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P4081-R: Nextel - NexStep: Business Case Update, Version 1

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Government Exhibit 4081-R

Image of a man climbing and the NexStep logo

Business Case Update
August 27, 2003

NEXTEL-000807 CONFIDENTIAL

The Numbers for Phase 1

  • Current benefit calculations for phase 1 are as follows (2003 - 2007....as reviewed by business owners):
    • Total Net Value Gained - $

      REDACTED

      • $ total dollars budgeted/spend for phase 1 ($ net project dollars)
      • $ M in total dollars of benefits
        • $ in cost reduction (543 heads currently performing in scope functions
          • can be reduced by 237 heads to = 306 in 2006). This will enable Best-ln-Class performance.
        • $ in avoided costs (659 heads projected in 2006 without NexStep; 659 less 543 current =116 heads not hired in 2004-2006)
        • $ in targeted business cases cost savings and % in field benefit
      • NPV= $ (discount rate of 12%)
      • ROM 183% with field benefit

NEXTEL-000813 CONFIDENTIAL

Phase 1 FTEs Over Time

Total

[D]

NEXTEL-000815 CONFIDENTIAL

Mapping Hackett Areas for improvement to Phase 1 and Phase 2

  • Hackett Summary of functions with the biggest opportunity for improvement/savings mapped to NexStep Phase:
    • Finance
      • General Accounting - Phase 1
      • Order to Cash functions - Phase 1
      • Reporting - Phase 1 and Phase 2
      • Budget Planning/Forecasting - Phase 2
    • Tax
      • Planning - Phase 1 and Phase 2
      • Tax Report Filings - Phase 1 and Phase 2
      • Financial Reporting - Phase 2

NEXTEL-000817 CONFIDENTIAL

Mapping Hackett Areas for improvement to Phase 1 and Phase 2

  • Hackett Summary of functions with the biggest opportunity for improvement/savings mapped to NexStep Phase:
    • HR
      • Payroll - Phase 1
      • Benefits Administration - Phase 1
      • Compensation Administration - Phase 1
      • Organizational Effectiveness - Phase 1 and Phase 2
      • Recruiting and Staffing - Phase 2
      • Learning and Development - Phase 2
    • Procurement
      • E-sourcing - Phase 1
      • Electronic Invoicing/order acknowledgement - Phase 1 and Phase 2
      • Establishment of end to end procure to pay process - Phase 1 and Phase 2
      • Material Receipts - Phase 1 and 2
      • E-online auctions - Phase 2
      • Supplier Performance Management - Phase 2
      • Contract Management - Phase 2

NEXTEL-000818 CONFIDENTIAL

Updated August 14, 2015