fyi
 

Mark Pickering 
Chief Technology Officer

Enron Net Works, LLC

  _____  

-----Original Message-----
From: Van Pelt, Chris [mailto:CVanPelt@gigaweb.com]
Sent: 20 November 2001 16:11
To: Pickering, Mark
Subject: FW: Giga Proposal and Order Form.


Mark,
Below you will find Julies response to your initial questions.
I am looking forward to getting you and Julie on the phone to discuss the most
recent updates and lay out some of the questions and issues you are/will be facing.
Regards
Chris
-----Original Message-----
From: Giera, Julie 
Sent: Tuesday, November 20, 2001 2:22 PM
To: Hurwitz, Bonnie; Van Pelt, Chris
Cc: Nelson, Gregory; Cecere, Marc; Jette, Susan
Subject: RE: Giga Proposal and Order Form.


 
 
 
My rating of Big 5 capability is:
 
Accenture:  Excellent with actual integration work; especially surrounding applications in the financial arena, manufacturing, consumer products.  Less experience with Oil and Gas; but good skills with newer web applications.  Prefer to take entire portions of the projects themselves, rather than work collaboratively with customers. Expensive.  Weaker on actual M&A strategic work, planning of an integration  or leading an entire effort like this.  Again, prefer to have control, rather inflexible in their approach, very dedicated to procedure and process - which is good to an extent...but tends to spend way too much time with administrative tasks and creating reams of paper and meetings than getting anything done when they are managing an effort like this.   Better choice for actual integration work, but should give them whole applications or departments (like finance, or distribution for example).  Not good with applications that require a lot of interface with other project teams and multiple business units.  Does not play well with others, so carve up chunks of the effort they can do on their own and you will get good results.  Lots of M&A integration experience as a result of their close relationships in the banking industry and consolidation that has been prevalent there over last 15 years.
 
PWC:  Very strong overall M&A strategy.  Great documentation of business processes for multiple vertical industries which can be very helpful in managing projects like this.  Project Management tools are strong, as is collaboration with other project teams or other business units.  particular strengths in integration work in financial services, manufacturing, telecomm; especially with applications like SAP and supply chain.  Price wise; middle of the pack.  Good choice for either role; but would recommend PWC serve either as project manager OR as integrator; not as both.  Would stretch them too thin with companies your size and complexity, I think.
 
Deloitte:  My favorite for M&A leadership and integration work.  Solid pricing, great business process documentation through templates they have created.  Very collaborative; works well with others.  Solid project mangement.   Experience with M&A for about 10 years; multiple projects and initiatives.  Good value for the money.  Particular strengths with CRM, Supply chain, ERP (SAP and Peoplesoft).  Vertical industry expertise in oil and gas,manuf, financial services, telecomm industries  Good value for money;but will also work to ensure that knowledge transfer occurs; so that internal IT personnel learn as much as they can.  Very customer friendly.  Good choice for either component; project management of entire merger - due to deep knowledge on process and knowledge data bases; also very strong integration practice.   If I had to choose, I would choose Deloitte to manage the project.
 
KPMG:  Weakest of all the companies in both project management and integration work.  Has not had a lot of experience with M&A leadership; does not have the strength of documented tools and business processes of the others.  Actual integration work would be ok, especially surrounding SAP, JDEdwards, Manugistics.  Project Management is ok, but there are better choices in the others right now.  KPMG is undergoing tremendous stresses internally right now; their European operation is really a loose federation of companies who are independantly owned.  The European portions are attempting to sell themselves to KPMG competitors; so internal politics detract from the ability of this company to focus on a large integration effort that may span 12 - 24 months.  Pricing is highly variable; depending upon business unit.  
 
