Mike Todd Executive Director of Operations Lenovo Leveraging OnDemand Compensation Management in a Global Environment

Company Overview Challenges with Compensation Management Callidus Partnership Solution Lessons Learned Summary Agenda

Company Overview

Challenges with Compensation Management

Callidus Partnership Solution

Lessons Learned

Summary

Company Overview

Company Overview

Lenovo Then and Now Lenovo in 1984 Founded by 11 researchers Initial Investment: US $25,000 Lenovo Today 20,000+ employees Revenue: US $14 billion+ Company Overview

Lenovo in 1984

Founded by 11 researchers

Initial Investment: US $25,000

Lenovo Today

20,000+ employees

Revenue: US $14 billion+

Lenovo’s Core Innovations… Design Ease of Use Total Cost of Ownership Reliability & Quality Security Company Overview

Since 2005, Lenovo has… closed the acquisition of the IBM PC Division in record time became a $14 billion global PC leader made an unprofitable business profitable reached record high share in China accelerated innovation across the product line increased customer satisfaction Company Overview

Page 11 of 13 Lenovo Completing Second Massive Hardware Delivery for Beijing 2008 Games 3/29/07 Lenovo Visibility Company Overview

Challenges with Compensation Management

Challenges with Compensation Management

Challenges with Compensation Management What we had… Large, complex, inflexible What we have now… Flexible, simplified, reliable Where we are going… Full analytics capability, more frequent reporting

What we had…

Large, complex, inflexible

What we have now…

Flexible, simplified, reliable

Where we are going…

Full analytics capability, more frequent reporting

Legacy System Was too complex Multiple processes and systems, no single business owner No sales plan flexibility (quarterly sales plan support) No integrated issue management Extended processing time (3-4 days) Why Callidus? Single process / system Very flexible – Supports Lenovo business model Compensation statement based on input by Lenovo Sellers Integrated Issue management Provides Technical and Business Ops Support (OnDemand) Challenges with Compensation Management

Legacy System

Was too complex

Multiple processes and systems, no single business owner

No sales plan flexibility (quarterly sales plan support)

No integrated issue management

Extended processing time (3-4 days)

Why Callidus?

Single process / system

Very flexible – Supports Lenovo business model

Compensation statement based on input by Lenovo Sellers

Integrated Issue management

Provides Technical and Business Ops Support (OnDemand)

Maintain IBM Legacy Process and System Accelerate Enterprise Bus SAP Strategic Solution Implement Tactical (non-IBM) Solution Select Deployment Strategy Implement Tactical (non-SAP) Solution for US Lenovo Installed - Lenovo Managed Vendor Hosted - Lenovo Managed Vendor Hosted - Vendor Managed The Decision Making Process Functionality Architecture Alignment Select Vendor Solution Select Outsourcing Model Challenges with Compensation Management Time Cost

Callidus Partnership Solution

Callidus Partnership Solution

True Comp Suite Data privacy/security Business controls support Flexibility Application expertise Global OnDemand staff Solid IT infrastructure 24/7 Operations support Simplified sales reports Issue management Analytics reporting Business controls User satisfaction improvement Detailed Operations Handbook Single managed infrastructure Lenovo-Callidus alliance Lenovo Callidus Our Partnership Solution Accurate commission payments Attainment reporting Business analytics Flexibility Rapid deployment Regain sales confidence Align to WW HR IT Requirements Capabilities Callidus Partnership Solution

True Comp Suite

Data privacy/security

Business controls support

Flexibility

Application expertise

Global OnDemand staff

Solid IT infrastructure

24/7 Operations support

Simplified sales reports

Issue management

Analytics reporting

Business controls

User satisfaction improvement

Detailed Operations Handbook

Single managed infrastructure

Lenovo-Callidus alliance

Accurate commission

payments

Attainment reporting

Business analytics

Flexibility

Rapid deployment

Regain sales confidence

Align to WW HR IT

January 2007, Americas (US/Canada/Latin America - 13 countries) April 2007, EMEA Phase 1 (6 countries) July 2007, EMEA Phase 2 (15 countries) November 2007, Canada April 2008, Asia Pacific 2 nd half of 2008 EMEA/US/Latin America May 2007, Asia Pacific (15 countries) October 2007, EMEA Phase 3 (9 countries) Lenovo’s Deployment Schedule of Callidus Lenovo Strategic Begin using True Analytics Begin implementing Callidus Territory Management Callidus Partnership Solution

Begin using True Analytics

Begin implementing Callidus Territory Management

Lessons Learned

Lessons Learned

We were successful because Accountability Worldwide business owner Vision Detailed project plan with clear milestones Execution Onsite project manager Frequent checkpoints Challenges we overcame Knowledge differences Country “unique” requirements Privacy laws Non ASCII character sets Currency code conversions Data management / reporting Lessons Learned

We were successful because

Accountability

Worldwide business owner

Vision

Detailed project plan with clear milestones

Execution

Onsite project manager

Frequent checkpoints

Challenges we overcame

Knowledge differences

Country “unique” requirements

Privacy laws

Non ASCII character sets

Currency code conversions

Data management / reporting

Summary

Summary

Necessity to move from a complex / inflexible system Single vs. multiple processes / systems Worldwide business owner led the project Short time frame to make the transition Strong teamwork Results: Accurate commissions payments Simplified / understandable reporting Improved Customer / user satisfaction Improved efficiency through one system In conclusion… Summary

Necessity to move from a complex / inflexible system

Single vs. multiple processes / systems

Worldwide business owner led the project

Short time frame to make the transition

Strong teamwork

Results:

Accurate commissions payments

Simplified / understandable reporting

Improved Customer / user satisfaction

Improved efficiency through one system