“Business Strategies of Microsoft

Dynamics”

Submitted To

Prof V.Sekhar
Submitted By
Group – 6, Marketing-B
Lokesh Mahajan (08PG168)

G Praneetha (08PG301)

Pavan Kumar Ghargi (08PG326)

Nupur Saxena (08PG321)

Sumanta Roy (08PG057)

Yogesh Patel (08PG070)

 Table of Contents
Product Line ............................................................................................................................... 3
Product Leadership: ................................................................................................................... 3
Core competency ....................................................................................................................... 4
Example of a product that will serve the business customers: Microsoft Dynamics............. 5
Microsoft Dynamics AX .................................................................................................... 5
Microsoft Dynamics CRM ................................................................................................. 5
Microsoft Dynamics GP .................................................................................................... 5
Product Benefits ......................................................................................................................... 6
Gain better business insight for rapid, effective decision-making ......................................... 6
Enable more productive people and processes ...................................................................... 6
Manage organizational growth and gain a competitive advantage ........................................ 6
Promotion................................................................................................................................... 6
How Microsoft organizes the B2B Process ............................................................................... 7
Customers‟ needs ................................................................................................................... 7
Microsoft‟s response .............................................................................................................. 8
Pricing of Microsoft Dynamics .................................................................................................. 8
What affects licensing costs? ................................................................................................. 8
Distribution channel for Microsoft Dynamics ........................................................................... 9
The Buying Process ............................................................................................................. 10
1. Find a partner ............................................................................................................... 10
2. Document the requirements ......................................................................................... 10
3. Choose a solution ......................................................................................................... 10
4. Launch the solution. ..................................................................................................... 10
Customer Relationship Management ....................................................................................... 11
A new standard in software development and support ........................................................ 12
Freedom of choice................................................................................................................ 12
Microsoft B2B Platform and Supply Chain ............................................................................. 13
The Microsoft Vendor Program ........................................................................................... 13
Program Highlights .............................................................................................................. 13

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Product Line

Microsoft software products are divided into eight main families. These include Windows,
Servers, Business Solutions, MSN, Office, Developer Tools, Games and Xbox, Windows
Mobile. The other software products and services are divided into four main categories.
These include Home and Entertainment, Hardware, Finance, Books and Training. Among
these end products, two operating segments, Client and Business Solutions, contributed to the
majority of the company‟s revenue. Client consists of premium edition operating systems,
including Windows XP Professional, Media Center Edition, Tablet PC Edition, and other
standard Windows operating systems, including Windows XP Home. Business Solutions
include Microsoft Office, Microsoft Project, Microsoft Visio, SharePoint Portal Server CAL,
Microsoft Live Meeting, One Note, Office Communication Server, Microsoft Dynamics AX,
Microsoft Dynamics CRM, Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft
Dynamics SL, Microsoft Dynamics Retail Management System, Microsoft Partner Program,
and Microsoft Office Small Business Accounting.

Product Leadership:

Microsoft has established itself as platform leader; it has provided technological foundation
on which other products, services and systems are built. Microsoft has become industry
powerhouse in software industry and world class innovator. Microsoft participates in a broad
range of competitive and evolving businesses in the software industry. They are transforming
into seven business: client (Windows), information worker business (Office), Business
Solutions (small to medium businesses), server and tools, MSN, and Home and
Entertainment (X-Box, PC gaming). Microsoft, the strategy was to focus on agility--to have
the products run on a number of different computing platforms. PowerPoint was created as a
new way to present overhead slides. Microsoft made the bet that people would be willing to
change the way they present information and launched PowerPoint into one of their most
successful applications. „You have to listen to your customers, but you also have to see
beyond what your customers do now to what they might do in the future‟ is the philosophy
adopted by Microsoft.

Microsoft Visual Studio is an Integrated Development Environment (IDE) from Microsoft. It

can be used to develop console and graphical user interface applications along with Windows
Forms applications, web sites, web applications, and web services in both native code

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together with managed code for all platforms supported by Microsoft Windows, Windows
Mobile, Windows CE, .NET Framework, .NET Compact Framework and Microsoft
Silverlight.

