Bill Stout, Director, ISG, and Scott Bonneau, VPI IT, Finance & Hosting Services, Dr Pepper Snapple Group prepared this information for presentation at the May 2013 SIG Global Sourcing Summit. The 50 minute session covered the genesis of the RFS, details on the approach and tips for practitioners on how to leverage the RFS in specific situations to bring more innovation in Provider proposals.

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Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means,
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Prepared for the SIG 2013 Global Sourcing Summit
Bill Stout, Director, ISG
Scott Bonneau, VP IT, Finance & Hosting Services, Dr Pepper Snapple Group
May 2013
One Client's Experience
Request for Solution: a New Way to Contract
for a Service Provider’s Best Ideas

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About Dr Pepper Snapple Group
► Manufacture, bottle and distribute more than 50 brands of carbonated soft drinks,
juices, teas, mixers, waters and other premium beverages
► $5.995 billion in revenue for 2012
Dr Pepper Snapple Group (NYSE: DPS) is one of North America’s leading
refreshment beverage companies.
Flavored Carbonated
Soft Drinks Premium TeaJuice & Juice Drinks

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Objective and Agenda
► Objective: Inform the attendees about the emerging Request for Solution (RFS)
process and provide a case study as an example of practical application with lessons
learned and suggestions for potential practitioners.
► Agenda
 ISG and DPS background
 Overview of the RFS Process
 DPS Case Study Case Context
 Case Study "Take-Aways" and Lessons Learned

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Polling Questions
 How many of you may have already heard about the RFS?
 For your most recent major sourcing transitional, please raise your had if you
started the process with an RFP
 Please raise your had if you started the process with an RFQ?
 Please raise your hand if you started with an RFS approach?

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The Request for Solution: Best of the bunch
We've picked some of the best elements of all approaches to develop an alternative
that helps widen the solution horizon and gets to contract (benefits) sooner
Sourcing Transaction Engagement Continuum
1
RFP
8-12+ Week Process:
Supports
"Lift and Shift"
approaches – can be
time consuming and
stifle innovation
2
RFS
8 Week Process:
"Solution" focus
looking for innovation
and exploring
alternatives
3
RFQ
X Weeks:
Known Standard
Solution;
procurement
focus
Project TimeMore Less
ScopeandComplexityMoreLess

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The RFS forgoes the rigor required to develop, socialize and agree on an RFP
upfront, in favor of an early focus on solution and transformation opportunities
RFS ►The Engagement Package focuses on
goals and objectives – not terms and
conditions
►Commonly 6 Providers are invited to
participate allowing a broader view
of potential solutions
►The bulk of the effort is in the
collaboration with the Providers,
providing feedback and evaluating
the options - leading to a down-
select
RFS at a Glance

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Dr Pepper Snapple Group Case Study
Scope & Context
► 7 year managed services
outsourcing agreement
was due to expire in May
2014
► Scope centered on data
center & hosting services
 Servers
 Storage
 Email hosting
► Incumbent provider had
performance issues over
life of contract, although
had improved
significantly in 2012
► Desire to leverage a
competitive sourcing
process
Business Objectives
► Capture financial savings
associated with service
offering maturity
► Improve speed to market,
(e.g., startup of new server
and storage services)
► Improve reliability,
availability, and
performance of compute
and storage platforms
► Leverage recent changes in
technology and data
center/hosting service
offerings
► Mitigate business risk
during transition &
transformation
Results
► Leveraged the RFS to
review solutions from 6
providers (10 weeks)
► Conducted due diligence
with 2 providers to
secure detailed
transformation plans and
firm pricing (8 weeks)
► Down-selected to a single
provider (incumbent) and
closed the contract
negotiations (6 weeks)
► New agreement includes
significant cost savings
and complete technology
refresh
► Transformation already
underway

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Lessons LearnedBenefits
DPS Case Study – Buy-Side Takeaways
► The RFS process, by its nature, delivers
high level solutions and indicative
pricing, making down-select decisions
difficult
► Cannot necessarily go straight into
contract – indicative pricing and high
level solutions require multiple
clarification iterations
► Even though there is no RFP, the team
must know and agree in advance
which types of solutions will work for
their environment and business
► Critical to staff the right cross-
functional team during the RFS phase
(e.g., IT Security, Architecture,
Applications, Hosting, Procurement)
► Faster process than the traditional
approach that was used internally at
DPS
► Provided a high degree of competition
and solution diversity
► Increased focus on solution
development and reduced emphasis
on documenting responses
► Yielded greater insight into the
provider's capabilities and solutions
prior to the down-select, due to the
collaborative process that was
employed

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When and why you should consider an RFS
► Generally, the RFS best suited for situations where the client has previous sourcing
experience, a clear sourcing strategy and existing service integration and governance
processes
► From a solution perspective, the RFS is well suited for situations where the in-scope
areas are subject to major innovation or transformation; or
► Where a high degree of competition and solution diversity is needed from 6+ bidders
► Can be used where speed to an agreement is paramount and the transaction is solution
focused
► Greenfield solutions – the RFS has also been used for completely new businesses where
the client has almost complete flexibility in technology solution choices
The Request for Solution approach is generally more geared towards certain
scenarios than others.

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Thank you for your time today
► Bill Stout
Director
ISG
+1 720 373 3187
bill.stout@isg-one.com
► Scott Bonneau
VP IT, Finance & Hosting Services
Dr Pepper Snapple Group
+1 972 673 6886
scott.bonneau@dpsg.com
To learn more about RFS:
Visit www.isg-one.com
For related article on the RFS from CIO Magazine and a previous ISG and SIG RFS
presentation

12. www.isg-one.com