELEARNING/ARTICLE/ARTICLEDETAIL.JSP?ID=4068

It’s an old adage: “Something is worth exactly what someone is willing to pay for it. . “

So how do we turn this around? By making support mechanisms radically better and more accessible than our competitors - grabbing mindshare by being the information solution of choice - so good our Customers want to buy it. People buy products they know the most about. We need to guarantee they know Motorola best.

E-Learning


E-LEARNING ENABLES A 24 X 7 KNOWLEDGE PRESENCE THAT BRIDGES GEOGRAPHIC AND TIME BOUNDARIES FOR EVERYONE.

We don’t have much E-learning today. How are we training people?

In short, we’re not. . at least not enough.

Since we don’t have 50+ Instructors, we’re obviously not doing the training we should. With E-learning though, we will. .

What is E-Learning?

Real E-Learning, like real E-Commerce, adapts to the user like a real Instructor. E-Learning is not Computer-Based-Training (CBT). CBT had some limited assessment ability through online testing, but it typically could not change its behavior in response to user interaction. CBT should be considered obsolete. E-Learning has taken it’s place.

X25

New Phonesin 2001

Level I Learners Class Time4 hrs/12 Students

X X= 1042 Wks(22 Instr/Yrs)

X5K (min)

Level II Learners

X2K

Class Time16 hrs/12 Students

X X= 1667 Wks(34 Instr/Yrs)

. . . Answer: Total = 56 Instructor/Yrs(platform instruction only)

4XHVWLRQ��:KDW�ZRXOG�LW�WDNH�IRU�XV�WR�WUDLQ�WKH�8�6��6DOHV�6HUYLFH�SRSXODWLRQ�IDFH�WR�IDFH�WR�/HYHO��RQ�\HDU��SURGXFW�UHOHDVHV"��

E-Learning


A true E-Learning system simulates real world experiences.

In the above example, a V.120 assembly test which follows a disassembly learning exer-cise, The level 2 candidate must correctly sequence, pick, and place each part in order by dragging and dropping on top of the base assembly. Each interaction is timed and correct/incorrect responses tracked.

An incorrect pick sequence causes a text message to appear,

An incorrect place sequence causes the part to revert to its original location. The learner must repick it from the first location to try again.

E-Learning


E-Learning also adapts to what the user has completed in previous sessions. For example, the learning exercise for another product, T270C, is comprised of eighteen individual interactions which must be followed in sequence the first time in order to achieve completion. Note in this screen capture that only completed interactions are in bold. Incomplete interactions are grayed out.

Once a particular interaction has been suc-cessfully completed, that specific learner can access it randomly, via this pulldown, so in effect, the learning program becomes a refer-ence resource once training is done, without compromising its initial learning integrity.

AICC IS THE STANDARD FOR STUDENT DATA TRANSFER

SystemSteps activities are database tracked for both place-keeping, relative student scoring, and future program development. That data can be passed, in industry standard AICC (Aviation Industry CBT Committee) format, to other learning management sys-tems (LMS), both Motorola and non-Motorola, to drive pay-for-performance programs.

The example below shows interaction duration and attempts/completes for student ID 253 during that student’s Level 2, T270 certification exercise. Eighteen interactions make up the certification exercise, but the program has six more used in a support capacity for a total of 24. Time is expressed in seconds.

HTTP://AICC.ORG

E-Learning


In SystemSteps final implementation, we do not intend to report numerical scores, for legal reasons, to Students or Managers, only incomplete/complete in something like the following format:

Several individual bubbles may make up a course of study in a particular area. A fully certified Technician would, of course, see a green field of bubbles.

A Manager, in the Manager’s view, will see a single vertical column of bubbles for each employee. Clicking on one particular bubble, say a yellow one in this view, will explode it into it’s multiple component bubbles, which may be red, green, or yellow too. In this way, it will be very easy for a Manager to compare certification status for all employees, enterprise-wide.

Integration With Other Business Systems


Integration With Other Business Systems

A LESSON LEARNED: UNLESS EVERY POTENTIAL SOURCE OF INFORMATION IS ENCOMPASSED IN A COMPANY’S SOLD SERVICES STRATEGY - AND CHARGED FOR - THE “FREE” SOURCE WILL GET RUSHED, CAUSING QUALITY ON BOTH THE SOLD AND FREE SIDES OF THE FENCE TO SUFFER.

Here’s a fact: When Messaging Technical Training at Motorola was a sold service, but the Tech Support line was given away at no-charge, Customers bypassed classes and got virtual training free on the Tech Support phone - sometimes for hours. However, once Tech Support moved to contracted support, the balance was restored. In the migration from free to sold services, every aspect of the way we communicate with Customers must be integrated into the total value proposition or we will fail to generate revenue.

To help us rope our support effort together, a very important feature of SystemSteps is its ability to integrate with other business elements like Call Centers, Order Entry, Financials, etc, so that the way a Customer interacts with other Motorola systems deter-mines, in part, the way we interact with them.

SystemSteps is built with common, off-the-shelf, e-commerce tools that read and write any SQL or ODBC database, so it becomes practical to integrate it with Oracle ERP, Clarify, Seibel, TCOPS, Informix, or any of the other, myriad, database-driven systems that abound in Motorola. Customer interaction with these external data sources then helps drive automatic customization of the SystemSteps learning experience.

Let’s take this database thinking to the next logical step: In its current incarnation, for example, SystemSteps uses Sequel to store e-commerce data and Oracle to store Learn-ing Management System data. Such local database robustness gives us the ability to fetch, sort, and analyze data from other systems ahead of time to help us - and this is key to the managed experience - anticipate Customer needs.

Likewise, our site can pass outbound data too. This could be as simple as SystemSteps student certification status sent on demand to call centers to help guide Customer con-versations.

