Microsoft Dynamics

“Business Strategies of Microsoft Dynamics”

Submitted To

Prof V.Sekhar Submitted By Group – 6, Marketing-B Lokesh Mahajan (08PG168) G Praneetha (08PG301) Pavan Kumar Ghargi (08PG326) Nupur Saxena (08PG321) Sumanta Roy (08PG057) Yogesh Patel (08PG070)

Table of Contents Product Line ............................................................................................................................... 3 Product Leadership: ................................................................................................................... 3 Core competency ....................................................................................................................... 4 Example of a product that will serve the business customers: Microsoft Dynamics............. 5 Microsoft Dynamics AX .................................................................................................... 5 Microsoft Dynamics CRM ................................................................................................. 5 Microsoft Dynamics GP .................................................................................................... 5 Product Benefits ......................................................................................................................... 6 Gain better business insight for rapid, effective decision-making ......................................... 6 Enable more productive people and processes ...................................................................... 6 Manage organizational growth and gain a competitive advantage ........................................ 6 Promotion................................................................................................................................... 6 How Microsoft organizes the B2B Process ............................................................................... 7 Customers‟ needs ................................................................................................................... 7 Microsoft‟s response .............................................................................................................. 8 Pricing of Microsoft Dynamics .................................................................................................. 8 What affects licensing costs? ................................................................................................. 8 Distribution channel for Microsoft Dynamics ........................................................................... 9 The Buying Process ............................................................................................................. 10 1. Find a partner ............................................................................................................... 10 2. Document the requirements ......................................................................................... 10 3. Choose a solution ......................................................................................................... 10 4. Launch the solution. ..................................................................................................... 10 Customer Relationship Management ....................................................................................... 11 A new standard in software development and support ........................................................ 12 Freedom of choice................................................................................................................ 12 Microsoft B2B Platform and Supply Chain ............................................................................. 13 The Microsoft Vendor Program ........................................................................................... 13 Program Highlights .............................................................................................................. 13

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Product Line Microsoft software products are divided into eight main families. These include Windows, Servers, Business Solutions, MSN, Office, Developer Tools, Games and Xbox, Windows Mobile. The other software products and services are divided into four main categories. These include Home and Entertainment, Hardware, Finance, Books and Training. Among these end products, two operating segments, Client and Business Solutions, contributed to the majority of the company‟s revenue. Client consists of premium edition operating systems, including Windows XP Professional, Media Center Edition, Tablet PC Edition, and other standard Windows operating systems, including Windows XP Home. Business Solutions include Microsoft Office, Microsoft Project, Microsoft Visio, SharePoint Portal Server CAL, Microsoft Live Meeting, One Note, Office Communication Server, Microsoft Dynamics AX, Microsoft Dynamics CRM, Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Microsoft Dynamics Retail Management System, Microsoft Partner Program, and Microsoft Office Small Business Accounting.

Product Leadership: Microsoft has established itself as platform leader; it has provided technological foundation on which other products, services and systems are built. Microsoft has become industry powerhouse in software industry and world class innovator. Microsoft participates in a broad range of competitive and evolving businesses in the software industry. They are transforming into seven business: client (Windows), information worker business (Office), Business Solutions (small to medium businesses), server and tools, MSN, and Home and Entertainment (X-Box, PC gaming). Microsoft, the strategy was to focus on agility--to have the products run on a number of different computing platforms. PowerPoint was created as a new way to present overhead slides. Microsoft made the bet that people would be willing to change the way they present information and launched PowerPoint into one of their most successful applications. „You have to listen to your customers, but you also have to see beyond what your customers do now to what they might do in the future‟ is the philosophy adopted by Microsoft. Microsoft Visual Studio is an Integrated Development Environment (IDE) from Microsoft. It can be used to develop console and graphical user interface applications along with Windows Forms applications, web sites, web applications, and web services in both native code 3

together with managed code for all platforms supported by Microsoft Windows, Windows Mobile, Windows CE, .NET Framework, .NET Compact Framework and Microsoft Silverlight. Microsoft's success at innovating business models equals its success in technology innovation. Before Microsoft, there was no market for a company that did operating systems. The business model to license operating systems was novel and helped to propel Microsoft to success. According to Microsoft success is characterized by persistence: keep investing and keep trying, learn to respond and then keep trying.

Core competency Microsoft clearly recognizes their core competencies that bring them high revenue. In fact, Microsoft provides a guide to earning competency, for their business partners, on their website. These competencies are known as Microsoft Competencies. According to Microsoft, the objectives of the Microsoft competencies are to help business partners differentiate their skills and expertise to customers, extend their market reach, align their business with relevant Microsoft marketing initiatives and form closer relationships with other partners. This is in line with the concept of core competency. Although the Microsoft Competencies may not be the core competencies of the company, they are closely linked as this is a strategy in which Microsoft harmonize the activities of its business partners to itself. The end products in Client and Business Solutions operating segments can be found in different market segments, generating USD13,209M and USD14,488M in revenue respectively for the 2006 fiscal year [3]. Thus, the core competences that drive these products provided access to wide variety of market for the company. The perceived customer benefits of Microsoft products are primarily connected (connecting people, processes and systems), productive (in managing business), and flexible (in use of software). The key products that contribute to those customer benefits are the operating systems and office tools which are driven by the core competencies. These core competencies are complex and supported by the 15% of revenue Microsoft invested in R&D. Thus it will be very difficult for competitors to imitate.

