Microsoft Corporation

Retail Challenges Worldwide

Increased Limited Financial

Technolog Capital and Credit
y Expenditur Constraint
Use es s
Increased
Changing Slow Competitio Tapping
Customer Market n Multiple
Attitudes Growth and Global Channels
Expansion

Source: Martec International Ltd white paper : Growing Market Share in Specialty Retail , Brian Hume, April 2010
New Business Disruptors
Mobile Shopping
Disruptor: Shelf edge price compete
Response: Branded Mobile Experience (product details, location)

Customer Control
Disruptor: Empowered customers
Response: Empowered stores (real time, S+S, managed)

Multi-Channel Digital Marketing

Disruptor: Conversion to digital and social media
Response: Integrated digital platform (search, ads, social, analytics)

BI Across Borders
Disruptor: Virtual organizations
Response: BI to the masses (analytics, UC, portal, collaboration)
Retailer Responses
Customer-Centricity
Brand
differentiation
Premium shopping experience,
anywhere/anytime, multi-channel

Enhanced
customer
Personalized,
loyalty convenient, efficient,
consistent engagement

Consumer-driven
operations
People , processes, and systems optimized
around the customer

Proactive retailing
Continuous refinement based on deep
insight

“Customer relationship
agent ” philosophy
Enabled by a single, unified view of the
customer
 Connected Experiences for
Retail
Flexible Retail Applications That Embrace
Consumer Trends
Change
Retailer Responses
Changing Shopping Patterns Business Flexibility
Digital Lifestyle Broad-based Automation
Time Pressures Anywhere/Anytime
Environmental & Social Consciousness Customer Engagement
Responsible Operations

Connected People
Connected
Insight
Connected Customer
Relationships
Microsoft Stores Running
AX for Retail
Important Factors for Today’s Retailer in
Systems Projects
Ability to service markets, win new
customers
Manage Growth and Change
Total Cost of Ownership (TCO)
Extensibility
Standardize processes
Implement Quickly and Easily
Enhance employee efficiency and
productivity
Inter-operability and Integration
Better asset utilization and supply
Microsoft End-to-End Retail Solution
Sales to Supply
Connected People | Connected Insight | Connected Customer Relationships
Supply Chain Demand Chain

Integrated – Familiar – Seamless Consumer

Manufacturers

Corporate Distribution Store

Warehouse Center

Warehouse & Transportation - Replenishment & Return

Financial Management - Merchandising
Store Management - Customer Service
Multi-Channel Enablement
 Microsoft Dynamics AX
Momentum

The Leader in Mid-Market ERP

“with a more functionally rich product

line that is scalable enough to handle “a perfect storm is brewing for
the increased workload of a good-size Microsoft to capitalize on this
company, Microsoft Dynamics is setting opportunity with its technologies and
its sights higher”-Albert Pang, IDC Dynamics ERP product family” -Simon Jacobson,
AMR Research
Validation of strategy

 Key contributors for

rating:
Confidence that MS
can deliver on
roadmap by
Industry
Ecosystem key
building ‘long tail’
vertical solutions
 Retail Strategy

Midmarket/UMM/
Specialty Retail Enterprise Hub & End-to-End
20+ Vertical Spoke (Two Tier) Store Strategy
Segments Microsoft Dynamics End-to-End –
Over 50,000 optimized to pursue Priority Strategy
customers across mid-market and 3rd Party Apps –
40 countries enterprise Strong ISV Program
opportunity
 Multi-Channel Enablement
Microsoft Dynamics for Retail POS
Role-based User Experience
Payment Service for Microsoft Dynamics
Microsoft product and technology integration

Microsoft Dynamics for Retail HQ

Advanced supply chain management
Store Management
Promotion Management
Advanced price calculation
Microsoft Dynamics AX 2009
Multi-country/currency
Role Centers & Enterprise Portal
Workflow & Alerts
Scalable and Adaptable
 Value Delivered
Lower TCO
Solves the problem of Complexity
Eliminates loss of time created by redundant
data entry in disparate systems
More accurate, timely, and consistent information

Best in Class UX
Reduced training times
More productive organization and employees
through
role-based user experience

Leverage the Stack

One cohesive solution
Scalable
Flexible
Adaptable to meet new business requirements
Unique Architecture Unique
Value MS AX for Retail HQ
MS AX for Retail
POS Items
3rdParty 3rd Party Departments
Back office Items POS Payments
Departments Taxes
Advanced Pricing Categories Sales Productivit
Customers UI Layout Pricing
Advanced Discounts
Reason Codes Payments Templates Discounts y
Taxes Item Receipts TCO
Matrix
Sales Kits UI Layout
Item Groups Matrix Templates
Employees ….
Lot Matrix Hardware
~ 33% …. profile
Functional
profile
100 %

Custom Integration w/ Each Consistent Data Model and

Opportunity Complete Back Office Control of
Higher Maintenance and TCO all Store activity
Functional Timely, Accurate, Consistent
Inconsistency Information
Limited Capability Single Version of the Truth

