microsoft dynamics crm: strategy & business opportunity
TRANSCRIPT
Microsoft Dynamics CRM:
Strategy & Business Opportunity
Agenda
• Introduction to the Dynamics Team in Ireland
• Microsoft Dynamics CRM – The Partner Opportunity
• Market Opportunity; Dynamics CRM in Ireland; Partner Business Models; Partner Opportunity?
• Microsoft Partner Program (MSPP) Overview
• Licensing, CSA Program Overview, Certification, Service Plans, Partner Support & Resources
Dynamics Team in Ireland
• Mark McCrory – Dynamics Lead
• T - Partner Account Manager – Emer Carley
• Marketing Manager – Conor Wickham
• Dynamics Sales – Richard Bevan
• Dynamics CRM PTS – Mark Gullick
• Dynamics NAV PTS – Jenny Cawthorne
Microsoft Dynamics CRM at a Glance
• Over 15,500 customers
• Over 750,000 users
• Full CRM suite of marketing, sales, and customer service
• Native Office experience
• Advanced SOA / Web Services-based architecture
• Flexible, fast and affordable
Truly a Software Plus Service Opportunity
2007 2008 2009 2010$0$5
$10$15$20$25$30$35$40
$7.2 $8.0 $8.8 $9.7
$28.3$31.0
$33.8$36.8
CRM Software CRM Services
**B
illions
of
US$
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
Gartner 2007 CRM User Survey Question:
What are the three main drivers for your CRM initiative?
Why Are Customers Buying CRM?
Source: 2007 Gartner User Survey Analysis, North America
Key drivers for deploying CRM have changed. Today it’s about improving service and customer loyalty.
Customer Satisfaction and Retention Are Key
Effectively managing the customer lifecycle – from marketing to sales to service – is critical to every
company’s profitability and growth.
“… companies with high customer satisfaction scores have blown the S&P 500 out of the water, especially over the last few years. Not only have they produced higher stock returns, but their stock values and cash flows have been less volatile.”
- Harvard Business Review, March 2007
Why Dynamics CRM?
• Familiar interface – developed with Office, Outlook, SharePoint, etc.
• Reduces risk
– Vendor viability and longevity i.e. Gartner says 40% of applications vendors will be consolidated in 2 years
– Choice e.g. how you use it (Outlook, Browser, Mobile) & deploy it (on-demand or on-premise)
– R&D of $5 billion this year
– Support and size of Microsoft partners (local & vertical), customer & .NET communities
• Lower TCO and faster ROI
Delivers your requirements today and reduces your future risk
ууущщйццззййзConfigurable
Business Process Service-Oriented Architecture
Flexible Deployment
360O
Customer View
Phone
Fax
Face to Face
Web
Pointof Sale
On-Premise/ On-Demand
Configure/ Customize
Department/ Enterprise
Single-Tenant/ Multi-Tenant
Microsoft Dynamics CRM Suite
9
Strong Momentum with Key Analysts
Source: Forrester Research, 2007
Survey of Partner Business Models
• VARs add value to hardware and software products by providing consulting, customization, development, integration and support services.
Value-Added Reseller
• SIs create customized solutions by integrating disparate systems and technologies. SIs typically have functional and domain expertise.
SystemIntegrator
• ISVs develop unique intellectual property that they package in a custom application and repeatedly sell to specific industry verticals or customers.
Independent Software Vendor
• Service Providers offer infrastructure and/or application hosting and other services to customers.
ServiceProvider
• System Builders specialize in assembling complete computer systems based on components from multiple vendors.
SystemBuilder
• Small Business Specialists have expertise in marketing, selling, planning and implementing solutions for small businesses.
Small Business Specialist
What Can Microsoft Dynamics CRM Do For You?
• Drive Improved Customer Satisfaction– Improve end customer productivity through ease of use and broad user
adoption
– Address customers’ needs for flexibility through choices in deployment and
licensing
– Serve all customer segments with a product considered the “right size” for
every business
• Achieve Greater Business Success – Partner with a proven technology and market leader
– Deliver more innovative solutions with next-generation platform tools and
technology
– Capitalize on one of the world’s largest partner ecosystems
What Can Microsoft Dynamics CRM Do For You?
• Accelerate Your Revenue Growth– Add the fastest growing CRM product to your product and service
portfolio
– Create service bundles to grow your share of wallet (CRM, business
intelligence, Microsoft SharePoint)
– Generate new revenue streams from other CRM offerings (vertical
solutions, referral fees, hosting)
• Increase Your Profitability – Leverage existing skills, experience, technology investments and business
processes
– Sell more services at higher billing rates and with increased utilization
– Increase your gross margins by reselling the software licenses
– Achieve faster time to market by utilizing CRM as a development platform
– Shorten your sales cycle and lower your cost of sales with hosted trials
Source: Institute for Partner Education and Development, “Solution Provider Profitability Blueprint for SMB,” April 2007.
