Retail Challenges Worldwide

Increased Technology Use Changing Customer Attitudes Limited Capital Expenditures Financial and Credit Constraints Tapping Multiple Channels

Slow Market Growth

Increased Competition and Global Expansion

Source: Martec International Ltd white paper: Growing Market Share in Specialty Retail, Brian Hume, April 2010

Mobile Shopping
Disruptor: Shelf edge price compete Response: Branded Mobile Experience (product details, location)

Customer Control
Disruptor: Empowered customers Response: Empowered stores (real time, S+S, managed)

Multi-Channel Digital Marketing

Disruptor: Conversion to digital and social media Response: Integrated digital platform (search, ads, social, analytics)

BI Across Borders
Disruptor: Virtual organizations Response: BI to the masses (analytics, UC, portal, collaboration)

Customer-Centricity
Brand differentiation
Premium shopping experience, anywhere/anytime, multi-channel

Enhanced customer loyalty

Personalized, convenient, efficient, consistent engagement

Consumer-driven operations
People, processes, and systems optimized around the customer

Proactive retailing
Continuous refinement based on deep insight

Customer relationship agent philosophy

Enabled by a single, unified view of the customer

Flexible Retail Applications That Embrace Change

Important Factors for T odays Retailer in Systems Projects

Microsoft End-to-End Retail Solution

Sales to Supply
Connected People | Connected Insight | Connected Customer Relationships

Supply Chain

Demand Chain

Manufacturers Corporate Warehouse Distribution Center Store

Consumer

Validation of strategy

Retail Strategy

Specialty Retail

20+ Vertical Segments Microsoft Dynamics optimized to pursue Over 50,000 mid-market and customers across 40 enterprise opportunity countries

Midmarket/UMM/ Enterprise Hub & Spoke (Two Tier)

End-to-End
Store Strategy End-to-End Priority Strategy 3rd Party Apps Strong ISV Program

Microsoft Dynamics for Retail POS Role-based User Experience Payment Service for Microsoft Dynamics Microsoft product and technology integration Microsoft Dynamics for Retail HQ Advanced supply chain management Store Management Promotion Management Advanced price calculation

Multi-Channel Enablement

Microsoft Dynamics AX 2009 Multi-country/currency Role Centers & Enterprise Portal Workflow & Alerts Scalable and Adaptable

Value Delivered
Lower TCO Solves the problem of Complexity Eliminates loss of time created by redundant data entry in disparate systems More accurate, timely, and consistent information Best in Class UX Reduced training times More productive organization and employees through role-based user experience Leverage the Stack One cohesive solution Scalable Flexible Adaptable to meet new business requirements

Unique Architecture

Unique Value
MS AX for Retail HQ
MS AX for Retail POS
Items Departments Payments Taxes Productivity Sales TCO Pricing Discounts UI Layout Templates Hardware profile Functional profile 100%

3rd

Party Back office

Advanced Pricing Advanced Discounts Reason Codes Matrix Item Groups Employees

Items Departments Categories Customers Payments Taxes Sales .

3rd Party POS

UI Layout Templates Item Receipts Kits Matrix Lot Matrix .

~ 33%

Custom Integration w/ Each Opportunity Higher Maintenance and TCO Functional Inconsistency Limited Capability

Consistent Data Model and Complete Back Office Control of all Store activity Timely, Accurate, Consistent Information Single Version of the Truth

Payment Service Customer Value

Commerce Service for Microsoft Dynamics

Strenghten customer value prop

Investment Flexibility & Protection

A global retail solution capable of being deployed as a complete end-to-end ERP solution or as a multi-store management solution integrated with an existing ERP or existing POS system

AX POS

3rd Party POS

Dynamics Commerce Service

AX Retail
AX Horizontal

AX Financials

3rd Party ERP

Retail Solution System Overview

HQ Store Connect Service BC .NET
Store Connect Database All standard dataflow Product master POS settings Staff information Transactions etc

POS Store Connect Service

Store Connect Database

Data Packet File Location

Data Packet File Location

AOS

Transaction Service BC .NET

Global vouchers / Gift cards Inventory lookup Loyalty Sales order /invoice handling Centralized returns / holds Customer account payments etc

POS 1

POS N

AX Database

POS Local or Central Store Database

Head Office

Store

Retail Solution POS Overview

UI Components UI Process Components Application Settings

Logging

Security

Business Entities

Business Workflows

Data Access Logic

Service Agents

Data Source

Services

Price Discounts EFT connections Tax Currency Gift cards CCTV etc.