The value of connecting a Learning and Solutions system to other business systems should be obvious: Now, in addition to having clear verification of a Technician’s skills and knowledge, we also gain awareness, in real time, of how that Student is using, or failing to use, that knowledge in daily activities. This is how we close the loop between knowledge and performance - in a nutshell, performance management.

The “Performance Managed” Experience

Life becomes simpler in a performance managed experience. You no longer have to guess which information is relevant because it’s handed out at exactly the right time:

• More information is pushed to you rather than having to be searched for and pulled. You don’t have to go looking for it.

• Personal aspects of other business activities like warranty claims filing, parts orders, call center calls, etc. are monitored to determine which information is most relevant to you at any given time.



• The total amount of information transferred to you actually decreases because it’s better information.

• Learning retention is less important. Answers are always available.

The line between knowledge transfer and traditional information resources blurs: You may be told how to do something at the time you’re actually doing it, rather than be bur-dened with learning it ahead of time.

The managed experience is having a friendly teacher over your shoulder. . “Show me!” is the most important part of “Teach me.”

Here’s what a day in your performance managed experience might look like:

THE EMPLOYEE SEES THE DAY’S SYSTEMSTEPS SERVICE NOTIFICATIONS WHEN FIRST ACCESSING THE SYSTEM

Notifications appear in red on each individual’s SystemSteps home page:

FOLLOW UP ON NOTIFICATIONS

Notifications are acted upon. In this case, updated software must be downloaded to make a specific handset carrier compliant.

Software Download inProgress: 65%

Version 2000.08.B9.00

Start your day here:



BEGIN WORK WITH UPDATED, CORRECT PROCESSES

While performing repairs, online claims are filled out and automatically submitted for warranty reimbursement.

WHAT YOU NEED IS PUSHED AT YOU JUST WHEN YOU NEED IT

As you begin working on specific handsets, service information you may need, but have not previously accessed, is pushed to you - in this case, a Customer Service Bulletin for the phone you’ve started fixing.

Insert claims capture



ADVANCED ELECTRONIC SERVICE AIDS ARE THERE WHEN YOU NEED THEM

Online, electronic service aids, like this 270C, interactive schematic/component locator, dramatically increase productivity, replacing conventional paper documents in ways not practical even five years ago. For example, as the cursor rolls over each part, its part number, schematic designator, and description pop near the top of the screen.

When the highlighted part is clicked, you are immediately taken to that area of the sche-matic, where the part is also highlighted. If you click on another schematic part, you’re taken back to the PC board overlay - full, round-trip navigation!



ONLINE LEARNING IS FUN AND CAN BE DONE IN SHORT INTERVALS; OVER LUNCH OR DURING BREAKS, FOR INSTANCE

This learning exercise can be completed in about half an hour. Like most instructional modules for adult learners, it contains roughly five major concepts which are easy to remember and which naturally lead into the next learning module in your learning road-map.

COMMUNITIES OF PRACTICE ALLOW TECHNICIANS TO SHARE ANSWERS WITH EACH OTHER

When you encounter a tough problem, there’s a good chance someone else has already solved it. Searchable solutions help fix things fast, and are ordered by the search engine for applicability. You can enter solutions too. .

With the screws removed, carefully lift the back cover.



Here’s a case where a solution is available that exactly answers your question. No need to call Tech Support.

LIVE, ONLINE SESSIONS CAN BE SCHEDULED AND DELIVERED ON A MOMENT’S NOTICE

Tools like NetMeeting or Webex deliver short, informative sessions to a broad audience for quick, timely updates that include the ability to interact with other users and ask questions.

Feedback can be captured as a solution for future reference. . .



YOUR WORK DAY IS NOW MORE PRODUCTIVE. LESS MISTAKES MEAN FASTER THROUGHPUT AND LOWER COST

When you use all the tools at your disposal, even though some time is expended, the return on your investment is more than recovered by faster troubleshooting, less mis-takes, and reduced risk of “overworking” or damaging a phone.

CHANGE NOTICES CAN BE QUICKLY EMAILED TO ANY AUDIENCE SEGMENT.

When we release changes or mandatory fixes, particularly those affecting safety, the entire service community can be e-mail alerted within minutes. In the past, it took sev-eral days and a couple thousand stamps to send Customer Service Bulletins by snail-mail.

TOUGH PROBLEM? CALL TECH SUPPORT.

Tech Support via telephone is bundled with your annual Sys-temSteps subscription, so you can get to a live person during normal business hours when all else fails.

When Tech Support discovers a new solution, it can be pushed to the field quickly. All Tech Support CSRs have SystemSteps web publishing capability.



PERFORMANCE ALERT! SystemSteps constantly monitors a Technician’s activities. Because it knows how to correct certain problems, when something goes haywire the site will try to set it straight.

Remediation can be as simple as a warning, or as complicated as temporary certification suspension until specific classes are taken.

END OF THE DAY. HOW DID I DO?

There are three significant performance indicators for service. Absolute numbers can be presented, or a simple gas gauge visual can be used to show performance relative to peers.

E-Performance Tools and the Learning Curve



E-Learning and performance support is like any technology upgrade: New tools and skills have to be developed. In the case of SystemSteps, core skills are in place in PCS Technical Communication. As a result, most of the underlying server and database infrastructure is complete.

The task ahead of us then is to develop the ability of the organization as a whole to author interactive learning and other web content. This isn’t trivial, though the total costs tend to weigh more in terms of learning curve time than on tool acquisition expense. Moving from office paper to online “glass” delivery is organizationally about like the transition from Secretaries to Microsoft Word or desktop publishing. The tools are significantly more complex, though it is possible to speed up productivity by using pre-canned forms, templates, learning objects and the like. The SystemSteps team has developed enough of these to seed a general ramp-up.

The full tool-set doesn’t have to implemented at once: The illustration below shows how Customer experience improves as functionality is added. Start at the bottom. . .

At this point, the core SystemSteps team has achieved functionality shown above with the exception of “Connections to Business Systems”.



