janalent microsoft economic forum - march 2009

8/14/2019 Janalent Microsoft Economic Forum - March 2009

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Dr. Bernard Malamud, Department of Economics, UNLVAnne Chahal, President & CEO, Janalent

Rocky Griggs, Marketing Manager-Southwest, MicrosoftJoe Honan, Vice President-Solutions, Janalent


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Joe Honan, Janalent

Dr. Bernard Malamud, UNLV

Rocky Griggs, Microsoft

Anne Chahal, Janalent

Where we are &how we got here

Southern Nevada& SW US Outlook

What everycompany needsto consider

What ourcustomers are

doing


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Dr. Bernard MalamudProfessor of Economics


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EasyMoney

Policy

Capital Inflows

Eager HomeBuyers

InnovativeBanks

Rating

Agencies

AmbitiousMortgage Brokers

Securitization

MBSs

EscalatingHouse Prices

Govt SponsoredEnterprises

Developer Clout

Bank Regulators

The bestof times

A Global Saving Glut


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The Boom Years: High Real GDP Growth DecliningUnemployment

1997 20002003/4 - 2006

Growth > ~ 2.5 % Unemployment


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EasyMoneyPolicy

Capital

Inflows

Eager HomeBuyers

InnovativeBanks

Rating

Agencies

AmbitiousMortgage Brokers

Securitization

MBSs

EscalatingHouse Prices

Govt SponsoredEnterprises

Developer Clout

Bank Regulators

The bestof times


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The Downturn: Slowing GDP Growth Rising Unemployment

Growth < ~ 2.5% Unemployment

E l i L V M A


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Employment in Las Vegas Metro AreaJanuary 2009 vs. January 2008

Total All Industries

January2009

January2008 % Change

880.9 919.5 -4.2%Basic Industries

Accommodation 164.7 176.7 -6.8%

Casino Hotels and Gaming 158.9 171.2 -7.2%Construction 82.6 95.0 -13.1%Manufacturing 24.3 25.9 -6.2%

Other Industries

Financial Activities (FIRE) 45.9 48.0 -4.4%

Retail & Wholesale Trade 120.8 125.6 -3.8%

Trans, Warehousing & Utilities 37.2 37.6 -1.1%

Professional & Business Services 106.9 115.9 -7.8%Employment Services 10.7 15.7 -31.8%

Education and Health Services 67.1 64.6 +3.9%

Government 100.9 98.6 +2.3%Federal 11.5 11.3 +1.2%State 15.4 14.9 +3.4%Local 74.0 72.4 +2.2%

Unemployment Rate 10.0% 5.6%


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Financial System Meltdown

At home

Govt Supported Takeovers

Countrywide BofABear Stearns JPMorgan ChaseSilver State Bank Nevada StateMerrill Lynch BofAWashington Mutual JPM ChaseWachoviaWells FargoSecurity Saving Bank of Nevada

Interventions/Nationalizations/Pre-privatizations

IndyMacFannie Mae/

Freddie Mac

AIG

Bankruptcies

New Century Financial

Lehman BrothersWashington Mutual Inc.

Abroad

HBOS Lloyds BankFortis PNB Paribus

Northern RockRoyal Bank of ScotlandDexiaGlitnir/Kaupthing/

Landsbanki


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Baa-AAA Interest DifferentialThe Good News: 1932 was worseThe Bad News: This downturn isnt over until 2010

0.00

1.00

2.00

3.00

4.00

5.00

6.00May 325.64%

Apr 383.17%

Sep 822.69%

Dec 083.38


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Responses Lender of Last Resort / Spender of Last Resort

Tax Rebate $124 bil. Fed Fund Rate Cuts

Fannie/Freddie $200 bil.

Bear-Stearns $29 bil. AIG $174 bil.

Fed Facilities Primary Dealer Credit Facility (PDCF) $58 bil.

