Top 10 Considerations for Upgrading CA User Group Meeting

1. Top 10 Considerations for UpgradingCA User Group Meeting Romeo Sequeira

2. Why Upgrade?

3. Periodic Application Refresh Proactive Application Management Regular Applications Value Reviews Competitive Opportunity Practical Competitive Optimum Status Quo Go Live Competitiveness Competitive Erosion Time By harnessing the power of new technology, you can achieve competitive advantage

4. Can customizations be reduced ? Can upgrade provide new business value? Productivity Cost Upgrade Cost Drivers Business justification examines the overall impact to your organization’s performance

5. Benefits of Upgrading Take advantage of new functionality Reduce customizations Reduce operational costs Respond to globalization and consolidation needs Increase user productivity Ensure compliance Optimize application and system performance Drive lean principles throughout the organization

6. Value of Upgrading According to Aberdeen Group, Best-in-Class manufacturing companies are 35% more likely than Laggard companies to operate on a current version of ERP.

7. QAD Enterprise Applications 2009

8. global platform Munich domains Shared Services Sarbanes-Oxley Compliance Enterprise Integration Flexible global Deployment Common Data Global Governance Interoperability & Integration Washington Tokyo Rio de Janeiro Sydney

9. total enterprise capability Enterprise Resource Planning Enterprise Asset Management Product Lifecycle Management Demand ManagementCustomer Relationship Management Service and Support Management Transportation Management Product Information Management

10. human engineering .NET User Interface Data AccessIntegration Consistency Roles Process

11. Recent Enhancements, New Modules 2007 MANUFACTURING EXECUTION WORKBENCH JUST-IN-TIME SEQUENCING TRANSPORTATION MANAGEMENT DESKTOP SHIPPING SALES FORCE AUTOMATION .NET UI 2007 MARKETING AUTOMATION QAD ENTERPRISE APPLICATIONS 2007

12. Recent Enhancements, New Modules 2008 GLOBAL ENTERPRISE EDITION JUST-IN-TIME SEQUENCING ENHANCED CONTROLS MOBILE FIELD SERVICE PRODUCTION SCHEDULER WORKBENCH CONFIGURATOR .NET UI 2007 DEMAND MANAGEMENT DISTRIBUTED ORDER MANAGEMENT

13. QAD Enterprise Applications Development March 2007 September 2007 March 2008 September 2008 April 2009 2002 2005 MFG/PROeB2 MFG/PROeB2.1 QAD2007 QAD 2007.1 QAD2008 EE QAD 2008 SE QAD 2008.1 EE QAD2008.1 SE QAD2009 EEQAD2009 SE QAD Standard Financials Shared Services Domains QAD Enterprise Financials (EF) QAD Internationalizations

14. Two versions of QAD 2009 • QAD 2009 Enterprise Edition (EE) • Includes Enterprise Financials • Also includes enhancements in other areas of Enterprise Applications, including Manufacturing & Distribution • New UI Shell version • QAD 2009 Standard Edition (SE) • Includes Standard Financials (as in eB2.1) • Equals QAD 2007.1 plus Service Packs • New UI Shell version • Differences in add-on availability and versions of add-ons

15. Upgrade Considerations

16. Top 10 Considerations for an Upgrade • Technical Considerations • Business Considerations • Security Considerations • Implementation Considerations • Customization Considerations

17. Top 10 Considerations for an Upgrade (contd.) • Financial / Regulatory Considerations • Standardization Considerations • Reporting Considerations • Training Considerations • Tool Considerations

18. 1. Technical Considerations 18

19. Technical Considerations • Architectural • Number of databases • Number of domains • Options • Single database with multiple domains • Multiple databases with multiple domains • Single database with single domain

20. Technical Considerations • Database and domains considerations • Strategy for points of failure (single or multiple) • Database maintenance or shutdowns strategy • Language considerations in the same database • How many sites are you willing to upgrade at once • Time zone considerations • What level of separation or granularity do you require

21. Technical Considerations • Hardware considerations • Centralized, decentralized or hosted • Number of servers • Location of servers • Server size and capacity • Will existing infrastructure support the envisioned environments

22. Technical Considerations • Data communication considerations • Network bandwidth • Network latency • Bridges between ISP providers • What UI’s will be running • What other applications will be running over the lines (telecom, radio frequency, email systems, and voice)

23. Technical Considerations • Business Continuity strategy • Up time requirements and support strategy • Backup strategy • Fail over strategy • Disaster Recovery strategy

24. Technical Considerations Presentation Exposed Services QXtend EDI Business Services Data Access Platforms 24

25. 2. Business Considerations 25

26. Business Considerations • Is there a clear understanding of business drivers / objectives and reporting requirements (KPIs / Metrics) at all levels? • Measure baseline metrics before upgrade • What is the level of local autonomy versus central control? • Is there an understanding of internal supply chain requirements and flow? • Degree of change management or managing change that will be required • Is there a clear definition and understanding regarding shared services requirements ?

