Market Forces ↑ ↓ Industry Consolidation Macroeconomic Microsoft Dynamics Market Forces Industry Consolidation Merger and acquisition activity Expand geographic reach, expand customer base and entering new lines of business and primary M&A drivers Macroeconomic Macro level economic shifts. Rapid industrialization of 3rd world Cost of energy increasing Cost of labour increasing Unpredictable commodity prices Mining & Construction sectors fluctuating Automotive sector rebounding Fracking , Oil & Gas industries strong Emerging Economies : Brazil, Russia, India and China still growing Public sector infr. projects flat Renewable energy projects (solar, wind) drive demand Competitive Behavior Changes in competitor behaviour/new entrants. BRICs producing lower cost machines (no regulatory constraints, lower energy prices, lower labor costs, China & Mexico) High labor content cost advantages ↑ New Prod. Development New Equipment Sales Labor Costs ↓ Differentiation Warranty Periods Field Service Contracts Cost of Sale Profitability Capital investments Automation Investments New Services Offerings Technology Investments Penalties Skills Training Receivables Customer Demand/Behavior Shifts Changes in Customer Behavior Personalization & Customization - customer driven configurations & packages (product + service offerings) Demand for improved service Asset management (EAM) and flexible Manufacturing are also forecast to drive factory-enterprise integration, significant potential for automation and customized service solutions in industrial applications. To effectively facilitate the Closing Whiteboard it is important that sales professionals position their recommended solutions as strategic, not purely operational, to the business. For an IT solution to be viewed as strategic it must address a business challenge that originates in one of six industry driver/market forces buckets, which are changes in the economy, regulatory requirements, competitive behavior or customer behavior and/or is resulting from the commoditization of their offering or consolidation in the industry. Most ERP initiatives are a downstream by-product of a major shift or change in one of the above. The goal is to identify what that alignment is through the selling cycle and then use it to open the Closing Whiteboard session. Regulatory Anticipated or legislated changes EPA Wastewater treatment OSHA/Dept. of Labor – increasing workplace safety regulations Clean Air Solvents and Lubricants Focus on Explosion Proof Compliance Product/Service Commoditization Inability to differentiate based on product or service offering. Extremely difficult to differentiate © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Whiteboard Facilitation (IEM) Microsoft Dynamics Whiteboard Facilitation (IEM) Industry Driver Impacts Macroeconomic: US emerging from recession Growth in heavy industry Increasing energy costs Higher labour costs Regulatory: EPA: Clean air/CO2 emissions Green landfill Green Lubricants OSHA & Dept. of Labor Competitive Lower prices Commoditization of non-specialized products Customer Consumer driven product configurations (personalization) Increasing demand for improved service Increasing Dealer expectations Slight increase in demand from a number of industry sectors; mining, oil and gas and construction. Opportunity to capitalize on growing demand Increasing regulatory oversight over environmental and employee safety. Cost of labor increasing Re-engineering of machinery and manufacturing processes required to achieve green compliance (manufacturing and field service) look and perform equally). Price disadvantage (emerging nations produce lower cost machinery due to lower labor costs, lower energy costs and limited regulatory oversight. Product parity (machines Requirement to develop new offerings (service/warranty) Field Service Contracts Differentiate via warranties & spare Parts packages (add-ons) Each of the four primary industry drivers (economy, regulatory, competition/customers) and market forces (commoditization and consolidation) typically have 3-5 meaningful elements in play at any given time that will materially impact the prospect. The impact metrics will include both traditional operating metrics (EBITDA/profitability, revenue, margins, as well as softer metrics like customer loyalty, customer satisfaction and cost of sales (which are seldom measured). For clarity, the industry drivers and market forces are always external pressures that the prospect cannot control. The impacts are where those forces show up in their business. Price driven decision making. Customers want to configure their own “solutions” or products. Customers want Packages- product and services solutions Dealers demanding self service tools New product development investments required Dealer management increasingly important Services costs increasing