Microsoft Dynamics CRM: Strategy and Business Opportunity

Ross Dembecki

Agenda

• Year in Review

• Market Opportunity

• Roadmap

• xRM

• Software plus Services

• Resources

• Partner Commitments

CRM: The Year in Review

Another solid year of growth

• Partner readiness tour for CRM 4.0

• November: Partner Events in 2 Cities with over 200 attendees

• Customer launch events for CRM 4.0

• March: Customer Events in 5 Cities with over 570 attendees

Strong focus on readiness and launch

Big steps forward in competitiveness

• Strong SaaS enablement

• Strong international capabilities

CRM 4.0 delivers a big step forward

CRM Online launched in USA/Canada

MARKET OPPORTUNITY

• Core CRM is a $11B category today growing at a 8% CAGR to $14B by FY11

– SaaS solutions are forecasted to grow from 11% to 23% of revenue by FY11 (30% CAGR)

• Key trends:

– Sales automation: simple/SaaS/best-of-breed have won in recent years over more complex suite offerings/deployments

– Customer service / contact center: multi-channel with web integration is key trend; heavy customization and integration reqmts

– Marketing automation: complex marketing solutions are analytics-intensive; increasing focus on digital marketing & related svcs

Market Size by Functionality Area

Microsoft Confidential 6Source: IDC WW CRM Forecast, 2007

$3.4 B

$4.8 B

$2.3 B

$4.7 B

$6.4 B

$3.4 B

8%7%

10%

0%

3%

6%

9%

12%

-

$1 B

$2 B

$3 B

$4 B

$5 B

$6 B

$7 B

Sales Automation Customer Service Marketing Automation

FY07

-FY11 C

AG

R

WW CRM Application Revenue

FY07 FY11

Australian ERP/CRM Market Size

Australian CRM Market

• Banking, Finance and Insurance led spending with a 32% share followed by telecommunications & Media (18%).

• CRM spending is dominated by NSW with 48% of the market followed by VIC (including Tasmania) and QLD with 24% and 11% respectively.

• Of the 14 sectors analysed, the average CRM penetration rate is 37%.

• Sectors with above average levels of CRM penetration include:

– Automotive Manufacturing (51%)– Professional Services (44%).– Durable Good Distribution (44%).

• Sectors with low levels of CRM usage and hence good opportunity include:– Mining (23%)– Personal & Other Services (24%)– Education Services (28%)

• Both SaaS and on-premise inclined organizations share the same business objectives

• More than 80% of customers cite the following reasons for implementing CRM:

1. Expand business through new customer acquisitions

2. Expand business by increasing engagements with existing customers

3. Improve customer service and minimize customer turnover

4. Streamline business operations and processes

5. Reduce costs

6. Eliminate risks for my business

CRM Drivers in the Market

Microsoft Confidential 9Source: Microsoft Research, March 2008

Why do some organizations opt for on-

premise?

Why do some organizations opt for SaaS?

64%

65%

66%

70%

71%

71%

74%

76%

Customization and Configuration

Integration

Flexibility

Initial Cost

Privacy Concerns

Ongoing Cost

Control Over Data

Security

47%

49%

56%

59%

71%

79%

Substitute upfront costs vs monthly pmts

Support mobile & remote users

Lack of in-house IT staff

Gaining feature/ functionality not in

licensed apps

Speed of implementation & deployment

Lower overall costs

ROADMAP

Microsoft Dynamics CRM Suite

Full CRM suite capabilities and application flexibility

-Interactions-Marketing-Sales-Service-xRM-Business Process-SOA-Flexible Deployment

Microsoft Dynamics CRM Roadmap Overview

MicrosoftDynamicsCRM 4.0

20092008

Microsoft Dynamics

CRM Online“R1”

“Open Access”scale-out

MicrosoftDynamics

CRM Online“R2”

Online marketingand more

MicrosoftDynamics

CRM Online“R3”