Microsoft's success at innovating business models equals its success in technology

innovation. Before Microsoft, there was no market for a company that did operating systems.
The business model to license operating systems was novel and helped to propel Microsoft to
success. According to Microsoft success is characterized by persistence: keep investing and
keep trying, learn to respond and then keep trying.

Core competency

Microsoft clearly recognizes their core competencies that bring them high revenue. In fact,
Microsoft provides a guide to earning competency, for their business partners, on their
website. These competencies are known as Microsoft Competencies. According to Microsoft,
the objectives of the Microsoft competencies are to help business partners differentiate their
skills and expertise to customers, extend their market reach, align their business with relevant
Microsoft marketing initiatives and form closer relationships with other partners. This is in
line with the concept of core competency. Although the Microsoft Competencies may not be
the core competencies of the company, they are closely linked as this is a strategy in which
Microsoft harmonize the activities of its business partners to itself. The end products in Client
and Business Solutions operating segments can be found in different market segments,
generating USD13,209M and USD14,488M in revenue respectively for the 2006 fiscal year
[3]. Thus, the core competences that drive these products provided access to wide variety of
market for the company. The perceived customer benefits of Microsoft products are primarily
connected (connecting people, processes and systems), productive (in managing business),
and flexible (in use of software). The key products that contribute to those customer benefits
are the operating systems and office tools which are driven by the core competencies. These
core competencies are complex and supported by the 15% of revenue Microsoft invested in
R&D. Thus it will be very difficult for competitors to imitate.

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Example of a product that will serve the business customers: Microsoft
Dynamics

Microsoft Dynamics is a line of familiar, adaptable enterprise resource planning (ERP) and
customer relationship management (CRM) solutions designed to meet almost any business
need and help your people make important business decisions confidently. Microsoft
Dynamics works like and with familiar Microsoft software—easing adoption and reducing
the risks in implementing a new solution. These solutions automate and streamline financial,
customer relationship, and supply chain processes in a way that can help you drive business
success.

Microsoft Dynamics AX

A comprehensive business-management solution that provides midsize and larger

organizations end-to-end, industry-specific functionality, Microsoft Dynamics AX also is
built to make it easier to do business across locations and countries. With Microsoft
Dynamics AX, you can be confident that your solution is relevant to the demands of your
industry and business.

Microsoft Dynamics CRM

Microsoft Dynamics CRM is a customer relationship management (CRM) solution that

provides the tools and capabilities needed to create and maintain a clear picture of customers,
from first contact through to purchase and post-sale. With sales, marketing, and customer
service modules, Microsoft Dynamics CRM delivers a fast, flexible, and affordable solution
that enables closer relationships with customers and helps you achieve new levels of
profitability.

Microsoft Dynamics GP

Microsoft Dynamics GP is a complete and scalable business-management solution that helps

growing and midsize organizations get up and running quickly while maximizing the
productivity of your people. It includes robust financial and operational functionality, such as
business intelligence, reporting, budgeting, and forecasting, so you can be confident that your
solution will adapt to the changing needs of your business

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Product Benefits

Gain better business insight for rapid, effective decision-making

 Gain real-time access to a common set of accurate business information and help your
business operate more efficiently.
 Erase boundaries between data silos and deliver the critical information needed by
executives and staff for effective decision-making.
 Better analyze project or contract profitability.
 Give employees quick insight into predefined views of data tailored to their jobs

Enable more productive people and processes

 Connect your people to the right processes, as well as to each other.

 Improve communication and collaboration and discover better ways to work together,
regardless of location.

 Automate common tasks and provide role-based access to information.

 Enable employees to work with tools they already know and understand, like
Microsoft Office Outlook and Excel.

Manage organizational growth and gain a competitive advantage

 Plan current and future capacity relative to projected growth.

