sSiemens IT Solutions and Services

Progressive Value Generation

Application Management

Design

Consult

ApplicationLifecycle

Build

Optimize

Operate

Deploy

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Answering the ChallengeWith the significant investment your business makes in evaluating and implementing

just the right application to automate critical business processes, it is easy to fall into

the trap of assuming that your challenges have been solved once the solution is

deployed. Without management that focuses on integrating the application into

your day-to-day operations, you may never realize the planned business benefits.

Enabling business applicationeffectivenessHow do you ensure you achieve theexpected outcomes and derive maximumvalue from your application investment?How can a world-class ApplicationManagement partner help you in thisregard? And how does your choice ofpartner impact the results achieved?These and other key questions drive yourdecision-making in the critical deploy-operate-optimize phase of the applicationlifecycle.

Application Management is whereoperational IT impacts your businessperformance most. Layered betweenyour technology infrastructure and yourmission-critical business processes,applications represent the operationalcapability of your enterprise. Equallyinstrumental to increasing employeeproductivity, growing customer satisfactionand driving greater business efficiency forbottom-line impact, Application Manage-ment is a key enabler of continuousperformance improvement and profitablegrowth.

InvestmentIT Consulting &

Systems Integration

ApplicationManagement

BenefitsRealization

An evolutionary approachto extending valueAs applications now reach into everyaspect of business activity it is time toleave behind the disruptive and expensive‘rip and replace’ approach to technologytransformation and seek an evolutionaryapproach that delivers continual business-IT alignment and progressively generatesvalue from your existing investment.

You need an agile approach to ApplicationManagement that reduces cost andcomplexity, exploits best practices formaximum service quality, while bringingtechnology innovations that improveyour business performance. Whether youentrust that task to an in-house organizationor an external partner, your providerrequires business know-how togetherwith highly developed software skills,not to mention access to globaleconomies of scale.

Realizing business value through Application Management

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A unique partner with a unique conceptThe only IT partner in the world positionedwithin a multi-business global network,Siemens IT Solutions and Services ispartner to over 600 customers who havealready made the decision that ApplicationManagement is best entrusted to some-one coming from the business side of IT.To these customers, the business value ofApplication Management is not a hazyconcept. It is a fact.

Application outsourcing is no longerconsidered as just a tactical cost reductionlever, and at Siemens IT Solutions andServices we have matched the outsourcingmarket’s evolution with an innovativeapproach to Application Management thatbridges the gap between business and ITthrough a concept we call ProgressiveValue Generation.

Transforming valueover wider dimensionsProgressive Value Generation is thecumulative realization of cost benefit andbusiness advantage to your enterpriseover three dimensions delivered througha transformational journey.These dimensions – Drive Efficiency, EvolvePerformance, Empower Competitiveness –progressively target greater IT costefficiency, transformed enterpriseeffectiveness and innovative marketimpact. This approach enables us tomanage and support your environmentdynamically – transforming it over succes-sive performance models and enriching itwith vertical business domain know-how.

Not only do we deliver the low cost,high performance application support,maintenance and enhancement servicesthat you expect of your provider, webring an approach that optimizes youroperations and maximizes your value.

Empower Competitiveness

Three value dimensions of our Application Management approach

Utilizing Siemens business domain expertise and innovationbeyond the IT domain to win market advantage

Evolve PerformanceContinuously improving and transforming your business applicationsand services to achieve an optimized best-fit environment

Drive EfficiencyReducing the cost and increasing the efficiency of your businessapplications and associated services for best-in-class delivery

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Delivering Progressive Value GenerationThe transformational journey at the heart of Application Management from

Siemens IT Solutions and Services is supported by a balanced global delivery model

as well as unique methods and tools to achieve Progressive Value Generation.

Matured over years by Siemens for our Fortune 500 customers, our approach

masters your environment and maximizes its business value.