Multi-languageand more

MicrosoftDynamics“CRM 5”

MicrosoftDynamics

CRM Online“R4”

New Microsoft Dynamics CRM 5

capabilities

Microsoft Confidential 13

MobilityAdapter for

Microsoft BiztalkServer

SharePoint List Web Parts

Solution Accelerators

Extensions to Dynamics CRM 4.0

Reach Client(HTML)

Windows Mobile BlackBerry

Available through

TenDigits (marketing alliance)

• Rights to promote TenDigits mobility as part ofMicrosoft marketing materials and messaging

• Inclusion in broad CRM & Windows Mobile Campaigns

• CRM Mobile marketing collateral and demo materials

• Windows Mobile version by end of 2008

Fully supported

CRM Mobile Express

Beta Release: Q1 FY09

Supported Release: Q1 FY09

Mobility: Delivering on market needs

What are Solution Accelerators?

Solution Accelerators May Consist of:

• Entities, Forms, ViewsData

• Workflow configurationsWorkflow

• i.e. custom reportsBI

• Full source code samples (strictly adhering to SDK guidelines)Source Code

• Installation, operation, localization, and extending the solutionDocumentation

How do Solution Accelerators Help Partners

Shorten the sales cycle with a killer demo or POC

Rapidly deliver value with supported, out-of-the-box functionality

Further extend CRM functionality to deliver a full business solution

Analytics Accelerator

• BI for Microsoft Dynamics CRM 4.0

• Delivers sales, service and marketing dashboards

WHAT IS IT

• View rich scorecards through SSRS, SharePoint and PerformancePoint

• Browse pre-built OLAP cubes for deeper analysis

ALLOWS USERS TO

• Drive business insights to generate new services $$$

• Deliver that compelling BI demo

• Use as competitive tie break

HOW YOU

BENEFIT

Available Q3 CY2008

Sales Methodologies Accelerator

• Tools to drive adoption of 3rd party sales methodologies such as SPI Solution Selling, Miller Heiman, Target Account Selling (TAS)

WHAT IS IT

• Consistently follow the required sales methodology from the comfort of Microsoft Dynamics CRM

ALLOWS USERS TO

• Confidently deliver the sales methodology of choice for your customers

HOW YOU

BENEFIT

Available Q3 CY2008

Event Management Accelerator

• Functionality to plan, execute, and review events

WHAT IS IT

• Plan venue, presenters, target audience

• Send invitations, automate web registrations and track event attendance

ALLOWS USERS TO

• Broaden the Microsoft Dynamics CRM offering with event management functionality

HOW YOU

BENEFIT

Available Q3 CY2008

eService Accelerator

• Self-service portal for enhanced customer service integrated with Microsoft Dynamics CRM 4.0

WHAT IS IT

• Edit their profile

• View, raise, and close cases

• Search the Knowledge Base

• Schedule services

ALLOWS USERS TO

• Open Microsoft Dynamics CRM 4.0 as a multi-channel solution

HOW YOU

BENEFIT

Available Q3 CY2008

Microsoft Confidential 22

Enterprise Search

Business Productivity

CRM Notifications

Extended Sales Forecasting

Health Care

Additional Accelerators

Vertical Accelerator for Healthcare

• Built on Microsoft Dynamics CRM 4.0

– Showcases how Microsoft Dynamics CRM is relevant to customers in the healthcare industry

– Provides a baseline for partners/customers for further development.