The following chart illustrates our content development toolset and the approximate learning curves a typical user might experience.

Developing interactive, online applications takes significantly longer than putting together a simple Powerpoint presentation, as you might imagine.

TYPICAL BUSINESS PRESENTATION 6:1 DEVELOPMENT/DELIVERY RATIO

The time it takes to create presentation materials for different venues is well understood in the learning and development community. To start: A simple business presentation takes roughly six hours of development for every hour of presentation.

Development of platform class materials in a subscriber device technical training envi-ronment like PCS, is benchmarked around 40:1 for a completely new technology or product. In situations where materials are being updated or course development is incre-mental to existing materials, we at Motorola generally commit development cycles at 20:1, so to get the full picture; for every hour of classtime, there is at least twenty hours of course research and development, sometimes more.

When it comes to interactive course development for online delivery, the whole picture changes because of a couple key drivers:

PLATFORM CLASS DEVELOPMENT/DELIVERY RATIO = 20-40:1

• We must accommodate the fact that Students no longer interact directly with the Instructor.

• Instructional system responses to incorrect answers or interactions are more com-plex than the reaction to correct answers: The number of wrong things you can do - and they have to be accounted for - almost always exceeds the number of right things.

• Because this is a software product, software test and quality assurance processes consume as much as 50% of the total development effort.

• Integration of the final program into the web environment usually takes about 10% of the team’s time.

INTERACTIVE DEVELOPMENT = 120:1 DEVELOPMENT/DELIVERY RATIO

There are examples in the aviation simulation business of development cycles over 1000:1, but we use the IBM benchmark of 120:1 for our efforts. Another industry benchmark worthy of note is that interactive instruction tends to run about 40% more effective than classroom instruction. What does that mean? . . It means an average learner tends to acquire around 40% more knowledge in the same amount of time, or will learn equivalent material in 60% of the time spent in a regular class.

So why expend the time developing interactive solutions? Because remember, a live person will never have to teach that particular course again. All the human effort is up front and students can then make use of the learning event whenever they want, wher-ever they want - and one at a time too.

Once a program is developed, it must be implemented on a website. Tools used to inte-grate interactive content into the web environment are becoming more pervasive as cor-porations deploy more web content for internal communications: Even simple email often contains HTML or Flash content. Development applications range from simple HTML editors to full-blown, collaborative scripting tools.

E-P

erform

ance To

ols an

d th

e Learn

ing

Cu

rve

SystemSteps/C

olleagues®23

2D Illustration• Illustrator

• Canvas• Designer

• CorelDraw

3D Modeling

• SolidWorks• AutoCad• Rhino

• Pro-E

Animation/Simulation

• Lightwave• Maya• Stratavision• ElectricImage• SoftImage

• 3D Studio MAX

Bitmap Editor

• Paintshop Pro• Photopaint

• Photoshop

Video Compression• Media Cleaner Pro

Video Editing

• Speed Razor• Premiere

• Video Action NT

Instructional Authoring

• Icon Author• Director• Toolbook

• AuthorWare

To WWW

0 Learning Curve in Months 6

Cost/Seat = $.5K (1 seat only)


Cost/Seat = $1.1K (1 seat only)


Cost/Seat = $.6K


Cost/Seat = $2.8K


Cost/Seat = $.7K - 3.2K


Cost/Seat = $.4K


Cost/Seat = $2.2K

The Interactive Instructional Development Toolboxbold)(PCS preferred tools in



Underpinning the entire SystemSteps business is a robust, Microsoft e-commerce implementation on redundant, multiple servers, both development and public, in Texas and at mot.com in Illinois.

To start, the group investigated with several local ISPs/Development houses, a strategy to implement not only the extensive set of personalization and membership (P&M) fea-tures that govern the user experience, but also a method to integrate learning manage-ment system (LMS) features in the Microsoft environment that Motorola corporate IT had standardized on.

What we discovered was that, even in the most sophisticated e-commerce development houses like Data Return, the Microsoft affiliate that hosts radioshack.com, there was no prior experience in performance management sites, only in online storefront kinds of operations. We would essentially pay for a consultant’s learning curve had we continued on that path.

Because the Motorola SystemSteps team came from a large system background with extensive UNIX and Microsoft server knowledge, as well as database design and administration, we decided to develop the necessary competencies internally. In short, we could not find anyone that knew much more than we already did.

Around the same time, eighteen months ago, a cross-sector team of senior technical training and documentation managers in all Motorola sectors convened to explore best and common practices in all of Motorola worldwide. One of the working committees focused on e-learning. That team determined that, for most sectors, audiences were smaller than PCS, appropriate interactive programs longer but less complex, and the technical sophistication - particularly in the infrastructure businesses - of the partici-pants much higher. This drove those sectors to deploy a solution through a third party e-learning company, Docent, that was moderately expensive on a per-seat basis; but which was easily tolerated in these cases because entire learning programs can top $20K/Stu-dent. The cost of Docent services became almost invisible.

Because PCS was already well down the SystemSteps development path, we decided to opt out of paying for external services which we felt our audience would be unlikely to tolerate. Also, Docent did not have the ability to implement other performance manage-ment features we knew our constituency would demand.

The learning curve for this toolset is very long: After eighteen months, there are many idiosyncrasies of SiteServer - typical of Microsoft products - which are counterintuitive and demand extensive research to overcome. The integrated feature set of the site as it stands today has not, to our knowledge, been successfully implemented by anyone.

Database connectivity between the LMS and the rest of the site is also unique. Now that SystemSteps is available for other sectors to use, they are reevaluating its implementa-tion in their businesses.

The chart on the next page illustrates the software layers in the site and the functionality those layers enable.



