Information Technology
Management at Plantronics
Tom Gill, VP / CIO
May 22, 2008
Highlights
Plantronics Overview
• History
• Mission / Differentiators
• Growth Opportunities / Products
IT at Plantronics
• Overview
• Roles
• Solutions
• Challenges / Trends
Q&A
Plantronics, Inc.
2
Plantronics Evolution
From Specialty Headset Company to Leader in Business and Consumer Audio Solutions
FY2008: $856.3M
Office
Office
34%
OCC
$520M
FY 1994: $132.3M
Majority Contact Center
Contact
Center
84%
Other
16%
Plantronics, Inc.
Music
$108.4M
13%
Contact
Center
29%
Mobile, PC,
Other
24%
$207.9M
3
Mission: Enhance Communications and Entertainment
Sound
Style
Simplicity
Plantronics, Inc.
4
Key Differentiator: World Class Sound
Radio Frequency Lab
Sound Chamber
Human Factors
Expertise in analytical and psycho-acoustics
Expertise in human factors
Mission critical development for NASA, FAA, Military, 911, NYSE
Over 400 Patents
Continue strong R&D investments
Plantronics, Inc.
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Key Differentiator: World Class Design
Darrin Caddes
VP Corporate Design
Plantronics, Inc.
6
Key Differentiator: Simplicity
Plug and Play
Wireless VoIP
Plantronics, Inc.
Integrated solutions
Multipoint Technology
& Quick Pair
7
Headset Growth Opportunities
WW Industry Revenue ($M)
•Industry
Secular CAGR’s
2-4% Contact Center
10-12% Office
4,000
10-15% Mobile
3,000
~10% Computer &
Gaming
2,000
2-4% Clarity
1,000
Overall 9-12%
0
CY07 (e)
CY12(e)
•Growth
rates vary with
economy, pricing trends,
replacement cycles, adoption
rate, and employment levels
Sources: Gartner, IDC, IDG, Strategy Analytics, NPD Intellect,
GFK, Carnegie Research, Company estimates
Plantronics, Inc.
8
The Big Opportunity: Office
Marketing to increase adoption
Upgrade existing users
Upgrade new users in faster cycle
Roll-out + introduction of office
communications solutions
Heads et us ag e
w ith the
des kphone (U.S .)
Us ers
O pportunity
7%
Telecommuters
New office work
93%
• Unified communications
Plantronics, Inc.
Source: Company Research
9
Unified Communications is a Huge Opportunity
Unified Communications is Expected to Increase Headset Adoption
Billions
$20
WW UC Ecosystem Revenue: 38% CAGR through 2011
$15
$10
$5
Mono
$0
2007
Plantronics, Inc.
Source: IDC 2007 Report
2008
2009
2010
2011
10
Premium Products for the Office
Excellence in Style, Simplicity and Sound
Plantronics, Inc.
11
An Emerging Opportunity: Home Office Professionals
No wires. No hands. All business.
Calisto Pro Series gives you the power to stay connected handsfree, anywhere you
work. The DECT phone with integrated Bluetooth headset answers landline, VoIP
and mobile calls.
Plantronics, Inc.
12
Collaborate Anywhere
UC Headsets for All Work Settings
Headsets Designed for the Way You Work
Telework:
Office work:
- Best voice fidelity
- Large wireless range
- At home mobility
- Multi-tasking work-life
- Multiple devices at home
On the go:
Hoteling:
- Privacy
- Portability of tools
- External noise
- PC + mobile device
- Portability
- No desk phone
13
Plantronics, Inc.
Confidential
13
Mobile Bluetooth Headset Opportunity
CAGR Forecast of ~15% through 2012
Units/Millions
160
Stereo Bluetooth to grow to 20% of Units
140
120
100
80
60
40
20
0
2002
2003
2004
2005
Mono
Plantronics, Inc.
Source: Strategy Analytics, August 2007
2006
2007
2008
2009
2010
2011
2012
S tereo
14
Spring 2008 Bluetooth Product Line
Explorer 220
Explorer 370
Explorer 360
Water, dust & dirt resistant
Editor’s Choice
Voyager 520
Voyager 855
Discovery 925
“Best in Bluetooth”
– CES Bluetooth SIG
Plantronics, Inc.
15
Consumer Audio Growth Opportunities
•Industry
Secular CAGR’s
10 - 14%: Docking Audio
5-7%: PC Audio
~12%: Combined
3,000
2,500
WW 2,000
Industry
1,500
Revenue
($M) 1,000
•Also
Pursuing Adjacent Markets
MP3-enabled cell phones
Home Audio
Headphones
500
0
CY07 (e)
CY12(e)
Sources: CES, IDC, Gartner, Apple, Company estimates
Plantronics, Inc.
16
Emphasizing the Altec Audio Heritage
Product, Design, and Sound Strategies
1) Research completed
to understand changing
consumer behavior in
digital music; create
products that intuitively
respond without adding
unneeded features and
driving up cost
3) Emphasizing 70-year
heritage of sound; created
credible sound signature
Consumer
Insights:
Solving REAL
needs
Create Desire
Through Design:
Visible emphasis on
audio performance
Altec Sound
Signature:
Natural sound and
fidelity
2) Design for the heart,
because music is intensely
emotional; reference
Altec’s audio history; use
ID to pull consumers;
focus on fit and finish
Plantronics, Inc.