• Includes:

– Relationship Management BDM/TDM deck

– Value proposition document

– Demo DIFF file for CRM 4.0 RTM VPC to make healthcare demos

– Sample demo map: outline for a demo of CRM to healthcare industry

– Sample data model

• Microsoft Dynamics CRM and healthcare information

– http://www.microsoft.com/dynamics/crm/product/healthcare.mspx

– http://www.codeplex.com/crmverticaltemplates/Release/ProjectReleases.aspx?ReleaseId=13323

xRM

A Business Application Development Platform

xRM Government – Big Opportunity

Public SafetyGlobalisation

and EconomyEnvironmental

Control

Urbanisation Demographic

Time bomb

ComplianceService

Complexity

Revenue KPIs

Technology

Performance Point Performance Management

Forefront

Security

System CenterServer Management

BizTalk

Integration

VistaDesktop Services

OCSCommunications

Citizen Service Platform Capabilities

Citizen Service

Platform

SOFTWARE + SERVICES

The Power of Choice

Truly a Software Plus Service Opportunity

$7.2$8.0 $8.8 $9.7

$28.3$31.0

$33.8$36.8

$0

$5

$10

$15

$20

$25

$30

$35

$40

2007 2008 2009 2010

**B

illio

ns

of

US$

CRM Software CRM Services

Sources: *Gartner Dataquest 2006, **Forrester Research, 2007

CRM subscription

revenue projected to

grow to 22% of total CRM software

revenue by 2010*

Power of Choice enables our partners to take advantage of all CRM growth areas

Performance and Scalability

Scale flexibly and efficiently across local or global enterprise deployments

Microsoft Advantage

• Leverage optimisation throughout

the .NET, Windows, SQL and

Exchange platform

• Configure to meet user experience,

bandwidth and hardware

requirements across wide area

networks

• Scale flexibly up and out across

application and data tiers

Performance and Scalability Components• Service grid architecture• Deployment choice• WAN performance optimization• Load balance clustering

• Web farm clustering• Exchange clustering• SQL Server clustering• SQL mirroring

Microsoft Dynamics CRM S+S Partnering Framework

Customers

Service Providers/Microsoft

ISVsSIs

Resellers

Develop vertical or specialised CRM solutions

Expand On Premise solutions to On Demand

Large ISVs may self-host, but most will partner with Service Providers

Implement forSPs and ISVs

Expand On Premise business to deliverOn Demand offering

Host and bundle with existing services to cross-sell existing customers

Private label for VARs/SIs

Host for ISVs

RESOURCES

Marketing and Advertising

• Market to customers– Campaigns-in-a-box– Royalty-free images– Customer-ready sales offers– Branding elements

• Sell to customers– Telemarketing scripts– Proposal templates– Case studies– Demos and trials

CRM Statement of Direction - Now Available

• Outlines future direction of Microsoft Dynamics CRM through to the next major release, which will be aligned with the Office 14 wave of product releases due in late 2009/early 2010.

• This document is intended to be periodically updated as details are developed. Updates will be posted online.

• Not intended to be a detailed specification as items may change or be dropped over the course of time.

• Get it from PartnerSource: https://mbs.microsoft.com/partnersource/marketing/statementofdirection/MD_CRM_SOD.htm

• Refer your customers to it on CustomerSource:https://mbs.microsoft.com/customersource/documentation/whitepapers/md_crm_sod.htm?printpage=false

Developer Ramp Up Toolkit – Now Available

• Based on lessons learned during 18 months of instructor-led training by the DPE group as part of the DPE Metro Early Adopter initiative.

• The kit drills into development details and explains how .NET-based developers can interact with the Microsoft Dynamics CRM platform. It includes videos, presentations, hands-on labs, and a VPC environment for practicing.

• Audience: .NET developers wanting to quickly ramp-up on Microsoft Dynamics CRM 4.0 development practices and techniques

• Where to get it: http://msdn.microsoft.com/en-us/library/cc720132.aspx

CRM Marketing and Sales Resource Guide

• This comprehensive guide is a ‘one-stop’ place to find information related to Microsoft Dynamics CRM. Categories of information include:

– Understanding Customer Relationship Management

– Microsoft Dynamics CRM Product Overview

– Marketing Microsoft Dynamics CRM

– Selling Microsoft Dynamics CRM

– Microsoft Dynamics CRM Resources

• Get it from PartnerSource: https://mbs.microsoft.com/partnersource/partneressentials/guides/MD_CRM_MSResourceGuide.htm

