Project UpdateEffective Product Launch

Vendor Integration

Inga BroermanBlack BeltMarketing - Corporate

2

Project Definition

Problem Statement: Poor integration with vendors results in IKON Launching new products

significantly behind vendor launch date This results in lost revenue and decreased share of targeted markets as

competitors take advantage of IKON's lack of access to new products In the past 12 months, for the 27 new products introduced, the average

number of days past vendor launch date to launch a product was 36 days, resulting in $X,XXX missed revenue opportunities (data not finalized due to Measurement Systems issues)

Project Definition: This project will define the current process used by our key vendors and IKON

when launching a new product and identify areas to improve the processes and the integration between the processes to ensure IKON readiness to go to market effectively on product launch date.

This project will look at launches of new products, replacement engines and enablers. Excluded are IKON branded products, accessories, and IKON launches of products in which we assume product distribution for existing manufacturer product.

3

Project Definition

Project Objective: Reduce days past vendor launch date that IKON Product Marketing is

prepared to launch new products.

Project Benefits: Revenue associated with increased volume of products placed during

product lifecycle Being able to hit the market effectively on Day 1 enables IKON to capture

the share generated early in the launch phase and increase total number of selling days at full volume

Financial Benefit: Average Sales per day of new products (based on forecast) Revenue per unit / OI per unit Days Decrease in launch lag = additional annual revenue

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Project Definition, Cont’d

Project Metric “Y”: Big Y = Days lag in IKON product launch behind Vendor Project Y = decrease days lag to target Product Marketing Process

Capability

Defect Definition: Days past vendor launch date IKON launches new products outside

reduction targets

Leveragability: Project around vendor integration may have leveragability in future

projects around: supply chain interactions training service

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Project Team

Black Belt – Inga Broerman Champion – Steve Poole, Kim Castagnetta Financial Analyst – Jason Henson Process Owner

Annette McCrary, Director, Product Marketing Mike Dane, Director, Product Marketing

Key Team Members: Tim Bach, Product Marketing - Data Keith Audit, Product Marketing – Pricing Eric Dettman and Meghan Toomey, Marketing Communications -

Collateral Brian Bennett & Elaine Chacko, Common Coding Dan Nero, Professional Services Don Hebert, Field Service Michele Dyer, Law Department

Master Black Belt – Bob Conrad

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Background – Current Process

Due to structural changes within Marketing, processes around Product Launch are no longer valid

Data regarding Launch Dates, key input variables and high level benefits around timely product launch have not been tracked

Initial Six Sigma project focused on launch of replacement engines, however, placement data demonstrated limited revenue benefits

Project scope was amended to include launch of all products, including enablers, new products and replacement engines

Product Marketing manages the process of product launch and promotion to the field

Various ‘sign-off’s’ are required to launch a product at IKON: Service, Service Training, Professional Services, Pricing, Systems Update (Oracle, OMD) and Supply Chain

Receipt of information from vendors is one inhibiting factor in launching products

Three key areas have been identified by the Process Owners as Key Inputs:

Service Guide / Training Planning Oracle Configurator Launchpad Updating

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SIPOCSuppliers Inputs Outputs

Requirements Requirements

Vendors Product info & tools

Educate & communicate to field; provide sufficient information to sell.

Start: Vendor informs IKON that they are launching a new product.

Products available when I need them.

IKON Customers

Vendors VPN Numbers To update systems.

Products launched at vendor launch date so that I can compete with the competition.

IKON Sales Reps

Vendors / IKON Marcomm Brochures To give to clients.

Enough information and tools available to be able to sell to IKON Customers.

IKON Sales Reps

VendorsTraining CD for service To train service.

Codes in OMD and Oracle so that I can order equipment for my customers.

IKON Sales Reps

Vendors / IKON Product Marketing Pricing To price deals.

Pricing and Promotions so that I can order.

IKON Sales Reps

Vendor / IKON Professional Services

Connectivity Options

To configure and price connected products.

Information available when I need it to talk to a customer.

IKON Sales Reps

Vendor / IKON Supply Chain

Product availability

To inform the field when they can deliver the product to their customers.

End: Launch communicated to field and field ready to order new product for customers.

Information available on web when I want to see it.

IKON Customers

Process Customers

Product Launch Announcement,

Launch Pad, OMD & Oracle Products in system, Collateral available, updated

price book, promotions, PR, updated public

websites.

Receive, create, update, approve and coordinate

processing of information from IKON vendors to

inform field of new products and enable them

to sell, connect and service them.

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SIPOC (Extended Version)

Suppliers Inputs Outputs(Providers of the required

resources)(What the input is, what the vehicle is; Resources required by the process) (Deliverables from the process)

Requirements

Vendors Product Information:

Create Launch Announcement, Launch Pad and updated websites

Delivery date coinciding with Vendor Launch.

