Industry Solutions
that Bridge the Gap
Industry Solutions
that Bridge the Gap
Agenda
What is RCM
What processes do we cover
RCM Feature and Function examples
When and where do we engage RCM
Competition
How can To-Increase help the sales process
RCM References
What is RCM
Dynamics AX Retail solution
with enhanced functionality for
• Merchandising / Category Management
• Groupings and attributes
• Supply Chain Management
• Logistics to-and-from Stores
• Store Operations
• Ordering, receiving and counting
Based on Standard Microsoft
Dynamics components
• All build within AX and EP for SharePoint
• One SQL database
• AX BRL Advanced and RCM
• RCM ENT – One for each AX user (min
25)
• RCM Store – One for each Store
Global Retail Solution
• Released in 20+ countries
• EMEA – US - AUS
• Global Store view
• Consolidated view for all stores in all
countries
• Multi Currency
Integrated to POS
• Will support deep integration to POS2009
• Can work with multiple POS systems
• RMS – TP.net – Fujitsu
• RMS needs the RTI component
Retail process flow
RCM build focus
» Procurement
» Store Logistics
» Sales
Planning
CRM
Buying
RCM Core
functionality
Integration focus
» Planning
forecasting
» Loyalty
» Multi channel
Sales
SCM
RCM 2009
Alignment with AX 2009.
»
»
»
»
Support for sites (SCM)
Store manager role (BI)
Concept of places for Stores and Grouping
Share point enabled store operations
SCM
Buying
New functionality
»
»
»
»
Pre ordering and approval (Buying)
Home delivery (Sales)
Automated Retail Flows
Matrix Entry for Fashion
Sales
We make
working
with Retail
EASY
Industry Trends and Challenges
Customer loyalty
Multi-Channel retail
Maintenance of large inventory levels at stores and distribution
centers
Shorter seasons
Shortened time-to-market (manufacturing-to-retail)
Lack of visibility into key data to support decision-making
Need to attract and retain skilled staff
Strong competition from large companies that have more
resources to invest in their IT infrastructures
As-Is: Interfaced Systems
Ware
house
Data is exported and
imported between
systems
Merchandising
Master data are created
multiple times in different
systems
Integrations between
systems reduces flexibility
Reporting
POS
ERP
Planning
Order
Mgmt.
To-Be: Integrated Solution
Data is created once and reused by
other components of the solution
• Reduces the risk of errors
Business
Intelligence
Merchandise
Store
Planning
Web Store
Dynamics
Retail
• Speeds up processes
Warehouse
Mgmt.
• Optimizes Performance
• Reduces the need for controls
POS
CRM
Item Generation
Create New Item Master
Set Prices
Define Assortment
Business
Intelligence
Plan Forecast
Define WMS parameters
Merchandise
Planning
Web Store
Activate in POS
Activate in WEB
Dynamics
AX - Retail
POS
Warehouse
Mgmt.
Retail Flows
Integrated Processes need Integrated Systems
• Product Management
• Grouping & Hierarchies
• Assortment Management
• Pricing
• Promotion Management
Category
Management
Supply Chain
• Replenishment Setup
• Store Order Generation
• Store Order Execution
• Store Transfers
• Inventory Counts
• Store Receiving
• Sales
• Returns
• Order Types
• Sales Audit
Store
Operations
User Friendliness with Microsoft’s Familiar Screens
Category Management
Product
Management
Grouping &
Hierarchies
Assortment
Management
Pricing
Promotion
Management
Multiple
Dimensional Setup
Store Structures
Store / Product
Grouping planning
Store Specific
Store / Product
Grouping planning
Product
Hierarchies
Assortment Setup
Customer Specific
Price/Discount /
Period
Properties
Seasonality
Time Dependent
Catalog
Inherited values
Order Type
Qty. Dependent
Tracking
requirements
Product
Information
Sales Price
Kits / Assembly
Batch / Serial
number
Product Creation
Workflow
Supply Chain
Replenishment
Setup
Store Order
Generation
Store Order
