Coffee Retailer Case Study September 2006

1. Coffee Retailer Case StudySeptember 2006 ONYX Confidential

2. Agenda Overview Implementation Benefits Lessons Learnt Q & A ONYX Confidential

3. Agenda Overview Implementation Benefits Lessons Learnt Q & A ONYX Confidential

4. Company Mission To become a great, enduring company with the most recognized and respected coffee brand in the world, known for inspiring and nurturing the human spirit. Guiding Principles • Provide a great work environment and treat everyone with respect and dignity • Embrace diversity as an essential component in the way they do business • Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of coffee • Develop satisfied customers all of the time • Contribute to their communities and environment • Recognize that profitability is essential to their future success ONYX Confidential

5. The Company Before ONYX • B2B - Sales Force (Foodservice & License Stores) • Variety of spreadsheets, Access Databases, misc. systems to track sales leads through B2B support • B2C - Customer Care Center • Access Database -> Contact management system • Various tools for servicing customers needs (warranty database, intranet, sbux card tools…) • B2E - Employee Shared Services • Contact management system • Access database for Employee Record Services ONYX Confidential

6. Issues Before ONYX Challenges: • Lack of comprehensive customer database • Had no true SFA – groups were using spreadsheets and opportunities were falling through the cracks • Lack of effective lead management process & pipeline visibility • Not able to capture, measure, and resolve customer issues Results: • Redundant data stores and inefficient sales processes • Loss of intellectual property • Customer attrition • Lost revenue opportunities • Heavy administrative burden on our sales force ONYX Confidential

7. Onyx Implementation Executive Overview • Three departments use Onyx as primary system, six additional departments use Onyx as secondary system • Nearly 100% End User adoption • Implementation went smoothly despite major acquisition during project • Efficiencies gained via process automation (Marketing Wizard and Equipment Configurator) • 59% increase in lead follow-up and 17% increase in lead closure ONYX Confidential

8. Agenda Overview Implementation Benefits Lessons Learnt Q & A ONYX Confidential

9. Implementation Overview Over 1,000 users in three business groups • B2B - Sales Force (Foodservice & License Stores) • Foodservice Launched Summer ‘03 • Added Foodservice support Fall ‘03 • License Stores launched Spring ‘05 • B2C - Customer Care Center • Contact Management Launched Summer ’04 – replacing previous system and Warranty Database • Warranty, Customer Card, Nutrition, Feedback • B2E - Employee Shared Services • Contact Management Launched December ’04 – Replacing previous system and Access Database ONYX Confidential

10. Implementation Approach • Used a phased approach: Prove success then share with others. • Evaluated and re-engineered the business processes first. • Established strong support structure along with “carrots and sticks”. • Focused on business unit(s) with highest desire and highest return • Foodservice • Licensed Stores • Customer Care Center • Employee Shared Services ONYX Confidential

11. Business Objectives: • Improve lead management – follow up and closure • Improve customer experience and company effectiveness • Website, phone, and Distribution Partner • Increase customer retention • Improve customer “touch” • Enhance cross-functional communications and increase accountability • Build customer knowledgebase • Automate workflow and reduce non-value added tasks • Improve the company’s employee experience and their own professionalism ONYX Confidential

12. ONYX Answer • Automatic lead routing based on customer segments and territory assignments • Automated workflow through sales cycle including pre-populating required forms for customer setup • Single repository for customer relationship information with one-click access to financial transaction reports • Portfolio management across all brands • “Equipment Wizard” to automate selection and manage costs of brewing equipment • “Marketing Wizard” to automate selection and manage costs of marketing materials for the brew location • Reps can use wireless “Hotspots” at the stores or connect to the network once back at their offices • Customer Issue Tracking ONYX Confidential

13. Agenda Overview Implementation Benefits Lessons Learnt Q & A ONYX Confidential

14. Key Successes and Challenges: Successes: • Great team and collaboration • Business users at all levels engaged • Successful initial project led to expansion of Onyx at Company Challenges: • Redesigning business processes in dynamic environment • Acquired an additional coffee company after design complete and development underway ONYX Confidential

15. Business Results: • Improved lead management – follow up and closure • Improved customer experience and organizational effectiveness • Website, phone, and Distribution Partner Results: Increased follow up and closure = increased revenue • Increased lead follow up by 59% • Increased lead closure by 17% ONYX Confidential