IKON Sales Management

Canon Finalized Launch Announcement.

Delivery date coinciding with Vendor Launch.

Sales Representatives

RicohDepth of information to allow for sales.

Sales Representatives

Others

Product information available to customers IKON Customers

Product Marketing:

Product Directors

Knowledge regarding product positioning, competition, pricing, applications & environments, related solutions, similar solutions, training requirements, configuration, FAQ's, awards, vertical market opportunities. Measured by the completeness of the launch and timeliness of creating content.

Launch Pad: Overview of product, features & benefits, IKON Specs, competitive analysis, price book update, applications & environments, related solutions, similar solutions, training information, white paper, positioning guide, spec comparison, configuration matrix, product FAQ's, awards certifications, links to vendor extranets, vertical market information

Product ManagersInformation to populate a Sales Training Plan

Information provided prior to launch of product.

IKON Training Department

Pricing Analyst

Equipment, accessories, service and professional services pricing. Measured by turnaround of pricebook updates.

Update Online Price book concurrent with Product Launch to allow reps to sell product immediately. Updated Price Book

Information easily and immediately available via web or email.

Sales Representatives

Process

Product description, applications, environment, specs, VPN's, pricing, positioning, launch date, promotions,

connectivity information, graphics, service training CD's, brochures, Professional

services connectivity information. Measured by date of receipt by Product

Directors.

Vendor announces to IKON that a new product will be launched within the next XX number of

months.

Start:

Customers

(Top level description of the activity)(Anyone who receives a deliverable from

the process)

Process Requirements

Send product information according to

predetermined deadline that will allow IKON to

launch a product concurrent to the Vendor

launch date.

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SIPOC (Extended Version)

Promotions Manager

Information from vendors or corporate for product promotions. Decision by Senior Management and Product Directors to promote or not promote. Measured by turnaround time on decision to promote and development of promotions.

Create, review and/or approve material w ithin sufficient timeframe to perform downstream processes. Update site and material to the field. Distribute separately from Launch Announcement. Promotions (if applicable)

Widely available promotions on new equipment available easily via web or email.

Sales Representatives

Law Department

Law Department approval. Measured on turnaround from date of receipt of final copy.

Review and Approve material w ithin sufficient timeframe to perform downstream processes.

Legal Approval to Publish to Field; Legal Approval for External Publications.

Marketing Communications:

Marcomm Director

Marcomm approval. Measured on turnaround from date of receipt of final copy.

Review and Approve material w ithin sufficient timeframe to perform downstream processes.

Finalized launch announcement and public communications.

Correct and meaningful information.

Sales Representatives

Collateral Coordinator

Input of collateral material into online ordering system. Measured on date of availability to the field.

Update online collateral ordering system concurrent to product launch.

Updated collateral system. Ultimate output would be to distribute to the field.

Collateral available in offices on date of launch

Sales Representatives

Marketing Editor

IKON-ized Marketing collateral, review of Product Marketing announcement. Measured by turnaround time to update online ordering system.

Create, review and/or approve material w ithin sufficient timeframe to perform downstream processes.

Collateral - vendor and IKON created/branded created and made available to field.

Collateral available in offices on date of launch

Sales Representatives

Public Relations Manager

Decision from Exec regarding publicity on specific products, creation of publicity material. Measured on turnaround of decision and publicity material.

Create, review and/or approve material w ithin sufficient timeframe to perform downstream processes.

PR - publicity announcements, pushes, etc.

Information about new products made available publicly. IKON Customers

Systems: Updated OMD and Oracle Configurator (w ith configuration rules).

System updated before product launch to allow ordering of products.

IKON Administration, Sales Representatives, Management

Create Launch Announcement, Launch Pad and

updated websites for concurrent

vendor launch.

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SIPOC (Extended Version)

OMD Coding

New products entered into OMD system. Measured on turnaround to update system.

Update system w ithin a sufficient timeframe to allow for downstream processes.

Oracle Coding

New products entered into Oracle system. Measured on turnaround to update system.

Update system w ithin a sufficient timeframe to allow for downstream processes.

Supply ChainDemand Planning, forecasting information.

Professional Services

Connectivity and enabler options, guides, instructions; training for their field. Measured on turnaround time to create material for launch announcement.

Create information and return to Product Directors in sufficient timeframe to allow for downstream processes.

Ability to sell and service connected products.

IKON Customers, IKON Sales Representatives

Service

Service training training plan from vendor to distribute to field. Measured on turnaround to inform Product Marketing that field has been informed of Service Training availability.

Create information and return to Product Directors in sufficient timeframe to allow for downstream processes.

Training Material to update service force prior to product launch.

IKON Service Department

EWS - Launch Pad

Launch Pad site based on Launch workbook. Measured on turnaround time to update site.

