The document introduces Semantech Inc.'s approach to ERP transformation, which aims to redefine industry best practices. Their Agile ERP solution deploys capabilities incrementally using rapid assessments and integrated teams to reduce risks. It provides oversight, holistic implementation addressing processes, data and systems, and recovery services when projects fail traditionally.

2. Introduction This presentation introduces a unique approach to ERP transformation for large enterprises. We will explain the challenges and misconceptions associated with traditional ERP solution approaches and how those impact project success. We’ll describe the Semantech Inc. alternative to traditional ERP deployments – Our Agile ERP solution will help to redefine industry best practice. Presentation Theme : “ERP is Enterprise Transformation, not just an ERP software package.” Copyright 2010, All Rights Reserved – Semantech Inc.

3. About Semantech Inc. Copyright 2010, All Rights Reserved – Semantech Inc. Semantech Inc. is a small, woman-owned business founded in 2007. The company is located near Dayton, Ohio. Since our inception we have supported clients in a variety of industries nationwide. Our charter is to provide enterprise-level solutions and to develop innovative approaches to better solve IT’s most troubling problems. Our underlying premise is founded upon the realization that traditional IT is largely an exercise in Chaotic Semantics . The unification of process, logic and data is Semantic Integration .

4. An Innovation Framework At Semantech Inc., Innovation is not a mandate, it’s our passion… Copyright 2010, All Rights Reserved – Semantech Inc.

5. How Does ERP Fit ? Copyright 2010, All Rights Reserved – Semantech Inc. An End-State ERP infrastructure – but does this represent all IT capability and if not how does it fit within the larger system of systems environment ?

6. Why ERP Projects Fail Copyright 2010, All Rights Reserved – Semantech Inc. ERP projects have some of the highest rates of failure of any IT projects. Many studies have placed the ERP Project failure rates as high as 75% with 90% of projects coming in late and over budget. So, why do they Fail? Because ERP is not a Silver Bullet. Because the ERP software is a small part of the actual project, but that’s not always recognized. Because changing an enterprise is hard – it implies a new way of doing business…

7. Section 1: ERP Challenges & Misconceptions Copyright 2010, All Rights Reserved – Semantech Inc.

8. Challenge 1 - Scope Every ERP project is an enterprise Transformation – this means that business processes, systems and data will change. This change is usually dramatic in nature and any dramatic change in IT is risky… The larger the enterprise, the larger the challenge for ERP deployment . ERP solutions do not scale well – especially in situations where an organization has a certain amount of diversification built-in (i.e. a business with multiple lines of business). Even within the ERP product stack, ERP is more than one product – it is a pre-integrated suite. Outside of the stack, there will be elements that need to be integrated. Copyright 2010, All Rights Reserved – Semantech Inc.

9. Module-Based Product Suites Copyright 2010, All Rights Reserved – Semantech Inc. ERP solutions come in modules . The exact configuration is vendor dependent but there are industry standard categories as well as data exchange standards to support those. Many ERP projects base their implementation strategies around module deployments. The number of modules available has grown significantly over the past 15 years.

10. Challenge 2 - Process Copyright 2010, All Rights Reserved – Semantech Inc. The mission of an organization is manifested in its processes. Often times, the standardized best practice processes embedded within an ERP application suite simply will not support a unique mission. Any ERP solution will need to take into account the reconciliation of old and new processes as well as the cutover between them. In many cases, customizations or integration must occur in order to support mission critical business processes and missions. The question if this occurs is whether the customization begins to outweigh the benefits of ERP standardization.

11. DoD ERP Initiatives Copyright 2010, All Rights Reserved – Semantech Inc. DoD ERP projects are even more risky than most commercial ones – because ERP software was not designed around military processes.

12. Challenge 3 - Data Copyright 2010, All Rights Reserved – Semantech Inc. Systems without data have minimal benefits. The promise of ERP largely is the promise of integrated data management. ERP systems are transactional in nature, so other data architectures must be added to them in order to gain more sophisticated analytic capabilities. The amount of work to optimize the data architecture is generally more extensive than most clients realize. Data integrity and reconciliation tends to be one of the most problematic areas for typical ERP implementations. This becomes exponentially more complicated when other systems are “bolted-on.”

13. DoD & USAF ERP Initiatives Copyright 2010, All Rights Reserved – Semantech Inc. DoD ERP solutions do not occur out of larger transformation contexts. The USAF is a good example; it must also correlate Legacy and Data Center initiatives.

