Smarter RetailingSmarter RetailingVision, Strategy And Vision, Strategy And Partner MomentumPartner Momentum

Will RocheWill RocheWorldwide Retail and HospitalityWorldwide Retail and HospitalityMicrosoft CorporationMicrosoft Corporation

VS011VS011

AgendaAgenda

Vision of the future together Vision of the future together

Microsoft’s Global Retail and Microsoft’s Global Retail and Hospitality Organization and missionHospitality Organization and mission

Customers perspectivesCustomers perspectives

Smarter retailing initiativeSmarter retailing initiative

Priority solution areasPriority solution areas

Partnering opportunities Partnering opportunities

… … A Glimpse AheadA Glimpse Ahead

Why Microsoft?Why Microsoft?

Microsoft’s Enterprise PortfolioMicrosoft’s Enterprise Portfolio

RedmondRedmondParisParis

TokyoTokyo

Formed in 2002Formed in 2002

World wide focus with local World wide focus with local subs.subs.

450+ dedicated fte’s450+ dedicated fte’s

Industry experienced Industry experienced leadership team leadership team

Customer Advisory boardCustomer Advisory board

Partner Advisory boardPartner Advisory board

Microsoft Retail and Hospitality Microsoft Retail and Hospitality OrganizationOrganizationGrowing globallyGrowing globally

Latin AmericaLatin America

Industry vision and strategyIndustry vision and strategy

Industry standardsIndustry standards

Priority solution scenariosPriority solution scenarios

Prescriptive architectural Prescriptive architectural guidanceguidance

Industry specific productsIndustry specific products

Driving industry needs into Driving industry needs into core productscore products

SydneySydney

MumbaiMumbai

TorontoToronto

Industry SegmentsIndustry Segments

Retail and Hospitality

GeneralMerchandise FoodserviceSpecialty Retail

Lodging, Gaming& EntertainmentFood and

Drug

Conventional andConventional and

National ChainNational Chain

DepartmentDepartment

StoresStores

Discount or MassDiscount or Mass

MerchandisingMerchandising

StoresStores

Quick ServiceQuick Service

RestaurantsRestaurants(QSR)(QSR)

Full ServiceFull Service

RestaurantsRestaurants

(Bars, Casual Dining(Bars, Casual DiningFine Dining)Fine Dining)

Hotel and MotelHotel and Motel

Casino HotelsCasino Hotels

Theaters,Theaters,

Amusement andAmusement and

Theme Parks,Theme Parks,

Stadiums,Stadiums,

Museums, CruiseMuseums, CruiseLines, etc.Lines, etc.

Grocery Stores,Grocery Stores,

Specialty FoodSpecialty Food

Stores, andStores, and

Beverage StoresBeverage Stores

Pharmacies andPharmacies and

Drug StoresDrug Stores

Convenience/GasConvenience/Gas

Warehouse ClubsWarehouse Clubs

and Superstoresand Superstores

Apparel and SoftApparel and Soft

Lines:Lines:

Apparel andApparel and

Accessories,Accessories,Cosmetics, BeautyCosmetics, Beauty

Supplies, Perfume,Supplies, Perfume,

Health and PersonalHealth and Personal

Care StoresCare Stores

Building Material andBuilding Material and

Garden/Farm EquipmentGarden/Farm Equipment

and Supply Dealersand Supply Dealers

Hard Lines: Automotive, Tire, Furniture,Hard Lines: Automotive, Tire, Furniture,

Electronics, Appliance, Optical, SportingElectronics, Appliance, Optical, Sporting

Goods, Hobby, Books, Music, andGoods, Hobby, Books, Music, and

Miscellaneous StoresMiscellaneous Stores

On-SiteOn-Site

Microsoft In Retail And Microsoft In Retail And HospitalityHospitalityOur Principles And ProcessOur Principles And Process

