This is the slide deck we used for our final presentation at APEX Global 2010. We won 1st place in our division and the most innovative solution.

1. Terra Firma
Medical Systems
To: Stephanie Clark
By: Annova Consulting
William Trudau
Awin Ye
Matt Baril
Date: April 20, 2010
Annova
Consulting

2. Executive Summary
Consolidate
Applications
Retain
Essential
Centralize Staff
ERP
STAR Strategy
Outsource Outsource
Data Center Network
Management
Annova Consulting
2 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

3. Executive Summary
Consolidate
Applications
Retain
Essential $55 M Cost Savings
Centralize Staff
ERP
Enable Technology to
STAR Strategy Add Business Value
Outsource Outsource
Data Center Network
Management
Annova Consulting
3 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

4. Executive Summary
―Cloud Projects
Technologies‖
Consolidate
Applications
Retain
Centralize
Essential
ERP
Staff
STAR Strategy
Outsource Outsource
Data Center Network
Management Annova Consulting
4 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

5. Executive Summary
$7 Billion in
Revenues in 2015
―Cloud Projects
Technologies‖
STAR Strategy
Annova Consulting
5 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

6. Agenda
• Analysis
• Symptoms and causes
• Recommendation
• Business process diagram
• System architecture diagram
• Project timeline & execution plan
• Risk analysis & mitigation plan
• Resource requirements & financial analysis
• Conclusion
Annova Consulting
6 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

7. Terra Firma’s Operations
Annova Consulting
7 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

8. Terra Firma’s Operations
• 22 field offices
• Over 5200 employees
• Will be merged with Siemens in August
• Products and services
• CT
• MRI
• X-ray
• Nuclear medicine
• Ultrasound
• PET
• Technical support
• System integration services
• Packaged software products
• DigiRayZ
Annova Consulting
8 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

9. Terra Firma as a Public Company
Being acquired by a publicly traded company means things will be
different for Terra Firma now.
Sarbanes-Oxley Act
Greater management responsibility. A strong
ERP solution to support compliance as
paramount.
Increased Exposure
More transparency in the company’s
operations. Financial information needs to
be reported in Siemens consolidated report
More Shareholders
Possibility of more control over multiple
owners, possibly with conflicting directions.
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

10. Sustaining Profitability
Current Line of Business Current CAGR Current Line of Business Current CAGR
Flat panel X-ray detectors 7.28% System Integration Services 20.68%
Other CT/PET/SPECT detectors 13.94% Packaged Software Products 51.19%
Technical support contracts 8.57% DigiRayZ Product Line 48.36%
Annova Consulting
10 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

11. Terra Firma Revenue Breakdown
Revenue (2005) Revenue (2009)
Hardware Hardware
Software and Services Software and Services
18% 33%
67%
82%
Compound Annual Growth Rate (2005-2009)
Hardware 9.45%
Software and Services 15.15%
Annova Consulting
11 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

12. Terra Firma’s Core Competency
High quality
Terra Firma’s Core
design Competency
Knowledge
Innovative
of detector
technology
physics &
generation
the biological
process
processes
Annova Consulting
12 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

13. It’s the Iceberg
The network crash and the
discovery of the database
issues are just the tip of the
iceberg. They are merely
symptoms of what is
underneath.
Annova Consulting
13 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

14. Symptoms and Causes
Communication Corrupted DB Inconsistent
Standstill Data losses Missing logs
breakdown tables data
Symptoms
Root Cause
Annova Consulting
14
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

15. Symptoms and Causes
Communication Corrupted DB Inconsistent
Network Architecture
Standstill
breakdown
Data losses Data
Missing logs Center
tables data
Symptoms
Main &
Router Network
Second
Failure Crash
switch failure
Application never
Redundant
tested in
system Legacy systems
production
(architecture)
environment
Limited Not enough 200
budget staff applications
Lack of Too much
Lack proper
emphasis on High attrition influence from
PM standards
IT executives
IT is used to run the business and not grow Root Cause
Annova Consulting
15
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

16. Current Situation
Where you want
Current Situation Obstacles Recommendation
to be
Sales growing
Router &
at significant
switch outage
high rate
Take away the
STAR Strategy obstacles and
increase Terra
Firma’s
competitive
Network crash edge
IT only used to
18 hours
run the
costing
business
NZD25M
Annova Consulting
16 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

17. Recommendation
Consolidate Applications
(with a 4-to-1 ratio)
Retain
Centralize ERP Essential Staff
(with criteria laid out) (reduce regrettable
STAR Strategy attrition)
Outsource Outsource
Data Center Network Management
(Focus efforts into GTB) (to local external partners)
Annova Consulting
17 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

18. Integrate & Focus
Set Central
Criteria ERP
Consolidate Core Data
Select
Applications
Integrate Focus Competencies center
Eliminate Network
Annova Consulting
18 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

