Dynamics erp for the enterprise – the next frontier SESSION: AP080 Claire Kennedy Dynamics ERP Product Manager Microsoft Australia Trent Innes Dynamics Sales Lead Microsoft Australia

Challenges for Enterprise Applications “Enterprise Apps Customers Have Issues,” Forrester Research, Inc., February 26, 2010

Today’s Needs, Yesterday’s Solutions 7/5/2018 Today’s Needs, Yesterday’s Solutions 1980s Enterprise Resource Planning (ERP) architecture still deployed today Intertwined spaghetti code and parameters Duplicated data structures Middleware and batch processes The result: Complexity and inflexibility Functionality in separate applications Business intelligence (BI) an afterthought Task-oriented user experience

A new generation of ERP That works for you, not against you Applications that are an asset Simplicity and agility Complete industry- specific solutions Manufacturing Distribution Retail Services Public Sector Powerful embedded analytics and BI Works the way you need it to Simple to use Tailored to meet your needs Get the right data to decision makers

Product Strategy Investment in industry relevance, empowering a rich vertical ecosystem! Global: multi-site, -legislation, -language & n-site central deployment Increase productivity of ERP users & reach more employees Decrease Time-to-Value for ERP deployments Utilize the power of the Microsoft Application Platform Microsoft Confidential

Microsoft Dynamics AX at a Glance Global: multi-site, - legislation, - language, n-site central deployment Over 13,000 AX customers from mid-sized organization to divisions of large enterprises Global network of software & services partners Native Office experience for rapid adoption Flexible and scalable n-tier architecture Extends Microsoft application platform for rapid vertical application development

Powerful Agile Simple TechReady12 7/5/2018 © 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.

Winning with AX2012 in Enterprises Enterprise Capable Application Enterprise Credible Channel Enterprise Sales Motion Enterprise Class Services Enterprise Business Success The game changer: Microsoft Dynamics AX2012 With Microsoft Dynamics AX2012 Microsoft offers a truly enterprise-capable ERP solution But, product capability is only part of the customer expectation, vendor “skin-in-the-game” is critically important To be competitive Microsoft will offer more robust enterprise class delivery and support services via R&D engagement plus MCS/Premier offerings What is new: Microsoft to “mandate” (customer opt- out) Microsoft Services offering for 100+ user projects to mitigate risk What is not new: Microsoft services will continue to augment partner provided services, not replace them Two Tier Enterprise Businesses Annual ERP Spend ~$54B Major AX ERP Customer Scenarios Corporate Account Managed Multi-X Local Vertical Corporate Territory Managed SMB

Two-Tier Value Proposition 7/5/2018 9:09 AM IT Trends: Budget constraints Y2K Replacements High Maintenance Costs of Tier 1 ERP vendors Business Trends: Globalization Alignment IT and Business Productivity Imperative Innovation CIO Challenges: Low IT Efficiency High Costs of integration Inability to support business innovation Business Challenges: Lack of operational visibility Lack of global standardization of core business processes MICROSOFT CONFIDENTIAL © 2006 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.

Microsoft Enables Success Field Support: Account Management presence in thousands of Enterprise accounts Sales Support: Solution Sales Professionals supported by Technical Specialists and targeted Industry Managers Implementation Support: Microsoft Consulting Services (MCS) - Deep Microsoft technology implementation expertise available around the globe Profitability: The top half of our partners achieve an EBITDA of 17% - 25% on their Dynamics practice Over 13,000 AX customers from mid-sized organization to divisions of large enterprises

What The Analysts Are Saying... The product's enhanced flexibility and usability will position it well in deals at the margins of the enterprise category — companies with $500 million to 2 billion in revenues. ..” Paul Hamerman, China Martens ,Forrester, May 2011 “Microsoft has a massive partner ecosystem it can mine for opportunities. SAP less so except those as yet un-named ISVs that may look at ByDesign as a second string. Oracle has nothing as substantial as either of the other two players.” Dennis adds, “If it is successful then Microsoft becomes the stealth competitor to SAP, Oracle, Infor and whatever Epicor/Activant becomes.” “They have actually done a nice job of combining process manufacturing, discrete manufacturing and lean manufacturing in one product. Most other products don’t do that.” Source: Christian Hestermann, Gartner Inc; SearchManufacturing.com, June 23 2011

A new generation of ERP That works for you, not against you Enhanced Industry functionality Services Sector Public Sector Retail Distribution Manufacturing Interoperability Solution investments + Related ecosystems = Improved productivity and lower IT costs Simple Powerful Agile 1,000+ new features and enhancements

Roadmap of Innovation Dynamics AX ‘8’ Dynamics AX ‘7’ Dynamics AX2012 Continued innovation targeted at mid-market with particular focus on: Simplicity Productivity Dynamics User Experience Leadership Microsoft technology Time-to-Value Dynamics AX 2009 Continued focus on Simplifying Application Lifecycle More Industry functionality More deployment flexibility More Software + Services scenarios Simplifying Application Lifecycle Enhance Financial Capabilities Enrich Industry Platform Best Practices in Business Processes Software + Services Role Tailored UX Global Enterprise Capabilities Compliancy Self-Service BI MAJOR RELEASES 2017-2018 2008-2009 2011-2012 2014-2015 SERVICE PACKS/MINOR RELEASES Additional SP’s Additional SP’s Additional SP’s Additional SP’s MICROSOFT CONFIDENTIAL © 2006 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.

Next Steps Gain an Understanding of AX 2012 Product Capabilities and Development Roadmap Talk to Existing Dynamics Partners Understand positioning in the market Connect with the Australian Dynamics Team on Additional Questions Attend Sales/Presales training in September

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