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P4951: PeopleSoft - Account Plan: McDonalds, Prepared By Ernst & Govern, Update

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GOVERNMENT EXHIBIT P4951 Highly Confidential

Account Plan - McDonalds, Prepared by George Ernst & Charlie Govern
Updated: 4/9/01

OPPORTUNITY PROFILE
ACCOUNT
McDonald's		 MODULES
Global HR, Collaborative Apps, Payroll, Employee Portal, GL, AP, AR, Billing, Projects, Contracts, Assets, Franchise, Accounting, Treasury (via PSC - old Shelf Mod), EPM
ADDRESS
McDonald's Plaza		 PROJECTED CLOSE DATE
09/30/01		 PROJECTED REVENUE VALUE
$2,000,00
ADDRESS PROJECTED MAINTENANCE VALUE
$400,000		 PROJECTED CONSULTING VALUE
$500,000
CITY, STATE ZIP
Oak Brook, IL 60523		 SALES MANANGER(S) George Ernst — HRMS
Charlie Govern — Financials
Tim Moriarty — CRM		 SALES DIRECTOR/VP
Dave Lageiquist
Jon Gutierrez
Bob Simmons
PHONE
630-623-3000		 LEAD PRODUCT CONSULTANTS (FUNCTIONAL & TECHNICAL)
Melissa Zerbinopoulos — HR Lead
Julia Manson — Technical Lead
Financials — Sheila Dietsch Lead
FAX
630-623-5004 		CLIENT EXECUTIVE

Carolyn Jones

ACCOUNT EXECUTIVE
CUSTOMER'S BUSINESS PROFILE
REVENUE
35.5 Billion 		PROFIT
1.97 		EMPLOYEES
314,003 		FISCAL YEAR END PARENT COMPANY McDonald's
AUDITOR
Ernst & Young 		CONSULTANTS
PWC 		CONSULTANTS' ROLE IN EVALUATION Evaluation

PUBLIC/PRIVATE
Public

SYMBOL
MCD 		WEBSITE
www.mcdonalds .com
COMPANY DESCRIPTION (What do they do? )
Fast Food Restaurants
DECISION MAKING PROCESS & TIMING (Does the customer understand it?)
COMPETITOR'S & THEIR POSITION IN IN ACCOUNT ([Unreadable text])
Phase one for project Innovate is a 1 year design process. This phase should begin in June. Ideally they want to have a SW vendor selected and execute a limited use license to begin with.
They will evaluate the vendors over the next 45 days, (see last page for business process map)

At this point we have been told only PS and Oracle will make the shortlist

  1. Oracle - Has global database, limited financials in Latin America, Oracle Express for corporate planning, and a web based procure to pay in Asia/Pac
  2. SAP - no presence known
  3. IDE -has some product installed at various divisions /distribution centers
  4. Lawson -has payroll installed at McD's corporate
CRITICAL BUSINESS ISSUES FOR THIS SALES OPPORTUNITY & PROJECT/DATE DRIVERS
(What is causing them pain?)
Store focus of business process improvement - "Store is the Core"
Project Innovate - redesigning the stores for the future
Enabling the store manager to spend more time customers, vs business transactions
COMPETITIVE PRODUCTS INSTALLED- McDonald's does not typically force a corporate standard, thus you may find a variety of vendors Installed in different divisions and geographies.
Financials Oracle Europe, Some JDE at distribution centers
Human Resources Payroll Lawson, HR Legacy
Manufacturing Oracle - limited footprint
Supply Chain Manugistics
CRM - Sales Force Automation Home grown

PS-C372114

CRM - Customer Support Home grown
CRM - Help Desk Home grown
CRM- Field Service Home grown
Reporting, Business Intelligence Multiple vendors, uses Oracle Express for Corporate budgeting
eProcurement Limited Oracle
eCommeroe, Portal, B2B, B2C Yahoo!

Technology Standards

ITEM
CURRENT
TARGETED
DATABASE Oracle & IBM & MS  
SERVER IBM & Sun  
CLIENTS Windows 98 Windows 2000
OPERATING SYSTEM Unix, Windows. Some NT  
BROWSER IE  
SPREADSHEET MS Office  
WORD PROCESSING MS Office  
EMAIL    
MIDDLEWARE    
REPORTING & ANALYSIS Various  
PREFERRED HARDWARE PROVIDER IBM & Sun,  
SECONDARY HARDWARE PROVIDER HP  
TECHNOLOGY NOTES
They have a wide variety of hardware and software vendors in place. IBM has a good relationship and from a size perspective, is a good fit for DB2. We are hearing that this may he an Oracle/Sun platform. However, Microsoft is flanking strategically at an executive level and wants to go for the database and operating platform.

