Studio Bid To BillPhase 2IT Funding Request

12/10/2013

2

Executive Summary

Without accurate and timely financial reporting of profit margins (revenues plus costs) by each line of business, Operations and Finance are unable to make sound economic decisions about which businesses no longer make sense to be in and which businesses are not making a reasonable profit but changes can be implemented to turn them around.

The overall goal of Bid2Bill was to provide the data necessary to help the LOB’s getting better insight to the profitability of their respective areas.

3

Deliverables & Scope

Bid to Bill Directive• Re-build revenue interface to SAP to improve financial detail and accountability.• Retire siloed, redundant operating systems to increase standardization and lower costs.• Develop system with vendor to eliminate manual, labor intensive and offline activities.• Provide detailed, timely reports to support operational and financial decision making.

Scope Changes Since Initial Launch (some are due to new stakeholders):• New company codes for FY15 and business unit / vault consolidations.• Deeper level of financial reporting required resulting in additional requirements.• Interim solutions required for both Bid and Labor Cost reporting.• TAAS integration opted for over original SAP method for labor cost capture including more

detailed master data to support “Baby CIPs”.• Enhancements needed to support business to streamline operations including workflow tools

and detailed mass updating capabilities and items jettisoned to meet original compressed timeline in original release.

• Increased level of user support due to higher complexities from Finance, users transitioning from offline to online management of business.

• Interim reporting solution (Tableau) and long term reporting universe (SAP BW).

4

Current Phase 1 Implementation

Release ScopeDelivery

Date

1 Retire ScheduAll and Stages, build new SAP interface, build new billing functionality, provide real-time replica of data in Sony Data Center for reporting. Completed.

3/21/13

2 25 functional enhancements to increase operational and billing efficiency – vendor delivered all tickets, passed QC, currently in QA environment undergoing QA testing.

11/30/13

3 New crew portal to replace paper timecards and replace current electronic timecard system – (85% build complete)

12/20/13

4 Bid module – both an interim and long term solution with interim ready by 11/30/13 and long term to provide new module in system to author bids, track bids vs. actuals

2/15/14

5 ShowMgr interfaces - provide labor hours from Shotgun and occupancy information for Archibus graphical floor plans

1/15/14

6 Labor Cost Capture from ShowMgr thru to SAP - both an interim and long term solution are being worked on with interim ready by 11/30/13 and long term dependent on TAAS availability with result to be a true fully loaded cost model by Profit Center, by Business Track, by Project, by Customer leading to strategic decisions in both Ops and Finance

6/15/14

5

Project Funding

As the current Phase 1 is running $380,000 under budget, this rollover amount will greatly offset the ask for Phase 2:

Previous Funding $ 3.1 M

Funding Needed for Phase 2 $ 990 KRollover from Phase 1 $ 380 KTotal Funding Request $ 610 K

All additional project work needed is to improve current / implement net new functionality. As a result only some of the internal labor will be expense with majority of the cost being capital.

Phase 2 Scope to include:• Extended Operations – enhancements for Ops to better manage Orders• Labor Interface – switch from SAP to TAAS / Baby CIPs model• Crew Portal – additional scope needed to support new labor cost capture• Bid – additional scope required to support Master Bid for internal productions• Workflow – enhancements for Ops, Finance to increase accountability and automation• Gold Interface – improve handoff of Orders from Gold to ShowMgr• Other – “Tier 3 & 2” enhancements to improve billing, full string SAP validation, pre-bills in ShowMgr UI

6

Appendix

7

Detailed Progress to Date

Release 1 & 1.5 (Go-live 3-21-13)• 90% of Sound and Post on ShowMgr: ScheduAll, SOS & CAFM Tools all retired

savings $1.56M in license fees, $380K in IT support & new negotiated site-wide ShowMgr license resulted in $650K in saved license “seat” fees

• New revenue interface in place to SAP providing detailed revenue that includes fully redesigned g/l accounts, profit centers and by project posting (GPM by project) and eliminated leaving transactions behind in operating system via new pkg billing UI

• Operational efficiencies through first release working toward $864K in hours spent• Reporting – full SQL “near real-time” replica of ShowMgr data now housed in Sony

data center and successfully up on Tableau while working on a proof-of-concept long term solution leveraging SAP BW with several Sony IT groups

