Microsoft Industry Priorities for Manufacturing

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(No Transcript)
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Microsoft Industry Priorities for Manufacturing
Distribution

• John Miles

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Agenda

• Manufacturing Industry in Review FY07
• Market Landscape and Industry Trends
• Exploiting Sector Opportunities in FY08
• How To Engage Leverage Microsoft

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FY 07 Was A Great Year Globally!

• 3.9B Total Revenue!!!
• 16.5 Global revenue growth!!
• 500M Dollar growth
• Largest Growth Industry
• 800 Industry Solution Area Wins
• 800 MFG IPSS Solution Wins
• PLM 25
• ERP/SCM 15
• Plant Ops 12
• Customer Centricity 10
• Enterprise Perf. Man. 25
• Other 13

• Product Launches FY 07/08
• SQL 2005
• Biztalk 2006/RFID
• Vista/HPC
• MOSS 2007
• UC
• Performance Point/OBA

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Great year in Australia for MSFT Partners also!

• 63M Total Revenue!!!
• 19.3M Additional Revenue
• 44 YoY Growth!!!
• Largest Growth Industry in any mature
  subsidiary
• 30 Industry Solution Area Wins

• Industry Solution Wins
• ERP/SCM 52
• Customer Centricity 20
• Plant Ops 13
• PLM 9
• Others 6

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Why the Success?
Industry Vision and Value Proposition
Increased industry expertise and knowledge
Building comprehensive industry solutions with
our Partners Customers
Consistency in Our Industry language
Working with our Product Teams to meet industry
needs
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The Challenges Are Getting TougherTLE Australia
2007

• The top five strategic objectives identified
  across the manufacturing sector for the next 1-5
  years were
• Efficiencies through enhanced supply chain
  collaboration and visibility
• Improvements in information access and sharing
  (Insight)
• Electronic trading between suppliers and
  customers
• Improvements via lean initiatives
• Enhanced sales CRM

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Manufacturing Opportunity Globally
MFG IT SpendingMarket 2007 - 2009

• The great news
• Investment growth in PLM, SCM, and CRM
• Strong Migration opportunities Oracle,
  UNIX,Mainframe, Notes
• Real time LOB Collaboration, Integration and
  Business Insight are top priorities for
  Manufacturers

5 yr. CAGR (05-09) Total 7.7
48.6
43.9
62.7
Cust. Mgmt. 9
HCM 8
Procurement 9
Core ERP 5
CAD 5
PLM 15
SCM 7
Source AMR Research
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Market Opportunity for ServicesAustralia -
Industry View - 500 PCs
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Competing For Profitability
Optimise Innovation Product Development
Compete with innovation Capture market share
and margins
Dollars
Sell price
Compete on price
Mfg cost
Optimise Loyalty, Marketing, Sales Service
Optimise Operations SC efficiency
Time
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Microsofts Industry Solution Investments
Product Lifecycle Management (PLM) solutions
enable manufactures to improve new product
innovation, reduce time-to-market and capture
design intent The technologies provide the core
collaboration and integration required for the
design, data management portfolio management
necessary to compress the product development
lifecycle, leveraging familiar, easy to use
common user interfaces.
Innovation/PLM
Manufacturing Visibility and Execution Systems
enables manufacturers to streamline their
operations by creating a connected environment
that improves information access, enables
real-time communication, and optimizes decision
making Lean solutions enable manufacturers to
transform their production operations from a
push-based, forecast driven model to a
pull-based, on demand model
Plant Operationsand Lean Manufacturing
Sales Marketing Service
Solutions to improve customer satisfaction and
retention, increase sales effectiveness, better
understand customer preferences, make products
customers will like (buy), and to increase
profitability
Help manufacturers get real-time visibility into
their value chains to support proactive decision
making and coordinate complex range of
activities among multitude of partners in a
high-velocity business environment Enable
manufacturers to have a higher level of agility
to proactively adapt to changing business
requirements, lower supply chain costs, and
improve customer satisfaction
Supply ChainVisibility Collaboration
,Planning Execution
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Innovation Management Product Life Cycle
Management
Trend Product Lifecycle Management (PLM) has
emerged as an essential element of a companys
competitive strategy The drivers behind PLM -
outsourced manufacturing, new product
proliferation, and mass customization - are all
part of the reshaping of supply chains and
industrial structure that is now underway AMR
states that organizational spend on PLM
automation software, will reach 15B by 2009
Innovation/PLM
Plant Operationsand Lean Manufacturing
Sales Marketing Service

• Priority Solution Area
• Collaborative Product Design (CPD)
• Product Portfolio Management (PPM)
• Product Data Management (PDM)

Supply ChainVisibility and Collaboration
and Planning and Execution
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Plant Operations
Trend Collaborative manufacturing is about
providing a holistic view that encapsulates the
entire manufacturing hierarchyfrom plant floor
operations and across the supply chainto improve
operational performance Microsoft's vision
embraces the ideals of collaborative
manufacturing and extends it via a reliable and
interoperable platform that can be customized to
the specific needs of individual manufacturers.
Innovation/PLM
Plant Operationsand Lean Manufacturing
Sales Marketing Service

• Priority Solution Areas
• Lean/6 sigma initiatives
• Plant Floor Visibility
• Manufacturing Execution Systems
• Lean/Value Stream Mapping

