Microsoft EMEA Microsoft EMEA Retail Partners OpportunityRetail Partners Opportunity

Name

Title

AgendaAgenda

Industry DynamicsIndustry Dynamics

Smarter Retailing strategySmarter Retailing strategy

Microsoft strategy executionMicrosoft strategy execution

Retail Industry Top-of-Mind TodayRetail Industry Top-of-Mind Today

Business EnvironmentBusiness Environment

Improving supply chain efficienciesImproving supply chain efficiencies

Employee recruitment and retentionEmployee recruitment and retention

Industry consolidationIndustry consolidation

Global expansionGlobal expansion

Achieving sales and market growthAchieving sales and market growth

Developing a multi-channel strategyDeveloping a multi-channel strategy

Maximizing inventory productivityMaximizing inventory productivity

Assortment planning (product mix)Assortment planning (product mix)

Shrinkage and loss preventionShrinkage and loss prevention

Improving customer serviceImproving customer service

It EnvironmentIt Environment

Retail and Hospitality IT spends Retail and Hospitality IT spends 2% of sales versus industry 2% of sales versus industry average of 8%average of 8%

Home grown applications are more Home grown applications are more common than packaged solutionscommon than packaged solutions

Legacy systems hinder adoption of Legacy systems hinder adoption of new technologynew technology

Aging store systems with Aging store systems with proprietary technologiesproprietary technologies

Centralized IT with distributed Centralized IT with distributed operations and limited store operations and limited store bandwidthbandwidth

Need highly integrated environments Need highly integrated environments for real time responsivenessfor real time responsiveness

Fast ROI and strong TCO critical Fast ROI and strong TCO critical to justify investmentto justify investment

Speed of Change is Imperative…Speed of Change is Imperative………but the IT Infrastructure is a Business Impediment but the IT Infrastructure is a Business Impediment

Location-Based ServicesLocation-Based ServicesLocation-Based ServicesLocation-Based Services

The Wireless StoreThe Wireless StoreThe Wireless StoreThe Wireless Store

RFID and Sensing RFID and Sensing InfrastructureInfrastructure

RFID and Sensing RFID and Sensing InfrastructureInfrastructure

Web ServicesWeb ServicesWeb ServicesWeb Services

BiometricsBiometricsBiometricsBiometrics

““Disruptive Technologies” Will Fundamentally Change Disruptive Technologies” Will Fundamentally Change The Way The Way Retail Stores OperateRetail Stores Operate

Wireless creates asset and labor agility inside of the Wireless creates asset and labor agility inside of the store. It will enable more efficient store layout and new store. It will enable more efficient store layout and new models of checkout and in-store communicationmodels of checkout and in-store communication

Major Disruptive TechnologiesMajor Disruptive Technologies Emerging Innovative SolutionsEmerging Innovative Solutions

RFID will dramatically improve store efficiency in RFID will dramatically improve store efficiency in product receiving, inventory placement, out of product receiving, inventory placement, out of stock management, shrink management, and stock management, shrink management, and labor optimization labor optimization

Web Services will enable unprecedented application Web Services will enable unprecedented application integration within the store and fundamental integration within the store and fundamental breakthroughs in information sharing among breakthroughs in information sharing among trading partnerstrading partners

LBS unlocks the ability to interact with consumers LBS unlocks the ability to interact with consumers based on their physical location context as well as based on their physical location context as well as provide management with location-specific analytics provide management with location-specific analytics on product sell-through performanceon product sell-through performance

Increased security levels for payment transactions Increased security levels for payment transactions at the Point of Saleat the Point of Sale

The IT ChallengeThe IT Challenge

Today’s Today’s ITIT

Desired Desired ITIT

StoreStore ePOSePOS Self CheckoutSelf Checkout Unattended CheckoutUnattended Checkout Electronic SignageElectronic Signage Digital AssistantsDigital Assistants Smart ShelvesSmart Shelves Cross-Channel integrationCross-Channel integration RFIDRFID

New Innovations Will Occur At New Innovations Will Occur At The EdgeThe Edge Of The Retail Enterprise… Of The Retail Enterprise…

Core OperationsCore Operations ERPERP Merchandising SystemsMerchandising Systems Inventory ManagementInventory Management Promotions ManagementPromotions Management Traditional Replenishment Traditional Replenishment

SystemsSystems Human Resource SystemsHuman Resource Systems Labor ManagementLabor Management Enterprise Data Enterprise Data

WarehousingWarehousing

ConsumersConsumers

Multi-Channel Multi-Channel Shopping (shop Shopping (shop online/buy offline)online/buy offline)