19. Consolidation & Integration
Reduce from 200 applications to 50
Complexity
ROI
Cost
Resources Availability
Risk
Streamline Processes
Annova Consulting
19 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

20. Integration Criteria Example
Criteria Proportion Visual Studio Eclipse
Return on Investment 25% 15 25
Criticality 20% 20 20
Sustainable 20% 10 20
Frequency of Use 15% 15 15
Scalable 12% 6 12
Learning Curve 8% 8 4
Total: 100% 74% 96%
Annova Consulting
20 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

21. Integration Criteria Example
Criteria Proportion Visual Studio Eclipse
Return on Investment 25% 15 25
Criticality 20% 20 20
Sustainable 20% 10 20
Frequency of Use 15% 15 15
Scalable 12% 6 12
Learning Curve 8% 8 4
Total: 100% 74% 96%
Recommend
to keep
Annova Consulting
21 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

22. Moving on to Focus
Set Central
Criteria ERP
Consolidate Core Data
Select
Applications
Integrate Focus Competencies Center
Eliminate Network
Annova Consulting
22 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

23. IT Architecture - Redundant
Annova Consulting
23 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

24. IT Architecture - Duplicate
Annova Consulting
24 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

25. Siemens Current Technologies
Annova Consulting
25 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

26. New IT Architecture
Annova Consulting
26 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

27. New IT Architecture
Annova Consulting
27 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

28. New IT Architecture
Annova Consulting
28 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

29. Outsourcing
Issue: Router, primary and secondary
switches failure
Network
• Release an RFP
Management
Issue: Missing log files, corrupted
tables, inconsistent application data
Data Center • Move to Siemens Data Warehousing
By outsourcing non Core Competencies, Terra Firma will free
resources to undertake more important value added projects
Annova Consulting
29 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

30. Value Added Projects
Cloud Storage Cloud Collaboration
Value
Grid Computing Proposition Mobile Technology
Analytics/Data mining Compression Tools
Annova Consulting
30 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

31. Mobile + ―Cloud-boration‖
Project
MyCloud
Support and
collaboration
between doctors
and specialists
which are
location and time
insensitive using
virtual private
cloud technology
Annova Consulting
31 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

32. Online Sharing
Annova Consulting
32 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

33. Mobile + ―Cloud-boration‖
Project
My Cloud
support and
collaboration
between doctors
and specialists
which are
location and time
insensitive using
virtual private
cloud technology
Annova Consulting
33 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

34. Grid Computing
Annova Consulting
34 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

35. Mobile + ―Cloud-boration‖
Project
My Cloud
support and
collaboration
between doctors
and specialists
which are
location and time
insensitive using
virtual private
cloud technology
Annova Consulting
35 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

36. Mobile Access
Annova Consulting
36 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

37. Reduce Regrettable Attrition
Exciting
Projects
Work Life Reduce
Incentive
Balance Regrettable
Attrition Programs
Software
Division
Annova Consulting
37 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

38. Implementation – Outsource Network Management
Start date: April 30th 2010
End date: March 3rd 2011 Consolidate
Applications
Resource Allocation: 50 hcm Retain
Centralize ERP
Essential Staff
Outsource Outsource
Data Center Network Management
Annova Consulting
38 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

39. Implementation – Outsource Data Center
Start date: April 30th 2010
End date: February 10th 2011 Consolidate
Resource Allocation: 67 hcm Applications
Retain
Centralize ERP
Essential Staff
Outsource Outsource
Data Center Network Management
Annova Consulting
39 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

40. Implementation - Centralization
Consolidate
Applications
Start date: April 30th 2010
Retain
End date: March 22nd 2011 Centralize ERP
Essential Staff
Resource Allocation: 53 hcm
Outsource Outsource
Data Center Network Management
Annova Consulting
40 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

41. Implementation – Consolidation
Consolidate
Start date: April 30th 2010 Applications
End date: June 10th 2011 Centralize ERP
Retain
Essential Staff
Resource Allocation: 135 hcm
Outsource Outsource
Data Center Network Management
Annova Consulting
41 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