SystemSteps E-Commerce Website Toolset

Database Servers

X2

X2

Windows 2000 Advanced Server E-Commerce

Windows 2000 Advanced ServerCore High-AvailabilityServer Functionality

Windows 2000Internet Information Server

Basic WWW FunctionalityFTP/Email/Search/News

Site Server

E-Commerce WWW Engine · Personalization & Membership · AI Search Engine · Publishing · Direct Mail · Development Tool Support · Front Page Server Xtns · Visual Studio Server Xtns · Office Server Xtns

SystemStepsWeb Applications

Shop, User, Technology, Product Mgmt. · Learning Management System (LMS) · Personalized Content Push · Interactive Learning & Ref · AuthorWare, pdf, HTML Flash, Powerpoint

Oracle 8Microsoft SQL Server

· Learning Management System Data · Personalization & Membership Data · DbaseManaged Online Content

WWW Users

Proposed SystemSteps Curriculum



The next few pages outline the curriculum roadmap that SystemSteps participants will see at each of the three levels. Keep in mind the entire roadmap is carried across all lev-els. For example, level 3 Techs must demonstrate Level 2 and Level 1 proficiencies. Level 2 Techs must have Level 1 skills too, etc. .

ADULTS LEARN BEST IN SESSIONS < 45 MINS WITH NO MORE THAN FIVE MAJOR CONCEPTS IN A GIVEN MODULE

From earlier sections, keep in mind that SystemSteps online learning modules are intended for adults who learn best in short sessions, with only a few key concepts that must be retained long-term. This is consistent with current, just-in-time, learning princi-ples and has a proven track record of working, even in platform delivery.

Note the bubble states: In the final design we intend to present elements that are planned but not developed as gray, rather than not include them at all. The team concluded that setting Customer expectations in this way was more appropriate than constantly adding new elements in the middle of an existing flow.

Again, Red = not started. Yellow = started/incomplete. Green = completed



Page 2 of the total curriculum roadmap is shown below.

Bubble states in these sample pages are set for example only. Currently, only the Level 2, 270c and V.120c disassembly/reassembly programs are complete.



The bulk of Level 3 prerequisite training is contained in the next few illustrations.

Online Level 3 content is tailored to inculturate Technicians prior to coming to class for platform instruction. Experience has proven that many attendees are poorly prepared for fact-to-face instruction and lab exercises, knowing little to nothing in some cases about test equipment use, RF fundamentals, basic receiver/transmitter architecture, etc.

Better online intervention ahead of class will level the playing field and permit the Instructors to concentrate on the kind of practical lab exercises Students need to be suc-cessful.



Level 3 screens continued below.

In the final version, the team has discussed taking out some of the space between bub-bles and presenting the labels as rollover text, in order to present the entire roadmap on fewer HTML pages.

Also in the final version will be the option to display only incomplete activities -- again to save space.



At this point, the roadmap is defined around specific product architectures.

The roadmap shows all technologies, but depending on carrier/technology affilliations on the part of a particular Technician, not all elements may be visible.



This concludes the curriculum roadmap as currently envisioned.

Our Instructional Designers use a specific template that combines needs assessment, learning activities, and anticipated outcome on a single form. Those forms are included in this document as appendix “A”

Current State of SystemSteps



There are eight major components of SystemSteps in various stages of completion as shown on the opposing page.

HARDWARE Servers to support the entire SystemSteps program are in place and fully functional in both Texas and northern Illinois. The Texas development site is comprised of four, Compaq 5500/6500 servers with Raid 5 fault protection. All of this hardware was reclaimed from other businesses. None of it was purchased new for this program. Approximately $15K remains in capital depreciation on one server.

The mot.com staging and live sites for SystemSteps are integral to the rest of the mot.com presence in northern Illinois. No additional hardware is required at this time. Should our traffic increase to the point where more physical servers are needed, the cost will be supported by SystemSteps sold services revenue. Hosting charges are estimated at $1.2K/month. As we move closer to final rollout, there will be minimal setup charges, in about the $2K range, from corporate IT, that we will control by using SystemSteps project members to help in hosting tasks.

MICROSOFT WINDOWS 2000 ADVANCED SERVER

This basic component of our environment is fully loaded, configured and complete on all servers. Due to a change in Microsoft/Motorola site licensing arrangements, we will incur a one-time, $8K software licensing charge in 2002 to make all servers fully com-pliant with Microsoft’s new requirements.

MICROSOFT INTERNET INFORMATION SERVER (IIS)

IIS lives immediately above the core Microsoft server components. IIS provides basic internet server capability below the e-commerce line. All IIS features are fully enabled and configured with the exception of migrating current logon accounts from Microsoft Access, the flat database used as the default by IIS, to Microsoft SQL Server, the rela-tional database that will be shared by both IIS and SiteServer.

SITESERVER SiteServer administers most aspects of what is considered the e-commerce experience. SiteServer is fully licensed and installed. Note, however, that a significant amount of SiteServer scripting for Personalization and Membership (P&M) services remains to be done. P&M functions interact with and affect not only SiteServer, but the Learning Management System (LMS) and some IIS email services too. Its effects are so perva-sive that elaboration on specific SiteServer features are covered in P&M and LMS sec-tions of this document. We anticipate approximately fifty person/days to complete these server-side enhancements. There is no capital expense associated with this activity

SQL SERVER Microsoft SQL Server is fully installed and configured. Currently, there are slightly under 400 user accounts on SystemSteps that need to be migrated to the SQL database to support full P&M functionality. Microsoft supplies utilities for this purpose, but we have not yet had success using them. Our estimate is no more than four days to com-plete this task



SystemSteps Development Status: 2/20/02

Windows 2000 Advanced Server

Windows 2000Internet Information Server

Site Server

Learning Management System (LMS)

Microsoft SQL Server

Oracle 8

Content

· Learning

· Software Delivery

· Glass Manuals

· Solution Builder

Development and Production Sites

Final publish to mot.com = 2person/days. Need $8K in W2KAdvanced Server Licenses tobe compliant with new standards

Server HardwareDevelopment and Production Sites 100% complete. No further

resources needed.

Development and Production Sites

100% complete. No further resources needed.