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The Beginning of the Altec Lansing Portfolio Refresh
T612
IM600
Upgrader Series
iPhone Dock
iPod Dock
Wireless PT Series Sound Bar
XM3120
IM414
(2.4 GHz)
Plantronics, Inc.
18
Corporate Objectives for FY09 & FY10
Increase adoption of wireless headsets in the office
through continued investment in new products and
marketing campaigns
Upgrade our existing customers with compelling
product performance enhancements
Expand our market share and improve our profitability
in Bluetooth mobile
Improve overall cost efficiency
Improve the product portfolio and turn around the
profitability in our Altec Lansing division
Plantronics, Inc.
19
IT is Positioned to Help Meet Corporate Goals!
100+ employees in eight WW locations
• Key North America locations
• Corporate headquarters
• Mexico design center and factory
• Altec Lansing headquarters
• EMEA hub – Swindon, UK
• APLA hub – Suzhou, China
Emphasis on virtual teams and collaboration
• Distributed projects
• Centers of excellence
• Platform standards
• Common processes – migrating to ITIL framework
Plantronics, Inc.
20
Project Management – A Key Competency
Project Portfolio Management
• Increases business value of IT
• Aligns projects with strategic business drivers
• Requires ROI analysis and business case
• Includes governance model with periodic reviews
Project Management Framework
• Based on Prince2
• Emphasis on stage deliverables
• Requires stage exit approvals by IT and business stakeholders
• Consolidated using portfolio management tool that combines
projects sites and includes management dashboard
Plantronics, Inc.
21
IT Project Stages
Deliverables
Activities
Startup
Complete assessment of
business justification,
feasibility, benefits, costs,
ROI, and risk
Initiate
Prioritize project with others
in the queue
Assign IT Project Manager
Define project roles and
assign resources
Deliver
Execute the delivery and
testing of the work products
agreed to during the
previous stages
Close
Ensure that all project
documentation is captured
and published appropriately
Close out the project
Develop the high level
milestones
Ensure effective
communication and approval
of user acceptance, IT
change control, and support
plans prior to implementation
Project Brief
Baseline Project Schedule
Project Release Plan
Project Site
Resource Assignments
Project Close Checklist
Project Risks
Stage
Approval
Plantronics, Inc.
Stage Approval
Stage Approval
Stage Approval
22
Current Project Portfolio Summary
Stage
Project Count
Startup
62
Initiate
13
Delivery
34
Close
6
Plantronics, Inc.
23
Current Project Portfolio - Examples
Supply Chain Re-engineering and Optimization
• Demand Planning
• Sales and Operations Planning
• Global Order Promising
• Advanced Planning
Modular Messaging
Distribution Center Consolidation
Business Continuity Plan and Architecture Update
Plantronics, Inc.
24
Key Roles – Business Applications
Business Analysts – Configure business applications
to optimize business processes
Application Developers – Design and develop
applications, customizations and business intelligence
solutions
Database Administrators – Support and optimize
Oracle and MS SQL applications and databases
Project Managers – Coordinate activities and manage
risk
Plantronics, Inc.
25
Key Roles – Infrastructure Management
System Administrators – Manage servers and storage
platforms
Network Engineers – Manage wide area and local area
networks
Telecom and Messaging Analysts – Manage unified
communications infrastructure
Service Desk Agents – First line of support for
applications and employee technology assets
Plantronics, Inc.
26
IT Roles – Emerging Competencies at
Plantronics
Require dedicated resources
Project Management / PMO
Security
Compliance
Risk management and business continuity
Plantronics, Inc.
27
IT Solutions – Key Business Applications
Oracle E-Business Suite – Finance, HR, supply chain, HR, workflow
enabled
Salesforce.com – Sales and customer care
MS Sharepoint Server – Team sites and corporate intranet
Business Intelligence
• Information Warehouse
• Business Objects
• Oracle Analytics
• Hyperion Planning
Plantronics.com
Plantronics, Inc.
28
IT Solutions – Key Infrastructure Technologies
LAN / WAN
• Masergy MPLS WAN
• Cisco routers and switches and WiFi access points
• Checkpoint firewalls and VPN
• Riverbed WAN accelerators
Unified Communication
• MS Exchange / Outlook
• Microsoft Office Communicator (text, voice, video)
• Avaya VoIP Servers and Modular Messaging
• MS Live Meeting
Windows and Sun Solaris Servers
EMC Storage Area Networks
Mobility devices (Window Mobile, Blackberry, smartphones, wireless
notebooks)
Plantronics, Inc.
29
IT Solutions – Infrastructure Tools
Enable more efficient use of human resources
Device configuration – ensures consistency
Virtualization (VMWare)
• Faster deployment
• Less is more
• Green!
Remote support – in office, on the road and teleworkers
Monitoring tools
• Network
• Servers
• Applications
• Database extrusion
Plantronics, Inc.
30
IT Challenges at Plantronics
Managing global teams / projects
Business led initiatives
Change management
• Within IT
• Business impact
Process maturity
People!
Plantronics, Inc.
31
IT Trends at Plantronics
Migration to SaaS applications / Cloud Computing
Service Oriented Architecture (SOA)
Teleworking
Less is more
Plantronics, Inc.
32
Q&A
Plantronics, Inc.
33