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Problem Management in the Networking Environment - Excel

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					                                                                      SBS Sie Quence ROI Calculator
                                                      Client Input
Demographic Information
   First Name                                                        John
   Last Name                                                         Smith
   Company Name                                                      Your Company Name
   Address 1                                                         Address1
   Address 2                                                         Address2
   City, State, Zip                                                  City, State, Zip
   Phone Number                                                      212.555.1212
   eMail Address                                                     jsmith@company.com
Client Input
Total number of end users in your company                                                                            5,000
Percentage of end users on campus versus remote locations                                                             65%
Average number of client devices per end-user (i.e. desktops, laptops, etc)                                             1.1
Number of servers within your organization                                                                              20
Number of network devices within your organization                                                                     100
Annual IT workforce turnover rate                                                                                     20%
Percentage of time end-users spend performing IT self help, peer support, and waiting for formal support               4%
Estimated amount spent on lease penalties per year                                                                 $10,000
Estimated amount spent on hardware maintenance per year                                                            $10,000
Annual cost of IT facilities                                                                                      $100,000
Annual percentage increase for salaries                                                                                4%
Discount rate (for NPV)                                                                                               11%
                                                                            In-House Personnel               Outsourced

Headcount figures:                                                      Headcount           Avg Salary    3rd Party Costs
    Call coordination, help desk, level I support personnel                         35            $38,134              $0
    Installs, moves, adds, changes, configuration, advanced help
    desk and deskside support                                                       50             $47,161               $0
    Expert support personnel                                                        15             $68,265               $0
    Network and systems management                                                  45             $67,878               $0
    Other in-scope personnel                                                         7             $74,258               $0
Estimated amount spent annually on:                                                         Avg Annual      Retained Avg
                                                                     Average Annual        Systems Cost    Annual Systems
                         (Note: enter $0 if cost is allocated in     Systems Cost        (Improved              Cost
outsource fees above.)                                                  (Current)            In-House)       (SieQuence)
    Automated Call Distributor (ACD)                                         $50,000               $65,000          $50,000
    Problem management / help desk system                                   $125,000              $162,500          $43,750
    Knowledge base                                                          $125,000              $162,500          $81,250
    Distributed dispatch management system (for field techs)                 $35,000               $45,500          $17,500
    Remote control                                                           $20,000               $26,000          $10,000
    Network and server management tools                                      $50,000               $65,000           $5,000
    Password management                                                     $100,000              $130,000          $10,000
    Asset tracking                                                          $100,000              $130,000          $25,000
    Other tools (Specify)                                                         $0                    $0               $0




                                                            Page 1                                                 7/14/2011
                                                                                SBS Sie Quence ROI Calculator
                                                        Siemens Input
Input from Sales Representative:
    Up-front fees to client                                                                              $                500,000
    Recurring monthly per seat (client device) fee                                                       $                    100
    Sales Representative Signature Information
         Name                                                                                            Sales Rep Name
         Additional Information 1 (optional)                                                             (555) 555-1212
         Additional Information 2 (optional)                                                             name@company.com
Input from Market Research (updated only as needed)
    Average burden rate applied to the salaries of employees                                                                   35%
    Average hiring and recruitment costs per new employee                                                                   $10,000
    Average cost of training program per specialized IT employee                                                              2,500
    Average end user annual salary (fully burdened)                                                                         $65,000
    Severance as a percentage of salary                                                                                      5.77%
    "Best Practice" Level 1 support staff ratio of end users per staff member                                                   120
    "Best Practice" Level 2 support staff ratio of end users per staff member                                                    70
    "Best Practice" Level 3 support staff ratio of end users per staff member                                                   375
    Estimated network and systems management staff ratio of end users per staff member                                          225
    Estimated "other" staff ratio of end users per staff member                                                                 750
    Percentage of help desk staff available for redeployment or reduction after SieQuence                                      95%
    Percentage of IMACs/deskside support staff available for redeployment or reduction after SieQuence                         80%
    Percentage of expert support staff available for redeployment or reduction after SieQuence                                 20%
    Percentage of networking and systems staff available for redeployment or reduction after SieQuence                         80%
    Percentage of "other" staff available for redeployment or reduction after SieQuence                                        20%
    Estimated percentage increase or decrease in IT facilities with an improved in-house option                                 0%
    Estimated percentage increase or decrease in IT facilities with a SieQuence option                                        -50%
    Average percentage decrease in hours per month users spend on support due to improvements in
    tools and processes                                                                                                        20%