GeneralGeneral

Industry visionIndustry vision

PrioritiesPriorities

Organization & Organization & leadershipleadership

Business Business performanceperformance

IndustryIndustryTaxonomyTaxonomy

TechnologyTechnologyStrategyStrategy

Microsoft smarter initiativesMicrosoft smarter initiatives1.1. Smarter retailingSmarter retailing2.2. Smarter hospitality: foodservice solutionsSmarter hospitality: foodservice solutions3.3. Smarter hospitality: lodging solutionsSmarter hospitality: lodging solutions

1.1. Customer satisfactionCustomer satisfaction2.2. Partner satisfactionPartner satisfaction3.3. Solution frameworkSolution framework4.4. PG integrationPG integration5.5. Industry standardsIndustry standards

1.1. Store automationStore automation2.2. Real-time analytics Real-time analytics 3.3. Supply chain managementSupply chain management

Microsoft .NETMicrosoft .NET1.1. Retail prescriptive architectureRetail prescriptive architecture2.2. Hospitality prescriptive architectureHospitality prescriptive architecture

ExecutionExecution

SolutionSolutionPrioritizationPrioritization

Industry priorityIndustry prioritySolutionsSolutions

1.1. Market assessmentMarket assessment2.2. Line of business analysisLine of business analysis3.3. Solution area prioritizationSolution area prioritization4.4. Solution provider positioningSolution provider positioning5.5. Solution prioritization mapSolution prioritization map

1.1. MarketingMarketing2.2. Sales readinessSales readiness

Over 60 partners supporting Smarter Retailing Over 60 partners supporting Smarter Retailing and our architecture strategyand our architecture strategy

Over 350 partners delivering solutions for Retail Over 350 partners delivering solutions for Retail on the Microsoft platform and .NETon the Microsoft platform and .NET

Execution With PartnersExecution With PartnersClosing the loop for the smarter retailing Closing the loop for the smarter retailing initiativeinitiative

Transforming A Product Transforming A Product Company To Solution Company To Solution Company Company

Product Company

MS Sales TeamsMS Sales Teamswithwith

Partners Partners

MS Sales TeamsMS Sales Teamswithoutwithout Enterprise Enterprise PartnersPartners

Solutions Company

Microsoft Retail Customer Microsoft Retail Customer Advisory BoardAdvisory Board

Looking for Vision for Retail IndustryLooking for Vision for Retail Industry– Help me see the future before my – Help me see the future before my competitorscompetitors

But also need help solving today’s problems But also need help solving today’s problems – Reduce the cost of maintaining legacy – Reduce the cost of maintaining legacy systems;systems; 60 – 80% of IT budget spent on 60 – 80% of IT budget spent on maintenancemaintenance– Get us out of the integration business so we – Get us out of the integration business so we cancan focus on core competency focus on core competency

Want a partner to drive Return on Investment Want a partner to drive Return on Investment with Line of Business innovation investments with Line of Business innovation investments – Make it less expensive and better– Make it less expensive and better

CAB Direction – Feb 2003CAB Direction – Feb 2003

Source; Aberdeen – 06/2005 Source; CIES – 12/2005

Top Of Mind For CEOsTop Of Mind For CEOs

Employees to be Employees to be immediately immediately accessibleaccessible 68%68%

Improve gross marginImprove gross margin 58%58%

Reduce E/RReduce E/R 42%42%

Control shrinkControl shrink 32%32%

Regulation & LawsRegulation & Laws 8%8%

Operations Customers

A Better Retail Practice

CompetitionCompetition 55%55%

Retailer / Supplier RelationshipsRetailer / Supplier Relationships 31%31%

Consumer HealthConsumer Health 29%29%

Retail OfferRetail Offer 27%27%

Technology and SC Technology and SC efficiencyefficiency 26%26%

Customer LoyaltyCustomer Loyalty 24%24%

IT IT

Source: Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March 2006

Retailers FocusRetailers FocusFor The Next 18 MonthsFor The Next 18 Months

20052005 20062006

Meeting high customer expectationsMeeting high customer expectations 44 11

Real time visibility throughout the Real time visibility throughout the organizationorganization

