Value Chain

Supplier/Vendor Facing Systems

Optimize relationships w/ Business Partners

Reduce Cost of Goods Sold

Internal Facing Systems

Facilitate internal operations

Increase productivity

Customer Facing Systems

Optimize customer relationships

Increase services effectiveness

Supply Chain Management

(SCM)

Customer Relationship Management

(CRM)

InternetIntranetExtranet

PDA

Customer

Customer

Customer

InternetIntranetExtranet

PDA

Supplier

Supplier

Supplier

The Company

Source: Extended Enterprise Applications, CherryTree & Co, January 2000

Enterprise Resource Planning (ERP)Backbone

The eBusiness Model

Why Handheld Computing mobilizes enterprise applications?

Pen Computing Magazine February, 2000

“Enterprise Technology for the Palm Computing Platform”

“Clearly, handheld computing is a

significant emerging technology that will

empower the forward-looking corporation

with the competitive edge necessary to thrive in today’s marketplace.”

The right information in the hands of the right people

at the right time and location.

$=

Benefits of Handheld Solutions for the Mobile worker

In the last 18 months, handheld devices have stepped up from gadget status to real tools for collecting, using and accessing mission-critical data. This tiny platform

now has the potential to be a cornerstone of the organizational network outside the walls of the

corporate enterprise.”Civic.com magazine April, 2000. “Governing by Hand: Little Devices with Big Potential are Changing the way Governments Operate”

Old Paradigm New Paradigm

Organizers/Planners

Gadgets

Toys

Computers

Indispensable Business Tools

Robust Platform

Market Growth

0

5,000,000

10,000,000

15,000,000

20,000,000

1998 1999 2000 2001 2002 2003

Predicted Growth of Handheld Computer Market

Rest of the WorldAsia/PacificJapan

W. Europe

North America

Units Shipped

Source: Dataquest, July 1999, Handheld Computer Forecast

36% + Growth

Mobile Computing...The Next Wave

Mainframe Computing

Dumb terminal access to centralized applications and data

Client/Server Computing

PC/“fat client” access to decentralized applications and data

Web-based Computing

“Thin client” browser access to applications and data from your desk or office

Mobile Computing

Handheld/“thin client” browser access and communication to applications and data from anywhere

1970 1990 1997 20002. Market Opportunity2. Market Opportunity

Meta Group “Entering the Mobile Millennium” 2/14/00

Entering the “Mobile Millennium”

• In 3-5 years...

– move to mobile devices will require IT infrastructure improvements

– IT Groups will proactively establish mobile/pervasive computing architectures, standards, connectivity, and security services and remote management

– 75% of workers will be mobile 25% of the time

– workers will have 3-4 different devices used to access multiple applications

The Importance of Mobility

• Breaking the tethered, desk-bound model

• Extending eBusiness solutions to mobile workers

– Wired solutions

– Wireless solutions

• Mobilizing eBusiness empowers

– Partners/Suppliers

– Internal Employees

– Customers

The Result… Improved financial performance Stronger competitive advantage

Value Chain

Supplier/Vendor Facing Systems

Optimize relationships w/ Business Partners

Reduce Cost of Goods Sold

Internal Facing Systems

Facilitate internal operations

Increase productivity

Customer Facing Systems

Optimize customer relationships

Increase services effectiveness

Supply Chain Management

(SCM)

Customer Relationship Management

(CRM)

InternetIntranetExtranet

PDA

Customer

Customer

Customer

InternetIntranetExtranet

PDA

Supplier

Supplier

Supplier

The Company

Source: Extended Enterprise Applications, CherryTree & Co, January 2000

Enterprise Resource Planning (ERP)Backbone

The eBusiness Model

“CIOs today face myriad challenges; enterprises are more complex, work more in real time, are more interconnected and more online, and operate on a more worldwide basis.”

“Users are also engaging in Internet time and have come to expect instant access to everything, everywhere. Users want access to data/information, and they want simplicity, flexibility, performance, and choice. PDAs meet that objective.”

“In general, enterprises want a competitive advantage and a return on their investments. CIOs want lower costs, flexibility, manageability, and security. As a result, enterprise computing is consistently undergoing change.”

Enterprise Customer Needs/Issues

Source: International Data Corp. December, 1999

Information Categories

• Informational need

– Ex: View account balance summary or transaction history

• Alerts

– Ex: Shipment arrival, delay, etc.

• Actionable Events

– Ex: Buy and sell stock / report lost credit card / request or cancel “stop payment”

• Geo-locational

– Ex: Closest Service Center locator

• Transactional

– Ex: Quote discount approvals

• Digital persona integration

– Ex: Merge wireless ID and digital wallet

Supply Chain Management

…is being turned upside down.