                                                                                                         Improved In- SieQuence
                                                                                                         House Option   Option
      Adoption rate of benefits for Year 1                                                                       25%          60%
      Adoption rate of benefits for Year 2                                                                       45%          95%
      Adoption rate of benefits for Year 3                                                                       75%         100%
      Percentage savings in lease penalties per year                                                             80%          80%
      Percentage of hardware maintenance costs saved due to warranty management                                  20%          20%
      Transition cost for hardware and software                                                          $   350,000 $    100,000
      Transition cost for labor as a percentage of payroll                                                       20%           5%




                                                                Page 2                                                   7/14/2011
                                                                             SBS Sie Quence ROI Calculator
                                  Hardware, Software and Facilities Analysis
                                                                                      Improved In-House Retained SieQuence
First Year Hardware, Software and Facilities Costs                Current Costs          Option Costs      Option Costs
Lease penalties                                                             $10,000                $2,000             $2,000
Hardware maintenance costs                                                  $10,000                $8,000             $8,000
Automated Call Distributor (ACD)                                            $50,000               $65,000            $50,000
Problem management / help desk                                             $125,000              $162,500            $43,750
Knowledge base                                                             $125,000              $162,500            $81,250
Distributed problem management system (for field techs)                     $35,000               $45,500            $17,500
Remote control                                                              $20,000               $26,000            $10,000
Network and server management tools                                         $50,000               $65,000             $5,000
Password management                                                        $100,000              $130,000            $10,000
Asset tracking                                                             $100,000              $130,000            $25,000
Other tools                                                                      $0                    $0                 $0
Transition cost for hardware and software                                        $0              $350,000           $100,000
Facilities costs                                                           $100,000              $100,000            $50,000
Total First Year Hardware, Software and Facilities Costs                   $725,000            $1,246,500           $402,500
                                                                                      Improved In-House Retained SieQuence
Second Year Hardware, Software and Facilities Costs               Current Costs          Option Costs      Option Costs
Lease penalties                                                             $10,000                $2,000             $2,000
Hardware maintenance costs                                                  $10,000                $8,000             $8,000
Automated Call Distributor (ACD)                                            $50,000               $65,000            $50,000
Problem management / help desk                                             $125,000              $162,500            $43,750
Knowledge base                                                             $125,000              $162,500            $81,250
Distributed problem management system (for field techs)                     $35,000               $45,500            $17,500
Remote control                                                              $20,000               $26,000            $10,000
Network and server management tools                                         $50,000               $65,000             $5,000
Password management                                                        $100,000              $130,000            $10,000
Asset tracking                                                             $100,000              $130,000            $25,000
Other tools                                                                      $0                    $0                 $0
Facilities costs                                                           $100,000              $100,000            $50,000
Total Second Year Hardware, Software and Facilities Costs                  $725,000              $896,500           $302,500
                                                                                      Improved In-House Retained SieQuence
Third Year Hardware, Software and Facilities Costs                Current Costs          Option Costs      Option Costs
Lease penalties                                                             $10,000                $2,000             $2,000
Hardware maintenance costs                                                  $10,000                $8,000             $8,000
Automated Call Distributor (ACD)                                            $50,000               $65,000            $50,000
Problem management / help desk                                             $125,000              $162,500            $43,750
Knowledge base                                                             $125,000              $162,500            $81,250
Distributed problem management system (for field techs)                     $35,000               $45,500            $17,500
Remote control                                                              $20,000               $26,000            $10,000
Network and server management tools                                         $50,000               $65,000             $5,000
Password management                                                        $100,000              $130,000            $10,000
Asset tracking                                                             $100,000              $130,000            $25,000
Other tools                                                                      $0                    $0                 $0
Facilities costs                                                           $100,000              $100,000            $50,000
Total Third Year Hardware, Software and Facilities Costs                   $725,000              $896,500           $302,500
 Compared to your current costs, SieQuence can save you $1,167,500 over 3 years by reducing in-scope IT tool costs, effectively
                   managing leases and warranties, and reducing the square footage needed for IT facilities.




