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• ITIntelligenceServices 400FrankW.BurrBlvd. Teaneck,NJ 07666 Tel. (201)801-0050 Fax (201)801-0441 August12,1996 Mr.TetsuyaYoshida NTTData CardGroup AdvancedInformationNetworkServices viafax011-81-3-5546-8341 Emml: yoshidaat(gnoa.nttdata.jp DearMr.Yoshida: AttachedisINPUT'Sproposalanddraftreportoutlineforthestudy,"TrendsinValue CirculationManagementSystems". Waleterhnaavteetfeorlmlionwoeldoygoyuwrhsipcehciwfiecabteiloinse,veemxcaeypthetlhpattoweclahraivfyetihnessotmudey.plaWceeswoiflflebreedhappyto discussthecontentsandtheapproachtothestudyatfurtherlength. Asnotedinourproposal,INPUThasasignificantamountofexperienceinthisareaand welookforwardtoassistingyouintheimportanttask. Sincerely, ThomasO'Flaherty VicePresident Attachment cc. INPUTKK. FRANKFURT • LONDON • NEWYORK • PARIS • SANFRANCISCO • TOKYO • WASHINGTON.DC. *'li' • • \ • * • I PROPOSAL Submittedto NTTData August12,1996 Preparedby INPUT AtriumatGlenpointe 400FrankW.BurrBoulevard Teaneck,NJ07666 201-801-0050 Fax:201-801-0441 TRENDSINVALUECIRCULATION MANAGEMENTSYSTEMS OBJECTIVES I. NTTDatawishestounderstandthecurrentandfuturestatus,trends,factorsaffecting growthandforecastsizesofvaluecirculationmanagementsystems(VCMS). SCOPE II. ThescopeofthestudyisshowninthePreliminaryReportOutlineattached. E^UT applieditsinterpretationtoNTTData'sSpecificationsofJuly31,1996whichtookinto accountINPUT'Sunderstandingofcurrentandexpecteddevelopmentsinthetheseareas. INPUTwillbehappytodiscusswithNTTDatamodificationsinitsapproachand deliverable. METHODOLOGYANDCONDUCTOFTHEWORK III. INPUTwillformaprojectteamtocarryoutthisproject. Theteamwillconductthework forthisprojectinthefollowingway: • TheprojectwillusepublishedandunpublishedmaterialsusedtosupportINPUT'S priorprogramreportsandcustomresearchprojects. (ThesearedescribedinSection IV,below.) • TheknowledgeandideasofINPUT'Sstaffwillbeakeypointofaddedvalue, especiallyforassessingfiituredevelopmentsandidentifyingnewtypesofVCMS possibilities. • INPUTwilluseitsextensivecontactsamongvendorsandusers tolearnmoreabout pilotprojectsaswellas,insomecases,plansthathavenotyetbepubliclydisclosed. • INPUTwillsearchandreviewpublishedmaterialaswell. • INPUTwillinterview(or,inmanycases)re-interviewedVCMSproviders(orthose whomaybeconsideringVCMSservices)tolearnofspecificactivitiesthatbearonthis project. Theworkwillbecompletedwithin6weeksoftheprojectbeingauthorizedbyNTTData. IV. QUALIFICATIONS INPUTishighlyqualifiedtoconductthisstudy. INPUThasagreatdealofrecent knowledgegainedinperformingresearchandanalysisforitson-goingsubscription programsin • ElectronicCommerce • GlobalBanking(especiallyitsworkinElectronicBanking) • TheInternet INPUThasalsoconductedrecentcustomresearchstudiesininnovativetypesofnetwork- basedproductsandservices,newdevelopmentsincreditcards,forecastuseofSmart Cardsandassistingseveralmajorinformationservicesvendorsincreatingnewtypesof productsandservicesthatwillbeofferedinanetworkenvironment. V. FEES INPUT'Sprofessionalfeeforthisprojectis$60,000. One-halfofthisfee($30,000)isdue andpayableuponauthorization. Thisfeeincludesallexpenses. Theremainderofthefee isdueuponthesubmissionofthereport. Thisfeewillbereducedby10%ifNTTDataalsoauthorizesINPUT'Sproposalon "TrendsinCard-RelatedNetworkSecurity". Thisproposalwillremainvalidforthirtydays,unlessextendedinwriting. VI. AUTHORIZATION Toauthorizetheprojectasspecified,pleasesignandreturnonecopyofthisproposal, alongwiththeinitialfee. UponacceptancebyINPUT,acountersignedcopyofthe proposalwillbereturnedto. AUTHORIZEDBY: ACCEPTEDBY; NTTDATA ESIPUT Name Name Title Title Date Date 2 PreliminaryReportOutline TRENDSINVALUECIRCULATIONMANAGEMENT SYSTEMS A. THESTATUSOFCURRENTVALUECIRCULATIONMANAGEMENT SYSTEMS(VCMS) (1) CurrentStatus 1. CurrenttypesofVCMSoutsideofJapan a. Businessuses(SeeExhibit1forapreliminarylistofpotentialVCMS; notallofthesepotentialuseswillbecurrentlyusedorhaveannounced plans. ESIPUTandNTTDatawillagreeonafinallistbythesecond weekofthestudy.) b. Generalstatus,brokenoutby • Currentlyoperational • Pilot • Announcedplans c. Currentmarketsize • Volumeofunderlyingbusiness • ApproximatebusinessforVCMSsuppliers ValueCirculation 1 INPUT