Systematic assessment and roadmappingOur Application Management ServiceRoadmap plots your potential and desiredbusiness outcomes. Through the systematicdeployment of industry-standard as well asinnovative methods and tools we transformoperational, service and business outcomesfrom your application investment over time.Taking you through an Interim OperatingModel, Target Operating Model, to FutureModes of Operation, your applicationlandscape will be systematically transformedfor delivery and service efficiency, enterpriseperformance and continued marketcompetitiveness.

An initial Value Comparison Assessmentbrings the challenges you face in yourapplication landscape into sharp focus andenables our consultants to tailor a roadmapthat responds to your specific businessscenario.

Ensuring a best-fit environmentA dedicated Customer Service Manager isresponsible for building strong, productivecustomer relationships and ensuringconsistent high quality of core ApplicationManagement services by deploying provenbest-practice service delivery processes.Business Solution Managers act as yourpersonal bridge to business expertise from

deep within Siemens. Leveragingeconomies of scale and deep technicalexpertise through our Global ProductionCenters along with industry-specificinnovation through our access to theentire Siemens network, here at last isa sourcing approach that speaks bothlanguages – IT and business. Whetheryou are a technology leader looking for apartner that brings a business perspectiveto IT delivery, or a financial head in searchof Key Performance Indicators that matterto the bottom line, Application Manage-ment from Siemens IT Solutions andServices is a best-fit approach thatdelivers your own Application Manage-ment Service Roadmap – not just aninitial reduction in costs.

A proven transformation skill setWhen you outsource your applications,you’re not just looking for the year-on-yearcost reduction that Siemens IT Solutions andServices naturally aims to provide. You’realso looking for a technology partner whowill help you transform your future.

At Siemens IT Solutions and Services wehave bundled some of the most proventools, techniques and domain insights fortransforming the current performance andfuture potential of business applications.

Bu

sin

ess

Val

ue

Outcomes

Scope

Application Management Service Roadmap:delivering dynamic cost reduction and business value generation

Transformational Journey

• Best-practiceservice delivery

• Governance

• Business case• Rapid, low-cost,

low-risktransition plan

• Cost reduction• Business-driven

service levels• Improved

performance

• Global delivery• Lean Six Sigma• Business solutions• Process automation

• Further costreduction andquality improvement

• Applicationenhancement

• Improved customerexperience

• Portfolio planning• Customer innovation

program

• EAI/SOA• Core process

excellence

• Technology-enabled businessinnovation

CurrentOperating

Model

InterimOperating

Model

• Value Comparisonassessment

TargetOperating

Model

FutureMode of

Operation

FutureMode of

Operation

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Innovation from the business sideOur approach to business process andapplication optimization, for instance,combines insight into your process per-formance with Lean Six Sigma to help youmeasurably improve cycle times and boostbusiness throughputs. By tapping intoaccumulated Siemens knowledge acrossmultiple sectors we are able to enrich ourservice delivery by bringing you insightsthat help you integrate industry bestpractices and industrialized processes.

Our Customer Innovation Workshop forTransformation extends this benefit bybringing Siemens innovations beyond the

application and IT space – in industry,energy, and healthcare – to help you builda business transformation roadmap thatexploits the outcomes of the €3.4 billionresearch and innovation budget atSiemens.

Accumulated customer experienceOur track record covers a range of indus-try sectors, including EADS in aerospace,John Deere in automotive, Commerzbankand the UK's National Savings andInvestments in financial services, Xeroxin high-tech manufacturing, the UK'sIdentity and Passport Service, theNational Assembly for Wales, and the

German City of Wiesbaden in public sector,Infineon in semi-conductors, and the BBCand Telecom Italia Mobile in telco andmedia.

When coupled with our IT consulting andsystems integration know-how we bring aholistic, long-term perspective across thefull application lifecycle. And with theSieQuence approach – our fully-integratedsolution for IT outsourcing that enjoys95% customer renewal rates – you canextend your scope with a full choice ofadditional services.

Wherever in the world it is beneficial …Our Global Production Centers focus on technology excellence,operational efficiency as well as industrialized service delivery.

Wherever your business is …Our global network of Customer Service Organizations builds strongcustomer relationships and focuses on driving improvement and innovation.