They have selected Yahoo as their corporate portal, but nothing has begun on that project

Dave Weick, the CIO is a visionary and is trying to install some corporate standards as well establish a high tech, leading edge technology base for the store of the future. We have been told that he has had multiple discussions with the CEO's of IBM, Sun, MS. From our understanding Ellison does not have exposure to the account

Contacts have already been made with all of the partners - see partner section.

Sales Cycle

STEP
WHO
DATE PLANNED
DATE COMPLETE
QUALIFICATION Ernst On going On going
BUY-IN DEMO Ernst/Timmer September 2000 September 2000
RFP/RFI Short List RFI - Ernst / Govern 2/22/01 2/22/01
SURVEY      
FIRST DEMONSTRATION To be done at PWC's Zone 3/14/01 3/14/01
SCRIPTED DEMO Various PS Team 3/24/01-3/25/01  
IMPLEMENTATION DEMONSTRATION      
TECHNICAL PRESENTATION Various PS Team 3/24/01- 3/25/01  
TECHNICAL DEMONSTRATION Various PS Team 3/24/01-3/25/01  
DOCUMENTATION REVIEW      
WRAP UP DEMONSTRATION      
REFERENCES      
SITE VISITS      
HEADQUARTERS VISIT Gorem/Ernst 3/24/01- 3/25/01  
FINAL PROPOSAL      
IMPLEMENTATION CLOSE      

PS-C372115

NEGOTIATION      
SEN CONTRACT      
       
       
SALES CYCLE NOTES
  1. Dave Lagenquist and Stacy Dallon met with the sr. executive, Ray Frawley on 3/10/01 to discuss project. This is a global project, he is from Australia and wants "global" executive alignment.
  2. PWC conducted a "side by side" comparison of Peoplesoft and Oracle for the McD's team at their Zone in Philly. Our team was able to influence that event and prep the PWC team. PeopleSoft showed very well at those meetings.
  3. McD'b has requested a scripted demo at our facilities, which we decided to conduct at our Corporate offices and complete a corporate review at the same time.

Contacts

Title
Name
Role
Phone Number
Fax Number
E-Mail Address
Roles: PL: Project Leader PS: Project Sponsor CS: Contract Signer HLA: Highest Level Approver E: Evaluator D: Decision Maker U: User A: Approver I: Influencer
Board of Directors See attached list        
CEO Jack Greenberg        
President Various per division - see attached list        
CFO Michael Conley        
CIO Dave Weick 1      
VP HR Stanley Stein        
VP CTO Infrastructure Chris Millington        
Dept. Director IT Strategy Don Chapman        
US IT - AVP Jim Sappington        
IT - Vendor Evaluation Contact Dave Roen        
Worldwide IT Strategy-VP Ray Frawley        
Sr. Director of HR Design Steve Russell        
Script Owner - HR Deanne Bevan        
Script Owner -Benefits Joe Pulichene        
Script Owner -Benefits Kathy Lietz        
Script Owner - HR Setup Pete Schmit        
Script Owner - HR Setup Cheryl Mark        
           
           
Peoplesoft Team 
Sales:          
RSM - HR - Lead George Ernst        
RSM-Fins Charlie Govern        
RSD-HRMS Dave Lagerquist        
RSD - Fins Jon Gutierrez        
           
Product Consulting          

PS-C372116

HRMS-Lead Melissa Zerbinopoulos        
HRMS Christine Ferguson        
Tech-Lead Julia Manson        
Tech-Portal Ben Bragg        
Tech - Global Architecture TBD        
Fins - Lead Shelia Dietsch        
EPM-Lead Rob Tenunfeld        
Contracts Doug Gray        
           
Executives          
           
CEO Craig Conway        
Global Operations Guy Dubois        
US Operations Phil Wilmington        
Regional -Midwest Jim Prekop        
CFO Kevin Parker        
Asia / Pac Andrew Barkala        
           
Additional          
           
AE Stacy Dalton        
Global HR Tim Lueth        
Global Fins Rene Lorton        
Services -Delivery Karen Pisha        
Competitive Analysis          
Proposal Specialist Tracy Landers        
RSS - Research Liz Rajalia        

