Statement of Direction for Microsoft Retail …act-pos.com/MICROSOFTV_2RMS_POS/SOD_RMS_POS.pdfMicrosoft Confidential 3 Introduction This is a statement of direction for partners working

Microsoft Confidential 1

Statement of Direction for Microsoft

® Retail Management System and

Microsoft Point-of-Sale

Updated July, 2006


Contents

Statement of Direction for Microsoft® Retail Management System and Microsoft Point-of-Sale...................... 1

Contents............................................................................................................................................................. 2

Introduction ........................................................................................................................................................ 3

Microsoft Retail Management System Strategy, Support Offer, and Roadmap ................................................ 4

Microsoft RMS Roadmap................................................................................................................................... 6

Microsoft Dynamics RMS Version 2.0 Detail and Version 1.3 Discontinuation ................................................. 6

List of Features .................................................................................................................................................. 6

Product upgrade.................................................................................................................................... 6

Product activation.................................................................................................................................. 6

Matrix items........................................................................................................................................... 7

Purchase orders.................................................................................................................................... 9

Hydra devices ..................................................................................................................................... 10

% Discount .......................................................................................................................................... 10

HQ item cost ....................................................................................................................................... 10

AVS support ........................................................................................................................................ 10

Item find on supplier number .............................................................................................................. 11

Quantity on hand filter ......................................................................................................................... 11

Microsoft Point-of-Sale Strategy, Support Offer, and Roadmap...................................................................... 12

Microsoft POS Roadmap ................................................................................................................................. 13

POS Version 2.0 Detail and Version 1.0 Discontinuation................................................................................ 14

Microsoft Dynamics RMS 3.0 and POS Version 3.0 Preliminary Deliverables................................................ 16

Microsoft RMS and Microsoft POS Joint timeline ............................................................................................ 17

Microsoft RMS and Microsoft POS Solution Developer’s Community............................................................. 17

Microsoft Dynamics RMS 3.0 and POS 3.0 Solution Strategy ........................................................................ 18


Introduction

This is a statement of direction for partners working with Microsoft Retail Management System and/or Microsoft Point-of Sale. The purpose of this document is to update partners on the product development roadmap for both solutions over the next three years. Currently, Microsoft Retail Management System (Referenced in this document as Microsoft RMS) is on version 1.3. Microsoft Point-of-Sale (Referenced in this document as Microsoft POS) is on version 1.0. New releases of both solutions will be generally available in the first quarter of calendar year 2007 and both will be designated version 2.0.

Our goal is to provide relevant information about our product development strategy so that you can plan your business activities effectively and speak confidently with customers about the development plans for both Microsoft RMS and Microsoft POS.

Related Documents & Information

Microsoft RMS Store Operations

Microsoft RMS Headquarters

Microsoft POS Brochure

Purpose

The purpose of this document is to update partners on Microsoft RMS and POS product development and marketing strategy. The information and product plans contained in this document are based on current market conditions and are subject to change at any time. The information in this document should not be assumed to represent a commitment on the part of Microsoft. The document will be updated as market conditions and product plans change over time.


Microsoft Retail Management System Strategy, Support Offer, and Roadmap

Microsoft® Retail Management System provides small and medium-size retailers with an integrated point-of-sale solution to manage operations within stores and across the business. This solution is ideal for a retailer with more sophisticated business needs, or with multiple stores that need to be centrally managed.

Microsoft RMS is a key part of the Microsoft solution stack as shown in the chart below:

Retail Management

System

Store Operations

GP, AX, NAV, SL

Microsoft Office System

Microsoft Solution Stack.... Microsoft Solution Stack....

Store Front Store Front

ApplicationsApplications

Back of Back of StoreStore


Point of Sale

Retail Management System

Headquarters

Upcoming O/S CertificationsUpcoming O/S Certifications

Platform Platform –– Width Across Retail VerticalsWidth Across Retail Verticals

Dynamics Integration

Dynamics Integration ––Solution Depth and Scale

Solution Depth and Scale

There are two main objectives for the development efforts: 1) Building the best-in-class POS platform on which our partners can build and extend the solution to new verticals. 2) Offer a complete end-to-end solution leveraging the Microsoft Dynamics line of business applications through Microsoft and partner integrations.