                                                            Page 3                                                       7/14/2011
                                                                                          SBS Sie Quence ROI Calculator
                                                              Labor Analysis
                                     Average Staffing       Current Staffing
       Description of FTEs                Ratios                 Levels         Best Practice Levels          Delta               Cost Impact
Call coordination, help desk                        120                    35                    42                       7               $266,938
IMACs, deskside support                              70                    50                    71                      21               $990,381
Expert support staff                                375                    15                    13                      -2              -$136,530
Networking and systems staff                        225                    45                    22                     -23            -$1,561,194
Other                                               750                     7                      7                      0                      $0
Total                                                                     152                   155                       3              -$440,405
                                                                                                       Improved In-House        Retained Labor
First Year Labor Costs                                                            Current Costs           Option Costs          with SieQuence
   Annual salaries of in-scope FTEs                                             $       8,291,031      $        7,850,626     $         2,174,232
   Annual cost of benefits for in-scope FTEs                                    $       2,901,861      $        2,747,719     $           760,981
   Cost to transition staffing levels                                           $             -         $       1,683,614     $           767,444
   Turnover rate                                                                              20%                     20%                     20%
   Cost to hire and train properly qualified replacements                       $         380,000      $          387,500     $            91,750
   Cost of 3rd party outsourcing                                                $             -         $             -       $                -
Total First Year Labor Costs                                                    $      11,572,892      $       12,669,459     $         3,794,407
                                                                                                       Improved In-House        Retained Labor
Second Year Labor Costs                                                             Current Costs         Option Costs          with SieQuence
  Annual salaries of in-scope FTEs                                              $         8,622,672    $        8,164,651     $         2,261,201
  Annual cost of benefits for in-scope FTEs                                     $         3,017,935    $        2,857,628     $           791,420
  Cost to hire and train properly qualified replacements                        $           380,000    $          387,500     $            91,750
  Cost of 3rd party outsourcing                                                 $               -       $             -       $                -
Total Second Year Labor Costs                                                   $        12,020,608    $       11,409,779     $         3,144,371
                                                                                                       Improved In-House        Retained Labor
Third Year Labor Costs                                                              Current Costs         Option Costs          with SieQuence
  Annual salaries of in-scope FTEs                                              $         8,967,579    $        8,491,237     $         2,351,649
  Annual cost of benefits for in-scope FTEs                                     $         3,138,653    $        2,971,933     $           823,077
  Cost to hire and train properly qualified replacements                        $           380,000    $          387,500     $            91,750
  Cost of 3rd party outsourcing                                                 $               -       $             -       $                -
Total Third Year Labor Costs                                                    $        12,486,232    $       11,850,670     $         3,266,476
  Compared to your current costs, SieQuence can save you $25,874,478 over 3 years by reducing or redeploying in-scope IT staff along
             with their associated management, recruiting and training costs, and by eliminating outsourced IT functions.




                                                                      Page 4                                                             7/14/2011
                                                                                                SBS Sie Quence ROI Calculator
                                                                  3 Year Analysis
Investment Required
    Up-front investment                                                                                                    $              500,000
    Recurring monthly per-seat fees                                                                                        $                  100
    Number of seats (client devices)                                                                                       $                5,500
    Total 3-year investment                                                                                                $           20,300,000

                                                                               Retained Internal         SieQuence             Total SieQuence
SieQuence Option Costs                                                               Costs               Investment              Option Costs
First year costs for hardware, software, facilities and labor                $           4,196,907   $         7,100,000   $            11,296,907
Second year costs for hardware, software, facilities and labor               $           3,446,871   $         6,600,000   $            10,046,871
Third year costs for hardware, software, facilities and labor                $           3,568,976   $         6,600,000   $            10,168,976
Total 3 Year Costs                                                           $         11,212,754    $        20,300,000   $            31,512,754

