The 360 view for Predictability & Visibility of your Business

Vikram Suri
MD Sage Middle East & India

Agenda Today
Sage Introduction The New Normality Analyzing the current State
Global Economy & Recession Some Important Middle East Data Points

Act now before Official Market Recovery ERP & CRM Trends The 360 View for Visibility & Predictability of your business Powering the Connected Enterprise

Brief Introduction to Sage

Key facts about our organisation

Market Global company with over 13,100 employees Finances Revenue of 1,439m for FY2009 Customers Provide advice to customers through 1.8 million support contracts Manage around 35,000 customer calls each day Work with 27,000 reseller partners and 40,000 accountants worldwide

Over 6 million customers worldwide

Market capitalisation of approximately 2.8 billion Made over 40 acquisitions since 1991

One of the market leaders in the UK, US, Europe, South Africa and Asia

What do we do?
Provide Software and services that help SMEs manage their business processes and relationships.
Customers
Improve service Meet their needs Build loyalty Multiple payment options Multiple channels

Customers

Operations
Manufacturing Distribution Servicing

Your business

People
Pay correctly & on time Record sickness & absence File legal documents Manage performance Develop potential

Suppliers
Get what you need on time Manage costs Operations

Finances
Manage debtors & creditors Manage cash flow Improve revenue and profit Forecasting & Planning Electronic payment processing

Advisors
File accounts Statutory reporting Forecasting & business planning Advice & help from Sage

How does our business split across these areas?

Although our business began as a provider of accounting software only, we have expanded our offerings and accounting solutions now represent 55% of our total turnover.
Payment Processing CRM (Merchant Services) 63.2m* 65.5m* HR & Payroll 148.9m*

Industry-specific 369.6m* Accounting 792.2m*

*Data for FY 10
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To what kind of businesses?

Enterprise (2.3)% growth

3%
of Sages customer base

Upper mid-market 8.6% growth

17%
of Sages customer base

Lower mid-market 7.7% growth

80%
of Sages customer base

Entry-Level 6.4% growth

CAGR 2007-2012*

Source: *Gartner, SMB ERP software Europe and North America, 2008 Gartner ERP software worldwide

A 360 View of the global economy & MENA

Let us understand our New Normality before we take a 360 view of our business

Many people did foresee the crisis. However,

the exact form that it would take and the timing of its onset and ferocity were foreseen by nobody. the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people to understand the risks to the system as a whole.

The Big Question.....

When will we exit the Recession?
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When will we exit the Recession?

20th Sept 2010 Announcements by the National Bureau Of Economic Research (NBER) & Organisation for Economic Cooperation & development (OECD)
The US Market exited the longest recession in more than 50 years in June 2009 If the markets slide again it will be an entirely new recession The Recession lasted 18 Months from December 2007 to June 2009 Still Feels like the recession since the markets are growing at a painfully slower pace than the expected rate The US Markets were predicted to grow at 3.2% but growing at 1.5%

Closer look at the World Economy

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Source - http://stats.oecd.org/economicoutlook/

MENA Trends in 2010for 2011

Two developments mark the outlook:
the unrest in the region and the surge in global fuel and food prices.

For most oil exporters, the expected increase in oil pricesfrom US$79 per barrel to US$107 per barrel and production volumes will lead to higher growth in 2011 Average real GDP growth (excluding Libya) is projected to reach 4.9 percent in 2011 compared with 3.5 percent in 2010, while non-oil growth is projected to stay at 3.5 percent in 2011. For the GCC, growth is projected to reach 7.8 percent in 2011 as oil production expands to stabilize global oil supply in the face of supply disruptions elsewhere. GCC non-oil growth is set to accelerate by more than 1 percentage point to 5.3 percent in 2011.
Source11 Surveillance by International Institutions OECD ilibrary 4th May 2011 -

MENA Outlook for 2011

Updated Feb 2011

GDP growth for MENA is expected to reach 4.1% in 2010, compared to 2.0 percent in 2009, the IMF said in its October World Economic Outlook. Gas-rich Qatar is still topping the league with 16.0% and 18.6% GDP growth projected for 2010 and 2011, compared to 8.6% in 2009. Growth in Saudi Arabia is forecast to bounce to 3.4% in 2010, and 4.5%next year, from a modest 0.6% in 2009.