These two key development goals are in support of the following business objectives:

1. Increase Partner Business Opportunities

Our goal is to accelerate the core business of Microsoft RMS and help partners increase their opportunities by providing a stronger solution for small and midsize companies by expanding the functionality in the core solution, as well as offering the necessary tools with which partners can most effectively build and extend the solution. We will also maintain and improve the flexibility, adaptability and ease of use that customers have grown to expect from Microsoft.

2. Secure the Microsoft RMS Investment of Partners and Customers

Microsoft is committed to developing, supporting, improving, and maintaining Microsoft RMS. We will continue to improve performance and broaden the existing functionality in Microsoft RMS, allowing partners


to reach new customers while giving them the chance to expand the breadth of installations with existing customers. This includes:

• Microsoft Retail Management System re-branded as Microsoft Dynamics RMS with the 2.0 release anticipated to be available in Q1 of calendar year 2007

Why Microsoft Dynamics

Microsoft Dynamics Partner Brand Use Guide

http ://blogs.msdn.com/satyanadella

This is a key milestone for the solution as it sends a clear signal to partners and customers as to Microsoft’s commitment to POS and its importance to the greater Microsoft strategy.

• Releasing a new Hardware Compatibility Tool to help build new customer solutions and upgrade existing customer implementations

• Updating the Solution Finder tool for Microsoft RMS to significantly improve the speed and ease with which vertical-specific solutions can be built and provided

• Offering Microsoft Dynamics RMS 2.0 with numerous feature upgrades and enhancements as part of a roadmap that also includes a highly significant 3.0 release - This is meant to provide a strong value proposition for new support plan sales as well as attach for current customers.

• Enhancements to the Microsoft-provided Microsoft Dynamics GP integration • Launch of a Solution Developer’s Community • Improving the standard functionality for new and existing countries starting with our 3.0 release • Microsoft Dynamics GP, Microsoft AX, Microsoft NAV integration strategy

*Note – Microsoft Dynamics ERP integrations are not committed deliverables of the 2.0 release – For strategy with respect to Microsoft Dynamics RMS 3.0 and Microsoft Dynamics ERP please see the section on version 3.0 deliverables later in the document

Microsoft RMS Support Offer While the inclusion of maintenance is mandatory for Microsoft Dynamics GP, AX, NAV, and SL, this is not currently a requirement for Microsoft RMS. The following points should be considered when selling licenses of Microsoft RMS as they strongly support the inclusion of a support agreement as part of the solution implementation:

• The significant release activity planned including the move to .NET, feature enhancements, and SDK release.

• The inclusion of Microsoft RMS as a key integrated component within end-to-end Microsoft Dynamics solutions

As the feature set, integrations, extensions, and release frequency for Microsoft RMS grow, it will be critical that customers are properly supported. Additionally, in-depth E-Courses will now be included as part of all Microsoft Dynamics RMS 2.0 support plans.


Microsoft RMS Roadmap

The following chart shows the roadmap for Microsoft RMS through the 3.0 release.

RMS RoadmapRMS Roadmap

SQL 2005 SupportSQL 2005 Support

Win2K SupportWin2K Support

RMS RMS

1.3 R1.3 R

•• Enhanced Matrix Enhanced Matrix FunctionalityFunctionality

•• Store Level Cost Store Level Cost Adjustments Sync Adjustments Sync with HQwith HQ

•• Adding % Discount Adding % Discount to Mixto Mix--andand--Match / Match / Buy One Get One Buy One Get One ScenariosScenarios

•• Quantity on Hand Quantity on Hand Filter for POFilter for PO

•• Receipt of PO and Receipt of PO and Item Find Based on Item Find Based on Supplier NumberSupplier Number

•• Replace HW dongle Replace HW dongle with MS standard with MS standard activationactivation

Product ActivationProduct Activation

RMS RMS

2.02.0

RMS RMS

3.03.0

Inventory andInventory andPurchasingPurchasing PaymentPayment HardwareHardware

•• AVS SupportAVS Support

•• Support Tax on Support Tax on Shipping ChargesShipping Charges

•• Support of Hydra Support of Hydra DevicesDevices

•• Updated online training Updated online training content has been added to the content has been added to the RMS Foundation Library for RMS Foundation Library for customers who are enrolled in customers who are enrolled in a Maintenance Plan a Maintenance Plan ••2 New eCourses for Store 2 New eCourses for Store OperationsOperations••1 New eCourse for Headquarters1 New eCourse for Headquarters

•• Microsoft Microsoft Dynamics RMSDynamics RMS

Microsoft Microsoft Dynamics Dynamics BrandingBranding

Microsoft Dynamics RMS Version 2.0 Detail and Version 1.3 Discontinuation

Microsoft RMS version 1.3 will continue to be sold for 45 days after GA of 2.0. The current version will be supported for 5 years from the time of commercial release after discontinuation.