Dynamics & Microsoft Essential Business Server

•Simplify and lower TCO of maintaining Dynamics apps across your infrastructure with Windows Essential Business Server

•Major Benefits:

– Reduce IT Costs

– Reduce Complexity: Gain More Control

– Increase Efficiency with Microsoft Dynamics Integration Components Add-In

•More Information:– www.microsoft.com/dynamics

– www.microsoft.com/windowsserver/essential/ebs/editions.mspx

Useful Links and Resources

• Learn more about CRM– http://crm.dynamics.com (customer-facing)

– http://www.microsoft.com/dynamics/crm/default.mspx (customer-facing)

– https://mbs.microsoft.com/partnersource/ (partner only)

– http://www.microsoft.com/downloads/ (search “Dynamics CRM”)

– http://microsoft-crm-au.spaces.live.com/ (Dynamics CRM in Australia BLOG)

– Australian Dynamics CRM 4.0 Product Info on Windows Live Skydrive– http://citizenserviceplatform.com/default.aspx

Increase your win rate

Increase your share of wallet and revenue per deal

Expand your market and address more customer opportunities

Retain a greater percentage of your customers

Add higher margin offerings to your software and service portfolio

PARTNER COMMITMENTS

Partner Commitments

• Become a Microsoft Partner

• Get MBS Certified

• Enroll in CSA Program

• Learn more about Dynamics CRM

• Profile yourself in Partner Solution Profiler

SystemIntegrator

• Become a Microsoft Partner

• Get MBS certification o partner for it

• Enroll in SPLA

• Learn more about Dynamics CRM

• List yourself on the Communications Sector CRM page

• Profile yourself in Partner Solution Profiler

• Introduce yourself to your Hosting Solution Specialist

Service Provider

Summary

Lots of room for growth in our business

Increased competitiveness in our products

New tools and campaigns to drive business

Strong talent in the Field and Channel

Strong commitment from Corporate

Questions?

APPENDIX

Sales Force Automation

Microsoft Confidential 44Sources: Gartner

Customer Service / Contact Centers

Gartner Vendor Ratings by Functional Area

CRM Notifications Accelerator

• Newsfeeds that allow users to subscribe to CRM “events” relevant to their job role

WHAT IS IT

• Choose how to receive information (Outlook 2007, Vista Gadgets, I.E.) about topics you care about (e.g. new leads, trouble tickets, etc.

ALLOWS USERS TO

• Drive a role-tailored subscription experience for your users

HOW YOU

BENEFIT

Available Q3 CY2008

Business Productivity Accelerator

Available Q3 CY2008

• Collection of time-saving productivity customisations for Microsoft Dynamics CRM 4.0

WHAT IS IT

• Conduct business data auditing

• Sales, Service and Marketing workflows

• Microsoft Solution Selling Process (MSSP)

ALLOWS USERS TO

• Deliver customer value quickly with these time-saving and innovative customisations

HOW YOU

BENEFIT

Extended Sales Forecasting Accelerator

• Richer forecasting mechanism for Microsoft Dynamics CRM 4.0

WHAT IS IT

• Quickly classify pipeline as High, Low or Commit

• Track budget for nominated periods

• Generate forecast reports

ALLOWS USERS TO

• Deliver flexible yet SIMPLE sales forecasting for your customers

HOW YOU

BENEFIT

Available Q3 CY2008

Enterprise Search Accelerator

• Display and search Microsoft Dynamics CRM data from within SharePoint

WHAT IS IT

• Use one central search to find e-mails, documents, web content, and now Microsoft Dynamics CRM data

ALLOWS USERS TO

• Drive services revenue through enterprise search solutions

• Configure audience-specific SharePoint portals with CRM data

HOW YOU

BENEFIT

Available Q3 CY2008