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Partner opportunity Microsoft Dynamics 365 Business Central

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1 Partner opportunity Microsoft Dynamics 365 Business Central
Welcome. My name is _____ and I’m here to talk to you about the great opportunity for Partners with Microsoft Dynamics 365 Business Central. Microsoft Dynamics 365 Business Central © Microsoft Corporation

2 Business opportunity Business opportunity Why Microsoft? Next steps
When looking to expand your business, there are a lot of opportunities for you to evaluate, so next, I want to show you why building a business applications practice is a great investment to accelerate business growth.

3 Industry trends Business applications insights 73% 2020 67% of the purchase decision is complete before a customer even calls a supplier.1 By 2020, customer experience will overtake price and product as the key brand differentiator.2 of the buyer’s journey is now done digitally.3 30.2M 92% 73% There are 30.2 million small businesses in the U.S., and this number is rising.4 of SMBs use at least one cloud application.5 of SMBs are currently investing in modernizing their IT infrastructure or planning to within two years.5 1. CEB 2. Walker Information 3. Sirius Decisions 4. SBA 5. SMB Group

4 Market opportunity Market size
Total addressable market Market size By 2022, the business applications market is estimated to grow to $173 billion, a 45% growth from today. $119 Billion $173 Billion And if we look at the market size all-up, the opportunities are even greater. This year, the market is projected at roughly $119 billion. Over the next 3 years, we project this to grow to nearly $173 billion. That’s a 45% increase! 2019 2022 projected Microsoft internal research, 2019.

5 Building a practice SMB/Dynamics 365 Business Central addressable market $8.8B SMB SaaS market opportunity SMB SaaS market opportunity Employees $16.8B Data source AMI; 2023 WW SaaS spend 

6 Microsoft Business Applications licensing margin
Economics of building a practice Partner economics over a three-year period 40% Return on Investment $12MM Net Present Value 15 months Breakeven period $10-to- $1 Microsoft Business Applications licensing margin Forrester, 2019.

7 Planning for growth Three-year gross profit projection
Typical practice profit margin and mix over three years $10,959,094 ERP implementation $7,627,594 CE implementation $5,438,155 Total licensing margin $4,506,886 Business Central implementation revenue $3,896,160 Managed services $3,470,036 ERP and CRM upgrade projects $2,132,597 Follow-on project revenues $944,510 Business strategy, assessment, and visioning consulting revenue Total: $40.7 million Three-year gross profit projection by revenue stream $1,718,667 Resalable IP sales Forrester, 2019.

8 Joining a strong ecosystem
Growth from FY18 to FY19 16% growth in partners selling Dynamics 365 36% growth in partners selling $1M+ deals 8% increase in average revenue per partner 6,300 Partners selling Dynamics 365 530+ Partners selling across Dynamics 365 portfolio 2,500 Partners selling PowerApps

9 Why Microsoft? Business opportunity Why Microsoft? Next steps
So now that you’re sold on why developing a business applications practice is an amazing investment, I want to shift to talk about our Business Applications Platform and why it is the best opportunity for Partners.

10 Why Microsoft Business Applications?
Build and grow a practice quickly with industry-leading innovation Lead with innovation Modular, highly customizable apps built on a unified platform of common data services, AI, and business intelligence can help you differentiate your offerings. Build on your strengths Microsoft makes it easier to enter new markets using the Microsoft development and management tools you already know. Broaden your reach Accelerate business results with Microsoft partner marketing resources that increase the impact and visibility of your services. To keep this super simple, we’ve narrowed it down to three main benefits: We give you industry leading innovation, we allow you to build on your strengths with tools you already know, and we help you broaden your reach, so you can grow even faster. Let me quickly dive into these three areas a little more.

11 Lead with Innovation “We chose to partner with Microsoft because we trusted that they would constantly innovate and offer the industry-leading solution set.” Sam Dharmasiri, Director, eBECS “Partnering with Microsoft is the best bet if you want to future-proof your company. Their investment in innovation is unparalleled.” Christian Hutter, Principal, RSM

12 Microsoft Business Applications ecosystem
Intelligence Data Marketing Modern Unified Talent Sales Intelligent Adaptable Microsoft Dynamics 365 Operations Retail Our Business Applications Platform, and surrounding ecosystem, is comprised of a suite of business applications to support all types of businesses across a range of industries and lifecycles. Today, we’re specifically talking about Business Central, but it’s important to know that this is just one component in our ecosystem that is all designed and built to work together. Beneath our applications, we have the Power Platform, which connects to our Common Data Service and provides a common set of development, logic, and BI tools that Partners can access to extend our existing Dynamics 365 apps or build their own apps. More on this later, but first, let’s discuss the business opportunity. Finance Service Power Platform Power BI Flow PowerApps

13 Microsoft Business Applications ecosystem
Intelligence Data Project management Financial management Operations management Modern Unified Intelligent Adaptable Business Central Sales & service management Reporting & analytics Supply chain management Our Business Applications Platform, and surrounding ecosystem, is comprised of a suite of business applications to support all types of businesses across a range of industries and lifecycles. Today, we’re specifically talking about Business Central, but it’s important to know that this is just one component in our ecosystem that is all designed and built to work together. Beneath our applications, we have the Power Platform, which connects to our Common Data Service and provides a common set of development, logic, and BI tools that Partners can access to extend our existing Dynamics 365 apps or build their own apps. More on this later, but first, let’s discuss the business opportunity. Power Platform Power BI Flow PowerApps

