Partner Relationship Management Case Study – Overland Storage Northern California OAUG Meeting...

Partner Relationship ManagementCase Study – Overland Storage

Northern California OAUG Meeting

March 7, 2005

2

• Don Giudice, Deloitte ConsultingDirector, Oracle Practice

• Dean Burell, Overland StorageManager of Business Systems

Presenters

3

Table of Contents

Portal Overview

Partner Collaboration

Portal Benefits and Implementation

Overland Case Study

4

Enterprise Portal Definition

Through portal technology, enterprises are extended and directly accessible to all constituents…

An Enterprise Portal is a

web-based solution that

provides a single, self-

service point of entry to an

enterprise's applications,

content/information,

products, services, and

processes through which

multiple constituents can

interact and transact with

the enterprise

An Enterprise Portal is a

web-based solution that

provides a single, self-

service point of entry to an

enterprise's applications,

content/information,

products, services, and

processes through which

multiple constituents can

interact and transact with

the enterprise

Employees Partners CustomerSuppliers

•Collaboration•eProcurement•Warranty/

Service•Supply Chain

Mgmt

•Project Collaboration•HR Self-Service•Knowledge Management•Communications•Customer Service

•eMarketing•Collaborative

Commerce•Knowledge

Management•Relationship

Management

•eMarketing•eSales•eCare•Relationship

Management

Enterprise Portal

5

Portal Evolution

• One-off transactional processing

• Non-integrated RMA/ product returns

• RFQ/RFI submission and statusing

• Integrated shopping carts

• Account management and real-time activity status

• Upstream integration with suppliers

• Downstream integration with channel partners/ship status

• Auction & reverse auction integration

• Scheduling/ collaboration

• Aggregate & disseminate content, News

• Brochureware/ Product specifications

BasicInternet

TransactionPortal/

Exchanges

PersonalizedCommerce

Portal

Sell-Side/Buy-SidePortals

Next GenPortal

• Integrates & organizes multiple information sources

• Basic search capabilities

• Distributed content publishing capabilities

• Role-based application access

• Integration with various data sources (ERP, Business Intelligence, CRM)

• Integrated desktop e-mail

• Online benefits

• Focus on people & process

• Groupware and workflow extending either upstream or downstream

• Discussion and online collaborating/ chat

• Calendaring/ scheduling and planning capability

• Aggregate & disseminate content, news

• Policies & procedures• Organization charts

BasicIntranet

EnterpriseInformation

Portal EnterpriseApplication

Portal

Exte

rnal P

ort

als

Inte

rnal P

ort

als

EnterpriseCollaboration

Portal

• Integrated in real time across all value chain constituents

• Consistent Cross channel experience

• Highly personalized experience

• Dynamic community driven

• Extended ecosystem• Global/Multilingual• Wireless real-time

enabled• Tailored to meet the

specific requirements of the constituents in the extended ecosystem

• Maximize value across extended enterprise

6

Next Generation Portals

Next Generation Portal Capability/CharacteristicsNext Generation Portal Capability/Characteristics

* Reference to the “desktop” nature that portals will employ though a browser interface over the web

Personalized/Customizable

Life-Cycle Experience Based

Interactive/Collaborative

Cross Channel Enabled/Integrated

Dynamic Community Driven

Extended Ecosystem (Internal/External)

Intuitive Search/Find Assist

Dummy-Proof Navigation

Designed Around User Req’s

Secure/Entitlement Controlled

Open Integration/RosettaNet/XML

Network/Distributed/Webtop*

Wireless Real-Time Enabled

Scalability/Extensibility

Consolidated Source/Content

Application/Functionality Rich

Intelligent Agent Based/Learning

Workflow/Groupware Enabled

Global/Multi-Lingual Integration Simple/Plug and Play

Integrated in Real Time (no batch) TBD

Fu

ncti

on

al

Tech

nic

al

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OPERATING

SYSTEM

OPERATING

SYSTEM

Yesterday

DBMSDBMS

EAIEAI

Business AppsBusiness Apps

Platform Portals

OPERATING

SYSTEM

OPERATING

SYSTEM

Early

App ServerApp Server

DBMSDBMS

EAIEAI


Platform

OPERATING

SYSTEM

OPERATING

SYSTEM

PortalPortal


DBMSDBMS

EAIEAI


PortalPortal


PortalPortal

check point one check point two check point three check point four check point five

check point one check point two check point three check point four check point five