Cap Gemini/E&Y.  The old E&Y had an excellent M&A practice that had years of experience with actually constructing deals, managing efforts, and doing integration work.  Cap Gemini has some experience with actual integration of companies, as they have been involved in key mergers in Europe and have done some pretty impressive work with large, complex integration efforts.  Cap Gemini presence still very, very weak in the US; E&Y personnel are still in the majority - however the E&Y personnel in the US are mainly in the management consultancy area, very few of the actual integration programmers remain here; most  of that work is being done by the Cap Gemini side of the house in Europe.  Cap Gemini and E&Y have done an impressive job with their own merger; one of the better run efforts in recent years; so from that perspective they would be an interesting choice.  Tools and methodology for project management are strong, integration work in US has been weakened a bit since the majority of this work has been passed over to Cap, and Cap's strength resides in Europe.  Pricing is mid-range, good value for dollar.  Experience with the major ERP and CRM apps; less experience with supply chain and buying exchanges.  Would be a good choice for project management, and if integration work were to have a major European component, would be a good choice for that portion of a project like this.
 
Bottom Line:  Best Choices for Project Management in order of preference:  Deloitte Consulting, PWC, CGE&Y, Accenture, KPMG
Best Choices for integration work:  Accenture/Deloitte, PWC, CGE&Y (higher in preference if big European component), KPMG.  Warning with Accenture:  Does not play well with others, and does not collaborate well with clients.  If, however, Enron prefers to have a company completely manage the merger, and does not wish to be involved quite a bit in this effort; then Accenture is a very solid choice.
 
Best Regards,
 
Julie

-----Original Message-----
From: Van Pelt, Chris 
Sent: Tuesday, November 20, 2001 11:56 AM
To: Giera, Julie
Cc: Nelson, Gregory; Cecere, Marc; Inquiry
Subject: FW: Giga Proposal and Order Form.
Importance: High



Some urgent questions from Mark Pickering.
 
Also, it sounds as though he would like a physical visit.
I've emailed to clarify that point.
Could your respond to this asap?
-chris
 
I have attached Mark's Vcard and his contact information below:
 
Phone: 713-853-7698
Mobile: 712-740-7406
 
Dear Inquiry Group:  Please log as Inquiry, Julie and I have coordinated already.
thx
 
-----Original Message-----
From: Pickering, Mark [mailto:Mark.Pickering@Enron.com]
Sent: Tuesday, November 20, 2001 10:43 AM
To: Van Pelt, Chris
Cc: Chisley, Katherine; Costello, Lisa
Subject: RE: Giga Proposal and Order Form.


Chris,
 
I have 2 questions that I'd like you to put to your M&A groups.
 
1) How would Giga rank the big consultancy firms in their ability to work as overall co-ordinators for a complete company to company merger such as ours.
 
2) How would Giga rank the big consultancy firms in their ability to work as IT integrationc onsultants for a company to company merger such as ours. 
 
I need these answers ASAP as we may use your results in our choice of company.
 
Given what I know now, I would also request that we have your M&A expert visit us early next week, as originally planned. I will also bring along the head of our integration team. Co-ordinate through Katherine.
 
Regards
 

Mark Pickering 
Chief Technology Officer

Enron Net Works, LLC

  _____  


-----Original Message-----
From: Van Pelt, Chris [mailto:CVanPelt@gigaweb.com]
Sent: 19 November 2001 18:38
To: Pickering, Mark
Subject: Giga Proposal and Order Form.


Mark,
It was a pleasure (as always) meeting with you last week and I am looking forward to working with you in the next year.
Attached you will find a revised proposal and subsequent order form for Option 2 as we discussed.  
 
I've set up the call with Julie Giera (Mark Cecere will likely join) for November the 29th at 10:00 a.m.  I believe 
you are aware of this and Catherine has put it on your calendar.
 
I hope that you will have a great Thanksgiving.
Sincerely,
Chris Van Pelt
 
Technology Advice. Business Results
Giga Information Group
www.gigaweb.com <http://www.gigaweb.com/>
Office: (972) 893-5325
Cell: (214) 914-0653
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