Microsoft’s Retail Roadmap Nick Charissis, Retail Industry Manager Andre Herbst, yeahpoint August 2006

Objectives Grow Businesses & Satisfied Retail Customers

Outline Retail Trends people ready Microsoft’s Retail Positioning yeahpoint’s collaboration experience Conclusion & discussion

people ready …

Source: Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March Meeting high customer expectations 41 Real time visibility throughout the organisation 32 Store level IT investments 13 Capital constraints 24 High staff turnover 65 Security 6 Sarbanes Oxley follow-up 77 Vendor consolidations 58 Capital Market pressures 89 Senior mgmt does not understand technology 10 Retailer Concerns Over Next 18 Months

Customer Pressure More choice, less time Employee Pressure More people, lower cost IT Pressure Do more with less! Competition Pressure React or die! Retail is Under High Pressure

Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Maturity Visibility Collaborative Planning Contactless Payments Corporate & Store Business Intelligence CRM Electronic Shelf Labels In-Store Wireless Deployment (Customer Facing) Labor Management & Scheduling Tools Markdown Optimisation Merchandising Merchandising & Category Analytics & Optimisation Multichannel Integration Price Optimisation Retail (Supplier) Extranet Product Content & Data Management Promotion Optimisation JAVA Based Based POS Software RFID (Case/Pallet) RFID (Asset) Biometric ID In-Store Wireless Deployment (Store Operations) Mobile POS Global Data Synchronisation Digital Signage Store Task Management POS Integrated Demand & Replenishment Planning Kiosks Self-Checkout Less than Two years Two to Five years Five to 10 years More than 10 years Key: Time to Plateau RFID (Item) Next Gen Retail OS for POS ©Gartner Retail Sector Hype Cycle, 2005

What Our Retail Customers are Telling Us Store Manager “I need to spend more time on the sales floor to help drive greater sales and less time in the back office dealing with administrative tasks.” “I need better insight into the functioning of store promotions. I have no mechanism to solicit feedback on my campaigns from store managers.” Merchandise Manager “I need to access to the right information at the right time to help my store managers make the right decisions and support our employees and customers.” District Manager “I have no way of knowing whether store receive the information I sent. I need to track compliance by stores on different tasks.” Communications Manager “I need real time data availability from the store to reduce out-of-stock and minimize inventory.” Inventory Control Manager Logistics Manager “Collaboration between the entities I work with needs to be smoother. I need to connect to the right people and information when and where I want to.”

Performance & Business Results

People Drive Business Outcomes Microsoft Innovation Supports People-Ready Business

Software that is Familiar and easy to use Continually evolving Innovative to meet your needs Widely Used and Supported by large ecosystem Easier to integrate Connected and deploy Partner Solutions

Point of Service Store Experience Microsoft’s Retail Solutions Framework Supply Chain MgtReal Time Retailing Multi Channel Planning, Supply & Operations Internal Collaboration & Mobility Business Intelligence

Bluetooth Wireless POS Peripherals Self Serve POS Lanes Intelligent Shopping Cart Tablet Specialty POS In-Store Back Office RFID Employee PDA’s In-Store In-StoreKiosk Access Points Consumer PDA’s. Electronic Shelf Labels Point of Service: Store Experience

Point of Service: Multi Channel Retailing Full Integration of Store and other Sales Channels for a Truly Integrated Customer Experience Stor orderInternetMobile Interactive TV

Wholesale/DC Manufacturers Warehouse Distribution Centre Store Consumer DEMAND CHAINSUPPLY CHAIN Retail Value Chain Create loyal consumers by understanding & fulfilling their needs Create loyal consumers by understanding & fulfilling their needs. Supply Chain Management

Store Manager’s Workbench Real Time Retailing: Business Intelligence

Real Time Retailing: Internal Collaboration Communications & Mobility

Retail Partner Alliance … Partners’ Industry Experience Industry Solutions Microsoft Platform Industry Manager Support Retail Business Issues Alliance & Solution Development Organisations Don’t Form Alliances … People Do Andre Herbst

MICROSOFT PARTNER PRESENTATION Copyright yeahpoint 2006

Our Background Niche Solution Focus on Retail and In store execution Previous Linux Based Platform –Converted to XP embedded Strategic decision to partner with Microsoft

A few of our customers ….

To Begin, 5 Questions which required answering …. What is our starting point? Where does our value lie? Customer Ownership Thought Leadership Unique technology Domain expertise Ability to work through the pain Where do we see Microsoft's value? Does the business model add up? How do we benefit mutually?

Steps taken…..1 st things first Developed a business model Ratified the model / concept –Mgt –Sales –Industry –Product Mgt Invested early in rough prototype (on our own) Ironed out the logic with MS……together we had more Market tested logic Collectively developed the next generation Identified initial customer to focus on –Worked with MS in sales cycle (from COO to CIO) –Closed the first POC –Model to sell through

Steps taken….. partnering for growth Account Planning –Industry Level –Regional Level –Start Small Think Big –Focus is everything Campaign/ PR dev Unlocking the Intl Network of MS KPI’s for success

A few partnering misconceptions MS Will: –Approach us –Close our deals –Give us a pipeline –Handle all follow up General: –All we need is technology or a good idea –Don’t worry about the techo’s –Nothing will go wrong

Retailing is a Challenge …

Retail Partner Role is Critical … Focus on business initiatives & issues Business development Solution selling Implementation Deployment Create people ready customers

familiar and easy to use widely used and supported Easier to integrate and connect with what you have innovative and continually evolves to meet your needs Why Microsoft? Integrated software platform that is: Business Transformation for Your Industry

Questions & Discussion