Delivering Vertical Solutions to a Global Market

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1 PARTNERSHIP Microsoft Dynamics AX Microsoft Dynamics Industry Solutions Delivering Vertical Solutions to a Global Market White Paper July https://mbs.microsoft.com/partnersource/products/axapta/industrybuilder. htm

2 Table of Contents Introduction... 3 About Microsoft Dynamics AX... 3 Extending Partner Success with Microsoft Dynamics Industry Solutions... 4 Vertical Strategy Drives Partner Profitability... 5 The Rigorous Microsoft Dynamics Industry Solutions Model... 5 Developing Industry Solutions... 5 Quality Review... 5 Global Deployment... 6 Product Support... 6 Revenue Sharing... 6 Reselling and Training... 6 Microsoft Dynamics Industry Solutions Today... 6 Certified for Microsoft Dynamics... 7 Selling Microsoft Dynamics Industry Solutions... 7 MICROSOFT DYNAMICS INDUSTRY SOLUTIONS: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET 2

3 Partner Confidential Introduction Partnership has always been the cornerstone of the Microsoft DynamicsTM business model, which provides the basis for effective collaboration between Microsoft and its partners to deliver superior value to customers. Microsoft provides the platform, development environment, financial resources, customer connections, and supply chain needed to create integrated, adaptable business management solutions. Independent software vendors (ISVs) and value-added resellers (VARs) build on Microsoft core functionality to deliver industry-specific solutions that help customers get a high return on their Microsoft Dynamics investment. To accelerate the momentum of these successful partnerships, the Microsoft Dynamics AX product team launched the Industry Builder Initiative in Because of its success, Microsoft decided to take the program to the next level and, in June 2007, renamed the initiative the Microsoft Dynamics Industry Solutions (MDIS) program. This exciting, redesigned program capitalizes on partner expertise to develop industry-specific solutions that extend Microsoft Dynamics AX core functionality to a number of vertical markets and specific industries. These industry solutions can significantly enhance the value proposition of Microsoft Dynamics AX for mid-sized and larger global customers and expand sales and marketing opportunities for Microsoft and its partners. In addition, the MDIS program enables Microsoft and its partners to compete effectively with SAP and Oracle in these markets. The purpose of this paper is to give VARs a good understanding of the MDIS program and how it can help them grow. It begins with brief background of Microsoft Dynamics AX, and then moves into a detailed description of the MDIS program. It also describes the potential market opportunities for VARs that deliver vertical solutions, as well as the benefits of these solutions to Microsoft customers. The paper concludes with information about how Microsoft VARs can participate in the MDIS program. About Microsoft Dynamics AX Microsoft Dynamics AX 4.0 is an integrated, adaptable business management solution with comprehensive features for automating and streamlining financial, customer relationship management, and supply chain processes. Microsoft Dynamics AX works like and with familiar Microsoft software such as the Microsoft Office system, and with Microsoft technologies such as Microsoft SQL Server TM, so customers can easily deploy and use the software. It is currently available in more than 30 countries with an installed base of more than 7,000 customers around the world. Microsoft Dynamics AX is delivered by a global network of Microsoft Certified Partners that provide customers with the local, personalized service they need from planning and implementation to customization and ongoing support and education to meet the specific requirements of their business. Microsoft Dynamics AX offers four critical benefits that differentiate it from other business management solutions: 3 A flexible architecture for customization and extensibility. Microsoft Dynamics AX can easily be customized by Microsoft partners to meet the needs of a wide range of customers. Today, there are more than 450 partner solutions for Microsoft Dynamics AX. Customers can adapt and upgrade their Microsoft Dynamics AX solutions over time with minimal risk and expense. MICROSOFT DYNAMICS INDUSTRY BUILDER: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET

4 Deep Microsoft integration. Microsoft Dynamics AX is built to work with Microsoft technologies such as Windows Server 2003, Microsoft SQL Server 2005, and Microsoft Windows SharePoint Services. Customers can easily integrate Microsoft Dynamics AX with their existing Microsoft systems and enjoy a smooth deployment and low ownership costs. This integration also helps ensure smooth access to data across systems from the familiar Microsoft Office interface, for improved employee productivity and increased business insight. Performance and enhanced security features. Microsoft Dynamics AX includes tight administrative control over sensitive data through features such as Windows authentication, performance enhancements that increase administrator efficiency and database reliability, and extensive documentation. Global reach and international support. Microsoft Dynamics AX has multi-site, multilanguage, and multicurrency capabilities for more than 30 countries, as well as local tax, regulatory, and market requirements. Extending Partner Success with Microsoft Dynamics Industry Solutions The new Microsoft Dynamics Industry Solutions are designed to help partners be more competitive and provide additional revenue potential. The program enables select ISVs to work collaboratively with Microsoft to develop top-quality industry solutions for Microsoft Dynamics AX. While the ISV retains intellectual property rights, all industry solutions are branded as Microsoft products, supported by the Microsoft Dynamics AX Global Product Team, and backed by Microsoft Dynamics Support Services. The MDIS program offers a three-pronged value proposition: Microsoft VAR partners can expand their customer base and increase revenue by licensing qualified vertical solutions. With the ability to provide vertical industry solutions as part of a total Microsoft Dynamics AX business offering, VARs can serve a more diverse set of customers. VARs can also deliver all the functionality their customers require in one streamlined transaction. That adds up to greater sales for VARs and faster implementation for customers. Reliable products that are easy to deploy and simple to support help create a net increase in customer satisfaction and loyalty. Microsoft customers can get a complete, high-quality solution in a simple and direct way and backed by Microsoft. All MDIS solutions are developed in compliance with Microsoft quality and performance standards to help ensure that customers get the most advanced, stable, and innovative solutions. Customers also benefit from a single point of contact for implementation and support. Microsoft is also the single point of contact for contracts and will step in and take ownership of the intellectual property (IP) if the ISV should go into bankruptcy. Microsoft Dynamics Industry Solutions ISV partners can enjoy a fast time-to-market and high adoption rate for their solutions. To facilitate faster solution development at a lower cost, Microsoft enables MDIS ISVs to capitalize on Microsoft Dynamics AX research and development. All industry solutions are brought to market through the extensive Microsoft sales channel, which can expand the ISV s presence into all the countries where Microsoft Dynamics AX is sold. MICROSOFT DYNAMICS INDUSTRY SOLUTIONS: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET 4

5 Partner Confidential Vertical Strategy Drives Partner Profitability Vertical solutions that support unique business processes of specific industries have never been in greater demand. In fact, much of the perceived value of business solutions has shifted from horizontal enterprise resource planning (ERP) products to vertical solutions. No one is better suited to deliver these industry-focused business solutions than Microsoft Dynamics AX partners. ISVs have the deep knowledge of customer needs and business processes, and VARs have the technical knowledge and support needed to deliver and deploy specialized business solutions. Through Microsoft Dynamics Industry Solutions, Microsoft can help partners capitalize on new vertical market opportunities. MDIS has several key advantages over the original Industry Builder program: ISVs are more tightly integrated in the Microsoft Dynamics AX development process. ISVs align their development efforts and product road maps with the Microsoft Dynamics AX road maps to help ensure coordinated product advances and simultaneous product launches. Microsoft performs fulfillment and provides a single contract for VARs. Industry Solutions reside in a Microsoft-managed layer of Microsoft Dynamics AX. Microsoft will include industry solutions in future Virtual PC (VPC) images. The Rigorous Microsoft Dynamics Industry Solutions Model Participating MDIS ISVs have demonstrated that they have the necessary business qualifications and product development methodologies to meet the high standards of Microsoft. Microsoft conducts detailed business reviews of the ISV partners, assessing business stability and fiscal accountability, solution development process, vertical domain knowledge, and readiness to provide global support. The following sections outline the key factors of the MDIS program. Developing Industry Solutions ISVs participating in the MDIS program work closely with the Microsoft Dynamics AX development team to scope, develop, test, and conduct technical reviews of their applications. Quality Review All Microsoft Dynamics Industry Solutions are compliant with Microsoft quality specifications, which are determined by an independent third party. This review assesses the product code, its support for performance, and overall Microsoft stack compliance. It also assesses the processes around sustained engineering, product management, and support to make sure that they are at the highest level possible, provide consistency, and leverage Microsoft best practices. 5 MICROSOFT DYNAMICS INDUSTRY BUILDER: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET

6 Global Deployment To help ensure a smooth product experience for Microsoft Dynamics AX customers, industry solutions deployment harmonizes with Microsoft Dynamics AX deployment. The aim is to simultaneously release Microsoft Dynamics Industry Solutions and Microsoft Dynamics AX 5.0. Product Support The MDIS business model provides a single support point of contact for a customer s entire Microsoft Dynamics AX solution. Microsoft Dynamics Support Services supports both Microsoft Dynamics AX and industry solutions under its Deluxe Support agreement. Revenue Sharing Revenue from the sale of any ISV industry solution is shared between participating parties. Upon sale of an industry solution, sales revenue is split between the ISV and Microsoft after deduction of the reseller margin. In addition, Microsoft and the ISV divide all royalty payments from licensing and support. Reselling and Training Before a VAR can add an industry solution to its offerings, it must sign a non-disclosure and licensing agreements with the ISV. In addition, ISVs require partners to attend sales training (typically using Live Meeting) before receiving authorization to sell their solutions. Following the sales training, VARs typically take implementation training, which is classroom-style and usually takes five days (the VAR normally pays for the implementation training). Microsoft Dynamics Industry Solutions Today The Microsoft Dynamics Industry Solutions program has been greeted with enthusiasm by customers, who appreciate tailored business management solutions backed by Microsoft quality standards and technical support. Microsoft Dynamics AX has identified 14 vertical industries for its industry solutions (see below). Microsoft will expand this list of vertical markets as customers demand. Vertical Markets Aerospace and Defense High-Tech and Electronics Professional Services Apparel and Textiles Industrial Equipment Public Sector Automotive Life Sciences Retail Management Construction Metal Fabrication Wholesale and Distribution Consumer Packaged Goods Process Manufacturing Below are specific industry solutions developed to date, as well as solutions in development. MICROSOFT DYNAMICS INDUSTRY SOLUTIONS: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET 6

7 Partner Confidential Microsoft Dynamics Industry Solutions In-Market Solutions Consumer Driven Planning for Microsoft Dynamics AX Energy Financial Management for Microsoft Dynamics AX Field Services for Microsoft Dynamics AX Solutions in Development Automotive Supplier for Microsoft Dynamics AX Dealer Management System Apparel and Textiles Industrial Equipment Manufacturing for Microsoft Dynamics AX Process Industries for Microsoft Dynamics AX Professional Services for Microsoft Dynamics AX Retail Chain Manager for Microsoft Dynamics AX Supply Chain Execution for Microsoft Dynamics AX Certified for Microsoft Dynamics Microsoft offers a second vertical industry solutions program for partners called Certified for Microsoft Dynamics. Less rigorous than the Microsoft Dynamics Industry Solutions program, the Certified for Microsoft Dynamics program is designed to identify the top 500 ISV solutions that meet the highly specialized needs of particular industries. It gives partners another way to sell high-quality, Microsofttested solutions that work well with Microsoft Dynamics AX. A Certified for Microsoft Dynamics solution can help customers with their evaluation and selection process by identifying ISV solutions that have been tested by a third party to meet compatibility standards with Microsoft Dynamics software and that are being used by other customers in the marketplace. Selling Microsoft Dynamics Industry Solutions If you are a Microsoft Certified Partner or Microsoft Gold Certified Partner interested in learning more about the Microsoft Dynamics Industry Solutions program, contact your Microsoft Partner Account Manager (PAM). If you do not have a PAM, contact your Microsoft country or regional subsidiary office. The preparation sequence: Familiarize yourself with Microsoft Dynamics Industry Solutions: and https://mbs.microsoft.com/partnersource/products/axapta/industrybuilder. If you are interested in becoming an authorized reselling partner, contact the ISV and schedule the sales training. Please make sure that your PAM or other local Microsoft contact is aware of your participation. Following the sales training, consider becoming authorized to implement the industry solution by taking the appropriate ISV training. To determine your readiness to offer vertical solutions, visit the Partner Vertical Resource Center at https://partner.microsoft.com/global/vertical. 7 MICROSOFT DYNAMICS INDUSTRY BUILDER: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET

8 Microsoft Dynamics is a line of financial, customer relationship, and supply chain management solutions that help businesses work effectively. Delivered through a network of channel partners that provide specialized services, these integrated, adaptable business management solutions work like and with familiar Microsoft software to streamline processes across an entire business. U.S. and Canada Toll Free Worldwide The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, this document should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This White Paper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property. MICROSOFT DYNAMICS INDUSTRY SOLUTIONS: DELIVERING VERTICAL SOLUTIONS TO A GLOBAL MARKET 8

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