Execution
Store Transfers
Inventory
Counts
Store Grading
Push order
generation
Push/Pull
Order
Order
generation
Physical
Min / Max
Values
Automatic
Replenishment
(push)
Store Transfer
On-Hand LookUp
Cycle
Time Periods
Pull order
generation
Direct Delivery
Fashion Matrix
Manual
Corrections
Fashion Matrix
Order Types
Shortage
Handling
Store-to-Store
restrictions
Reason Codes
Store Operations
Store
Receiving
Sales
Returns
Order
Types
Sales
Audit
Visibility
POS
Transactions
Look up old
Receipts
Lay-Away
Store or
Back Office
Mobility
Customer
Information
Store Credit
Deposits
Workflow
requirements
Approval /
Ownership
Real Time
Updates
Gift Card
Work / Back
Orders
Exception
Handling
Microsoft Dynamics Retail
”end-to-end solution”
Microsoft Dynamics AX
POS Int. FW
Master Data
Sales Data
Microsoft Dynamics
POS2009
Multiple POS Systems
Sales Data
Stores
Store Users
Retail Chain Manger
Microsoft
Dynamics AX
Core
Functionality
GL; AR; AP; FA
Sales Order
Purchase Order
Inventory
Warehouse
HR
CRM
Point of Sales
Assortments
Promotions
SharePoint UI
Groupings
Supply Chain
Workflow Management
Store Orders
Enterprise Portal in Microsoft
Dynamics AX
Store Orders
Retail Chain Manager
Organization Structure
Configurable Support of Varied Business Models
Holding Company
Franchise C
Country B
Brand A
Vendors
CEO
Store
101
Store
102
Store
201
Store
202
Store
203
Store
301
Store
302
Store
303
RMS
2.0
RMS
2.0
POS
2009
POS
2009
POS
2009
POS
2009
RMS
2.0
POS
XYZ
Focus on Customers
Customers
asking about
missing items
Store Manager View
Demo - Groupings
Demo – Create a Store
Demo – Create an Item
Demo – Create a Store Movement
Retail Chain Manager for Dynamics AX
Item and item group management
Vendor management
Assortment management
Retail supply chain features on top of standard supply chain
Store management and integration
POS management and integration
Customer handling and registration
Returns and repairs registration and workflow
Retail Chain Manager Roadmap
Role center
User experience
improvement
Multi-Site enablement
SharePoint to replace .Net
Store front end
Item matrix
Pre-orders
New concept of places / store
Promotion enhancement
Home delivery
Business Intelligence
MAJOR RELEASES
SERVICE PACKS/MINOR RELEASES
AX 2009
SP1
Integration with Microsoft
Dynamics POS 2009
Integration with Advanced
Demand Management
Multi channel enablement
Mobile store operation
VMI / Consignment
Loyalty program enabling
Item matrix enhancement
Fashion focus
Hierarchies
enhancements
Advanced ADM
scenarios
Advanced
promotions
Co-op funds
Store
experience /
POS
When do we engage
RCM?
Companies with Retail Stores
» Brick and Mortar
Merchandising and Stores are key for the
Company
Need for Complexity and Flexibility
Retail can result in ERP - POS can drive
RCM/AX
Integrated solutions drive MS licenses
Sweet Spot
• 100 to 1,000 Stores - Specialty Retail –
Franchise/Capital
We
make
selling
Retail
EASY
Competition
TEC
Software Evaluation Center SCM Distr. Retail
HR
Product
Fin. Tech. Av.
Dynamics AX
72.24 92.88 95.83 84.59 95.70
84.49 87.62
Oracle E-Business Suite
SAP All-in-OneDistribution
66.12 84.69 86.28 83.48 99.76
91.37 85.28
61.95 98.13 81.69 99.60 99.97
93.52 89.14
Retalix
44.78 61.86 61.20 60.00 68.87
66.07 60.46
AX evaluated with the Industry solutions (Retail Chain Manager and RMS)
TEC Software Evaluation Center
How can we help
the sales process
We support MS and the partners in
» Tele Sales
» Scripts – Training – Marketing collateral
» Seminars
» Presentations
» Qualification
We make
selling
Retail EASY
» Industry Knowledge
» Presales
» Presentations - RFP responses – Estimates
» VPC Image - Demo Scripts – Process Flows – Click Demo’s
» References, site visits and case studies
The earlier we get involved the better we can help
Price Example
AX Users
Price
Qty.