Open ArchitectureJ2EE

Open ArchitectureJ2EE

®®

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Extending the Enterprise

Data Sources and TargetsEnterprise PortalDelivery Channels

Portal Constituents

Applicationsand Files

Information

Services

External Internet Content

Pers

on

alizati

on

Searc

h

Bu

sin

ess I

nte

llig

en

ce

Pu

blish

ing

& D

istr

ibu

tion

Pro

cess

Collab

ora

tion

Ap

plicati

on

In

teg

rati

on

Metadata Directory

Security

Administration

Enterprise Content

ERP

CRM

Legacy

Others

Email

Internet Services

e-business services

Information Databases

Other KM applications

PartnersPartners

SuppliersSuppliers

EmployeesEmployees

CustomersCustomers

An Enterprise Portal provides a single point of access to all the information assets of the enterprise, depending upon the targeted constituency.…

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Integrating Channels

Non Integrated Channels Internet-Leveraged/Integrated

Online Channels Integrated Channels

Traditional Channels

Web

Field

Contact Center/Phone

Retail

Agents/Distributors

• Inconsistent customer and channel partner experiences

• Dysfunctional organization based on poor informational flow

• Excess costs, lost productivity, waste

• Consistent customer and channel partner experiences delivered

• Deployment of resources based on a “holistic” view of customers/partners

• Cost savings and operational efficiency

Impact Impact

Web/E-Channel

Field

Contact Center/Phone

Retail

Agents/Distributors

Customer Interaction Channels

Mail

Mail

Inside Sales

Inside Sales

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Table of Contents

Portal Overview



Overland Case Study

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High Tech Manufacturer


BCO CBO

IPS CS EPS Services

Finance &Administration

Strategy & Corp.Operations

HumanResources

Technology Client XYZ Labs

Supply Ship SellDevelop ServiceMake

OEM’s

Mass Merchants & Warehouse

Clubs

Retail

Dealers

Manufacture

MRO

Equipment/Facilities

Ship

InventoryManagement

Raw Materials

Design

Engineering

Parts Distribution

Service

Center

Financing

Insurance

CollaborationCollaborationCollaborationCollaboration

Manufacture

CollaborationCollaborationCollaborationCollaborationCollaborationCollaborationCollaborationCollaboration CollaborationCollaborationCollaborationCollaborationCollaborationCollaborationCollaborationCollaboration

Consumers

BusinessCustomers

Suppliers

ContractMfg

OEM

SolutionPartner

CustomerService

ProductGeneration

Marketing

ITCorporateStrategy

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High Tech Manufacturing Trends

Dynamic Competition• Acceleration of product

commoditization

• Increasing time to market competition

• Competition from non-traditional sources

• Competition from innovative business models

Rapid adoption of new technologies

• Internet creating market opportunities

• Internet / other technologies impacting the “rules of the game”

• Technology being leveraged to drive down costs and time

Increasing Customer Demands

• Conditioned to expect continuously declining prices

• Increasingly less loyal

• Buying equation expanding beyond product to incorporate total solutions and customization

• Improve Customer Lifecycle Management

• Improve Product/Service Customization

• Improve Quality• Reduce Product Costs• Reduce Overhead Costs

• Decrease Time-To-Market• Increase New Product

Introductions

Customer Focus

Product Innovation

Operational Excellence

High-Tech Trends

13

Collaborative Commerce

Percentage of CompaniesPlanning to Deploy CPC

Source: Deloitte Research

Impact of Economic Conditions on theImportance of Collaborative Commerce

RecentHigh-Tech

CPC Adopters


Deployed with Suppliers

Deployed with Customers

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Benefits of Collaborative Commerce

Strategic & Operational Benefits of Collaborative Commerce


Benchmark Collaboration Performance Improvements

Customer Focus

Product Innovation

Operational Excellence

Gross Margin increase 1-3%Time-to-market reduction 25-75%

R&D Productivity Increase 20-30%Change-order time reduction 40-60%Change-order cost reduction 25-33%Data access time reduction 20-80%Manual data entry reduction 66-77%Manual BOM cost reduction 50-95%BOM accuracy increase 85%Rework and scrap reduction 15%ECO volume reduction 25%Process adherence increase 300%Part re-use increase 2-18%

Marketing effort increase 12-30 %Group technology availability 24-50 %Non recurring engineering 20-60 %Reduced change orders 15-45 %Improved capacity utilization 16-40 %

Sources: Deloitte Consulting, Gartner Group, AMR, IndustryWeek, CIMData, Manufacturing Systems, PTC, SDRC, Unigraphics, Agile Software, Matrix One

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Channel Complexity

Distributors

Businesses

ConsumersWeb Direct

Brand Dev.