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Example of a product that will serve the business customers: Microsoft Dynamics Microsoft Dynamics is a line of familiar, adaptable enterprise resource planning (ERP) and customer relationship management (CRM) solutions designed to meet almost any business need and help your people make important business decisions confidently. Microsoft Dynamics works like and with familiar Microsoft software—easing adoption and reducing the risks in implementing a new solution. These solutions automate and streamline financial, customer relationship, and supply chain processes in a way that can help you drive business success. Microsoft Dynamics AX A comprehensive business-management solution that provides midsize and larger organizations end-to-end, industry-specific functionality, Microsoft Dynamics AX also is built to make it easier to do business across locations and countries. With Microsoft Dynamics AX, you can be confident that your solution is relevant to the demands of your industry and business. Microsoft Dynamics CRM Microsoft Dynamics CRM is a customer relationship management (CRM) solution that provides the tools and capabilities needed to create and maintain a clear picture of customers, from first contact through to purchase and post-sale. With sales, marketing, and customer service modules, Microsoft Dynamics CRM delivers a fast, flexible, and affordable solution that enables closer relationships with customers and helps you achieve new levels of profitability. Microsoft Dynamics GP Microsoft Dynamics GP is a complete and scalable business-management solution that helps growing and midsize organizations get up and running quickly while maximizing the productivity of your people. It includes robust financial and operational functionality, such as business intelligence, reporting, budgeting, and forecasting, so you can be confident that your solution will adapt to the changing needs of your business

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Product Benefits Gain better business insight for rapid, effective decision-making 

Gain real-time access to a common set of accurate business information and help your business operate more efficiently.

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Erase boundaries between data silos and deliver the critical information needed by executives and staff for effective decision-making.

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Better analyze project or contract profitability.

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Give employees quick insight into predefined views of data tailored to their jobs

Enable more productive people and processes 

Connect your people to the right processes, as well as to each other.

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Improve communication and collaboration and discover better ways to work together, regardless of location.

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Automate common tasks and provide role-based access to information.

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Enable employees to work with tools they already know and understand, like Microsoft Office Outlook and Excel.

Manage organizational growth and gain a competitive advantage 

Plan current and future capacity relative to projected growth.

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Retain existing customers and gain new ones by placing customers at the center of your business.

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Rapidly respond to new trends and opportunities and identify shifts in purchasing patterns.

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Extend access to business systems across your entire organization with role-based functionality.

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How Microsoft organizes the B2B Process Customers’ needs 

Provide a personalized experience: “Treat me as if you know who I am (in the context of the company I work for) and account for what Microsoft products we‟ve already bought and installed, which products we‟re thinking of buying, which vertical segment we‟re in and our attitude toward IT.”

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Provide a relevant experience: “Make it easy for me to access all information and services I need to do business with Microsoft.”

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Provide a proactive experience: “Tell me when there is something you‟re doing that is relevant to me.”

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Provide an educational experience: “Show me how your products can make our company better, how to get the most out of your products, why IT matters and what the Microsoft product roadmap looks like in detail.” 7

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Provide a supportive experience: “Make it easy for us to contact you about our specific needs and put us in touch with the right partners at the right time

Microsoft’s response 

Understanding what our customers needed from us and how we could meet those needs online.

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Developing a value proposition and testing it with the target audience.

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Making design decisions based on continuous customer feedback.

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Incorporating a pilot phase to understand in depth how and if the offering was meeting customer needs

Pricing of Microsoft Dynamics At Microsoft, they call it licensing rather than pricing cost.

What affects licensing costs? The costs to license and use business management technology vary greatly among companies. The following factors have an immediate impact on the overall cost of your total business solution: 

Business software components. The components needed are influenced by the type of business you're in, along with the current and future software needs your company might have.

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The number and type of people who will use the software. Factors to consider include the size of your staff versus third parties (non-employees), the kind of tasks they perform, and the software access that each person needs.

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How people access the software. Mode of access (rich client versus Web client, mobile client, or other mode of access) will influence the license price. More information on the different types of access licenses can be found in the

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The level of service that's right for your company. Depending on business and IT staffing structure, one may choose varying degrees of service, training, and more.