List of Features ________________________________________________________________________________

Product upgrade

Microsoft Dynamics RMS 2.0 will support a full upgrade from v1.3. RMS 2.0 will support an in-place upgrade and will also install as a fresh deployment. Please see section on product activation for further details.

Product activation

To simplify licensing, distribution and deployment of Microsoft Dynamics RMS 2.0 there will be a move away from the hardware dongle copy protection to the Microsoft standard product activation process. In RMS Store Operations the dongle contains the number of licenses for the POS client and the dongles have to be individually programmed to support each configuration. Currently, if a user wants to add


additional lanes in a store he receives a new physical dongle and returns the old one for a refund. Similarly, in HQ the dongle controls how many stores can connect to the HW Server.

The new method of activation:

o Dongles will replaced by product activation keys.

o Distribution of the new keys will remain consistent with the current process.

o Both a fully packaged product and single upgrade pack will be made available.

o Headquarters licenses will now be available by the store.

o Customer activation will be possible through both the internet and call centers

It is important to note that the new activation strategy means that users having deployed multiple stores with a version lower than 2.0 will have to upgrade all existing locations when adding an additional store or implementing an upgrade. 2.0 will not be compatible with lower versions.

The activation process will provide similar functionality as Microsoft POS.

1) Evaluation mode: User can bypass the key entry/activation. The application will time bomb after a set period of time. The install can be converted to FPP by entering a valid key.

2) FPP key: Enter the key and provide a 15 day grace period for activation. 3) OEM key: Allows for pre-installation of the application, entering the OEM key will not time

stamp the application and will prompt for the key/activation at the next startup. Pricing for the new Store Operations full packaged product, license upgrade pack, and per store Headquarters SKUs will be announced prior to general release.

Matrix items

The support of 3 dimensions will remain unchanged. The user will be able to create new dimensions by manually entering the information. A dimension set will be defined as the combination of the defined dimensions and attributes.

Clicking a ‘Create components’ button will create individual items within the matrix.

The user will also be able to add dimensions to or remove dimensions from an existing (saved) item. In this case the ‘Create components’ will be enabled and the components will be created or deleted based on the new dimension set.


Improved UI for creating and maintaining matrix items

New Quantity View for Matrix Items


Purchase orders New dialogue to add items to PO

Entering qty for matrix item within a PO


An additional modification to PO creation will be the ability to create a new item from within the PO work flow.

Printing PO’s

The existing print functionality will remain; however, additional functionality will now be available allowing PO’s to be printed via an export to Microsoft Word. Those PO’s containing matrix items will be exported to Microsoft Word and printed using the matrix layout. This leverages a tighter overall integration to Microsoft Office.

Hydra devices

Most new signature capture devices also include a MSR, PIN pad and line display. These devices are also referred to as hydra devices. Starting with release 2.0, RMS will support the Ingenico 6550 Hydra device. Pin pad, signature capture, msr, and smart card are all available features of the Ingenico 6550. .

Entry of a cash back amount on the PIN pad device will not be supported. The current workflow of the cashier entering this information will not change.

% Discount

The following discount scenarios will be supported with release 2.0:

• Ability to set percentage or a pricing discounts to buy X get Y quantity discount scheme in the SO manager application

• Ability to set percentage or a pricing discounts to buy X get Y quantity discount scheme in the HQ manager application

• Ability to set percentage or a pricing discount to the Mix and match quantity discount scheme in the SO manager application

• Ability to set percentage or a pricing discount to the Mix and match quantity discount scheme in the HQ manager application

• Add an option to the Quantity discount dialog in HQ Manager and SO Manager to select either “By Price” or “By Percentage”

• Add a Percent Schedule table to the quantity discount dialog in HQ Manager and SO manger when percent discount is selected and Mix and match is the discount scheme

HQ item cost

A feature will be offered with release 2.0 to accurately calculate cost based on weighted average or last cost when cost information is changed at the store level. This will allow for updated cost information at the HQ level and provide an option for the HQ manager to calculate costs based on the last cost or weighted average.

