1. DISCLAIMER ©2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Dynamics AX 2012, Microsoft CRM, Management Reporter, Microsoft Visual Studio, Microsoft Office, MS SharePoint, InformationSource (Beta) and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others. 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. All pre-release product release dates and features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice. Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

2. TECHNICAL CONFERENCE 2011 LEARN | INSPIRE | INNOVATE NICE,FRANCE

3. MICROSOFT DYNAMICS AX FOR RETAIL MERCHANDISING & STORE OPERATIONS ENHANCEMENTS BALAJI BALASUBRAMANIAN, JOSEF SCHAUER SESSION CODE : BRK256 MICROSOFT DYNAMICS R&D MICROSOFT CORPORATION

4. Today we will show you … Products, Merchandising Hiearchies and Category Management Assortment Management Pricing and Promotions Improvements Store Operations enhancements

5. Components in action today

6. Products Products are “global” Base and extended properties management Inventory Dimension Groups Retail Uptake – Migrate Retail attributes and functionality – Style dimension rationalized

7. Products – Retail Uptake details Retail Product attributes and features rationalized across Global Products and LE specific (released) Products. 7

8. Additional Enhancements Add Products – Additional invocation points Purchase order, Sales order, transfer order, counting journal – Support for global/released products depending on invocation point – Support for dimensions display – Ability to set quantity – Variant matrix selection dialog Mass update worksheet – Allows bulk product updates across product categories – Changes can be validated prior to posting

9. Category Management - Goals Uptake AX2012 generic category framework Support for multiple retail category hierarchies Enhancement for better product maintenance

10. Category Management - Overview Generic Category Hierarchy Management Role/Purpose of Category Hierarchy Purpose-specific Category Hierarchy Management

11. Category Management - Details Retail Product Hierarchy – One retail product hierarchy – Categorize products Supplemental Retail Hierarchy – Any number of supplemental retail category hierarchies – For special purposes (e.g., Clearance, Discounts/Promotions, Top items, Assortment etc.)

12. Category Management - Details Products categorization via – Bulk: Retail product hierarchy management form – One-by-one: Product management form Retail Product Hierarchy – Product can be categorized only once – Product attributes (user defined) – Default product property values (Global, LE Specific) Basic product properties Retail product properties Option to preserve overridden product property values – Map vendor categories

13. Category Management - Details Consistent implementation and user experience across product Tree-style navigation N-level deep category hierarchy – No longer limited to four Define Manually or Import hierarchies User defined attributes – Category attributes – Product attributes Child category nodes inherit from parent node

14. Category Management - Details Supplemental Retail Hierarchies – Any number of supplemental category hierarchies – For special purposes (e.g., Clearance, Discounts/Promotions, Top items, Assortment etc.) – Product can be categorized across hierarchies, but only once within a hierarchy – Product attributes (user defined)

15. Demo 1 : Products, Category Management PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Merchandising Manager Difficult to setup, manage large number of products across companies Need to have multiple merchandising hierarchies for variety purposes Hard to manage properties (core, custom) as well as inventory dimensions Products & Inventory Dimensions Category Management Inventory usability improvements Retail product attributes and dimensions rationalized with standard AX Multiple Merchandising Hierarchies, with unlimited nodes Easy way to manage and maintain products

16. ASSORTMENTS

17. Feature Overview Assortments – Defines product availability for each store/channel Where and when a product is available – Utilize groups of products and channels for easier management – A store’s overall product mix is determined by one or more assortments

18. Assortment Assortment 1 Item A Assortment 2 Assortment 3 Item C Store X Store X Store Y Store Y Store Z Store Z Item B

19. Assortment Base Item Assortment Base Item Assortment Winter Sports Motor Sports All Stores Alpine Region Stores Large Stores

20. Assortment Use of products, categories, organizational model – Assortments are global An assortment can span across legal entities – Assortments contain global products and categories An assortment may contain products not released to legal entities – Organizational model Utilize multiple hierarchies containing legal entities, business units, channels, etc… Define assortments across multiple channels – Support for all retail channels (brick and mortar + online)

21. Assortment Support for excluded products – Assortments can be defined to “include all products in category X except product Y” Date effectivity – Assortments can be planned ahead of time with specified start and end dates – POS Client is date effectivity aware Assortment status – Assortments can move between “draft” and “published” states Only published assortments impact product availability Changes made to in-draft assortments can be reverted

22. Assortment Assortment visibility – Assortments for a given channel – Products for a given channel – Channels where a product is available – Assortments a product belongs to – Products within an assortment

23. Assortment Assortment scheduler – Assortments are de-normalized using a batch job – Improves performance Only published assortments are processed Only the delta is processed

24. Demo : Create an assortment PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Retail merchandising manager Product availability across all channels Seasonality of merchandise Adding new product during a season Creating and publishing and assortment Use of organizational hierarchy Use of product categories Easy control of product availability across channels using assortment hierarchies and date effectivity Newly added product can automatically be included in assortments

