Microsoft Dynamics AX: Purpose-Built Solutions for Service Industries

1. DYN23 Ro Kolakowski Company Partner 6th Street Consulting MPN partner since 2006 SharePoint Microsoft Dynamics AX: Purpose-Built Solutions for Service Industries Elliott Ichimura Service Industries Director Dynamics AX Product Management Lisa Slim Microsoft Alliance Business Manager Hewlett-Packard MPN partner since 1989 HP Enterprise Business Ted Kempf US Service Industries Director Microsoft Corporation Andy Yeomans Director of Business Development Systems Advisors Group

2. Agenda • The Service Industries Opportunity • AX 2012 – A New Generation in ERP • Going Vertical – How to Win • Focus for FY12 • Resources • Call to Action • Q&A

3. Share common characteristics and priorities Service Industries Professional Services Architecture / Engineering / Construction & Real Estate Media and Entertainment • Advertising • Publishing • Broadcast • Film and Music • Sports and Live Entertainment • Accounting • Legal • IT Services • Management Consulting • Staffing • Outsourced Managed Services • Data Services • Architecture, Engineeringand Related Services • Construction • Specialty Trade Contractors • Real Estate

4. Service Industries – Shared Priorities Global Resources Skill and Experience Matching Campaigns Resource Availability Lead Management Hard / Soft Commits Opportunities GlobalResources Client Relationships Performance Management Pay-when-paid FinancialResults ServiceDelivery WBS Fixed Price orTime & Material Quotations Project Performance Metrics Project Templates Budgets Project manager role center Web-based timesheets Approval Workflows

5. Market Size and Opportunity • Size* • Software spend: $3B+ ERP | $1B+ CRM (annual) • Growth: 5% CAGR through FY14 • Services opportunity: ~$12B @ 3:1 ratio • Entities: ~80K firms WW (CMM thru Enterprise) • 50K AEC/RE • 22K ProfSvc • 9K M&E • Opportunity • Dynamics AX a functional fit for about 1/3of ERP spend without 3rdparty extension • High knowledge worker ratio among ServiceIndustry professionals (more high-value seats!) • Outsourcing trend feeds Service Industries growth • Professional Services and M&E only two industrieswith IT Spend growing faster than Revenue** Sources: *Microsoft analysis of IDC data **Gartner ITKMD, Jan 2011

6. Service Industries – Momentum 2 of top 5 international design firms (ENR 2010 ranking) 2 of top 5 global advertising firms (IBISWorld Global Advertising) Customers require: Partner Skills and Capacity Deep and Flexible Industry Capabilities Leverage of Existing Microsoft Technology Investments Two-Tier ERP Multi-X

7. AX 2012 – A New Generation in ERP Ted Kempf US Service Industries Director Microsoft Corporation

8. Dynamics AX 2012 Value Proposition Challenges for Enterprise Applications Source: Enterprise Apps Customers Have Issues, Forrester Research, Inc., February 26, 2010

9. Dynamics AX 2012 Value Proposition 1980s ERP Architecture in Wide Use Today Spaghetti of intertwined code and parameters • Middleware and batch processes • Duplicated data structures Functionality sits in separate applications BI is an afterthought • User experience is task-oriented THE RESULT: COMPLEX AND INFLEXIBLE

10. Dynamics AX 2012 Value Proposition The New ERP Model ERP Client Easy-to-Use UI Partner & Customer Extensions SharePoint® Portal Role-Based Security Office Partner Extensions Industry Solution Core ERP Solution Manufacturing Public Sector Business Process Library Retail* Services Distribution Industry Solution IDE BI Financials Sales & Marketing Procurement Project Acct HCM SCM Application Platform Integration Services Database Inventory Mgt GRC Workflow Core ERP Solution *To be released later

11. Dynamics AX 2012 Value Proposition Powerfully Simple Powerful Agile Simple Pervasive Interoperability

12. Powerful • Built to drive service delivery efficiencies across a firm’s global workforce Streamline essential service processeswith project-specific capabilities Scale the firm to each new opportunitywith a global-by-design solution Drive time-to-productivity for professionalswith RoleTailored user experiences • Deliver more value faster with a powerful unified solution