33 22

Store level IT investmentsStore level IT investments 11 33

Capital constraintsCapital constraints 22 44

High staff turnoverHigh staff turnover 66 55

SecuritySecurity 66

Sarbanes Oxley follow-upSarbanes Oxley follow-up 77 77

Vendor consolidationsVendor consolidations 55 88

Capital Market pressuresCapital Market pressures 88 99

Senior mgmt does not understand Senior mgmt does not understand technologytechnology

1010

Source: Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March 2006

Retailers Perceived Retailers Perceived Obstacles To EfficiencyObstacles To EfficiencyInsufficient skills of peopleInsufficient skills of people

Lack of analytical toolsLack of analytical tools

Spaghetti apps architect.Spaghetti apps architect.

Inadequate data mgmt.Inadequate data mgmt.

Legacy HW/SW not replacedLegacy HW/SW not replaced

Legacy technology @ store Legacy technology @ store

53%53%

37%37%

36%36%

34%34%

31%31%

24%24%

Retailers IT Initiatives For Retailers IT Initiatives For The Next 18 MonthsThe Next 18 Months

Associates with better Associates with better tools tools

Customer intelligence Customer intelligence anal. anal.

Targeted promotions Targeted promotions

Speed through Speed through checkoutcheckout

Advanced loyalty Advanced loyalty programsprograms

In-store tracking In-store tracking analysisanalysis

Multi-channel Multi-channel consistencyconsistency

RFIDRFIDIn-store digital In-store digital

mediamedia

Source: Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March 2006

46%46%

43%43%

42%42%

39%39%

31%31%

27%27%

16%16%

16%16%

12%12%

Retail Is Under High PressureRetail Is Under High Pressure

Customers Pressure:More choice, less time

Employee Pressure:More people

with less expense/revenue

IT Pressure: Do more with less!

Competition Pressure:Act, not React!

What Our Retail CustomersWhat Our Retail CustomersAre Telling UsAre Telling Us

StoreStore ManagerManager““I need to spend more time I need to spend more time ononthe sales floor to help drivethe sales floor to help drivegreater sales and less time in greater sales and less time in the back office dealing with the back office dealing with administrative tasks.”administrative tasks.”

““I need better insight into I need better insight into the functioning of store the functioning of store promotions. I have no promotions. I have no mechanism to solicit mechanism to solicit feedback on my campaigns feedback on my campaigns from store managers.”from store managers.”

Merchandise ManagerMerchandise Manager

““I need to access to the right I need to access to the right information at the right time to information at the right time to helphelpmy store managers make the my store managers make the right decisions and support ourright decisions and support ouremployees and customers.”employees and customers.”

District ManagerDistrict Manager

““I have no way of knowing I have no way of knowing whether store receive the whether store receive the information I sent. I need information I sent. I need to track compliance by to track compliance by stores on different tasks.”stores on different tasks.”

Communications ManagerCommunications Manager

““I need real time data I need real time data availability from the store to availability from the store to reduce out-of-stock and reduce out-of-stock and minimize inventory.”minimize inventory.”

Inventory Control ManagerInventory Control Manager

Logistics ManagerLogistics Manager““Collaboration between the Collaboration between the entities I work with needs to entities I work with needs to be smoother.be smoother.I need to connect to the right I need to connect to the right people and information when people and information when and whereand whereI want to.”I want to.”

Our Smarter Retailing Vision Our Smarter Retailing Vision Addresses The Enterprise…Addresses The Enterprise…

Core OperationsCore OperationsFinancialsFinancials

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

StoreStoreEposEpos

Self checkoutSelf checkout

Unattended checkoutUnattended checkout

Electronic signageElectronic signage

Digital assistantsDigital assistants

Smart shelvesSmart shelves

Cross-channel Cross-channel integrationintegration

RfidRfid

ConsumersConsumers

Multi-channel Multi-channel shopping – shop shopping – shop online/buy offlineonline/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 synchronizing supply and demanddemand

Information transparency across Information transparency across trading partnerstrading partners

RFIDRFID

……Through 3 PillarsThrough 3 Pillars

The consumer The consumer

The perfect experienceThe perfect experience

Give them what they Give them what they want, when they want itwant, when they want it

