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P4962: PeopleSoft - Executive Briefing Document For 11/21/2002 Meeting In Herndon, VA

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PeopleSoft Proprietary & Confidential November 18, 2002

Executive Briefing Document

Meeting Information

Date: Thursday, November 21, 2002
Time: 11:30 am
Location: Marriott Worldgate - Herndon VA.

Company Information

Company Name: Nextel Communications, Inc.
Location: Reston, VA
# of Employees: 13,000
Revenue: $ 7 Billion
Industry: Wireless communications

Client Attendees

Name Title Comments
Dick LeFave CIO  
Bill Arendt Controller; VP of Accting. from AMSC, w/Nextel 7 yrs
Dick Cichanowicz VP, Operational Systems from MCI, w/Nextel 4 yrs
Catherine Szpindor VP, IT Planning & Support  
Kathy Hinton Sr. Director, Strategic Procurement  
John Causey Director, IT  
Lisa Fortin Director, IT  

Company Overview

Nextel Communications, based in Reston, VA, is the 5th largest US wireless provider, and a leading provider of fully integrated, wireless communications services on the largest guaranteed, all-digital, wireless network in the country. Nextel's 4-in-l service--Nextel Digital Cellular, Nextel Direct Connect®, Nextel Mobile Messaging and Nextel Wireless Web--covers thousands of communities across the United States.

Business Goals/Strategies

Nextel's core competency is the business customer, they offer many plans with very high minutes, and sell value based on employee productivity. Their annual revenue growth exceeded 30 % last year.

Highly Confidential PS-TE2251098

History with PeopleSoft/Current Applications Used

Nextel is a large user of Vantive CRM and HR. They have over 5,000 concurrent call center users on PSFT CRM. They purchased PSFT CRM Sales applications in March in a $1.4 million transaction. Current annual support fees are $ 1.9 million.

The HR application is outsourced to USi in an unsatisfactory arrangement. That contract expires in October and is not expected to be renewed.

Current software products licensed from PSFT are:

HR, BA, PR, CRM : Support, Sales, Mobile Sales, Marketing, Help Desk, Change Mgmnt, Telemarketing, Order Capture, Configurator, Communications Warehouse, CT1 Integration.

The relationship has been generally positive, however during a Vantive upgrade last year, they experienced serious outages, shutting down all of their call centers. This resulted in a $600,000 settlement paid by PSFT to Nextel.

Other key applications in place at Nextel are Oracle Financials and AMDOCS Billing. The AMDOCS product, Ensemble, was implemented in a $30 million project called BSO (Business Systems Overhaul) that was just completed. The Project Management team was led by Dick Cichanoiwicz and John Causey, who are running the Financials project (FSO) and will be in our meeting.

Current Opportunity

Products/Services: full Financials and Sourcing, procurement applications; final product set to be determined. Estimated revenue:

  • License $4 million
  • Consulting 750 k
  • First year support 800k
  • Training 250k

Competitive Landscape

Oracle is our only competitor on this project. Nextel will:

  • keep what they have (PSFT HR is being upgraded to 8 now by USi), and upgrade to Oracle Financials 11i
  • replace PSFT HR with Oracle HR to get to a single solution
  • replace Oracle Financials with PSFT Financials to get to a single solution

Highly Confidential PS-TE2251099

Partner Involvement

Nextel has issued and RFQ for the integration piece of this project. It was sent to AnswerThink, Accenture, Acumen Systems, Bearing Point, Business Edge, CG/EY, Deloitte, IBM/PwC, Oracle Consulting, PeopleSoft Consulting. Nextel expects to split the work across multiple partners based on expertise, price, etc.

Objectives for Meeting

This decision is expected to be made within the next 7 days. PeopleSoft has come from behind, as we believe the financials personnel at Nextel fully expected to upgrade to Oracle 11i, staying with what they are familiar with.

Our team did a tremendous job turning this around and now believe we are in the lead. Specific meeting objectives are:

  • Reinforce our value proposition,
  • Provide executive commitment,
  • Discuss the strategic direction of our Financial Management Solutions,
  • Provide details on technology differentiation
  • Highlight other differences between Oracle and ourselves.
  • Address customer request for partnership, PSFT use of Nextel services

PeopleSoft Contacts

RVP Kerry Calderwood
RSD Joe Janney
AE FMS Ron Thornton
AE SCM Jeff Souders
AE HCM Greg Stevenson
PAE CRM Trevor Banks
CE Chris Smith
CSE Marty Nagel
PC's Andy Morris, John Mervis, Chris Rebman. Lee Towne, and Scott Hirni

Highly Confidential PS-TE2251100

Updated August 14, 2015