Release 2 – System Enhancement• 25 Functional Enhancements – currently in QC environment undergoing QA testing /

bug fixes with resulting functionality going toward realizing $864K in Ops efficiencies

Release 3 – Crew Portal• 85% build complete – awaiting a few key Sony requirements to be added to the final

delivery

8

Detailed Progress to Date

Release 4 - Bid• Both interim and long term solutions are being worked on with interim solution up and

running in approximately 2 weeks and will highlight drastically better run rates than the manual method and much simpler Bid vs. Actual report to present to Customer

• Need for “Master Bid” across all of Post has created additional requirements in many areas that need to be incorporated into the long term bid module

Release 5 – ShowMgr Integration with Shotgun and Archibus• Finishing up final requirements gathering and functional specifications for ShowMgr

interfaces to provide labor hours from Shotgun and occupancy information for Archibus graphical floor plans

Release 6 – Labor Cost Reporting from ShowMgr thru to SAP• Both an interim and long term solution are being worked on with interim being ready

by end of November and long term dependent on TAAS availability (currently February 2014 to begin analysis)

• Result will be a true fully loaded cost model by Profit Center, by Business Track, by Project, by Customer leading to strategic decisions in both Ops and Finance

9

Projected Cost and Benefit Summary for Overall Project

Project Costs• Internal Labor: $

240K• External Labor: $

750K• Phase 1 (approved): $

3.14M • Phase 1 (rollover) $

(380K)Total Projected Costs: $

3.75M

Project Benefits - 5 Years • Hard Benefits: (revenue enhancement) $ -• Hard Benefits: (Cost Reduction) $

10.4M• Hard Benefits: (FTE Saving) $

6.7M• Soft $ Benefits (Efficiencies): $

1.3M

Total Benefits – 5 Years: $ 18.4M

Seven-year Summary and Payback• Seven-year total costs: $

4.8M• Seven-year total benefits: $

18.4M• Seven year net benefit: $

13.6M• Internal Rate of Return

63.9%• Net present value @ 10%: $

6.74M• Payback (Months):

13.1

Funding Needed FY15 * $ 990KTotal Funding Request * $ 610KPrevious Funding $ 3.1M* $380K savings from FY14 being rolled over so net $610K

Bid2Bill Phase 2 Cost Estimate 11/11/2013

10

5 Year Summary Original Greenlight

11

5 Year Summary New

12

Proposed Timeline

13

11/24 12/1 12/8 12/15 12/22 12/29 1/5 1/12 1/19 1/26 2/2 2/9 2/16 2/23 3/2 3/9 3/16 3/23 3/30 4/6 4/13 4/20 4/27 5/4 5/11 5/18 5/25 6/1 6/8 6/15 6/22 6/29 7/6 7/13 7/20 7/27 8/3 8/10 8/17 8/24 8/31

11/30 12/7 12/14 12/21 12/28 1/4 1/11 1/18 1/25 2/1 2/8 2/15 2/22 3/1 3/8 3/15 3/22 3/29 4/5 4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26 8/2 8/9 8/16 8/23 8/30 9/6

Item Release Date

48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Rel2 - Orig Rel 11/27/2013 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Rel3 - Crew Portal + Deltas 12/9/2013 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Pre Bills from ShowMgr 12/15/2013 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Extended Operations 12/27/2013 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Rel5-Shotgun/Archibus 2/4/2014 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Rel4 + Bid Deltas from BRD 3/28/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Full String Validation 4/1/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Tier 3 Enhancement Tickets 4/30/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Rel6 + Labor Cost Extended 6/27/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0 0 0Gold Interface 7/7/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0 0 0 0 0Wkflow Logic Config/Engine 8/4/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live 0 0 0 0Tier 2 Enhancement Tickets 9/2/2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Live

Calendar 2013 Calendar 2014

Fiscal Year 2014 Fiscal Year 2015

14

Resource Plan

Project Management Bernie Leypold

Jeff Rollo

System Implementation Jeff Rollo

Kara JenkinsDavid Yu

Operational ImprovementKara Jenkins

Alice Tu

Finance Alice Tu

Tammy LeeJalal Lalani

Key User / SMEs

Business Advisory GroupPeter Jensen

Richard KirklandIvan Gueron

Bernie Leypold

Executive Sponsors Randy Lake

Emmanuelle BordeTom McCarthy

Chris HoltSteve AndujarRon McNair

Steering Committee

Core Team