Stories of Invention

Scott Cook

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Revolutionize Peoples’ Lives

Our Mission

Changes so profound customers can’timagine going back to the old way

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The QuickBooks Story

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Challenges in the QuickBooks Launch

Unknown name Higher price...2X the market leader Tiny feature set…less than 1/2 the features Bad advertising

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Challenges in the QuickBooks Launch

Unknown name Higher price...2X the market leader Tiny feature set…less than 1/2 the features Bad advertising Bugs Vanishing data Tech support hell

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% DOS Unit Volume

QuickBooks LaunchShare of Retail Sales, 1992-93

Pacioli DacEasy

OtherPeachtree

70%

60%

50%

40%

30%

20%

10%

0%JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

QuickBooksQuickBooks

Sh

are

of

Reta

il S

ale

s

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The Essence of the Invention

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The Customer ProblemMost small firms hate& can’t do debit/creditaccounting

Our Solution: QuickBooksThe first accountingsoftware with no debits orcredits

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Find an ImportantCustomer Problem

that’s Unsolved

SolveIt Well

Customer Driven Invention

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The Customer ProblemMost small firms hate& can’t dodebit/creditaccounting

Our Solution: QuickBooksThe first accountingsoftware with no debits orcredits

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Employees

Customers

Shareholders

What Drives Success…Our View

• High-performing org• Great place to work

• Delight so they buy more & tell friends• Invent better ways to live

• Profitable growth• Big successful businesses

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Find an ImportantCustomer Problem

that’s Unsolved

SolveIt Well

Customer Driven Invention

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Three mindsets had to change

That accounting was the areawe should address

That POS is complex andcustom installed by VARs for$4,000

That Intuit sells software

The QB Point of Sale Story

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Two Versions of QuickBooksPoint of Sale

Software Only - $799

Receipt Printer

Cash Drawer

Bar CodeScanner

Credit Card Swipe

Hardware + Software - $1499

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Results: Nation’s #1 sellingPOS system among smallretailers

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Two Keys to Customer Driven Innovation

The mindset most in need ofchange is likely your own

The key to mindset change is tostudy customers

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The Barrier to Mindset Change

“Empathy is not just about walking inanother’s shoes...first you must removeyour own shoes.”

-- Indian proverb

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“Empathy is not just about walking inanother’s shoes...first you must removeyour own shoes.”

-- Indian proverb

“Before you criticize someone, you shouldwalk a mile in their shoes. That way,when you criticize them, you’re a mileaway and you have their shoes.”

-- Unknown

The Barrier to Mindset Change

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Victoria’s Secret

Action: Follow-me-home…to the lingerie drawerDiscovery: Missing 5/7ths of usage as sexy underwearisn’t thought comfortable

New offering: Body by Victoria…seamless underwear Result: Growth rate doubled

victoriassecret.com

Situation: Share flat at just over 20%

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The Key to Customer Driven Innovation

The mindset most in need ofchange is likely your own

The key to mindset change is tostudy customers

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Developers Financial InstitutionsVisa/MC/AmEx

IndustryPartners

Customers

Accountants

Mid-SizedBusinesses

Federal & State Government

Startup

OFX

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What’s Driving Customers Now

Return ToSimplicity

Right For Me…

Right Out Of The Box

On Demand IsIn Demand

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23 September 15, 20042323

Return ToSimplicity

Right For Me…

Right Out Of The Box

On Demand IsIn Demand

What’s Driving Customers Now

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2003 edition

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2004 edition

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Results

Leaps in customer ratings

Driving TurboTax volume gains

While leading competitor shrinks

FYTD 2004 2005 GainTurboTax Web 69 78 + 9 points

First time users 48 71 +23 points

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After – Three Step Process

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Simplicity In Many Businesses

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Right For Me…

Right Out Of The Box

Return ToSimplicity

On Demand IsIn Demand

What’s Driving Customers Now

3636

Inc’s Fastest Growing Business, 2003

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QuickBooks Enterprise Solutions

Priced at $3,500a fraction of competitors’ cost

Aug 03

83% Unit Growth RateFY04

Jan 05

QB EnterpriseRevenues

Rev

enue

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Developers Financial InstitutionsVisa/MC/AmEx

IndustryPartners

Customers

Accountants

Mid-SizedBusinesses

Federal & State Government

Startup

OFX

39 September 15, 20043939

On Demand IsIn Demand

Right For Me…

Right Out Of The Box

Return ToSimplicity

What’s Driving Customers Now

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Intuit Hosts for 4 Million Customers

1999 2000 2001 2002 2003 2004

0

Reven

ue

Intuit ASPRevenue

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Return ToSimplicity

Right For Me…

Right Out Of The Box

On Demand IsIn Demand

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What’s Driving Customers Now

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The QuickBase Story

HostedFlexible

“Database”

forSmall Business

Technology Out

EasyFast

Team Workflow

forCorporate Workgroups

Customer In

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Team Workflow for Corporate Workgroups

“Tivo and QuickBase… neither has ever let me down!”-- Strategic Planning Lead, Fortune 100 Financial Services Company

Project Management

Sales and Marketing

Customer Support

Finance and Treasury

Product Development

Quality Assurance

Operations

HR and Training

Workgroups Manufacturing

High Tech

Telecommunications

Airlines

Real Estate

Aerospace & Defense

Beverages

Transport & Logistics

Banks

Healthcare

Entertainment

Retail

Builders

Pharmaceuticals

Temporary Services

Apparel

Industries

24 of the Fortune 100, including Sprint, Bank of America

Top accounts average over 1000 users, and manage over60 workflows

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Revolutionize Peoples’ Lives

Our Mission

Changes so profound customers can’timagine going back to the old way

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Continuing Invention

47 September 15, 200447

Changes so profound customers can’timagine going back to the old way