14 Dynamics 365 Business Central
Help SMBs connect their businesses and make smarter decisions. Better manage financials Automate and secure supply chains Sell smarter and improve customer service Keep projects on time and under budget

15 Solutions that scale with your business
Dynamics 365 Business Central Essentials For companies that need sophisticated processes yet simple enough to be managed in one solution across finance, supply chain, and project management Dynamics 365 Business Central Premium An end-to-end cloud business management solution – adding key functionality for manufacturing and service order management Dynamics 365 Business Central Team Members To drive adoption of the solution across users – approve Time & Expense, read business reports, lookup customer and inventory data

16 Build on your strengths
“With best-in-class cloud offerings on Dynamics 365, we’ve become a more competitive business, because we deliver services tailored to the unique needs of these vertical markets from a suite of streamlined business applications.” Whit McIsaac, CEO, Americas, SAGlobal “The breadth of capability you get with the Microsoft platform is amazing. Between Dynamics 365, Azure, and Power Platform, you nearly have it all.” John Pence, Founder, Sunrise Technologies

17 Leverage existing skillsets
Partner-owned IP Utilize your teams existing skills and knowledge of Microsoft tools, including Office 365, Dynamics 365, and AppSource Take advantage of a stair step approach to invest gradually and grow as you’re ready Differentiate your business through the Cloud Business Applications Competency 3rd party apps (AppSource) Annuity-based managed services Microsoft Dynamics 365 Dynamics 365 Business Central

18 Your success in the cloud is our goal
Capitalize on growth opportunity Change in Profit Model Switching to subscription business models Offering high-margin services and attaching your IP Finding new customers through AppSource Selling more with a clear upsell path for additional cloud services Driving customer retention as a trustworthy cloud advisor Improve Profitability Project services Managed services Packaged IP Monthly license subscription 20% 35% 45% 65% In addition to securing your base from competition there is also an opportunity to grow your business by switching to subscription business models that are more profitable and stickier. You can also finding new customers through AppSource and improve your bottom line by offering new services and attaching your IP. This is a great time to be a Microsoft partner - You have a competitive Cloud Product which we will discuss the value and show you. However it is very important that your customers have clear understanding of this. Take charge and control the conversation. You saw the competition coming after your customers, it’s fierce > You know your customers are looking for guidance Mention the TCO calcultaor © Microsoft Corporation

19 Grow new practice areas
Business Central Solution specialization Industry solutions Market segment Customer Service Small and mid-sized Best practices IP Templates References Field Service Sales Marketing Enterprise Leverage existing technology and knowledge to add additional practice areas Take advantage of a stair step approach to invest gradually and grow as you’re ready

20 Expand on vertical expertise
Developing vertical expertise Microsoft Business Applications SI Partner survey Focus on key verticals, industries, or workloads to drive differentiation and competitive advantage Leverage existing understanding of target customers’ challenges and underlying business problems Expand offerings within existing vertical expertise to better support customers Expand on your existing vertical expertise to provide more comprehensive and customized support for your customers Reduce costs and speed deployment times with best practice documentation, references, and templates

21 Broaden your reach “Microsoft’s support of our go-to-market efforts, both at the regional and corporate level, has been instrumental to our growth.” Rik Dubbink, Partner, CRM Partners “Dynamics is the lifeblood of everything we do. It’s the beating heart of our clients’ customer experience, it’s the way they optimize their operations and increase staff productivity, all helping them stay ahead of their competition.” Steve Scarbrough, General Manager, Dynamics, Intergen

22 Drive sales with GTM programs
Utilize Microsoft-provided enablement programs and resources to drive new revenue growth Join a global community that connects you to the relationships, insights, tools, resources, and programs to expand customer reach Take advantage of dedicated support, co-sell programs, and seller incentives Millions of possibilities – selling with Microsoft Connect with customers through Marketplace, partner channels, and field sellers Marketplace 1: Millions Microsoft Value Global Marketplace Capabilities Demand Generation Global Demand Center 100k leads/month Reach 75M Buyers Leads Generated via Search P2P 1: Thousands Global Channel Reach Demand Generation 17M Partner Sellers 500k partner opportunities Microsoft Sellers 1: Many – SMC Corporate Co-sell with MS Field Sellers Field Sellers 1,800 28k Corporate Customers Co-sell (IP and Services) Field Sellers 6,500 12K Enterprise Customers 1: Few – Enterprise

23 Do more with Microsoft Resources
Free, unrestricted access to digital learning New architect bootcamp training and implementation coaching New and improved role-based training and certification Easily market your services at scale through AppSource Microsoft Partner Center Link Microsoft Learn Link Overall Partner Info and Readiness MPN

24 Reach new customers through AppSource
Easily market your services at scale Reach 100 million commercial active users Help business users do more with their existing Microsoft Apps Simplify the discovery, trial, and acquisitions of line-of-business apps and services

25 Next steps Business opportunity Why Microsoft? Next steps

26 Get started Develop a competency Take advantage of partner incentives
Leverage Microsoft resources to help build and grow a practice Develop a competency Demonstrate your proven expertise in delivering quality solutions in a specialized area of business. Learn more Take advantage of partner incentives Accelerate business growth with partner incentives that will help you reach more customers. Learn more Download the Partner Playbook Learn more Learn how to get started as a partner.

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