 Retain existing customers and gain new ones by placing customers at the center of
your business.

 Rapidly respond to new trends and opportunities and identify shifts in purchasing
patterns.

 Extend access to business systems across your entire organization with role-based
functionality.

Promotion

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How Microsoft organizes the B2B Process

Customers’ needs

 Provide a personalized experience: “Treat me as if you know who I am (in the context
of the company I work for) and account for what Microsoft products we‟ve already
bought and installed, which products we‟re thinking of buying, which vertical
segment we‟re in and our attitude toward IT.”

 Provide a relevant experience: “Make it easy for me to access all information and
services I need to do business with Microsoft.”

 Provide a proactive experience: “Tell me when there is something you‟re doing that is
relevant to me.”

 Provide an educational experience: “Show me how your products can make our
company better, how to get the most out of your products, why IT matters and what
the Microsoft product roadmap looks like in detail.”

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  Provide a supportive experience: “Make it easy for us to contact you about our
specific needs and put us in touch with the right partners at the right time

Microsoft’s response

 Understanding what our customers needed from us and how we could meet those
needs online.

 Developing a value proposition and testing it with the target audience.

 Making design decisions based on continuous customer feedback.

 Incorporating a pilot phase to understand in depth how and if the offering was
meeting customer needs

Pricing of Microsoft Dynamics

At Microsoft, they call it licensing rather than pricing cost.

What affects licensing costs?

The costs to license and use business management technology vary greatly among
companies. The following factors have an immediate impact on the overall cost of your total
business solution:

 Business software components. The components needed are influenced by the type
of business you're in, along with the current and future software needs your company
might have.

 The number and type of people who will use the software. Factors to consider
include the size of your staff versus third parties (non-employees), the kind of tasks
they perform, and the software access that each person needs.

 How people access the software. Mode of access (rich client versus Web client,
mobile client, or other mode of access) will influence the license price. More
information on the different types of access licenses can be found in the

 The level of service that's right for your company. Depending on business and IT
staffing structure, one may choose varying degrees of service, training, and more.

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Overall, the price is determined by,

Microsoft Dynamics GP Software price

+ Implementation Services
+ Customization and Data Conversion Services (if required)
+ Training
+ Annual Support Plan
= Microsoft Dynamics GP Project Cost

Per User Cost:

First User Included in Foundation Pack $3,980.

1-10 Additional Users $3,980 per user

11-25 Additional Users $3,580 per user

26-50 Additional Users $3,385 per user

(Call for 50+ per users costs)

Distribution channel for Microsoft Dynamics

Microsoft Dynamics is a software package which is customised according to the customer

needs. It is developed once the needs of customer are completely understood. Hence it
requires Microsoft to understand the nature of business of the customer and the business
needs.

To understand the needs of customers Microsoft has appointed few Microsoft certified
business partners all over cities. They assist in ERP and CRM implementation. It is delivered
through a network of channel partners providing specialized services, this integrated,
adaptable business management solutions work like and with familiar Microsoft software to
streamline processes across an entire business.

Obtaining a new business management solution is a big and important project. The
customer‟s critical business data will reside within it. It will become part of everyday
business processes. Not only does your new solution have to meet customer current needs, it
also has to address your future goals. Certified Microsoft partners are available worldwide to
help companies of all sizes and industries select and implement the right business

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technology—and to provide support through future business change. To become certified,
they must prove expertise in Microsoft technology and in specific business areas, such as
financial, supply chain, or customer relationship management.

The Buying Process

1. Find a partner

It's important to find a consultant who you feel comfortable working with. Look for someone
who:

 Understands your local market and industry.

 Wants to involve you in the selection and implementation process.

 Has the necessary resources and proven experience.

2. Document the requirements

The consultant should provide a complete list of features required to support the processes
identified in the planning stage. This documentation, which should include a budget and
timeframe, helps give the project focus and set expectations. Microsoft Certified Partners
have helped launch hundreds of thousands of successful IT projects.