14. Challenge 4 – Legacy Systems Copyright 2010, All Rights Reserved – Semantech Inc. “ Legacy systems” are what run the enterprise before ERP systems are deployed. Often times there are dozens or 100’s of them – typically, these must map over to a dozen or less ERP modules or packages. Legacy Transition is the most difficult part of any ERP implementation , it is where the majority of risk resides. It is also often the most expensive part of an ERP project – even though it isn’t generally budgeted comprehensively up front. It is extremely dangerous to automatically assume that an enterprise can transition to an ERP suite without assessing legacy capability and processes first.

15. The Big Question Copyright 2010, All Rights Reserved – Semantech Inc. The biggest challenge related to ERP is the Big Question : Will ERP work in this environment, will it support our mission ? The reason it is a challenge is because often times the decision to pursue ERP solutions is made without a preliminary process and technical assessment. The assumption is made that ERP will solve current integration issues and business inefficiencies – but of course this isn’t always the case. The corollary question is whether a partial ERP implementation can bridge the all or nothing gap .

16. The ERP Schedule Monster Copyright 2010, All Rights Reserved – Semantech Inc. The Larger the project, the longer it takes using a traditional a ERP implementation approach. Any ERP implementation that takes more than three years to deploy is high risk by nature.

17. Copyright 2010, All Rights Reserved – Semantech Inc. Section 2: Semantech Inc. ERP Solutions

18. ERP System Integration Semantech Inc. is a Systems Integrator (SI). Our company is not solely dedicated to deploying ERP software. We support the entire IT enterprise. We engineer ERP solutions for the enterprise. Semantech Inc. also provides integration oversight or IV &V [Independent Verification & Validation]. For government clients, this means we can support either the PMO or provide contract SI support. In some cases, Integration responsibility is shared between the program office and contract SI providers. Our ERP methodology is based upon a rapid capability deployment paradigm. Copyright 2010, All Rights Reserved – Semantech Inc.

19. Copyright 2010, All Rights Reserved – Semantech Inc. The Need for Speed The key underlying premise behind our ERP solutions is that delayed or protracted deployments are inherently risky – because: The projects become disconnected from the underlying technology. Each new product release adds integration complexity. Delayed capability deployments do not allow for course correction in time. Longer projects are more likely to lose sight of the integrated whole – in other words, they focus on the modules w/o properly assessing enterprise-wide solution coherence.

20. Agile is not Big Bang “ Big Bang” is a description of projects which attempt to deploy the entire capability uniformly, all at once. Such projects may or may not represent a more rapid project approach, but it does not represent “Agile.” Agile ERP represents an entirely new methodological approach – one that combines aspects of several other solution approaches: Incremental Deployment (spirals) Agile “Sprints” Solution Maturity Processes Agile ERP takes the best of all available techniques to allow for holistic deployment in increments … Copyright 2010, All Rights Reserved – Semantech Inc.

21. Our ERP Solution Framework Copyright 2010, All Rights Reserved – Semantech Inc. Rapid & Continuous Assessments Lifecycle Management Enterprise Integration Capability Assurance The Semantech Inc. ERP Solution is divided into three capability categories, they are: IV&V ERP Oversight Holistic ERP Implementation ERP Project Recovery In each of these ERP capability categories we provide the following critical services:

22. Copyright 2010, All Rights Reserved – Semantech Inc. IV&V Oversight In many ERP projects, Independent Oversight is necessary to ensure that all participants are properly aligned and that the project is functioning according to expectations. Our oversight solutions involve situations where Integration responsibility is shared or where one party or the other is a designated integrator. The Semantic Inc. ERP IV&V solution provides an honest broker for both business and technical issues. Our IV&V approach is scalable to any sized solution and can be deployed at any point in the ERP lifecycle.

23. Copyright 2010, All Rights Reserved – Semantech Inc. The Enterprise Program Management Office (PMO) generally manages ERP projects – Semantech’s IV&V solution can help coordinate ERP & Legacy concerns. IV&V Supports the PMO

24. Holistic ERP Implementation For an ERP project to succeed, all the necessary considerations must be addressed and reconciled. The Semantech Inc. Holistic ERP Implementation solution takes a wider view than most traditional ERP solutions, because we know that addressing critical issues as an after-thought adds risk. Holistic ERP Implementation includes: Process Reconciliation Data Reconciliation Architecture Alignment Incremental, Holistic Capability Deployment Legacy Transition & Reconciliation Copyright 2010, All Rights Reserved – Semantech Inc.