Assisted ShoppingAssisted Shopping Personal Digital Personal Digital

AssistantsAssistants Mobile/Wireless-Mobile/Wireless-

EnabledEnabled

Merchandise Supply ChainMerchandise Supply Chain

Closed Loop Systems for Closed Loop Systems for Synchronizing Supply and DemandSynchronizing Supply and Demand

Information Transparency Across Information Transparency Across Trading PartnersTrading Partners

RFIDRFID

6

Success At Success At The EdgeThe Edge Will Be Driven By Will Be Driven By Smarter RetailersSmarter Retailers

The Perfect ExperienceThe Perfect Experience Give them what they want, Give them what they want,

when they want itwhen they want it In-Store InformationIn-Store Information

SmarterSmarterShoppingShopping Sharper SalespeopleSharper Salespeople

Customers as Customers as IndividualsIndividuals

Real-Time RetailingReal-Time Retailing Multiple Checkout Multiple Checkout

OptionsOptions

SmarterSmarterSellingSelling

Enterprise AgilityEnterprise Agility Execution ExcellenceExecution Excellence Capital EfficiencyCapital Efficiency Stores without WiresStores without Wires

SmarterSmarterOperationsOperations

7

Microsoft Smarter Retailing InitiativeMicrosoft Smarter Retailing InitiativeThe Vision, Strategy and Blueprint For Leveraging The Shift To The Vision, Strategy and Blueprint For Leveraging The Shift To The EdgeThe Edge

VisionStrategy

Blueprint

We will facilitate integrated innovation

at the edges of the retail enterprise and

enable retail solutions that allow our

customers to be agile in an ever-changing

landscape

Enable retailers to fundamentally

change the rules of the game in the store environment through visionary

technology leadership

SmarterSelling

SmarterOperations

Smarter Shopping

8

Consumers EnterpriseStore

Microsoft’s core differentiator is in allowing retailers to integrate and collaborate with consumers through their mobile technology solutions. Microsoft will continually enhance this differentiation by injecting disruptive technologies into the platform that further enhances the consumer/retailer relationship.

Microsoft is the only company that provides consumer-centric, Microsoft is the only company that provides consumer-centric, store-centric, and enterprise-centric retail solutions using a store-centric, and enterprise-centric retail solutions using a common integrated platform.common integrated platform.

SRI Benefits to the RetailerSRI Benefits to the RetailerConsumer loyaltyConsumer loyalty

Revenue upliftRevenue uplift

Store manager productivityStore manager productivity

Employee productivityEmployee productivity

Employee satisfactionEmployee satisfaction

Inventory turnover, out-of-stock and gross margin Inventory turnover, out-of-stock and gross margin improvementimprovement

Store IT capital and support cost takeoutStore IT capital and support cost takeout

Microsoft strategyMicrosoft strategy

So…. How do we execute thisSo…. How do we execute this

LOB FocusLOB FocusStore AutomationStore AutomationCore RetailCore RetailBIBISCMSCM

Deeper Relationships Deeper Relationships with Partnerswith Partners

Microsoft In Retail And HospitalityMicrosoft In Retail And Hospitality

Our Top 5 PrioritiesOur Top 5 Priorities

#3 S

olut

ions

Fra

mew

ork

#3 S

olut

ions

Fra

mew

ork

Job #1Job #1CustomerCustomer

Satisfaction!Satisfaction!

Job #2Job #2PartnerPartner

SatisfactionSatisfaction

#4 Retail Hardened#4 Retail HardenedWindows XP EmbeddedWindows XP EmbeddedBizTalk ServerBizTalk ServerSQL ServerSQL Server

#5 Driving Standards#5 Driving StandardsOPOSOPOSARTS – IXRetailARTS – IXRetailUCCnetUCCnetRFIDRFID

Global FocusGlobal Focus& Dedicated Team& Dedicated Team

PredictabilityPredictabilityLicensingLicensing SupportSupport

Product To Solution Product To Solution Paradigm shift in strategyParadigm shift in strategy

Product Company

Solutions Company

EMEA Customer Advisory Board EMEA Customer Advisory Board MembersMembers

BenefitsBenefits for Retailers for RetailersFocused Microsoft resourcesFocused Microsoft resources

Coordinated focus on industry leaders and industry Coordinated focus on industry leaders and industry standards bodiesstandards bodiesSales, Technical, Solutions, Services, SupportSales, Technical, Solutions, Services, SupportExecutivesExecutives

Industry expertiseIndustry expertise

Deep understanding of customer’s businessDeep understanding of customer’s business

