1. Microsoft Partner Conference 2004 1 Wei Yang Chua Director, Enterprise Operations Microsoft Asia Pacific Operations Center

2. Microsoft Partner Conference 2004 2 Agenda APOC Overview Topics Covered in Operations Track Vision for MS Operations & Operations Strategies FY05 Initiatives Summary APOC Overview Topics Covered in Operations Track Vision for MS Operations & Operations Strategies FY05 Initiatives Summary

3. Microsoft Partner Conference 2004 3 5 Operations Centers servicing customers worldwide USOC North America GMT-8 European Ops Center Ireland GMT Asia Pacific Ops Center Singapore GMT+8 OEM global Ops Center U.S. GMT-8 Latin America Reg. Ops Center U.S. (Miami) GMT -5 Microsoft WW Operations

4. Microsoft Partner Conference 2004 4 Advantages & Disadvantages of a Regional Operations Center Advantages Shared Headcounts Better Job Refinement Shared Fixed Costs: –Warehouses –CD Stampers –Printing Plates –Systems Advantages Shared Headcounts Better Job Refinement Shared Fixed Costs: –Warehouses –CD Stampers –Printing Plates –Systems Disadvantages Distance One Model Fit All WW Infrastructure Air Freights Language Support

5. Microsoft Partner Conference 2004 5 Role of A Regional Operations Center Working with MS subs, provide operational support to 14 countries in the APJ region for: Channel Partner Management & Support Transaction Processing - Order Management & Agreement Processing Inquiry Management & Response Channel Partner & Customer Support for Systems & Tools (MVLS, MOET, Explore.ms) Supply Chain – Demand Planning, Vendor Management (manufacturing & Distribution) & Media Fulfillment Pricelist Publication Program Maintenance & Launch Call Center Support for Product Activation & SA Benefits Working with MS subs, provide operational support to 14 countries in the APJ region for: Channel Partner Management & Support Transaction Processing - Order Management & Agreement Processing Inquiry Management & Response Channel Partner & Customer Support for Systems & Tools (MVLS, MOET, Explore.ms) Supply Chain – Demand Planning, Vendor Management (manufacturing & Distribution) & Media Fulfillment Pricelist Publication Program Maintenance & Launch Call Center Support for Product Activation & SA Benefits

6. Microsoft Partner Conference 2004 6

7. 7 APOC – Roles & Responsibilities Patrick Lung General Manager, APOC Diana Ngien Administrator Wei Yang Chua Director, Enterprise Operations Teddy Liu Director, Special Projects Group Daniel Yue Director, SMS&P & Channel Operations Vijaya Sambnani Director, Program/CDDG Operations & CPE Daniel Wong Director, Supply Chain Operations (1)Enterprise Agreement (2)Select Agreement (3)Academic (4)Government (5)Services contracts & billings for PSS Premier (1) Partner (MSPP, MAPs, Rewards, Empower ISV, Learning Solutions) (2)CDDG programs (MCP, MCT, Technet & MSDN) (3)EDSG (MSDNAA, IT Academy, PIL Grants) (4)End users (Direct Marketing Campaigns, Supplemental Parts, Marketing Events, Rebates) (1) CFPP (2) System Builder Channel (3)MBS (4) Open Suite of Volume Licensing (5)PIPC (1)LAR (2)ESA (1)Distributors (2)Software Advisors (1)Partner & End-customers (2)Certification customers (3)IT Professionals Yasutaka Hirano Japan Site Manager (1)All VLO programs (2)All CFPP programs (including H&E & Xbox) (3)All MBS fulfillment (4)All Partner, End- customer & Developer programs (5)PIPC (Manufacturing & Distribution) (1) Six-Sigma (2)Product Activation (1)Program Management (2)Systems (Licensing) (3)Business Process Management (VLO non- Open) (1) Program Management (2)Call center management (3)Business Process Management (1) Channel Management (2)Pricing (3)Systems (FPP & Open) (4)Business Process Management (FPP & Open) (1)Demand Planning (2)Manufacturing (3)Distribution (4)First Article Inspection (5)Fulfillment (VLO & Programs) (6)Anti-piracy (1) Six Sigma (2)Product Activation (3)Central Purchasing (4)Project Management (1) On-site management of Japan-based operational staff For Japan, (1)All VLO programs (2)All CFPP programs (including H&E) (3)All MBS fulfillment (4)All Partner, End- customer & Developer programs (5)PIPC Account Management Functional Ownership Programs