CRM Solution Providers targeting SMBs are 35% more profitable than competitors and achieve total deal margins > 30%*
The Opportunity
“The top two reasons for CRM failure are lack of user acceptance and failure to populate and maintain data”
• 67% of Irish businesses have nothing in place for CRM
Monetizing Microsoft Dynamics CRM
Software Plus
Services
Advertise
Refer
Host
Resell
Customize
Design & DevelopConsult
Support & Train
• adCenter Partner Referral Program
• Microsoft Dynamics CRM Online CSA fees
• Managed infrastructure
and applications
• CRM Licenses• Partner-
hosted solutions
• Tailored solutions to
specific customer
needs
• Packaged ISV solutions
• Business process and
implementation consulting
• User/help desk support
• Training
Business
Strategy
Solution
Planning
Hardware
Setup
S/WInstall
Process
Modeling
DataModel
ing
Integrate
Apps
Change
Mgmt
Training
8 days 3 days 2 days 1 day 5 days 5 days 15 days 5 days 5 days
$160 – 250/hr
$160 – 250/hr
$95 – 135/hr
$95 – 135/hr
$120 – 170/hr
$120 – 170/hr
$120 – 170/hr
$100 – 150/hr
$100 – 150/hr
50 seat opportunity…
On-Premise CRM: 49 days (average)
Partner services revenue:
Partner Services Opportunity
Real Deal Metrics
Customer Segment
Small Business
Core Mid-Market
Upper Mid-Market
Enterprise
# of CRM Users: 10 70 300 700
Industry: High-Tech Life Sciences Manufacturing Prof. Services
Sales Cycle: 30 days 30 days 2 months 6 months
Implementation Time:
1 week 60 days 3 months 9 months
CSA Fees: $1,200 $20,500 $64,500 $120,000
Services Revenue: $15,000 $150,000 $215,000 $300k+
Total Partner Revenue:
$16,700 + recurring services
$170,500 $279,500 $421,800
Break-even in around 9 - 18 months Range of initial investments is approximately $20k to $50k Annual ROI of 33% (of expenses) in 2nd year and beyond
Agenda
• Introduction to the Dynamics Team in Ireland
• Microsoft Dynamics CRM – The Partner Opportunity
• Market Opportunity; Dynamics CRM in Ireland; Partner Business Models; Partner Opportunity?
• Microsoft Partner Program (MSPP) Overview
• Licensing, CSA Program Overview, Certification, Service Plans, Partner Support & Resources
CRM Practice Investment Lifecycle
Unpaid Services
Reven
ue
Investm
en
t
Add-on Sales
Additional
Customers
Growth
Investments required to start new practice
Initial
Customers
Launch
MBS Competency
Join MSPP
Sign SPA/CSA
Hire/allocate people
Certification
TrainingDemand Generation
Pre Sales
Start Up
Time to first sale, revenue and profitability
Pain Points:
1
2
3
2
1
Microsoft helps you address each of these pain points with
enablement programs, support, services and incentives.
3
Time
Licensing Microsoft Dynamics CRM
Deployment Options
Licensing Models Sample SKUs
On-Premise• Volume Licensing• Business Ready
Licensing (BRL)
User CALsDevice CALsFull CALsLimited Use CALs
On Demand Partner-Hosted
Services Provider Licensing (SPLA)
Service Provider Edition SALs
On DemandCRM Online
CRM Online Professional SALsProfessional Plus SALs
Because “one size fits all” doesn’t apply to your customers…Choice in licensing frameworks helps you win different types of deals
Microsoft Software Advisor (CSA) Program• Increase Your Revenue Potential
– Collect a percentage of sales revenue in fees, ranging from 10% to 25%– Earn a 5% CSA fee for Software Assurance renewals
• Diversify and Expand Your Business– Great opportunity to cross-sell Microsoft Dynamics CRM
Eligibility– Enroll in the Microsoft Partner Program– Sign the Software Advisor fee addendum– Pass the required exams to attain certification on Microsoft Dynamics CRM– Be involved in the pre-sales assessment and recommendation process with a
customer– Serve as the primary post-sales Microsoft Dynamics CRM implementation service
partner for that customer
Microsoft Partner Support
Partner Sales Tools
Marketing
Advertising
Sales and Consulting Support
Customer and Partner Support
Partner Sales Tools
• Customer Presentations• Product Brochures• Fact Sheets• Events• PR
Awareness
Comprehensive tools to support you throughout the customer lifecycle
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
Sales and Consulting Support
• Executive Briefing Centers for strategic deals:– Place for Microsoft's enterprise customer CXOs to meet executives &
connect with Microsoft
– Vehicle for building executive relationships with customers and partners
– Located in Redmond (USA), Copenhagen (Denmark), Munich (Germany)
and Thames Valley (UK)
• Microsoft Technology Centers – 14 worldwide locations
• Microsoft Solution Sales and Technical Sales resources
• MBS Deluxe Support for customers
• Extensive partner support plans
Microsoft Partner Program (MSPP)
Gold Certified
Certified
Supporting Your Business!• Extend your market reach by leveraging MSPP assets to
build revenue, sales momentum and market differentiation:
― Associate the Microsoft brand with your company― Gain a competitive edge by attaining the Microsoft
Business Solutions Competency
• Reduce your operating costs using valuable software, training and support resources such as:
― MSPP marketing resources― Not-for-distribution software licenses ― Partner Learning Center online courses ― Pre- and post-sales technical support
• Deliver innovative solutions that help you and your customers realize their full business potential with:
― Microsoft Account Engagement― Visibility to the Microsoft technology roadmap ― Access to a broad and global partner community
Microsoft Partner Program Benefits
• Partner logo reflects two levels of achievement:– Microsoft Partner Program level (Gold Certified, Certified)– Competencies achieved (MBS Competency, Business Intelligence Competency,
etc.)