Update launch pad site to coincide w ith Product Launch.

Complete information available in an easily accessible manner/format.

IKON Sales Representatives

.com Team

Updated IKON.com site w ith information in Launch Workbook. Measured on turnaround to update site.

Update public site to coincide w ith Product Launch. Updated IKON.com website.

New product information available online as the product becomes available to IKON sales force. IKON Customers

End Point:

Product Marketing Announcement is distributed to the field, Launch Pad site

updated, .com updated.

Create Launch Announcement, Launch Pad and

updated websites for concurrent

vendor launch.

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CTx Identification

Customers Sales Reps / Managers / Senior Sales Management End User Customers

Y = Effective Product Launch: Product Marketing Vendor Integration CTQ

Product Positioning Approvals

CTD Predictable Launch Date Information available to field Training Prepared IKON System Readiness Availability of Information to Product Marketing Team

CTC None Identified

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CTS Flow downProduct

MarketingLaunch -Vendor

IntegrationCritical To

Satisfaction(CTS)

Critical toDelivery

Critical toQuality

Critical to Cost

ProductAvailable

No ReplacedProduct

Inventory

Trainingprovided toSales Force

ThoroughInformation

communicatedto Sales Force

quickly

Promotionsmade available

to the field

Field ServicesService Ready

for Product

ProfessionalServices able to

market andperformsservices

Cost toCommunicate

informationmanaged

ProductLaunched at

Same time asVendor

PredictableLaunch Date

Availability ofInformation to

Product MarketingTeam

ProductPositioning

IKON SystemsReadiness

Availability ofInformation to

FieldTraining Prepared Approvals

VendorPredictedLaunch

Date

Marketing& Legal

ProfSvcs

Readiness

SalesTraining

ServiceReadin

ess

PublicLaunch

Launchpad

Update

SalesNotification

Process

Availabilityof

Collateral

CommonCoding

Turnaround

VPN's toCommonCoding

VolumeForecast

ing

IKONProductPositioni

ng

VPN'sSales /Product

Info

PricingInformation

EarlyVendorNotification

ConsistentIKON

LaunchDate

13

CTS Flow down

ProductLaunched at

Same time asVendor

Approvals

Marketing& Legal

Critical toDelivery

Critical toQuality

Critical to Cost

Availability ofInformation to

Field

PublicLaunch

LaunchpadUpdate

SalesNotification

Process

Availabilityof

Collateral

IKON SystemsReadiness

CommonCoding

Turnaround

VPN's toCommonCoding

Availability ofInformation to

Product MarketingTeam

VPN'sSales /Product

Info

PricingInformation

PredictableLaunch Date

VendorPredictedLaunch

Date

EarlyVendor

Notification

ConsistentIKON

LaunchDate

Training Prepared

Prof SvcsReadiness

SalesTraining

ServiceReadiness

ProductPositioning

VolumeForecasting

IKONProduct

Positioning

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Process Map – High Level

Vendor SendsFinalized

Documentation

IKON/VendorProduct Planning

Initial notification ofintention by vendor via

planning docs

Develop ProductLaunch doc

PD ForwardsInformation to

Appropriate IKONResources for

Processing

Approve

ProfessionalServices,Service

Training,Pricing,

Collateral,Supply Chain,

SystemsUpdate

Communicate &Publish

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Process Map – Detail

New Product Launch: Vendor Integration (inputs outputs)

Su

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ly C

ha

inP

rofe

ssi

on

al

Se

rvic

es

Co

llate

ral

Pro

du

ctM

ark

etin

gP

ricin

gC

om

mo

nC

od

ing

Se

rvic

e &

Se

rvic

eT

rain

ing

Ve

nd

or Initial notification of

intention by vendor viaplanning docs

Vendor ProductTimeline/Map (N)

Vendor StrategyMeetings (N)

Vendor StatusMeeting (N)

Participants in theMeeting(C)

Check status oflaunch with vendor

PM knowledge of vendorpractices (C)

PM Resources (C) PM targets & conflicts (N) PM Resources (N) Knowledge of upcoming

launches, if informed (N)

Initial Knowledgeof UpcomingProduct Launch

Request PreliminaryProduct Information

Date of launch (N) Type of Launch (C) Vendor contact

with PM (C) PM relationship

with Vendor (C)

PM Learns ofnew produ ct &launch date

Product Alertdocument sent toSupply Chain and

Region Sr Staff Quarterly Meetingwith Vendor (N)

Correct informationon upcomingproducts &positioning (N)

Management of Inventory& ordering

Send initialproduct

information

Vendor InitialProduct Info

Degree of finality of: (N) Draft Brochure Spec Sheet PPT's from Japan Strategic Concept