Treasury Security Loan Facility (TSLF) $133 bil. Term Auction Facility (TAF) $416 bil. Asset- Backed Commercial Paper Funding Facility (CPFF) $1,777 bil. Money Market Investor Funding Facility (MMIFF) $540 bil. More Fed Fund Rate Cuts Hold At ~0% Fed Purchases of Long-Term Securities: GSEs & MBSs $600 bil.

Term Asset-Backed Securities Loan Facility (TALF) $200 bil. Emergency Economic Stabilization Act/TARP $700 bil.Government LoansGovernment Equity

Stimulus Package$787 bil.aka The American Recovery and Reinvestment Act

TARP II Stress Tests


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Total funds to State of Nevada ~$ 1,710 mil. Education Stabilization & Construction 610 mil. Medicaid Assistance 419 mil. General Budget & Other 249 mil. Highways & Bridges 218 mil. State energy & Weatherization 80 mil. Clean Water Programs 48 mil. Transit capital 45 mil. Unemployment & Worker Training 22 mil. Child Care/ Foster Care/adoption 19 mil.


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Anne ChahalCEO & President


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Las Vegas 1st

Place in Bizjournals analysis of thenations current growth centers. Metros with mostmomentum entering the recession Nov 2008

Nevada Ranked Number Two in the Small Business &Entrepreneurship Council's "Small Business Survival Index2008" Dec 2008

US LEI (leading economic indicators) have trendedpositive in the last two months. Feb 2009

US New Housing Starts up 22% in February 2009according to the Commerce Department March 17, 2009


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Fastest growing region over the next 25 years 5 of the top 10 fastest growing states (Nevada,Arizona, Utah in top 5)

Predicted to be the hub for renewable energyand green collar research, jobs, & industry ~Possibly $7.35 B in energy investments or

borrowing authority for Nevada -Feb 2009estimates

70% of all goods from pacific rim will gothrough SouthWest


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Well positioned as leader for solar, geo-thermal, wind, andother green collar industries

Hoover Dam bypass bridge evolving western-slope Hwy 93NAFTA trade route

High-speed rail between SoCal & Las Vegas becoming areality and partially funded

Affordable and available commercial & residential property Business friendly regulatory and tax climate Unmatched ability to transform Well established base community & industries

Fantastic retirement community Technology and infrastructure (i.e. supernap datacenter) Worlds center for hospitality and entertainment

Film production industries Gaming/resort industry administration


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Increased funding for education, healthcare &energy Possibly$3.25 B in borrowing authority for

upgrading NV regional power grid $15 B in Small Business assistance $250 M in local NV transportation projects

Ability to write down 5 years of losses Reduction of estimated tax payments by 10% Accelerated asset depreciation

Increased SBA loan guarantees (from 50 to 95%)


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+

Climate & Weather+ Positioning as renewable resource hub

+ Leadership in national clean energy

+

Business friendly+ Supply & demand

+ Population migration trends

+

Increased industry expansion / diversification+ Stability & ease of access

+World class hospitality and tourism


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Dont just sit and watch it happen or watch othercompanies make money off of it.

Change happens. Technology happens. Embrace it!

No one plans to fail, but too many companies fail toplan or make necessary adjustments

If small businesses do some effective planning,manage their cash flow, keep on selling and acceptchange, they will be well-positioned in the SWmarketplace as we move into the future.


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Rocky GriggsPartner Marketing Manager


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Its not that bad, you got a free meal Words of wisdom

Industry Insights from Microsoft customers largeand small


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50 million = 38/13/5

Who was Federal Expresses largest customer?

We always overestimate the change that will occur in thenext 2 years and underestimate the change that will occurin the next 10. Don't let yourself be lulled into inaction.

If GM had kept up with technology like the computer

industry has, we would all be driving $25 cars that got1000 MPG.