16. Business Results: • Increased customer retention • Improved customer “touch” • Enhanced cross-functional communications and increased accountability • Built customer knowledgebase about how to best serve key customers Results: Supported new customer touch strategy to improve experience. Onyx directly contributed to a 4% increase in customer retention ONYX Confidential

17. Business Results: • Automated workflow and eliminated non-value added tasks • Improved the partner experience and our professionalism Results: Company previously used Excel forms for new account set-up but replaced that with automated processes and workflows. This in turn led to efficiencies gained and higher customer satisfaction. “Aim (Onyx) has been a tremendous time saver and benefit for me and my team. It has allowed me to reassign account installs in seconds and follow-up on important information that is needed to do business.”~Account Services Manager “Getting info to the field is much easier now through Notes in Aim. We can see why there is a hang up in the process that needs to be resolved.”~ Equipment Coordinator ONYX Confidential

18. Agenda Overview Implementation Benefits Lessons Learnt Q & A ONYX Confidential

19. Business Challenges • Business focused on Product and operating in Silos • Hard to agree to change • Business units competing • Poor alignment of business units with CRM strategy • Changes to business requirements during implementation • Parallel development • New user base introduced with extensive requirements • Significant changes to specification due to some unfamiliarity of business reps with terminology and concepts • Project dependencies on internal resources • Continuous shifts in priorities of multiple parallel projects • Unclear direction regarding management of shared IT and user resources • Large User Base • Complex logistical exercise to train and deploy to entire organization ONYX Confidential

20. Project Challenges … and how we overcame them • No strong business ownership & difficulty in making decisions • Ensured options are discussed with all business units • Strong recommendations made to direct decision • Aggressive timeframes • Strong development team to implement on time • Ensured clear definition of requirements prior to implementation • Unit testing by business resources prior to System Test • Quick turn around of bugs identified in System Test and User Acceptance Testing • Silos • Involved all related business areas in requirement gathering and sign off • Business Owner working with Business units to improve alignment • Many change requests & last minute changes to significant areas • Ensured implications are understood • Made no promises that we can/cannot deliver • Used strict change control • Clear understanding of requirements and business justification • Business and IT commitment to dedicated resources to the project • Ensured quick turn around of user requirements, issue resolution, decision, sign-off, etc • Empowered user representatives with business knowledge and deep experience ONYX Confidential

21. Lessons Learned • Understanding of business objectives and strategies • Ensure the project resources are clear about what we’re trying to accomplish • Leadership required to ensure that focus is maintained on the business objectives • Understand the client’s environment • Political environment • Past technology development and deployment history • Ensure adequate time is scheduled for testing • Educate the business • Educate the business in both CRM concepts and Onyx system • Ensure that business is clear on why design is taking certain directions • Walk through of all requirements and solution with client • Prototypes are not always necessary but can come in handy at times • Keep it simple! First release should encompass as much out of the box functionality and user interfaces as possible • Allows to bring client business and technical resources up to speed before tackling complex business rules ONYX Confidential

22. Lessons Learned • Onyx knowledge on both business and development side essential • Ensures fast and error free implementations, especially under time pressure • Large projects require dedicated business/IT resources • Ensure high quality deliverables at the front end of the development cycle • Ensure resource have the right level of skills – poor resources may impact project delivery • Ensure resources are placed in roles appropriate to their experience/skills • Ensure there is one central project plan • Client implementation methodologies may require separate plans for business, development, deployment etc. • Watch for shared resources • Beware of Change Requests • All changes, no matter how small should be documented as change requests, … even if implemented at no cost (e.g. Configurations) • Explain implications of the decision to the Client • Allow client to make the final decision ONYX Confidential

23. Implementation Success Factors • Support from executives • worked collaboratively on a number of challenging issues • Great Client Delivery Team • Always aimed to deliver the best result and highest quality • Dedicated resources, followed our advice/direction • Delivered on time and on budget • Cultural Change Program • Develop and implement a cultural change program before deployment of systems. Focus on • Measures – customers and activity that support strategy • behaviours • Training • A very successful training program developed for the client • Technology • Strong technology platform ONYX Confidential

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