Meanwhile, the UAE's economy should rebound by 2.4% this year, and expand by 3.2% in 2011, after contracting by 2.5% last year.
The strength of the recent economic recovery in the MENA region is largely underpinned by the rebound in oil prices from their trough in 2009, which has boosted receipts for oil exporters in the region
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The New Reality.. Rather New Normality

When the growth period returns, its not going to be a case of business as usual Companies will have to work smarter and harder for every bit of revenue they generate The biggest mistake organisations can make is failing to adapt their business to the new reality of the market and customers post-recession expectations The challenge for businesses now is to adapt to the new reality and get ready to take advantage of growth when the upturn comes

Recent Business Cycles

Turning Point End of Recession End of Recession End of Recession End of Recession Date of turning point July 1980 Nov 1982 Mar 1991 Nov 2001 Date announced July 1981 July 1983 Dec 1992 July 2003 Delay (months) 12 8 21 20

* Source: US National Bureau of Economic Research

Gartner advised recently that due to the lag in time between the point at which the economy starts growing again and when its officially declared to be growing again, clients simply cant wait for an official declaration before they begin planning for better times [Gartner May 09 Its Time to Prepare for a Return to Business Growth] Dont wait until the turning point has been announced before you prepare for a growth period now is the time to prepare your business for the upturn

How to Prepare for the Upturn?

Accurate Business Planning
Detailed insight on the performance of the business and employees to facilitate accurate and informed decision making as trading conditions change

Focused Sales Management

Accurate sales forecasting will help anticipate and address changing revenue patterns

Targeted Marketing Effectiveness

Customer and market segmentation will enable businesses to execute highly targeted campaigns on customer segments and sectors showing signs of recovery Continued tight marketing budgets will mean that Marketing depts will remain under pressure to prove Marketing Return on Investment (RoI)

Exceptional Customer Service

Workflow-driven customer service management will ensure the exceptional service levels expected by highly-discerning customers in the post-recession era are met every time in a consistent manner

Lets Look at Customer Relation Management (CRM) as a Tool..

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CRM is Not New as a Concept

Diary book Personal Information Manager (PIM) gadgets Spreadsheet Smartphone PDA Contact Management ERP applications

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Typical Business Issues

Remote Users

Sales

Marketing

Outlook Finance Customer Service

CRM Enables Optimum Collaboration

Internal Departments
Sales Marketing Support Finance

External
Customers & Partners

CRM

Web self-service

Facilitates internal and external collaboration for maximum customer satisfaction

Key Performance Indicators at a Glance

Tools to execute Graphically analyse how the business is doing at any time Group and segment data for precision marketing One-click reporting

Dashboards

CRM Market Trends

Extract from customer feedback as well as general market commentary including commentry from Gartner and Forrester:

Data Integration 360 View of Customer

Robust Reporting Control Center

Evolution to extended Ecosystem Connected Services

Social Marketing Integration of Social Media

Mobility Anywhere CRM

Price/Value Balance Rapid & Easy Deployment

CRM Trends 2014

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Sage CRM Facts and Figures

..a global install base of over 8,500 customers ..with over 100,000 users ..in installations of 5 1500 users ..growing at 1200 1500 customer PA .. sold and implemented by >1000 Business Partners ..followed by Gartner, Forrester and Ovum
.....The solutions primary strengths include a low price tag, strong usability, and quick time-tovalue. The solution offers an intuitive admin UI, strong performance capabilities, and strong product help functionality. In addition, the product integrates well with other Sage back-office software products..... Forrester Q2 10

Business Value of CRM

Now lets at Enterprise resource planning (ERP) Solutions

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What are customers Looking for.. In 2011

Reduce Time & Cost Streamline & accelerate business processes Optimize the use of current capacity Interoperate across locations Standardize business processes Provide visibility across functions & departments Cope with increasing complexity Improve Customer Experience Link global operations for better collaboration Increase agility & responsiveness 360 visibility

How has ERP Systems changed over time

Transaction Cost

An ERP strategy must be more end-user centric than before to maximize the benefits achieved from investments in ERP Key Issues for ERP, 2010 Gartner
* Source Gartner

% ERP users in the extended enterprise

Sage Accpac Facts

Product Launch Current Version Next Version Standard Integrated Functionality Number of Customers Markets Served 1979 v.5.6 (December 2009) v.2010 (Winter 2010) Sales, Purchasing, Inventory, CRM, Manufacturing, Finance 40,000+ Companies 210,00+ End-users 5 to 1000 Employees 28% Service, 21% CPG, 10 Finance-Banking-Accounting

One Solution

Offers more More than just ERP Business Intelligence

A COMPLETE 360 VIEW!!

Sage ERP & CRM works as ONE Integrated Solution

The Ease of Deployment to give you Predictability & Visibility of your business.

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Sage Powers to give you a 360 View

Sage ERP & Sage Suites On-Demand Services 3rd Party Applications

Connecting Your Business Your Sales, Marketing & Customer Service Teams Your Customers & Partners

Key Messages from Today

The New Normality - Analyze your current State Act now before Official Market Recovery ERP & CRM is our Core Strength & our Focus Our Solutions are technically superior to our competition Easy to Implement & Use with quick returns to Investment After Sales Support is key to our strategy & Vision

Global Strength, Local Focus.. .. We are Accountable

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Thank you
vikram.suri@sage.com