GOVERNMENT EXHIBIT P4075-R
Slide 1 Financial, HR, Procurement Systems Overhaul Project Nextel Logo Executive Vision Follow-up Session - 09/26/02 Nextel Logo NEXTEL-000009
HIGHLY CONFIDENTIAL
Slide 2 Agenda - Hackett Summary of Benchmark Findings 12:30 pm - 1:30 pm
- FSO Summary of Findings to Date 1:30 pm - 2:45 pm
- Resulting findings of Joint Hackett/FSO Brainstorming Session 2:45 pm - 3:00 pm
- Break 3:00 pm - 3:15 pm
- Straw-man Vision 3:15 pm - 3:45 pm
- Project Approach Recommendation 3:45 pm - 4:15 pm
- Business Case Model 4:15 pm - 4:45 pm
- Budget Process 4:45 pm - 5:00 pm
- Schedule and Next Steps 5:00 pm - 5:45 pm
Nextel Logo NEXTEL-000010
HIGHLY CONFIDENTIAL
Slide 3 Hackett Summary of Benchmark Findings 12:30 pm- 1:30 pm Þ Establish a baseline of the current state
Þ Determine gap across five dimensions in comparison to world-class companies
Þ Evaluate key drivers of dimensions - Best practices utilization
- Partnering capabilities
- Staffing utilization
- Technology utilization
Þ Identify and prioritize short- and long-term opportunities
Þ Establish goals and measure progress
Þ Define tangible benefits and next steps
Nextel Logo NEXTEL-000011
HIGHLY CONFIDENTIAL
Slide 4 Hackett Summary of Benchmark Findings 12:30 pm- 1:30 pm Nextel Business Functions Were Measured Across 5 Areas World Class Strategic Alignment
Value - Linkage to business strategy
- Communication of strategy
Efficiency - Evidence of finance strategy
- Strategic planning results tracked
Process
Value - Meeting req./satisfaction
- Quality of reporting output]
Efficiency - Cost per transaction
- Total process cost
Partnering
Value - Capability of external partners to gain access to internal applications
- Collaboration with suppliers/customers
Efficiency - Viewed as partner in decision making
- Online application usage - internal
Technology
Value - Use of available functionality
- Information on demand
Efficiency - Application complexity
- Integration
Organization
Value - Utilization of managers and professionals
- Selective use of outsourcing
- Overall staffing level
Efficiency - Staff mix/span of control
Nextel Logo NEXTEL-000012
HIGHLY CONFIDENTIAL
Slide 5 Hackett Summary of Benchmark Findings 12:30 pm- 1:30 pm Finance overall scorecard - DRAFT  | [D] | Value Summary
- Application complexity is relatively low; high usage of available system functionality
- Managers' time allocation is heavily skewed towards transaction processing activities
- On-line exchange of information with external stakeholders is lacking
- Communication by Finance rated as poor to good
Efficiency Summary - No evidence of a strategy for Finance
- High total costs and staff level compared to 1Q
- Analysts' spend 75% of their time gathering/collecting data
- Several processes have a low cost per transaction
- Collaboration between Finance and business operations is not consistent
|
Nextel Logo NEXTEL-000013
HIGHLY CONFIDENTIAL
Slide 6 Hackett Summary of Benchmark Findings 12:30 pm - 1:30 pm HR overall scorecard - DRAFT  | [D] | Value Summary
- Percent of change efforts tied to business strategy is high
- HR proactively researches strategic business opportunities
- Service level agreements are used to a high extent
- Company information made available weekly
Efficiency Summary - Hours of required training is low
- Cost per EE is 4th quartile
- A formal documented HR strategic plan is only being utilized to a medium extent
- High manager staff mix
- Communication to employee about change midway through project
- Specific targets, scorecards and goals only built into success criteria 50%
- High percent of time collecting data instead of doing analysis
|
Nextel Logo NEXTEL-000014
HIGHLY CONFIDENTIAL
Slide 7 Hackett Summary of Benchmark Findings 12:30 pm- 1:30 pm Procurement - Overall scorecard - DRAFT SummaryHigh
Value
Procurement
adding value to
the organization | REDACTED | Value Summary - Procurement strategy is not communicated
- Limited partnering with suppliers
- Limited access to Web/electronic application functionality
- Relative low usage of best practices
Efficiency Summary - Basic Procurement activities done manually
- Limited utilization by procurement of cross-functional teaming
- Staffing levels are lower than first quartile
- Low productivity/High process cost
| | Low | High | | | | Efficiency
How efficient the
Procurement function is in
performing its role | | Nextel Logo NEXTEL-000015
HIGHLY CONFIDENTIAL
Slide 8 Hackett Summary of Benchmark Findings 12:30 pm - 1:30 pm - Nextel should not have the expectation that we can be a 1st quartile player in every area within one year
- A "home run" would be 15% improvement in each of the next 4 years
- Summary of functions with the biggest opportunity for improvement/savings:
Þ Finance - General Accounting
- Reporting
- Budget Planning/Forecasting
- Order to Cash functions (AR, Collections, Credit, Billing)
Þ Tax - Financial Reporting
- Planning
- Tax Report Filings
Nextel Logo NEXTEL-000016
HIGHLY CONFIDENTIAL
Slide 9 Hackett Summary of Benchmark Findings 12:30 pm - 1:30 pm Þ HR - Payroll
- Benefits Administration
- Information Management
- Recruiting and Staffing
- Learning and Development
- Organizational Effectiveness
- Compensation Administration
Þ Procurement - E-sourcing - online RFP/RFQ
- E-online auctions
- Electronic Invoicing/order acknowledgement
- Establishment of end to end procure to pay process
- Material Receipts
- Supplier Performance Management
- Contract Management
Nextel Logo NEXTEL-000017
HIGHLY CONFIDENTIAL
Slide 10 FSO Summary of Findings to Date 1:30 pm - 2:45 pm Þ Wherever possible, software will be off-the-shelf, with minimal customization. Þ Use industry-leading Best Practices as input to the software selection process. Þ After software solution is selected, business processes will be based on Best Practices of the software chosen, except as where noted by SMEs. Þ Requirements will be based on Best Practices and off-the-shelf functionality. Gap analysis will be performed to determine unique functional needs. Þ We want to create a unique, accelerated procurement process for this project. Þ Fewer systems are better (interface points are the weakest part of the infrastructure). Þ We will consider outsourcing functions in order to be world class.