Other Influencers

Consultants or Others
Role in Decision
Vendor Preference
Phone Number
PWC-Ernst/ Lagerquist Evaluation Neutral - for evaluation, however their PS practice is trying to establish a foot hold. Melissa Calahan -Client Partner
Derrick Robinson -BDM PS Practice
Frank Kruppe - PS Practice Partner
Dave Pauly - PS Practice Partner
Jim Ferensic - Partner PS Supply Chain
Mike Denzinger - IT Infrastructure contact
IBM - Govern Hardware - wants to keep Oracle DB out as much as possible, fully supporting PeopleSoft PeopleSoft Chris Foster - Account Executive
Dan Britton - PS DB2 Rep
Sun Running the manugistics project Unknown, we think Oracle Jerry German

PS-C372117

Microsoft - Ernst Operating system / DB - wants to keep SAP / Unix solution out, however we know there is a strategic alliance there. We met with the Midwest MS contacts and found out that the SAP is not strong and they are willing to work with us. Although we are still sorting out the potential partnership, if SAP does not make the shortlist, they only have PS to partner with. Willing to support Peoplesoft Inc. Marietta Davis - Sales / Team leader
D&T -Govern Dino is currently the CTO of a McD's subsidiary called Emac, an eBusiness technology development arm of McD's. They understand PWC's foothold, but wants us to at least put them on our preferred implementation partner list Unknown Dino Orfanos -Partner, account level
Dane Sullivan - PS Alliances
CGE&Y - Ernst Unknown - no contact yet, Auditor is E&Y Unknown  
KPMG-Govern They are calling us Unknown  
   
S
Retail
Transaction size - HR
Technology - Web, Integration, Portal
Global
Installed McD's accounts -Boston Market, Danatoes
Database flexibility
HRMS Best of Breed
Supply Chain

W
Little footprint in account compared to Oracle international fins install
Little knowledge on the account
Vendor Viability-perceived by McD's
Global Support - perceived by McD's
Global Fins - perceived by McD's

O
EPM and Balanced Scorecard
HRMS Retail
Portals
Ability to be creative on licensing
Make Payroll an issue for US and Global Payroll
GE Decision - momentum for PS against Oracle
Limited- Lack of an Oracle decision
Lease Management (Contracts)
Franchise Accounting capabilities

 T
No account momentum
Short decision time line
Not clear on decision drivers
Oracle installed in global financials

PS-C372118

Sales Strategy Analysis

How are we going to win this deal? - IN PROCESS
•••Evaluation Dimensions•••
  PeopleSoft Oracle SAP Lawson
Functionality - HRMS
  1. US Payroll
  2. Global Payroll
  3. Collaborative Apps for store manager self service
  4. Global HR
  5. Portal
  6. Helpdesk
  1. Global / Language capabilities
  2. Helpdesk
   
Functionality -Financials
  1. Global Fins
  2. Lease Management (contracts)
  3. Franchise accounting - rapid app
  1. Installed base at McDonalds
   
Global Support
  1. Need to show them we are a true global player
  1. Oracle will play this hard, that they have a bigger global presence for support.
   
Technology
  1. 100% web
  2. Integration
  3. Portal
  1. 100% internet - need to get the layers pulled back
   
TCO
  1. SW
  2. HW
  3. DB
  4. Implementation
  5. Support
     
Experience
  1. Retail
  2. Restaurants
  3. Large - Volumes
  4. Global
  1. Global deals
   
Services
  1. Global Support Center
  2. PeopleSoft Consulting
  3. Ed Services
  4. End User Training/ Web based for stores
    (?)
  1. Global Support organization in place
   
Vendor Viability
  1. Stability
  2. Cash position
  3. Ability to partner with them
  1. Oracle may play this. Mcd's has already raised this question re: PeopleSoft's viability
   
Additional Sales Strategy Analysis Notes

PS-C372119

References:

RSS currently do profile of retail and restaurant land global customer base. Currently being tracked in "retail.xls" spreadsheet Also developing a 1 -page profile to have AE's supplement critical data.

