Enabling Tomorrow’s Innovations

1. MobileMusic Enabling Tomorrow’s Innovations Team 6 by Joseph Helou, Karl Nickl & Ankush Balekundri

2. Agenda Challenges Overview Recommendation Implementation Financial Analysis Risks & Mitigation Conclusion Appendices

3. Challenges with MobileMusic’s current IT strategy How can MobileMusic’s IT strategy help continue growth and ensure complete customer satisfaction? Legacy Costs • What systems should we implement in order to increase reliability and decrease cost? • How much staff do we need in regional offices? • What IT controls should be put into place to create a secure environment? • How do we increase our capacity without increasing total costs too much? • How do we approach adding new Kiosks, Gaming, and Dating? IT Operations & Controls Scalability Business Strategy

4. Potential key improvements with MobileMusic’s new IT strategy • Enabling Future Business Strategies • Integrated Systems • Scalable Technology Improving IT Operations & Controls Increased Revenue per Customer • Reduced Development Lead Timefor New Business Lines Increased Customer Satisfaction Low Priority High Priority • Increased Systems Uptime Increased Employee Productivity • Reduced Employee Turnover Short Term Long Term

5. Evaluation of opportunities and vision for the future of MobileMusic We want to position MobileMusic with technology that will create a sustained competitive advantage, enable easy addition of new lines of business, and provide customers with rich content solutions to their entertainment needs. Our Vision System Integration Restructuring IT Enabling The Future • Allows for the capability to support existing activities as well as future plans • Better alignment with corporate strategy • Gaming & Dating • New systems from single vendor hosted on cloud infrastructure • Migrate logistics system to cloud infrastructure • Consolidate dispersed IT services • Move to standardized desktop environment • Improve IT operations

6. Issues that can be addressed with an integrated system Subscription Management & Customer Management Solved by: • Critical: All customer services depend on it • Unreliable: Downtime causes irreparable damage to brand System Integration Billing Management • Inherited from parent company • Lack of scalability • Limited availability • New systems from single vendor hosted on cloud infrastructure • SM/CM • BM • FP • Migrate logistics system to cloud infrastructure Finance & Procurement • Developed in house, coded using COBOL • Expensive to manage and add functionality • Limited availability Logistics • Poor compatibility with Finance & Procurement system • Increased development costs due to technological differences • System Integration • Restructure IT • Enable The Future

7. The benefits of integrating systems outweigh the costs • Increased capability to deploy new features and services • Decreased long-term costs • Increased scalability • More reliable accessibility/performance • Increased employee morale • Increased security • Benefits System Integration • Dependent on cloud provider for security and access • Higher short-term costs • Learning curve of new systems • Costs • System Integration • Restructure IT • Enable The Future

8. Issues that can be addressed by restructuring IT resources Solved by: • Unmanageable IT Environment • Non-standardized desktop environment • Overload of PC-related issues Restructuring IT • Consolidate dispersed IT services • Outsource regional kiosk servicing to outside firm • Outsource help desk services to India • All other IT services moved to headquarters • Move to standardized desktop environment • All computers, peripherals, software pre-selected • Improve IT operations • Increased standardization of processes • Increased focus on security • More robust long-term planning • Scattered/Redundant IT Resources • ≈75% of IT staff is dispersed throughoutregional offices • Low employee morale • Inefficient IT Operations • Lack of central planning • Lack of policy/process documentation • Minimal governance and execution strategy • Security failures • System Integration • Restructure IT • Enable The Future

9. The benefits of restructuring IT outweigh the costs • Increased cohesiveness of organization • Better IT alignment with long-term strategic goals • Decreased TCO of IT environment • Improved service • Increased security • Benefits Restructuring IT • Higher short-term costs • Resistance of employees to change • Costs • System Integration • Restructure IT • Enable The Future

10. Moving to integrated systems and restructuring IT will help enable future growth plans for Mobile Music • Value From Proposal • Allows for the capability to support existing activities as well as future plans • Better alignment with corporate strategy • Increase long-term profitability • Ability to quickly adapt to changing business strategy • Future Plans • Expand to shopping malls, grocery stores, and fast-food establishments • Gaming • Dating Services • System Integration • Restructure IT • Enable The Future

11. Implementation Timeline • Y1 Q1 • Y1 Q2 • Y1 Q3 • Y1 Q4 • Y2 Q1 • Y2 Q2 • Y2 Q3 • Y2 Q4 Planning Analysis Design • System Integration Implementation Restructure Planning Employee Restructuring Organizational Restructuring • IT Restructuring Facilities Evaluating & Adjusting Legal Issues / Issues Management Systems go live