3. Choose a solution

The consultant map‟s the list of required features to the products they know. They can then
recommend a solution or solutions (software plus customizations) that match the needs of
your business. Microsoft Certified Partners are experts in our technology. In addition, many
of our partners have developed industry solutions and other specific functionality that is
integrated with Microsoft Dynamics products.

4. Launch the solution

After a thorough job in the previous steps, The Business is ready for a successful
implementation together with your partner. Microsoft Certified Partners can help to develop
and test customizations, interfaces, and data conversion tools; train end users; convert data;
and launch the system.

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 Microsoft customer
. certified
(end user)
partner

Supply Chain Management

Customer Relationship Management

The customer relationship management is done online as well as through this Microsoft
support personnel. These partners take care of the customer need and help them in successful
implementation. Microsoft has a dedicated team of customer service which helps customers
whenever the customer has a problem, they can contact through their Toll free No (1 800 11

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1100) or directly mail to connect@microsoft.com. These trade partners are the contact point
between Microsoft and customer, hence Microsoft appoints only those who are capable of
handling and maintaining.

Microsoft has also an annual maintenance contract for the dynamics, few services are
included in the total offering bundled with the product. At Microsoft, they understand how
important it is for business leaders to control their technology environments—and not to let
their technology environments control them.

That's why we have implemented the Business Ready Customer Care initiative. This
initiative is an example of the unyielding commitment that Microsoft has to its Microsoft
Dynamics customers. As a Microsoft Dynamics customer, you can be assured your solutions
will continue to be supported as your business grows and evolves.

A new standard in software development and support

With Business Ready Customer Care, Microsoft has established a new standard for customer
service by extending support for the Microsoft Dynamics line-of-business management
software solutions beyond industry practices—to a full ten years of extended product support.
customer gets the peace of mind you deserve through freedom of choice for product support,
increased product insight, and the ability to influence the future direction of your selected
product, as well as the assurance of a clear future for technology advances.

Freedom of choice

Extended product support equates to freedom of choice for your business. By enrolling in and
staying current with the Business Ready Enhancement Plan, you will have support options
that fit your needs ten years after the initial release of a product.

Even if you delay your upgrades, you will have the opportunity to access support services on
the version of software your company is using. And, if you need support beyond ten years,
custom support arrangements may be available for your business. By raising the bar with ten
years of support options, Microsoft provides you the choice to either continue with your
existing implementation or upgrade according to the timeline that's right for your business.

 Mainstream support—five years

 Extended support—five additional years custom support—beyond ten years

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  Self-support—ten years (available on CustomerSource, the personalized customer
Web site available to Microsoft Dynamics customers worldwide).

Microsoft B2B Platform and Supply Chain

The Microsoft Vendor Program

The Microsoft Vendor Program (MSVP) is the Microsoft preferred vendor program. It was
created to make it easy for Microsoft employees to work globally with a prequalified, select
group of vendors—and for vendors such as you to work with us. The objective is to make
working with Microsoft beneficial to all. The program is currently available in Belgium,
Canada, China, Denmark, France, Germany, Hong Kong, Ireland, Italy, MDCC, the
Netherlands, Norway, Spain, Sweden, Switzerland, Taiwan, the United Kingdom, and the
United States. In the future, the program will be available in other countries and regions
worldwide.

The goal of MSVP is simple: To enable new efficiencies for both Microsoft and vendors,
bringing new value to the relationship that we are building together.

Program Highlights

A primary purpose of MSVP is to define the way vendors do business with Microsoft,
including requirements and expectations, to create a clear, straight path to success. The
following are some key elements of MSVP:

 MSVP includes vendors of all kinds of goods and services.

 The program includes only vendors who are the best in providing their category.

 MSVP vendors are divided into two distinct levels—premier vendor and preferred
vendor—to provide a hierarchy of benefits and visibility to MSVP vendors.

 MSVP is committed to diversity, including exceeding government-mandated goals

and requiring MSVP vendors to share in this goal.

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