PIM Benefits in Global Sales Channel-Based Model

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Polycom SoundStation

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Market Leadership Across the Line

Group video systems: 40% shareFrost & Sullivan, April 2008

Video network infrastructure: 25% shareFrost & Sullivan, April 2008

Enterprise Wi-Fi handsets: 39% shareInfonetics, Sept 2008

Table-top voice conferencing systems: 86% share Frost & Sullivan, 2008

Voice collaboration service provider infrastructure: 23% shareFrost & Sullivan, Sept 2008

VoIP handsets with independent VoIP providers: 50% NA share Frost & Sullivan, Feb 2008 (50% Share for North America among independents)

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Collaboration Solutions from Polycom

Conference Platforms SecurityManagementRecording &

Streaming

HDX 8000HDX 7000 HDX 9000 RPXTPXHDX 4000

MGC SeriesRMX Series

RSS 2000

VMC 1000DMA 7000 / CMA 5000 VBP Series

SoundStation IP 7000SoundPoint

IP 670ApplicationsPolycom

Communicator

CMAClient

SoundStructure

Infrastructure & Applications

Voice

Telepresence

CX700 SpectraLink & KIRK Wireless Telephones

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What’s inside

Envisioned BenefitsProcess for picking the right vendor for implementationHow the roadmap was developed to drive ROI

The challenges faced in a Global Channel sales modelBusiness Need for PIM and Data Governance

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The challenges faced in a Global Channel sales model

Communicating Product offerings, availability and changes to a broad audience Lack of scale in communicationInability to get information on demandComplex Product and Pricing options• Each product line has country specific configuration options,

services and availability • Conduct business in 5+ currencies Globally

Difficulty understanding Product offerings and interoperabilityKnowing the Install Base• What products do our end customers use, how are they used?

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Other Pain Points

Data inaccuracies and inconsistencies in internal systems and presentation to consumers of the data Manual,

Spreadsheet-based process inefficient and error-proneValidation rules inconsistent and undocumented

Inconsistent compliance checks create legal exposure

Large volumes of new product data are hard to keep up with

Synchronization and integration of systems due to acquisitions

No Data Governance structure• No prescribed taxonomy and attributes

• No prescribed business process across product lines

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What our partners are sayingPartner 1“Feels they are losing 3 Million per

quarter by not being fully ‘operational’

Partner 2“Will simply stop selling Polycom if we

don’t address these basic issues of clear pricing policies and more effective tools”

Partner 3“We hire a temp every quarter to input

your price list into our system and we don’t have to do that with any other vendors price list.”

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Current State

80 + products 30,000 Parts9 published price lists in 2 formats per month~ 22 partner specific price lists per monthProduct Data Managed and stored in desperate systems• Capturing 80% of the product attributes required today

Numerous partner unique price lists generated in field or at partner site per month25+ people submit price add/change requests monthly1 person in Pricing Operations supports these requestsManual process, opportunity for error, inability to address all partner specific requirements Multiple spreadsheet based approach and data manipulation

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Example of Discount Structure

New Tiers Old Cats NA CALA EMEA APAC Planned Product Slottings EMEA DISTTier.1 5% Training & Telepresence?

Tier.2 Trn.1 10% 8% 10% 10% Global Services Products, PLC - RPX or TPX Implementation services / RPX or TPX Polycom branded / RPX or TPX VNOC services Maintenance services

Tier.3 15%

Tier.4 20% 20% 20% 20% Global Services Products All Installation and Implementation Services / Polycom Branded Maintenance Services / Polycom Branded Training Services

Tier.5 Acc.1, Acc.2, Acc.3, Acc1/TR5 TP1 25% 23% 23% 20% Video, Audio Accessories, VSX & HDX Accessories

Tier.6 Aud.2, Aud.3 30% 28% 28% 25% SoundPoint Pro SE-220, SoundPoint Pro SE-225,VoiceStation 100, V700

SoundPoint Pro SE-220, SoundPoint Pro SE-225,VoiceStation 100 15%

Tier.7 Sw.1, Vid.2, Vid.3, Pdc.8 35% 33% 35% 30% GMS, PathNav, ReadiManager SE200, VMC 1000, HDX Exec Collection, VSX 8000 Exec Collection, PVX, RAS 200A, RAS 200I

Via Video, VS SP and EX, VS 4000 Exec Collection, iPower 9000 Exec Collection 5%

Tier.8 iPWR.1, iPWR.3, NS.2, Vid.4/TR8, Aud.4 40% 38% 38% 40% HDX 4000, HDX 7000, HDX 8000, HDX 9000, HDX Media Center, MGC 25, VSX 7000, VSX 8000, VSX 3000, V500, V700, Vortex, RSS 2000, V2IU

iPower 9000, VSX 7000

Vortex

5%

7%

Tier.9 Aud.5, NS.1 45% 43% 41% 40% SoundPoint IP, MGC 50/100, RMX 2000, Web Commander SoundPoint IP 5%

Tier 10 Aud.6 50% 48% 45% 43% SoundStation IP SoundStation IP 5%

Tier.11 Aud.1, Aud.7, Aud.10 53% 51% 45% 43% Transitionary - SoundStation Premier, SoundStation VTX 1000, Soundstation Transitionary - SoundStation Premier, SoundStation VTX 1000, Soundstation 5%

Tier.12 55%

Tier.13 Vid.1 59% 57% 45% 45% Transitionary - FX, VS4000, MP, 323, VS128, Modules Transitionary - FX, VS4000, MP, 323, VS128, Modules 5%

Tier.99 Vid.99, Aud.99, ACC.99, SW.99, iPWR.99, NS.99 0% 0% 0% 0% Accessories - All Divisions, Global Service Products - Partner Branded Maintenance

Services / RPX or TPX Partner branded Maintenance services

50 +

Spreadsheet based, 30K lines of information?

