Keynote Address given by Paul Strassman, former Director of Defense Information and current Distinguished Professor of Information Science at George Mason University, at Transformation and Innovation 2007.

3. HP vs IBM Share Prices HP IBM

4. HP vs. IBM Revenues

6. Example of Application Simplification

8. Standardize, Consolidate, Integrate 67 52 79 56 83 95 33 48 21 44 5 17 0% 20% 40% 60% 80% 100% Low Commonality High Commonality Marketing Ops Sales Ops Order Mgmt Supply Chain Finance HR

11. Data Center Consolidation more capability less HP IT cost 30% more bandwidth half the cost of networking double the storage decrease in cost of storage 80% more processing power 30% fewer servers global applications 60% retirement of legacy applications Increases Reductions

12. Continuity and Disaster Recovery Zone A Site – 1 Site – 2 Active Dark Active Dark Active Dark Active Dark Active Dark Active Dark Zone B Site – 3 Site – 4 Active Dark Active Dark Active Dark Active Dark Active Dark Active Dark Business continuity Disaster recovery Business continuity Next generation data centers Next generation data centers

16. Enterprise Data Warehouse Legacy applications = chaos Enterprise data warehouse = order Continuity Consolidation Control Collaboration Single version of the truth Data Warehouse Production Control MRP Inventory Control Parts Management Logistics Shipping Raw Goods Order Control Purchasing Marketing Finance Sales Accounting Management Reporting Engineering Actuarial Human Resources

17. Global Data Data is complete and detailed Define, model and map all data Ensure all data has integrity Provide complete access Flexibility and scale All data entered only once Integrated Global Views Worldwide Orders Data Worldwide Service Data Other Data Enterprise Data Warehouse Thousands of worldwide feeds daily Middleware

18. Standards Standard servers and storage Technology Standardization Technology version harmonization Increased virtualization Load balancing, clustering, database mirroring

20. IT Budget

21. Example of Project Savings

22. IT Portfolio Scorecard % Innovation vs. Sustaining % Projects On Quality Target Value-Added/IT Developer Annualized Benefit ($B) % On Time Delivery Target Performance Metric $2.5B $2B $1B $3B 2004 2005 2006 2007

25. HP vs. DoD Budget Allocations

26. DoD Transformation Comments