Docs Overview Competitive Info Vendor Positioning

Papers Target Launch DateLevel of interaction w/ PM(C)Who Vendor PM is(N)Which Vendor (N)

Start PL Doc

IKON prepared to StartLaunch Process

Quantity ofinformation (C)

Quality of Information(C)

Date of launch (N) PM Resources (N) Conflicting Launches

(N)

IKON PD/PMPositioning

Vendor Positioning(N) Affected Products (N) Competitive Products

(N) IKON Comparable

Products (N) Inventory Issues (C) PD/PM Resource

Availability (N) PD/PM Product

Knowledge (C)

Product Positoned Basedon Preliminary Information

Identify Holes in Info

Receive InitialProduct

Information

PM's Alert SupplyChain

Availability of relavent information(N)Type of information avaialble: (N) Demo disks Product Specs Tech Manuals Training Manuals Product (if available)

Develop LaunchPlan

PS Strategy Overview

Identification of Affected Products (C) Date of Launch (N) Forecast Volume (C)

Create Draft LA

SME's (C), ProductKnowledge (C), Sales InfoDocs from Vendor (N),Previous Similar ProductLaunches (N)

Vendor SendsFinal Information

Pricing, VPN's (N) Specs, Service Guide,

Training Requirements (N) Vendor Finalizing Before

Launch (N) Vendor level of comfort with

releasing non-final productinfo (C)

Vendor receiving finalinformation prior to launchfrom Japan (N)

Vendor perception ofIKON's launch requirements(C)

Vendor Approved Content

Send info to IKONInternal Groups for

Processing

Receive PricingInfo, Forward toCommon Coding

(see attached)

Common CodingProcess (see

attached)

Service & ServiceTraining Process

(see attached)

Collateral Process(see attached)

ProfessionalService Process(see attached)

Supply ChainProcess (see

attached)

Finalized LaunchAnnouncement

OK To Launch (SystemsUpdated)

OK to launch - ServiceTraining Plan in place)

OK to launch - PS Plan inplace, codes updated,

pricing complete)

Receipt of completeinfo from Vendor (N)

Product otherwiseready to launch (N)

Description (N) VPN (N) Pricing (N) Rules (N)

Service Guide (N) Training Schedule,

Plan, type, Pre-Req's(N)

Service Pricing (N)

Finalized Brochures (N) Notice from Product Marketing

(C) Decision on type of collateral (C)

Finalized Product Info (N)

Forecast (C), InventoryReports Feedback (C)

Initial Product Buy

Buy Decision Information

1 Day

Review & PublishingProcess OK's from related

subprocesses (C) finalized vendor

information (N) resource time (C)

OK to Launch -Pricebooks Updated

Internal IKON ProcessesInitiated

Pre-Approved LaunchAnnouncement

LA Ready to Review &Publish

Collateral System UpdatedCollateral Available to Field

60-90 Days Pre-Launch 30-60 Days Pre-Launch 30-60 Days Pre-Launch 15-30 Days Pre-Launch 15-30 Days Pre-Launch 15-30 Days Pre-Launch 3-15 Days Pre-Launch 3-15 Days Pre-Launch 0-3 Days Pre-Launch 0-7 Days Post Launch 7-28 Days Post Launch

1-2 Days 1 Day 1 Day 4 Days

14-21 Days

5-7 Days

4-6 Days

5-14 Days

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Data Collection for Y

Historic: Data provided not able to be reproduced Data will be validated by vendor according to defined

standards Develop Tracking System for Launch Dates, with

Definitions & Processes Date of Initial Notification Date of Receipt of Final Product Information Turnaround of Internal IKON processes

Test Definitions with Process Owners with Hypothetical Launches

Track Product Launches through Sept-Oct

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Data Analysis: Value of Data

20016012080400

95% Confidence Interval for Mu

704520

95% Confidence Interval for Median

Variable: Lag

15.000

38.779

22.473

Maximum3rd QuartileMedian1st QuartileMinimum

NKurtosisSkewnessVarianceStDevMean

P-Value:A-Squared:

49.346

69.990

64.610

222.000 68.250 23.500 14.250 0.000

246.361752.260802489.4849.894743.5417

0.0001.712

95% Confidence Interval for Median

95% Confidence Interval for Sigma

95% Confidence Interval for Mu

Anderson-Darling Normality Test

Descriptive Statistics Note StDev Issue: Volume of Transactions very small

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Data Analysis: Target Areas

0 100 200

Lag

Dotplot for Lag - by Product Family

Product Fami

Color Copier

Document Wor

Fax

Monochrome C

RIPs & Color

Scanning & E

Specific Product Groups Have Issues

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Analysis: Improvements Made

0

100

200

11/5/2002 5/16/2003

Lag

Date/Time

Over time, lag has lessened, but is still significant