Integrated Innovation – From Shop Floor to Top Floor

2

Microsoft in Verticals

Priorities – supported by global teamsRetail & HospitalityManufacturingHealthcare and Life SciencesFinancial ServicesProfessional ServicesCommunications

3

Microsoft in Manufacturing

Individual Manufacturing TeamsOil & GasConsumer Packaged GoodsChemicalsHigh TechAutomotive & Industrial Equipment

4

1) increasing top line revenue2) reducing operating costs3) improving employee productivity4) increasing customer satisfaction

To establish Microsoft and its partners as trusted advisors in manufacturing by delivering solutions that drive customer value by:

Microsoft Manufacturing Industry Mission

5

FY03/04

FY05/06

FY07/08

Credible Solution Credible Solution partner in partner in ManufacturingManufacturing

Seller of Seller of Productivity SoftwareProductivity Software

Trusted Advisor Trusted Advisor and Thought leader and Thought leader in Manufacturingin Manufacturing

PlayerShape the Shape the industryindustry

PartnerHave a seat at Have a seat at

the tablethe table

ProviderSell what you Sell what you

havehave

The Transformation Of Microsoft’s Role In Manufacturing

6

Microsoft – From Visibility to Vision Building a digital manufacturing enterprise

VisibilityOptimizationAutomationCollaborationAnticipationExecution

Vision

7

Integrated platform Spans and connects the entire solution cycle

Software architecture The only way to reduce complexity and cost

Partner ecosystem and economics Unrivaled breadth, specialization, and value

Connected

Dependable

Productive

Best Economics

Microsoft Strategic Pillars In Manufacturing

8

“Our standard of living depends on the wealth-generating capacity of manufacturers across Canada – on their ability to innovate, continuously improve productivity, and deliver customer value.”

“A strong manufacturing sector has been and must continue to be a critical element of Canada’s economic success.”

“Our standard of living depends on the wealth-generating capacity of manufacturers across Canada – on their ability to innovate, continuously improve productivity, and deliver customer value.”

“A strong manufacturing sector has been and must continue to be a critical element of Canada’s economic success.”

•Canadian manufacturers produced and shipped $560 billion worth of goods in 2004

•The value of manufactured shipments has increased by 83% since 1990

•Manufacturing has grown 16% faster than the Canadian economy as a whole over the past thirteen years

•There are approximately 54,000 manufacturing facilities operating across Canada today, about 20,000 more than existed only a decade ago.

•Manufacturing accounts for 77% of Canada’s merchandise exports and for two-thirds of our total exports of goods and services.

•Canadian manufacturers produced and shipped $560 billion worth of goods in 2004

•The value of manufactured shipments has increased by 83% since 1990

•Manufacturing has grown 16% faster than the Canadian economy as a whole over the past thirteen years

•There are approximately 54,000 manufacturing facilities operating across Canada today, about 20,000 more than existed only a decade ago.

•Manufacturing accounts for 77% of Canada’s merchandise exports and for two-thirds of our total exports of goods and services.

The Importance of Manufacturing in Canada

Source: CME 20/20 Report – The Future of Manufacturing in Canada – Feb. 2005

9

Supply Chain FragmentationInternal Collaboration and Business

IntelligenceCommodity Price IncreasesDeveloping SCM TalentPower Shift from supplier to customerRegulatory Compliance Protecting Intellectual PropertyIT Integration

Common Issues – Areas of Risk

Source: Microsoft Research Report – Feb. 2005

10

Rising Canadian dollarOvercapacityAvailability of skilled personnelHigh tax & regulatory costsChanging patterns of customer demandCompetition from ChinaAccelerating pace of technological changeNeed to develop new marketsU.S. border bottlenecks (post 9/11 world)

Canadian Specific Issues

Source: CME 20/20 Report – The Future of Manufacturing in Canada – Feb. 2005

11

Supply Chain Fragmentation

Internal Collaboration and Business Intelligence

Developing SCM Talent

Regulatory Compliance

IT Integration

ERP solutions supporting XML

BizTalk, Sharepoint Portal Server, SQL Reporting Services

HR performance management sol’ns

OSA for SOX; BI & reporting tools

BizTalk; XML

Challenges mean Opportunities

12

Partner Demonstrations

Matrikon Profile

Fullscope Profile

AlphaMosaik Profile

Acrodex Profile

Wellpoint Profile

13

Thank you

MatrikonFullscopeAlphaMosaik

14

Thank you

MatrikonWellpointAcrodex

15

Recap: Microsoft in Verticals

Priorities – supported by global teamsRetail & HospitalityManufacturingHealthcare and Life SciencesFinancial ServicesProfessional ServicesCommunications

16

Start building a stronger value proposition; incorporate ISV solutions & the value of the platform

Pick a vertical & declare yourselves; develop competencies & business plans; forge partnerships

If you want Orlando Ayala to hear your views on manufacturing (May 20th in Toronto)

.. send an e-mail to jsalter@microsoft.com

For manufacturing, tell us what you need in FY06

.. send an e-mail to rgowler@microsoft.com

Calls to Action

17

Thank you for attending!

Q&A