3 Step Upgrade Anton Chilton SVP Global Services

3 Step Upgrade Anton Chilton – SVP Global Services - QAD Jeff Kohagen – Consulting Manager - QAD 1

3 Step Upgrade Plan 2 1 Value 3 Plan Deliver 2

Recent Enhancements, New Modules MANUFACTURI JUST-IN-TIME TRANSPORTATI NG SEQUENCING ON EXECUTION MANAGEMENT WORKBENCH DESKTOP SALES FORCE. NET UI SHIPPING AUTOMATION 2007 MARKETING QAD ENTERPRISE AUTOMATION APPLICATIONS 2007 200 7 3

New Features - EE • COA Mask – Now on shared set level – Allows for a global chart of accounts with control on local (domain) combinations • Self Billing • Tax Registers – Tax register create – Italian tax registers

New Features • Statutory Currency • Shared Set Merge • Daybooks / AP Daybook Sets • Regional Balance Sheet / Income Statement • SSM – Accrued / Deferred Revenue Reports – Operational Metrics – Picklists for Depot orders

New Features • International Legal Documents – Supports documents for shipping / receiving documents – Control file setting to keep invoiced sales orders • Reporting Framework – Create reports directly from browses – Use EE financial browses

Upgrade Considerations 10

QAD 2009 EE Upgrade Considerations § § § § § Financial / Regulatory Business Implementation Technical Security Customization Reporting Tools Training Upgrade Plan

Financial / Regulatory Considerations 12

Financial / Regulatory Considerations • Internationalization – localizations are removed – International regulatory functionality incorporated in base product – Can impact all users – Time phased consolidation of international requirements

Business Considerations 14

Considerations • Understand your objectives in upgrading – Reporting requirements – Business analysis requirements • Is there a clear definition and understanding regarding shared services requirements ? • Measure baseline metrics before upgrade • Degree of change management or managing change that will be required 15

Business Considerations • The amount of business process reengineering that is envisioned to support initiatives such as Lean, Shared services, etc. – Customer Service Applications – Support Operations – Accounts Receivable – Accounts Payable

Business Considerations • General Ledger – – Expanded Account Structure New Reporting Structure Format Positions Removed Additional Setup • Business Relations • Shared Services – AP – AR

Business Considerations • Is there an understanding of what new functionality is available or net change from legacy version? • Will there be new features and functionality the business will be taking advantage? – – – – – Enhanced security CRM Lean manufacturing PIM Production schedulers EAM CSS Configurator Warehousing

Implementation Approaches 19

Implementation Considerations • Is this project considered a new implementation, technical upgrade or is it a reimplementation – Will a business process assessment (BPA) be required – Will business process reengineering (BPR) be required • Is this project a “lilly pad” for another upgrade – If so, how can it be positioned for the next upgrade

Upgrade Scenarios Technical Migration with data conversion Customization Data Conversion Small Process Changes Optimization Technical Migration without data conversion Conversion Data Load Small Process Changes Optimization Re-Implementation Re-define Business Processes Non-Intrusive Customizations Data Load 21

Centralize/Standardize First QAD MFG/PRO 8. 6, 9. 0, e. B 2 QAD 2007 QAD 2008 Standard Edition ERP Database Plant 1 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 1, 2 and 3 QAD 2009 Enterprise Edition ERP Database Plant 1, 2 and 3 22

Migrate first to QAD 2009 Enterprise Edition, than Centralize and Standardize QAD MFG/PRO 8. 6, 9. 0, e. B 2 QAD 2009 Enterprise Edition ERP Database Plant 1 ERP Database Plant 2 ERP Database Plant 3 ERP Database Plant 1, 2 and 3 23

Technical Considerations 24

Technical Considerations • Architectural – Number of databases – Number of domains • Options – Single database with multiple domains – Multiple databases with multiple domains – Single database with single domain

Technical Considerations • Database and domains considerations – Strategy for points of failure (single or multiple) – Database maintenance or shutdowns strategy – Language considerations in the same database – How many sites are you willing to upgrade at once – Time zone considerations

Security Considerations 27

Role Based Security • All application security in QAD 2009 EE is role based • Roles are defined for each discrete area of the business using Segregation of Duties concepts • Roles are linked to menu functions using Role Permissions • Users are assigned access to Domains and Entities • Users are assigned to roles for Entities and Domains • Tools provided for the automatic loading and editing of default roles and permissions – XML integration already available

Customization Considerations 29

Customization Considerations • The number and types of customizations to the legacy system – – – Is there a definitive list of customizations Is there an understanding of who owns each customization Is there an understanding of what each customization does Plan to replace customizations with standard functionality Remember - every customization in a multi domain database will need to have the domain key added • API’s and interfaces to 3 rd party software – Needs to be fully identified and go forward strategy developed • Is it within scope to update 3 rd party software solutions • QXtend – Integration Framework

