Hitting the Highs with ERPClaire Kennedy/ ERP Product ManagerMartin McCaffery/ Partner Account Manager

Agenda• Why is this important?• The Go to Markets• The Market Opportunity• Changing the game: New Models• Partners Changing the game: Case Studies• How Microsoft is thinking• Next Steps

Why is the Mid Market important

• Strengthen Microsoft Dynamics position as leader in mid-market• Increase market share of and increase ERP Adds• Reinvigorate GP and NAV as growth products• Expand reach through new channels to market

Microsoft

• Build new customer based & consistent revenue streams• Build services capability for volume business• Drive new delivery mechanisms, eg hosting• Establish additional lead generation systems

Partners

• Scalability of solution • Packaged solutions that meet their needs• Better functionality and flexibility• Simplified, more flexible purchasing options • Reduce purchase and implementation risk

Customers

Global Subsidiaries

Connect local entities to

headquarters

Global Organizations

Centralized ERP for multisite

organization

Vertical Business

Target specialized business needs

Improved Financials and

Operations

Beyond basic financials and

operations

The Dynamics ERP Go To Market

Growing business customers looking for ERP to cover core financial and operational functions IT and ERP seen as basic infrastructureLowest price is a major

decision criteriaLow cost, risk, and fast implementation

Typical Customer Profile

Customers Competitors

Financials and Operations

Improved Financials and

Operations

Partner ProfileLow-touch, low cost, high volume sellingFast, standardised, repeatable implementation

Typical Customer Profile

Customers

Tech 1

Pronto

Competitors

Mid-market companiesNeed vertical solution covering most business functions out of the boxTypically focusing on one vertical and in one geographyDrive operational gains through ERP

Local Vertical

Vertical Business

Partner ProfileStrong vertical focus and deep experienceFast, standardized, repeatable implementation

189.21 192.7 200.79 213.45228.55

0

50

100

150

200

250

FY09 FY10 FY11 FY12 FY13

ERP Market ForecastSMB

ERP Revenue

Market OpportunityTarget Market for Improved Finance and Operations and Vertical Business• Typically outgrowing entry-level accounting software but may be right-sizing or moving

from outdated proprietary software • Typical profile - Companies with 25 – 500 employeesMarket Overview• Highly fragmented market, dominated by MYOB at the low end but no clear leader at

the higher end - no clear migration path for businesses, opening the door to the opportunity of building market share

• Customers highly price sensitive, looking for predictability, packaged implementations, low risk

• The ERP market in SMB is expected to grow to $192.7M in FY10 and $200M in FY11, with CAGR of 4.1% over the next 3 years

Source: IDC Data

Thinking outside the box

Product & Service Offering

Pricepoint – what is required for your

target marketUp front fees Subscription

FinanceFixed price/fixed scope services –

rapid implementation

New Business Models

CloudAccelerate hosted

offeringsCustomer

Relationships – talk to them or

someone else will

Build Channel

Accountant/ Industry

association incentives

Lower cost of sale, drive down sales

cycleWhite Labelling

Referral program

Marketing

Online trialsClick-Try-Buy

Web/online demos vs in person

demos – low touch interaction

Click to Chat (ISS online)

Targeted Campaigns

Partners Changing the Game

Vertical Business

Improved Financials and Operations –

My GP CloudImproved Financials

and Operations

What partners can think about• Focus on volume• High growth aspiration• Sales and Marketing driven (dedicated resources for each)• Short implementation time through repeatability and

implementation methodology (RIM)• Offer fixed scope implementation packages• Low software:service ratio (ex. less than 1:1)• Business plan showing customers add expectation

– Example: Year 1: 25, Year 2: 50, Year 3: 100

• Create a repeatable, low cost marketing/sales process to execute targeted campaigns featuring fixed scope implementations

• Hosting – Understand the SPLA model • Setup landing page for their offering, pricing, evidence• Have integrated Click-Try-Buy offering• Leverage MS Financing or establish their own financing options• Leverage local Microsoft campaign efforts as applicable

Total IT Solution Financing

Sell software, services, and hardware as one

investment.

Flexible payment structures for customers to get all the IT solutions they need.

Financing Scenario

Simple, flexible,and affordable

Smarter way tosell IT solutions

VAR

MicrosoftSoftware and

Services

3rd Party Software

Partner ServicesInstallation

Hardware

How Microsoft is thinking • Reduce implementation cost and risk (RIM & online

RIM)• Create suites with everything for customer –

pricing to suit • Scale breadth awareness and marketing using

positioning and messaging• Provide on-line/teledemo and sales capabilities• Establish local specialists• Create factories leveraging hosting partners• Establish PAM role working with PDC on midmarket• More online trials, test-drives

What Now?

Build a business plan thinking outside the box

Work with Microsoft to deliver on plans