Microsoft Dynamics CRM: Strategy and Business Opportunity

Ross Dembecki

Agenda
Year in Review Market Opportunity Roadmap xRM Software plus Services Resources Partner Commitments

CRM: The Year in Review

Another solid year of growth Strong focus on readiness and launch
Partner readiness tour for CRM 4.0
November: Partner Events in 2 Cities with over 200 attendees

Customer launch events for CRM 4.0

March: Customer Events in 5 Cities with over 570 attendees

Big steps forward in competitiveness

CRM 4.0 delivers a big step forward

Strong SaaS enablement Strong international capabilities

CRM Online launched in USA/Canada

MARKET OPPORTUNITY

Market Size by Functionality Area

Core CRM is a $11B category today growing at a 8% CAGR to $14B by FY11

SaaS solutions are forecasted to grow from 11% to 23% of revenue by FY11 (30% CAGR)
Sales automation: simple/SaaS/best-of-breed have won in recent years over more complex suite offerings/deployments Customer service / contact center: multi-channel with web integration is key trend; heavy customization and integration reqmts Marketing automation: complex marketing solutions are analytics-intensive; increasing focus on digital marketing & related svcs

Key trends:

WW CRM Application Revenue

$7 B $6 B FY07-FY11 CAGR 6 $5 B $4 B $3 B $2 B $1 B Sales Automation Customer Service Marketing Automation
FY07 FY11

$6.4 B 8% $3.4 B $2.3 B

12% 10% 9% $3.4 B

$4.7 B

$4.8 B

7%

6%

3%

0%

Microsoft Confidential

Source: IDC WW CRM Forecast, 2007

Australian ERP/CRM Market Size

Australian CRM Market

Banking, Finance and Insurance led spending with a 32% share followed by telecommunications & Media (18%). CRM spending is dominated by NSW with 48% of the market followed by VIC (including Tasmania) and QLD with 24% and 11% respectively. Of the 14 sectors analysed, the average CRM penetration rate is 37%. Sectors with above average levels of CRM penetration include: Automotive Manufacturing (51%) Professional Services (44%). Durable Good Distribution (44%). Sectors with low levels of CRM usage and hence good opportunity include: Mining (23%) Personal & Other Services (24%) Education Services (28%)

CRM Drivers in the Market

Both SaaS and on-premise inclined organizations share the same business objectives More than 80% of customers cite the following reasons for implementing CRM: 1. Expand business through new customer acquisitions 2. Expand business by increasing engagements with existing customers 3. Improve customer service and minimize customer turnover 4. Streamline business operations and processes 5. Reduce costs 6. Eliminate risks for my business

Why do some organizations opt for onpremise?

Why do some organizations opt for SaaS?

Microsoft Confidential

Source: Microsoft Research, March 2008

ROADMAP

Microsoft Dynamics CRM Suite

Full CRM suite capabilities and application flexibility

-Interactions -Marketing -Sales -Service -xRM -Business Process -SOA -Flexible Deployment

Microsoft Dynamics CRM Roadmap Overview

Customer-driven innovation End user productivity and efficiency CRM extensions Application platform flexibility
Microsoft Dynamics CRM Online R1
Open Access scale-out

Microsoft Dynamics CRM 5

Microsoft Dynamics CRM Online R4
New Microsoft Dynamics CRM 5 capabilities

Microsoft Dynamics CRM 4.0

Microsoft Dynamics CRM Online R2

Online marketing and more

Microsoft Dynamics CRM Online R3

Multi-language and more

Extensions to Microsoft Dynamics CRM 4.0 2008 2009

Extensions to Dynamics CRM 4.0 Adapter for Microsoft Biztalk Server

Mobility

SharePoint List Web Parts

Solution Accelerators

Microsoft Confidential

13

Mobility: Delivering on market needs

Reach Client (HTML)

Windows Mobile

BlackBerry

Fully supported CRM Mobile Express Beta Release: Q1 FY09 Supported Release: Q1 FY09

Available through TenDigits (marketing alliance) Rights to promote TenDigits mobility as part of Microsoft marketing materials and messaging Inclusion in broad CRM & Windows Mobile Campaigns CRM Mobile marketing collateral and demo materials Windows Mobile version by end of 2008

What are Solution Accelerators?