8. Microsoft Partner Conference 2004 8 Topics Covered in Operations Track SA Benefits – Systems & Tools Enhancements Operations Annual Survey Results Explore.ms Key Functions & Reporting Capabilities Licensing 6.3 Agreements Pricing Media Fulfillment SA Benefits – Systems & Tools Enhancements Operations Annual Survey Results Explore.ms Key Functions & Reporting Capabilities Licensing 6.3 Agreements Pricing Media Fulfillment

9. Microsoft Partner Conference 2004 9 “Millions of Transactions – One Great Experience” Vision for MS Operations & Operations Strategies Improve on systems, processes and tools to create a Trustworthy Operation Focus and improve on Customer Partner Experience with Microsoft Improve on systems, processes and tools to create a Trustworthy Operation Focus and improve on Customer Partner Experience with Microsoft

10. Microsoft Partner Conference 2004 10 FY05 Initiatives Summary 1. Pricing Excellence ■ Historically, experience a lack of control on price points, discounts, pricing errors escaping to the channel, etc ■ Projects to establish policies, leadership, processes and systems ■ Started in FY04, gaining organizational momentum and funding 2. Program Excellence ■ Simplify the customer relationship with Microsoft's volume licensing program offerings ■ Enhance external education and communication around licensing ■ Grow the value proposition of Software Assurance ■ Materially improve licensing-specific customer satisfaction

11. Microsoft Partner Conference 2004 11 FY05 Initiatives Summary 3. Commercial Contract Engine (CCE) ■ Next generation of processes and systems in the Licensing and Programs area ■ 2-3 year implementation plan ■ Eliminate the frustrating purchase/transaction experience and reduce long term costs. 4. Customer Connection Center (C3) ■ Single destination for commercial customers on Microsoft.com ■ C3 linked to two primary Microsoft strategies ■ Broad Customer Connection ■ Improved Customer & Partner Experience

12. Microsoft Partner Conference 2004 12 FY05 Initiatives Summary 5. Channel Operations Excellence ■ Systematically deciding the appropriate service and resource levels ■ The optimization of the channel operations model will be done via improvements in three core work streams: ■ Introduce differentiated service offerings ■ Create a more cost effective, scaleable operations model ■ Redefine the channel and program management roles 6. Trustworthy Operations (Run the business) ■ IT applications are highly available, reliable and secure ■ Agreements and invoices routinely processed without delay and without error ■ We provide superior service to our clients and partners in the regions.

13. Microsoft Partner Conference 2004 13 FY05 Initiatives Summary 7.Customer & Partner Experience ■ Improve customer and partner experience with Microsoft Operations through business process excellence ■ Using Predictive Indicators generated from the Voice of the Customer (VOC) intelligence to drive your/our business to positively increase CPE

14. Microsoft Partner Conference 2004 14 Our CPE Commitments At a Leadership Level driving towards the same goal NSat+7 At the Activity Level driving Customer CPE issues using Conditions of Satisfaction, Voice of the Customer Data, Predictive Indicators, Regression Analysis – building a case for change, focusing on quality data to identify the ‘real’ issues CPE Team providing the tools, programs, services & passion to ENABLE the org to realise this objective. CPE engrained in to our DNA. Customer Experience now becomes a DRIVER of business processes. Building a culture of accountability from the customer perspective

15. Microsoft Partner Conference 2004 15