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PIM UniverseProduct ManagementProduct & Pricing Info; Compare data – End of Life/ Weights & Dims

Legal/SalesPartner Specific

Contract Specification

Product Information Management

ComplianceAvailability / 508 /

JITC etc

OperationsCompare data-End-

of-Service; lead time, industry codes, etc.

Partners

Product/Pricing Information,

Compare data, Filter/Search

Capability

Sales

Product/Pricing Information,

Compare data, Filter/Search

Capability

Other Internal Users

Access, track, maintain product attribute data

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Business Objectives

Bring products to market faster by leveraging product information & streamlining new item introduction & maintenance processes across line of businessImprove overall product data quality through system validation and workflows to enforce business rules for creation & management of product informationReduce product information management costs by eliminating duplicate data entry into multiple repositories & increasing re-use of product informationEnable Global Sales Channel to be more effective by providing information on demand the way they want itProvide for a single view of data across lines of business, enforcing data governance of structured and unstructured content

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PIM At-A-Glance

• By Product / Service

• By Theater / Country

• By Partner• Multi currency• Associations for

quick update• Trees• Accounting

Codes etc

• Improves Business process

• Increase throughput and accuracy

• Decrease or eliminate need to create partner specific price lists

• If partner specifics still needed, improve our ability to support

• Feature / Function Compare

• Tie attributes to products; Store centrally then USE the data for sales tools, training, etc

• “Availability” –all levels

• 508• BAA• JITC• Energy Star• COO• TAA

• Provides easy update and search capability for product Availability info

• Provides central repository for and search capability for other Compliance info

• End of Sale Date• End of Service

Date• Software License

availability• Software version• Maintenance

Support

• Increase accuracy of product support information

• Improve ability to support partners

• Provide information needed to stay in front of parts / Field replacement unit

• Pricing

• Discounting

• None Standard terms

• Provides Sales Quick Price, & Compliance Reference

• Allow Sales to Search Price List

• Provide ability to do Product Comparisons

• Decrease or eliminate need to generate partner specific price lists

• Partner Discount

• Partner Notification requirements

• Exhibit A product list

• Other Partner Specific requirements

• Allows Partners to filter the Price List as needed

• Allows Partners to search Price List as needed

• Provides Easy Access to Compliance data

• Provide ability to do Product Comparisons

• Product Name,• Product

Number• S/L Description• Tied to BOM• Weights /

Dimensions• Lead Time

• Ability to easily monitor product and price information

• Productivity improvement

• Clean data

• Better governance

PRICINGSALES

ENABLEMENTCOMPLIANCE

OPERATIONS

/ SERVICES

POLYCOM

SALES

PARTNER

SALESPRODUCT

DA

TAB

ENEF

IT

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Phase 1

Focus on improving communication to our extended sales teams (Channel and Polycom sales)• Standardize product information across lines of business• Capture, create, and manage, information about the products

within a PIM platform• Capture, Manage and maintain partner specific contract discount

and discount within a PIM platform• Implement Product Information Portal

• Easy access to find, understand product offerings globally via our partner portal

• Enable sales tools to compare products, understand available product offerings and comparatives

• Make 30,000 products appear as 80 products

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PIM Benefits PIM Partner Portal allows a partner to:• Sort / Filter pricing information by country,

product, etc• Include product attributes needed for

partners pricing system• Get relevant, current pricing information in

the hands of partner sales force quickly and in the format they require

Added system flexibility will free Partner and Polycom sales folks to sell rather than chase pricing data • PIM solution becomes the keeper of IP vs. an individuals own knowledge of

the product offeringsVastly improved data capture and consistency• Captures product attribute data at the source• Removes redundancy and manual steps from pricing update process• Provides better cross system sharing of product information

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Envisioned Benefits ROI

Reduced Integration CostsInfrastructureManual

Reduced duplication costsGreater operational efficiencies1% productivity improvement~ 10000 sales users (including channel sales) Conservatively;• 1% improvement in efficiencies in $1 Billion in revenue

$10M Revenue - If 1/3 of sales force improves 1%$5M Margin Contribution per Year (@ 50% Margin)

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Envisioned Benefits

Increase data integrity by applying automatic business validations and pricing algorithms, hence reducing cost of maintaining and fixing the dataAbility to setup a Data Governance structure

Streamlined business processes for NPI expected to reduce lifecycle by at least 10%Conservatively reduce cost of processing NPI’s by at least 10%Reduced product outages

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Selection Process followed by Polycom

Engage a MDM SME to work with Business to gather functional and non functional requirementsShortlist vendorsInterview the vendors & demos Invite the top 3 vendors who closely match the requirements to do an onsite or remote demo with actual sample dataLet Business and IT both rate the demo as it is easier to see and relate to company dataLook at all other intangibles and make a recommendation

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Selection Process Benefits

No need to evaluate each and every vendor in a RFI/RFP processShorter list of vendors to deal withShorter Selection ProcessQuick start!

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Roadmap for quick ROI

Identify and work with right partner with expertise to help build out the solutionIdentify core team that is a blend of IT and BusinessIdentify core requirements that can bring immediate valueScope implementation that can be implemented in 3-4 months to start seeing the benefitsReduce risk with iterative approachBuild on top of the initial frameworkExpand to other groupsExpand Data Governance structure and framework across the enterprise based on lessons learned during the process

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Thank You!

Questions