Marketing

Research

Product Dev.

Manufacturin

g

DealersResellers/Agents

Retailers

Manufacturers…is growing

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Table of Contents

Portal Overview



Overland Case Study

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Partner Portal Benefits

• Accelerate sales growth • Strengthen and expand channel relationships• Gain competitive advantage• Expand international presence• Reduce cost

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Enterprise Portal Project Approach

•Establish Enterprise Portal Architecture•Consolidate URLs•Initial Personalization•Initial Content Management Processes•Establish Communities•Initial rollout phase

Release 1- EstablishEnterprise Architecture

(60 – 90 days)

Release 2 –Personalization andExpanded Content

(60 – 90 days)

Release 3 – ExpandedConstituents(60 – 90 days)



•Enhanced/Expanded Personalization•Content Management & Publishing Workflow•Analytical Capabilities•Enhanced “Back Office” Integration•Enterprise Wide Rollout•Marketing and Communications

•Enhanced/Expanded Personalization•Content Management & Publishing Workflow•Analytical Capabilities•Enhanced “Back Office” Integration•Enterprise Wide Rollout•Marketing and Communications

•Advanced Personalization•Expanded Scope of Portal•Advanced Marketing Campaign Management•Advanced Collaboration•Partnership Development•Multi-Channel Integration

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Table of Contents

Portal Overview



Overland Case Study

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Overland Storage, Inc.

• A 23 year old Global Supplier of Tape Automation and Data Management Solutions

• Fastest growing Tape Library Manufacturer, #1 in midrange ½” Libraries and #1 in 8 mm Libraries

• San Diego, CA headquarters with offices in Europe and Asia• Publicly traded on the NASDAQ Market: OVRL

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Corporate Profile

“While other storage and technology companies struggle,

Overland Storage continues to grow.”

Revenue (millions)

$75.2$92.2

$123.0

$155.7$163.4

$195.9

$238.1

$0

$50

$100

$150

$200

$250

1998 1999 2000 2001 2002 2003 2004

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Backup & Recovery Solutions

Tape Automation Solutions Disk Appliance Solutions

NEO is the best selling library inits class

REO is out-selling all other D2Dappliances

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Overland Advantages

• Local major metro sales resources – 100% channel focused• Non stop operation/modular architecture drives repeat

revenue• Best in class product quality, warranties, scalability/ high

availability• IS0 9002, long term HP/Compaq, IBM OEM supplier history

drives high quality, innovative products• Growing, profitable, 23+ year history

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Overland is …

2002 Tape Automation(in Units)

Largest Mid-Range Library Vendor

OVRL

ATL

33.8%

HewlettPackard

ADIC

StorageTek

OtherQualstar

IBM

Exabyte

Breece

…leading the way

IDC Corp. 2003

…producing more libraries

…setting quality standards

…delivering new solutions

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Awards and Accolades

BEST IN CLASSPartner Programs: Advisory Board VAR Business, March 2004

NEO 8000Most Valuable Product Award Finalist

InfoStor, July 2004

REO 4000Product of the Year, Forum Stockage, Sept. 2004

Best of the BestOverland Storage REO

— Computer Technology Review, March 2004

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Industry-Leading Brands Partner with Overland

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Broad Portfolio of Customers

Overland’s PRM Business Case

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Overland's Sales Channel

Overland sells its products through two channels – No direct sales• OEM Channel

– HP– IBM– Fijitsu– Hitachi

• Branded Channel– Over 570 registered Partners– Over 1200 users !

This is where the PRM solution is used

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Branded Channel Structure

• Multi-dimensional 1. Geographic Split

• Americas – East and West• EMEA• APAC

2. Industry focus• Government• Distribution• Direct Marketers

3. Product focus

• Software must cater for multi dimensional lead routing and notification rules!