25. ERP Project Recovery Unfortunately, there are many ERP projects that run into problems; either during implementation or after deployment. For these troubled projects, there may still be opportunities for course correction. The Semantic Inc. ERP Project Recovery solution includes the following services: Damage Assessment Correction Road-mapping Data Correction Process Correction Integration – Hybrid Solutions Copyright 2010, All Rights Reserved – Semantech Inc.

26. Copyright 2010, All Rights Reserved – Semantech Inc. Our ERP Methodology ERP project teams don’t always fully exploit the resources available. A diversified team can however, cover multiple related objectives at the same time. The Semantech Inc. methodology takes advantage of Federated Project Teams so that ERP can be deployed as integrated increments. Incremental Integration allows for continuous assessments of project health much earlier than traditional module based release approaches do. Process, Data and System Reconciliation requires special attention and non-ERP technology to conduct – our approach standardizes this…

27. Semantech ERP Methodology Copyright 2010, All Rights Reserved – Semantech Inc.

28. Copyright 2010, All Rights Reserved – Semantech Inc. One of the most popular methodologies for Agile application development is SCRUM. While this wasn’t designed for enterprise integration it does emphasize close coordination and collaboration on near-term goals. We employ multiple Agile teams that work in unison… ERP Coordination is Key

29. ERP Lifecycle Methodology Governance is a Lifecycle of Lifecycles – data and process make it truly traceable. In a global enterprise, even with ERP solutions it becomes more complex. Our solution manages complexity… Copyright 2010, All Rights Reserved – Semantech Inc.

30. ERP Integration Methodology Our ERP Integration Methodology takes the entire spectrum of enterprise of processes and systems into consideration. It also provides a model for all enterprise integration that will occur after deployment… Copyright 2010, All Rights Reserved – Semantech Inc.

31. ERP Stakeholder Methodology Copyright 2010, All Rights Reserved – Semantech Inc. Successful ERP implementations are dependent upon successful management of stakeholders. Our ERP methodology integrates stakeholder management into our implementation and lifecycle management approaches.

32. Semantech ERP Roadmaps Copyright 2010, All Rights Reserved – Semantech Inc. Roadmaps are similar to Blueprints with one important distinction – Our Roadmaps evolve throughout the implementation lifecycle and encompass the entire deployment – not merely one ERP module at a time…

33. Copyright 2010, All Rights Reserved – Semantech Inc. Section 2: What Makes us Different…

34. Thought Leadership Copyright 2010, All Rights Reserved – Semantech Inc. Semantech Inc. has developed a number of cutting-edge IT practices and services including Semantic Systems Integration, Architecture Fusion and Intelligent Healthcare. This thought Leadership is grounded firmly in problem-resolution ; in other words each innovation is created specifically to address a long-standing IT challenge. Our ability to think on our feet is also applied at the engagement level – this gives us a unique level of flexibility which in turn reduces project risk.

35. ERP Project Agility Copyright 2010, All Rights Reserved – Semantech Inc. Semantech Inc. is a small business – small businesses are motivated to succeed and can respond faster to change than larger businesses tend to. A small business can manage a team including large businesses. Our ERP solution is entirely based upon placing the ERP project within a clearly defined rapid “time-box.” This applies to any sized ERP project (and the duration is dependent on size). But the component elements of all sized projects are the same. The Semantech Inc. solution is an open, collaborative and coordinated solution – this integrated approach is by nature Agile…

36. Federal Solutions Experience Semantech Inc. brings nearly 15 years of experience of complex Federal enterprise IT transformation to the table. We understand Federal Government mandates, expectations and formal guidance, for Information Assurance and Lifecycle Management as well as for specific agencies such as DoD. Semantech Inc. understands Federal acquisition processes and how to serve in the various roles that are necessary to support an ERP project. Copyright 2010, All Rights Reserved – Semantech Inc.

37. Conclusion Copyright 2010, All Rights Reserved – Semantech Inc. The reason we created our ERP solution was to significantly improve the ratio of ERP implementation success. This goal required us to rethink and then reconfigure traditional ERP implementation approaches and related technical solutions. We are offering an evolutionary improvement to ERP actualization; one that maximizes the best techniques, practices and technologies available. Semantech Inc. is dedicated first and foremost to our client’s success…

38. Semantech Inc. Contact Information Thank You… Call 937-554-4673 Or contact [email_address] For more Information Check us out at http://www.semantech-inc.com Copyright 2010, All Rights Reserved – Semantech Inc.