25. PRICING AND DISCOUNTS

26. Price calculation at POS Retail store has price groups assigned Uses AX trade agreements for either store or customer – Falls back to base sales price on product Price adjustment – Temporary price reduction with special conditions

27. Product price Trade agreement $10 Base sales price $9 Product price $10 Price adjustment $8 Product price $8

28. Retail discounts Discount – Percentage, amount, specific unit price Quantity discount – Percentage, specific unit price Mix and match discount – Percentage, amount, deal price, least expense, line specific Discount period – Specific days, time periods Concurrency rules – Exclusive, best price, compounded

29. Periodic discounts Discount B 20% Discount A 10% Sales price $6.4 Best price Discount B 20% Discount A 10% Sales price $5.76 Compounded

30. Promotion publishing Discounts are tied to AX campaign management Unique discount (coupon) code per media – Code is optional or required at time of retrieval Published through Sites Services

32. Demo: Pricing and discounts PersonaPain Points and ChallengesFeatures CoveredResults and Benefits Retail merchandising manager Product has different prices in different channels, regions, etc. Promotional pricing Leverage of price groups and trade agreements Channel price lists Retail specific discount offers Easily set prices across channels Visibility into current prices from store or product Flexibility in promotional pricing

33. STORE OPERATIONS IMPROVEMENTS

34. Store Operations Improvements Store Database and Support for Hybrid mode – Data Consistency across stores – Key scenarios for offline usage – Support critical multi-Register scenarios End of Day Improvements – Blind Close – Floating Till

35. Store Database - Feature Goals Support a central store database with the ability for terminals to connect to a local offline database when the store database is unavailable. ‒ Ensure terminals are functional as close to 100% of the time as possible ‒ Lessen store connect load ‒ “Single version of the truth” ‒ Enable tradeshow and sidewalk sale scenarios ‒ Reduce impact of server administration on operations

36. Concepts and Definitions ‒ Store Database: Central database within a store ‒ Offline Database: Database used by POS when store database is unavailable ‒ Synch Service: Data synchronization service built on Microsoft Sync Framework

37. High level 37 Synch service keeps offline db updated

38. High level - Connection lost 38

39. High level- Offline 39

40. High level- Reconnect 40

41. High level- Trans Synch 41

42. Data Synchronization  Master data synchs from store db to offline database  While connected to store database transactions are saved directly  Transactions while offline synch back to store database 42

43. Topologies 43 Supported: – POS with local offline db – POS without offline db Unsupported: – Deployment without Store Database – Hybrid / Mix-n-Match

44. End of Day Improvements - Feature Goals – Floating Till Loss prevention measure Flexibility for specific users to utilize all terminals when needed – Blind Close Support better Cash management via balancing till in separate location 44

45. Concepts and Definitions 45 Terminal is ready to process any sales transaction Sales transactions are grouped into a “batch” (or “shift”) which are assigned to a specific terminal and staff member Other staff members, with appropriate permissions, can use the open batch Sales Only non-drawer operations such as quantity and price checks can be performed; all other operations will result in an error Non-drawer operations Batch is currently opened and assigned to a user and terminal User is actively performing sales transactions Only one active batch per terminal Batches must be explicitly opened and closed by staff member Active Batch Batch is on hold and is not currently assigned to a terminal E.g. staff member goes on break Explicit operation of “Suspend batch” is performed by staff member An operation of “Resume batch” reopens the batch Suspended batch

46. Feature Details Introduction of Retail POS Staff types 46 Users can only log on to one batch For example, staff members assigned to a specific terminal or lane such as in department, discount, or convenience stores Users assigned to a specific till/batch Users share the batch Little accountability For example, all sales reps at specialty store sharing 2 terminals. Or, store managers who require the ability to utilize any terminal at any point Users sharing a till/batch

47. Feature Details 47 Batch status Is a batch currently open? Who owns the batch? Who are the users of the batch ? User status and permissions Can the user log on to this batch (as owner or user)? Does the user have an open batch within the store? Prompts for POS mode System prompts the user to either: Open a batch Use existing batch Resume an existing batch Perform a non-drawer operation

48. Feature Details – Blind Close Introduction of a new batch status and operations 48 Batch is blind closed through a new operation Batch is no longer active but is not closed Terminal is free to open a new batch Till is counted and batch closed in another POS terminal Blind closed batch

49. What we showed you today… Demonstrated few of the key capabilities in the upcoming release – Products, Category Management – Assortment Management – Pricing and Promotions Management – Store Operations Improvements

50. Related sessions CHK222: Dynamics AX for Retail – Drill down on Store Connect, Transaction Service, Monitoring and Troubleshooting BRK255: Dynamics AX for Retail – Online Services Overview and Investments

51. Visit our Focus Rooms Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts Gain further insights on Dynamics AX Industry Solution Offerings Resolution Guidance on Solution Roadblocks Networking Focus Topic Highlight Business Intelligence Tuesday 2.15pm – 5.45pm Risso 6C Risso 8A Risso 7B Risso 7A Risso 6C Risso 6A/B

52. © 2010 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.