Add-on modules that deliver extended capability to Microsoft Dynamics CRM 4.0

Solution Accelerators May Consist of:

Data Workflow BI Source Code Documentation

Entities, Forms, Views

Workflow configurations

i.e. custom reports Full source code samples (strictly adhering to SDK guidelines) Installation, operation, localization, and extending the solution

How do Solution Accelerators Help Partners

Shorten the sales cycle with a killer demo or POC

Rapidly deliver value with supported, out-of-the-box functionality

Further extend CRM functionality to deliver a full business solution

Analytics Accelerator
WHAT IS IT
BI for Microsoft Dynamics CRM 4.0 Delivers sales, service and marketing dashboards

ALLOWS USERS TO

View rich scorecards through SSRS, SharePoint and PerformancePoint Browse pre-built OLAP cubes for deeper analysis

HOW YOU BENEFIT

Drive business insights to generate new services $$$ Deliver that compelling BI demo Use as competitive tie break

Available Q3 CY2008

Sales Methodologies Accelerator

WHAT IS IT
Tools to drive adoption of 3rd party sales methodologies such as SPI Solution Selling, Miller Heiman, Target Account Selling (TAS)

ALLOWS USERS TO

Consistently follow the required sales methodology from the comfort of Microsoft Dynamics CRM

HOW YOU BENEFIT

Confidently deliver the sales methodology of choice for your customers

Available Q3 CY2008

Event Management Accelerator

WHAT IS IT
Functionality to plan, execute, and review events

ALLOWS USERS TO

Plan venue, presenters, target audience Send invitations, automate web registrations and track event attendance

HOW YOU BENEFIT

Broaden the Microsoft Dynamics CRM offering with event management functionality

Available Q3 CY2008

eService Accelerator
WHAT IS IT
Self-service portal for enhanced customer service integrated with Microsoft Dynamics CRM 4.0

ALLOWS USERS TO

Edit their profile View, raise, and close cases Search the Knowledge Base Schedule services

HOW YOU BENEFIT

Open Microsoft Dynamics CRM 4.0 as a multi-channel solution

Available Q3 CY2008

Additional Accelerators

Enterprise Search

Business Productivity

CRM Notifications

Extended Sales Forecasting

Health Care

Microsoft Confidential

22

Vertical Accelerator for Healthcare

Built on Microsoft Dynamics CRM 4.0 Showcases how Microsoft Dynamics CRM is relevant to customers in the healthcare industry Provides a baseline for partners/customers for further development. Includes: Relationship Management BDM/TDM deck Value proposition document Demo DIFF file for CRM 4.0 RTM VPC to make healthcare demos Sample demo map: outline for a demo of CRM to healthcare industry Sample data model Microsoft Dynamics CRM and healthcare information http://www.microsoft.com/dynamics/crm/product/healthcare.mspx http://www.codeplex.com/crmverticaltemplates/Release/ProjectReleas es.aspx?ReleaseId=13323

A Business Application Development Platform

xRM

xRM Government Big Opportunity

Globalisation and Economy Urbanisation Public Safety Demographic Time bomb Environmental Control

Compliance

Service Complexity

Revenue

KPIs Technology

Citizen Service Platform Capabilities

System Center Server Management OCS Communications

Forefront Security

Citizen Service Platform

BizTalk Integration

Performance Point Performance Management

Vista Desktop Services

The Power of Choice

SOFTWARE + SERVICES

Truly a Software Plus Service Opportunity

CRM subscription revenue projected to grow to 22% of total CRM software revenue by 2010*

Power of Choice enables our partners to take advantage of all CRM growth areas
Sources: *Gartner Dataquest 2006, **Forrester Research, 2007

Performance and Scalability

Performance and Scalability Components

Scale flexibly and efficiently across local or global enterprise deployments Microsoft Advantage Leverage optimisation throughout

Service grid architecture Deployment choice WAN performance optimization Load balance clustering

Web farm clustering Exchange clustering SQL Server clustering SQL mirroring

the .NET, Windows, SQL and

Exchange platform Configure to meet user experience, bandwidth and hardware

requirements across wide area

networks Scale flexibly up and out across application and data tiers

Microsoft Dynamics CRM S+S Partnering Framework

Implement for SPs and ISVs Develop vertical or specialised CRM solutions Expand On Premise solutions to On Demand Large ISVs may self-host, but most will partner with Service Providers

ISVs

Resellers SIs Customers

Expand On Premise business to deliver On Demand offering

Service Providers/ Microsoft

Host and bundle with existing services to cross-sell existing customers Private label for VARs/SIs

Host for ISVs

RESOURCES

Marketing and Advertising

Market to customers Campaigns-in-a-box Royalty-free images Customer-ready sales offers Branding elements Sell to customers Telemarketing scripts Proposal templates Case studies Demos and trials

CRM Statement of Direction - Now Available

Outlines future direction of Microsoft Dynamics CRM through to the next major release, which will be aligned with the Office 14 wave of product releases due in late 2009/early 2010. This document is intended to be periodically updated as details are developed. Updates will be posted online. Not intended to be a detailed specification as items may change or be dropped over the course of time. Get it from PartnerSource:
https://mbs.microsoft.com/partnersource/marketing/statementofdirection/MD_CRM _SOD.htm