42. Implementation Timeline
ID T ask Name Duration April May June July August September
October NovemberDecemberJanuary February March April May June July August September
Octob
1 Outsource Network 222 days
2 Assign staff for task 2 days
3 Write RFP for Network Maintenance 14 days Assigned staff
4 Submit RFP for approval 7 days Assigned staff
5 Wait for Proposals and prepare change 21 days Assigned staff
6 Evaluation and Selection of network vendor 63 days Clark,others
7 Negotiations 21 days Assigned staff
8 Signature 3 days Clark
9 T ransfer Maintenance 91 days Vendor & Various
10 T raning and Seminar of new change 7 days Vendor & Various
11
12 Outsource Data Center 143 days
13 Discuss Data Centre Solution with Oracle 21 days Existing Data Center Head
14 Evaluate costs and benefits of options 21 days Existing Data Center Head & Clark
15 Negotiations 14 days Existing Data Center Head
16 Draft up SLA for Clark's Approval 7 days Existing Data Center Head
17 Signature of SLA and start transitioning 3 days Clark
18 Communication and T raining for users 14 days Various
19 Check and suggest improvements 63 days Various & Data Maintenance Team
20
21 Centralize ERP 227 days
22 Appoint porject team 3 days Clark
23 Analyze and Plan centralization 14 days Proj ect Team
24 T raining (phased by functional departments) 60 days Proj ect Team
25 Phased centralization (Melbourne) 120 days Proj ect Team
26 Initial testing and adjustment 30 days Proj ect Team
27 Phased centralization (HQ) 60 days Proj ect Team
28 Concurrent testing and adjustment 70 days Proj ect Team
29 Parallel Systems 210 days IT & Proj ect Team
30
31 Consolidate Applications 293 days
32 Pick consolidation team members (Committee) 14 days Clark & Keats
33 Gain consensus on selection criteria 7 days Consolidation team
34 Select engineering team 35 days Committee
35 Application analysis and score 91 days Committee
36 Confirm selected systems to keep, merge, or drop 21 days Committee
37 Communicate change to stakeholders 35 days Committee & Enginereing
38 Back up data on systems being modified 28 days Engineering & Various
39 Design and Look for Best Practice to consolidate 35 days Engineering
40 Decide on choice to implement 14 days Committee
41 Implement changes to systems 63 days Engineering
42 T hrough testing and maintenance 91 days Engineering
Annova Consulting
42 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

43. Business Risks & Mitigation
Business Risk Prob. Impact Mitigation
Increasing competition in Continuous innovation and
L M
medical imaging services valuable sales force
Project requesting a total
Apply criteria to determine
budget over allocated M M
priority to allocate budget
amount
Create magnet effect that
Attrition for talented staff Terra Firma is the place to be
L M
stays high with exciting projects and
incentives
Discuss and create periodic
Siemens IT control M M
reports
US Health Insurance
Portability and M M Data encryption and SLA
Accountability Act
Annova Consulting
43 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

44. Technical Risks & Mitigation
Technical Risk Prob. Impact Mitigation
ERP centralization Implement strict PM standards
project over budget L H and increase frequency of senior
over time management reporting
Employee resistance Communicate corporate goals,
M M
for ERP change create champion program
Make sure data backups are
Data center outage L M
usable
SLA, ensure implementation
Data security L M
provided
Network on-site Hire in-house network specialists
M M
support to manage vendor relationships
Latency on cloud Data replication, synchronization,
M M
computing data de-duplication
Annova Consulting
44 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

45. Cost Estimation
Component Cost in USD NPV in USD
Outsource Network Maintenance 4M 5M
Outsource Data Center 8M 6M
Centralize ERP 3M 3M
Consolidate Applications 3M 10M
Annova Consulting
45 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

46. Profitability Analysis
Net Income Forecast
$1,600
$1,451
$1,400
$1,200
$1,073
Millions of NZD
$1,000
$792
$800
$582
$600
$375
$400
$268
$200
$-
2010 2011 2012 2013 2014 2015
Year
Measure Performance
CAGR 33%
Discount Rate 16%
Cost Savings $55 M
Annova Consulting
46 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

47. Growth Potential
Emerging Cloud Technologies
35
30
25
Millions of NZD
20
15 "Cloud boration"
Mobile Sharing
10
5
0
2012 2013 2014 2015
Year
CAGR Performance
“Cloud-boration” 35%
Mobile Sharing 50%
Business Value Considerations High
Potential High
Market Transferability Exceptional
Annova Consulting
47 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

48. Future of Health Care
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

49. To London
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

50. To Rio
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

51. To Tokyo
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

52. To Vancouver
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

53. Health Care 2015 Leader
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

54. Conclusion
Consolidate
Applications
Retain
Essential
Centralize Staff
ERP
STAR Strategy
Outsource Outsource
Data Center Network
Management
Annova Consulting
54 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

55. Conclusion
Consolidate
Applications
Retain
Essential $55 M Cost Savings
Centralize Staff
ERP
Enable Technology to
STAR Strategy Add Business Value
Outsource Outsource
Data Center Network
Management
Annova Consulting
55 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

56. Conclusion
―Cloud Projects
Technologies‖
Consolidate
Applications
Retain
Centralize
Essential
ERP
Staff
STAR Strategy
Outsource Outsource
Data Center Network
Management Annova Consulting
56 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

57. Conclusion
$7 Billion in
Revenues in 2015
―Cloud Projects
Technologies‖
STAR Strategy
Annova Consulting
57 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

58. Index
Additional Cloud
Presentation
Projects Computing
Siemens
Financials Others
Merger
At a Glance
Annova Consulting
58 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