In-store informationIn-store information

SmarterSmarterShoppingShopping The employeeThe employee

Sharper salespeopleSharper salespeople

Real-time retailingReal-time retailing

Multiple checkout Multiple checkout optionsoptions

SmarterSmarterSellingSelling

The supply The supply chainchain

Enterprise agilityEnterprise agility

Execution excellenceExecution excellence

Capital efficiencyCapital efficiency

SmarterSmarterOperationsOperations

The Role of Microsoft The Role of Microsoft

““Every Day Innovation” Every Day Innovation” ThroughThroughPeople Driving Retail People Driving Retail Success!Success!

We Know Your CustomersWe Know Your Customers

““Every Day Innovation” Every Day Innovation” Through People Driving Through People Driving Retail Success!Retail Success!

Your Employees Know UsYour Employees Know Us

Use Today’s Capabilities to Shape Your Retail’s FutureUse Today’s Capabilities to Shape Your Retail’s Future

Utilize existing Utilize existing investmentsinvestments

Leverage on aLeverage on alarge networklarge networkof developersof developers

Freely select fromFreely select fromour partner networkour partner network

Simply plug and use Simply plug and use new devices, and new devices, and new applicationsnew applications

““Every Day Innovation” Every Day Innovation” Through People Driving Through People Driving Retail Success!Retail Success!

We Know Your CustomersWe Know Your Customers

Your Employees Know UsYour Employees Know Us

01001001110101001REDUCE

REDUCE

DD

Your CFO will love us!Your CFO will love us!

Bluetooth Wireless POS

Peripheral Scales

Self Serve Cashless Payments

Tablet PC as POS

Self assisted ordering

In-storeback office

RFID

Employee/Manager

Dashboards

HolographicsIn-store kiosks

Access Points Streaming Video

Consumer Phones

Electronic Menu Boards

Bottom of Basket Detection

Location Based Services

Interactive CustomerDisplays

Biometric Contact less Readers

RFID ShelfLabels

Media Shopping Carts

Shelf Edge Displays XBOX 360

$399

RFID GondolaLabels

In Store vision 2005 – 2008In Store vision 2005 – 2008

Specialty Retail andSpecialty Retail andMass MerchandiseMass Merchandise HospitalityHospitalityFood and DrugFood and Drug

Store Systems addresses the broad needs of retailers to implement innovative in-store solutions; The Smarter Retailing Initiative provides a comprehensive solutions framework designed to enable the next generation of retail innovation in-store; Retailers are taking advantage of new technologies that provide better customer experience through a point-of-service offering all at a lower total cost of ownership

Store Systems

Real Time Analytics in retail requires the capability to provide intuitive and time sensitive information from disparate sources and locations to users who have little to no IT skills; Collaborative use of meaningful information will provide business intelligence to optimize overall retail operations and provide better customer service; These solutions can be delivered at multiple levels and methods within a retail organization

Real Time Analytics

Supply Chain

Management

Supply Chain Management delivers through partners, an integrated approach for providing end-to-end management and visibility of a retailers inventory; New technologies are providing game changing methods to meet the increasing business demands for lowering inventory costs while still having the right product available for purchase at the right time

Industry Priority Solution Industry Priority Solution Scenarios – IPSSScenarios – IPSS

Specialty Retail andSpecialty Retail andMass MerchandiseMass Merchandise HospitalityHospitalityFood and DrugFood and Drug

Store Systems addresses the broad needs of retailers to implement innovative in-store solutions; The Smarter Retailing Initiative provides a comprehensive solutions framework designed to enable the next generation of retail innovation in-store; Retailers are taking advantage of new technologies that provide better customer experience through a point-of-service offering all at a lower total cost of ownership

Store Systems

Real Time Analytics in retail requires the capability to provide intuitive and time sensitive information from disparate sources and locations to users who have little to no IT skills; Collaborative use of meaningful information will provide business intelligence to optimize overall retail operations and provide better customer service; These solutions can be delivered at multiple levels and methods within a retail organization