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Overall, the price is determined by, Microsoft Dynamics GP Software price + Implementation Services + Customization and Data Conversion Services (if required) + Training + Annual Support Plan = Microsoft Dynamics GP Project Cost Per User Cost: First User Included in Foundation Pack $3,980. 1-10 Additional Users $3,980 per user 11-25 Additional Users $3,580 per user 26-50 Additional Users $3,385 per user (Call for 50+ per users costs)

Distribution channel for Microsoft Dynamics Microsoft Dynamics is a software package which is customised according to the customer needs. It is developed once the needs of customer are completely understood. Hence it requires Microsoft to understand the nature of business of the customer and the business needs. To understand the needs of customers Microsoft has appointed few Microsoft certified business partners all over cities. They assist in ERP and CRM implementation. It is delivered through a network of channel partners providing specialized services, this integrated, adaptable business management solutions work like and with familiar Microsoft software to streamline processes across an entire business. Obtaining a new business management solution is a big and important project. The customer‟s critical business data will reside within it. It will become part of everyday business processes. Not only does your new solution have to meet customer current needs, it also has to address your future goals. Certified Microsoft partners are available worldwide to help companies of all sizes and industries select and implement the right business 9

technology—and to provide support through future business change. To become certified, they must prove expertise in Microsoft technology and in specific business areas, such as financial, supply chain, or customer relationship management.

The Buying Process 1. Find a partner It's important to find a consultant who you feel comfortable working with. Look for someone who: 

Understands your local market and industry.

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Wants to involve you in the selection and implementation process.

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Has the necessary resources and proven experience.

2. Document the requirements The consultant should provide a complete list of features required to support the processes identified in the planning stage. This documentation, which should include a budget and timeframe, helps give the project focus and set expectations. Microsoft Certified Partners have helped launch hundreds of thousands of successful IT projects. 3. Choose a solution The consultant map‟s the list of required features to the products they know. They can then recommend a solution or solutions (software plus customizations) that match the needs of your business. Microsoft Certified Partners are experts in our technology. In addition, many of our partners have developed industry solutions and other specific functionality that is integrated with Microsoft Dynamics products. 4. Launch the solution After a thorough job in the previous steps, The Business is ready for a successful implementation together with your partner. Microsoft Certified Partners can help to develop and test customizations, interfaces, and data conversion tools; train end users; convert data; and launch the system.

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Microsoft certified partner

customer (end user)

Supply Chain Management

Customer Relationship Management The customer relationship management is done online as well as through this Microsoft support personnel. These partners take care of the customer need and help them in successful implementation. Microsoft has a dedicated team of customer service which helps customers whenever the customer has a problem, they can contact through their Toll free No (1 800 11 11

1100) or directly mail to [email protected]. These trade partners are the contact point between Microsoft and customer, hence Microsoft appoints only those who are capable of handling and maintaining. Microsoft has also an annual maintenance contract for the dynamics, few services are included in the total offering bundled with the product. At Microsoft, they understand how important it is for business leaders to control their technology environments—and not to let their technology environments control them. That's why we have implemented the Business Ready Customer Care initiative. This initiative is an example of the unyielding commitment that Microsoft has to its Microsoft Dynamics customers. As a Microsoft Dynamics customer, you can be assured your solutions will continue to be supported as your business grows and evolves.

A new standard in software development and support With Business Ready Customer Care, Microsoft has established a new standard for customer service by extending support for the Microsoft Dynamics line-of-business management software solutions beyond industry practices—to a full ten years of extended product support. customer gets the peace of mind you deserve through freedom of choice for product support, increased product insight, and the ability to influence the future direction of your selected product, as well as the assurance of a clear future for technology advances.

Freedom of choice Extended product support equates to freedom of choice for your business. By enrolling in and staying current with the Business Ready Enhancement Plan, you will have support options that fit your needs ten years after the initial release of a product. Even if you delay your upgrades, you will have the opportunity to access support services on the version of software your company is using. And, if you need support beyond ten years, custom support arrangements may be available for your business. By raising the bar with ten years of support options, Microsoft provides you the choice to either continue with your existing implementation or upgrade according to the timeline that's right for your business. 

Mainstream support—five years

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Extended support—five additional years custom support—beyond ten years 12

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Self-support—ten years (available on CustomerSource, the personalized customer Web site available to Microsoft Dynamics customers worldwide).

Microsoft B2B Platform and Supply Chain The Microsoft Vendor Program The Microsoft Vendor Program (MSVP) is the Microsoft preferred vendor program. It was created to make it easy for Microsoft employees to work globally with a prequalified, select group of vendors—and for vendors such as you to work with us. The objective is to make working with Microsoft beneficial to all. The program is currently available in Belgium, Canada, China, Denmark, France, Germany, Hong Kong, Ireland, Italy, MDCC, the Netherlands, Norway, Spain, Sweden, Switzerland, Taiwan, the United Kingdom, and the United States. In the future, the program will be available in other countries and regions worldwide. The goal of MSVP is simple: To enable new efficiencies for both Microsoft and vendors, bringing new value to the relationship that we are building together.

Program Highlights A primary purpose of MSVP is to define the way vendors do business with Microsoft, including requirements and expectations, to create a clear, straight path to success. The following are some key elements of MSVP: 

MSVP includes vendors of all kinds of goods and services.

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The program includes only vendors who are the best in providing their category.

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MSVP vendors are divided into two distinct levels—premier vendor and preferred vendor—to provide a hierarchy of benefits and visibility to MSVP vendors.

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MSVP is committed to diversity, including exceeding government-mandated goals and requiring MSVP vendors to share in this goal.

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