27. Business Considerations • The amount of business process reengineering that is envisioned to support initiatives such as Lean, Shared services, etc. • Customer Service Applications • Support Operations • Accounts Receivable • Accounts Payable

28. Business Considerations • Is there an understanding of what new functionality is available or net change from legacy version • Will there be new features and functionality the business will be taking advantage • Enhanced security • CRM • Lean manufacturing • PIM • Production schedulers • EAM • DOM or CSS • Configurator • Warehousing

29. 3. Security Considerations 29

30. Segregation of Duties (SOD) Objective Limit the duties of individuals to certain areas of responsibility Minimize the ability of any individual to misappropriate company property – without collusion between individuals Specify roles that are conflicting from a segregation of duties perspective Identify users that have any access rights that are part of conflicting roles User Conflicts Role A Access right Access right …. Role B Access right Access right ….

31. Segregation of Duties (SOD) Partition all activities (menu options) to only one category Define sets of categories that are mutually exclusive No individual can have access privileges to functions that are defined as being mutually exclusive Establish rules and verify no violations Rule 1: Activities granted to a role must belong to compatible SOD categories Rule 2: User roles must have compatible SOD categories

32. Role Based Security All application security in QAD 2009 EE is role based Roles are defined for each discrete area of the business using Segregation of Duties concepts Roles are linked to menu functions using Role Permissions Users are assigned access to Domains and Entities Users are assigned to roles for Entities and Domains

33. Business Considerations Define Roles and Permissions Segregation of Duties: Define conflicting roles User Interface depending on Role

34. Role Membership Users will typically be assigned more than one role Users may have different roles in different Domains/Entities

35. Default Roles and Permissions Default set of pre-defined roles and permissions supplied with QAD 2009 EE Around 80 roles are already defined Roles are defined using Segregation of Duties Principles Separate role for PO creation and PO receipt Separate roles for supplier creation, supplier invoice recording and supplier payments Separate roles for inquiry access by functional area Tools provided for the automatic loading and editing of default roles and permissions XML integration already available

36. 4. Implementation Considerations 36

37. Implementation Considerations • Is this project considered a new implementation, technical upgrade or is it a reimplementation • Will a business process assessment (BPA) be required • Will business process reengineering (BPR) be required • Is this project a “Lilly pad” for another upgrade – If so how can it be positioned for the next upgrade

38. Upgrade Scenarios Technical Migration with data conversion Customization Data Conversion Small Process Changes Optimization Technical Migration without data conversion Optimization Conversion Data Load Small Process Changes Re-Implementation Re-define Business Processes Non-Intrusive Customizations Data Load 38

39. Centralize/Standardize First QAD 2007QAD 2008 Standard Edition QAD MFG/PRO 8.6, 9.0, eB, eB2 QAD 2009 Enterprise Edition ERP Database Plant 1 ERP Database Plant 1 ERP Database Plant 1, 2 and 3 ERP Database Plant 1, 2 and 3 ERP Database Plant 2 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 3 39

40. Migrate first to QAD 2009 Enterprise Edition, than Centralize and Standardize QAD MFG/PRO 8.6, 9.0, eB, eB2 QAD 2009 Enterprise Edition ERP Database Plant 1 ERP Database Plant 1 ERP Database Plant 1, 2 and 3 ERP Database Plant 2 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 3 40

41. Q-Advantage Implementation Methodology Plan Design & Configure Test & Accept Deploy & Evolve Implement Manage Complete Process & Technical Design Complete Final Data Load Kick-off Project Train End Users Agree on Business Process Solution Design Train Core Team Complete Data Validation & Functional Testing Execute Cut-Over Plan Agree on Project Controls Build System, Scripts & User Procedures & Convert Data Complete System & Performance Testing Post-Launch Evaluation Conduct Stakeholder Validation Session Manage Applications & Support Develop, Deliver & Test Custom Solution Agree on Project Plan & Resources Determine Core Model / Rollout Requirements Develop Cut-Over & Deployment Strategy Validate / Refine Solution via CRP Cycles Adjust Core Model & Rollout Plan Communication & Change Management Program & Project Management 41

42. 5. Customization Considerations 42

43. Customization Considerations • The number and types of customizations to the legacy system • Is there a definitive list of customizations • Is there an understanding of who owns each customization • Is there an understanding of what each customization does. • A go forward review and migration strategy for all customization will be required • Remember - every customization in a multi domained database will have to be domainized

44. Customization Considerations • API’s and interfaces to 3rd party software • Needs to be fully identified and go forward strategy developed. • Is it within scope to update 3rd party software solutions

45. Customization Considerations CUSTOMIZATIONS 45

46. Customization Considerations Maintenance Reports CUSTOMIZATIONS 46

47. Customization Considerations Customizations Not Used Maintenance Reports CUSTOMIZATIONS 47

48. Customization Considerations QAD Enterprise Applications 2009 EE or SE Customizations Not Used Maintenance Reports CUSTOMIZATIONS 48

49. Customization Considerations QAD Enterprise Applications 2009 EE or SE QAD.NET User Interface Customizations Not Used Maintenance Reports CUSTOMIZATIONS 49

50. Customization Considerations QAD Enterprise Applications 2009 EE or SE ICT QAD.NET User Interface Reports CUSTOMIZATIONS 50