You dont have to be great to start, but you have to start tobe great


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0%

20%

40%

60%

80%

100%

10-200 200-500 500+

15%35%

68%

75%

46%

11%

10%19% 21%

Increase

Decrease

No Change


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11%23%

57%

64%

25%37% 35%

44%

85%

64%

32% 16%

10-200

200-500

500+


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Help our customers identify ways to take unnecessary costout of doing IT

Enable customers to focus on their core business

Raise the stacks in Research and Development byincreasing investment from $8 to $9 billion this year

Continue focus on key strategic partnerships that have aripple effect in the economy


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Joe HonanVice President-Solutions


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Key Ways to Get Fit, Get Strong

Reassess strategic plan often, control spending, drive costs outof IT, strengthen core systems, operations, and processes.

Leading regional healthcare provider is on track to saveover $500,000 annually in facilities and maintenance costby virtualizing and moving off of legacy platform to a

Microsoft infrastructure. (Novell to Microsoft)

Analyze current burn

Identify & eliminate duplicated expensesRationalize & renegotiate maintenance contracts

Virtualize as a strategy, not a project

Consider on-line services where appropriate


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Key Ways to Spend more Wisely

Smart companies are increasing their bets and investments instrategic areas while their competitors re-trench

By focusing on business intelligence (CRM) and increasedmarketing budget, regional services firm has been able todrive over $300,000 in new revenue and 10 net-new

customers so far in Q1

Spend to Save!

Analyze & provide business case to support plansIdentify & rank spending opportunities / priorities

Use the opportunity to spend on value to customer

Take advantage of stimulus & incentives


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Key Ways to Increase Focus & Take Advantage

Increased focus rather than shot-gun diversification is a keydifferentiator between leaders & laggards in turbulent times

By replacing legacy systems, regional photographyorganization has been able to spend more time ongenerating revenue & enhancing online presence, rather

than managing ailing systems

Double down on strengths, cull non-performers

Identify & dump non-profitable relationshipsCreate 5 new ways to increase value-proposition

Invest in business analytics & customer mgmt.

Find ways to save your customers money


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Key Ways to Expand Base & Embrace Technology

Expanding customer base by thinking and acting in new ways isthe what is separating the up-starts from the start-ups

By implementing our business intelligence system andenabling community site links, we now have 10 times morevisibility into the contacts and details of our prospects with

10 times less expense

Its not your fathers internetits your kids

Viral marketing has had a HUGE impactGet your out there message out there

Build a community of customers for customers

PROVE technology is strategic to your organization


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Key Ways to Deepen / Strengthen Relationships

Rely upon key vendors, deepen relationships with key partners,strengthen networks of friendly competitors

By focusing on how we can help customers betterexercise their existing Enterprise Agreements, we havebecome THE trusted advisor for several organizations by

proactively finding ways to save by working with us

Open up to key vendors, theyll find ways to save

Focus partnerships and execute on a planBuild bridges rather than moats w/ competitors

Collaborate & Communicate with everyone

Develop an organizational Elephant Memory


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Expand Base & Embrace Technology

Find new customers through using new methods ofreaching them (e.g. Twitter, Social Networks)

Steps to Survive & Thrive in this recession

Get in Shape

Control spending, shed excess expenses, Virtualize,strengthen core systems & processes

Spend moreWisely

Increase investments in strategic areas, takeadvantage of competitors retrenching

Increase focus & Take Advantage

Increase focus rather than diversification, leveragebusiness intelligence to better understand customers

Deepen / Strengthen Relationships

Rely upon key vendors, invest into key partnerships,

find ways to work with competitors

Virtualize as a strategy, not a project

Continually assess &

Move email & collaboration on-line

Increase investments in getting your message out

Replace bad with good (e.g. legacy systems, storage)

Track & evaluate your spend (eg CRM)

Hyper-focus your message, utilize CRM

Only 2 things - Support revenue generation or save $$

Create new value, everyone is listening

Embrace and leverage the power of communities

Build communities for your customers

Prove the value of technology to your organization

Ask key vendors to find way to save you money

Use technology to prevent slipping through the cracks

Use trusted advisors to exercise existing agreements


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janalent microsoft economic forum - march 2009

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