Nextel Logo NEXTEL-000018
HIGHLY CONFIDENTIAL
Slide 11 FSO Summary of Findings to Date 1:30 pm - 2:45 pm Þ The interface between Atlas and Oracle could be problematic and may dictate part of the solution. Þ We want to use electronic signatures whenever possible. Þ We want to build in work flow wherever possible. Þ We should eliminate duplicate data wherever possible.
Nextel Logo NEXTEL-000019
HIGHLY CONFIDENTIAL
Slide 12 FSO Summary of Findings to Date 1:30 pm - 2:45 pm Included Business Functions | Human Resources | Accounting & Finance | Supply Chain | Tax |
|---|
| Benefits | Accounts Payable |
Asset Mgmt |
Tax Prep | Career Dev& Planning &
Competency Tracking | Accounts Receivable | Auctioning | Financial Reporting | | Compensation | Budgeting | Catalog Mgmt |
POS | | | Cash Tracking | Contract Mgmt |
Service | | Contractor Tracking | Commissions | Distribution Requirements
Planning | Use Tax | | Employee Admin | Consolidation | eCommerce |
TEMS | | Employee Communications | Cost Accounting | | Contract Review | | Employee Relations | Expense Reporting | Forecasting |
Planning | Mergers, Acquisitions,
Restructurings | Financial Planning | Inventory Mgmt |
Incentives | | Performance Mgmt | Financial Reporting |
MWBE and supplier database |
Research | | Policies and Procedures | Fixed Assets | P.O. | Accruals | | Recruiting | Forecasting | Property Management |
Tax Report Filings | | Succession Planning | General Ledger |
Receiving Goods |
Payments | | Surveys | Handset Inventory | Requisition |
Reconciliations | | Termination Processing | Journal Entry | RFP | Adjustments | | Training | Payroll | Supplier Scheduling |
Unclaimed Property | | Transfers and Relocations | Project Accounting | Vendor Eval | Audits & Litigation | | Workfoce Planning/Staffing | Revenue Mgmt | Work Order Mgmt | Property Tax Filings | | Workforce Deployment | T&E Processing | Assessment Review &
Controls | | Tax | Payments & Verification | | Data Warehouse | | Business Intelligence | | Compliance | | iConnect | | IT Infrastructure | | Engineering Operations | | Imaging | Nextel Logo NEXTEL-000020
HIGHLY CONFIDENTIAL
Slide 13 FSO Summary of Findings to Date 1:30 pm - 2:45 pm Other Organizations | Billing | | Cell Site Tracking | | Collections | | Corp. Financial Strategy | | Corporate Communications - Employee Communications | | Customer Care Productivity | | Downstream Reporting Tools from DW | | Employee Phone Fulfillment | | Extemal Business Relationships (Boost, NPI, NII.EDS, IBM Teletec, USI, Amdocs,) | | Legal Contract Mgmt | | Legal Litigation | | Legal Security/Privacy | | Nextel Retail | | Product Mgmt - Product Profitability | | Revenue Assurance | | Sales Commissions/Direct&lndirect | | Sales Distribution/Direct&lndirect | | Sales SFA | Spectrum Tracking | Nextel Logo NEXTEL-000021
HIGHLY CONFIDENTIAL
Slide 14 FSO Summary of Findings to Date 1:30 pm - 2:45 Human Resources  [D]
Nextel Logo NEXTEL-000022
HIGHLY CONFIDENTIAL
Slide 15 FSO Summary of Findings to Date 1:30 pm - 2:45 Human Resources  [D]
Nextel Logo NEXTEL-000023
HIGHLY CONFIDENTIAL
Slide 16 FSO Summary of Findings to Date 1:30 pm - 2:45 Accounting & Finance  [D]
Nextel Logo NEXTEL-000024
HIGHLY CONFIDENTIAL
Slide 17 FSO Summary of Findings to Date 1:30 pm - 2:45 Accounting & Finance  [D]
Nextel Logo NEXTEL-000025
HIGHLY CONFIDENTIAL