Supply ChainVisibility and Collaboration
and Planning and Execution
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Customer Centricity Sales, Marketing Service
Trend The manufacturing market has gone global
Most manufacturers rely on customers from around
the world, not just in one country or region
These global customers have high expectations,
and manufacturers must quickly respond to their
needs to remain competitive Although the value
of providing a more customer-centricity
experience is evident, manufacturers continue to
struggle implementing these concepts in their
organizations
Innovation/PLM
Plant Operationsand Lean Manufacturing
Sales Marketing Service

• Priority Solution Area
• Collaborative Sales Force Automation
• Consolidated Pipeline Reporting
• Product performance tracking
• Customer Care Management

Supply ChainVisibility and Collaboration
and Planning and Execution
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Our Strategic Vision for Connected Supply Chain
in Manufacturing Distribution

• Video
• Sales Service

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Supply Chain
Trend Improving supply chain by providing
business insights to all employees leading to
better, faster, more relevant decisions.
Improving velocity thru the supply chain requires
enhance visibility of gating factors, systematic
elimination of paper based systems internally
externally, real-time collaboration to
suppliers/customers both locally globally, and
real-time visibility of demand.
Innovation/PLM
Plant Operationsand Lean Manufacturing

• Priority Solution Area
• Demand Planning
• Supply Chain Visibility
• Supply Chain Collaboration
• Dashboard Driven Advanced Analytics
• ERP/MRPII systems

Sales, Marketing Service
Supply ChainVisibility and Collaboration
and Planning and Execution
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Our Strategic Vision for Connected Supply Chain
in Manufacturing Distribution

• Video
• Supply Chain Collaboration

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Connecting Two WorldsThe Last Mile of
Productivity
Business Process Automation
PersonalProductivity
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So whats the bottom Line on this

• CAGR is 7-8 to FY10
• MSFT footprint of addressable market is only 11
  but growing
• SAP will continue to dominate
• Compete at ERP level only where we can win
• Surround with SQL, Analytics, Portals, Outlook,
  Biztalk, and H S
• Compete against Netweaver
• Oracle Vunerable to SQL
• Will scale Is Entertprise Ready
• TCO compelling
• ISV apps will open the door
• CRM Everywhere will drive analytics, portals
  eventually ERP

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Keeping it Simple

• Go to Market Strategy this year will revolve
  around two things
• Dynamics Vertical solutions in ERP CRM
  Partner led.
• MSFT Sales support on big qualified deals (50K
  net revenue), plus breadth marketing in
  Enterprise Accounts.
• ISV solutions - Plant ops, Supply Chain,
  Innovation Mgt/PLM.
• MSFT sales support on big qualified deals (50K
  net revenue) where SQL, BTS and or MOSS are
  involved plus, breadth marketing support in
  Enterprise Accounts.
• Insight MOSS, Performance Point last mile of
  productivity
• MSFT sales support on big qualified deals (50K
  net revenue)

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Hotspots

• By Industry
• Mining Sector MES, CAM, ERP
• Utilities Trading Hubs, MES, Analytics, CRM,
  Smart Meters
• FMCG Supply Chain Mgt Collaboration, PLM,
  Track Trace
• Industrial ERP HS
• By Technology
• CRM Everywhere
• SQL Vs. Oracle SAP too expensive
• Insight not data

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Big Bets

• On 44 growth last year, another 20 points should
  be easily attainable!!!!!
• Software 76M
• Services 230M (approx 3 times)
• Growth Drivers - Big Bets (excluding desktop)
• CRM 15
• ERP 12
• SQL BTS 24
• MOSS, Analytics Collaboration 12

Includes AP Core pull thru on CRM ERP -
approximations only
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How Partners Can Capitalise on the Opportunity

• We need the deal monetised, qualified and in our
  internal sales pipeline tools. So
• Engage with your allocated Partner Account
  Manager
• Build solution area PSPs (1-3)
• Share relevant pipeline.
• Identify 3-4 Named accounts we can jontly work
  on.
• Have you marketing folks engage with our Industry
  Marketing and partner marketing teams and share
  you FY08 marketing plans.
• Let me know of any large deals (75K net rev) in
  EPG and Ill connect you with the relevant
  account manager and other resources to help move
  the deal forward.
• Remember! The solution areas are essentially
  marketing campaigns, so align your solutions with
  a Priority Solution Area and engage Industry
  Marketing to participate in campaigns.

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Marketing Partner Opportunities
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Session Summary

• Manufacturers are spending- MSFT growth 6
  timesIndustry Average
• We are strategically aligned to MFG customer
  spend priorities Vision, Sales priorities,
  Products, Partners
• WW Manufacturing team is aligned with the BGs to
  support our Growth and Compete Opportunities
• We are committed to support your account planning
  and engagement But we need you to help us help
  you.
• Feel confident you can make and exceed your
  number

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Questions from the Floor
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Thank You for Attending Please fill out your
Evaluation Forms!

• Microsoft Global manufacturing site
• http//www.microsoft.com/industry/manufacturing/de
  fault.mspx
•   
• Microsoft solution showcase
• http//www.microsoft.com/office/showcase/default.m
  spx
•                
• ERP and supply chain solutions
• http//www.microsoft.com/industry/manufacturing/mb
  sproducts.mspx
• Contact
• John Miles
• Enterprise Solutions Manager
• 02 9870 2221 jmiles_at_microsoft.com