10% Complete

Server Side Tasks:· mot.com LDAP sign-on with P&M final test· Export membership data to Microsoft SQL· SiteServer admin screens· Direct e-mail· Configure staging and production servers at mot.com

Personalization & Membership Features:

· User maintenance (25 days)· Curriculum maintenance (5 days)· Certification status (5 days)· Shop Manager screens (5 days)· Test Equipment screens (3 days)

· Shop Maintenance (complete)· Course maintenance (complete)

25% Complete

5% Complete

Part of P&M Functionality

12% Complete for P2K Products

85% Complete as discussion groups

Total resources needed to completee-commerce support functions andreplace current, static Systemsteps support site:

· Server Side = 55 person/days · App Side = 60 person/days · Capital = $0 · Expense = $8K software

Live site available for external test users 5/15



SQL SERVER Servers must have a database to store account and permissions data. By default, Microsoft provides a small Access database with its server products for this function. Access is a “flat” database, non-relational, that cannot accomodate personalization and membership relational data, so in keeping with Microsoft products, in upgrading to e-commerce, SiteServer typically uses Microsoft SQL Server, which is very similar to Oracle, to enable this kind of more sophisticated functionality.

SQL Server is fully installed and configured in our system. It’s structure, though, is con-stantly being revised as P&M functionality is increased.

ORACLE 8 Oracle drives the learning management system, including Customer account, regional information, facility, student, curriculum, certification and other features. Oracle is fully installed. LMS development does, however, alter its content and structure daily.

LEARNING MANAGEMENT SYSTEM

We estimate another 55 days to complete all LMS features. The SystemSteps team has been challenged many times on why we did not choose to host our site with an outside vendor with LMS capability, like Docent, used by GTSS for its first CBT program. Companies like Docent, who specialize in projects like SystemSteps, charge in the $50/student range for rudimentary LMS functionality, and apply moderately expensive charges to incorporate customized items like the Motorola logo, etc. Beyond simple upgrades, however, charges begin to sharply escalate.

It is not practical for an LMS vendor to incorporate other Motorola-specific perfor-mance management features like software downloads, online tools etc. -- at least not at reasonable expense, so even if external pricing was more attractive short-term, going outside would end up for us a dead-end solution. Since we will have invested about $90K, almost exclusively in time, to develop our own LMS with the tools we need, how does that stack up compared to Docent? .

The breakeven point for our particular investment compared with Docent, for example, is around 1800 Students - far less than the 10K+ we believe are out there as a baseline Technician population in the cellular subscriber business. Without considering the addi-tional functionality in the SystemSteps LMS, the simple fact that with 10K subscribers, our cost drops to $9.00/student, is solid validation that our decision to invest in our own program up front was the right one for us.

To save cost in other sectors, any Motorola group is welcome to use SystemSteps or any of its components as they see fit.

SITE ADMINISTRATION FEATURES

Account information in SiteServer is closely tied through P&M functionality to the LMS, so it is not apparent to someone interacting with administration features at higher levels exactly which site elements are actually being affected.

Administration is designed so any Instructor or clerical associate can keep the site cur-rent without IT help. Some P&M elements are designed for self-declaration; a shop Manager or even a Student can update limited fields in their respective profiles.

This is what someone with site-wide administration priveleges sees:



This is the uppermost level of all personaliztion and membership features.

Click here to go here



Shop Data can be applied globally to all Technicians assigned to that particular shop.



Any changes are logged:

Course modules, whether online or live platform instruction are added in this screen:

The LMS uses sequence numbersto put coursestatus bubbles inorder on the userview of curriculumflow.

When coursesexpire, they disappear from thecurriculum flowview.



PERSONALIZATION AND MEMBERSHIP HEIRARCHY

The illustration on the opposing page shows P&M features in the first SystemSteps release. Those elements are defined in decending heirarchal order as:

• CORPORATE ENTITY Corporate entities are umbrella organizations Motorola does business with - a Verizon or Cingular. At this level, our general business agreements, contracts, POs, etc. would be administered.

• REGION Most corporate entities have regional variations in their business practices that System-Steps has to accomodate. Regions may or may not have actual facilities and people that are directly a part of them. Generally they appear like mini-corporate entities in the U.S. carrier base.

• SITE Sites, in our heirarchy, are always physical locations with SystemSteps members in them. Site Managers have some account administration privleges for their direct reports like add/drop members, examine certification status, etc.

AFFINITIES

• LEVELS Access to higher levels, and this should be fairly self-explanatory, enables access to more detailed and sensitive information depending on skill level or organizational align-ment.

• TECHNOLOGY Organizations and members may declare technology affinities themselves in order to gain access to information on products that may not be in their immediate portfolios, though typically, we would charge for such access. At initial sign-up, however, our Training Coordinator would set these affinities for them.

• TEST EQUIPMENT Shops typically try to standardize test equipment setups and don’t want every Techni-cian to have access to that kind of information. This affinity allows shop Managers to grant access for only certain lead Technicians or test equipment specialists.

• PRODUCTS Product affinities are a series of fields that is quite large and is shown on page 38. These fields are self-declared. While it may be intriguing to some to declare an affinity for all products, the performance management monitoring process would then enforce the reading of CSBs, online courses, etc. In short- if you tell us you work on a particular product, SystemSteps will make sure you know how.

• CERTIFICATION SystemSteps certification is a combination of shop/person capabilities. These fields per-mit us to grant varying states of partial certification depending on the factors shown. Conditional states can be set for a shop or person that may have been fully certified at one time, but which has failed to complete some recent certification requirement on time.



