Driving Sustained Growth in Industrial Equipment Manufacturing

1. Name • Title • Company Driving Sustained Growth in Industrial Equipment Manufacturing Solutions for Profitable Innovation, Cost Reduction, and Service Excellence

2. IEM Market Challenges Worldwide Revenues and Profit After-MarketService Emerging Economies Complexity Changing Workforce Innovation Collaboration Source: IDC Manufacturing Insightswhite paper sponsored by Microsoft Dynamics CRM: Customer Relationship Excellence: How Industrial Equipment Manufacturers Can Grow and Protect Customer Loyalty Every Step of the Way, Joe Barkai, October 2009

3. Primary Business Challenges Complex supply and distribution channels Accurate, timely sales quotes Profitable Innovation Centralized pricing, configuration, and component information CostReduction Collaboration between sales and engineering Efficient and consistent sales and service operations Changing workforce Service Excellence Customer and partner satisfaction and loyalty Insight into services costs and profitability over long product life cycle Sustained brand equity Service and maintenance efficiency

4. Comprehensive Customer Knowledge Bolsters Loyalty “IEM purchases are capital-intensive, and the ownership life cycle is longer than with many other types of products. Keeping customers satisfied throughout that extended life cycle is critical to achieving brand loyalty—because devoted customers bring with them an ongoing revenue stream for parts, service, and additional products.” ―Joe Barkai, Practice Director, Product Lifecycle Strategies, IDC Manufacturing Insights Source: IDC Manufacturing Insightswhite paper sponsored by Microsoft Dynamics CRM: Customer Relationship Excellence: How Industrial Equipment Manufacturers Can Grow and Protect Customer Loyalty Every Step of the Way, Joe Barkai, October 2009

5. Microsoft Dynamics® CRM Helps Drive Stronger Return on Relationships Works the Way Your Business Does • It can be tailored to exactly fit each business. Works the Way Technology Should Works the Way You Do • It’s fast, flexible, and affordable. • It’s aneasy and natural way for your people to use CRM.

6. Profitable Innovation Requires Strong Collaboration “With discerning customers and increased pressure from low-cost competitors, industrial equipment and machinery manufacturers must focus on profitable innovation and deep customer knowledge throughout the value chain. To drive true product differentiation, innovation must stem from strong collaboration between Engineering, Sales, and Marketing.” ―Joe Barkai, Practice Director, Product Lifecycle Strategies, IDC Manufacturing Insights Source: IDC Manufacturing Insightswhite paper sponsored by Microsoft Dynamics CRM: Customer Relationship Excellence: How Industrial Equipment Manufacturers Can Grow and Protect Customer Loyalty Every Step of the Way, Joe Barkai, October 2009 PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

7. Challenge: Profitable Innovation Support better collaboration between sales and engineering. Improve communications and collaboration across complex supply and distribution channels. Connect people to information with secure, centralized access. Reduce the risks of a changing workforce. PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

8. Microsoft Solutions Help Drive Profitable Innovation Improve collaboration and speed to market Connect your people and systems Efficiently manage a growing number of relationships Improve communication with integrated systems Speed time to market with visibility Collaborate globally on new and existing designs PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

9. HVAC Manufacturer Improves Collaboration, Innovation ”We found that Microsoft Dynamics® CRM Online would support our internal business processes and support the business processes of our external sales representatives…. Distributors, contractors, and even homeowners can enter data.” Results Challenge Solution • Unico’s sales process involves several different companies, and Unico lacked visibility into how and where sales representatives were selling its products, as well as into the status of fulfilling the order across the value chain (suppliers, manufacturing floor, distributor, customer). Microsoft Dynamics®CRM, installed and customized by a Microsoft Certified Partner, provided the company a more complete view of its sales processes with more accurate, up-to-date information from sales representatives, distributors, contractors, and customers. • Improved collaboration • Increased stakeholder participation • Reduced costs • Better-targeted marketing PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

