This document proposes a blueprint for regional service integration and expansion. It discusses recent trends driving integration, outlines how to structure service level agreements, and proposes an organizational model to manage international growth. Next steps include implementing recommendations to improve credit risk management processes based on benchmarking strengths and weaknesses against competitors.

1. Amsterdam
October 19 2002
PROPOSAL DOCUMENT
Blueprint for Regional Service
Operational

2. Client Logo
Table Of Contents
Introduction
Recent Trends
Service Level Agreements
Strategic Positioning
Next Steps
Page
2
3
4-7
8-9
10

3. We focus in many arenas, including national and international security, economic well-being, health,
environment, and public infrastructure. Our deep expertise in technology, engineering, and analytics helps us
serve a broad constituency of clients, ranging from cabinet-level departments of the U.S. government to
corporations, institutions, and organizations.
Booz Allen’s major clients include global corporations in the health, energy, and financial services sectors, as
well as nearly all departments and agencies across the U.S. federal government. These clients face a wide
range of complex and pressing challenges such as combating global terrorism, improving cyber capabilities,
transforming the healthcare system, improving energy usage, and protecting the environment.
To address these challenges, Booz Allen Hamilton’s approach is that of a trusted and long-term partner. We
deliver objective, trusted advice to our clients via expert analysis rooted in deep domain knowledge and
functional expertise. Our collaborative culture also helps ensure the delivery of highly responsive services to
clients who must respond to emerging trends, evolving missions, and changing market conditions.
Throughout our contract engagements, our people work to develop a holistic understanding of the issues and
challenges facing our clients. These insights are gathered and analyzed so that we can ensure our advice helps
our clients achieve results that endure.
As the needs of our clients have grown, Booz Allen Hamilton has responded and expanded beyond the
traditional management consulting foundation to meet and exceed those needs.
Introduction
2

4. Recent trends
Integration with a priority partner will result in a positive NPV
8.8
-2.1
-2.5
-2.0
-1.5
0.4
1.2
2.0
2.8
-4
-2
0
2
4
6
8
10
00 01 02 03 04 05 06 07 08
NPV of Option 1 (Integration)
2.1
7.1
-16.4
-6.0
-5.0
-11.4
-20.0
-15.0
-10.0
-5.0
0.0
5.0
Phase 1
Reduction in
Employees
Less Market
Costs Other Charges Aggressive NPV
(1)
Based of 10 times EBITDA
Source: Uniport, BA&H Analysis
Entire company organised astound effective
leveraging of information to maximise long
term falue of each time.
Comments
 Phase 1 resulting NPV is based on
achieving some synergies with
Telecom company;
 Extreme cost cutting could improve the
NPV.
3

5. Service Level Agreement
SLAs can span any service relationship ranging from a third party to the end-user
Conceptual
External
Supplier
Data
Centre
Information
Manager
End-
User
Pass through
cost
Pass through
cost
Pass through
cost
Determine
service-level
requirement
Determine
service-level
requirement
Determine
service-level
requirement
External
SLA
Basic
SLA
New
SLA
Definition
 Only if the end-user is charged for the Services;
 SAP charges customers;
 R&D overs all ost for the usage of systems.
4

6. Service Level Agreement – Organisational Model
Increasing company complexity requires rethinking of top organisation as a holding structure Basic
Organisation Model
Product Oriented
 Verify
stock at
warehouse
• Arrange for
retai
 Process
orders through
system
International
 Revenue
deposited
• Cleared
through
Central
Headquarters
 Transportation
of goods
Customer Oriented
 Positive
customer
feedback

• Timely
process and
delivery
 One-to-one
call for order
 Often an organisation towards a
region or produce-based structure;
 Strong focus on specific needs of
international operation;
 One board member supervises
business.
 Takes into account differences
of products;
 Global approach is taken for
every product;
 Each board member
responsible for a single region.
 Global approach taken for
each customer segment;
 International responsibility;
 Provides one face to the
customer for all countries.
5

7. An international unit could be a first organisational step…
Organisational Migration
Service Level Agreement – Organisational Model
CEO
SALES CFO BU’s
ASIA UK MARKET PRUS
Today
CEO
CFO INTERNATIONAL BU’s
Tomorrow
 International division with a dedicated sales
force with a link to business units
 Clear responsibilities and resolution of channel
conflicts
6

8. Service Level Agreement – Organisational Model
… and from there to a truly global organisation
Migration Path on Global Scale
Regional Admin
Managers
CFO Sales BU's
International
Business
Development
R&D Engineering
Asia UK USNew countries
Focus Global Business
7

9. Strategic Positioning
As an ongoing business, the company interacts with many constituencies in man different ways
Levels of Relationship Interaction
Final Report
Figures based on Annual
Report
Full Potential No Potential
8

10. Strategic Positioning
 Exertion of influence on the independent units;
 Provision of central functions and services;
 Operative management of different business units;
 Service holding areas to be defined;
 Management holding;
 Superior operations;
 Overheads and bureaucracy after destroy value;
 More flexible approach is required.
The internet enables many customer to increase levels of sophistication information based marketing.
Levels of Marketing Information(1)
Long-term Goal Development
(1)Facilitating search and match by building marketplaces
9

11. Next steps
Credit Risk Management
 The project covers all aspects of credit risk management:
Credit analysis;
Risk Management;
Mitigation techniques.
 The framework of the analysis is based on the dimensions methods, organisation, HR and IT;
 The recommendations are a result of detailed analyses of gaps within current credit risk management
processes:
Hypotheses and results were discussed in regular meetings with Senior Management;
Strengths and weaknesses were benchmarked against competitors by means of internal interviews.
10