Enables platform simplification, business agility and growth Cultivates community of deep enterprise resource planning (ERP) talent and proactive engagement across enterprise Showcases Microsoft technologies Provides prescriptive guidance on business, process, and technology Two teams focused on ERP (Microsoft Dynamics and SAP) reporting to one manager

When, where, and why

Business value Enterprise showcases

MSExpense Expense reporting Microsoft Business Solutions (MBS) Order Central Invoicing and collections, inventory, pricing Microsoft Retail Stores Hardware and software sales Microsoft Operations Puerto Rico Media manufacturing MSN Asset life cycle management Microsoft Consulting Services * Professional services Microsoft IT Project management Xbox Hardware Project management Microsoft Supply Chain IT Project management Microsoft SAP systems Core ERP systems * Still in planning stages

Rapid implementation for a small subsidiary with time constraints Tax savings if implemented quickly Microsoft Operations Puerto Rico Out-of-the-box solution to replace custom internal applications for budgeting and planning Same functionality as SAP and 25% cheaper to implement Microsoft IT Out-of-the-box solution to fill functionality gap in existing customization MSN Rapid implementation Showcase our products in the Microsoft Store Microsoft retail stores Out-of-the-box solution to fulfill project accounting needs Wanted disconnected solution Microsoft Supply Chain Out-of-the-box solution to fulfill project accounting needs Wanted disconnected solution Xbox Hardware Out-of-the-box solution to replace a third-party solution and internal systems Eliminate manual processing and redundant entry and showcase our products to potential customers Microsoft Consulting Services Out-of-the-box solution to replace custom internal application Global solution with minimal overlap with SAP Microsoft Expense Unique business requirements for channel partners and customers Showcase Microsoft Dynamics AX using the MBS business Microsoft Business Solutions Order Central

Microsoft Dynamics AX as an internal solution

Acceptable: Extensions App properties New elements Extended classes Not acceptable: Unnecessary alterations Application modifications Changes to SYS elements Duplicated standard functions What’s acceptable?Assessment framework Adapt business process to fit standard Enhance product, if product timelines align IT develops, product group guides and adopts -OR- Identify third-party/ independent software vendor (ISV) solution IT customizes, product group guides Steps to close gaps Certified third-party solution Customization s Minor customizations Configuration Out of the box Single team focused on Microsoft Dynamics AX (Center of Excellence or COE) Requests come to COE for analysis COE collaborates with IT and business teams to assess fit/gap and high-level effort Once approved, COE can act in many roles Project owner and implementer Design and implementation consultant Infrastructure deployment and management Governanc e

MSExpense Expense reporting Microsoft Business Solutions Order Central Invoicing and collections, inventory, pricing Microsoft retail stores Hardware and software sales Microsoft operations Puerto Rico Media manufacturing MSN Asset life cycle management Microsoft Consulting Services * Professional services Microsoft IT Project management Xbox hardware Project management Microsoft supply chain IT Project management Microsoft SAP systems Core ERP systems * Still in planning stages Microsoft Dynamics AX 2012 Microsoft Dynamics AX 2009 Upgrade planned Microsoft Dynamics AX 2009 Upgrade planned Microsoft Dynamics AX 2012

Implementing Microsoft Dynamics AX at Microsoft

Program management DevelopmentTestBuildDeploy Partner with: Product team Support Consulting

Development box Development branch Production Development branch User acceptanceSystem integrationDevelopment branch Development box System integration User acceptance End to end VSTF Scalability Virtualize Shared framework Model driven SAP

Q1 (Feb) Q2 (May) Q3 (Aug) Q4 (Nov) Q1.1 (Mar) Q1.2 (Apr) Q2.1 (Jun) Q2.2 (July) Q3.1 (Sep) Q3.2 (Oct) Q4.1 (Dec) Q4.2 (Jan) Major release Minor release

Program management DevelopmentTestBuildDeploy Partner with: Product Team Support Consulting For developers For users

Connecting Microsoft Dynamics AX with SAP

Key Processes in Microsoft Dynamics AX Connection pointsCommon SAP connections Microsoft Operations Puerto Rico Manufacturing, plan, forecasting Order management Inventory Purchase orders (SAP) Packing slips (SAP) General ledger entries (SAP) Master data management Chart of accounts Exchange rates Dimensions Cost centers Internal Orders (Ios) Profit centers Trading partner Materials master Sales geographies Employees/vendors Employee reporting hierarchies Transactions Journal entries Microsoft Sales (revenue) Tools Single integration framework created to facilitate common approach to master data management for all instances Microsoft IT Project management, time reportingBudget/forecasting system MSNProcure to order Fixed asset management Purchase orders (SAP) Fixed assets (SAP) Microsoft retail storesPoint of sales, HQ management Back office inventory POs, packing slips (SAP) General ledger entries (SAP) Warranty vendor Sales orders (SAP) Microsoft Supply Chain Project management Xbox hardwareProject management Microsoft Consulting Services Project management, time reporting Professional time and billing In process MSExpenseExpense reporting and approvalReimbursement credit card vendor, employees) MBS Order CentralCustomer/partner setup Invoicing, credit, and collections Product mastering, pricing General ledger Print vendor Fulfillment vendor