12. Financial Analysis 1. Alford, T., & Morton, G. (n.d.). The Economics of Cloud Computing: Addressing the Benefits of Infrastructure in the Cloud. Booz Allen Hamilton. Retrieved February 14, 2013, from www.boozallen.com/media/file/Economics-of-Cloud-Computing.pdf 2. Troni, F., Margevicius, M. A., & Silver, M. A. (2010, November 16). Desktop Total Cost of Ownership: 2011 Update. Gartner.com. Retrieved February 15, 2013, from my.gartner.com/portal/server.pt?open=512&objID=260&mode=2&PageID=3460702&resId=1470342 3. The True Cost of an Employee. (n.d.). Legal Northwest. Retrieved February 14, 2013, from http://www.legalnw.com/index.php?option=com_content&view=article&id=81&Itemid=74# 4. Career Builder Compensation Portal. (n.d.). Career Builder. Retrieved February 14, 2013, from bdm.careerbuilder.com/bdio.aspx?bdmlocrd=OJG2KIN6r5Gf0R%2b55db%2bRKJni7tQd2OU%2bbAl%2f6QMOUMsx2KuKsxMNg%3d%3d&TS=bMY3ftYQiHs= 5. Kaupp, G. (2012, September 5). How much does a typical ERP implementation cost? | ERP Software Blog. ERP Software Blog. Retrieved February 15, 2013, from http://www.erpsoftwareblog.com/2012/09/how-much-does-a-typical-erp-implementation-cost/

13. Probability Probability Probability Probability Impact Impact Impact Impact Risks & Mitigations X X X X

14. Conclusion By integrating systems, implementing scalable technology, and improving IT operations & controls, MobileMusic will have the capability to enable tomorrow's innovations. Integrate Systems Implement Scalable Technology Improve IT Operations & Controls Enable Future Business Strategies Solution Recap

15. Appendices Why Not Refresh Logistics? Why Cloud Infrastructure? IT Security Strategy Value of Cloud-Based Infrastructure (IAAS) Desktop Total Cost of Ownership IT Outsourcing Vendor Selection Criteria Outsourcing Help Desk to India

16. Why Not Refresh Logistics? Back to Appendices • Current vendor also supplies kiosks • Proprietary • Technically solid other than system integration issues • Possibility to be fixed by integration with new systems • If unable to integrate, we will explore other options

17. Why Cloud Infrastructure? Back to Appendices Quick Deployment Lower upfront costs Virtualization provides scalability Easier to manage Easier backup and recovery Automatic software integration Easy access to systems and information

18. IT Security Strategy Back to Appendices Action Steps for Improving IT Security. (n.d.). Cisco Systems. Retrieved February 15, 2013, from https://docs.google.com/viewer?a=v&q=cache:Utrgn0Ck93wJ:www.cisco.com/warp/public/cc/so/neso/sqso/roi5_wp.pdf+&hl=en&gl=us&pid=bl&srcid=ADGEESjR7Vh2qel80u8KETgfxcmPqH gLQbx7xRWpGToV1I3KjiTZRFaQmsp-gDvQsHRieq4W1xwqIOy6PT8SbnTXfFdD99gZh6cIuU6pr6G3U5K1qxLpxHG Assess risks and determine needs Establish central management focus Form a central group to carry out IT security strategy Implement appropriate policies and related controls Promote awareness Monitor and evaluate policy and control effectiveness

19. Value of Cloud-Based Infrastructure (IAAS) Back to Appendices Alford, T., & Morton, G. (n.d.). The Economics of Cloud Computing: Addressing the Benefits of Infrastructure in the Cloud. Booz Allen Hamilton. Retrieved February 14, 2013, from www.boozallen.com/media/file/Economics-of-Cloud-Computing.pdf

20. Desktop Total Cost of Ownership Decreased Hardware, support, security, and end user costs Increased Desktop Management Spending Lower Total Cost of Ownership (TCO) Back to Appendices Troni, F., Margevicius, M. A., & Silver, M. A. (2010, November 16). Desktop Total Cost of Ownership: 2011 Update. Gartner.com. Retrieved February 15, 2013, from my.gartner.com/portal/server.pt?open=512&objID=260&mode=2&PageID=3460702&resId=1470342

21. IT Outsourcing Vendor Selection Criteria Back to Appendices

22. Outsourcing Help Desk to India • Long term price competitiveness • Focus on core business • Government support • Large pool of educated English speakers • 24/7 help desk coverage • Reliable communication facilities • Benefits India Outsourcing • Cultural barriers • Potential lack of quality • Time lost managing project • Political instability • Costs Back to Appendices