59. Index - Appendixes
 IT Merger Process  Priority matrix for cloud
 Siemens  Project 1 – ―Cloud-boration‖
 Siemens Merger History  More on ―cloud-boration‖
 IT Merger Issues  Project 2 – mobile technology
 IT Merger Tools  Project 3 – cloud storage
 Cautions against cloud computing  Project 4 – grid computing
 Risks of a public cloud  More on grid (private + public)
 Private cloud benefits  Project 5 – non-lossy compression
 Technical feasibility  Project 6 – data mining
 Cloud technology (usable)  Common cloud adoption risks
 Notes (Cloud tech could be used)  Spectrum of private + public cloud
 Business Cloud  Determine if cloud is right
 Selection of future IT projects  Cloud Computing - Latency
 Partnering consulting  US health care regulations
 Calculation of discount rate  Vendors and solutions
 Stakeholder analysis  Commodity VS core competency
 ―Cloud-boration‖ timeline  Integration criteria
 BCG matrix star position  Network consultant selection criteria
 Grid computing  No layoffs required
 Questions for cloud computing  Financial information
 Core competency criteria  IT budget
 Company introduction  Industry beta value
 HR Knowledge Management  Star strategy NPV
Annova Consulting
59 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

60. Index - Presentation
 Terra Firma’s Operations  Outsourcing
 Revenue Breakdown  Value Added Projects
 Core Competency  Project MyCloud
 Symptoms and Causes  Reduce Attrition
 Current Situation  Implementation Timeline
 Recommendation  Business Risk
 Integrate & Focus  Technical Risk
 Consolidation & Integration  Cost Estimation
 Integration Criteria Example  Profitability Analysis
 Decentralized Architecture  Growth Potential
 Redundant IT Architecture  Conclusion
 New IT Architecture
Annova Consulting
60 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

61. Index – New Projects
 Risks of a public cloud  Project 1 – ―Cloud-boration‖
 Private cloud benefits  More on ―cloud-boration‖
 Technical feasibility  Info in MyCloud
 Cloud technology (usable)  Project 2 – mobile technology
 Cloud tech could be used  Project 3 – cloud storage
 Business Cloud  Project 4 – grid computing
 Selection of future IT projects  More on grid (private + public)
 Partnering consulting  Project 5 – non-lossy
 ―Cloud-boration‖ timeline compression
 BCG matrix star position  Project 6 – data mining
 Grid computing  Common cloud adoption risks
 Questions for cloud computing  Spectrum of private + public
 HR Knowledge Management cloud
 Priority matrix for cloud  Determine if cloud is right
 How to Add ―Smart‖ Value  Cloud Computing - Latency
 Project Selection and  US health care regulations
Profitability Analysis  Star strategy NPV
Annova Consulting
61 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

62. Index – Cloud Computing
 Cautions against cloud  Priority matrix for cloud
computing  More on grid (private + public)
 Risks of a public cloud  Common cloud adoption risks
 Private cloud benefits  Spectrum of private + public
 Technical feasibility cloud
 Cloud technology (usable)  Determine if cloud is right
 Notes (Cloud tech could be  Cloud Computing - Latency
used)  US health care regulations
 Business Cloud  Vendors and solutions
 Selection of future IT projects  Grid computing
 Partnering consulting  Questions for cloud computing
 ―Cloud-boration‖ timeline  Info on MyCloud
Annova Consulting
62 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

63. Index - Others
 Technical feasibility  US health care
 Selection of future IT regulations
projects  Vendors and solutions
 Partnering consulting  Commodity VS core
 Calculation of discount competency
rate  Integration criteria
 Stakeholder analysis  Network consultant
 BCG matrix star position selection criteria
 Grid computing  No layoffs required
 Core competency criteria  Company introduction
 Top medical cancer  HR Knowledge
centre Management
 Science & Health daily  Action Plan for Today
 Key Medical Statistics
Annova Consulting
63 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

64. Index - Financials
 Calculation of discount rate
 Financial information
 IT budget
 Industry beta value
 Star strategy NPV
 Sustaining Profitability
 Peace of Mind – What does it Cost?
 Peace of Mind- Why that Matters
Annova Consulting
64 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

65. Index – Siemens Merger
 IT Merger Process
 Siemens
 Siemens Merger History
 IT Merger Issues
 IT Merger Tools
 Vendors + Solutions
 Siemens Data Center
Annova Consulting
65 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

66. IT Merger Process
You are here
Annova Consulting
66 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

67. Why Partner with Siemens IT Solutions
and Services
• Subsidiary relationship
• Early due diligence
• Proven integrated tools and methods –
reducing complexity, risk and costs
• Post M&A support
• IT harmonization and optimization
Annova Consulting
67 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

