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www.sumtotalsystems.com Success Profile “The tools that the SumTotal Learning solution provides us with have allowed us to put together a winning combination and blow the socks off our competition. The speed at which we are learning has given us a competitive advantage; making us smarter, better and faster than everyone else and putting us way ahead of the pack in the manufacturing equipment market.” Rod Jones Chief Learning Officer for Mori Seiki USA Fast Facts Industry: Manufacturing Countries: USA & Japan Users: 2,000 SumTotal Product: SumTotal Learning Mori Seiki - Creating a Corporate University BUSINESS CHALLENGES Disparate organization with 14 offices across the Americas and Japan that needed to deliver consistent, timely product training Highly technical, competitive market with need to train employees, customers and resellers SOLUTION Create professional corporate university – Mori Seiki University (MSU) to organize their training program Use a learning management system to create a learning platform that could provided a blended solution and allow for completion / certification tracking RESULTS SumTotal Learning increased speed to learning for customers and gave Mori Seiki a competitive advantage in the market Improved training for employees, dramatically reduced the number of safety incidents, and improved sales training and HR compliance Reduced overall costs of learning and training across the enterprise With more than 60 years experience as one of the world’s leading global producers and distributors of machine tools, Japan-based manufacturing company Mori Seiki has been dedicated to continued advancement in the industry through innovation and quality manufacturing. Headquartered in Chicago, Mori Seiki USA has 14 offices spread across the U.S., Canada, Mexico and Brazil and recently agreed to a strategic collaboration with German machine tool manufacturer, Gildemeister AG (DMG). In the highly-technical and computerized world of CNC (computed numerically controlled) machine tools where the technology is changing at a rapid pace, Mori Seiki found it was struggling to keep up with training employees, distributors and customers in a timely manner. Having hosted typical customer technical training courses for a few years, the decision was made to restructure into a professional corporate university — Mori Seiki University (MSU). That plan required researching and finding a learning management system (LMS) that would provide a foundation for the learning goals. Mori Seiki found that SumTotal’s Learning solution fit the immediate needs of their company. Mori Seiki Co., Ltd. 2-35-16 Meieki, Nakamura-ku, Nagoya City, Aichi, 450-0002, Japan www.moriseiki.com

Mori Seiki Case Study: Mori Seiki - Creating a Corporate University

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Mori Seiki finds a learning management system (LMS) in SumTotal that provides a foundation for blended learning goals. “The tools that the SumTotal Learning solution provides us with have allowed us to put together a winning combination and blow the socks off our competition. The speed at which we are learning has given us a competitive advantage; making us smarter, better and faster than everyone else and putting us way ahead of the pack in the manufacturing equipment market.” — Rod Jones, Chief Learning Officer for Mori Seiki USA

Text of Mori Seiki Case Study: Mori Seiki - Creating a Corporate University

Success Profile

Mori Seiki Co., Ltd. 2-35-16 Meieki, Nakamura-ku, Nagoya City, Aichi, 450-0002, Japan www.moriseiki.com The tools that the SumTotal Learning solution provides us with have allowed us to put together a winning combination and blow the socks off our competition. The speed at which we are learning has given us a competitive advantage; making us smarter, better and faster than everyone else and putting us way ahead of the pack in the manufacturing equipment market. Rod Jones Chief Learning Officer for Mori Seiki USA

Mori Seiki - Creating a Corporate UniversityBUSINESS CHALLENGES Disparate organization with 14 offices across the Americas and Japan thatneeded to deliver consistent, timely product training and resellers

Highly technical, competitive market with need to train employees, customers

SOLUTION Create professional corporate university Mori Seiki University (MSU) toorganize their training program

Use a learning management system to create a learning platform that couldprovided a blended solution and allow for completion / certification tracking

Fast FactsIndustry: Manufacturing Countries: USA & Japan Users: 2,000 SumTotal Product: SumTotal Learning

RESULTS SumTotal Learning increased speed to learning for customers and gaveMori Seiki a competitive advantage in the market

Improved training for employees, dramatically reduced the number of safetyincidents, and improved sales training and HR compliance

Reduced overall costs of learning and training across the enterpriseWith more than 60 years experience as one of the worlds leading global producers and distributors of machine tools, Japan-based manufacturing company Mori Seiki has been dedicated to continued advancement in the industry through innovation and quality manufacturing. Headquartered in Chicago, Mori Seiki USA has 14 offices spread across the U.S., Canada, Mexico and Brazil and recently agreed to a strategic collaboration with German machine tool manufacturer, Gildemeister AG (DMG). In the highly-technical and computerized world of CNC (computed numerically controlled) machine tools where the technology is changing at a rapid pace, Mori Seiki found it was struggling to keep up with training employees, distributors and customers in a timely manner. Having hosted typical customer technical training courses for a few years, the decision was made to restructure into a professional corporate university Mori Seiki University (MSU). That plan required researching and finding a learning management system (LMS) that would provide a foundation for the learning goals. Mori Seiki found that SumTotals Learning solution fit the immediate needs of their company.