Real Time Analytics

Supply Chain

Management

Supply Chain Management delivers through partners, an integrated approach for providing end-to-end management and visibility of a retailers inventory; New technologies are providing game changing methods to meet the increasing business demands for lowering inventory costs while still having the right product available for purchase at the right time

Industry Priority Solution Industry Priority Solution Scenarios – IPSSScenarios – IPSS

Store Systems

Real Time Analytics

Supply Chain Management

JDA migrated to .NET in supply chainJDA migrated to .NET in supply chain

Lower cost of ownership with high performing solutionLower cost of ownership with high performing solution

Solutions that provide the right product at the right Solutions that provide the right product at the right time time and at the right place delivering on People Ready and at the right place delivering on People Ready BusinessBusiness

Strategic horizontal partner with in-depth retail Strategic horizontal partner with in-depth retail knowledgeknowledge

Cost effective BI solutions based on Cost effective BI solutions based on Microsoft SQL 2005 platformMicrosoft SQL 2005 platform

Providing store employees relevant and timely Providing store employees relevant and timely information enhancing operations and customer information enhancing operations and customer satisfactionsatisfaction

Partnership In ActionPartnership In Action

Strategic store systems partner, committed to .NET Strategic store systems partner, committed to .NET and Smarter Retailing and Smarter Retailing

Seamlessly integrated solutions on Microsoft Seamlessly integrated solutions on Microsoft platform platform

Enhancing consumer and sales associate experienceEnhancing consumer and sales associate experience

Bookseller Gains Insights Across Bookseller Gains Insights Across Sales Channels With New Data Sales Channels With New Data WarehouseWarehouse

““Today we no longer have to resort to bringing down the systems to Today we no longer have to resort to bringing down the systems to access important data. The business intelligence data is available on access important data. The business intelligence data is available on the same day and within hours of when transactions take place. This the same day and within hours of when transactions take place. This is the first step in helping our managers and field representatives get is the first step in helping our managers and field representatives get a much clearer picture of the day-to-day business.”a much clearer picture of the day-to-day business.”

— — Lou Ann Leary, VP of Product DevelopmentLou Ann Leary, VP of Product Development

Faster access to Faster access to information from the information from the company’s company’s operational systems operational systems

Easy and timely Easy and timely creation of reports creation of reports and views and views of data of data

Deeper views into Deeper views into key performance key performance indicators, historical indicators, historical trends such as trends such as membership sales membership sales trendstrends

B&N built a data B&N built a data warehouse with SQL warehouse with SQL Server 2005 utilizing Server 2005 utilizing Proclarity’s Analytics Proclarity’s Analytics and HP Integrity and HP Integrity Superdome serverSuperdome server

2.5 terabytes of data 2.5 terabytes of data are processed from are processed from data retrieved from data retrieved from two Oracle servers two Oracle servers that receive that receive information from information from B&N’s operational B&N’s operational systems nightlysystems nightly

Barnes & Noble had Barnes & Noble had trouble building trouble building valuable business valuable business intelligence from the intelligence from the information residing in information residing in their Oracle systemtheir Oracle system

No easy or timely way No easy or timely way to produce reports to produce reports that could provide that could provide insights into historical insights into historical trends or key trends or key performance performance indicators on current indicators on current datadata

Tommy Hilfiger launches it first ever e-Tommy Hilfiger launches it first ever e-commerce business, 100% Microsoft commerce business, 100% Microsoft technology based, technology based, soup to nuts, in less than 4 monthssoup to nuts, in less than 4 months

Caught up to Caught up to competition competition almost over nightalmost over night

Proved the value Proved the value of the online of the online business to exec business to exec management and management and investorsinvestors

Positioned Tommy Positioned Tommy Hilfiger for Hilfiger for significant significant revenue growth in revenue growth in ‘06‘06

Use Commerce Server Use Commerce Server for consumer-facing for consumer-facing engagement and engagement and merchandizing pre-merchandizing pre-productionproduction

Use BizTalk server as Use BizTalk server as Enterprise Service Enterprise Service Business (ESB)Business (ESB)