Refer your customers to it on CustomerSource:

https://mbs.microsoft.com/customersource/documentation/whitepapers/md_crm_so d.htm?printpage=false

Developer Ramp Up Toolkit Now Available

Based on lessons learned during 18 months of instructor-led training by the DPE group as part of the DPE Metro Early Adopter initiative. The kit drills into development details and explains how .NETbased developers can interact with the Microsoft Dynamics CRM platform. It includes videos, presentations, hands-on labs, and a VPC environment for practicing. Audience: .NET developers wanting to quickly ramp-up on Microsoft Dynamics CRM 4.0 development practices and techniques Where to get it: http://msdn.microsoft.com/en-us/library/cc720132.aspx

CRM Marketing and Sales Resource Guide

This comprehensive guide is a one-stop place to find information related to Microsoft Dynamics CRM. Categories of information include: Understanding Customer Relationship Management Microsoft Dynamics CRM Product Overview

Marketing Microsoft Dynamics CRM

Selling Microsoft Dynamics CRM Microsoft Dynamics CRM Resources

Get it from PartnerSource: https://mbs.microsoft.com/partnersource/partneressentials/gui des/MD_CRM_MSResourceGuide.htm

Dynamics & Microsoft Essential Business Server Simplify and lower TCO of maintaining Dynamics apps across your infrastructure with Windows Essential Business Server Major Benefits: Reduce IT Costs Reduce Complexity: Gain More Control Increase Efficiency with Microsoft Dynamics Integration Components Add-In More Information:
www.microsoft.com/dynamics www.microsoft.com/windowsserver/essential/ebs/editions.mspx

Useful Links and Resources

Learn more about CRM
http://crm.dynamics.com (customer-facing) http://www.microsoft.com/dynamics/crm/default.mspx (customer-facing) https://mbs.microsoft.com/partnersource/ (partner only) http://www.microsoft.com/downloads/ (search Dynamics CRM) http://microsoft-crm-au.spaces.live.com/ (Dynamics CRM in Australia BLOG) Australian Dynamics CRM 4.0 Product Info on Windows Live Skydrive http://citizenserviceplatform.com/default.aspx
Increase your win rate
Increase your share of wallet and revenue per deal Expand your market and address more customer opportunities Retain a greater percentage of your customers Add higher margin offerings to your software and service portfolio

PARTNER COMMITMENTS

Partner Commitments
Become a Microsoft Partner Get MBS Certified Enroll in CSA Program Learn more about Dynamics CRM Profile yourself in Partner Solution Profiler
Become a Microsoft Partner Get MBS certification o partner for it Enroll in SPLA Learn more about Dynamics CRM List yourself on the Communications Sector CRM page Profile yourself in Partner Solution Profiler Introduce yourself to your Hosting Solution Specialist

System Integrator

Service Provider

Summary
Lots of room for growth in our business

Increased competitiveness in our products

New tools and campaigns to drive business Strong talent in the Field and Channel Strong commitment from Corporate

Questions?

APPENDIX

Gartner Vendor Ratings by Functional Area

Sales Force Automation Customer Service / Contact Centers

Microsoft Confidential

Sources: Gartner

44

CRM Notifications Accelerator

WHAT IS IT
Newsfeeds that allow users to subscribe to CRM events relevant to their job role

ALLOWS USERS TO

Choose how to receive information (Outlook 2007, Vista Gadgets, I.E.) about topics you care about (e.g. new leads, trouble tickets, etc.

HOW YOU BENEFIT

Drive a role-tailored subscription experience for your users

Available Q3 CY2008

Business Productivity Accelerator

WHAT IS IT
Collection of time-saving productivity customisations for Microsoft Dynamics CRM 4.0

ALLOWS USERS TO

Conduct business data auditing Sales, Service and Marketing workflows Microsoft Solution Selling Process (MSSP)

HOW YOU BENEFIT

Deliver customer value quickly with these time-saving and innovative customisations

Available Q3 CY2008

Extended Sales Forecasting Accelerator

WHAT IS IT
Richer forecasting mechanism for Microsoft Dynamics CRM 4.0

ALLOWS USERS TO

Quickly classify pipeline as High, Low or Commit Track budget for nominated periods Generate forecast reports

HOW YOU BENEFIT

Deliver flexible yet SIMPLE sales forecasting for your customers

Available Q3 CY2008

Enterprise Search Accelerator

WHAT IS IT
Display and search Microsoft Dynamics CRM data from within SharePoint

ALLOWS USERS TO

Use one central search to find e-mails, documents, web content, and now Microsoft Dynamics CRM data

HOW YOU BENEFIT

Drive services revenue through enterprise search solutions Configure audience-specific SharePoint portals with CRM data

Available Q3 CY2008