1. virtual techdays INDIA │ 18-20 august 2010 TECHNOLOGY & THE RETAIL INDUSTRY Siju Narayan │ Retail Industry Lead, Microsoft India

2.  The Retail Industry – An Overview  India Retail – Vital Statistics  The Retail Value Chain  What’s on the CXO’s Mind?  Top 5 Priorities  Can Technology Enable Landing these priorities?  Microsoft’s Skin in the Game  Solutions  Execution virtual techdays INDIA │ 18-20 august 2010 S E S S I O N A G E N D A

3.  Industry of Promise - Most Attractive Retail Destination 1  3 Years of Turbulence  India’s Retail Growth virtual techdays INDIA │ 18-20 august 2010 INDUSTRY OVERVIEW + Disposable Incomes + Favourable Demographics + Changing Lifestyles + Growth of Middle Class + Urban & Rural Markets -- Global Meltdown -- Credit Squeeze -- High Operating Costs -- Low Customer Confidence -- Lack of Trained Manpower -- High Rentals 1 A T Kearney’s Global Retail Development Index ( GRDI ), 2009

4. virtual techdays INDIA │ 18-20 august 2010 INDIA RETAIL – VITAL STATS Quick Facts Market Size$350 billion Organized Retail Penetration 5% - 8% Unorganized Retail Market 12 million “kiranas” Growth Rate15% - 20% Contribution to GDP14% Retail Density6% Per Capita Retail Sales$379 p.a.

5.  GDP Growth – strong growth despite global reset  Demographics – One of the youngest and largest consumer markets in the world  Government Policies – encouraging inclusive growth; granting industry status; GST  Rural India – huge growth potential. 72.2% rural population  Increased disposable incomes  growth in consumption  The infrastructure of roads & cold chains  Increased spend on non-food and non-essential items virtual techdays INDIA │ 18-20 august 2010 FACTORS SHAPING THE INDUSTRY

6.  The Global Slowdown 2 virtual techdays INDIA │ 18-20 august 2010 WHAT’S ON A RETAIL CEO’S MIND?? 2 Cartesian Economic Meltdown Survey, Dec 2008

7.  Impact of the Global Slowdown virtual techdays INDIA │ 18-20 august 2010 WHAT’S ON A RETAIL CEO’S MIND??

8.  Cost of Real Estate – Grounding! virtual techdays INDIA │ 18-20 august 2010 WHAT’S ON A RETAIL CEO’S MIND?? 1. KPMG Analysis, “ Indian Retail – Time to Change Lanes”, 2009 2. Jones Lang Lasalle Meghraj Report on India Retail, 2008

9. virtual techdays INDIA │ 18-20 august 2010 HIS TOP PRIORITIES… Priorities Better Insights into Business Demand & Supply Chain Efficiencies Enhance Reach – Multiple Channels Leverage IT Optimally Cost Control

10. virtual techdays INDIA │ 18-20 august 2010 THE TECHNOLOGY FOUNDATION NEEDED To Land his Business Priorities Standardized Infrastructure Best of Breed Applications Seamless Interoperability Collaboration Pay-As-You-Use Enterprise Mobility

11. virtual techdays INDIA │ 18-20 august 2010 MICROSOFT IS UNIQUELY POSITIONED To Enable That Foundation For You SupplierWarehouseMulti-channel Retail Store Call Center Customer HQ B2B Customer A Typical Retail Org.

12. virtual techdays INDIA │ 18-20 august 2010 HOW DOES THE APPLICATION MAP LOOK LIKE? Information Flow Goods & Information Flow LOB ERP WMS POS DB Messaging Collaboration MESSAGING COLLABORATION SFA DB CRM DB CRM DB CRM DB E-COM DB SupplierWarehouseMulti-channel Retail Store Call Center Customer HQ B2B Customer

13. virtual techdays INDIA │ 18-20 august 2010 HOW DOES THE APPLICATION MAP LOOK LIKE ON MICROSOFT STACK? Information Flow Goods & Information Flow LOB AX LS Retail DB SQL Messaging Collaboration EXCHANGE 2010 MICROSOFT OFFICE SHAREPOINT SERVER 2010 MS CRM SQL MS CRM SQL MS CRM SQL MS CRM SQL CS2009 SQL SupplierWarehouseMulti-channel Retail Store Call Center Customer HQ B2B Customer

14. virtual techdays INDIA │ 18-20 august 2010 STANDARDISATION = COST SAVINGS Cost Productivity

15. virtual techdays INDIA │ 18-20 august 2010 ONTO THE CLOUD “The bottom line: Early adopters are finding serious benefits, meaning that cloud computing is real and warrants your scrutiny as a new set of platforms for business applications.” “By 2012, 80% of Fortune 1000 enterprises will be using some cloud computing services, 20% of businesses will own no IT assets.” New Economics Reduced Management Redefining Productivity

16. virtual techdays INDIA │ 18-20 august 2010 ONTO THE CLOUD software as a service infrastructure as a service platform as a service “SaaS” “PaaS” “IaaS”

17. virtual techdays INDIA │ 18-20 august 2010 ONTO THE CLOUD software as a service “SaaS”

18. virtual techdays INDIA │ 18-20 august 2010 ONTO THE CLOUD platform as a service “PaaS”

19. virtual techdays INDIA │ 18-20 august 2010 ONTO THE CLOUD infrastructure as a service “IaaS” Workload Patterns Optimal for the Cloud

20. virtual techdays INDIA │ 18-20 august 2010 THE TECHNOLOGY FOUNDATION NEEDED To Land his Business Priorities Standardized Infrastructure Best of Breed Applications Seamless Interoperability Collaboration Pay-As-You-Use Enterprise Mobility √ √ √ √ √ √

21. virtual techdays INDIA │ 18-20 august 2010 IN A NUTSHELL…. India Retail Exponential Growth Role of Technology-acknowledged Microsoft’s Role Enabling LOB Apps Standardized Infrastructure Largest Partner Ecosystem Cloud Services PARTNERSHIP

22. virtual techdays THANKS │ 18-20 august 2010 sijun@microsoft.com