10. Reducing Costs of Sales Is Vital to Profitable Growth “Industrial equipment manufacturers are under similar capital constraints as their customers. As such, the revenue growth they pursue must represent profitable growth. The cost of sales must be minimized by having streamlined processes and good visibility to performance information.” ―Joe Barkai, Practice Director, Product Lifecycle Strategies, IDC Manufacturing Insights Source: IDC Manufacturing Insightswhite paper sponsored by Microsoft Dynamics CRM: Customer Relationship Excellence: How Industrial Equipment Manufacturers Can Grow and Protect Customer Loyalty Every Step of the Way, Joe Barkai, October 2009 PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

11. Challenge: Cost Reduction Improve sales quote speed and accuracy. Centralize pricing, configuration, and component information. Achieve efficient and consistent sales and service operations. Connect systems, driving adoption of new processes/tools. PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

12. Microsoft Solutions Help Reduce Cost of Sales Improve sales/service operations and gain visibility into customer information Accelerate quote process and sales cycle Centralize customer, supplier, and distributor records Use automatic configurations based on actuals and real-time data Provide real-time data to suppliers, sourcers, and production Share new and existing specs and requirements PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

13. Forklift Manufacturer Reduces Sales andService Costs “Previously we spent much of our time fixing bugs and managing ad-hoc requests. Using xRM [in Microsoft Dynamics® CRM] has reduced our development costs by 60 percent.” Results Challenge Solution • MCFE sought to improve its configuration application. MCFE also had a dealer-facing configuration system, but found it unstable and difficult to manage. In addition, its IT team spent valuable time on implementing individual requests. MCFE used Microsoft Dynamics® CRM and deployed dealer-facing portals to streamline configuration and other processes, reducing the time, costs, and inaccuracies of previous systems and processes. And IT reduced time spent on customizations from 35 to 10 days. • Increased employee productivity • Reduced customization time—50 percent • Reduced development costs—60 percent • Shortened order processing time • Realized high user adoption due to ease of use PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

14. Industrial Equipment Customers Demand Service Excellence “In an industry where equipment uptime and productivity are paramount, top-notch service is expected (and demanded) as a way for equipment owners to maintain productivity levels and reduce cost of ownership.” ―Joe Barkai, Practice Director, Product Lifecycle Strategies, IDC Manufacturing Insights Source: IDC Manufacturing Insightswhite paper sponsored by Microsoft Dynamics CRM: Customer Relationship Excellence: How Industrial Equipment Manufacturers Can Grow and Protect Customer Loyalty Every Step of the Way, Joe Barkai, October 2009 PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

15. Challenge: Service Excellence Strengthen customer and partner loyalty. Improve service offerings and efficiency. Gain insight into service costs and profitability. Ensure the quality and maintenance of equipment in the field. PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

16. Microsoft Solutions Help Drive Service Excellence Build customer and partner loyalty Identify and prioritize your most profitable customers Improve customer and partner satisfaction with low-cost self service Differentiate your brand with exceptional service Speed service on maintenance and repairs in the field with mobile access Ensure regular maintenance and prompt service on equipment PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

17. Forklift Manufacturer Improves Customer Service ”We have been able to reduce the amount of time we spend on service calls by an average of 80 percent per call…. Due to Microsoft Dynamics®CRM, we are able to hold on to this high efficiency service level.” MCFE had no system for managing service calls from dealers. Calls, e-mails, and faxes were received in several locations, and each customer service center used its own methods for resolving and tracking issues. MCFE selected Microsoft Dynamics® CRM to track all customer service requests and resolutions. Created a knowledge base for managing customer service Improved customer service effectiveness PROFITABLE INNOVATION COSTREDUCTION SERVICE EXCELLENCE

18. Business Benefits Improve sales process efficiency and reduce costs Build and maintain brand equity Reduce IT costs with a flexible platform Deliver service excellence to drive loyalty Drive profitable innovation with better collaboration Align your existing business and technology architecture

19. Technology Benefits Scalable technology that “future proofs” your investment Existing infrastructure investment helps you optimize what you have Flexible deployment options let you choose on-demand or on-premises Higher user adoption and reduced IT risk and overhead Consolidation of different systems across your enterprise

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