© 2007 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

HP ROI Programfor Software PartnersOverview (Draft)

Prepared: Eberhard Schade (additional content in notes page)Date: September 2007

Agenda• Introduction & Background on HP’s ROI

Approach• Expanding HP ROI Program to Software

Partners• How to become a Business Value

Consultant

The Shift to Business Technology• Past – IT driven by

operational costs or cost advantages

• The new reality: IT powers the business

• IT risks are now business risks

• IT opportunities are now business opportunities

The Need to Quantify Value• Role of the CIO is changing• Measured on Business

outcomes• IT is no longer a cost• IT is an investment• Quantifying IT value means

looking for the benefits it creates for the business

When is ROI appropriate?• As part of a business case• Assess value of existing IT

investments• Establish an ROI baseline to measure

progress• Demonstrate alignment of IT

investments with customer’s business goals

HP’s ROI ApproachCustomer Research

• Understand how customers measure value

• Capture customer value into case studies

• Use knowledge to develop ROI process and methodology

• Engage variety of customers across different verticals

• Create ROI framework and process

• Package knowledge into appropriate tools

Research Goals Results

Value PropositionsAlign

InitiativesChallenges(Anecdotes)

InfrastructureBusinessApplications

Discover

Benefit Models(ROI Scenarios)Model Demand / Cost

Models

Customer Data

ROIResult

Deliver

Business Case Package

HP’s ROI Model

Attributes of HP ROI process• Credible data• Systematic, non-

intrusive approach• Traceability• Create a baseline• Promote your customer

sponsor’s success

Cumulative cost-benefit summary

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Business ValueCost

InitiativesChallenges / Pain ( Anecdotes)

InfrastructureApplications

DISCOVER InitiativesChallenges / Pain ( Anecdotes)

InfrastructureApplications

DISCOVER

Benefit Models(ROI Scenarios)MODEL Demand / Cost

ModelsBenefit Models(ROI Scenarios)MODEL Demand / Cost

Models

Customer Data

ROIResult

DELIVER

Business Case Package

Customer Data

ROIResult

DELIVER

Business Case Package

ALIGN Value Propositions

ALIGN Value Propositions

ALIGN Value Propositions

“We now have the justification and process to stand confidently behind our budget requests.”

Todd Katz, Senior Manager of IT Architecture, Sprint-Nextel

“HP BTO Solutions have helped us improve the efficiency and effectiveness of our Business Process Quality and Management and Performance Optimization Management processes, which have resulted in significant cost avoidance and revenue savings. Over the course of three years, we estimate our total savings to be between $9 million and $11 million.”

Dick LeFave, Senior Vice President and CIO, Sprint -Nextel Communications

Customer feedback“HP's systematic approach engaged both business and IT stakeholders in an eye-opening, give-and-take ROI Dialogue. The result is a thoughtful assessment, with credible results.”

John Novak, CIO La Quinta

Characteristics of good ROI program• ROI is tightly integrated with the vendor's value proposition.• ROI citations are abundant.• Demonstrations are driven by ROI needs.• Executive presentations are filled with thoughtful and provable

ROI.• Vendor’s web sites abound with ROI information and

capabilities.• Appropriately designed customizable ROI tools are offered to

buyers.• Sales team can help clients with credible, customized ROI

analyses.• ROI claims are carefully and accurately described and

supported.• Customer-endorsed ROI is plentiful and well explained.• Sales team has good answers to business value questions

Source: Making Technology Investment Profitable; by Jack Keen; chapter 12

© 2007 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Expanding HP ROI Program to Partners

HP Partner ROI Program

Exclusive Partnership betweenHP and qualified Partners

The Program

Accelerate mutual success by transferring knowledge to help partners accelerate the sale of their HP Software-based solutions

The Goal

HP ROI Partner Program OverviewPredictable program available

to qualified HP Software Partners:

• Engage−Partner Profiling and qualification

• Enable−Training as ROI Practitioner

and/or Business Value Consultant−Member of Value Space Virtual

Community• Evaluate

−Review and assess success of program with individual partners

Key Benefits of Being an HP ROI Program Partner

Partners have exclusive access to:• Business Value Consultant

Training• ROI Analyst Tool by Alinean• ROI model templates for HP

Software centers• Business Value Space (Virtual

Community of Business Value Consultants) • Collaterals – white papers, case

studies and sales material for value selling

Immediate Benefits for HP Software Partner

• Quantifying the unique value of the opportunity and HP software solutions

• Reduce discounting and increase deal size

• Business Value Consultant certification as a differentiator in recognizing staff for promotions

• Integrate ROI into the Partner’s sales process

• Co-branded case studies for industry recognition and thought leadership

Criteria to become an HP ROI Program Partner?

