1. EAI in the Retail Environment David Hobbs-Mallyon – davidhm@microsoft.comdavidhm@microsoft.com Application Platform – Specialist Sales

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3. Agenda 09:30 - Welcome - David Hobbs-Mallyon (Microsoft) 09:50 - An Introduction to BizTalk 2004 - Harsha Karunaratne (Microsoft) 10:10 - BizTalk Server demo - Harsha Karunaratne (Microsoft) 10:30 - Break 10:50 - Solving integration challenges in retail - Ed Estaugh (Charteris) 11:10 - Real-time Business Activity Monitoring - Paul Somers (Charteris) 11:40 - Electronic Data Interchange - Richard Sargeant (Covast) 12:00 - Real-life integration - Andrew Bond (House of Fraser) 12:20 - Summary - David Hobbs-Mallyon (Microsoft) 12:30 - Lunch

4. Video – A Glimpse Ahead

5. Microsoft in Retail $1b business to Microsoft 200+ dedicated people world wide 500 partners aligned Focussed on solutions / business value Great traction / references

6. The current retail environment Increasing competition, both nationally and internationally Gross margins are steadily decreasing across the industry after peak in the early 1990s Shrinking product life cycles Less time being spent shopping More retail space available Diverse market channels Increasing customer demands

7. The customer service imperative Customers are: – More informed – Less loyal – More demanding – More exacting about the in-store experience – Focused on convenience – Motivated by quality and value for money – Able to use multiple channels

8. The UK shopper’s wish list Ease of locating items in store Employees assist in purchases effectively Fast, hassle-free check-out experience Products in stock Respectful treatment from employees Return products easily Prices visible on products or shelves Products priced the same at checkout as on the item or shelf

9. Barriers to delivering customer satisfaction Some of the issues our customers are telling us about are… Problematic store layouts Staffing issues In-store capital drain Management constraints Store operations inefficiencies

10. Smarter Retailing Initiative The Perfect Experience The Perfect Experience Give them what they want, when they want it Give them what they want, when they want it In-Store Information In-Store Information SmarterShopping Sharper Salespeople Sharper Salespeople Customers as Individuals Customers as Individuals Real-Time Retailing Real-Time Retailing Multiple Checkout Options Multiple Checkout Options SmarterSelling Enterprise Agility Enterprise Agility Execution Excellence Execution Excellence Capital Efficiency Capital Efficiency Stores without Wires Stores without Wires SmarterOperations www.microsoft.com/smartretail

11. Infrastructure Through Innovation – Microsoft’s Value For The Retail Industry Standards Adoption Integration Across Disparate Applications Real-time Retailing Persistent store connections XP Embedded CE.NET SQL Server 2005 Windows Server 2003/XP Pro Base Infrastructure Kiosk Wireless Access Points Business Intelligence CRM Self Checkout RFID – Operational Efficiency Associate Devices Appliance Devices Integrated Innovation Phase I Customer Identification Targeted Selling RFID – Shrink, Out of Stock True Multi-Channel Capabilities High-speed Access Multimedia Approach Integrated Innovation Phase II Solutions for the Future Technology and Solution Adoption Timeline Integrated Innovation Future RFID – Consumer Experience Completely Wireless Smarter Shopping Smarter Selling Smarter Operations 11 ROI

12. The main industry issues are driving Microsoft’s Retail strategy Ability to deliver consistently across the world Integration of multiple formats and systems across the world Need to differentiate Provide agility to implement new business applications faster Operational excellence Real-time customer relevant information Implement Point of Service concepts Fully integrated multi-channel Real time process oriented Highly dependent on high value consulting to improve efficiency Demand driven inventory management Global integration of supply chain Use of emerging RFID technology Ability to provide employees with ‘smart’ tools to improve product knowledge Easy to use / workflow based systems Industry Consolidation and Global Expansion Improving Customer service and multi-channel strategy Integration across the supply chain with vendors Improve supply chain / maximize inventory productivity Employee recruitment and retention Industry Issues

13. Microsoft Retail in 2006 Industry Issues Industry Consolidation and Global Expansion Improving Customer service and multi-channel strategy Integration across the supply chain with vendors Improve supply chain / maximize inventory productivity Employee recruitment and retention Business Intelligence Point of Service Supply Chain Management Enterprise Collaboration Multi-channel Retail Microsoft Priorities

14. Video Case Study – Virgin Retail http://www.microsoft.com/resources/casestudies/

15. Virgin Retail

16. Agenda 09:30 - Welcome - David Hobbs-Mallyon (Microsoft) 09:50 - An Introduction to BizTalk 2004 - Harsha Karunaratne (Microsoft) 10:10 - BizTalk Server demo - Harsha Karunaratne (Microsoft) 10:30 - Break 10:50 - Solving integration challenges in retail - Ed Estaugh (Charteris) 11:10 - Real-time Business Activity Monitoring - Paul Somers (Charteris) 11:40 - Electronic Data Interchange - Richard Sargeant (Covast) 12:00 – Real-life integration - Andrew Bond (House of Fraser) 12:20 – Summary - David Hobbs-Mallyon (Microsoft) 12:30 - Lunch

17. Summary Review with the speakers over lunch Visit www.microsoft.com/smartretailwww.microsoft.com/smartretail FREE ½ day workshop with Charteris and Microsoft

18. EAI in the Retail Environment David Hobbs-Mallyon – davidhm@microsoft.comdavidhm@microsoft.com Application Platform – Specialist Sales