Slide 18 FSO Summary of Findings to Date 1:30 pm - 2:45 Tax  [D]
Nextel Logo NEXTEL-000026
HIGHLY CONFIDENTIAL
Slide 19 FSO Summary of Findings to Date 1:30 pm - 2:45 Tax  [D]
Nextel Logo NEXTEL-000027
HIGHLY CONFIDENTIAL
Slide 20 FSO Summary of Findings to Date 1:30 pm - 2:45 Supply Chain Management  [D]
Nextel Logo NEXTEL-000028
HIGHLY CONFIDENTIAL
Slide 21 FSO Summary of Findings to Date 1:30 pm - 2:45 Supply Chain Management  [D]
Nextel Logo NEXTEL-000029
HIGHLY CONFIDENTIAL
Slide 22 FSO Summary of Findings to Date 1:30 pm - 2:45 Overall Collective Rankings Data for this graphic was the result of numerous consulting firms numerically ranking leading software vendors (1, 2, 3, etc., with 1 being the most favorable) across identified business functions within Human Resources, Supply Chain Management, and Accounting & Finance.  [D]
Nextel Logo NEXTEL-000030
HIGHLY CONFIDENTIAL
Slide 23 FSO Summary of Findings to Date 1:30 pm - 2:45 Overall Rankings Summary by Firm Data for this graphic was the result of numerous consulting firms numerically ranking leading software vendors (1, 2, 3, etc., with 1 being the most favorable) across identified business functions within Human Resources, Supply Chain Management, and Accounting & Finance. Key Takeaways:
- Different firms have different preferences
- Deloitte and CGEY dramatically prefer Oracle overall
- KPMG, PWC, and Answerthink prefer SAP overall, though only marginally
| 
[D] |
Nextel Logo NEXTEL-000031
HIGHLY CONFIDENTIAL
Slide 24 FSO Summary of Findings to Date 1:30 pm - 2:45 Human Resources Ranking Summary | | PEOPLESOFT
(8.x) | ORACLE
(11i) | SAP
(4.6x) |
|---|
 | 1.00 | 1.30 | 1.30 |  | 1.65 | 1.85 | 1.70 |  | 1.00 | 1.09 | 1.00 |  | 1.44 | 1.88 | 1.75 |  | 1.06 | 1.11 | 1.28 | | AVERAGE | 1.27 | 1.53 | 1.44 |
Lowest rankings are preferred (and highlighted) Nextel Logo NEXTEL-000032
HIGHLY CONFIDENTIAL
Slide 25 FSO Summary of Findings to Date 1:30 pm - 2:45 Accounting & Finance Ranking Summary | | PEOPLESOFT
(8.x) | ORACLE
(11i) | SAP
(4.6x) |
|---|
| 1.00 | 1.00 | 1.00 | | 1.73 | 1.09 | 1.82 | | 1.39 | 1.00 | 1.72 | | 1.52 | 1.19 | 1.14 | | 1.27 | 1.18 | 1.27 | | AVERAGE | 1.41 | 1.07 | 1.42 |
Lowest rankings are preferred (and highlighted) Nextel Logo NEXTEL-000033
HIGHLY CONFIDENTIAL
Slide 26 FSO Summary of Findings to Date 1:30 pm - 2:45 Supply Chain Management Ranking Summary | | PEOPLESOFT
(8.x) | ORACLE
(11i) | SAP
(4.6x) |
|---|
| 2.26 | 1.95 | 1.63 | | 1.63 | 1.00 | 1.63 | | 1.44 | 1.28 | 1.44 | | 1.58 | 1.21 | 1.11 | | 1.78 | 1.39 | 1.06 | | AVERAGE | 1.73 | 1.36 | 1.45 |
Lowest rankings are preferred (and highlighted) Nextel Logo NEXTEL-000034
HIGHLY CONFIDENTIAL
Slide 27 FSO Summary of Findings to Date 1:30 pm - 2:45 Industry Summary Key Takeaways:
- Majority of HR systems are Peoplesoft; Majority of Financial systems are Oracle; a wide variety of tools are used for SCM.
- 13 of the 45 companies use a combination of Peoplesoft HR & Oracle Financials
|  [D] | Peer Sample (most company data was provided anonymously): Vodafone, Sprint Wireless, France Telecom, Nortel, SBC, Deutsche Telecom, AT&T, Weblink Wireless, Bell South, Lucent Network Services, Cingular, IDT Corp, France Telecom, Verizon, Motorola, Nokia (China), Ericsson, Bell Mobility |
Nextel Logo NEXTEL-000035
HIGHLY CONFIDENTIAL | 
U.S. Department
of Justice
