Upgrading to Enterprise Edition The Process, Challenge and Benefits

1. Upgrading to Enterprise EditionThe Process, Challenge and Benefits Anton Chilton Senior Vice President – QAD Global Services Midwest User Group

2. How do you feel when you think about your next upgrade?

3. How do you feel when you think about upgrading to Enterprise Edition?

4. Upgrading to Enterprise Edition Discussion Challenges Analysis Value Process & Tools

5. Analysis

6. Upgrading to Enterprise Edition - Analysis How often would you like to upgrade? Source: QAD Customer Survey – Jan 2013

7. Upgrading to Enterprise Edition - Analysis Desire vs. Reality 80% 45% Customers who desire to upgrade within a maximum 6 year cycle Customers who achieve an upgrade within a maximum 6 year cycle

8. 35% of customers are not hitting their upgrade target!

9. Upgrading to Enterprise Edition - Analysis What are your upgrade plans? Source: QAD Customer Survey – Jan 2013

10. 35% of customers have no firm plans for an upgrade

11. Upgrading to Enterprise Edition - Analysis What are the barriers to upgrading? Source: QAD Customer Survey – Jan 2013

12. Upgrading to Enterprise Edition - Analysis Analysis Conclusions Value & Benefit Cost Disruption Risk

13. Challenges

14. Upgrading to Enterprise Edition - Challenges Delay – Escalating Degree of Difficulty Cholatse Khumbu Nepal 21,129 ft. High Mt Whitney California USA 14,505 ft. Degree of Difficulty Snowdon Wales UK 3,560 ft. Low Time since last upgrade

15. Upgrading to Enterprise Edition - Challenges Delay – Diminishing Value High Impact Low Time since last upgrade

16. Upgrading to Enterprise Edition – Challenges Cost & Risk Drivers User Frustration integrations Customizations Support Workarounds

17. Upgrading to Enterprise Edition - Challenges Delay – Growing Problems High Increasing Cost & Risk Impact Widening Gap Lost Opportunities Low Time since last upgrade

18. Upgrading to Enterprise Edition - Challenges Tipping the Balance Value & Benefit Cost Disruption Risk

19. Value

20. Upgrading to Enterprise Edition - Value Potential Value Drivers IT Strategy Process Improvement Business Change Application

21. Upgrading to Enterprise Edition - Value Supporting Business Change • Strategic Change • Business Rationalization • Organizational Redesign • Acquisition • Divestiture IT Strategy Process Improvement Business Change Application

22. Upgrading to Enterprise Edition - Value Driving Process Improvement • Best Practice Processes • KPI Improvement • Customer Service • Supply Chain • Production • Finance • Compliance IT Strategy Process Improvement Business Change Application

23. Upgrading to Enterprise Edition - Value Improving IT Effectiveness • Improving Total Cost of Ownership • End User Satisfaction • Lowering Support Cost • Reducing Customizations • Version/Instance Consolidation IT Strategy Process Improvement Business Change Application

24. Upgrading to Enterprise Edition - Value Application Benefits • New Features • Access to Information • Visibility & Control • Process Alignment • Reduce 3rd Party Footprint • Reduce Workarounds IT Strategy Process Improvement Business Change Application

25. Upgrading to Enterprise Edition - Value Measuring Benefits

26. Upgrading to Enterprise Edition - Value Customer Specific Analysis 41 Customers 96 Specific Benefits

27. Upgrading to Enterprise Edition - Value Benefits – Areas Identified by Customers

28. Upgrading to Enterprise Edition - Value Customer Benefits – IT Effectiveness

29. Upgrading to Enterprise Edition - Value Customer Benefits – Financial Compliance

30. Upgrading to Enterprise Edition - Value Customer Benefits – Manufacturing

31. Upgrading to Enterprise Edition - Value Why Enterprise Edition? • Addresses global requirements • Scalable • Ability to adapt to business changes • Controls and Audit capabilities • Role based security • Segregation of duties • QAD’s “Go To” platform

32. Upgrading to Enterprise Edition - Value Enterprise Edition - Specific Analysis >150 Customers globally Multi Nationals National Companies SME’s

33. Upgrading to Enterprise Edition - Value Process Improvements

34. Upgrading to Enterprise Edition - Value Process Improvements

35. Upgrading to Enterprise Edition - Value End-Users

36. Upgrading to Enterprise Edition - Value Cost

37. Upgrading to Enterprise Edition - Value Technical

38. Process & Tools

39. Upgrading to Enterprise Edition – Process & Tools EE vs. SE • EE upgrade ~20-25% additional effort • Depending upon upgrade method • Delta largely based on • ‘new’ process set up • Training in new processes

40. Upgrading to Enterprise Edition – Process & Tools EE vs. SE Process Changes • General Ledger • Journal Entries • Period End • Inter & Cross-Company • Open Items • Mirror Accounting & Layers • Review Transactions • Consolidations • Manage Budgets • Year End • Cash • Use Banking • Flow & Petty Cash • Set Up • Finance • Global Tax Management • Customer • Supplier • Accounts Payable • Process Supplier Invoice • Process Payables • Accounts Receivable • Invoicing • Process Receivables • Collect Receivables • Security

41. Upgrading to Enterprise Edition – Process & Tools Optional Process Changes • GL – Periodic Costs & Revaluation • Process Sales Orders • Up-Sell/Cross-Sell • Correction Invoices • Scrap • Subcontracting • Audit Trails

42. Upgrading to Enterprise Edition – Process & Tools Approach Alternatives • Technical • Re-Alignment • Hybrid • Re-Implementation

43. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives - Technical • Like for like • Perceived to be quickest and easiest • Data quality influences effort/risk • No change in: • Business Processes • Functionality

44. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives - Technical

45. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives - Technical • Pros • Transaction history available • Shortest timeframe, lowest cost (with same financials) • Opportunity to reduce customizations • Cons • Difficulty with SE  EE conversion programs • Difficult to convert older database • Data structures may limit EE financial functionality • Little opportunity for data cleansing • Limited benefits

46. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives – Re-Alignment • Reload rather than convert data • Opportunity to cleanse data • Facilitates EE data structures • Recommended for upgrades to EE • No change in: • Business Processes • Functionality Other than Enterprise Financials

47. Upgrading to Enterprise Edition – Process & Tools Re-Alignment Major Activities • Transaction History • Could be stored in historical database or BI solution • Alternative is to develop optional load process Planning Extract Data Delta &EE Training Technical Training Test Cutover Go Live Reload Data Data Cleansing Data alignment for EE Data

48. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives – Re-Alignment

49. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives – Re-Alignment • Pros • Opportunity to cleanse/restructure data • Enables full EE capabilities • Reasonable time and cost • Easier to align data • Cons • Historical data not migrated • Data cleansing may be time consuming

50. Upgrading to Enterprise Edition – Process & Tools Upgrade Alternatives - Hybrid • Based on Technical or Re-Alignment • Includes: • Process Improvement • New modules or functionality • Can be single or multiple projects