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Multiple Channel Partner types

• ESR – Enterprise storage reseller– Fulfilled through distribution

• ESP – Enterprise storage partner– Fulfilled through distribution

• SSV – Storage Specialty Vars– Direct Fulfillment

• DMR – Direct Market reseller– Fulfilled through distribution

• Govt sales– Fulfilled through distribution

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Branded Channel Program

• We offer deal registration for our partners– Partner has “exclusive” on that deal– Partner receives a discount if they sell the deal

• Leads come from two sources:– Prequalified by Overland’s telemarketing firms – uploaded– Partner registers the deal themselves online

• Benefits:– Reduces conflict in the channel– Encourages partners to find additional deals rather than fighting

over one deal– Develops partner loyalty– Allows us to “measure” our pipeline

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Business Challenges

Our business model is changing !

• We were a manufacturing based company– We are in the process of outsourcing manufacturing

• We are morphing into a Marketing and Sales Company– This has changed our business systems needs– We now need a more focused Sales and Marketing solution –

consolidate our islands of customer data– We started our review at the beginning of our sales chain – This is

where a robust , flexible PRM solution will make a difference– Frequent changes within the Branded Channel program means the

solution will have to be flexible and adaptable– Dynamic, real time reporting will be key to our transition

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Current System Challenges

• Current PRM package is hosted• Limited ability to implement business process changes• Costs are prohibitive because most changes require

programming, even new reports• No ability to access data with in–house tools • Architecture an issue for growth• Poor system performance due to architecture flaws • No change control over the software• Administration overhead

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New System Selection Criteria

• Automated lead import from multiple sources• Lead routing to partners

– Automatically based on partner geography/classification – Manually to specific partners based on Overland discretion

• Ability to handle our discount scheme for the registered deal• Ability to establish Partner groups and classifications• Automated notification routing rules • Secure User ID/Password access

– Multiple user levels

• Intuitive and comprehensive reporting• Easy to use/learn (transition for partners has to be easy)• Offline capability• Closed loop lead management• Additional features for future expansion

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Reasons for Choosing Deloitte

Oracle Global Implementation Partner of the Year

Quality of Consultants• Wide range of Oracle Applications capabilities

– Functional – Technical

• Experience with the latest versions of Oracle Applications• Company commitment to send consultants to latest training

Capability to be flexible to Overland Storage needs

Very responsive and professional

Treated Overland Storage as it would have any company twice our size.

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Reasons for Oracle PRM

• We thought we were unique – users were convinced we would have to develop a custom solution

• Reviewed numerous packages and it turned out the Oracle solution was a very close fit! – Easy adaptability to business changes was key – During the sales cycle, demo’s and workshops were tailored to

mimic the current solution, this demonstrated the flexibility of the solution

• Advantage of buying the full suite from Oracle– Gives us the ability to expand the solution set in the future– One architecture base going forward– Fits our vision of one common base of information to manage our

business

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Implementation update

Step 1: Pilot– Perform controlled pilot of 11.i.10 as a proof of concept– Involve select partners in the pilot for feedback– Run leads through both systems and validate that

• lead assignment produces same results in both• Automatic notifications produced are the same

– Make go/no go decision by mid January

Step 2: If decision is GO– Production roll out within a month– May roll out to EMEA first, they have most urgent need– Replicate current functionality ONLY in roll out

Step 3: Further functional roll-out

Utilize additional functionality in the suite• Special Pricing• POS Management• Partner Funds Management• Not enough room to list everything everyone wants!!!

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Implementation update

Step 1: US Project is a GO– Based on work towards the Pilot and the urgency of the business

requirement…. management and the business team decide to skip the evaluation pilot and make the commitment to use Oracle. End of December 2004.

– Implement US with considerations for EMEA roll out (multi-language, hardware sizing, business unit structure, etc.)

– US Go Live end of April 2005

Step 2: EMEA Rollout– Propagate user interface enhancements to additional languages– Configure EMEA specific programs– Anticipate EMEA go live 3Q 2005 (calendar)

Step 3: Further functional roll-out– Special Pricing– POS Management– Partner Funds Management– Not enough room to list everything everyone wants!!!

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