                                                                                                     Improved In-House      SieQuence Option
Option Comparison (Total Spend)                                                  Current Costs          Option Costs             Costs
First year costs for hardware, software, facilities and labor                $         12,297,892    $        13,915,959   $        11,296,907
Second year costs for hardware, software, facilities and labor               $         12,745,608    $        12,306,279   $        10,046,871
Third year costs for hardware, software, facilities and labor                $         13,211,232    $        12,747,170   $        10,168,976
Total 3 Year Costs                                                           $         38,254,731    $        38,969,408   $        31,512,754


Impact of SieQuence vs. Current Costs                                                                                            Net Benefit
Year 1                                                                                                                     $           1,000,985
Year 2                                                                                                                     $           2,698,736
Year 3                                                                                                                     $           3,042,256
Total                                                                                                                      $           6,741,978

Total 3-Year Savings Ratio (Total Net Benefit / Total Current Costs)                                                                          18%
Net Present Value                                                                                                          $            5,316,615
    Your SieQuence implementation is estimated to produce a savings ratio of 18% after 3 years, and a net present value of
             $5,316,615. Net present value is the value in today's dollars of the net benefit over the next 3 years.


  This ROI Calculator tool is designed for use as an economic projection tool to estimate potential economic benefits from the use of
Siemens Business Services, Inc. services. This tool is not to be used by you or any other individual, organization or entity for any other
purpose. The projections generated by this tool are estimates of the return on investment that Siemens Business Services, Inc. clients
may anticipate when using the services and solutions described. Siemens Business Services, Inc. does not represent or guarantee that
 you will experience the ROI calculated. Actual results may differ depending on your particular situation or environment, as well as the
                               accuracy of the underlying assumptions or changes in any of the foregoing.

    Siemens, Siemens Business Services, SieQuence and Global Network of Innovation are trademarks or registered trademarks of
                                            Siemens AG or its affiliated companies.

    This sales tool was developed in cooperation with Phormion Sales Tools, Inc - www.phormion.com




                                                                             Page 5                                                      7/14/2011
                                                                                                      SBS Sie Quence ROI Calculator
                                                                 Productivity Analysis
                                                                                                                   Improved In-House SieQuence Option
First Year                                                                                    Current Costs           Option Costs        Costs
Number of end users                                                                                      5,000                   5,000            5,000
Average end user annual salary                                                                         $65,000                 $65,000          $65,000
Total cost of salaries                                                                            $325,000,000            $325,000,000     $325,000,000
Percentage of time end-users spend performing IT self help, peer support,
and waiting for formal support                                                                               4%                    4%                   4%
Cost of lost productivity while users receive support                                                $13,000,000           $13,000,000          $13,000,000
Average percentage decrease in hours per month users spend on support
due to improvements in tools and processes                                                                    0%              20%              20%
End user adoption rate                                                                                        0%              25%              60%
New Cost of Lost Productivity in First Year                                                          $13,000,000      $12,350,000      $11,440,000
                                                                                                               Improved In-House SieQuence Option
Second Year                                                                                   Current Costs       Option Costs        Costs
Total cost of salaries                                                                            $338,000,000        $338,000,000     $338,000,000
Cost of lost productivity while users receive support                                              $13,520,000         $13,520,000      $13,520,000
Average percentage decrease in hours per month users spend on support
due to improvements in tools and processes                                                                    0%              20%              20%
End user adoption rate                                                                                        0%              45%              95%
New Cost of Lost Productivity in Second Year                                                         $13,520,000      $12,303,200      $10,951,200
                                                                                                               Improved In-House SieQuence Option
Third Year                                                                                    Current Costs       Option Costs        Costs
Total cost of salaries                                                                            $351,520,000        $351,520,000     $351,520,000
Cost of lost productivity while users receive support                                              $14,060,800         $14,060,800      $14,060,800
Average percentage decrease in hours per month users spend on support
due to improvements in tools and processes                                                                    0%                  20%                   20%
End user adoption rate                                                                                        0%                  75%                  100%
Total 3 Year Cost of Lost Productivity                                                               $14,060,800          $11,951,680           $11,248,640

Total Cost of Lost Productivity After 3 Years                                                        $40,580,800          $36,604,880           $33,639,840
  Compared to your current costs, SieQuence can recoup $6,940,960 in lost productivity costs per year due to efficiency gains and
                                   time savings associated with quicker fixes by formal support.