Implement Axapta as Implement Axapta as the backend of the the backend of the business unit’s business unit’s managementmanagement

Launch brand new Launch brand new tommy.com business tommy.com business with extremely with extremely aggressive timelineaggressive timeline

Get to market with as Get to market with as much product as much product as possible without possible without sacrificing mid-term sacrificing mid-term manageabilitymanageability

Enable tommy.com to Enable tommy.com to serve international serve international markets and business-markets and business-to-business customersto-business customers

“Cactus went above and beyond the call of duty for us, working harder for us than any consultancy I have ever hired and I have been doing this for over 10 years…”

— Max Leach, e-Commerce Director, Tommy Hilfiger Corp.

Global retailer selects a new Global retailer selects a new warehouse management system built warehouse management system built on the Microsoft platformon the Microsoft platform

This is an important project This is an important project which cannot afford to slip or which cannot afford to slip or failfail

The choice of Manhattan / The choice of Manhattan / Microsoft demonstrates Microsoft demonstrates Tesco's trust in the partnership Tesco's trust in the partnership to provide the warehouse to provide the warehouse management system to management system to underpin its ambitious underpin its ambitious expansion plansexpansion plans

This application choice will This application choice will provide Tesco.com with the provide Tesco.com with the ability to significantly grow ability to significantly grow their share of the non food their share of the non food home shopping markethome shopping market

Work is well underway and Work is well underway and on scheduleon schedule

Tesco.com will implement a Tesco.com will implement a new warehouse new warehouse management system to management system to enable this new operationenable this new operation

Tesco.com circulated an ITT Tesco.com circulated an ITT and short listed a number and short listed a number of providers during Autumn of providers during Autumn 20052005

The final listing involved The final listing involved Manhattan/Microsoft Manhattan/Microsoft alongside a number of alongside a number of key competitorskey competitors

Microsoft worked side by Microsoft worked side by side with Manhattan during side with Manhattan during the selection process to the selection process to ensure Tesco.com were ensure Tesco.com were aware of the strong aware of the strong partnership that existspartnership that exists

A substantial market changing A substantial market changing development of its non food development of its non food home shopping offerhome shopping offer

Tesco.com currently Tesco.com currently out-sources the supply chain out-sources the supply chain for non food itemsfor non food items

During 2006 it will move During 2006 it will move fulfilment for non food items to fulfilment for non food items to its own warehouse and needs its own warehouse and needs a warehouse management a warehouse management system system to support planned growthto support planned growth

They aim to grow the range They aim to grow the range offered substantially in time offered substantially in time for Christmas trade 2006for Christmas trade 2006

Manhattan Associates secure Warehouse Management system running on the Windows platform at Tesco.com, the largest internet retailer in the UK

Real Time Analytics

Supply Chain

Management

Store Store SystemsSystems

FY07 Priority Solution AreasFY07 Priority Solution Areas Point of ServicePoint of Service Store Operations Mgmt.Store Operations Mgmt. Ordering and Inventory Mgmt.Ordering and Inventory Mgmt.

FY07 PlanningFY07 PlanningStore SystemsStore Systems

OpportunityOpportunity Point of service implementationPoint of service implementation WirelessWireless Labor managementLabor management

FY07 priority solution areasFY07 priority solution areas Supply chain Supply chain optimizationoptimization Enterprise Enterprise performance managementperformance management Financial managementFinancial management

FY07 PlanningFY07 PlanningReal Time AnalyticsReal Time Analytics

Real Time Real Time AnalyticsAnalytics

Supply Chain

Management

Store Systems

OpportunityOpportunity Real time store managers workbenchReal time store managers workbench Scorecards/analyticsScorecards/analytics Task managementTask management Migration to SQL2005Migration to SQL2005

FY07 priority solution areasFY07 priority solution areasSupplier collaborationSupplier collaborationGlobal data synch.Global data synch.

Warehouse mgmt.Warehouse mgmt.Merchandising mgmt.Merchandising mgmt.Price mgmt.Price mgmt.

