Key systems via Internet: Infoset is going on NEC web site with MSRP. Working to build a separate dealer locator for dealers signed on to sell Infoset. NEC will give dealers what they are putting on their web site. Message to Dealers is that this is an e-commerce product, huge marketplace and brand recognition.

Test is on hold due to software bugs and support issues.

Rebates have not been posted to accounts as of yet. Take up with NEC at afternoon meeting.

Dear Associate coming regarding the 192 CPU lots that have missing resistors. Dealers are going to charge to fix in the field problems.

NEC to work to create demand in the market for NEC products, brand recognition. Buyers choose minimum 3 products to look at; at minimum 80% of buyers should select NEC as one of the 3. The symptoms (low volumes) mask the true problem: NEC needs to make NEC a "household" name; needs to create the demand. It naturally follows that dealers will sell the products. NECSI wants to know how NEC is going to accomplish market awareness and demand.

Charlie Eazor moved to appoint Phil to investigate alternative marketing strategies. Motion passed.

Mark moved to present this branding issue as the core of the NEC meeting. Motion passed.

• NEC has created "In-Provide" web site

• Market and brand awareness initiative

• Yellow Pages - NEC downsizing YP presence and logo

• 90 renewals; 10 new; 54 listings

• ML agreement pricing structure does not apply to residential installations (an issue raised due to Infoset product)

• "N-CSE" program requires MSCE ... product training specific to NEC +MSCE training ...designed to create technical resources more attractive to NEC dealers as opposed to the Microsoft engineering market at large.

• Pay as you go support program designed for dealers who may have one or two off systems (e.g., GNAV) and insufficient resources to support cost of certification. Program makes sense, but NECSI should have been involved in developing stipulations. However, in cases that the dealer's certified technician is getting incompetent support from NTAC, the dealer will reverse bill.

• Dealers need proof that the NEC Dealer Manager and Sales Engineers have are also certified.

• Goal is to ensure flexibility and options through NEC for organizations to choose what is best for them. NEC has in theory agreed to this approach.

• Local tech supply is still best cultivated from vocational and/or technical schools in the area.

• Attracting good sales people is becoming a greater challenge than losing good technicians. However, techs are still getting offered attractive packages from end users and larger organizations.
• Step up visibility on the Recruiting issue...

• IVS2 is pricing out very well and performing well.

• Outstanding issue when quoting Hospitality application and using AD-40--NOT competitive.

• Where is NEC with SNMP? Network Management is becoming extremely critical--users will demand to see every device (that is PBX must support Simple Network Management Protocol).

• No enhancements. No changes. Nothing to report.

• NEC is looking for end-user testimonials for NEAX 2400. Suggestion: NEC executive should visit the casinos, prisons, etc. And solicit vertical testimonials.

• Update on Infoset. No idea what NEC intends to do regarding "Big-Box" distribution. Urged NEC to give dealer channel advance notice.

• Key System/voice mail packages are not designed with respect to what sells, but what needs to clear the warehouse.

• Dealers should be on look out for Elite/Elitemail payments.

• Steve's last year...need a volunteer to take over Webmaster. Think about alternatives for next meeting.

• Maureen highlighted report of activities by RCR in 1999. Greg moves to continue with RCR. Motion passed.

1. Review of NECSI-NEC Agenda

• Review of NECSI reason for being and accomplishments
• Fundamental issue – market awareness