Upgrade lessons learned Microsoft Dynamics AX 2012

Planning Typical project plan for development, system integration, and user acceptance testing Functional specifications for moving (or removing) customizations Additional time for security design and testing Added data validation test plans to ensure data correctness Analysis Architectural reviews to update infrastructure Review business requirements to validate current process and take advantage of new Microsoft Dynamics AX processes Identify custom features that are now in Microsoft Dynamics AX 2012 and remove them Eliminate unnecessary reports Modernize integrations between systems

Trial upgrade Three cycles for code upgrade: initial merge and debug, update forms to the new UI, debug and fix bugs in testing Allowed extra time because we were testing Microsoft Dynamics AX 2012 pre- releases We tested two RCs (release candidates), RTM, CU1, and CU2 – released on CU2 Optimized for Microsoft Dynamics AX 2012 Completely redesigned security Reengineered batch jobs and SQL Server Integration Server jobs Rearranged UI for customizations Data upgrade and data validation Multiple cycles for data upgrade: All iterations should be fully analyzed Fix bugs and take that learning forward for following iterations Repeat until you reach your weekend target Created a separate migration environment and use the State Transfer Tool Initiated a separate project to validate data Created a separate data server where data analysis could be run Compared counts, amounts by company, by currency against the Microsoft Dynamics AX 4.0 data Performed significant ad hoc testing of reference data Functional testing Full regression testing on the functional areas Additional end-to-end tests during user acceptance testing to ensure that the data conversion worked

Task name (Iteration x) Start dateTime zoneFinish dateTime zoneBy Time Previous Microsoft Dynamics AX Upgrade Release Week Short Interval Schedule PreProcessing (Pre-Go Live) Restore production database into upgrade environment 12/1/2012 8:45Central12/1/2012 9:00Central Joe0.25 Prepare production data for preprocessing 12/1/2012 9:00Central12/1/ :15Central Joe/Sue Perform preprocessing checklist 12/1/ :15Central12/1/ :45Central Sue0.50 Back up upgrade database 12/1/ :45Central12/1/ :00Central Sue0.25 Preprocessing 12/1/ :00Central12/1/ :00Central Joe/Sue Remainder of preprocessing checklist 12/1/ :00Central12/1/ :15Central Joe Back up upgrade database 12/1/ :15Central12/1/ :30Central Joe0.25 Total Go Live Activities Restore production database into upgrade environment 12/2/2011 8:30Central12/2/2011 8:45Central Joe Prepare upgrade environment for state transfer tool 12/2/2011 8:45Central12/2/2011 9:00Central Sue Create prerequisite data 12/2/2011 9:00Central12/2/2011 9:15Central Joe/Sue Run the state transfer tool (STT) to load shadow tables 12/2/2011 9:15Central12/2/2011 9:30Central Joe0.25 Back up STT (single user processing) database 12/2/2011 9:30Central12/2/2011 9:45Central Joe0.25 Single user processing 12/2/2011 9:45Central12/2/ :45Central Joe Back up STT database 12/2/ :45Central12/2/ :00Central Joe0.25 Pre-sync/table creation for post processing 12/2/ :00Central12/2/ :15Central Joe/Sue Back up STT (pre-sync) database 12/2/ :15Central12/2/ :30Central Sue0.25 Perform bulk copy of data / post processing 12/2/ :30Central12/2/ :45Central Sue Complete post processing checklist 12/2/ :45Central12/2/ :00Central Sue0.25 Back up new production database 12/2/ :00 Central 12/2/ :15Central Sue0.25 Run post processing repair scripts 12/2/ :15 Central 12/2/ :45 CentralSue Back up new production database 12/2/ :45 Central 12/2/ :00 CentralJoe0.25 Total Note: These are not actual people or timings. Your timings may vary based on your installation!

Functional area Iteration 1Iteration 2Iteration 3Iteration 4Iteration 5 Comments Customers No variance Partners No variance Product mastering No variance Invoices count No variance Invoices value 9,122,222 12,727,771 19,473,738 28,375,021 34,107,440 No variance Credit and collections 908, , , , ,149 No variance Finance GL balance Difference for AUD Bug# Finance deferrals count 595,766 N/A 1,021,577 1,892,952 2,045,804 No variance Finance deferrals value 324,030 N/A 538, , ,240 No variance Agreements No variance Note: The success criteria for the above domains is 100% data match between Microsoft Dynamics AX 4.0 and Microsoft Dynamics AX 2012 (zero variance)