 Payment Service Customer Value
 Delivered out of the box
Accept variety of payment types on-
premise and online
No integration required
Supported and maintained by
Microsoft

 Reducing costs of payment

No 3rd party license or enhancement
Delivered as a part of BREP
Take advantage of competing offers
from a marketplace of providers

Manage payments across



channels
Manage payments in store and online
(Buy online and return in store)
Leverage the built in shopping cart for
online payments
Enables mix&match - to use the right
payment provider for the right
channel

 Commerce Service for Microsoft
Dynamics
S tre n g h te n cu sto m e r v a lu e p ro p
E xte n d in g sa le s p re se n se w ith a d d itio n a lch a n n e l( s)
D e d ica te d o n lin e sto re fro n t( s)
H o rizo n ta lo r V e rtica lM a rke tp la ce s a n d a u ctio n site s
E n a b le s ‘ o n lin e m e rch a n d isin g ’
O u t o f th e b ox n o n e e d fo r d e e p in te g ra tio n p ro je cts
B a sic sto re fro n t o u t o f th e b ox
A d va n ce d IS V so lu tio n s a va ila b le
Fu lly in te g ra te d w ith Pa ym e n t se rvice s



Dynamics AX for Retail Launch
Timeline – Launch for 38 countries in 2010
Launch Dynamics AX for Retail - Summer 2010 for 16 key markets
U.S., U.K, CAN, AUS, DEU, DNK, NLD, NOR, IRL, ZA, FIN, NZL,
MYS, SGP, MEX, FRA
Launch Dynamics Retail AX to a further 22 countries in December 2010
CHN, IND, JPN, RUS, CZE, EST, LTU, SVN, POL, ESP, ITA, BEL,
BRA, TUR, SA, CHE, AUT, HUN, THA, ISR, SWE, ISL
Rich Ecosystem of Retail Partners
Migration from Microsoft Dynamics legacy retail
solutions
Long-term investment & support
Customer Momentum
 Investment Flexibility & Protection
A global retail solution capable of being deployed


as a complete end-to-end ERP solution

 or
 as a multi-store management solution integrated
with an existing ERP or existing POS system
Dynamics Commerce Service

AX POS 3rd Party POS

AX Retail

AX Horizontal

AX Financials
3rd Party ERP
Retail Solution – System
Overview
HQ Store Connect Service
All standard dataflow
üProduct master
üPOS settings
üStaff information
POS Store Connect Service
üTransactions St
Store
ore CCon
onnec
nectt DData
atabas
basee
üetc
SSttoorree CCoonnnneecctt Database
Database
BC . NET

Data Packet File Location Data Packet File Location

Transaction Service
AOS POS 1 POS N
BC . NET
…
Global vouchers / Gift cards
Inventory lookup
AX Database Loyalty
Sales order /invoice handling
Centralized returns / holds
Customer account payments
PPOOSS LLooccaall oorr CCentral
entral Store
Store Database
Database
etc

Head Office Store

Retail Solution – POS
Overview
UI Components

UI Process Components
Application Settings
Security
Logging

Business Business
Entities Workflows

Price
Data Access Discounts
Service Agents
Logic
EFT connections
Tax
Currency
Gift cards
CCTV
etc.
Data Source Services
 POS Plug-ins
Thedfaultpric
IPrice
modulespiby
AXforRetailPOS
Price .dll

nextdAThedfault
IDiscount discount discount
odulespibymnt
Discount.dll XforRetailPOSAbypn
POS
System Core
heEuropantxT
ITa x rules
modulespiby
Tax .dll AXforRetailPOS

Acustomized IntegradPym
IEFT payment odulespibym
XforRetailA moduleipnt
EFT.dll byaprtne
POS Customization
Plug-ins
Triggers

Blank Operations
Deployment Topologies

S to re T ra n s a ctio n S to re T ra n s a ctio n
SQL C onnect S e rvice SQ L C onnect S e rv ice
SQ L Ex press S Q L E x pr es s
SQL S QL
M essage D B M e ssa g e D B
H e a d O ffic e H e a d O ffic e

S to re S to re
C om puter
C onnect C onnect

SQL Expres s S Q L E x press

M e ssa g e D B
M essage D B SQ L

SQ L Expr ess
SQ L Express

T e rm in a1l T e rm in a2l
T e rm in a1l T e rm in a2l

S to re1
S to re1
 Supported OS Matrix
Solution to be released in SL layer
Single build per component;
Localized installer for AX & POS
Supported OS Matrix
Added Windows 7, POS Ready 2009 support
x64 bit support

Operating AOS AX Client Retail Store Retail Transaction Retail POS SQL Server version AX Retail Store Retail POS
System Connect Service Connect

Windows Server 2008 X X X SQL 2008 x64 X X X
x64
SQL 2008 x86 X X X
Windows Server 2008 X X X
x86 SQL 2005 X X