                                                   ROI Analysis Including Productivity
                                                                                                                   Improved
Option Comparison (Total Spend)                                                             Current Solution          In-House Option    SieQuence Option
First year costs for hardware, software, facilities, labor and productivity                $      25,297,892        $       26,265,959   $      22,736,907
Second year costs for hardware, software, facilities, labor and productivity               $      26,265,608        $       24,609,479   $      20,998,071
Third year costs for hardware, software, facilities, labor and productivity                $      27,272,032        $       24,698,850   $      21,417,616
Total 3 Year Costs                                                                         $      78,835,531        $       75,574,288   $      65,152,594

Impact of SieQuence vs. Current Situation                                                                                                    Net Benefit
Year 1                                                                                                                                   $        2,560,985
Year 2                                                                                                                                   $        5,267,536
Year 3                                                                                                                                   $        5,854,416
Total                                                                                                                                    $       13,682,938

Total 3-Year Savings Ratio (Total Net Benefit / Total Current Costs)                                                                   17%
Net Present Value                                                                                                      $        10,863,143
 Your SieQuence implementation is estimated to produce a savings ratio of 17% after 3 years when productivity is factored in, and a
       net present value of $10,863,143. Net present value is the value in today's dollars of the net benefit over the next 3 years.

  This ROI Calculator tool is designed for use as an economic projection tool to estimate potential economic benefits from the use of Siemens
 Business Services, Inc. services. This tool is not to be used by you or any other individual, organization or entity for any other purpose. The
 projections generated by this tool are estimates of the return on investment that Siemens Business Services, Inc. clients may anticipate when
using the services and solutions described. Siemens Business Services, Inc. does not represent or guarantee that you will experience the ROI
      calculated. Actual results may differ depending on your particular situation or environment, as well as the accuracy of the underlying
                                                 assumptions or changes in any of the foregoing.

 Siemens, Siemens Business Services, SieQuence and Global Network of Innovation are trademarks or registered trademarks of Siemens AG
                                                     or its affiliated companies.

    This sales tool was developed in cooperation with Phormion Sales Tools, Inc - www.phormion.com




                                                                                Page 6                                                             7/14/2011
                                  SBS Sie Quence ROI Calculator
                                           Graphs
                          Cumulative Costs By Option By Year

            Current
   $45,000,000                      Improved        SieQuence
    Year 1 $
   $40,000,000         12,297,892    $   13,915,959 $ 11,296,907
    Year 2 $           25,043,500    $   26,222,238 $ 21,343,778
   $35,000,000
    Year 3 $           38,254,731    $   38,969,408 $ 31,512,754
   $30,000,000
                                                                        Current Costs
   $25,000,000
                                                                        Improved In-House
   $20,000,000
                                                                        SieQuence Option
   $15,000,000
   $10,000,000
    $5,000,000
             $-
                         Year 1          Year 2       Year 3


      Hardware, Software, Facilities and Labor Costs By Option By Year

             Current          Improved        SieQuence
Year 1 $40,000,000 12,297,892 $
              $                    13,915,959 $ 11,296,907
              $
Year 2 $35,000,000 12,745,608 $    12,306,279 $ 10,046,871
              $
Year 3 $30,000,000 13,211,232 $    12,747,170 $ 10,168,976
      $25,000,000
      $20,000,000                                                                    Year 3

      $15,000,000                                                                    Year 2
      $10,000,000                                                                    Year 1
       $5,000,000
                  $-
                         Current Costs    Improved In-     Retained
                                          House Option    SieQuence
                                             Costs       Option Costs


                   Comparison of Total 3 Year Costs Within Option
             Current Costs                            Costs with SieQuence Option
             Current         SieQuence
HW, SW       $     1,875,000 $       857,500
Facilities   $       300,000 $       150,000
                                                                                    HW, SW
Labor        $    36,079,731 $    10,205,254
SieQuence                     $   20,300,000                                        Facilities


                                                                                    Labor


                                                                                    SieQuence




                                             Page 7                                              7/14/2011
                                                                                           SBS Sie Quence ROI Calculator
                                                         Additional Benefits
                                    Please consider these other advantages of a SieQuence solution.