Sourcing the world for the best fit between quality, customer intimacy and economy

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Why Siemens IT Solutions and Services?

Direct and immediate sector know-howSince its beginnings over 150 years ago,Siemens has been synonymous with tech-nology excellence across an unparalleledspectrum of public and commercial opera-tions. Siemens IT Solutions and Servicesadvances this tradition in the informationtechnology sphere by designing andoperating best-fit technology solutionsfrom sector to sector. This ongoing commit-ment to technological expertise is matchedby our unrivalled business domain insight –with the kind of intuitive knowledge whichonly comes from first-hand involvement.Unlike every other IT partner on the market,Siemens IT Solutions and Services enjoysdirect and immediate sector know-howthrough the global industrial presence ofSiemens.

Flex your global delivery over timeBuilding on technology excellence andunique business insight, we employ amature balanced global delivery model –not simply onshore balanced with offshorebut on-, near- and offshore in flexibleinterplay offering you the kind of freedomof maneuver over time that is so necessaryto growing businesses. Our global econ-omies of scale and worldwide reach arealso built on long presence in emergingeconomies for cultural fit and partnershipstability.

Customer loyalty, financial adaptability,innovation cultureAdd to this the fact that Siemens IT Solutionsand Services is a trusted partner withexceptional client renewal rates andlong-term commitment to customerdevelopment. Commercial and contractualflexibility is another key difference, withour wide range of partnership modelsincluding gain-sharing and risk/reward.Finally, of course, there is the Siemenstrack record in innovation. As the IT armof Europe’s patent leader, Siemens ITSolutions and Services continues toinnovate and reinvent the design, deliveryand relationship model of technologyplatforms.

Technology excellence, business insight,global flexibility, trusted partnership,financial adaptability, Siemens innovation– a winning combination supportingProgressive Value Generation.

A unique combination of powerful differentiators sets the Siemens IT expert apart

from conventional technology partners. Progressive Value Generation is built on

six core qualities which distinguish us as a partner and promise durable value in

the application space. Take a moment to scope the wider context around this

exclusive offering.

Technology excellence

Business insight

Global flexibility

Trusted partnership

Financial adaptability

Innovation

Why Siemens IT Solutions and Services?

• World-renowned technical andengineering excellence

• Global top-ten IT outsourcer

• Support for more than 500,000 usersat more than 600 customers

• Access to the Siemens global networkof innovation for unmatched businessdomain know-how

• Strategic alliances and partnershipswith Microsoft, Oracle and SAP

• Global SAP-certified ApplicationManagement Services Provider and theworld’s first SAP-certified Customer CoreCenter of Expertise

• ISO 20000-1 IT Service Management

• ISO 27001 Information Security

• ISO 9001: 2000 Quality Management

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Your key benefits

• Rapid low-cost, low-risk transition from anin-house or incumbent service provider

• Significant cost reduction and increasedquality of core application support services

• Cost-effective delivery from our networkof Global Production Centers andCustomer Service Organizations;continually improving quality of servicewith year-on-year efficiencies

• Maximum value released from existingapplication landscape throughevolutionary transformation

• Optimized business processes enabledby strategic application platforms andinteroperability

• Competitive advantage derived fromtechnology-enabled business innovation– unique Siemens business andtechnology expertise combined tooptimize your operations and maximizeyour value

Our answers for Application Management excellence

Application Management designed for Managed Application Portfolio – for customers with a heterogeneous application landscapethat covers a range of custom, line-of-business and enterprise applications.

Application Management designed for SAP® Software Solutions – for customers with a largely standardized SAP-basedapplication landscape covering the range of business modules.

All hardware and softwarenames used are brandnames and/or trademarksof their respective holders.

© Siemens AG, 2008.Right of modifications reserved.Order No.U29214-J-Z401-5-760010/08 | Printed in Germany

Siemens AGSiemens IT Solutions and Services

Otto-Hahn-Ring 681739 Munich, GermanyGlobal Info DeskTel.: +49-1805-444713it-solutions@siemens.com

www.siemens.com/it-solutions