68. Siemens
Siemens AG is a Germany-based company engaged in electronics
and electrical engineering. The Company is an integrated
technology company with core activities in the fields of
industry, energy and healthcare. Siemens operates in more than
190 countries through six segments:
Industry, Energy, Healthcare, Equity Investments, Siemens IT
Solutions and Services, and Siemens Financial Services.
Industry, Energy and Healthcare segments are reported along
with 15 divisions, which comprise the divisions Industry
Automation, Drive Technologies, Building
Technologies, Osram, Industry Solutions and Mobility belonging
to the Industry Sector, the divisions Fossil Power
Generation, Renewable Energy, Oil & Gas, Energy
Service, Power Transmission and Power Distribution belonging to
the Energy Sector, and the divisions Imaging & Information
Technology (IT), Workflow & Solutions and Diagnostics belonging
to the Healthcare Sector. Annova Consulting
68 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

69. Siemens Mergers History
 Acquisitions and mergers  Power Technologies International (2005) — now
 mergerd with Allis-Chalmers Electrical to form Siemens- Siemens Power Transmission & Distribution, Inc.
Allis (1970s  AN Windenergie GmbH (2005) — now Siemens Wind
 Shared Medical Systems Corporation (2000) Power GmbH
 Chemtech Brazil (2001)  Wheelabrator Air Pollution Control, USA (2005); now
 Atecs Mannesmann AG (2001) including Mannesmann Siemens Environmental Systems and Services
Dematic, Mannemann Sachs, Mannesmann VDO  Bewator AB (Sweden - 2005) Security
Automotive, Mannesmann Demag Krauss-Maffei  Flender Holding GmbH (March 2005)
 Danfoss Flow Division (2003)  Diagnostic Products Corp. (2006) — now Siemens
 Bonus Energy (2004) — now Siemens Wind Power A/S Healthcare Diagnostics
 IndX Software (2004)  Kadon Electro Mechanical Services Ltd. (2006)—
 Chrysler Group’s Huntsville Electronics Corporation now TurboCare Canada Ltd.
(2004)  Kühnle, Kopp, & Kausch AG (2006) — now Siemens
 USFilter Corporation (2004) — now Siemens Water Turbomachinery Equipment GmbH
Technologies Corp.  Opto Control (2006)
 Woodlands Technology (2004)  Bayer AG -Diagnostic branch (2006)
 Photo-Scan (2004)  VistaScape Security Systems (2006)
 DASAN (South Korea - 2004)  Vai Ingdesi Automation (Argentine - 2007) Industrial
 Controlotron, USA (2004) Automation
 Alstom Industrial Turbine Business (2005)  UGS Corp. (2007)
 Jet Turbine Services (2005)  Dade Behring (2007)
 Transmitton (2005) — now Siemens Transportation  Sidelco (Quebec, Canada - 2007)
Systems UK  S/D Engineers, Inc. (2007); now Siemens
 Shaw Power (2005) Environmental Systems and Services
 Chantry Networks (2005)  Gesellschaft für Systemforschung und
 Myrio (USA/Canada - 2005) Dienstleistungen im Gesundheitswesen mbH (GSD)
 CTI Molecular Imaging (2005) (Germany - 2007)
 Evoline (2005)  SG Wasseraufbereitung und Regenerierstation
 VA Tech Group (Austria - 2005) GmbH (SG Water).[2] (Germany-2008)
Annova Consulting
69 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

70. IT Merger Issues
Systems have been known to drop out, with key data simply
vanishing. Imagine the repercussions if an overloaded system
crashes at your company, losing all account statements and
bringing your business to a halt. Problems such as these are
caused by:
 A poorly aligned IT and business strategy
 Treating IT as an afterthought rather than an early priority
 Insufficient IT due diligence
 Poor IT integration planning
 High IT complexity, risks, and costs
 Lack of M&A IT experience
 Seeing IT as merely another service to be provided
Taken from Siemens IT Solutions
Please see Getting-IT-Right_PDF_e.pdf in the package
Annova Consulting
70 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

71. IT Merger Tools
Covering every step of the integration and divestiture
processes, our M&A IT solutions and services package
is a systematic, method- and tool-based offering
comprising:
• M&A IT consulting
• IT due diligence
• IT program management
• HR M&A integration
• IT solutions for carve-outs
• IT solutions for M&A
• IT transformation
Annova Consulting
71 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

72. Action Plan for Today
1. All changes in the system have to be
approved by Clark
2. Only mandatory changes will be
implemented
3. All changes will be tested in all
environments
4. All changes must be reversible
5. Implementation of changes during off peak
times
6. All implementation of changes have to be
properly documented
Annova Consulting
72 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

73. Contingency Plan – Network Failure
• Potential Risk:
• What happens if the network crashes again?
This time the cost will be much higher and your
reputation goes down even more.
• Contingency Plan:
• Change management – disallow any untested
changes in the system unless Clark personally
approves it.
Annova Consulting
73 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

74. Contingency Plan – More Key Resignations
• Potential Risk:
• What happens if there are more key IT staff
leaving the company?
• Contingency Plan:
• With a through performance review
documentation, Clark should personally go to
each individual high performers and talk to them
in person with the exciting new projects coming
up and incentive plans to keep them. Create a
magnet effect.
Annova Consulting
74 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

