Steelwedge Agility Webinar Series Presenter: Jack Lyon, Vice President of Operations, Enterasys Networks Enterasys Networks set a strategy for business transformation in 2005 and put in place an S&OP initiative to power it. Within a year, it was reaping multi-million dollar benefits from tighter inventory and better visibility. Seven years later, the company continues to derive powerful incremental value from its S&OP foundation. In fact, Enterasys credits S&OP for ensuring its phenomenal string of q/q growth for the past three years—even when its market suffered a set- back. Join Jack and Steelwedge for an interactive webinar that looks under the hood that the strategy, execution and union of people, process and technology that keeps Enterasys on a multi-year growth trajectory. Topics will include: • Crawl, Walk, Run methodology for continuing, incremental success • Master Data Management to connect and harmonize vital on-premise and cloud based data • Putting the Cloud to work for better scalability

1. “There is nothing more important than our customers”
What Mature S&OP Looks Like
Delivering agility and upside from an Integrated Business Planning strategy
A Siemens Enterprise Communications Company

2. About Enterasys
Leader in wired and wireless network infrastructure
and security solutions
Consistent innovation: 800+ patents
Proven: 20,000+ customers
Solution selling: 500+ partners
Team: 1000+ technology and customer centric employees
Global presence: 5 continents, 90+ countries
2 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

3. 2004 Challenge: Keeping Balance
 Order delays
Global Market Volatility
 Sluggish market
response
 Obsolescence
 Information
not timely  Long product
or accurate
life cycle
enough
 Excess
inventory
• Organizational Silos
3 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

4. Poll #1
 What is your biggest planning challenge?
1. Global volatility
2. Demand visibility
3. Supply excess
4. Collaborative planning and engagement
5. All of the above
4 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

5. Strategy: Better Planning Visibility
 Remove Shades of Gray
 Lean transformation
 Supply/demand balance
 Better competitiveness
5 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

6. Objective: Global Collaborative Demand Plan
 Increased forecast predictability
 Demand and Supply plans
aligned internally and externally
 Improved customer satisfaction
 Reduced cash spend related to
forecasting error
Integrated set of IT tools that
includes an S&OP software
platform
6 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

7. Embarking on the IBP Journey
7 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

8. Year One: The Approach
 Executive-Sponsored Collaboration
• Sales, Marketing, Product
Management, Sales Operations, Finance and
Supply Chain
 Manage Information, Not Spreadsheets
 Normalize Data in Steelwedge
• SAP
• Salesforce.com
• Big Machines
 Significant and Immediate Changes to
the Business
• Better demand predictability
• Ability to respond to change
8 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

9. Poll #2
What technology are you using for S&OP?
1. Nothing
2. Spreadsheets
3. Existing ERP, SCM and/or CRM
4. S&OP specific technology
5. All of the above
9 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

10. Enterasys in the Cloud: Quote to Demand
10 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

11. Year One: Short Time to Measured Success
Near Real-Time Data Has it’s Advantages…
 When products not selling as well as expected:
 Drove demand-shaping to stimulate sales
 When products selling better than forecast:
 Reviewed sales data; determine growth
sustainability
 Faster reaction: checked manufacturers’
capacity to boost short and mid- term
production
 The bottom line:
$3-4M saving/quarter from decreased
excess and obsolescence inventory
11 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

12. Setting Up for the Long Term
Cadence, Methodology and Measurement for
Continued Success
 Stay Committed to the Process
 Ongoing executive participation
 Try, fix, encounter change; try again
 Continuous Improvement
 Learn from mistakes
 Bring lessons learned into new
area of the business
 NPI
 Set Aggressive Targets
 Measure
 Adjust
12 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

13. S&OP Working Model: Continuous Delivery
Financial Sales/Service
Plan Roles & & PM
Responsibilities Forecast
Collaboration
Tools
S&OP
Business
Process
SCM Forecast
13 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

14. Poll #3
 How long have you been doing S&OP?
1. Not using it
2. Considering it
3. Less than a year
4. Less than 10 years
5. More than 10 years
14 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

15. 7 Years Later: Continuing ROI from S&OP
 3 years of continuous growth outperforming all other networking
companies in 2011
 Sustained > 14% growth in Ethernet switching
 Sustained > 50% growth in WLAN business
 High Net Promoter Score: 8.1
 Sustained high global customer satisfaction: 95%
15 ©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.

16. Implementation & Process: Lessons Learned
1. Take measured steps
- Take time to define each level of the process
- Secure buy-in from stakeholders
- Align to business objectives
2. Early engagement is important
- Engage stakeholders up front
- Promote active participation
- Appoint program champions
3. Manage information
- Create common nomenclature
- Cross functional metrics and analytics
- Integration of information flow
4. Power business process with technology
- Technology plays an integral role when adapted to business process
- Apply tools/applications to advance the maturity of the process
- Continuous improvement
©2012 Enterasys Networks, Inc., A Siemens Enterprise Communications Company – All rights reserved.
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17. “There is nothing more important than our customers”
Thank You!
A Siemens Enterprise Communications Company