Teleflora Case History The 1997 merger of Teleflora and Redbook Florist Services made Teleflora the world’s largest floral wire service. Computer Generation Incorporated (CGI) became part of Teleflora/Redbook company history when it began working with Redbook in 1994, and CGI has continued to assist Teleflora continuously since that time.

"The floral industry is an interesting one," says Paul Smith, assistant vice president of Computer Generation, Inc. (CGI). "For decades, the floral industry has been unique in its ability to offer its customers same day delivery both locally and across the country. Although this industry has relied heavily on time-consuming telephone calls between florists, the floral industry as a whole has always been open to the use of new technologies to make order processing faster and easier." FTD was the first national floral wire service to successfully blend technology with traditional flower shops when it placed its Mercury“ electronic order system in FTD members’ shops. For many years, all orders that were routed electronically were processed through Mercury. However, in the early 1990s, with Mercury’s per-use costs escalating and competition becoming more intense, companies including Redbook Florist Services and Teleflora started to explore the feasibility of building their own proprietary networks. Redbook began aggressively investigating the creation of its own network, and after reviewing proposals from several companies, contracted CGI to build its "TERRAsys‘ " network in 1994. "We chose CGI because their people are knowledgeable professionals who best understood our needs. We knew they could hit the ground running," said David Sluder, former executive vice-president for Redbook Florist Services and current director of network services for Teleflora Technologies. "They were more organized, had the best presentation and their telecommunications experience was perfect for this type of venture." The network had to be secure, reliable, cost-effective, and easy for the florists to use. CGI chose to build the network from the ground up, using a DOS platform for the client system (the Windows system was not yet readily available to all of Redbook’s members) with loosely coupled Unix network servers. Those florists would be able to enter order information on the client PC, which would then be sent to one of CGI’s three servers – the main and standby servers at CGI’s Atlanta headquarters and a backup in Ann Arbor, Michigan. These servers would be able to collect and route the orders to and from member florists and to Redbook’s customer service center at their headquarters in Paragould, Arkansas. CGI partnered with ADP AutoNet, as the carrier for the X.25 network technology providing florist access through a national network of POPs. "Our main challenge was putting together an architecture that would economically provide the uptime Redbook was looking for with the functionality they needed," Smith said. "The network we created has proven effective in meeting those goals." Redbook required a 24-hour, seven-day per week network. However, since most transactions took place during a twelve-hour, five-day window, it was not efficient to maintain a staff of network engineers around the clock. To maximize manpower, CGI developed a series of warning systems and a near-foolproof backup. If the main server fails, the stand-by automatically takes over and is functioning online in less than 5 minutes. In the unlikely event the stand-by server in Atlanta also fails, a third server can be activated in Ann Arbor within one half-hour assuring almost continuous service in the most extreme circumstance. In support of the automated server switching system, electronic monitors immediately recognize network problems and send alphanumeric pages to CGI engineers who are working to solve any problems within minutes of their occurrence. CGI not only partnered with Redbook to design and build the network, but also hosts and operates the network servers and is responsible for the reliability and integrity of the communications infrastructure and the application software. Unlike other vendors Redbook considered, CGI offered the option to implement a relatively modest system that could grow as its hardware and operations demanded. To give Redbook flexibility during the introduction of this new network, CGI negotiated their contract to provide an affordable, scalable solution to best fit Redbook’s changing needs. Redbook wasn’t the only floral system building its own network. However by 1997, CGI and Redbook had created the only one outside of the Mercury Network that functioned effectively. In June of 1997, Teleflora merged with Redbook, renaming TERRAsys ‘ the "Dove Network‘." Since the network went live in 1995, the Dove Network has undergone continuous and rapid change. Client systems now use Unix, Microsoft Windows 95 or NT technology. Servers and software have been upgraded. Cisco routers have been added to provide protocol translations and additional fault-tolerance. Dove has been expanded to take orders from Web sites and toll-free call centers. "With the growing success of Teleflora, our task was to transform this network to accommodate an exponential increase in transactions and the flow of information," Smith said. "We are proud of the fact that as computer and Internet technology evolved we were able to upgrade the network with state-of-the-art solutions and within the budget parameters of the original agreement." During this growing process, CGI provided counseling and was willing to change its plans to fit best with Teleflora’s changing needs. "We had two or three meetings with CGI every year," said Greg Markum, director of information systems for Teleflora. "They were integral in the planning process as Teleflora’s business grew." In the short time the Dove Network has been in place, Teleflora has seen the network grow from 2,000 to more than 12,000 member florists nationwide. Teleflora cites the reliability of the CGI-design as one of the reasons for that growth. "The Dove Network gives us another important and effective tool in which to communicate with the florist," Sluder said. "Once they have used the technology, we have found that the vast majority are inclined to continue using it because of the positive impact it has on their bottom line. In fact, we find that most users of the Dove Network are more likely to put additional services to work as their businesses expand." CGI also made efforts to reduce operating costs for Teleflora and its members. ADP AutoNet’s X.25 network (since divested and renamed the NetworkTwo Communications Group) worked well, but didn’t have local POPs in many rural areas. Thus, Teleflora’s members in smaller cities, without a local POP, were forced to dial in using a toll-free number, adding to the transaction cost. CGI established a second network using MCIWorldcom facilities, enabling local access for almost everyone. In addition to reducing costs the second carrier provided increased redundancy in the ground-based telecommunications links. In its continuing effort to ensure uninterrupted availability, CGI most recently added a satellite-based back-up connection between Atlanta and Paragould. Smith says, "We are proud to have helped make Teleflora’s Dove Network the fastest growing, most reliable and cost effective electronic order network in the floral industry."