Saba Confidential 1

Next Generation HCDM

April 16, 2003E-Learning Brazil ConferenceMagna Session

Bobby Yazdani President and COO

Saba Confidential 2

The world’s best organizationsare focused on the success

of their people

Saba Confidential 3

New Business Strategy: HCDM

Human Capital Development & Management is a new business strategy to improve organizational execution by implementing a management system to

align, develop and manage

people.

Saba Confidential 4

Today’s Discussion

• Global Challenges• Organizational Execution• New Definition of HCDM• A Proven Solution• HCDM in practice today

Saba Confidential 5

Disruptive Economic and Market Forces Create Opportunity for HCDM Solutions

• Globalization

• Technological progress

• Deregulation

• Intense competition

• Demographic change

• Internet

• Demanding customers and investors

• Fragile customer loyalties

• Frequency and complexity of interactions with customers, partners, and employees

• Volatility and rapid change

Saba Confidential 6

HCDM is the strategy to increase Organizational Execution

The only sustainable competitive advantage is the ability to execute

faster and better

Saba Confidential 7

What Is “Organizational Execution?”

• Execution is the combination of the enterprise management system and the integrated set of behaviors that organizations use to gain competitive advantage.

Saba Confidential 8

HCDM offers an integrated approach to Organizational Execution

An enterprise management system that brings together:

• Learning• Development• Goals & Objectives

Management• Performance management• Collaboration • Talent management• Knowledge management• Ongoing analysis

— and links to the strategy and operations of the organization

Saba Confidential 9

Development Planning

Certification Chat/ IM Content PublishingPerformance

Analytics

Saba HCDM Solution Map

Saba Enterprise Platform

Competency Assessments

Goal Setting

Organizational Alignment

Talent Management

Customer Education

Compliance

Sales and Channel Readiness

For Profit Training

Corporate University

EnterprisePerformance

Enterprise Learning

Management

Collaboration and

Communication

Knowledge Management

EnterpriseAnalytics

Q & A

Communities of Practice

Web Conferencing

Threaded Discussion

Standards Compliance

Content Management

Content Integration

Content Creation

Learning Analytics

Performance Tracking

Content Repository

Data Warehousing

Analytics Dashboard

Connectors

Subscriptions

Saba Confidential 10

HCDM is all about Results

Business Goals Value Drivers

Reduce Time to Market

Increase Sales Productivity

Increase Channel Productivity

Revenue

Acquire More Customers Faster

Integrate M&A Faster, BetterMarket Share

Reduce Operating Costs

Reduce Compliance CostsCost Reduction

Avoid Missing Financial Goals

Avoid Loss of Competitive Position

Avoid Being Out of Compliance

Risk Reduction

Saba Confidential 11

Increasing Sales Productivity

Challenge: • Increasing sales and aligning the skills of disparate

employees

Solution: • Saba Enterprise Learning to consolidate and track

learning programs for operational staff

Results• Improving time to competence• Reducing shipping schedules • Increasing sales productivity

Saba Confidential 12

Reducing Cost and Risk and Ensuring Quality

• Challenge– World's leading medical technology company needed to

demonstrate to FDA that required training has occurred– Risked billions of dollars in fines and losses without successful

audits• Solution

– Solve 21 CFR 11 & Section 508 problems; get Sales people back to work

• Result– Medtronic compliance program has been validated as required by

21 CFR Part 11, eliminating shutdown risk – Sales can now start in 6 weeks, not 12 as before, increasing sales

time by 50%

Saba Confidential 13

Market Share

• Challenge– #1 U.S. maker of household products needed to create a

global view of enterprise skill profile and consolidate learning globally

• Solution– Saba Learning, Enterprise Edition powers RapidLEARN

initiative delivering learning to P&G’s more than 100,000 employees in 80+ countries

• Result– Consolidated multiple systems into one– Moved from less than 5% use of e-learning to over 25%– Expected to save $14M over the next 5 years (as of May

2001)

Saba Confidential 14

Increasing Revenue and Reducing Time to Market

• Challenge– World's leading storage software company needed to deliver

and manage training for 9,000 customers and partners and over 5,000 employees

• Solution– Saba Learning, Enterprise Edition provides the ability to handle

all forms of learning including ILT, WBT, and CD-ROM • Result

– The flexibility to distribute learning content to many audiences in a variety of different delivery methods significantly reduced

training costs

Saba Confidential 15

Increasing Revenue andMarket Share

Challenge• Support VW Mexico’s e-business initiative by transforming

classroom training to e-learning • Certifying personnel at 250 dealerships

Solution• Saba Enterprise Learning to train employees in plant and

dealerships throughout Mexico and track certifications

Results• By ensuring channel certification, VWM can:

– increase the readiness of its channel to sell new models – Improve customer service and satisfaction

Saba Confidential 16

Saba in Brazil

Saba Confidential 17

Improving Time to Market

• Challenge– Banco Itaú needs to be competitive at a world-class level and

needs to align and improve the skills of employees located in 3,000 disparate branches and across all operating companies

• Solution – Saba Enterprise Learning to deliver e-learning and manage the

development of 45,000 employees

• Goals – Accelerate time to market of new products and services – Deliver consistent, quality service that increases customer

satisfaction– Improve employee competencies to increase competitive advantage

Saba Confidential 18

Increasing Competitive Advantage

• Challenge:– Petrobras seeks to transform corporate culture to improve

shareholder value and enhance its global competitive position

• Solution:– Saba Enterprise Learning for an initial deployment of 15,000

employees to transform corporate culture, ensure compliance, and align employees throughout disparate operating companies

• Goals: – Increase employee productivity – Ensure safety compliance – Enhance competitive position

Saba Confidential 19

New Business Strategy: HCDM

HCDM is a new business strategy

to improve organizational execution by implementing a management system to

align, develop and manage

people.

Saba Confidential 20

Thank you

www.saba.com