Safety, Quality, Care for the Environment

The Situation–Port Operations Group

Volvo Cars

• 125,000 Volvos imported annually

• Arrive at four different U.S. ports

• Inspections documented on paper forms

• Documentation

– 17-digit vehicle ID

– Date of inspection

• Inspection

– 40 separate inspection items

– List of items revised constantly

The Challenge

What’s at Stake?

Assuring Quality while

Keeping Costs Down

Supporting a Mission-

Critical Core Function

Volvo Cars

• Clipboards damage finishes

• Potential error with17-digit VIN & data entry

• Reprinting forms to reflect latest inspection criteria

• Inefficient data entry process

• Slow access to data

Info Returned to Volvo

To Vendor for Manual DB entry

Handsorted by Volvo Staff

Process complete in 3 WEEKS!

QA Inspectors Collect Data and

Complete Inspections

Volvo Paper-Based Process

Data Available Immediately

Palm OS Solution

Palm HotSync® Technology Used to Transfer Data to a Central Location

QA Inspectors Collect Data and

Complete Inspections on Palm V™ Connected

Organizers using Pick Lists and Check Boxes

Process complete in 1 DAY!

Volvo Cars

• Improved data collection

– IMMEDIATE access to data—turnaround of 1 day

– Increased data accuracy

• Eliminated costs

– Updating and printing new paper forms

– Manual data entry

– Overnight mailings

The ResultsReduced Expenses

Improved Quality

Enhanced Strategic Capability

USPS

The Situation• Airlines transport mail

• Mail bundled into receptacles

• Receptacles damaged

• Ramp clerks create reports

• Data used to

– Reduce mishandling of mail

– Change airlines

– Assess fines

USPS

• Paper-based process performed days or weeks after the fact

• Prone to errors

• Information incomplete or illegible

• Delay of months before information provided to airlines for resolution

The Challenge What’s at Stake?

Ability to…

Resolve Vendor Quality Issues

Gain Leverage with Vendors

Manage Expenses in the Logistics Chain

Compete by Delivering Value

Action takenProblem resolved

Fees assessedVendor terminated

Results delivered to airline

USPS Paper-Based Process

USPS ramp clerks create

incident reports

Incident reports delivered to

central USPS location

Data consolidated

Process completed in MONTHS!

Mail receptacles damaged en

route

Action takenProblem resolved

Fees assessedVendor terminated

Results available immediately

At end of day, ramp clerk place

devices in an Ethernet cradle and upload data

Ramp clerk uses pick-lists and

check boxes to collect relevant

data

Palm OS Solution

USPS ramp clerks scans mail

receptacle

Process completed in DAYS!

Mail receptacles damaged en

route

USPS

• Increased accuracy and speed of access

• Enhanced decision making

• Improved quality

• Stronger vendor control

• Reduced data entry expenses

The Results

Reduced Expenses

Improved Quality

Enhanced Strategic Capability

Sports & Entertainment Center

United Center

• Massive sports and entertainment center

– Home of the Chicago Bulls basketball team

– Home of Chicago Blackhawks hockey team

– $175M in construction costs

– Opened in 1994

– Over 13M guests in five years

– Houses Fandemonium official team retail store

The Organization

United Center

• Fandemonium retail stores

• 50,000–300,000 items sold at a single event

• 2 retail outlets

• 12 merchandise stands throughout stadium

The Situation

United Center

• No cash registers

• No way to collect sales information

– Colors, Sizes, Styles

• No way to track

– Lost or missing inventory

– Distribution to each stand

• No efficient way to manage inventory

The Challenge

What’s at Stake?

Lost Revenue Opportunities

Excessive Inventory Costs

Affect Profits

Reduced Customer Satisfaction

United Center Process

Process complete in 6 DAYS!

Fans rush to purchase

50,000–300,000 specialty items

every event

Fandemonium merchandise stands accept cash and place in a cash box

Gross sales revenues

reported at end of day

Inventory and accounting

reconciliation takes place

ChallengeChallengeOut of stock of high-Out of stock of high-demand items—lost demand items—lost revenuesrevenues

ChallengeChallengeMissing or lost Missing or lost inventory not accounted inventory not accounted for for

ChallengeChallengeNo ability to forecast No ability to forecast requirements based on requirements based on sales detailsales detail

ChallengeChallengeExpensive and time-Expensive and time-consuming consuming reconciliation reconciliation processprocess

Palm OS Solution

Process complete in 30 MINUTES!

Fans rush to purchase

50,000–300,000 specialty items

every eventData uploaded into Oracle8i Lite database

Fandemonium merchandise use Symbol

device to scan items sold and

amounts collected

Data imported into an

Oracle8i database using

HotSync® technology

United Center

• Efficient inventory management

– Reduces on-hand inventory

– Reduces time to reconcile inventory

– Eliminates manual data entry

• Increased revenue

– Meet customer demands by replenishing best-selling items

The Results Reduced Inventory Mgmt and

Acctg Costs

Improved Customer

Sat

Increased Revenues

and Profits