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Microsoft Dynamics ERP in SMB / ERP moving to the cloud

Microsoft Dynamics ERP in SMB / ERP moving to the cloud. Will McIntee and Emily Stone. Agenda. An Introduction to Dynamics NAV Our SMB Strategy The Market Customer Expectations Partner Transformation Future Technology Resources. Microsoft Dynamics NAV.

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Microsoft Dynamics ERP in SMB / ERP moving to the cloud

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  1. Microsoft Dynamics ERP in SMB / ERP moving to the cloud Will McIntee and Emily Stone

  2. Agenda • An Introduction to Dynamics NAV • Our SMB Strategy • The Market • Customer Expectations • Partner Transformation • Future Technology • Resources

  3. Microsoft Dynamics NAV Largest Microsoft ERP Partner Network 80.000 Customers World Wide #1 in the Microsoft Dynamics product family

  4. OUR SMB STRATEGY • Grow Share in SMB • Positioning – clear • Deployment – Microsoft hosted and on premise • MBS focus – recurring revenues • License revenues – subscription based • Software/Services ratios – minimized by rapid deployment • Positioning – some confusion • Deployment - on premise • MBS focus - license revenues • License revenues - charged upfront • Software Services ratios – maximized by customization The Past Our Future Proposition only relevant to those customers who have decided to replace their system and budgeted to do so. Proposition relevant to all designed to drive switching behavior amongst users of legacy applications

  5. Today OUR SMB STRATEGY Future Customer Risk Contract Deploy Value Add Identify Evaluate Time to Value Identify Evaluate Deploy Contract Deploy Value Add Customer Risk Time to Value

  6. Costing… • Annual ERP costs equal to about 1% of annual revenue • Cost Categories • Project Staff 40% • Consulting % Services 25% • Internal Costs 10% • Training 15% • Software 5% • Hardware 5% Source: Info-Tech Research Group, Select a Mid-Market ERP Solution, 2011

  7. The Market

  8. The competition is awaking The number ERP Cloud offerings is growing; • Netsuite • Financialforce.com • SAP Business-by-design • Epicor Express • Sage One & Sage 50 • Exact Online • InforSytline • Plex Systems • Everest Software • Activant • QAD On-demand • ….

  9. ERP SaaS companies have the future The stock-exchange never lies! (Firm Value/FY+1Revenues) • Unit4 1,6 • Epicor 1,7 • Lawson 1,8 • Exact 2,0 • Sage 2,6 • SAP 3,5 • Netsuite 10,4 • Salesforce 12,6

  10. By the way FV/Revenuefromleading consulting firms: AtosOrigin 0,45 CSC 0,46 Cap Gemini 0,67

  11. SMB Marketing #2—Articulate the SMB Value Proposition #3—Field and Partner Enablement #1—SMB Relevancy “New Messaging and BOM” “New Online Experience” “ERP Volume Campaign Toolkit”

  12. Customer Expectations

  13. Customer Expectations • Get Out of the Infrastructure Business • Pay As You Go • Pay As You Grow / Peak (Or Shrink) • Improve Time to Value • More Rapid Innovation; Less Upgrade Pain • IT Best Practices for Everyone • Cloud Innovation Drives Better Products

  14. Influencers of Customer Behavior Individual Markets How fast will adoption take place? Desired Benefits Why I’m subscribing to the cloud? Customer Segment How much CapEx am I willing to pay? Billable Services Faster time to value Enterprise CapEx to OpEx Midmarket • Data Sovereignty • Regulatory Compliance • New Markets • Infrastructure • App workload Reduce IT Expense Small Business

  15. The Transformation DNA of a Successful Partner

  16. EXPERIENCES FROM THE FIELD • The Cloud is NOT a financing model; • Don’t include your consulting hours in the monthly fee; • Cloud is not about cannibalizing your existing business but winning new business; • The lead time to get your first Cloud business in is 6 – 9 months; • Be aggressive; • Pro-actively offer Cloud solutions; • Defining your Cloud proposition; • In the sales process “make it easy for a customer to say yes!”;