Windows Server 2008 X X X SQL 2008 Express x64 X X

R2 x64
Windows Vista x86 X X X
SQL 2008 Express x86 X X
Windows Vista x64 X X

Windows 7 x86 X X X
Windows 7 x64 X X X
Windows XP SP2 or X
higher
POS Ready 2009 X
Hyper-V *
Hardware Requirements
POS
1.4 Ghz Processor (min), 2 Ghz or higher
recommended
1 GB RAM (min), 2 GB RAM recommended
2 GB of hard disk space
Super VGA (1024 x 768) or higher resolution
monitor or Touch Screen monitor
Microsoft Mouse or compatible pointing device
OPOS compatible peripherals – scanner, receipt
printers, MSR, cash drawer, PIN Pad, Sig Cap,
Line Display, Scales
Store Connect / Transaction Service – same
as above
 Microsoft Dynamics AX for
Microsoft Dynamics AX for Retail POS
Retail Transaction and UI Management
Payment Processing Role-Tailored UI and Security
Real-Time Customer Updates Real-Time Loyalty Updates Global Returns

Microsoft Dynamics AX for Retail

Headquarters
Multi-Channel Commerce

Store Systems
 
Microsoft Dynamics AX POS Item/Shelf
Retail Configuration and Store Management
Statement Settings Hardware ConfigurationSpace Management
Integration Labelling

Logistics Merchandising

Distribution Warehouse Pricing &

Assortment ManagementReplenishment Buyer’s Push
Offer Management

Marketing

Retail Sales
Pricing and
Global Voucher Promotions Loyalty Program Data Customer Detail
Discounting Warehouse

Microsoft Dynamics AX Core

Functionality
Business Enterprise Human Financial
Analysis SCM Portal CRM Resource Management
Management
Solution Capabilities
Key Scenarios
Complete store and POS terminal management
Stores, Terminals, Staff
Pricing and Promotions management
Location, date & customer specific pricing
Promotions and discounts
Inventory management
Items, Groups, Hierarchies, barcodes, variants
Inventory transfers, replenishment, cross docking
Customer management
Create, manage, track customers & purchases
Points based loyalty schemes
Online Services – Payments and Commerce
Real time (synchronous) workflows
 Key Scenarios
Complete Store Management & POS Integration
Centralized configuration & management for each store & POS terminal
from back office
Key aspects include:
Store Management:
Regional settings and currencies
Statement settings (POS transactions to be posted to
financials and inventory)
Space Management System allows stores to be divided into
sections and shelves
Staff Management:
Employee roles, permissions, and preferences
POS Terminal Management:
Define hardware configuration
Display settings and behaviours
Payment, Statement, Tax settings
 Key Scenarios
Pricing / Promotions
Key aspects include
Varying prices by location (different
stores)
Prices with effective dates (sale pricing)
Varying prices by customer(retail, wholesale,
club)
Prices based on price groups (regular,
duty-free etc)
Prices based on different UOM, variants
Promotions by department, group, item or
variant
Mix & Match offer across items/variants
Multi-buy discounts (i.e., based on quantity)
Multiple valid offering at same time; Price
rounding
 Key Scenarios
Purchasing
Enhances the existing AX Purchasing functionality
Key aspects include:
Store Replenishment
Suggested order quantities based on predefined rules
Ability to order predefined packages (Prepacks)
Vendor Service Categories define store delivery and “on
sale” dates
Cross Docking
Merchandise can be delivered directly to store/warehouse
using Transfer Journals
Buyers Push
Allows redistribution of merchandise between stores
and warehouses.
 Key Scenarios
Loyalty Scheme
Points based incentives to reward customers and to promote specific
goods and services
Key aspects include:
Loyalty Customers can be linked to standard customer accounts
Loyalty Cards collect points that can be used as payment tender
Loyalty Schemes define a set rules that determine how the cards
work
The POS utilizes Transaction Services for real-time balance
check
Loyalty point issued and redeemed are instantly recorded into
the back office after each transaction
 Key Scenarios
Store Synchronous Workflows – Transaction Service
Connection to back office for real-time queries
Key aspects include:
Inventory lookup: Makes it possible to look up stock levels for
items in other stores.
Global Returns: POS can recall a transaction from the central
database
Real-time balance checks: For gift card / customer account and
loyalty point balances
Immediate posting: Send Transactions to central db as soon as they
are finalized on the POS.
Logon check: Makes sure a staff member is only logged onto one POS
at a time.
Floating cashier: Cashier can work on multiple POS; able to run X-
and Z-reports on any POS.
 Retail Team
Ashvin Mathew:
- General Manager, Retail & Services R&D
Michael Griffiths:
- Global Product Director – Retail
Dilip Popat:
- Global Industry Director - Retail
Will Roche:
- Retail Industry Market Development, N.
America

 Q & A
 © 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.