DAXR Overview

Microsoft Confidential—Internal Use Only

Primary Business Challenges

CustomerCentricity

Multichannel Engagement

Asset Productivity

Service excellence

Increased traffic and global reach

Strong online presence

Connected channels for

multiple options

Visibility into costs, margins, and

expensesChanging customer demand

Connected customer experience

Tight inventory control

Maximizing current assets

Product availability

Challenge: Customer Centricity

Achieve timely detection of changing customer demand.

Give staff real-time visibility into all inventory.

Provide staff “one view” of each customer.

Help minimize service costs with self-service options.

Differentiate your company with a refined product mix.

CUSTOMER CENTRICITY

ASSET PRODUCTIVITY

MULTICHANNEL ENGAGEMENT

Challenge: Asset Productivity

Prioritize investments that help maximize assets.

Improve inventory control to decrease carrying costs.

Provide superior financial and accounting tools.

Provide role-based visibility into costs and margins.

Manage cash flow with precision and improve credit status.

CUSTOMER CENTRICITY

ASSET PRODUCTIVITY

MULTICHANNEL ENGAGEMENT

Challenge: Multichannel Engagement

Leverage both online and in-store channels for growth.

Strengthen Web presence to meet new customer demands.

Expand internationally with true global functionality.

Offer and track goods across multiple outlets.

Support any combination of online and in-store services.

CUSTOMER CENTRICITY

ASSET PRODUCTIVITY

MULTICHANNEL ENGAGEMENT

Retail pain points

Margin

Demand Volatility

On-shelf availability

Cross-channel

operations

SKU proliferatio

n Speed to market

Manage the extended

Supply Chain

Reliable Information

Warehouse & Transportation - Replenishment & Return

Financial Management - MerchandisingStore Management - Customer Service

Multi-Channel Enablement

Microsoft End-to-End Retail SolutionSales to Supply

Supply Chain Demand Chain

Corporate

Manufacturers

Consumer

Warehouse StoreDistribution Center

Connected People | Connected Insight | Connected Customer Relationships

Microsoft Dynamics for Retail POS Role-based User ExperiencePayment Service for Microsoft DynamicsMicrosoft product and technology integration

Microsoft Dynamics for Retail HQ Advanced supply chain managementStore ManagementPromotion ManagementAdvanced price calculation

Microsoft Dynamics AX 2009 Multi-country/currencyRole Centers & Enterprise PortalWorkflow & AlertsScalable and Adaptable

Mu

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Microsoft Dynamics AX for Retail

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Enterprise PortalSCMBusiness

Analysis

FinancialManageme

nt

Human Resource

Management

CRM

Microsoft Dynamics AX Core Functionality

Microsoft Dynamics AX for Retail POS

Transaction and UI

Management

Payment Processing

Real-Time Customer Updates

Role-Tailored UI and Security

Real-Time Loyalty Updates

Global Returns

Microsoft Dynamics AX for Retail Headquarters 

Store Systems

Statement Settings

Microsoft Dynamics AX

POS Integration

Item/Shelf Labelling

Retail Configuration

and Store Management

Hardware Configuration

Space Management

Logistics

WarehouseDistribution

Marketing

Loyalty Program

Retail Sales Data

WarehousePromotions Pricing and

DiscountingGlobal Voucher Customer Detail

Merchandising

Replenishment

Assortment Managemen

t

Pricing &Offer

ManagementBuyer’s Push

Mult

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Dynamics AX for Retail LaunchTimeline – Launch for 38 countries in 2010

Launch Dynamics AX for Retail – August 2010

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

Other Countries – Normal PLLP applies

Rich Ecosystem of Retail PartnersMigration from Microsoft Dynamics legacy retail solutionsLong-term investment & supportCustomer Momentum – 18 significant deals closed prior to launch

Microsoft Stores are using DAXR

Possible Architecture – Big Picture

HeadquarterAX

Store AX Retail POS

Store AX Retail POS

Retail POS

... Store AX Retail POS

Store AX Retail POS

Retail POS...