&RUSRUDWH

(QLWLW\

5HJLRQ

5HJLRQ

5HJLRQ

6LWH

6LWH

6LWH

0HPEHU

0HPEHU

0HPEHU

0HPEHU

0HPEHU

6LWH

0HPEHU

Hei

rarc

hy N

otes

:

• H

eira

rcha

l str

uctu

re is

-

- or

gani

zatio

nal

-

geog

raph

ical

-

pers

onal

• D

iffer

ent b

usin

ess

rule

s ca

n be

app

lied

to a

ny c

ompo

nent

of

the

Cus

tom

er b

ase,

ie:

-

logo

s

- so

ftw

are/

conf

igur

atio

n

- sp

ecia

l ser

vice

act

ions

• S

ome

site

s m

ay b

e co

rpor

ate,

byp

assi

ng o

ther

reg

ions

• D

iffer

ent l

evel

s of

a C

orpo

rate

ent

ity c

an a

dmin

iste

r th

e ac

tiviti

es o

fsu

bord

inat

es o

r su

bsid

iari

es

Per

sona

lizat

ion

and

Mem

bers

hip

Hei

rarc

hyA

ffini

ties

Lev

els:

• P

ublic

• L

evel

1 •

Lev

el 2

• L

evel

3 •

Lev

el 4

• C

onte

nt D

evel

oper

/Ow

ner

• A

dmin

istr

ator

Tec

hn

olo

gy:

• 1

-way

Pag

ing

• 2

-way

Mes

sagi

ng •

Gen

eral

• A

nalo

g •

TD

MA

• C

DM

A/1

X/C

DM

A20

00 •

GS

M/G

PR

S •

3G

/4G

• B

luet

ooth

/802

.11

• S

uppo

rt T

ools

• S

oftw

are/

App

licat

ions

• P

hysi

cal R

epai

r

Tes

t E

qu

ipm

ent:

• B

asic

Ben

ch •

GA

TE

/Aut

otes

t •

Cal

l Tes

t •

Cal

ibra

tion

& C

orre

latio

n

Pro

du

cts:

• B

y M

odel

# •

Sea

rch

by E

SN

Util

ity

Cer

tifi

cati

on

: •

Non

e •

In P

roce

ss •

Will

Not

Be

• U

sed

to B

e •

Cer

tifie

d •

Con

ditio

nal S

tate

1 •

Con

ditio

nal S

tate

2 •

No

Pay

• S

hop

Fai

lure

Per

form

ance

Man

agem

ent:

• P

rodu

ctiv

ity •

Bou

nce

Rat

e •

Ret

urn

to M

anuf

actu

rer

(RT

M)

• S

wap

Rat

e •

Cal

ls to

Cal

l Cen

ter

• C

laim

s F

iling

Qua

lity

• P

arts

Use

/Cos

t •

"S

uper

Tec

h" A

chie

vem

ent

• A

dvan

ced

For

um A

cces

s •

Gol

d S

tars

Affi

nitie

s ar

e w

hat a

llow

a w

ebsi

te to

inte

ract

, on-

the-

fly, w

ith C

usto

mer

s on

ape

rson

al b

asis

. Affi

nitie

s al

low

Mot

orol

a, C

usto

mer

s an

d U

sers

to ta

ilor

the

onlin

eex

perie

nce

to s

peci

fic n

eeds

and

bus

ines

s co

nditi

ons.

Dep

endi

ng o

n w

hich

affin

ity p

oint

s ar

e ch

ecke

d in

a U

ser’s

pro

file,

they

will

see

mor

e, le

ss, o

r sp

ecifi

cin

form

atio

n. In

add

ition

, as

perf

orm

ance

impr

oves

or

degr

ades

, onl

y th

eap

prop

riate

kin

d of

rem

edia

tion

will

be

requ

ired.

Affi

nitie

s al

so s

ave

wor

k be

caus

e im

port

ant,

but i

ncre

men

tal,

chan

ges

and

shor

tbu

rsts

of i

nfor

mat

ion

can

be p

ushe

d au

tom

atic

ally

to s

peci

fic in

divi

dual

s, in

sm

all

or la

rge

grou

ps.

Oth

er W

ebsi

te B

usin

ess

Fea

ture

s

• C

laim

s R

eim

burs

emen

t•

Onl

ine

For

ums

• R

epor

ting

In/O

ut•

AA

D•

Cal

l Cen

ter

Cas

es•

Bill

ing/

Pay

men

t Dat

a

Cu

sto

mer

Aff

&DUULHU

'

9$5

'HDOHU

SystemSteps Site Development Timeline


• PERFORMANCE MANAGEMENT

Factors in the performance management list each have a positive and negative metric which can be used to affect pay-for-performance. Some of these affinities will be numerically computed from other business systems. This is the only family of affinities that does not consist of binary values.

Another interesting concept is to apply basic artificial intelligence to evaluate perfor-mance management states to alter when and how members are rewarded or remediated.

• CUSTOMER AFFINITIES The nature of the sales channel in U.S. carrier markets makes for strange bedfellows. .

Handsets find their way to consumers through various distribution channels that may serve several masters. VARs and dealers sell product from most manufacturers and on different carriers, putting their interests in occasional opposition to those of Motorola and our direct customers.

It is extremely important, for the sake of data security, to define which part of the distri-bution foodchain a particular entity belongs to so we can limit self-declared affinities. For example; we don’t want a Verizon/Alltel dealer to self-declare an affinity for AT&T information.

SystemSteps Site Development Timeline

In this proposal, we’ll treat the timelines for e-commerce site development and learning content development separately. We do this because e-commerce site development is a finite project that will soon enter maintenance/upgrade modes, where learning content evolves constantly, and in fact will pick up dramatically once the site is posted. The site is a sandbox and all the content developers players in it. .

The illustration on the next page reflects the fully loaded cost of the two developers cur-rently on the project. By July, with only the U.S. base of around 1200 Technicians, we will begin to generate positive revenue.

We can then fund more learning content development with additional headcount in a pay-as-we-go system. Because we’re bundling test equipment support, live instruction, and call center support along with SystemSteps online presence, the entire value propo-sition is strong enough out of the box to spark enrollment without a complete curricu-lum, even if at reduced pricing for the first year.

