BENEFITS REALIZATION: THE COMPETITIVE ADVANTAGE

INTRODUCING HITACHI DATA SYSTEMS Ranked # 140 for Innovation in 2010 Formed in 1989 as a subsidiary of Hitachi, Ltd. (NYSE: HIT) Direct and indirect sales in 100+ countries and regions 5,000+ employees, worldwide Focus: Information technologies, services, & solutions Recognized industry leader Excellence in Customer Service Awards 2

PHILOSOPHY ON GOALS AND PRIORITIES Life Example School Job Work Example Corporate Success Schedule ROI Cost 3

PORTFOLIO MANAGEMENT IS STRATEGIC Governance: Business council Tools: Portfolio, Business case Strategic Alignment Are we doing the right things? Benefits Measurement Are we getting measurable value? Governance: Executive Council Tools: Value maps, Program metrics Governance: Release Management Council Tools: Project gate checklist Are we doing them the right way? Architecture and Approvals Are we getting them done? Project Efficiency Governance: Project Steering Committee Tools: Status reports, Project time system 4

PORTFOLIO MANAGEMENT IS PROCESS 1. New Request 2. Proposal Collect Metrics 3. Council Approval 4. Investments In Flight 6. Closed 5 5. Steering Committee Review

GOVERNANCE MODEL IS KEY Strategic Alignment Review business cases; approve/reject projects Funding: external spend for projects Members: business unit leaders Meets: Monthly Set priorities and guidelines; approve or reject projects Funding: cross functional and large investments Members: executives Meets: Quarterly Benefits Measurement Business Council Executive Council 6 Architecture Approvals Review gates and deliverables Members: project managers, support staff, architects Meets: Weekly Release Management Committee Review project health and new projects Funding: internal initiatives Members: department heads Meets: Weekly Steering Committee Project Efficiency

FOCUS ON MEASUREABLE RESULTS Executive Directive Ensure all investments document measurable benefits Present all approved investments to the Executive Council Benefits Quantified Revenue Growth ($) Cost Savings ($) Revenue Impact ($) Cost Avoidance ($) Productivity Savings ($) 7 Benefits Measurement Metrics designed to measure benefits after deployment Ownership and frequency defined for metrics collection Benefit measurements compared against business case Results reported back to executives and stakeholders

DELIVER VALUE THROUGH METRICS ACCURATE & CONSISTENT Business cases Product and Resource plans Weekly status reports Product specs Time keeping systems Customer surveys Data Metrics Revenue/Cost savings delivered Cost and Schedule variances Customer satisfaction ratings Productivity savings RELIABLE VALUABLE Marketing campaigns Customer newsletters Sales meetings Internal all hands meetings Executive committee briefings Message 8

USING METRICS TO DIFFERENTIATE In a competitive environment, meaningful differences between similar products or services are best determined by using metrics. Specifications are valuable, but may not always tell the whole story Appearance alone is not enough to determine value 9

MEASURING BENEFITS NEW CRM DEPLOYMENT EXAMPLE SCENARIO #1: DEPLOY NEW CRM PRODUCT AND COMPARE BUSINESS OUTCOMES BEFORE AND AFTER DEPLOYMENT Business Outcome Description Target Sales Orders Booked Order Processing Time Lead Conversion Rate Number of customer orders processed and revenue booked Time taken for leads to be converted into booked orders Percentage of leads converted into booked orders 25% Increase 20% Decrease 15% Increase Business Outcome Baseline Target Actual Sales Orders Booked 1000 25% Increase = 1250 1500 Order Processing Time 30 days 20% Decrease = 24 22 days Lead Conversion Rate 20% 15% Increase = 23% 25% 10 The data displayed here is for informational purposes only and does not represent actual business results.

MEASURING BENEFITS CRM ENHANCEMENT EXAMPLE SCENARIO #2: DEPLOY ENHANCEMENTS TO EXISTING CRM PRODUCT AND COMPARE METRICS BEFORE AND AFTER DEPLOYMENT Metrics Description Target Number of Clicks Processing Time Number of mouse clicks required to price an order in the CRM system Time to create a customer quote using the CRM system 5 clicks 15 minutes Metrics Baseline Target Actual Number of Clicks 20+ clicks 5 clicks 5 clicks Processing Time 25 minutes 15 minutes 5 minutes 11 The data displayed here is for informational purposes only and does not represent actual business results.

MOBILE APPLICATION: VALUE MAP Real-time Access to Sales Information Faster Response to Customer Inquiries Increased Sales Rep Productivity Savings Increased Customer Satisfaction Increased Booked Orders Sales Mobile App Released New Sales Capability Created Reduced Calls for Sales Support Center Maximize Use of Mobile Technology Decreased Sales Support Cost Increased Innovation Increased Brand Recognition 12

PRODUCT DELIVERY MATURITY: LEVELS 1 & 2 LEVEL 1: CHAOS Late Over budget Outcomes are unpredictable Unhappy customers Certain level of unpredictability Issues and risks still unacceptably high LEVEL 2: REPEATABLE 13

PRODUCT DELIVERY MATURITY: LEVELS 3 & 4 LEVEL 3: DEFINED Efficient Fairly adaptable to changing needs LEVEL 4: MANAGED Creative Fully adaptable to changing needs 14

PRODUCT DELIVERY MATURITY: LEVEL 5 LEVEL 5: OPTIMIZED 100% On time delivery 100% Customer satisfaction 100% Efficiency in processes 15

IN CLOSING If you try to please everyone, you will fail! Keep things simple the more complicated it gets, the less adoption we see Follow the 80/20 rule realize 80% benefit with 20% investment Learn from the past, Set vivid, detailed goals for the future, and live in the only moment of time over which you have any control Now! Denis Waitley Work Smart Enjoy the journey and have fun 16