13. Agile • Ready to meet changing market and client demands Adapt to changing process and regulatory requirements with model-driven methods Respond precisely to client needs with integrated relationship management Support timely decision-making with rich financial and operational insights • Increase opportunities and reduce risk with an agile solution

14. Simple • Easy to learn and use across the service chain Accelerate user onboarding and adoptionwith a familiar, intuitive user experience Connect easily with service teams, partners and clientsthrough integrated collaboration capabilities Extend existing business processes and systemswith pervasive interoperability Easy-to-use software drives adoption and lowers costs

15. partner Going Vertical with Dynamics AX Andy Yeomans Director of Business DevelopmentSystem Advisors Group

16. Key Talking Points • Quick overview of Systems Advisors Group • The business case for going vertical • Overview of vertical focus areas • Our vertical journey • The results of our commitment • Winning with Microsoft Dynamics AX • Computer Aid Case Study • Investing to Win

17. Overview of Systems Advisors Group • Global Microsoft Dynamics AX partner • Working with Microsoft Dynamics AX since v1.0 in late 1990’s • 350+ employees in 17 countries • North America • Latin America • Europe • Africa • AsiaPac • Historically had a horizontal market strategy • Adopted vertical orientation in early 2008

18. The Business Case for Going Vertical

19. Vertical Focus Overview • Adopted Professional Services Industries as vertical focus in 2008 • Prioritized sub-vertical marketing and solution focus based on native capabilities of Microsoft Dynamics AX PSA • What’s In • Architecture & Engineering Firms • Advertising & Marketing Agencies • IT and Management Consulting Firms • What’s Out • Construction • Legal • Accounting Firms • Have accumulated clients across several other sub-verticals • Software + Services Firms • Contract Research Organizations • Media and Entertainment

20. Our Vertical Journey • Solution • Commit to delivering industry focused solutions • Identify Microsoft, 3rd party, and IP solution requirements to meet sub-vertical requirements • Marketing • Commit to being 100% vertically focused • Sacrifice horizontal opportunities that aren’t strategic • Branding, messaging, and investments 100% based in select verticals • Competencies • Commit to building internal competencies to serve select verticals • Sales and pre-sales competencies • Consulting and delivery competencies

21. SAG Industry-focused Website and Blog

22. The Results • Strong growth in annual customer adds • Revenue growing over 30% per year • Established ourselves as a “go-to” partner in the Professional Services industries • Have built a defensible market position and can reliably win over non-industry focused partners

23. Winning with Microsoft Dynamics AX • With industry focused solutions, domain expertise, and references you can win with Dynamics AX • In the early days it was a struggle • We were educating the market that Microsoft serves these verticals • Overall solution wasn’t up to par with key competitors • Reference base was very thin • After several years of refinement, we can consistently win with Microsoft Dynamics AX • SAG Target = Deltek – Project Proven, Industry Smart • Deltek Vision – A&E, IT & Management Consulting • DeltekCostPoint – Government Contractors • DeltekMaconomy – Advertising/Marketing Agencies

24. Case Study – Computer Aid • 2,500 person IT consulting firm based in Allentown, PA • Application development and support • Desktop services • IT outsourcing • Offices in US, Canada, UK, and Philippines • Had been using a series of disparate systems, one of which was no longer vendor supported • Decided to implement a new ERP platform to streamline global project accounting processes • Evaluated Microsoft Dynamics AX and DeltekCostPoint

25. Key Requirements

26. Why We Won Sales Cycle #1 versus Deltek / CostPoint Sales Cycle #2 AX Partner Battle

27. Investing to Win • Pick a vertical and fully commit • Train your people • Build a repeatable solution • Focus your marketing efforts • Be disciplined – resist the urge to be opportunistic when leads present themselves