Key scenarios that will be supported: � Ability to upload cost information to HQ from stores � Ability to run accurate Item cost reports at the HQ level

AVS support

Address verification will be included with release 2.0 providing additional information to acquiring banks during the time of authorization. This will give merchants a better rate than they would typically receive without this additional information. The additional information required is Address (Street number, Street name, Apt#, Zip Code).


Key scenario to be supported:

1. Allow the merchants to get the best possible credit card discount rate when: a. A merchant’s card reader is not working so all credit cards must be hand

entered. b. A cardholders magnetic swipe cannot be read

Item find on supplier number

The find feature will have supplier reorder number added as a searchable field allowing merchants to query the item list based on that attribute.

Key scenarios to be supported: � Ability to find items based on the reorder number � Ability to find items with like reorder numbers

Quantity on hand filter

The filters provided in the inventory wizard will be enhanced to provide an option for quantity on hand. As an example, this will allow a merchant to change the sales price only for items in stock within a given department.


Microsoft Point-of-Sale Strategy, Support Offer, and Roadmap

Microsoft® Point of Sale is an easy-to-use business software application that enables small, single-store retailers to track sales, inventory and customer information. Designed to replace a cash register, Microsoft Point of Sale saves time and money, automating stores at an affordable price.

Microsoft POS is a key part of the Microsoft solution stack as shown in the chart below:

Retail Management

System

Store Operations

GP, AX, NAV, SL

Microsoft Office System

Microsoft Solution Stack.... Microsoft Solution Stack....

Store Front Store Front


Back of Back of StoreStore


Point of Sale

Retail Management System

Headquarters

Upcoming O/S CertificationsUpcoming O/S Certifications

Platform Platform –– Width Across Retail VerticalsWidth Across Retail Verticals

Dynamics Integration

Dynamics Integration ––Solution Depth and Scale

Solution Depth and Scale

There are two main objectives for the development efforts: 1) Building the best-in-class POS platform on which our partners can build and extend the solution to new verticals. 2) Offer a complete end-to-end solution through a strong integration to Microsoft Office Accounting 2007.

As part of the powerful integration to Microsoft Office Accounting 2007, a copy of the Professional Edition of Microsoft Office Accounting 2007 will be included with every box of Microsoft Point of Sale. The retail price will remain at $799 providing an extremely strong value proposition and sales story.

Additionally, Microsoft POS will be moving under the Microsoft Dynamics brand for the 2.0 release. The official brand designation will be communicated by the end of September, 2006.

POS Support Offer

Enhancing the customer experience and offering a strong value proposition are key strategies for the Microsoft POS support offer. The following changes will be made with release 2.0 to achieve this:

• 30 days of free initial support will come standard with each POS license sold. Options for a full year plan as well as per incident offers will be available.


• The support offer will cover both POS as well as Microsoft Office Accounting 2007 to provide a single process and umbrella of coverage in the event that both solutions are implemented in a full end-to end solution.

Microsoft POS Roadmap

The following chart shows the roadmap for Microsoft RMS through the 3.0 release.

POS RoadmapPOS Roadmap

New and New and Enhanced Enhanced FeaturesFeatures

•• Task Pad Task Pad ImprovementsImprovements••Role BasedRole Based

••More More CustomizationCustomization(Including: Images, (Including: Images, fonts, colors)fonts, colors)

•• Feature Feature ““CentersCenters””•• Overview pages Overview pages provide shortcuts provide shortcuts and visual links to and visual links to entity relationshipsentity relationships

•• Item ReceiptsItem Receipts••Receiving Receiving decoupled from decoupled from POPO’’ss

••Allows payment of Allows payment of partial POpartial PO’’ss

Small Business Small Business SuiteSuite

•• Single .exeSingle .exe

•• Enhanced Setup Enhanced Setup WizardsWizards

•• Online TutorialsOnline Tutorials

•• Direct Hardware Direct Hardware SupportSupport•• Symbol ScannerSymbol Scanner

•• MagTek MSRMagTek MSR

•• APG Cash DrawerAPG Cash Drawer

•• Ingenico 3010 PINIngenico 3010 PIN•• VeriFone 1000 PINVeriFone 1000 PIN

Simplified Installation Simplified Installation and Out of Box and Out of Box ExperienceExperience