75. Contingency Plan – Legislation Changes
• Potential Risk:
• What happens if the government changes the
regulations (ex. US and Europe about health
care?)
• Contingency Plan:
• Be flexible in the IT systems to adapt to any
legislative changes and ensure full compliance in
the systems.
Annova Consulting
75 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

76. Contingency Plan – Data Breach
• Potential Risk:
• What happens if some of the data were hacked
and leaked outside of the organization?
• Contingency Plan:
• Immediately seal the security point, find out
which information was stolen, create contingency
plan.
Annova Consulting
76 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

77. Contingency Plan – Natural Disaster
• Potential Risk:
• What happens if the main data center just
experienced a natural disaster? (ex. Earth
quake)
• Contingency Plan:
• Ensure the SLA is being enforced. Back up data
center in another geographic location should
have been in effect.
Annova Consulting
77 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

78. Contingency Plan – Loss of Big Customer
• Potential Risk:
• What happens if one of the big customers in
Terra Firma left ?
• Contingency Plan:
• Talk to all other customers to ensure them IT
reliability and ensure them monetary
compensation if it happens again.
Annova Consulting
78 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

79. Contingency Plan – Increased owner control
• Potential Risk:
• What happens if owners of the company
(Siemens or Frost brothers) increases control
over the IT operations?
• Contingency Plan:
• Ensure full compliance and create periodic
reports. Clarify division of duties.
Annova Consulting
79 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

80. Contingency Plan – Reorganization
• Potential Risk:
• What happens if there is a reorganization in the
IT department?
• Contingency Plan:
• Group personnel based on personal
interest, knowledge and experiences to
maximize productivity. Ensure documentation is
available for smooth transitioning.
Annova Consulting
80 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

81. Contingency Plan – Competitive Announcement
• Potential Risk:
• What happens if one of the competitors
announced an exciting project or product?
• Contingency Plan:
• Announce our own exciting projects and
products to ensure customers will stay with us.
Annova Consulting
81 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

82. Contingency Plan – Major New Technology
Announcement
• Potential Risk:
• What happens if there are major new technology
announced out in the market?
• Contingency Plan:
• Fully analyze the viability of the solution and
compatibility with existing systems. Carefully
select the ones that fit and utilize them in
systems or projects.
• We are using the new technology, but not at the
bleeding edge of the new technology.
Annova Consulting
82 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

83. Contingency Plan – Government Initiatives
• Potential Risk:
• What happens if the government announced
initiatives towards medical industry?
• Contingency Plan:
• Fully utilize government initiatives and create
contingency plan. Ensure full compliance and
efficiency of existing operations.
Annova Consulting
83 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

84. Information in MyCloud
 For privacy and security
reasons, below are the information
that will be stored in the project
MyCloud
• Patient’s scanned image
• Patient’s gender, age, and region
• Doctor’s diagnoses, treatment, and final
result
• Notice no such information as the patient’s
name or health insurance number will be
stored Annova Consulting
84 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

85. Top Medical Cancer Centers
Mayo
Clinic, Roclester Duke
Minn
Taxas UCLA
Top
Medical
Cancer
Centers
Annova Consulting
85 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

86. Science & Health Daily
• New Zealand has the lowest number of
medical specialists in the world
• That’s why our strategy makes sense
because it enables fast and easy
collaboration between specialists in the
world and is time and location insensitive.
Annova Consulting
86 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

87. Key Medical Statistics
• There are a total of 7 billion people in the
world
• 2179 medical schools in the world
• Half of the medical facilities are in the US
• 10% of US population is over 65
• The percentage is higher in Europe & Japan
Annova Consulting
87 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

88. Cautions Against Cloud Computing
Google
Tuesday August
28, 2009
LinkedIn
Source: Information Week September 1, 2009
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

89. Cautions Against Cloud Computing
Salesforce.com Phishing
Salesforce.com Scheme
Took Five Days to
Disclose Information
Monster.com Theft including Bank
Account Numbers
Over-promising and hype
Vapourware on software demos
Source: Information Week
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

90. Risks of a Public Cloud
Service Availability, capacity and performance guarantees
Uncertain Failure remediation
No transparency of provider; hidden supply chain
Commitment requirements, lock-in
Ability to customize
Data ownership, security, and protection
Provider security, privacy and disaster recovery
Regulatory requirements
Support and investigations
Integration with on-premises systems
Immaturity of vendors, standards
Immaturity of application development skills
Licensing Issues
Unproven financial model and real costs
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

91. Private Cloud Benefits
Service oriented interface
Low Barrier to Entry backed by virtualization
and automation
Shared architecture that
Elastic and Scalable is virtualized and based
on needs
Lower Cost and Pay Per More efficient and enable
Use economies of scale
Transition to a public
Ease of Sourcing cloud or hybrid model
Migration with no central sourcing
organization
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

