the cfo perspective
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The CFO Perspective. Richard Paik Financial Controller Microsoft New Zealand. Part 1 - The Microsoft CFO View. Where is the economy going The role of technology investments Optimising costs, productivity, profitability. Comparison to Previous Bears. 0%. -10%. -20%. -30%. Tech Crash. - PowerPoint PPT PresentationTRANSCRIPT
The CFO Perspective
Richard PaikFinancial Controller Microsoft New Zealand
Part 1 - The Microsoft CFO ViewWhere is the economy goingThe role of technology investmentsOptimising costs, productivity, profitability
Comparison to Previous Bears0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
-80%
-90%
Current Bear
Crash of 1929
Tech Crash
1 33Months after crash
Realities of the “New Normal”
Adjusted Growth Rate
RESET
23
“NEW NORMAL”1
HISTORIC GROWTH RATE
time
Economicgrowth
New Normal and Our Industry
Driving Growth in the New Normal1 Focus on Cash
Streamline the Cost Structure2
Invest in Innovation5
Drive Operational Excellence3
Compete and Grow Market Share4
Driving Growth in the New Normal1 Focus on Cash
Streamline the Cost Structure2
Invest in Innovation5
Drive Operational Excellence3
Compete and Grow Market Share4
Driving Growth in the New Normal1 Focus on Cash
Streamline the Cost Structure2
Invest in Innovation5
Drive Operational Excellence3
Compete and Grow Market Share4
Driving Growth in the New Normal1 Focus on Cash
Streamline the Cost Structure2
Invest in Innovation5
Drive Operational Excellence3
Compete and Grow Market Share4
Market Share in a New Normal
Market Share in a New Normal
Smaller Pie, Higher Share, Bigger Growth
Leaders Take Market Share
Leaders
Driving Growth in the New Normal1 Focus on Cash
Streamline the Cost Structure2
Invest in Innovation5
Drive Operational Excellence3
Compete and Grow Market Share4
Long-Term Approach to Innovation
SOURCE: 10K & 20K SEC Filings 12/31/08 Except Oracle 5/31/09, RIM, Sony and Nintendo 3/31/09
SonyOracleGoogleApple IBMCiscoRIMNintendo
$1.1B$2.8B $2.8B
$4.9B $5.2B$6.3B
$.7B$.4B
TOTAL FY09 R&D INVESTMENTFY09: $9.1B
Microsoft
FY10: $9.5B
Strength of Product Portfolio
BPOS
Why Partner with Microsoft?
Microsoft is a Great Partner in the Short Term
Microsoft is a Great Partner in the Long Term
Part 2 – The CFOIT Investments within the companyPlanningGovernanceResults
My guidelines to IT1. Business and IT aligned
PrioritiesDirectionFundamentals
2. Investment to realise gains across the business3. Cost savings on the bottom-line always good4. Predictable, budget-able5. Deliver the IT Strategy/Vision6. Total Picture – financial, costs, cashflow, tax,
capabilities7. Balance short term & longer term