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The Best In France research project is conducted under the supervision of: Prof. Michael SEGALLA HEC—Paris M. Jack ANDERSON Ernst & Young MICROSOFT IN FRANCE THE BEST IN FRANCE PROJECT Laurent BRIGHEL Julien COSSE Bruno DUBREUIL François-René GROSSET

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the best in france project

The Best In France research project is conducted under the supervision of:Prof. Michael SEGALLA HEC—Paris M. Jack ANDERSON Ernst & Young

MICROSOFT IN FRANCE

THE BEST IN FRANCE PROJECT

Laurent BRIGHEL

Julien COSSE

Bruno DUBREUIL

François-René GROSSET

Damien HOULLE

www.bestinfrance.org

slide2

MICROSOFT FRANCE

EUROPE

ME AND AFRICA

ASIA

South AMERICA

South PACIFIC

North and Central AMERICA

MICROSOFT IN FRANCE

  • About MS
    • Corp. Organization
    • MS France organization
    • Financial Statement
  • History of MS
  • Activities

Microsoft in France

France benefits & constraints

Synthesis

slide3

CEO

MICROSOFT IN FRANCE

Customer Satisfaction and Services

Public Administration

  • About MS
    • Corp. Organization
    • MS France organization
    • Financial Statement
  • History of MS
  • Activities

Marketing & Communication

Human Resources

Developer and Platform Evangelism

Enterprise & Partners

PME/PMI

Services

Home & Entertainment

MSN

Legal and Corporate Affairs

Finance

Microsoft in France

France benefits & constraints

Synthesis

slide4

MICROSOFT IN FRANCE

MICROSOFT CORP. (’04 figures)

World turnover

36,8 B$

France estimated turnover

about 1,5B€

  • About MS
    • Corp. Organization
    • MS France organization
    • Financial Statement
  • History of MS
  • Activities

Net Income

8,2B$

Assets

92,4B$

Microsoft in France

France benefits & constraints

Synthesis

slide5

1975

1983

1989

2005

HISTORY OF MICROSOFT IN FRANCE

1975 : Creation of Microsoft in the USA

3 Key-dates :

1983 : Creation of Microsoft France in Les Ulis (Courtaboeuf)

1989 : Creation of Microsoft EMEA in La Défense

2005 : INRIA Partnership (will be developed later)

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities

Microsoft in France

France benefits & constraints

Synthesis

slide6

CREATION OF MICROSOFT FRANCE

One date : january ‘83 : MS France was created by Bernard VERGNES

One goal : to sell MS products on the French market, by managing marketing, sales, and distribution

One idea : A local CEO for the local market (B. VERGNES in France) with free hands

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities

ABOUT MICROSOFT FRANCE

4 months to create the structure (SARL)

100 % owned by MS USA

5 employees at the beginning

Microsoft in France

France benefits & constraints

Synthesis

slide7

ABOUT THE LOCATION IN FRANCE : Courtaboeuf

  • Dynamism : Apple, HP, Micral, …, are already there
  • Proximity of « brains » : universities, research centers, …
  • Proximity of commodities : Rungis, Orly Airport

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities

Microsoft in France

France benefits & constraints

Synthesis

slide8

CREATION OF MICROSOFT EMEA

In 1987, several national offices are opened by the 3 pioneers

Lack of structure between US HQ and 10 European HQs

Political background : construction of Europe, fall of Berlin Wall

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities

ABOUT MICROSOFT EMEA

May 1989 : Bill GATES gave B. VERGNES the responsibility of creating and managing the European HQ

A turnover of 200 M$

To begin, 3 people in the HQ : B.VERGNES, an assistant and an American executive director

Microsoft in France

France benefits & constraints

Synthesis

slide9

ABOUT THE LOCATION : FRANCE

5 potential locations : London, Brussels, Paris, Geneva, Frankfort

By elimination, 2 finalists : London and Paris

Paris won for cultural reasons

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities
  • ABOUT THE LOCATION : LA DEFENSE
  • La Defense was chosen because :
  • Its dynamism (buildings, CNIT, Grande Arche…)
  • Proximity to Charles de Gaulle Airport
  • Proximity to Paris.

Microsoft in France

France benefits & constraints

Synthesis

slide10

3 TYPES OF CUSTOMERS

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities
    • Customers
    • Products

COMPANIES

PEOPLE

EDUCATION

SALES SYSTEM

Computers builders

Software Houses

Professional retailers

Retailers

Microsoft in France

France benefits & constraints

Synthesis

slide11

COMMUNICATE

LEARN

HOME & ENTERTAINMENT

WEB APPLICATION SERVERS

DECISIONS TOOLS

SOFTWARE DEV

DEAL WITH DATA

COMPANIES

CRM / ERP

SOFTWARE DEV

MICROSOFT IN FRANCE

  • About MS
  • History of MS
    • Chronology
    • France
    • EMEA
  • Activities
    • Customers
    • Products

Microsoft in France

France benefits & constraints

Synthesis

slide12

France benefits & constraints

Passion for customers, for our partners, and for technology

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image

Openness and respectfulness

Integrity and honesty

Taking on big challenges and seeing them through

Accountability to customers, shareholders, partners, and employees for commitments, results, and quality

Constructive self-criticism, self-improvement, and personal excellence

Microsoft in France

France benefits & constraints

Synthesis

slide13

France benefits & constraints

A “Why?” Culture

Where are the winners?

