Dynamics Winning in the Enterprise. James Simpson
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1
2 Dynamics Winning in the Enterprise James Simpson
3 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
4 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
5 What do we mean by enterprise? 1. EPG vs. SMS&P? 2. EPG is approximately 20% of the Dynamics business in Australia 3. Many of our larger SMS&P customers are enterprise 4. Enterprise is typically characterised by Larger implementation size : 50+ concurrent users Complex decision making structures ( CEO, CFO, CIO, CTO ) Existing investments and directions in IT Deployment and rollout is a bigger challenge that creating the solution itself Cost of failure likely to include key people pursuing alternative career options
6 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
7 Australian ERP/CRM Market Size
8 The market is fragmented - products Our Conclusion The market will consolidate around a small number of leading solutions over the next 5 years.
9 The market is fragmented - services Our Conclusion There are many customer criteria driving the market in play Growth will be gained via differentiation in the targeting and delivery of different criteria
10 In a fragmented market... We want to be the beneficiaries of consolidation Consolidation will happen as platforms age and retire, and will generate a purchasing momentum over a number of years Five things we can and should do in a fragmented market 1. Focus our business plans on customer acquisition 2. Industry collateral and references to build momentum 3. Highlighting competitive differences between offerings 4. Position the value of a platform based solution 5. Build people credentials (technical and managerial)
11 Market Opportunity for EPG Australia Market Size FY CAGR Industry CRM Education $ % Fin. Serv $ % Government $ % Health $ % Hosting $ % Mfg $ % Prof. Serv $ % Retail $ % Telco $ % Utilities $ % $ % ERP Agri $ % Education $ % Fin. Serv $ % Government $ % Health $ % Mfg $ % Prof. Serv $ % Retail $ % Telco $ % Distribution $ % $ % Source IDC 2008 Source: MPF 2008 FY08 Market $ Growth CRM $ 89. m 4.60% ERP $ 133. m 7.30% Notes MSFT Market Growth EPG Australia We have a small footprint today Oracle & SAP dominate Great opportunity for growth in yellow spaces We cannot lead with a generic CRM or ERP discussion We cannot lead with Rip & Replace We need to focus on identified workloads Our emerging workloads talk strongly to yellow spaces Dynamics footprint in each yellow space already Addressable market : CRM = $68M, ERP=$78M We are currently taking 4-5% of our addressable market
12 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
13 Our top challenges in enterprise sales 1. Executive influence - setting the agenda from the top 2. Ability to provide a smooth and seamless consortia 3. Ability to provide confidence around 24*7 support 4. Communication of platform pitch versus best of breed 5. Making sure the CFO and business sponsors and the main recipients of our messages 6. Managing the resistance of IT groups devoted to other technologies
14 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
15 Positioning Dynamics ERP in the Enterprise Strong Fit Possible Fit Limited or No Fit Target vertical in manufacturing, distribution, or retail Up to 500 concurrent users per single instance Customer invested in MSFT platform (servers, app dev) Decentralized or federated model Dissatisfied with current system Dynamic customer wanting agility, rapid delivery, and ease of administration; Tier 1 ERP viewed as complex and costly Emerging vertical in prof services, govt, apparel, and oil & gas conc users per single instance Customer invested in multiple platforms Centralized model but not too big; replace current ERP Neutral on current system Customer with mixture of dynamic and stable business processes and medium-sized IT dept Specialized vertical where MBS not investing MBS is normally not positioned > 1K conc users per single instance Customer has no MSFT platform Centralized model and mandate for only 1 ERP system Happy with current system Customer with highly complex, specialized, and stable business processes as well as larger IT dept; Tier 1 ERP functionality desirable
16 Positioning Dynamics CRM in the Enterprise Strong Fit Using or considering Outlook Has tried to implement SAP or Oracle and has failed Is concerned about the upgrade path based on acquisitions Has complex sales requirements Has complex service requirements including field service Possible Fit Highly transactionoriented sales model (volume based, not relationship based) Large contact centers with high volume of one-and-done issues Significant out-of-thebox marketing automation requirements Limited or No Fit Wants a single instance of an ERP solution Needs vertically-specific functionality: Loyalty programs (retail) Trade promotion mgmt. (CPG) Claims processing (Insurance) Billing (Telco and Utilities) Marketing optimization (all B2C)
17 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
18 What customers are telling Gartner Top evaluation criteria when selecting a service provider 1. Technical skills 2. Solution skills 3. Project management skills 4. Industry expertise 5. Change management skills 6. Team member credentials 7. Speed to completion
19 Performance against purchasing criteria Our Conclusion Critical areas for improvement are: Project management, Delivery speed (scale) Team credentials
20 Agenda What do we mean by enterprise? How big is the opportunity? What are the issues we see occurring day to day? How do we position ERP and CRM in this market? What do our customers think? Top 7 tips for winning in the enterprise
21 7 things we can do to win in the enterprise 1. Review our business strategies in context of a fragmented market are we sufficiently focused on customer acquisition? 2. Ensure that we use the platform pitch as key differentiator 3. Boost the skills and credentials of our teams in project management 4. Approach the market with specific offerings that map to customer workloads or industry scenarios 5. Develop integrated support offerings and pitch them early 6. Focus on delivery approaches and organizational scale that allow us to deliver against aggressive timelines, 7. Work with the executive team in the customer quickly and early
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