Retail Concept – Store Groups

Store 21 is a big Store in Region 2Store 10 is a small Store in Region 1

Retail Concept - Staff

Retail Concept – Item Hierarchy

Retail Concept – Special Groups

Special Group Italy

Special Group White Wine

Special Group White Wine

Special group France

Retail Concept – Multiple Bar Codes

Item Number: 123Soda 33 clUnit: Bottle

Bar code 4005808856060Soda 33 cl

Unit: 6 Pack

Bar code 4005800001253Soda 33 clUnit: Bottle

Bar code 4005800001192Soda 33 clUnit: Bottle

Retail Concept – Variant Groups

Retail Concept – Active Price

Active (Standard) Price

Retail Concept – Periodic Discounts

Periodic Discount

Offers

Retail Concept – Allocation Replenishment

• Cross Docking

Purchase Order

• Buyers Push

Items in General

Warehouse

Transfer Order

Transfer Order

One End-to-End Solution

Set-up, ConfiguationItem managementPrices, OffersEnd-of-Day Procedure

Dynamics AX for Retail

Connection with Retail Store Connect

Retail POS

Retail POS

Retail POS

Retail POS

Retail Store

Connect

Retail Store

Connect

Retail Store

Connect

Retail Store

Connect

Retail Concept – End of Day/Shift

FinanceCustomer

transactionsInventory

transactions

StatementDynamics AX for Retail

Inventory Update

Dynamics AX for Retail

Retail POS Retail Sales

•Sales header•Sales lines•Payment lines•Banked Tender Trans•Tender Declaration Trans

•Variant trans•Order Invoice Trans•Loyalty Point Trans•Invent trans•Infocode trans

Retail POS - Product Focus

POS always up and running Resilient design and architectureDatabase on the POS

Right Data on right time at right placeComplex data structureOptimised posting routines

FunctionalityIn line with the customers and partners need

Point of SalePoint of Sale

Touch Screen OPOS supportKeyboard Support

Multiple Interface LayoutsSamples includedUser definableAny Screen size

Multiple LanguagesOn buttonsBy Staff

Multiple HardwareOPOS DriversUser definable

Graphics supportOn ButtonsOn Items

Multiple paymentsIn CurrencyBy Cards (localization)

Retail POSRetail POS

POS Service : Payment ServiceDelivered out of the box

Accept variety of payment types on-premise and online No integration requiredSupported and maintained by Microsoft

Reducing costs of paymentNo 3rd party license or enhancementDelivered 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 paymentsEnables mix&match - to use the right payment provider for the right channel

AvailabilityAvailable in a few countries initially and will get extended to APAC in due courseAvailable for APAC extension

Solution Capabilities Key Scenarios

Complete store and POS terminal managementStores, Terminals, Staff

Pricing and Promotions managementLocation, date & customer specific pricingPromotions and discounts

Inventory managementItems, Groups, Hierarchies, barcodes, variantsInventory transfers, replenishment, cross docking

Customer managementCreate, manage, track customers & purchasesPoints based loyalty schemes

Online Services – Payments and CommerceReal time (synchronous) workflows

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• 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

Complete Store Management & POS Integration

Pricing/Promotions

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• 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

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• 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.

Supply Chain Extensions

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• 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

Loyalty Schemes

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• 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.

Transaction Services

Commerce Service for Microsoft DynamicsStrenghten customer value prop

Extending sales presense with additional channel(s)Dedicated online storefront(s)Horizontal or Vertical Marketplaces and auction sitesEnables ‘online merchandising’ Out of the box no need for deep integration projects Basic storefront out of the boxAdvanced ISV solutions availableFully integrated with Payment services

Availability• Available only in US initially

Value DeliveredLower TCO Solves the problem of ComplexityEliminates loss of time created by redundant data entry in disparate systemsMore 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

Hardware RequirementsPOS

1.4 Ghz Processor (min), 2 Ghz or higher recommended1 GB RAM (min), 2 GB RAM recommended2 GB of hard disk spaceSuper VGA (1024 x 768) or higher resolution monitor or Touch Screen monitorMicrosoft Mouse or compatible pointing deviceOPOS compatible peripherals – scanner, receipt printers, MSR, cash drawer, PIN Pad, Sig Cap, Line Display, Scales

Store Connect / Transaction Service – same as above

MS Dynamics Retail Customers

© 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.