System

Steps S

ite Develo

pm

ent T

imelin

e

SystemSteps/C

olleagues®41

Year 2002 SystemSteps Development Timeline

NT Servere-commerce

version in TXComplete Connect to

Oracle. And SQLStart

business rules5 Days 10% complete

Design New Site

Complete

ExtensiveTesting30 Days

0% complete

Corp. SecurityTesting

1 day 0% complete

Move tomot.com

3 days 20%

complete FormalAnnouncement

2 Days 0% complete

First Revenue

LMS Design60 Days

35% Complete

LMS Data Load60 days 10% Complete

Jan

Feb Mar

Apr

May Jun

Jul

Aug

Sep

Design P&M FeatureEnhancements

15 days 10% complete

Email Functions

Implemented for Direct

Mail 10 Days 1%

complete

Beta Customer Testing and

Design revision45 Days 0%

complete

(Days are in people days)

($17K) ($17K) ($17K) ($17K) ($17K) ($17K) ($17K) ($13.5K) $1.75K

+20 members +120 membersFully loaded development cost

Re-allocation of Resources


Re-allocation of Resources

THERE ARE MANY OTHER TECHNICAL COMMUNICATORS AROUND THE WORLD CAPABLE OF MOVING TO ONLINE DELIVERY.

The revenue opportunity in SystemSteps begins with delivery of support information, but that opportunity grows exponentially by adding instructional content for sale to a broader audience.

Initial release of the fully functional site for beta testing, with mature P&M features, will be in June. From there, we intend to shift the focus of the two site developers and our other two platform developers to instructional content, but the greatest opportunity to expand depends on the successful migration of other technical communicators, worldwide, from paper production to the SystemSteps environment. This is not particu-larly expensive from a capital standpoint, as illustrated earlier, but such a transformation requires dedication and a willingness to learn, along with some learning curve time. Like all techology migrations, it requires fortitude to accept and fund the change.

If all Service team members currently producing platform learning and paper documen-tation worldwide shifted to developing in the single, SystemSteps environment - sup-ported by tools we’ve already customized and implemented in Texas - PCS would produce much more effective and timely media at significantly lower cost of delivery per Customer. So where are these Technical Communicators?

Note that Asia is not shown as it is mostly supported by EMEA at this time. Long-term, local assets must eventually be put into place to create regional strength.

Intially, not all this bandwidth can be channeled into online delivery, but redirecting a portion of it, around half, would yield a complete support site plus thirteen hours of instructional content and Spanish language support as shown on the next page.

Start 0

120 days

60 days

30 days

90 days

BasicAuthorWare

AdvancedAuthorWare

Authoring at200:1

Authoring at150:1

Authoring at120:1

Authoring Learning Curve

TABLE 1. PCS Technical Communications Activities

Dept. HC Activities

BB810/811 9 PCS Technical Communications. Instruction and Call Center support. Platform instruction, service docs, online solutions, interactive development. E-business. SystemSteps owners.

EU501 18 ITC - User Guides, messaging technical docs. Paper based. No interactive delivery at this time. Strong print/graphics skills.

BB213 2 TDMA/3G International Service Engineering. Platform Instruction/Service Docs. No interactive delivery

BB215 2 CDMA Service Support. Limited Platform Instruction. Service docs. No interactive delivery

YE134 1 GSM Service Support. Platform Delivery. No interactive delivery

YI453 1 GSM Service Support. Documentation. No interactive delivery

Latin America 16 Doc translation, platform instruction. No interactive delivery

Re-allo

cation

of R

esou

rces

SystemSteps/C

olleagues®43

NA Tech Comm8 HC w/call center

ITC18 HC

TDMA/3G ISE2 HC

CDMA Service2 HC

GSM Supt. YE1341 HC

GSM Supt. YI4531 HC

LA Tech Comm16 HC

Complete LMSRefine Curriculum

Retrain MessagingH/C for Authoring

Authorware Training

Authorware Training

AuthorwareTraining

AuthorwareTraining

AuthorwareTraining 8 HC

Complete P&MStart Curriculum

TDMA/3GCurriculum

CDMA Curriculum

GSM Curriculum

Time 0

+30 days

+60 days

+90 days Beta Test Demow/Curriculum

TDMA/3G Curriculum

CDMA Curriculum

GSMCurriculum

GSM Curriculum

LA Translation &Regional Adapt.

SystemStepsRollout

Consumer/Level 1Curriculum

TDMA/3G Curriculum

CDMA Curriculum

GSM Curriculum

GSMCurriculum


Start Curriculum& Limited Support

GSM Curriculum


+120 days

Consumer/Level 1Curriculum

40hrs 0hrs 0hrs 0hrs 0hrs 0hrs 0hrs





SystemStepsSite & Core Supt.

Consumer/Level 1Curriculum 5.5hrs

TDMA/3GCurriculum 3.0hrs

CDMA Curriculum 1.5hrs

GSM Curriculum 1.5hrs

GSMCurriculum 1.5hrs

LA Translation &Regional .20.2hrs

= Number of Productive Authoring HoursNotes:

Final content hours calculated at 120:1 development/delivery ratio

SystemSteps Productivity Estimates During Reallocation of Resources

Site at InitialRollout

$10KSoftware Expense $10.5K $10.5K $5.2K $5.2K $24K

= Non-productive Learning Curve= Productive Authoring Effort

Financials


Financials

In developing the project to where it’s at today, we’ve invested in 2000/2001, roughly, the following:

• 18 months (X2) for key developers (fully loaded) = approx. $200K

• Server and Application Software (5 content developers) = 41K

• Hardware/Networking (reclaimed) = 22K

• Hosting @ mot.com = 5K

As shown earlier, continuing site development costs are running at $17K/month.

In 2001, our first attempt at sold support services in PCS, we generated minimal reve-nue - $78K

This year to date, PCS Technical Communications has $201K in outstanding quotes for services, with $20.4K billed or committed by PO.