Amount
RCM ENT Users
25
$
1,500 $ 37,500
RCM Stores
150
$
1,500 $ 225,000
Microsoft Dynamics Client for Microsoft Office
and Windows Sharepoint Services per store
150
$
195 $ 29,250
Total
$ 291,750
Deals in the Pipeline
Jewelry – US – 200 Stores
Grocery – DK – 400 Stores
News & Magazines – CAN – 300 Stores
Home and Kitchenware – AUS – 140 Stores
Games– NO – 40 Stores
Jeans – TU – 2,400+ Stores
Sports– SE – 145 Stores
Gas Stations – CAN – 700+ Stores
MASKU – SF – 50 Stores
Industrial Accessories – PL – 300 Stores
AX / RCM
RMS
MS-CRM
40 stores in Texas
30 Stores in new Stadium
“First End to End MS Retail
solution,
Merchandising, Financials, CRM
29 Companies
Live with 40 stores
Dallas Cowboys makes a big bet on
Microsoft business solutions
8 Mill USD
1.1 Mill USD in MS
Licenses
Dallas Cowboys run the largest
merchandising business in NFL
Best practice shared in the Retail industry session
140 Stores in DK
Potential for 260 stores in
Sweden and Norway
AX 2009
RCM2009
Strong brand in Denmark
Integration to advanced Optician POS
system
Change from Franchise to Capital Chain
3 month implementation
Streamline their business to grow rapidly
Denmark is the pilot for the rest of the
group
Upgrade from AX 4.0
Additional MS revenue:
200K USD
One of the largest chains in
Denmark
Best practice shared in the Retail industry session
AX 4.0
RCM 4.0
300 stores in Denmark
High transaction volumes +150Mill / year
Ships 25.000 order lines pr day
50.000 Item numbers
6.000 items on stock
Central invoicing
Heavy usage of BI
Upgrade from AX 3.0
Additional MS revenue:
400K USD
Cosmetics and health products
Best practice shared in the Retail industry session
330 movie theaters
across USA
AX 4.0
RCM 4.0
Managing logistics for Concession
stores
Integration to Fujitsu Global Store
Heavy usage of store operations
Focus on Supply Chain
Management
MS Dynamics revenue:
800K USD
US Largest movie theater chain
Best practice shared in the Retail industry session
Retravision
Australia wide white
goods retailer
$1Billion business
$5.9M deal,
Dynamics AX, RMS,RCM
End to end POS
solution in 410 stores
Where are you focused?
Which Micro vertical or type of customers?
What solution do you have in mind?
Why did you choose this focus?
How do you execute this focus from a solution
selling perspective and how does (or can) the
RCM Vertical help you?
Are the players in your organization ready?
Solution Extensibility
While the solution we provide was designed to
focus on the needs of standard Retail, its
applicability extends well beyond this horizontal
 Fashion Apparel
 Furniture
 Department Stores
 Electronic Consumer Goods
This means Extensibility for your investment in
RCM as well!
Find your niche solution and work the market!
Tools to Prepare for Pre-sales
Discovery Tools
Pre sales demo images
Import tools ????
» Import demo items and POS data quickly
Demo Scripts
Customer Collaterals, etc.
Preparation Phase
Subscribe for Retail magazines
Use your POS partners market knowledge
Get to know your potential customer
 Get customer advertisement material
 Make store test buy’s

Pay interest to the system and ask questions
 ”Google” to get relevant information





Ownership structure?
Position in the segment?
Winner or a looser?
Who are the customers competitors?
What systems do competitors use?
 Get information about the systems

Both Back office and POS, are they both up for a replacement?
 Try to find out where the decision will be taken
 Will store owners, or their representatives, be involved in the process?


If not, you will have to find out when they will be introduced
Don’t ever do an ERP or integration demo for store employees!
Evaluate & decide
Use a document template to structure your
information
» Your decision will be based on facts and not on
emotions
» You will communicate more efficient internally
» You will get a better foundation for a Retail team
to continue the sales process
Account plan
Qualify!
Decide strategy
Establish the Retail team
» If needed book external resources now!
Strategy
What is expected to be replaced?
» Implementation in phases?
Front office strategy
» Integration to external POS
» Existing POS or replacement
» Use existing POS alliance or establish a new relationship
Demand for customization or alliance with
providers of add-on solutions
Chose the best suitable references
Define where our solution unique
Prepare objection responses
Role based ERP with AX 2009
RCM is aligned with the
new role based profiles
in Ax2009
Optimizes process flow
in the application
Combines features in
one place
Store benchmarking and business alerts
Store classification
Business alerts
Deviation reporting
Workflow
Approval processes
Imbedded BI tools
Category Manager
Merchandise hierarchy
RCM Groupings
RCM assortments
Products
Stores
Class
Concepts
Product
line
regions
Item
Stores
Assortment
Items
Stores
ABC
Category Manager
SKU
Product hierarchy
• Dynamic grouping of
products / stores and
customers
• Unlimited levels
• Widely used for
reporting
• Assortment and
promotion definition
• Store benchmarking
Category Manager
Store operations (Role based)
Automatic ordering
Push and pull logistics
Store2store transfers
Direct delivery
Warehouse deliveries
Workflow and approvals
KPI reporting
Transparent process
Store Manager
Point of sales integrations
Support for multiple
standard POS system
Tight integration to multiple,
such as Microsoft RMS and
TP.net from wincor nixdorf
Build for scalability
Reduced simple store
footprint
Cashiers/Sales
Productivity platform
Fast implementation of new
features.
Configure customer specific
business processes
Reduce development and
implementation time
Integrations engine, business
rules, workflows, customer
specific KPI’s
IT Manager