POS Plug-ins
IPrice
Price.dll
The default price module supplied by AX for Retail POS Theextended discount An default discount module supplied by implemented AX a partner POS by for Retail The European tax rules module supplied by AX for Retail POS Integrated Payment A customized payment module supplied by implemented AX a partner by for Retail

IDiscount
Discount.dll
POS System Core

ITax
Tax.dll

IEFT
EFT.dll

POS Customization

Deployment Topologies

SQL

Store Connect
SQL Express

Transaction Service

SQL

Store Connect
SQL Express

Transaction Service

SQL

SQL
Message DB

Head Office

Message DB

Head Office

Computer

Store Connect

Store Connect
SQL Express

SQL Express

Message DB

Message DB
SQL

SQL Express

SQL Express

Terminal 1

Terminal 2 Store 1

Terminal 1

Terminal 2 Store 1

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Supported OS Matrix

Operating System Windows Server 2008 x64 Windows Server 2008 x86 Windows Server 2008 R2 x64 Windows Vista x86 Windows Vista x64 Windows 7 x86 Windows 7 x64 Windows XP SP2 or higher POS Ready 2009 Hyper-V

AOS

AX Client

Retail Store Connect X X X

Retail Transaction Service X X X

Retail POS

SQL Server version

AX

Retail Store Connect X X

Retail POS

X X X X X X X

SQL 2008 x64 SQL 2008 x86

X X

X X

SQL 2005
SQL 2008 Express x64 X

X
X

X
X

X X X X

SQL 2008 Express x86

X X X X

Hardware Requirements

Microsoft Dynamics AX for Retail

Microsoft Dynamics AX for Retail POS
Transaction and UI Management Payment Processing Real-Time Customer Updates Role-Tailored UI and Security Real-Time Loyalty Updates Global Returns

Multi-Channel Commerce

Microsoft Dynamics AX for Retail Headquarters

Store Systems
Microsoft Dynamics AX POS Integration Statement Settings Item/Shelf Labelling Retail Configuration and Store Management Hardware Configuration Space Management

Logistics
Distribution Warehouse Assortment Management

Merchandising
Replenishment Pricing & Offer Management Buyers Push

Marketing
Global Voucher Promotions Pricing and Discounting Loyalty Program Retail Sales Data Warehouse Customer Detail

Microsoft Dynamics AX Core Functionality

Business Analysis SCM Enterprise Portal CRM Human Resource Management Financial Management

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Solution Capabilities

Key Scenarios
Complete Store Management & POS Integration Centralized configuration & management for each store & POS terminal from back office Key aspects include: Store Management:
Regional settings and currencies Statement settings (POS transactions to be posted to financials and inventory) Space Management System allows stores to be divided into sections and shelves

Staff Management:

POS Terminal Management:

Employee roles, permissions, and preferences

Define hardware configuration Display settings and behaviours Payment, Statement, Tax settings

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Key Scenarios
Pricing / Promotions Key aspects include
Varying prices by location (different stores) Prices with effective dates (sale pricing) Varying prices by customer(retail, wholesale, club) Prices based on price groups (regular, duty-free etc) Prices based on different UOM, variants Promotions by department, group, item or variant Mix & Match offer across items/variants Multi-buy discounts (i.e., based on quantity) Multiple valid offering at same time; Price rounding

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Key Scenarios
Purchasing Enhances the existing AX Purchasing functionality Key aspects include: Store Replenishment Suggested order quantities based on predefined rules Ability to order predefined packages (Prepacks) Vendor Service Categories define store delivery and on sale dates Cross Docking Merchandise can be delivered directly to store/warehouse using Transfer Journals Buyers Push Allows redistribution of merchandise between stores and warehouses.

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Key Scenarios
Loyalty Scheme
Points based incentives to reward customers and to promote specific goods and services

Key aspects include:

Loyalty Customers can be linked to standard customer accounts Loyalty Cards collect points that can be used as payment tender Loyalty Schemes define a set rules that determine how the cards work The POS utilizes Transaction Services for real-time balance check Loyalty point issued and redeemed are instantly recorded into the back office after each transaction

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Key Scenarios
Store Synchronous Workflows Transaction Service Connection to back office for real-time queries Key aspects include:
Inventory lookup: Makes it possible to look up stock levels for items in other stores. Global Returns: POS can recall a transaction from the central database Real-time balance checks: For gift card / customer account and loyalty point balances Immediate posting: Send Transactions to central db as soon as they are finalized on the POS. Logon check: Makes sure a staff member is only logged onto one POS at a time. Floating cashier: Cashier can work on multiple POS; able to run X- and Z-reports on any POS.

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Thank you