 
  1. Anywhere- Anytime (global and internet technology)
  2. Partnership
  3. Innovation
  4. Need something to sum up our ability to handle complex, multi-company and global organization
 

Global (this is a me to with Oracle, but we assume they will play this card hard)

  1. Functional - FINS
  2. Functional - HRMS / Global Payroll
  3. Technology
  4. Support - GSC
TCO
  1. Software
  2. Hardware
  3. Client
  4. Support / Services

Industry Experience

  1. Large Customer/Transactions
  2. Retail and Restaurant

PS-C372120

Additional Action Items

DATE ACTION ITEMS WHO
DONE
Respond to Ray re: Vendor Viability, Integration, 100% Internet, Large Global Customers Largerquist -
DONE
Call Partners and align:
PWC
IBM
Microsoft
KPMG
DAT
Ernst
Govern
Ernst
Govern
Govern
Need to refine
Research global retailers / restaurants
Boston Market - PS Customer
Danatoes -PS Customer		 Ernst /Rajalia
DONE
Coordinate the Zone Meeting - with PWC Ernst
Executive Alignment Lagerqusit to lead communications
DONE
Finish identifying team Govern / Ernst
DONE
Identify Sales Strategy, theme, messages Govern / Ernst
DONE
Identify global resources Govern / Ernst
DONE
Profile McDonalds, contacts, board members, org structure etc. Govern / Ernst
DONE
Oracle's Footprint at account Ernst via Melissa Z's husband
DONE
JDE's footprint at account Govern via Timmer and IBM
DONE
What products are apart of this evaluation Ernst via PWC/ McD's
In process
Contact GE Team and Debrief Ernst
Continuous
Team Communication and Account strategy documentation Ernst
  Global Technology Deployment - what would be recommended option for a system this size. Manson
  ECenter -explore options Ernst / Govern / Pruitt
  Research Oracle Wins / Loses - What is going on at Best Buy?  
In Process
Store Portal - develop a special (tore portal for the demo Ellis, Manson
In Process
Non-Disclosure Govern
DONE
Contact Sun rep Govern
DONE
Confirm date for corporate visit, corporate visit request Ernst
  Finish agenda for corporate visit Govern / Ernst
  Establish McD's relationships
Frawley - Craig / Guy
Weike - Phil / Govern / Prekop
Rieger - Govern		 Ernst / Govern to assign and communicate plan

PS-C372121

  Contact Steve Russell and Stanley Stein  
     
     
     

PS-C372122

McDonalds Directors and corporate officers

Board of Directors

Hall Adams, Jr.
Retired CEO, Leo Burnett & Co., Inc. (PS Customer)

Gordon Gray
Chairman, Rio AlgomLimited

Enrique Hernandez, Jr.
Chairman and CEO.
biter-Con Security Systems, Inc.

Jeanne Jackson
CEO, Wal-Mart com (PS Customer)

Donald Keough
Chairman, Alien &Company Incorporated

Donald Lubin
Partner, Sonnenschem Nath & Rosenthal

Walter Massey
President, Morehouse College

Andrew McKenna
Chairman and CEO, Schwarz Paper Company

Terry Savage
Financial Journalist, Author and President of Terry Savage Productions. Ltd.

Roger Stone
Retired President and CEO.Snairfit-Stone Container Corporation (PS Customer)

Robert Thurston
Business Consultant

Blair Vedder, Jr.
Retired COO. NeedhamHarper Worldwide, Inc.

James Cantalupo
Vice Chairman and President

Jack Greenberg
Chairman and CEO

Michael Quinlan
Chairman of the Executive Committee

Fred Turner
Senior Chairman

June Wartino
Honorary Director

Corporate Officers

Claire Babrowski
Executive Vice President

Charts Bell
President-Asia/Pacific. Middle East and AfricaGroup

James Cantalupo
Vice Chairman and President

PS-C372123

John Chadesworth
President--Midwest Division

Michael Conley
Executive Vice President, Chief Financial Officer

Kevin Dunn
President-Great Lakes Division

Alan Feldman
President-U.S.A.

Patrick Flynn
Executive Vice President

Henry Gonzalez, Jr.
President--Northeast Division

Jack Greenberg
Chairman and Chief Executive Officer

Jeffrey Kindler
Executive Vice President. Corporate General Counsel

Debra Koenig
President-Southeast Division

Raymond Mines, Jr.
Executive Vice President

Michael Roberto
President-West Division

Eduardo Sanchez
President-Latin America Group

James Skinner
President-Europe Group

Stanley Stein
Executive Vice President HR

Christopher Pieszko
Corporate Controller

PS-C372124

McDonald's Evaluation Process:

3rd Stage- Evaluate the Potential Options - Overall Approach

Evaluate the Potential Options - Overall Approach
[D]

PS-C372125

Updated August 14, 2015