INDUSTRIALIZING SALES EXECUTION – BEST PRACTICE
Mike Slater
COO – EMEA North
February 10, 2016
© 2015 Software AG. All rights reserved
CAPITAL MARKET DAY 2016
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This presentation includes forward-looking statements based on the beliefs of Software AG management.
Such statements reflect current views of Software AG with respect to future events
and results and are subject to risks and uncertainties. Actual results may vary materially from those
projected here, due to factors including changes in general economic and business conditions, changes in
currency exchange, the introduction of competing products, lack of market acceptance
of new products, services or technologies and changes in business strategy. Software AG does not intend
or assume any obligation to update these forward-looking statements.
This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way
securities of Software AG or any of the companies that are members of the Group at present or in the
future, nor does it form part of such an offer and it should not be understood as such. This presentation
does not constitute an offer of sale of securities in the United States of America. Securities may not be
offered or sold in the United States of America without registration or exemption from registration in
accordance with the U.S. Securities‘ Act of 1933 in its currently valid form.
© 2015 Software AG. All rights reserved.
SAFE-HARBOR-STATEMENT
Independent Federation Layer Nov 2015
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WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING
Alliance Boots Deal 2013 (ANZAG)
Deal 2015
INDEPENDENT
FEDERATION
LAYER
WBA BOUGHT “IT INDEPENDENCE”
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WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING
PROCESS
MESSAGING BPM MDM
IN-MEMORY DATA FABRIC
BUSINESS EVENT PROCESSING
IT PLANNING &
PORTFOLIO
MANAGEMENT
SOA
GOVERNANCE
CENTRASITE
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• WebMethods
– ESB – The backbone of communications for the Federation Layer to integrate all appropriate IT systems/services, as
well as, future acquisitions into WBA – (also includes process execution)
– One Data – Master Data Management to enable the Federation Layer to become one source of truth for information in
WBA over time; the long term memory of the layer
– SOA Governance (Centrasite) – Ensuring the Federation Layer is used in the most effective way and can be controlled,
governed and audited – acting as the “police force” for integration
• ARIS – Enables the design, simulation and deployment of all business processes to drive all relevant
functions at optimal cost
• Terracotta – Gives the Federation Layer a real-time memory across different technology functions to store,
access and action information critical for intra-day operations.
• Apama – The Federation Layer’s brain for processing business and IT events across all relevant systems
to make smart decisions and drive automated processes
• Alfabet – IT Portfolio management and planning to prioritise and govern the new IT estate
© 2015 Software AG. All rights reserved.
WBA INDEPENDENT FEDERATION LAYER COMPONENTS OF THE OFFERING
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HIGH LEVEL REFERENCE ARCHITECTURE
Previously agreed values.. (at risk without the Independent Federation Layer) WBA and SAG collaboration has produced a set of ratified technical and business areas of benefit
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Where the benefits stem from
Improving Productivity, Accelerating Application Development
• Lower Levels of Effort per Implementation/Project
• Reuse is a Component of Increased Productivity
Reducing Application Maintenance Costs
• Lower Levels of Effort per Planned or Unplanned Maintenance Requirements
• Reuse is a Significant Contributor to Lower Maintenance Levels of Effort
Improving Infrastructure Stability
• Unified Development Strategy Facilitates Agile Development with Standardized Staff Training & Skill Requirements + Lower Hardware Costs
• More Reliable, Flexible & Scalable with Less Down Time & Faster Issue Resolution
Providing Real-Time, End-to-End Supply Chain Visibility
• Mitigates Risk of Current Revenue Loss + Future Revenue Potential
• Saves on Inventory Costs
• Reduces Lead Time Requirements & Improves Supplier Management
Optimizing Application Portfolio, Lowering OpEx, Improving CapEx Effectiveness
• Eliminate Legacy Applications, Consolidate & Rationalize Redundancies
• Align Global Responsibility for End-to-End Activities with Direct Link to Measurable Business Performance
20% Productivity Improvement
20% More Reuse, Lower Maintenance Effort
2.5% Lower OPEX
1% Inventory Cost Reduction
Business Case Model – where the benefits come from at WBA (Applying the AH benefits rates achieved to the WBA usage numbers)
Supply Chain Integration
Benefits >100m
2. Additional possible benefits – shared and
agreed with appropriate WBA staff
Application Portfolio Optimisation Benefits
>50m
WACC used for cost of goods held = 10% (normally higher in other industries so conservative estimates)
Gartner rates show higher values – we have used fractions of the Gartner numbers here and ignored year 1 benefits
Key Assumptions
Independent Federation
Layer
B
>10m
>10m
>10m
1. Data Orchestration, Mediation & Governance
Benefits
Data Orchestration, Mediation & Governance project velocity at LOW expectation rates (WBA ratified)
Productivity improvement = 20% Low project velocity
Reuse = 20% Low project velocity
Maintenance improvement = 20% Low project velocity
Key Assumptions (AH achieved rates)
Middleware
Consolidation Benefits ~10m
Estimates calculated with WBA architects – assume no year 1 benefits and non-complete replacement within 5 years 26 Iterations
of Business Case
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WIN DATA
© 2016 Software AG. All rights reserved.
FY 2015 – ALL OPPORTUNITIES, > €500K, WORLDWIDE
Note: This data based on SAMS and includes deals > €500k, worldwide.
Deals won WITHOUT BVEinfluence
Deals won WITH BVEinfluence
33%
76% 87% 105%
Larger
Deal Size
15% 42%
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€ 0
€ 200.000
€ 400.000
€ 600.000
€ 800.000
€ 1.000.000
€ 1.200.000
United Kingdom Germany South Africa Nordics
Multi-product wins
Single product wins
MULTI-PRODUCT DEALS V’S SINGLE PRODUCT DEALS
© 2015 Software AG. All rights reserved.
AVERAGE DEAL SIZE OVER LAST 3 YEARS..
Multi-Product Deals are 5 x the Size WE HARDLY
EVER LOSE A MULTI-
PRODUCT DEAL..
WIN RATIO
CLOSE TO 1:1 INSTEAD
OF 1:3
J
J
J
J
J
J
J
J
J
J
J
j
j
Group Average
all Deals
Average
Deal Size
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GO FROM RED OCEAN TO BLUE OCEAN STRATEGY
SINGLE PRODUCT SELLING
FEATURE-FUNCTION
COMMODITY PRICING
MANY (NICHE) PLAYERS
BLIND RFP RESPONSE
POOR WIN RATIO
SMALL DEAL SIZE
SOFTWARE AG SWEET-SPOTS
BUSINESS CASE APPROACH
CLOSE TO 100% WIN RATIO!
ON AVERAGE 5 X THE DEAL SIZE!
MULTI-PRODUCT SELLING
NO ONE CAN TOUCH US
CUSTOMER & INDUSTRY EXPERTISE
INDUSTRIALIZING
© 2015 Software AG. All rights reserved.
SALES EXECUTION
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Q&A
© 2015 Software AG. All rights reserved.
16 | © 2015 Software AG. All rights reserved.
Investor Relations
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