Focus on integrated business solutions (Partner Focus on integrated business solutions (Partner Solution Offerings, Microsoft Solution Offerings)Solution Offerings, Microsoft Solution Offerings)

Direct link into RedmondDirect link into RedmondCustomer feedback is a major focus (e.g. XP Customer feedback is a major focus (e.g. XP Embedded)Embedded)Customer and Partner Advisory Council modelCustomer and Partner Advisory Council modelMore relevant products/solutionsMore relevant products/solutions

Executing On The Smarter Executing On The Smarter Retailing InitiativeRetailing Initiative

Integrated Integrated InnovationInnovation

Retail EnterpriseRetail Enterprise

ConsumersConsumers

CorporateCorporateStoresStores

System System IntegratorsIntegrators

ISV’s and OEM’sISV’s and OEM’s

Retail Line Of Business AreasRetail Line Of Business Areas

Store SystemsStore SystemsInventory controlInventory control

KioskKiosk

Labor schedulingLabor scheduling

Loss PreventionLoss Prevention

PharmacyPharmacy

Point of Sale, Fuel, Self-Point of Sale, Fuel, Self-checkoutcheckout

Shelf tagsShelf tags

Store signageStore signage

WirelessWireless

MarketingMarketing• Call Center – VRUCall Center – VRU• Coupon handlingCoupon handling• CRM solutionsCRM solutions• Customer LoyaltyCustomer Loyalty• EAIEAI• Multi-Channel RetailingMulti-Channel Retailing• Sales data warehouseSales data warehouse

E-CommerceE-Commerce• B2CB2C• Content ManagementContent Management• Enterprise portalEnterprise portal• E-LearningE-Learning• Store PortalStore Portal

MerchandisingMerchandising• Allocation and ForecastingAllocation and Forecasting• B2B (Supply Chain B2B (Supply Chain

Collaboration)Collaboration)• EDIEDI• Merchandise managementMerchandise management• Pricing optimization Pricing optimization • ReplenishmentReplenishment• Retail ExchangesRetail Exchanges• Space and Floor PlanningSpace and Floor Planning

Business servicesBusiness services• Business ScorecardsBusiness Scorecards• FinanceFinance• Human resourcesHuman resources• LegalLegal• RecruitingRecruiting• Sarbanes OxleySarbanes Oxley• Six SigmaSix Sigma

Central ITCentral IT

Application Development, e-mail, Enterprise Application Integration, Enterprise Project Management, Application Development, e-mail, Enterprise Application Integration, Enterprise Project Management, IT Infrastructure, Office Productivity, Data Warehouse, Telephony, Unix-to-Windows MigrationIT Infrastructure, Office Productivity, Data Warehouse, Telephony, Unix-to-Windows Migration

LogisticsLogistics• DistributionDistribution• Fleet ManagementFleet Management• RFIDRFID• TrafficTraffic• Warehouse ManagementWarehouse Management

Achieving Excellence in ExecutionAchieving Excellence in ExecutionPartner ManagementPartner Management

Alignment of Account/Territory

and Partner Business

PlansDemand generation & Prospecting

Partner Engagement

Pipeline Management

GTM & Industry Solution Planning

Five Major ActivitiesFive Major ActivitiesOne TeamOne Team Three ProcessesThree Processes

Relationship Management

Planning Together

Relationship ManagementRelationship Management

Planning Together

Opportunity Management

Selling Together

Opportunity ManagementOpportunity Management

Selling Together

Business Management

Managing Together

Business ManagementBusiness Management

Managing Together

Retail Big Bets for FY05Retail Big Bets for FY05Smarter SellingSmarter Selling

POSPOS

Connected POS devicesConnected POS devices

Smarter ShoppingSmarter Shopping

MobilityMobility

KiosksKiosks

Store as a MediaStore as a Media

Smarter OperationsSmarter Operations

Supply chain ( JDA/Manhattan/Eqos)Supply chain ( JDA/Manhattan/Eqos)

BI/Dash-boards BI/Dash-boards

GDS/RFIDGDS/RFID

Design winsDesign wins

How we deliver the Big BetsHow we deliver the Big Bets

Evangelize SRI across the IndustryEvangelize SRI across the Industry

SRI EMEA EBC’sSRI EMEA EBC’s

SRI pilots and ReferencesSRI pilots and References

Broad reach marketing Broad reach marketing

Clear SI propositionsClear SI propositions

Partner Led Selling with ISV’s.Partner Led Selling with ISV’s.

© 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only.© 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only.MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.