Promotions mgmt.Promotions mgmt.ReplenishmentReplenishmentAllocation and planningAllocation and planningDistributionDistributionReturns mgmt.Returns mgmt.

FY07 PlanningFY07 PlanningSupply Chain ManagementSupply Chain Management

Real Time Analytics

Supply Supply Chain Chain

ManagemenManagementt

Store Systems

OpportunityOpportunityMigration to SQL2005Migration to SQL2005Warehouse managementWarehouse managementPlanningPlanningSpace managementSpace management

Real Time Real Time AnalyticsAnalytics

Store Store SystemsSystems

Supply Supply Chain Chain

ManagemenManagementt

Supplier collaborationSupplier collaborationGlobal data Global data synchronizationsynchronizationWarehouse mgmt.Warehouse mgmt.

Merchandising Mgmt.Merchandising Mgmt.Price Mgmt.Price Mgmt.Promotions Mgmt.Promotions Mgmt.ReplenishmentReplenishmentAllocation and PlanningAllocation and PlanningDistributionDistributionReturns Mgmt.Returns Mgmt.

Supply Supply Chain Chain optimizationoptimizationEnterprise Enterprise Performance Performance

Mgmt. Mgmt.Financial Mgmt.Financial Mgmt.

Point of ServicePoint of ServiceStore Operations Mgmt.Store Operations Mgmt.Ordering and InventoryOrdering and InventoryMgmt.Mgmt.

ProductionProduction DevelopmentDevelopment

FY07 PlanningFY07 PlanningReadiness SummaryReadiness Summary

Regional ReadinessRegional Readiness

APACAPAC

JapanJapan

LATALATAMM

EMEAEMEA

CanadaCanada

USUS

The Partner CommunityThe Partner CommunityHow we can help our partnersHow we can help our partners

ResourcesResources

World wide and regional industry World wide and regional industry vertical teams offervertical teams offer

Business development resources to help Business development resources to help partners access technical, sales and partners access technical, sales and marketing and industry programsmarketing and industry programs

Technical resources to provide technical Technical resources to provide technical and architectural guidance for Microsoft and architectural guidance for Microsoft products and technologiesproducts and technologies

The Partner CommunityThe Partner CommunityHow we can help our partnersHow we can help our partners

Joint Marketing ActivitiesJoint Marketing Activities

Leverage Microsoft market presence:Leverage Microsoft market presence:Access to industry marketing programs Access to industry marketing programs and initiatives and initiatives

Access to product marketing programs and Access to product marketing programs and initiativesinitiatives

Access to Industry Management teamAccess to Industry Management team

Alignment with Microsoft world wide Alignment with Microsoft world wide industry solution programs e.g., IPSS and industry solution programs e.g., IPSS and solution areassolution areas

Cross vertical marketing opportunitiesCross vertical marketing opportunities

The Partner CommunityThe Partner CommunityHow we can help our partnersHow we can help our partners

Joint Sales ActivitiesJoint Sales Activities

Access to centralized industry team to help Access to centralized industry team to help develop consistent industry sales strategy develop consistent industry sales strategy and messaging – IPSSand messaging – IPSS

Access to Microsoft global sales account Access to Microsoft global sales account team and opportunities brokered through team and opportunities brokered through IPAM, SSPI, and IBDM communitiesIPAM, SSPI, and IBDM communities

Joint sales planning and account Joint sales planning and account identificationidentification

The Partner CommunityThe Partner CommunityHow our partners can help usHow our partners can help us

Develop joint technical and business planDevelop joint technical and business plan

Develop joint value propositionDevelop joint value propositionMicrosoft technology stack and revenueMicrosoft technology stack and revenue

Align solutions with industry initiatives – Align solutions with industry initiatives – IPSSIPSS

Develop joint solution scenariosDevelop joint solution scenarios

Provide insight into regional sales Provide insight into regional sales capabilitiescapabilities

Develop POC for joint customersDevelop POC for joint customers

Customer References and Case StudiesCustomer References and Case Studies

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© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other © 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this

presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.