BMS/BES Project Update

IOC and ITSC MeetingsMay, 2005

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IT Vision - We Deliver Quality Solutions For Our Customers

BMS/BES Project Update

Recap progress since February Board Meeting

Key Next Steps

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IT Vision - We Deliver Quality Solutions For Our Customers

Progress to Date

Major BMS Project HighlightsStrategic Architecture Solution - Siebel:Strategic Architecture Solution - Siebel:

-- This solution is highly scalable, they have a large customer base using the software today - have demonstrated the ability to support multi-tier environments - is extensible for our current/future needs

-- Out of the box functionality to support integration is well thought out (supports interface to Oracle Financials, etc.) - documentation/training is excellent- toolkit is quite efficient in handling configuration - is meta data driven to assist our design for the 360 degree view of our customer

-- Analytics engine will assist us with information access/ad hoc querying etc.

-- Can support our BES needs – Cost savings to be realized

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IT Vision - We Deliver Quality Solutions For Our Customers

Key Next Steps

Current PlanProject Implementation:

- Initiate 1st phase of the implementation - Discovery Phase

. Tier 1 Innovation engaged in fixed price Discovery Phase - $97k plus expenses

. Start Monday 09-May-2005 – Complete Friday 10-Jun-2005

. Discovery Phase will enable us to confirm requirements scope, project plans

and implementation costs

~ After completion of the Discovery Phase – we will be able to confirm the budget

. Initiate Implementation Phase mid/late Jun-2005

- Involvement with the Users will be very concentrated within short intervals

- Plan will outline when resources are needed (strict rules for adhering to agreed-upon schedules)

- Scope of the Discovery phase will be closely monitored according to the contract and reviews/presentations to IEEE

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IT Vision - We Deliver Quality Solutions For Our Customers

Key Next Steps

Current PlanIT Work Plan Management

- Baseline IT Work Plan against IEEE LOO Goals/OU Projects

. During/After the Discovery Phase, an Impact Analysis on existing IT Work Plan

will be performed based on BMS resources requirements from both IT and

Business Owner viewpoints:

~ System modifications may be suspended until the new system is operational

where systems are being replaced

~ Resource planning and execution will be closely monitored

- Define process to manage introduction of new projects/changes to projects during

the BMS/BES implementation

- Align resource availability with consulting vendors options to augment IT team

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IT Vision - We Deliver Quality Solutions For Our Customers

Key Next Steps

Current Plan

-Discovery Phase deliverables:

. Project Charter Document

. Project Plan, Costs, and Timelines for Implementation

. System Architecture Report for Development Environment

. Business Requirements Document – Capability Analysis (OOTB, etc.)

. High level Design Document

. Data Architecture Report

. Installation of Development Environment

- After the Discovery Phase – we will confirm Scope, Project Plan and implementation costs

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IT Vision - We Deliver Quality Solutions For Our Customers

Key Next Steps

BMS Capital/Expense DRAFT View2005 2006 2007 2008 Total

CAPITAL Budget November 2004

3.770m 1.120m 1.120m - 6.010m

Siebel (Estimates)

(May 2005)

3.223m 1.227m .115m - 4.565m

2005 2006 2007 2008 Total

EXPENSE Budget November 2004

.655m .863m 1.074m 1.074m 3.666m

Siebel (Estimates)

(May 2005)

.666m 1.172m 1.207m 1.207m 4.253

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IT Vision - We Deliver Quality Solutions For Our Customers

Key Next Steps

BES Capital/Expense DRAFT View2005 2006 2007 2008 Total

CAPITAL Budget November 2004

.557m - - - .557m

Siebel (Estimates)

(May 2005)

.305m .105m - - .410m

2005 2006 2007 2008 Total

EXPENSE Budget November 2004

.161m .161m .161m .161m .644m

Siebel (Estimates)

(May 2005)

.084m .115m .115m .115m .429m