Without considering potential revenue from Level 1 storefronts, our traditional audience of Level 2 and 3 Technicians presents us with an annual TAM of around $4M. Since we know that many shops will drop certification rather than move to SystemSteps, that still leaves us with at least $2M/yr in sold services opportunity, outside of any cost reduc-tion, intangible improvements in service or Customer satisfaction.

Costs below are worst case with participation by most PCS Tech Comm entities. Learn-ing curve costs are assumed at $100K/HC avg. - fully loaded. Potential L.A./EMEA sold services opportunity had not been identified at the time of this revision.

Selling only in N.A. and without exploiting any Level 1 storefront certification opportu-nity, SystemSteps can break even in 2002.

TABLE 2. Estimated Running Costs/Revenue in 2002

NA Tech Comm.

ITC TDMA/

ISE

CDMA

Supt.

GSM

YE134

GSM

YI453

L.A Tech Comm

Monthly Cost Total

Sold Service (÷12)

Margin

April $17K $10K $10.5K $10.5K $5.2K $5.2K $24K $82.4K $7K $75.4

May 19 33 5 5 3 3 40 109 10 99

June 19 33 8 8 4 4 40 117 10 107

July 20 33 8 8 4 4 40 117 166 49

August 20 33 8 8 4 4 40 117 166 49

September 20 33 8 8 4 4 40 117 166 49

October 20 33 8 8 4 4 40 117 166 49

November 20 33 8 8 4 4 40 117 166 49

December 20 33 8 8 4 4 40 117 166 49

2001 Total $ 9.6K

M-Gate Status


M-Gate Status

SystemSteps has been program managed since its inception, though it was started before M-Gates for service was in place. The Microsoft Project files for 2002 are on the enclosed CD. A summary of SystemSteps IT tasks leading to rollout are shown in the calendar views that follow.

February activities are mainly centered on completed Learning Management System features and migrating database and site content to mot.com.

February 2002Sunday Monday Tuesday Wednesday Thursday Friday Saturday

12

3456789

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28

LMS Course Module Add Screen, 6 days

LMS Course Module Add Screen, 6 days

LMS Screen presentation of Learning Map, 5 days

Migration of Access Database to Sequel, 5 days

WEB and Database Hostin

LMS Student Course Assignment Screen, 14 days

LMS Screen presentation of Learning Map, 5 days Dbase connectivity between different servers, 5 days

Migration of Access Database to Sequel, 5 days

Develop Product Screens, 5 days

Develop Technology Screens, 2 days


Dbase connectivity between different servers, 5 days Configure Staging Server at mot.com, 2 days


Configure Staging Server at mot.com, 2 days Configure Production SQL Server & Migrate Data, 3 days

M-Gate Status


In March, work starts on Student and site reporting from both Oracle and SQL. By the third week, single sign-on with the Mot.com LDAP, OneIT team is well underway.

March 2002Sunday Monday Tuesday Wednesday Thursday Friday Saturday

12

3456789

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31


LMS Student Course Assignment Screen, 14 days LMS Curriculum Assignment Screen, 2 days LMS Shop View Modify Screen, 5 days

Develop Screen for Content owner to publish document, 3 days Configure mail service on st Develop email distribution list

Develop a manager defined Custom WEB Reports generator screen, 3 days

Configure mail services on development system, 3 days

LMS Shop View Modify Screen, 5 daysLMS Courses View Modify Screen, 5 daysLMS User Maintenance Screens, 6 days

Develop email distribution list

LMS User Maintenance Screens, 6 days LMS Carrier Affiliation ScreeLMS Technology Affiliation SLMS Product Affiliation Scre

User Definition Interface for Single sign-on, 5 days

Full Personalization and M

LMS Course Scheduler, 10 days

User Definition Interface for Single sign-on, 5 days User Definition Interface for Single Sign-On, 5 days


User Definition Interface for Single Sign-On, 5 days

M-Gate Status


In April, most site infrastructure tasks are complete. Alpha testing continues and early beta testing begins. At this point, most activities are de-bugging and changes.

April 2002Sunday Monday Tuesday Wednesday Thursday Friday Saturday

123456

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30


User Definition Interface for Single Sign-On, 5 days Web and Database Hostin

LMS design and implemen

Develop V120 Level 2 mechnical product simulation, 24 days




M-Gate Status


By May, the site is live and under full-scale beta test. Note that the site developers have moved on to authoring interactive content and training other content developers.

May 2002Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1234

56789 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31



Summary


Summary

SystemSteps is more than just a website: It is a unique watering hole for the entire cellu-lar subscriber service community. As an e-learning, leadership effort, it has the potential to set Motorola apart as a superlative service partner worldwide.

All PCS Associates are familiar with competitive forces in our markets that drive us to be more innovative and competitive in ways not directly a part of the actual products we sell. Service is important. Service Technicians affect buying decisions. In a commodity environment where every OEM’s products look similar, feel similar, and do about the same things, a finely-tuned connection and between a manufacturer and end users, along with a superb support experience, is a key brand differentiator.

SystemSteps can make a difference. .

As of this revision, the SystemSteps project is at risk of being dissolved, and with it, our PCS e-learning and performance support program. One of the two key architects has been notified that his e-commerce IT job will be eliminated in April. The Training Coordinator critical to rolling this out to the field has also been notified. There is cur-rently no sign-up in PCS for any other group to either support or take on this project.

SystemSteps must be supported for us to be successful in running our service business with less people. It’s the only way to do more with less. .

It should be apparent from this proposal that SystemSteps is more than 80% complete on the infrastructure and basic support content sides. The interactive learning tools are fully in place and learning content will come with time and with the participation of other authors. Knowledge is the most evolutionary feature of the SystemSteps environ-ment. That part of the project will never end. New things are always there to be learned.

I welcome your support and participation. .

Respectfully,

John Sawinski

817.245.2183e103922-way PIN 2452183