Striking Gold in Manufacturing and Resources

John BradleyIndustry Market Development ManagerManufacturing & Resources Industriesjbradley@microsoft.com

Today’s Conversation

• Microsoft’s Strategy in M&R– Forces Shaping the Industry and

Microsoft’s Response

• Partners in Action– Examples of Innovative Solutions– Cloud Computing …… why lead?

• Call to Action and Resources– Guidance on Next Steps

Industry and Partner Presence

WW Manufacturing and Resources

Win share in Tier 1 application space

Partner Led Solution Area Selling

Develop Microsoft Ecosystem that delivers business value to customers

Build scale through partners in Tier 1 applications

Strategy

Our Mission

Industries and Solution Areas

Sales & Services

Governance, Risk, Compliance

Business Insight

Sales & Service

Operations

Business Insight

Governance, Risk, Compliance

Sales & Service

Innovation/PLM

Digital Marketing

Business Insight

Operations

Sales & Service

Innovation/PLM

Business Insight

OperationsOperations

Governance, Risk, Compliance

Oil & Gas (Mining)

Power & UtilitiesDiscrete Process

M&R in AustraliaDiversity - No geographic concentrated regions (with exception of Perth for Resources)

Value to Economy $104.7B, Exports $88.4BManufacturing represents 9.4% of Australian GDP (down from 20% 25 years ago)

GDP % figures (last 20 years)Fin Services up 3.8 to 10.8

M&R - Mining up 2.7 to 7.7, Construction sector's up 1.1 to 7.4

''professional, scientific and technical services'‘ up 1.8 to 6.1

agriculture down 0.7 to 2.6 , manufacturing down 4.6 to 9.4 BUT both are producing more output

M&R accounts for 471 (47%) of the BRW Top 1000 companies in Australia

Convergence of IT and Operations– your opportunity

Control Systems, DCS and

Automated Equipment

Enterprise Asset

Management (EAM/SAM)

Shipping/Receiving

Materials Handling

Production Control / MES

SCADA and HMI

Quality Management

Laboratory Information

Management

Document Management

Regulatory Affairs EH&S

Business

Intelligence

and

Enterprise

Performance

Management

Plant

Operations

Customer Relationship

Management (CRM)

Product Lifecycle

Management (PLM)

Supply Chain

Management (SCM)

Enterprise Resource

Planning (ERP)

Plant Floor

Visibility

Enterprise

Mfg Visibility

Partners in Action:Example of Success Stories

OSIsoft Background

Founded in 1980Headquartered in San Leandro, CA; Offices around the globeRoughly 700 employees worldwideOver 20% of revenue invested in R&D14,000 Installed Sites, over 110 countries40% of Fortune 1000 process and manufacturing65% of Global 500 process and manufacturingProcess Manufacturing:

Utilities, O&G, Pharma, Mining, P&P, Facilities Management

Microsoft Global ISV, Alliance Partner (15 years)2009 / 2010 Partner of the Year Awards

Business Insight – physical assets

Why Build on Microsoft?Because of the Growing Role of MS Infrastructure in M&R

Functional Optimization

1980’s

Large Centralized Applications

MicrosoftWindows

ITEfficiency

1990’s

Smaller Centralized & Some Distributed

Applications

TechnologyStandardization

Data Historian

ProcessOptimization

Distributed Applications

Windows XP Office 95/2000

Real time DataIntegration

2000’s

IntegratedValue Chains

2007+

Modular“Best of Breed”

Real Time DataInfrastructure

Integrated Microsoft

Stack

Evolution of the Infrastructure

Areas of Focus

Partnering with Microsoft and OSIsoft

• Short Term– Consortia of SI & ISV delivering Business Insight

in M&R– Take advantage of existing opportunities– Sales and marketing Support (Microsoft Partner

Network)• Networking: Communities, Materials, Info,

Events

• Long Term– Don’t reinvent the wheel

• Use Microsoft’s existing plumbing – confidence, familiarity, install base

Partners in Action:Example of moving to the Cloud

Gcommerce Inc.

Industry Solutions in the Cloud SolutionPartner Name Customer Reference

GCommerce is a leading provider of Software-as-a-Service (SaaS) solutions designed to streamline distribution supply chain operations, and has implemented an award winning EDI solution in the Automotive Aftermarket

www.gcommerceinc.com

VIC is a transformative cloud based solution designed to streamline the non-stock/special order process between wholesalers and manufacturers.Coupled with real-time EDI, VIC delivers greater process efficiency, increased revenue AND decreased cost of operations for both Buyers AND Sellers.

“We see a huge cost and economic advantage of utilizing a seamless platform to match demand without incurring huge

capital outlays.”

Pete Weber Managing Partner at ISN

GCommerce

The 80/20/80 Rule

Special orders represent more than 80 percent of the transactions in our industry

Reducing this number for our customers is there core competency!

80% of the Orders …Drive 20% of revenue …Create 80% of Cost of Operations

Cost

Profit

Standard Model

Domain Expertise

Core

Virtual Inventory Lookups

CoreReal-Time Inventory

Lookups

Core

Any-To-Any Translation

Core

Disparate Communication

Protocols

CoreBusiness Process

Core

EDI

Core

Data Standards

Core

Hardware Purchasing

Support

Maintenance

Support

Patching

Support

High-Availability

Support

Backups

Support

Disaster Recovery

Support

Warranty Management

Support

Licensing

SupportHardware

Configuration

Support

Redundancy & Failover

Support

Scale

Support

Geo-Location

Support

Non-Value-Add Cost CentersValue-Add Core-Competencies

Azure Model

Cloud – Managed•Hardware•Software•High-Availability•Redundancy and Failover•Backups•Disaster Recovery•Geo-Location•Scale

Domain Expertise

Core

Virtual Inventory Lookups

CoreReal-Time Inventory

Lookups

Core

Any-To-Any Translation

Core

Disparate Communication

Protocols

CoreBusiness Process

Core

EDI

Core

Data Standards

Core

Hardware Purchasing

Support

Maintenance

Support

Patching

Support

High-Availability

Support

Backups

Support

Disaster Recovery

Support

Warranty Management

Support

Licensing

SupportHardware

Configuration

Support

Redundancy & Failover

Support

Scale

Support

Geo-Location

Support

Non-Value-Add Cost CentersValue-Add Core-Competencies

Speed to marketLower TCOGlobal ScaleMinimal Learning

CurveFocus on Core

Next Steps

Focus on delivering business value1.Understand the cloud opportunity2.

Work with local/Sub Partner Account Manager (PAM) resources and Industry Market Development Managers (IMDM) to promote your solution and engage locally

Work with local Development and Platform Evangelism (DPE) group to join early technology adopter programs3

4http://www.microsoft.com/industry/manufacturing Microsoft’s M&R information