28. Focus for FY12 Elliott Ichimura Service Industries Director Dynamics AX Product Management

29. Go Vertical to Own the Enterprise • Target Two-Tier and Multi-X scenarios • Focus on Managed Accounts • Build on existing Microsoft platform to reduce TCO • Emphasize agility to scale to / evolve with changing needs • Drive time-to-value with vertical-specific ISV and IP solutions • Leverage CRM, Project Server and SQL Server integrations • Develop vertical-specific IP and demos • Business Decision Maker, audience-specific vignettes that resonate • Operational User, end-to-end scenarios that feel real • Functional examples that address burning needs • Build on momentum in US, UK, DE, FR, CA

30. Going Vertical with Dynamics AXDifferentiation on Industry Expertise • ERP Competency – Silver or Gold MPN • Industry Certification from AMR Research • Industry Expert differentiation from other Partners • Respected independent Industry Analyst • Required to obtain the Industry Badge • Use on Partner web site and other electronic materials • To Begin: http://partnersurvey.amrresearch.com/ • Deliver a Certified for Microsoft Dynamics (CfMD) ISV solution • MPN Industry Badge • Recognition in PartnerSourceand Microsoft Dynamics Marketplace • Badge/Logo used on Partner’s web site, business cards, collateral materials

31. It’s Time to Reframe the Services Conversation • Build on and for a New Generation • Purpose-built industry platform • Integrated-by-design AX 2012 architecture • Simple yet revolutionary pricing model • Robust vertical partner-extensibility • Blaze a New Path • Explore Business Process as a Service • Cultivate annuity-model thinking • Lead the next business transformation

32. Partner Calls to ActionKey Actions, Resources and WPC Related Sessions/Activities Evaluate this session Complete the evaluation form www.digitalwpc.com/contest Do GO VERTICAL Pick a vertical and pursue the MPN Industry Badge IND09i Growing Your Business With Professional Service Firm Applications Attend CME04 M&E Solution Area Discussion: Media Business Management Specialize Access role-based learning for business and technical roles Learn Discover AX 2012 readiness materials including learning plans and the “Getting ready for AX 2012” planning guide AX 2012

33. Microsoft Dynamics Partner Academy • Access role-based learning for business and technical roles • Prepare for the Cloud, product launches and the new MPN requirements • Contact your local Partner Development Center to accelerate your growth today • Discover AX 2012 readiness materials including learning plans and the “Getting ready for AX 2012” planning guide

34. Competency Exam Pack Offer Go to the MPN Booth or Purchase Online byJuly 29, 2011 Exam Packs can be purchased in the following denominations • 3 Pack – 30% discount + Second Shot • 5 Pack – 35% discount + Second Shot • 8 Pack – 40% discount + Second Shot • 20 Pack – 40% discount + Second Shot To purchase, simply stop by the WPC MPN Booth or log on to www.prometric.com/microsoft/partners Note: After July 29th, the Competency Exam Packs will not include a Second Shot (free exam retake). Order today!

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36. © 2011 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. 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 presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

37. Project Manager Role Center Access to Key Information

38. Project Quotations • Work breakdown templates enable you to quickly build accurate project quotations • Resource scheduling provides insight into availability of required project resources before quotation is sent • Project quotation profitability helps you pick the right opportunities to pursue • Quotation approval workflows ensure proper project visibility

39. Project Budgeting & Cost Control • Project budgets include enabled for workflow for approval original budgets and revisions • Budgetary control through all relevant documents (purchase order, purchase requisition, vendor invoice) • Project commitments enable early visibility to future project costs • Beginning balances journal enables you to transfer project balances from existing systems

40. Project Planning • Work breakdown structure templates make it easy to quickly plan common project types • Task requirements (skills, education, experience) help users find the right resource for the job • Integrate with the scheduling and resource management capabilities of Microsoft Project Server 2010 to streamline project management of any size project

41. Project Time and Expenses • Project timesheets are integrated with the Dynamics AX Enterprise Portal in Microsoft SharePoint for easy web-based deployment • User-defined common and favorite tasks speeds time entry • Full integration with Dynamics AX Expense Management enables expenses to be distributed to a single project or across multiple projects