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from outdated proprietary software • Typical profile - Companies with 25 – 500 employeesMarket Overview• Highly fragmented market, dominated by MYOB at the low end but no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