Mark Chmielewski October 8, 2013 EE 1001

1. Mark Chmielewski October 8, 2013 EE 1001 www.saturnsys.com

2. Presentation Goals • Company Background • Business Operations • Software & Systems Engineering • Future Growth Plans • Parting Thoughts www.saturnsys.com

3. Location • Duluth – 314 W. Superior St. – Torrey Bldg • Grand Rapids, MN www.saturnsys.com

4. Saturn Systems - Foundations • UMD Computer Engineering Program • Now ECE • Keith Erickson and Mark Chmielewski – 1987 • No jobs in Duluth and Few in MN • Keith to Santa Barbara, CA • Mark to Mountain View, CA and New York • Move back to Duluth – 1990, 92 • Still No Jobs • Started Consulting firms • Merged in 1997 www.saturnsys.com

5. Saturn Systems History • Founded in 1990 in Duluth, Minnesota • Origins in Device Control and Integration, Detailed Engineering • Since 2000, Focus Changed to Enterprise Application Development • 25% Growth Annually Since 2006 • Recognized in the Inc. 5000 for 2011, 2012 www.saturnsys.com

6. Rural Outsourcing • U.S. alternative to Off-Shoring • Saturn Systems Model • Central U.S. Location • High Skill Niche (Degreed Engineers) • Minnesota/Duluth – Lower Overhead Costs • Lower Employee Turnover www.saturnsys.com

7. Competencies/Skills • Software Lifecycle Agile Process Focus • Experts at Working Over Distance • Technology Expertise • Microsoft – C#, ASP.NET, SQL Server, C++ • Java Technologies • Linux, Apache, MySQL, PHP (LAMP) • IOS, Android Mobile www.saturnsys.com

8. Staff Profile • Management Team • MSEE, ECE, CS, Math, Accounting degrees • Duluth Technical Staff • CS, ECE, related 4 year degrees • Project Managers, Technical Leads, Senior Software Engineers, Software Engineers, Programmers, QA Testers • Telecommuters • Saturn employees, working from their homes in outstate areas • Grand Rapids office • Currently 4 software developers • Contractors • Business Analysts, Engineers and Programmers www.saturnsys.com

9. Revenue Generation • Project Based Contracts • Time & Materials • Starts with an Idea….Ends with an Application • Staff Augmentation • We plug into client’s existing Development Teams • Make Money by Managing our “Bench” www.saturnsys.com

10. Business Costs • Personnel • Direct Labor (billable staff) • Benefits (Health, Dental, Vacation, Perks) • Management and administrative • Non-billable (i.e. “bench”) time • Sales & Marketing • Billboards, Public Radio, Google Adwords • Recruiting • CareerBuilder, newspapers, recruiters. • Infrastructure • IT • Rent • Taxes www.saturnsys.com

11. Business Activities • Operations & Scheduling • Marketing & Business Development • Recruiting • Financial (budgeting, taxes, accounting, forecasting) www.saturnsys.com

12. Technical Activities • Writing Proposals and Estimates • Writing Functional Specifications • System Architecture & Design • Software Development • Device control & protocols, web applications, desktop applications, database design and programming • Quality Assurance Testing • Deployment and integration • Ongoing support and maintenance www.saturnsys.com

13. Current Technologies • Microsoft .NET, ASP.Net, C#, SQL Server • Web Apps, AJAX, JavaScript, HTML5 • Desktop Apps • SQL Server Database • Java technologies • Mostly Open Source • Oracle, MySQL • Android and IOS Mobile www.saturnsys.com

14. Marketing / Sales • Multiple Marketing Channels – New Customers • Minnesota Public Radio • Freeway Billboards • Organic Search • Google Adwords • Tradeshows • Referrals • Existing Customers • Familiarity with Quality Products, Processes • Match Saturn Capabilities with Customer Needs www.saturnsys.com

15. Software Development Process/Lifecycle • Agile Focused Approach • Marketing/Sales • Contracts • Agile Project Plan • Scoping/Specific Requirements • Staffing • Development / QA • Deployment • Testing • Maintenance www.saturnsys.com

16. Agile Methodology • Individuals and interactions - team interactions likeco-locationand mentoringare key. • Working software – builds confidence and provides a baseline for discussion. • Customer collaboration – requirements cannot be fully collected at the beginning of the software development cycle, therefore continuous customer or stakeholder involvement is very important. • Responding to change – quick responses to change and continuous refinement. www.saturnsys.com

17. Agile – Engineering Perspective www.saturnsys.com

18. Development • Co-Location of Teams • Mentoring of less experienced engineers • Deployment of Sprint • Test Servers / Environment • QA Test Sprint • Internal QA • Client QA • Rework (if necessary) • Adjust Agile Project Plan if Necessary • Tackle Next Sprint www.saturnsys.com

19. The Future View • Companies Will Continue to Invest in Software Technologies to Replace Increasingly Costly Employees • We Expect Continued Rapid Growth • Expand Marketing Budgets and Channels • Expand and Refine Recruiting Channels www.saturnsys.com

20. What This Means For You • Very Bright Employment Outlook • Companies will continue to invest in hardware and software technologies to reduce costs and increase profits • Reduction in Overhead employees • Engineers Will be Scarce and Coveted • Very Challenging Degrees • Many high school grads are not prepared for the challenge • Offshore Competition has equalized www.saturnsys.com

21. Parting Thoughts • Commitment to Your Degree Program • Study First. Study Hard. • Those with the best record get the best jobs • Work For Companies Where You are the Product • Revenue Employee vs. Overhead • Tech and Engineering Companies • Don’t be Afraid to Take Risks • Move to Another Region www.saturnsys.com

22. Questions? www.saturnsys.com