Cost Containment and Predictability – All service activities are focused on controlling costs and preventing unexpected events that drive
up costs unpredictably. Tightly integrated solutions linking the SPOC help desk with deskside, remote support, and depot services allow
service events to be handled with maximum efficiency. Services are designed based on the most cost-effective combination of the three key
SBS assets of Process-Technology-People. Economies of scale, realized through our nationwide service organization, help minimize the
cost of service to individual clients and enable you to more accurately predict the cost of managing the environment. Finally, SBS follows
the principle of progressive gain sharing – facilitating the ongoing creation of cost savings that result in a mutually rewarding relationship
with our clients.


Reliability – Highly reliable operation and optimized performance in your IT environment are business imperatives. SieQuence emphasizes
proactive solutions and remote monitoring to detect potential problems before they impact performance. Standardized processes based on
recognized best practices ensure consistent Quality of Service across the organization – delivered by a nationwide support staff of over
5,000 certified support engineers. Reliability is guaranteed through Service Level Agreements, under the close direction of the Program and
Process Management Office. The PMO also oversees continuous improvement initiatives that enhance the performance of your IT
infrastructure and help to create a competitive advantage.


Flexibility – SBS provides solutions that are easily aligned to meet your current requirements. With an eye to the future, we have the
flexibility to scale our solutions to rapidly adapt to your evolving business initiatives. For instance, acquisitions/mergers/divestitures of
business units can drastically change your organization’s IT landscape. SBS can react to these changes quickly and effectively by
adding/removing capacity or functionality to minimize your risk and control costs within your enterprise.



End-User Satisfaction – SieQuence services are designed to significantly increase user satisfaction with their IT environment. Problems
are resolved promptly using remote support tools that avoid the need for onsite visits. If a visit is necessary, intelligent dispatch techniques
ensure that the correct part is available, the support engineer is fully qualified to handle the service event, and is familiar with the situation
prior to arrival. Users are more productive because their systems work optimally with minimal downtime or disruption. In addition, by
providing a single point of contact for service issues, the help desk provides a clear line of responsibility that eliminates miscommunication.



Leveraging IT as a Business Enabler – Ongoing Business Value Mapping ensures that the value relationship continues and strengthens
as client requirements evolve. Extensive experience supporting corporate clients worldwide enables us to accurately understand your
changing business environment and how it can be enhanced through the application of IT. We then have the ability to support the evolving
IT infrastructure through comprehensive and flexible solutions, spanning IT advisory, design, and technology implementation services.
Where appropriate, we can also extend your IT capabilities with innovative technology from our Siemens affiliates.




                 Our goal is to become a trusted advisor and global partner in support of your IT and business requirements.




                                                                             Page 8                                                                  7/14/2011
                                                                      SBS Sie Quence ROI Calculator
                                               Glossary of Terms
Creation of Value – Value is added to a company when earnings are enhanced, operational or financial risks are reduced
or when efficiencies results from a decision being made.

Payback – the number of years that will pass before the returns equal the original investment.
Net Present Value – The present value of future cash flows minus the initial investment.

Internal Rate of Return – the discount factor necessary to make an investment’s NPV equal zero. The internal rate of
return is the interest rate received for an investment consisting of payments (negative values) and income (positive values)
that occur at regular periods, and corresponds to a zero net present value (NPV). The formula for IRR uses the series of
cash flows (payments and income) and a guess value for the IRR. If the IRR guess is not relatively close to the real value
an “Unable to calculate” value is returned.
Best practice(s) A group of tasks that optimizes the efficiency (cost/risk) or effectiveness (service level) of the business
discipline or process to which it contributes. It is a standard benchmark for world class operations that is replicable,
transferable, and adaptable across industries.