Reporting Considerations 31

Reporting Considerations Requirement • Ad hoc reporting – Inquiries – Typically a one-time request for data Solution . NET Browses • Standard reporting – Typically run weekly, monthly, etc. – Fairly static in layout, query parameters, etc. – Can be run in batches and on a schedule • Forms and labels – Invoices, orders, etc. – Package labels, barcodes • BI reporting – Data Warehousing – Metrics/models – OLAP reporting . NET Reporting QAD BI 32

Workbenches, Browses, Collection • Pre-set with user ability to change and create new

Reporting 5 Create New, start with Browse, or modify Existing QAD reports 5 Add images, graphs and other controls 5 Additional Features 5 Windows Task Manager Schedules 5 Output documents, Excel, PDF 5 Release with QAD EA 2009 includes samples 5 Existing reports converted over time 34

Business Intelligence Return QAD BI 3. 0 “Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization. ” • • • Available NOW for Early Adopters GA in March 2010 Want more information? – Monica Borrell – mob@qad. com – 503 -329 -2394 What resonates? QAD Proprietary

Tools Considerations 36

Tools • • • Standard Conversion Tool Domain Merge Tool Custom Code Conversion Tool Program Tracer Tool Non-intrusive customization framework 37

Standard Conversion Tool • Background – Finance module tables re-built • Conversion guide – Document of the conversion process and required information • Pre-conversion utilities – Define basic set up decisions, and produces data integrity reports • Conversion – Typically need to run multiple test conversions • Post conversion validation • Configuration 38

Training Considerations 39

Training Considerations • Consider Enterprise Financials as an implementation of a new module – Core Team – – – – Introduction to EE (5) Advanced Financials (4) Security (1) Reporting Framework (3) Non-intrusive customization (5) System admin (4) Conversion (3) • Assess the training needed for the operational modules 40

Training Considerations 41

Easy On Boarding • Place holder 42

Appendix • Upgrade Plan

Q-Advantage Implementation Methodology Plan Design & Configure Test & Implement Accept Deploy & Manage Evolve Kick-off Project Complete Process & Technical Design Train End Users Complete Final Data Load Agree on Business Process Solution Design Train Core Team Complete Data Validation & Functional Testing Execute Cut-Over Plan Agree on Project Controls Build System, Scripts & User Procedures & Convert Data Complete System & Performance Testing Post-Launch Evaluation Agree on Project Plan & Resources Develop, Deliver & Test Custom Solution Conduct Stakeholder Validation Session Manage Applications & Support Determine Core Model / Rollout Requirements Validate / Refine Solution via CRP Cycles Develop Cut-Over & Deployment Strategy Adjust Core Model & Rollout Plan Communication & Change Management Program & Project Management 44

Sample Plan • Phases – 0 - Engage – 1 - Plan – 2 - Design & Configure – 3 - Test & Accept – 4 - Deploy & Evolve

Phase 0 - Engage • • • Complete Customer Profile Customer Full Product Presentation Functional Scope Workshop Technical Interview (infrastructure, sizing) Customization Scope

Phase 1 - Plan • Initiation Activities • Present Scope & Assumption (operational changes vs technical upgrade) • Kickoff & Train on Methodology • Project Management Planning Workshop • "Present PMP - Org, Policies, Change Process" • Multi-Site Strategy Workshop • Quality Assurance Planning Workshop

Phase 1 - Plan Change Management Strategy WS Business Solution Design Activities Custom Systems Design & Estimate Present Process Packaged Process Maps & Demo Execution Process Gap Analysis if Required & Resulting work as Change Order • Project Implementation Plan WS • Baseline Measurement Workshop (metrics) • Phase Closure Activities • • •

Phase 2 – Design & Configure • Technical Team Training 2009 EE Installation Class 2009 EE Administration Class QAD Reports Training 2009 EE conversion training 2009 Non intrusive customization layer training (confirm that this includes xml loads) – Security training – – – • Infrastructure development – – Install project environment Customer Database Review/Prep Data conversion test #1 System performance test planning • Core Team Training – User Interface training – Introduction to EE Financials – 2009 EE Advanced Financials

Phase 2 – Design & Configure • Solution Design – – – Data conversion review GL - process design AP - process design AR - process design Reports Develop security model • Development activities – Programming tasks – Third party integration • CRP Cycles – – – CRP 1 - initial pilot / prototype Create test scenarios / scripts data conversion # 2 Execute scripts CRP report out Issue review

Phase 2 – Design & Configure • CRP 2 – – – Update test scenarios / scripts data conversion # 3 Execute scripts CRP report out Issue review • Documentation – – Work aids GL - work aids AP - work aids AR - work aids

Phase 3 – Test & Accept • • • Develop and Agree upon Test Plan Acceptance Test Preparations Conduct End-user training - for User Acceptance Test Conduct Final Acceptance Tests Conduct Performance Tests Phase Closure Activities

Phase 4 – Deploy & Evolve • • • Develop cut-over plan Complete production system preparation Full end user training End user practice sessions Migration activities Go Live conversion Support post live processing Close and handover project Prepare for next site installation