92. Technical Feasibility
Maturity Level Status Product/Vendors
Embryonic In Labs None
Emerging Commercialization Highly Customized,
Early Adopters
Adolescent Uptake Beyond Early 2nd Generation
Adopters
Early Mainstream Proven Technology More out of the Box
Mature Mainstream Robust Technology Several Dominate
Vendors
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

93. Cloud Technology
Cloud Business Effect Vendors Maturity
Technology Impact and Time
Private Cloud Economies of High Oracle, BMC
Computing Scale, Software, Adolescent
minimize risk, Cisco, HP,
manage IBM, VMware
mission critical
data
Cloud Security Data security, High Symplified, Adolescent
and privacy Zscaler
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

94. Notes
Cloud Technology Business Impact Effect Vendors Maturity and Time
Cloud Governance Establish Policies and Transformational Inovis, Sonoa Systems, Emerging
build trust SOA Software, Vordel
SaaS Integration Reduce High Informatica, Bluewolf Adolescent
Cloud Services Needed to lower cost of Moderate IBM Tivoli, Data Synapse Emerging, end to end
Management Tools service delivery, maximize service still a vision
the cloud
Virtual Private Cloud Reduce risk and deploy High Terremark, Layered Emerging
Computing wider range of enterprise Technologies
applications
Application Platform as a IT Solutions applied and Transformational Google, Bungee Labs Emerging
Service composed by the
enterprise, but executed
and managed by expert
third party providers
Cloud Computing For the Reduced total cost of Transformational Amazon, Google, IBM, Emerging
Enterprise ownership, accelerated Microsoft, Oracle,
time to market, and Salesforce.com, SAP
reduced utilities
Cloud Based Email Free up internal capital Moderate Cisco, IBM, Microsoft, Emerging
and resources Google
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

95. Notes
 Film less X-ray systems
 Technical Support
 Integration Services
 Software
• Analyze, Visualize, Store
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

96. Notes
 Positive NPV
 Leverage on Core Competency
 Technical Interests
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

97. Notes
If we need consulting services:
Accenture, capgemini, CSC, EDS, IBM, HCL
technologies, Tata consultancy, wipro
technologies
**** Some have made formal relationships with
vendors such as Google and Amazon, have not
completed pricing models, go to market
strategies, and SLA’s (Service Level
Agreements)*****
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

98. Notes
DISCOUNTED CASH FLOW MODEL
5 Comparable Companies  BETA = 0.968
WACC = 9.03%  Discount Rate
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

99. Why this works: Stakeholder
Analysis
 Keeps decision making and technical
expertise in New Zealand
 Power is still with the brothers
 Information can be freely distributed
but managed in house
 Maximize the distribution of
knowledge into essential markets
Annova Consulting
Analysis Recommendation Action Plan Risks & Mitigations Conclusion

100. ―Cloud-boration‖ Timeline
Annova Consulting
100 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

101. Best Position for Terra Firma
Relative Position
(market share)
High Low
Growth Rate
High Question
Business
STAR
Mark
Low Cash
Divest
Cow
Annova Consulting
101 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

102. Grid Computing
• Combination of computer resources from
multiple administrative domains for a
common goal
• Applying the resources of many computers
in a network to a single problem at the same
time
• Strength: not administered centrally, open
standards
• Weakness: Over reliance
Annova Consulting
102 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

103. Questions for Cloud Computing
• Security: Are my business transactions and users safe?
• Data: Is my data safe?
• Reliability: will the service be available when I need it? Are the SLAs
acceptable, and are they being met?
• Cost: Are the promised cost savings being realized?
• Integration: How will I integrate my on-premises services with cloud-
based services? How will I integrate multiple cloud-based services with
each other?
• End-to-end process control: How will I control my business process
when a mix of on-premises and cloud-based services is involved?
• Vendor: is the vendor going to survive the eventual industry
consolidation? Is the vendor trustworthy? Is there a possibility of
vendor lock-in?
• Culture: Can IT adjust to not owning the computing resources and
people necessary to provide services to their customers?
Annova Consulting
103 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

104. Core Competency - Criteria
 Three tests to identify core
competencies
1. Access to wide variety of markets
2. Significant contribution to perceived
customer benefits of the end product
3. Difficult to imitate
Annova Consulting
104 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

105. Terra Firma Medical Systems
• New Zealand owned company operated
internationally
• Revenue of 2.5 billion New Zealand dollars
in 2009 (CAGR 13.85% per year)
• CAGR 16.9% on net income
Annova Consulting
105 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

106. HR Recommendations
 Knowledge management
• Documentation standards
• Shadow program
• Periodic checks
• Group collaboration incentives
Annova Consulting
106 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

