Dynamics

Winning in the Enterprise

James Simpson

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

What do we mean by enterprise?

1. EPG vs. SMS&P ?

2. EPG is approximately 20% of the Dynamics business in

Australia

3. Many of our larger SMS&P customers are “enterprise”

4. Enterprise is typically characterised by

– Larger implementation size : 50+ concurrent users

– Complex decision making structures ( CEO, CFO, CIO, CTO )

– Existing investments and directions in IT

– Deployment and rollout is a bigger challenge that creating the

solution itself

– Cost of failure likely to include key people “pursuing alternative

career options”

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

Australian ERP/CRM Market Size

The market is fragmented - products

Our Conclusion

The market will consolidate around a small number of leading solutions over the next 5 years.

Our Conclusion

There are many customer criteria driving the market in play

Growth will be gained via differentiation in the targeting and delivery of different criteria

The market is fragmented - services

In a fragmented market ...

• We want to be the beneficiaries of consolidation

• Consolidation will happen as platforms age and retire, and

will generate a purchasing momentum over a number of

years

• Five things we can and should do in a fragmented market

1. Focus our business plans on customer acquisition

2. Industry collateral and references to build momentum

3. Highlighting competitive differences between offerings

4. Position the value of a platform based solution

5. Build people credentials (technical and managerial)

Market Opportunity for EPG AustraliaSource: MPF 2008

FY08

Market

$ Growth

CRM $ 89. m 4.60%

ERP $ 133. m 7.30%

MSFT Market Growth – EPG

Australia

IndustryMarket Size FY

20092007-2011

CAGR

CRMEducation $3.2 14.4%

Fin. Serv $34.7 4.8%

Government $8.3 7.2%

Health $5.7 5.5%

Hosting $2.3 0.8%

Mfg $7.1 -1.0%

Prof. Serv $4.4 1.2%

Retail $7.1 4.2%

Telco $12.6 1.3%

Utilities $5.3 0.3%

$90.6 3.8%

ERPAgri $6.4 3.9%

Education $6.1 18.3%

Fin. Serv $29.9 3.8%

Government $7.7 12.9%

Health $22.2 11.4%

Mfg $27.1 4.2%

Prof. Serv $8.4 4.8%

Retail $12.5 1.9%

Telco $11.3 7.8%

Distribution $5.3 2.8%

$136.9 6.5%

Notes• We have a small footprint today – Oracle & SAP dominate

• Great opportunity for growth in yellow spaces

• We cannot lead with a generic CRM or ERP discussion

• We cannot lead with “Rip & Replace”

• We need to focus on identified “workloads”

• Our emerging workloads talk strongly to yellow spaces

• Dynamics footprint in each yellow space already

• Addressable market : CRM = $68M, ERP=$78M

• We are currently taking 4-5% of our addressable market

Source IDC 2008

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

Our top challenges in enterprise sales

1. Executive influence - setting the agenda from the top

2. Ability to provide a smooth and seamless consortia

3. Ability to provide confidence around 24*7 support

4. Communication of platform pitch versus “best of breed”

5. Making sure the CFO and business sponsors and the

main recipients of our messages

6. Managing the resistance of IT groups “devoted” to other

technologies

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

Strong Fit Limited or No Fit

• Target vertical in manufacturing, distribution, or retail

• Up to 500 concurrent users per single instance

• Customer invested in MSFT platform (servers, app dev)

• Decentralized or federatedmodel

• Dissatisfied with current system

• Dynamic customer wanting agility, rapid delivery, and ease of administration; Tier 1 ERP viewed as complex and costly

• Specialized vertical where MBS not investing

• MBS is normally not positioned > 1K conc users per single instance

• Customer has no MSFT platform

• Centralized model andmandate for only 1 ERP system

• Happy with current system

• Customer with highly complex, specialized, and stable business processes as well as larger IT dept; Tier 1 ERP functionality desirable

Possible Fit

• Emerging vertical in prof services, govt, apparel, and oil & gas

• 500-1000 conc users per single instance

• Customer invested in multiple platforms

• Centralized model but not too big; replace current ERP

• Neutral on current system

• Customer with mixture of dynamic and stable business processes and medium-sized IT dept

Positioning Dynamics ERP in the Enterprise

Using or considering Outlook

Has tried to implement SAP or Oracle and has failed

Is concerned about the upgrade path based on acquisitions

Has complex sales requirements

Has complex service requirements including field service

Wants a single instance of an ERP solution

Needs vertically-specific functionality:

• Loyalty programs (retail)

• Trade promotion mgmt. (CPG)

• Claims processing (Insurance)

• Billing (Telco and Utilities)

• Marketing optimization (all B2C)

Highly transaction-oriented sales model (volume based, not relationship based)

Large contact centers with high volume of “one-and-done” issues

Significant out-of-the-box marketing automation requirements

Positioning Dynamics CRM in the Enterprise

Strong Fit Limited or No FitPossible Fit

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

What customers are telling Gartner

Top “evaluation criteria” when selecting a service provider

1. Technical skills

2. Solution skills

3. Project management skills

4. Industry expertise

5. Change management skills

6. Team member credentials

7. Speed to completion

Our Conclusion

Critical areas for improvement are:

Project management,

Delivery speed (scale)

Team credentials

Performance against purchasing criteria

Agenda

• What do we mean by “enterprise”?

• How big is the opportunity?

• What are the issues we see occurring day to day?

• How do we position ERP and CRM in this market?

• What do our customers think?

• Top 7 tips for winning in the enterprise

7 things we can do to win in the enterprise

1. Review our business strategies in context of a fragmented market –

are we sufficiently focused on customer acquisition?

2. Ensure that we use the platform pitch as key differentiator

3. Boost the skills and credentials of our teams in project management

4. Approach the market with specific offerings that map to customer

workloads or industry scenarios

5. Develop integrated support offerings and pitch them early

6. Focus on delivery approaches and organizational scale that allow us

to deliver against aggressive timelines,

7. Work with the executive team in the customer quickly and early