A. Pursue Business Value Consulting opportunities with your clients

B. Commitment to time and resource investment

C. Work seamless with HP Sales force on Value Consulting

HP Certified and Trained to deliver• HP Certified Professionals

are at the core of the HP’s ROI Partner program strategy

• Having certified professionals on staff is mandatory for ROI Program Partner membership

• HP ROI Program Partners have access to a comprehensive range of training content via HP Software University

HP’s commitment to HP ROI Program Partners• HP provides

−ROI assets (methodology, tools, collaterals)

−Training (JITs, webinars, f2f, certification)−Support (HP Software Partner website,

virtual community )

• Partner provides−Qualified staff −ROI case study material−Metrics on ROI asset usage

and success rates

Trusted for Business.

• ROI Program Partners guarantee an unparalleled combination of expertise, proximity and customized solutions.

• ROI Program Partners can provide timely, accurate ROI Analysis assessment of customers’ IT investments to meet business needs.

• ROI Program Partners are certified and recommended by HP.

• ROI Program Partners focus on HP values of loyalty and un-compromising commitment to customers.

End customer positioning for HP ROI Program Partners

© 2007 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

How to become a Business Value Consultant?

HP ROI Program SpecializationsThe specialization offers Business Value Consultant training in combination with each of the HP Software Centers

HP Certified Professional ProgramSpecialization in Business Value Consultancy differentiates youThe HP Certified Professional

Program offers you the ability to quickly recoup your investment through increased sales and service opportunities. This program offers the „certification resources“ required to become a Business Value Consultant and to be eligble to exhibit the „Trusted Business Partner“ insigna.

HP Certified Business Value Consultant

CRITERIA• Accredited member of the

HP ROI Partner ProgramSuccessfully completed the

following certifications:• HP Business Value

Consultant• HP Software Centers (min.

of one)Refresher• Once a year review

completed ROI engagements with a HP BVC to determine level of refresher courses

HP Certified Business Value Consultant Partner For Value !

Benefits:

• Use of Trusted Business Partner Insigna

• Member of the WW Virtual Community on Business Value Consultancy

•Use of HP ROI-Analysis templates for HP Software Centers

•Access to Alinean ROI-Analyst tool

Next steps to become an HP ROI Program Partner?A. Complete HP’s Partner

Profiling QuestionnaireB. Sign up for Silver or Gold

level training and certification

C. Complete HP ROI training curriculum and pass the certification test

D. Attain a minimum of one additional HP Sales or Technical Certification

HP ROI Program PartnerSummary

•Competitive benefits•Drives top and bottom line growth

•Ability to specialize and differentiate

•Demonstrated expertise through certification

2008 Certified ROI Program Partner

Trusted Business Partner. Qualified to deliver.

A ‘Win-Win’ Relationship • For Partner

A. Knowledge transfer• Leverage HP’s first-hand customer research and methodology / tool investments

B. Enables value selling • Larger deals• Shorter sales cycles• Reduced discounting

C. Profitable revenue growth• Differentiation / competitive advantage

D. Industry recognition• Joint case studies (Customer ROI Spotlights)

E. Staff professional development• Excellent learning opportunity− Quantifies IT contributions to business− Articulates IT alignment with business goals − Valuable publicity, positioning customer as technology leader− Validates decision to select HP− Benchmark report from IDC

• For HP − Our Partner’s success is our success!

Different Customers …. Different needs

Engagement Path 1 Engagement Path 2Level of understanding of your customers business technology problem

With path 1 your customer has a clear understanding of the benefits and needs a limited (first pass ROI analysis) to demonstrate to his management the results of a ROI Analysis.

Path 2 represents a consultative approach for customers with more demanding business case requirements. As a certified BVC you will be able help your customer articulate the value map and develop a customized ROI model and business case presentation

Alinean Tool ROI Calculator ROI AnalystLevel of training Basic IntermediateROI Program Level

Silver Gold

Table - Engagement paths for business case development

We recognize that when it comes to building business cases customers have different needs. To accommodate these varying needs we have created two different ROI engagement paths