www.sumtotalsystems.com

Its a struggle to bring people to a central location for training because of the cost that incurs. When we had to reduce our travel budget during the recession, we were already positioned perfectly online. Our organization benefits tremendously from being able to reach our employees 24/7 from anywhere. The configurability and flexible reporting capabilities of SumTotal Learning fit who we are as a company. Rod Jones Chief Learning Officer for Mori Seiki USA

The SumTotal Learning solution increased the speed by which information traveled throughout our organization, becoming a big cost saver. When you are a fractured organization like we are; with 14 offices throughout the U.S., Canada, Mexico and Brazil; more than 30 distributors across the country; and numerous engineers and salesmen working from their homes, that becomes critical, says Rod Jones, Chief Learning Officer for Mori Seiki USA. Its a struggle to bring people to a central location for training because of the cost that incurs. When we had to reduce our travel budget during the recession, we were already positioned perfectly online. Our organization benefits tremendously from being able to reach our employees 24/7 from anywhere. The configurability and flexible reporting capabilities of SumTotal Learning fit who we are as a company.

MULTIPLE LEARNING OPPORTUNITIESMSU offers a three-pronged approach to learning that includes online, on-site and classroom training with the goal of transforming regular machinists into highlytrained experts. With more than 40,000 machines functioning in the Americas and multiple people requiring training on each one of those, MSU offers numerous course options in nine languages. Mori Seiki USA also has 295 employees and nearly 600 distributor employees in need of training. At the end of FY2008, MSU had delivered nearly 19,000 man hours of instruction through 4,700 course completions. In FY2009, that number jumped to more than 30,000 man hours and 9,000 course completions. Jones expects that number to climb even higher once the DMG/Mori Seiki collaboration in the USA is complete. According to Jones, the SumTotal Learning not only provides Mori Seiki with the opportunity to train employees, distributors and customers on their machines, as well as manufacturing skills, it has also been a tremendous differentiator in the companys sales training, safety awareness and HR compliance. We went back and took a look at our safety procedures and started requiring that our employees train on safety issues once a month through the LMS. Since then, the number of safety incidents weve had has plummeted. We really believe that we have built a safety awareness here that has never existed before. Now, we drive all of our safety procedures and training documentation through the LMS. Its paying off, says Jones. Each employee at Mori Seiki has an assigned learning plan, including 45 hours of online training each year. Time is split equally among HR training, a managerselected plan and elective courses of the employees own choosing from the catalog of near 500 in the system. Jones says this gives the employees more focus and has been a significant difference in productivity.

SPEED TO COMPETENCY IS KEYMori Seikis customers also benefit greatly from the easy-to-access information via MSU, Jones says. Once an order is placed, customers can immediately begin online training programs before the machine arrives. Then, when the machine is delivered, an engineer arrives and conducts hands-on training as well. Customers can also come to the classroom for more instruction on machine models. Rapid deployment of information is beneficial when a company is stuck in a hard situation. We had a customer who found themselves unexpectedly without their machine operator. They were left hanging in the balance with contracts to fulfill and didnt have time for an engineer to come out and train them. The owner and

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About SumTotalSumTotal Systems, Inc. is the global leader strategic Human Capital Management (HCM) solutions that provide organizations with a new level of visibility to help make more informed business decisions and accelerate growth. Recognized by industry analysts as the most complete solution, SumTotal provides full employee lifecycle management, including a core system of record, from a single provider for improved business intelligence. The company offers customers of all sizes and industries the most flexibility and choice with multiple purchase, configuration, and deployment options. We have increased the performance of the worlds largest organizations including Sony Electronics (NYSE: SNE), AstraZeneca (NYSE: AZN [ADR]; London: AZN), Amway (KUL:AMWAY), Seagate (NYSE: STX), Dell (NASDAQ:DELL), and Google (NASDAQ:GOOG). For more information, or to request a demo, please call +1 (866) 768-6825 (US / Canada), +1 (352) 264-2800 (international) or visit www.sumtotalsystems.com

supervisor both had some, but limited, knowledge of the equipment and were able to start training immediately online and in several hours were back to making parts, tells Jones.

THE FUTURE OF MSUWith employees and distributors being the primary users of the LMS now, Jones says Mori Seiki plans on utilizing SumTotals extended enterprise solutions to reach external audiences. With the ability to create an open site Web portal as a public entrance into the LMS without a login, customers can access MSUs course catalog and purchase at the site as they subscribe for a course, thus reducing the companys cost. We plan to bring customers to our LMS in a big way. We want to create a domain for customers using e-commerce and develop a new revenue stream from that. We intend to have customers from around the globe come in and pay at the site as they subscribe for a course, helping us reduce cost and giving them instant access to information, says Jones. The tools that the SumTotal Learning solution provides us with have allowed us to put together a winning combination and blow the socks off our competition, Jones adds. The speed at which we are learning has given us a competitive advantage; making us smarter, better and faster than everyone else and putting us way ahead of the pack in the manufacturing equipment market.

www.sumtotalsystems.comCorporate HeadquartersSumTotal Systems, Inc. 2850 NW 43rd Street Suite #200 Gainesville, FL 32606 USA Phone: +1 352 264 2800 Fax: +1 352 264 2801

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