VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH

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VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
VERIZON GUIDES NATIONAL DCP
        THROUGH TECHNOLOGY REFRESH

                                                                  cloud.verizon.com/getstarted

Helen Donnelly
Executive Director, Strategy & Communications
Verizon Enterprise Solutions
May, 2015
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
National DCP LLC
                                                       Business Demanded Operational Transformation

 National DCP LLC, is a $2 billion
  supply chain management
  cooperative that serves Dunkin’
  Donut franchises
 Based in Duluth, Georgia
 Services more than 8,000
  Dunkin’ Donut locations in 51
  countries
 Services the U.S. stores that
  combine Dunkin’ Donuts and
  Baskin-Robbins ice cream shops

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   3
VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
Operational Transformation
                                            Business Demanded Consolidation to Drive Growth

 Improve                                                    Lower                                                            Relocate       Drive
Customer                                                  Sustainable                                                      from Boston,   Supply
 Service                                                    Costs                                                             Mass. to     Chain
                                                                                                                              Duluth,   Efficiencies
                                                                                                                              Georgia

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   4
VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
Operational Transformation
                                                                                     Business Goals and Cost Considerations

Support Dunkin’ Donut’s Expansion Plan:
 Support of limited time offers & changing product mix
 Double domestic & international footprint on a long-term basis
 Service must scale to meet increased sourcing and purchasing

Cost Considerations:
 Merge 5 disparate operating companies
 Integration of 4 regions with different methods of product sourcing
 Provide franchises and store managers a higher degree of
  interactivity
 Improve productivity within distribution centers

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   5
VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
Operational Transformation
                                                                                                                                          KPI’s to Measure Efficiency

                                                                                                                         Inventory turn ratios
                                                                                                                         Fuel costs
                                                                                                                         Order fulfillment
                                                                                                                         Demand planning
                                                                                                                         Pricing and margin
                                                                                                                          profiles
                                                                                                                         Customer satisfaction of
                                                                                                                          franchises

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   6
VERIZON GUIDES NATIONAL DCP THROUGH TECHNOLOGY REFRESH
Operational Transformation
                                                                   The Solution: Integration through Outsourcing

Verizon Technology Refresh Priorities:

 Data Center consolidation
 Support for variable                                                                                                                                 Four Main Platforms:
  workloads                                                                                                                                            1. SAP HANA CRM
 Self-service access                                                                                                                                  2. Ariba for vendor
                                                                                                                                                          management &
 Ability to scale resources                                                                                                                              procurement platform
  up or down as needed                                                                                                                                 3. Manhattan Associates for
 Platforms that the different                                                                                                                            Transportation platform
                                                                                                                                                       4. Manhattan Associates for
  businesses can use                                                                                                                                      Warehousing platform
  efficiently

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   7
Operational Transformation
                                          The Solution: Develop a Catalog for Phased Moves

        Defined  consistent approach & metrics
         to determine app suitability &
         deployment options
        Mapped apps to the different needs of
         the organization
        Identified apps not suitable for cloud

        Itemized apps that had critical
         dependencies to other systems
        Defined apps to be re-written

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   8
Operational Transformation
                                                                              The Solution: Flexible Deployment Options

             Public Cloud                                                                   Virtual                                                                        Private Cloud
             • Scalable,                                                                    Private Cloud                                                                  • Dedicated instance
               predictable                                                                  • Added levels of                                                              • Invoice-based with
               infrastructure on a                                                            configuration, control,                                                        limited upfront spend
                per-instance basis                                                            and support                                                                  • Deployed on your
             • Fixed VM shapes                                                                capabilities                                                                   premises or ours
             • Credit card billing                                                          • Flexible VM shapes                                                           • Cloud management tools
                                                                                            • Invoice-based                                                                  and Verizon expertise

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   9
Operational Transformation
                                                                                                            The Results: Positioned for Growth

                                                    starting
   200+                                             number
                                                    of servers                                                           77
                                                                                                                                    servers today,
                                                                                                                                            greatly
                                                                                                                                         reducing
                                                                                                                                          footprint
                                                                                                                                                                                               20%    of servers
                                                    across
                                                                                                                                                                                                decommissioned
                                                    environments                                                                                                                                 through scoring
                                                                                                                                                                                                    methodology
Colocation & migration
 services for large                                                                                                                          Replaced backup
     databases &                                                                                    infrastructure with backup
     physically migrated
     servers                                                                                                                      & restore service

40+                              applications to transition, re-platform with discovery
                                 definition interdependencies between systems
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   10
Operational Transformation
                                                                                                                                                                                 Lessons Learned

                                                                  FedEx can move data center equipment (LTL).
                                                                   Much cheaper than hiring movers….
                                                                  No one knows or understands their firewall
                                                                   rules. There are always hardcoded IPs.
                                                                  Never let a good crisis go to waste.
                                                                  A significant part of your infrastructure can be
                                                                   reduced/removed once an application
                                                                   justification is done; nothing can help to justify
                                                                   an application faster than having to pay for it to
                                                                   be moved and supported.
                                                                  Executive buy-in is necessary for transition.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   11
Operational Transformation
                                                                                                                                                      Critical Success Factors

            Ease of management,
             usage & cost tracking and
             alignment
            Network integration
            Standardized cloud
             resource across the
             organizations                                                                                   ‘…We outsourced our legacy systems, our
                                                                                                               data center, to a Verizon colocated
            Security & compliance                                                                          environment…and in Verizon Cloud… this
            Scalability                                                                                   has been an evolution over time as we took
            Consistency with existing                                                                        on new business and became deeper
                                                                                                                   partners with each other…’
             architectures
            Back-end connectivity                                                                                                - Darrell Riekena
                                                                                                        CHIEF INFORMATION OFFICER, NATIONAL DCP

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.   12
VERIZON CLOUD

                                                         cloud.verizon.com/getstarted

                                               https://www.linkedin.com/in/hadonnelly

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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