Global SAP Implementation on a Business Benefits Realization Model

C l Zi h ffCarol ZierhofferVice President & Global CIO

December 2, 2010

This is ITT

High-tech engineering and manufacturing company

$11 billion in revenues

40,000 employees

Delivering extraordinary solutions to life’s most essential needs:

More livable environmentsBetter protection and safetyBreakthrough connections

2December 1, 2010

Three Vibrant – Growth Platforms

Global defense and security

Water and fluids management

Motion and flow controland security

Top 10 U.S. aerospace and defense contractor delivering advanced

managementWorld’s largest supplier of pumps and systems to transport and control

controlManufacturer of highly engineered, critical components for g

systems and providing technical and operational services

pwater and other fluids

pmultiple growth markets

3December 1, 2010

Global Profile

Commercial business revenues

• Operations in more than 60 countries• Employees and sales presence in

Growing presence in emerging markets

• China

Working in all areas of the world• Operations in more than 60 countriesrevenues

• North America: 41%• Europe: 38%• Asia: 11%

• Employees and sales presence in more than 125 countries

• Customers in 140 countries

• India• Eastern Europe• Brazil

• Operations in more than 60 countries• Employees and sales presence in more than

125 countries• Customers in 140 countries

Asia: 11%• Rest of the World: 10% Commercial business revenues

• North America: 41%• Europe: 38%• Asia: 11%

Fluid Technology: 31%

Defense business revenues• United States: 95%

I i l %

Growing presence in emerging markets

• Rest of the World: 10%

Defense business revenues• United States: 95%

International 5%

Motion & FlowControl: 11%

• International: 5% • China• India• Eastern Europe

• International: 5%• 70% DoD• 30% non-DoD

Defense & Information

December 1, 2010 4

Solutions: 58%

Future ITTCFO

Global reporting database for decision making

Post M&A integration handled Post M&A integration handled as a standardized procedure as a standardized procedure

M&A C it t

CEOCFO

VP HR

GroupPresidents

Centralized compliance and ensure segregation of duties

Immediate visibility into financial information and

Strategically Managing our global workforce

M&A Commitment

SRM

VP CorpRespon.

CIOfinancial information and streamlined consolidation

Defense FRCHCM SRM

ITStepwise integration of the new acquisition into corporate processes

FMC

Shared/Integrated manufacturing facilities serving multiple VCs with reliable lead times

Harmonized

C t

C

Supplier

SupplierCustomer

PartnerAn Integrated solution

5

Customer

CustomerSupplier

An Integrated solution to supporting improved visibility, cost mgmt & intercompany

November 17, 2010

Program BEST: Business Enablement & Strategic Transformation

Implement global business

processes

Deploy a common system

Leverage shared services

Connect people globally

Implement Industry “Best Practices” Standardize to optimize cost, quality and agility

Migrate to a standardized Enterprise Resource Planning System (ERP) using SAP

Global systems and processes Drive strategic growth and top line results in Emerging Markets and

Shared Services at the highest level for One ITT wayImproved controls environment

Single version of the truthBusiness can make decisions using real-time data

g gthrough Mergers & Acquisitions

6December 1, 2010

Critical Success Factors

Focus on Common

and Efficient

Focus on “Vanilla” and Industry Best

Practices (“Adopt not

Adapt”)

Agree on Business

and IT PrinciplesUp Front

Strong Executive

Have a solid

training plan and schedule

Business Processes

Executive Sponsorship/ Support from

BusinessStrong

focus on comms

and change

schedule

Assigning & Dedicating

the “A” Team

Experienced Systems

Integration Partner

change mgmt.

Co-locate all

Program Resources

Partner

7December 1, 2010

ITT & HCL AXON Partnership

Selection Criteria used by ITT HCL AXON Capability/ Key Differentiator

Company Strength Strong financial performance and global presence

P B fit R li ti M th d l G dApproach Proven Benefits Realization Methodology, Good cultural fit for ITT, Advisor & Partner

Aerospace & Defense Sector, Commercial Sector, Experience (Industry & SAP) Positive Client References, Successful SAP

projects

M th d l & T l Prototype in SAP, Organizational ChangeMethodology & Tools Prototype in SAP, Organizational Change Management focus, Sophistication of Tools

In February 2010, ITT selected HCL AXON as its system integrator for Program BEST

8December 1, 2010

after a competitive bidding process

HCL AXON’s Benefits Realization MethodologyProject Prep Blueprint Realization Final Prep Go‐Live & Support

rtun

ities Revenue 

Enhancement

Cost Avoidance

Document Validate Enable Realize

ses and Opp

oen

tified

Cost Avoidance

Cost Reduction

Working Capital 

Measurable Benefit

nefit Hypothe Id

o g Cap taReduction

Financial Engineering

Ben

Automation

Business Validation & Sign‐off Create Benefits

Cards

Plan, Transition,Monitor & Measure

Test

© HCL Axon 2009 – Commercial in Confidence

Hypotheses

HCL AXON has tied a portion of its fees to ensure the delivery of these measureable benefits to ITT

Program BEST – Accomplishments & Next Steps

2010 – Start Up & Global Blueprint 2011- Realization

Governance & Global Process Ownership EstablishedScope established: 1 Commercial, 1 Defense, Shared Services (Finance and Indirect Procurement)

Business Sign off of Global ProcessesLaunch Realization Phase: Begin prototyping in SAPContinued focus on Business Benefits Realization

Procurement)HCL AXON Quick Start with ITT Team181 Global Blueprinting Workshops Dedicated Facility Opened for Co-Located TeamDocumenting and Signing off BenefitsCreated early win with HCM Phase 1

Continued focus on Communications, Organizational Change Management & Training Planning for HCM Phase 2 Go Live globallyPlanning for deployments at other sites

10December 1, 2010

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