Burden rate - The burdened rate covers benefits such as costs for medical/dental coverage, life and accident insurance,
retirement plans, stock plans, taxes, disability, social security, unemployment compensation, dependent care, tuition
reimbursement and employee assistance programs (physical exams, exercise programs and similar costs).

IS assets IS assets include client hardware and peripherals, servers, software, and network equipment that is used to
support an IS function rather than a business function (examples: training, test, and service desk devices). Also included
are hardware and software supporting asset management, database repository, network management, backup and restore,
and systems management. Assets that belong to IS personnel (in the scope of the analysis), but that are used primarily for
corporate e-mail and to run personal productivity applications, should be included in the production asset counts rather than
IS.


Peer support (end user operations) - The peer support category accounts for the annual labor expenses for end users
supporting each other in lieu of obtaining technical support from service desk or IS personnel. Typical tasks performed by
the end users include troubleshooting and repair, support, maintenance, installation, training, and backup management.
Particularly, these tasks are performed extensively by end users in remote offices that are not staffed by dedicated IS
personnel or covered by support contracts. Peer support is the reliance on a knowledgeable resource, typically the
unofficial “expert,” to provide support answers and resolve technical issues. Peer support often involves assistance of one
or more peers to resolve key issues, increasing per incident costs further.

Productivity gains Productivity gains are a measurable reduction in the time it takes for a user to do specific processes or
tasks, resulting in a resultant gain in the time they can spend on other productive tasks, or a resultant reduction in
headcount.

Turnover rate - estimate of the percentage of workers that leave the company each year through attrition, termination or
downsizing. This does not factor in growth rate.

Savings Ratio – this ratio computes the projected savings (over a three year term) of a SieQuence solution versus the
client’s current delivery model.




                                                            Page 9                                                       7/14/2011
July 14, 2011

Your Company Name
Address1
Address2
City, State, Zip

Dear John:

Thank you for your interest in Siemens Business Services, Inc. (SBS’) innovative cost management and service delivery
solutions. Our SieQuence solutions, built upon years of real-world experience, are a proven approach to driving out costs,
improving process efficiencies, and helping our clients achieve greater value from their IT investments in a time-efficient
manner. Investments in best-of-breed technology and our business consulting and management expertise enable us to deliver
high performance, scalable SieQuence solutions that help you streamline support processes and reduce the total cost of
supporting your distributed computing environment.

Many organizations today are looking at the costs associated with the IT support structure and trying to ascertain if better
alternatives exist. As part of our strategy, we feel it is critical that our solutions provide added business value and assist our
clients in better understanding and managing their IT infrastructure. As a result, we are happy to provide your organization
with the results generated from a preliminary assessment of your environment. As you know, the inputs into this tool came
from discussions with you and your team and are combined with industry standard data and observations which SBS has
garnered from our experience throughout the years.

The output from the tool is designed to provide a very credible (not precise), understanding of the costs associated with
managing and maintaining your IT environment. It is designed to help you better understand the potential return in
implementing a SieQuence solution from SBS. Additionally, the output from the tool will help us to more effectively work
with you to craft a solution that provides the scalability and flexibility you need to properly align your IT initiatives with
constantly changing business requirements. Should you require a more precise and detailed assessment of your cost structure,
SBS has analysis and assessment offerings to meet this need.

In comparing your costs to a SieQuence solution, please be advised that we have offered a preliminary fee/pricing estimate
that is based only on conversations to date. Should you desire to further pursue a SieQuence solution, the SBS team will work
diligently with you to provide a more comprehensive transition and management solution complete with a more detailed fee
structure .


Thank you for your interest in Siemens Business Services and SieQuence. I will be contacting you shortly to discuss next steps.

Regards,

Sales Rep Name
(555) 555-1212
name@company.com

				
DOCUMENT INFO
Description: Problem Management in the Networking Environment document sample