Strong Individualism

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image

Not Risk Takers

Too much criticism but no action

Low Adaptation to other cultures

Creativity

Strategy

Very good productivity

Strong knowledge

Very good understanding of other cultures

Strong capacity to conceptualize complexity

Microsoft in France

France benefits & constraints

Synthesis

slide14

Create a good Environment for employees

France benefits & constraints

Hierarchy with low number of levels

Daily used French and English

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image

Open Spaces

Are French Employees disturbed by this kind of Working Environment?

OR

Chapitre 1

Chapitre 2

Chapitre 3

slide15

Quantitative

Individual

Collective

Qualitative

  • People oriented working environment

France benefits & constraints

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image
  • High potentials Microsoft spotting system
  • Hiring system criteria :
    • Strong experiences in high tech companies
    • Fluent in English
    • Strong experiences in US companies
  • “PLUG AND PLAY”

Microsoft in France

France benefits & constraints

Synthesis

slide16

French Market characteristics

Fast Market growth

High number of « early adopters »

Long period before Market growth

  • The French Market
  • Investments in new technologies are twice less than in other European countries
  • IT is not seen as a tool enhancing performance of the company
  • A lot of new companies are created each year
  • Not a saturated Market with a high potential growth

France benefits & constraints

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image
  • Microsoft strategy
  • Microsoft does not look to increase its market share
  • It helps to make the market bigger by :
    • Offering consulting solutions to French IT companies
    • Communication strategy on new technologies

Microsoft in France

France benefits & constraints

Synthesis

slide17

France constraints

  • The “good enough” spirit
  • High resistance to changes
  • Customer’s complaints are higher in France

France benefits & constraints

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image
  • Microsoft solutions
  • Marketing effort is bigger in France

Microsoft in France

France benefits & constraints

Synthesis

slide18

Competitive trade-off between employees tax system and France cost of living (except high wages)

France benefits & constraints

Pro

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image
  • High tax Burden
  • High labor cost
  • Low value-added activities centralization in Ireland (accounting, expenses)
  • Financial arrangements with MS Ireland

Cons

The Microsoft Solution

Microsoft in France

France benefits & constraints

Synthesis

slide19

France benefits & constraints

Sales commission is given to MS France

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image

MS Ireland collects turnover

MS France distributes products

Microsoft in France

France benefits & constraints

Synthesis

slide20

BIG IT Companies

  • Partnership in Research and Development
  • Ensure Security through automaic Updates
  • Ensure products Quality

E.G.: Dassault System

  • Partnerships
  • E.G.: ENST incubator

MS wants to help young start ups

  • INRIA: Improve R&D in France
  • These investments are going to increase in France and In Europe
  • Small IT Companies
  • Helped on Marketing and Investments
  • MS offers Chief Product Officer consulting

-> CAP program

  • Products referenced on Microsoft Catalogue

-> EMPOWER Program

Offers products at low prices during 2 years

  • Improve Security
  • Newsletters
  • Conferences
  • Automatic updates
  • Warnings to users through “sms”, “e-mails”

MS wants to improve the image of their products

  • French Employment
  • 1 job created at MS France -> 8 jobs created
  • Retraining in IT through Certified program

-> Make disappear the lack of employees in the IT industry

  • Programs created
  • Certification to MS Products
  • Products at low prices

There is a need to adapt to every single actor of the French IT Market

Microsoft suffers from a bad image in France

France benefits & constraints

Customers

Decision makers

IT

  • France Values
    • Culture of Microsoft company vs. France
    • Solutions
  • French Market
    • French Market
    • Constraints
  • Finance
  • Image

NO Investments

NO Jobs created

Products Quality

Better services

Prices too high

Products quality

  • Microsoft finds out solutions to improve its image in France

Customers

Decision makers

IT

Improve quality, communication and services

Microsoft in France

France benefits & constraints

Synthesis

slide21

SYNTHESIS

Microsoft’s Expectations

Strategic Threats

Competitive advantages

Language Skills

+ +

Conservative Market

“Brains” in management

Productivity

Labor Flexibility

Market’s High potential Growth

High Labor Cost

- -

Microsoft’s Satisfaction

+ +

Lifestyle cost

Demanding Customers

High Tax Burden

Lifestyle quality

Cultural Values

“Brains” in technology

Critical handicaps

Added Benefits

- -

Microsoft in France

France benefits & constraints

Synthesis

slide22

We Thank

Microsoft in France

France benefits & constraints

Synthesis

slide23

François-René Grosset

[email protected]

Our team

Julien Cossé

[email protected]

Bruno Dubreuil

[email protected]

Damien Houlle

[email protected]

Laurent Brighel

[email protected]

Microsoft in France

France benefits & constraints

Synthesis

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