107. Priority Matrix for Cloud Computing
Benefit Years to mainstream adoption
Less than 2 years 2-5 years 5-10 years More than 10 years
Application platform as a
service
Cloud advertising
Cloud computing
Transform- Cloud computing for the
Cloud services governance
enterprise
Cloudweb platforms
ational Public cloud computing/the
Hybrid cloud computing
Real-time infrastructure
Cloud
virtualization
Cloud application
development tools
Cloud computing/SaaS Cloud security concerns
integration Cloudbursting/overdraft
Cloud storage Cloud-driven professional IT
High Grid computing Compute infrastructure services and solutions Tera-architetures
services Cloud-enabled BPM platforms
DBMS in the cloud Virtual private cloud
Elasticity computing
Integration as a service
Private cloud computing
Cloud Service management
tools
Cloud-based email services
Enterprise portals as a
Moderate SaaS sales force automation
service
Business Process Utility
In the cloud security services
IT infrastructure Utility
SaaS
low
Annova Consulting
107 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

108. Suggested Project 1 – ―Cloud-boration‖
 Description
• Patients and doctors can check their
scanned image on any device and share
comments across the network
 Approximation Cost
• ~
 Benefits
• NPV
Annova Consulting
108 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

109. More on ―Cloud-boration‖
• Generalists can contact specialists around
the world to get confirmation / information
• Three levels of urgency:
• Critical, urgent, second opinion.
• Doctors can check or answer questions on
the move (with any devices in any
geographical location)
Annova Consulting
109 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

110. Suggested Project 2 – Mobile Technology
 Description
• Patients and doctors can obtain scanned
images on mobile devices
 Approximation Cost
• ~ $46M (both ―Cloud-boration‖ and Mobile)
• ~$5M (both ―Cloud-boration‖ and Mobile)
 Benefits
• NPV
Annova Consulting
110 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

111. Suggested Project 3 – Cloud Storage
 Description
• Offer customer scanned image backup
 Approximation Cost
• ~
 Benefits
• NPV
Annova Consulting
111 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

112. Suggested Project 4 – Grid Computing
 Description
• Apply resources of many computers in the
network to a complex problem at the same
time (such as image rendering)
• Pilot in Singapore
 Approximation Cost
• ~
 Benefits
• NPV
Annova Consulting
112 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

113. More on Grid Computing
Public
Cloud
Services
Anyone Shared Dedicated Web search
data/grid SaaS
service instances
Business Consortia- Targeted
partner cloud owned industry
Access
services service service
Internal Exclusive Virtual private
dev/test provider (IT cloud
service spinoff)
Exclusive Users Third Party
Ownership/Control
Private
Cloud
Services
Annova Consulting
113 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

114. Suggested Project 5 – Compression
 Description
• Investigate in possible compression
technologies that saves storage but does
not compromise quality
 Approximation Cost
• ~
 Benefits
• NPV
Annova Consulting
114 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

115. Suggested Project 6 – Data mining
 Description
• Add data mining solutions to our customers.
Such as grouping similar images together
with treatment and results, greater
collaboration with doctors around the world
 Approximation Cost
• ~
 Benefits
• NPV
Annova Consulting
115 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

116. Common Cloud-Computing Adoption
Risk and Mitigations
Risk Description Mitigation
Risk-Testing Testing is difficult to arrange and Due diligence. Get a tour and
conduct. develop assessment criteria
Data Location May not know where your data is Push provider to offer simple
stored (which disk farm or which level of control over locations
country)
Data Loss Provider may lose your data, Make sure data backups are
sometimes non-recoverable usable
Data Security Storing data externally could Have competent security and
(Privacy) result in losing information information personnel vet your
approach before you sign
contracts
Vendor viability Provider go out of business or Verify vendor viability via
stopped offering the service common reasonable methods.
Make sure you back up your
data. SaaS escrow
Source: Gartner Annova Consulting
116 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

117. Spectrum of Private to Public Cloud Services
Public
Cloud
Services
Anyone
Shared Dedicated Web search
data/grid SaaS
service instances
Business Consortia- Targeted
partner cloud owned industry
Access
services service service
Internal Exclusive Virtual private
Exclusive
dev/test provider (IT cloud
service spinoff)
Users Third Party
Ownership/Control
Private
Cloud
Services
Annova Consulting
117 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

118. How to Determine if Cloud Computing
is Right?
In order to determine if cloud computing is
suitable for the business, the following 5
point scale is used:
1. Misfit (banking over public cloud)
2. Poor fit (can force it)
3. Neutral (no particular benefit)
4. Good fit (positive contribution to business)
5. Perfect fit (maximum benefit)
Annova Consulting
118 Analysis Recommendation Action Plan Risks & Mitigations Conclusion

119. Cloud Computing - Latency
 Latency is hard to completely avoid
 Three ways to help decrease the
impact on latency
• Data replication (during off peak times in
data mart)
• Synchronization
• Data de-duplication
Annova Consulting
119 Analysis Recommendation Action Plan Risks & Mitigations Conclusion