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Hitting the Highs with ERP

Hitting the Highs with ERP. Claire Kennedy/ ERP Product Manager Martin 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.

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Hitting the Highs with ERP

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  1. Hitting the Highs with ERP Claire Kennedy/ ERP Product Manager Martin McCaffery/ Partner Account Manager

  2. 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

  3. Why is the Mid Market important

  4. The Dynamics ERP Go To Market Global Organizations Centralized ERP for multisite organization Vertical Business Target specialized business needs Improved Financials and Operations Beyond basic financials and operations Global Subsidiaries Connect local entities to headquarters

  5. Financials and Operations Typical Customer Profile Customers Competitors • Growing business customers looking for ERP to cover core financial and operational functions • IT and ERP seen as basic infrastructure • Lowest price is a major decision criteria • Low cost, risk, and fast implementation Improved Financials and Operations Partner Profile Low-touch, low cost, high volume selling Fast, standardised, repeatable implementation

  6. Local Vertical Typical Customer Profile Customers Competitors Tech 1 Pronto • Mid-market companies • Need vertical solution covering most business functions out of the box • Typically focusing on one vertical and in one geography • Drive operational gains through ERP Vertical Business Partner Profile Strong vertical focus and deep experience Fast, standardized, repeatable implementation

  7. Market Opportunity Target 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and Vertical Business Typically outgrowing entry-level accounting software but may be right-sizing or moving from outdated proprietary software Typical profile - Companies with 25 – 500 employees Market Overview Highly fragmented market, dominated by MYOB at the low end but no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

  8. Thinking outside the box

  9. Partners Changing the Game Improved Financials and Operations – My GP Cloud Improved Financials and Operations Vertical Business

  10. 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

  11. FinancingScenario VAR Microsoft Software and Services Partner Services Installation • Hardware • 3rd Party Software • Total IT Solution Financing • Sell software, services, and hardware as one investment. Simple, flexible,and affordable Smarter way tosell IT solutions • Flexible payment structures for customers • to get all the IT solutions they need.

  12. 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

  13. What Now? • Build a business plan thinking outside the box • Work with Microsoft to deliver on plans

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