• Retains Microsoft affiliation and Microsoft Business Solutions identity
• Adds differentiation based on program level
Sample logo for a Microsoft Certified Partner who has achieved the Microsoft Business Solutions Competency
Example of Benefit – Use of Microsoft Partner Logo
MSPP – Helping Grow Your BusinessRegistered Certified Gold CertifiedPartner Marketing Center Partner Marketing Center Partner Marketing Center
Partner Solution Profiler Partner Solution Profiler Partner Solution Profiler
Partner Channel Builder Partner Channel Builder Partner Channel Builder
MS WW Partner Conf MS WW Partner Conf MS WW Partner Conf
MS Action Pack Additional SW Licenses
MS Matching Licensing Plan
Gold Certified Partner Logo
Partner Logo Builder
MS Partner Program Toolkits and Branch Plaques
Sales and Marketing Resource Guide for Partners
Windows Marketplace Windows Marketplace Windows Marketplace
Vertical Resource Center Vertical Resource Center Vertical Resource Center
Certified Partner Logo Partner Membership Center
Partner Logo Builder Business Value Advisor
Registered Certified Gold CertifiedPartner Learning Center Partner Learning Center Partner Learning Center
Virtual Labs Virtual Labs Virtual Labs
Online Tutorials Online Tutorials Online Tutorials
Local Partner Training Local Partner Training Certified Partner Logo
Microsoft Solution Selling for Partners Online
Microsoft Solution Selling for Partners Online
Microsoft Solution Selling for Partners Online
Partner Marketing Training Partner Marketing Training Partner Marketing Training
Partner Training and Readiness Resource Center
Expert Columns Expert Columns Expert Columns
Analyst Insight Analyst Insight Analyst Insight
MS Visual Studio’05 Pro w/MSDN Premium
MS Visual Studio’05 Team Ed for SD w/MSDN Premium
TechNet Subscription TechNet Subscription
Official MS Learning Products Courseware
MSPP – Helping Expand Your Skill Sets
MSPP – Helping Close More BusinessRegistered Certified Gold CertifiedTechnical Demo Toolkit Technical Demo Toolkit Technical Demo Toolkit
Phone-based Pre-Sales Tech Support Phone-based Pre-Sales Tech Support Phone-based Pre-Sales Tech Support
MS LicenseWise Quote Configurator MS LicenseWise Quote Configurator MS LicenseWise Quote Configurator
Technical Sales Assistance Technical Sales Assistance Technical Sales Assistance
Competitive Selling Resources Competitive Selling Resources Competitive Selling Resources
eCompany Store eCompany Store
Demo Showcase for People-Ready Business
Demo Showcase for People-Ready Business
MS Financing MS Financing MS Financing
MS Partner Licensing Advisor MS Partner Licensing Advisor
MSPP – Helping Support Your CustomersRegistered Certified Gold Certified
MS Services Partner Advantage
Technical Service Advisor
Business-Critical Phone Support Business-Critical Phone Support Business-Critical Phone Support
Issue Resolution Issue Resolution
MS Managed Newsgroups MS Managed Newsgroups MS Managed Newsgroups
5-Pack Pro Support Incidents 5-Pack Pro Support Incidents
Customer Satisfaction Index Customer Satisfaction Index
Online Concierge Online Concierge Online Concierge
Next Steps You Can Take
•Become a Microsoft Partner•Get MBS Certified•Enroll in CSA Program•Learn more about Dynamics CRM
Value-Added Reseller
•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 Certified•Learn more about Dynamics CRM•Profile yourself in Partner Solution Profiler•Introduce yourself to a Developer Evangelist
Independent Software Vendor
• Become a Microsoft Partner• Get MBS certification or
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
•Become a Microsoft Partner•Learn more about Dynamics CRM•Profile yourself in Partner Solution Profiler
System Builder
•Become a Microsoft Partner•Learn more about Dynamics CRM•Profile yourself in Partner Solution Profiler
Small Business Specialist
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/
• Join the partner program– https://partner.microsoft.com/US/Partner
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
DISCUSSION
