AmericasOutsourcingPursuitReviewSummarySheetPurposeofForm:Thepurposeofthisformistodocumentthekeydecisionsandactionsresultingfromreviews(OpportunityorDeal)byAmericasOutsourcing.Itaugmentstheopportunityreviewworksheetanddealoutlineprovidedbythebidmanagers/pursuitleadsasinputtothereview._____________________________________________________________________Account/OpportunityName:AmericanExpress,BPOopportunity–AssessmentresultTypeandDateofReview:DealReview,July22,2003OperateBidManager,SalesLeadorSalesV.P.:RickMcMichael,DanSullivan(alsoCharlesGreen,TonyRiggs,JimLuckett)RepresentingOperateManagement:JimPressel,MikeThomas,DaveBonner,BillFrechRepresentingOtherBU(Sector)Management:CharlesDelone,JoeRahaim,PaulO’BoyleOtherParticipation:DanFort,TrippO’Connor,RhondaPaxson,AnjanBanerjeeGo/NoGoDecision:No/GoRed____GoYellow__X__GoGreen_____OpportunityConcerns/Comments:DiscussedCGEY’sunderstandingofthebuyernetwork,buyingcriteria,andexistingrelationships.AlsodiscussedthepossiblecompetitivepositionsofAccenture(workinbackofficetravel),IBM(KenChenaultontheBoard),andExult(keyclientrelationshipsandpossiblewillingnesstobuydeal).ThekeyconcerniswhetherthebusinesscasebeingproposedwillbeattractivetoAmericanExpress(AXP).The$55Msavingsover10yearsforthein-scopeoutsourcingisnotsufficientonitsown.Theadditional$15Mperyearwilllikelybeattractive,butmightbediscountedbyAXPifitisnotclearhowtoobtainthesavingsorifthesavingsisnotguaranteed.CGEYalsoneedstounderstandwhatsavingstheclienthasbeenabletogeneratethroughtheirowneffortsoverthepast5yearsasabaselineforcalculatingtheexpectedfuturesavingswithoutoutsourcing.TheCGEYvaluepropositionmustimproveuponthisbaseline.Anotherkeydiscussionpointwasthestand-alonedealeconomicsandvariouspossibletimingsforbringinginotherbusinesstoimprovethedeal.ThisincludedassessingwhethertheexistingAXPERPsystemcouldbeofferedtoothercompanies,whethertheexistingAXPfacilitiesandprocessescouldbequicklymadeavailabletorunanotherCompaniesERPsystem,orwhetherbringinginnewbusinessisdependentuponcompletingtheimplementationofanewERPsystem.PursuitRevSum1_2003v2.doc15/7/2025CGE&YCompanyConfidentialAmericasOutsourcingPursuitReviewSummarySheetThepricingmodelassumedthatAmericanExpresswouldsupply17FTE’stohelpimplementthenewERPsystem.Historically,AXPhasnotbeenabletojustifythecostofanewERPsystem.ItwasagreedthatthissignificantofparticipationbytheclientwouldnotbebeneficialtoCGEYandwouldalsolikelynotbeaninvestmentthattheclientwouldwanttomake.ThepricingmodelassumesanOraclesolution,butitshouldbeopentootheralternatives(SAP).ActionItemsfromcall:ThenextkeystepistohaveadiscussionwiththeClienttodetermineifthebasicvaluepropositionissufficienttointerestAXPincontinuingdiscussions.Thebasiccomponentsofthebusinesscase(including$55Mcostsavingsover10yearsforin-scopeprocessesandanotherpossible$15Mannuallyforout-of–scopeduplicateprocessing)wereapprovedfordiscussionwithRalphAndrettaandotherkeyAXPdecisionmakersorinfluencers.Continuetofinalizeandexecutethestrategyforbuildingrelationshipswiththebuyernetworkandtoconfirmthebuyingcriteria.Also,needtounderstandthepersonalgoalsandobjectivesforRalphAndrettafor2003and2004.TheCGEYwinstrategywillneedtoconsiderthelikelihoodthattheopportunitywillnotremainsolesource.OnceitisdeterminedwhatthevaluepropositionmustlooklikeforAXPtomoveforward,thenthepricingmodelcanbere-workedtoimproveproductivity,reduceclientparticipationintheERPimplementation,etc.Additionally,CGEYwillworktoeitherexpandthescopetoincludesomeofthe$15Msavingsintothebasedeal,orfigureoutacontractorstructuretosolidifytheclientconfidenceinbeingabletoobtainthetotalpossiblesavings.PursuitRevSum1_2003v2.doc25/7/2025CGE&YCompanyConfidential