  17. Traits of a Successful Partner Enterprise Small & Midsize Strong branding and nurture engine Prospect education via online activities Marketing Process High efficiency, selling factory Selling Strategy Seed and expand Fully packaged, vertical alignment Offer Composition Basic packaging w/ custom components Solution Delivery Completely structured and repeatable Fixed scope in phases Business Model Trusted Advisor Factory Approach

  18. Journey of Transformation • Assess your readiness • Invest in an optimized cloud business model • Lead through innovation • Differentiate with packaged IP Go to Market Presales support resources Global solution visibility Business productivity tools Operational Readiness Deep 1:1 consulting Awareness Role-based readiness programs www.microsoft.com/dynamicscloudpartner

  19. Leading the Transition Execution What do I need to do to succeed? Time to Benefit How long will it take me to get to profitability? The Payoff What’s in it for me? • Perpetual Revenue • More Stable • Higher Margin • Seven key levers • Crossover point For More information see Cloud Partner Profitability Guide

  20. Rapid Implementation

  21. Calculate the costs of implementations more accurately  Sell your solution again and again  Save time, resources and money Repeatability, Repeatability, Repeatability The Value of Rapid Implementations Doing Microsoft Dynamics rapid implementations, you can:

  22. How To Achieve Rapid Implementations Rapid Implementations Benefit from proven rapid implementationmethodology and resources from Microsoft: Make use of the proven tools and methodology already available Take advantage of the many benefits from rapid implementations

  23. Resources For Accelerating Implementation Implementation methodology and tools • Microsoft Dynamics Sure Step Methodology • Rapid Implementation Methodology Toolkit for Microsoft Dynamics NAV, (RIM) • Jump Start Microsoft Dynamics Sure Step for Microsoft Dynamics NAV • Best Practices Analyzer for Microsoft Dynamics NAV

  24. In the Short Term

  25. Start now! • Define your Volume Proposition • Focus on repeatability • A succesful volume focussed business today has the essential building blocks for transitionig to the Cloud • Managing the cost of sale is key – review your capability and ensure it fits with the model • Pre-sales: record demos and publish to the web. • Pre-sales: a finite resource, manage effectively through technology.

  26. Call to Action! • Get your (localised) vertical(s) in the Cloud • If you need assistance in choosing a vertical speak to your PAM, TPAM or PTA (willmc@microsoft.com) • Get your proposition togehter • Get your first reference customers on-board

  27. Idea: Get started with Office 365 • Office 365 is now integrated with NAV 2009 • Make it part of your standard offering • Speak to existing customers about the opportunity to integrate their NAV solution with Office 365…

  28. ERP SMB campaign • ERP SMB marketing campaign to generate new customers for FY12 • Support Dynamics NAV and GP Partners with a compelling end user offer to close new business • Target audience • Small and mid-sized businesses purchasing MS Dynamics NAV or GP

  29. Lead Generation • New customer promo • 5 users for £1800 • 1-year BREP (@ 5-user list) • Live until June 22nd • Lead Generation • Localised messaging • Search engines • Microsoft.com/uk • Co-branded partner marketing materials

  30. Partner Rebate

  31. The Resources… Link to the Cloud Partner Profitability Guide:https://partner.microsoft.com/global/productssolutions/dynamics/40162698 Video on P&L Levers Slide: http://www.youtube.com/watch?v=UWmHCNKgapg New update of Statement of Direction after the Summer… Road to Repeatability: https://mbs.microsoft.com/Cms/Templates/site/UtilityPlus.aspx?NRMODE=Published&NRNODEGUID={2DB8F204-6349-4352-B6EF-1C4025027AAB}&NRORIGINALURL=/partnersource/worldwide/northamerica/partneressentials/R2R&NRCACHEHINT=Guest&wa=wsignin1.0 ERP Volume Toolkit: https://mbs.microsoft.com/partnersource/marketing/marketingcollateral/messagingframeworks/SMBToolkit.htm

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