POS POS

2.02.0

•• Out of box support Out of box support for both Vital and for both Vital and FDCFDC

•• Gift card and check Gift card and check supported via FDCsupported via FDC••Support for MICR but Support for MICR but not check imagingnot check imaging

Flexible PaymentsFlexible Payments

POS POS

3.03.0

Partner opportunity Partner opportunity with respect to with respect to both gift card and both gift card and check imagingcheck imaging

•• Seamless entity Seamless entity and transaction and transaction level integration level integration to Microsoft Small to Microsoft Small Business Business AccountingAccounting

Microsoft Microsoft Dynamics Dynamics BrandingBranding


POS Version 2.0 Detail and Version 1.0 Discontinuation

Microsoft POS version 1.0 will continue to be sold for 45 days after GA of 2.0. The current version will be supported for 5 years after commercial release.

The commitment to providing a strong, feature rich end-to-end solution and user experience is achieved in POS Version 2.0 through the seamless integration to Microsoft Office Accounting 2007. The strategy for packaging and support detailed above highlights the value to the customer. The following screen shot represents the ease of integration with the Microsoft POS application.

Microsoft Confidential


The following charts show visual examples of the POS UI with respect to Task Pad improvements, Feature Centers, and Item Receipt at the POS:

1) Task Pad Enhancements

2) Feature Centers


3) Item Receipt at the POS

Microsoft Dynamics RMS 3.0 and POS Version 3.0 Preliminary Deliverables

• Point-of-Sale gains multi-store capability

• Microsoft Dynamics RMS migrates to a .Net Architecture

• Both solutions have a consistent user interface

• A hosted headquarters is launched to support POS multi-store and basic implementations of Microsoft Dynamics RMS

• Retail specific modules will be created for Microsoft Dynamics ERP solutions to allow them to function as headquarters in an end-to-end Microsoft Dynamics implementation.

• Microsoft developed and released connectors to Microsoft Dynamics ERP solutions

• Release initial Solution Developer’s Kit


Microsoft RMS and Microsoft POS Joint timeline

TimelineTimeline

May ‘06 – RMS 1.3

Refresh July ‘06 - WPCQ1‘07 –

RMS 2.0 / POS 2.0

Q1‘08 –

RMS 3.0 / POS 3.0

Published Statement Published Statement of Direction andof Direction andRoadmapsRoadmaps

••.Net Architecture.Net Architecture

••Consistent UIConsistent UI

••Hosted HQHosted HQ

••Dynamics IntegrationDynamics Integration

••SDKSDK

-- HooksHooks

-- APIAPI’’ss

••MultiMulti--StoreStore

JuneJune’’0606

•• New New Hardware Hardware Compatibility Compatibility tool complete tool complete with updated with updated content and content and featuresfeatures

•• Dynamics Dynamics Branding for Branding for both RMS and both RMS and POSPOS

Microsoft RMS and Microsoft POS Solution Developer’s Community

In support of the upcoming major releases of both Microsoft RMS and Microsoft POS, a Solution Developer’s Community will be launched in 2006. This program is meant to provide valuable feedback on the development of the solution developer’s kit, hosted HQ, and Microsoft Dynamics RMS 3.0 .Net solution

There are two goals for this community:

1) Beta Testing

a. Allow partners to install, test and provide feedback on quality and minor enhancements.

b. Will span several months and may require up to 5-10 hours of testing/week. Timing is TBD

2) Custom solution development via SDK

a. Allow partners to engage early to develop new solutions as well as migrate existing solutions – Ready to launch at 3.0 GA.

b. Will span several months with the time requirement dependent on the solution being developed/migrated.

Additional detail and milestones during webinar in August of 2006

.


Microsoft Dynamics RMS 3.0 and POS 3.0 Solution Strategy

Rel. Rel. 3.0(Q13.0(Q1’’0808) end) end--toto--end retail solution strategyend retail solution strategy

Point of Sale

Store Operations

Supply ChainManagement

Retail Management

Financials/HRP

Microsoft Office

Accounting 2007(SBA)

Enterprise

Microsoft Dynamics RMS

ISV

ISV

ISV

ISV

ISV

ISV

C

C

C

C

C

C

C C

C

Connector

Above Store

Store

MS live service(Hosted HQ)

C

Single Store

Multi Store

C

C

Microsoft Dynamics

Lower Small Business (LSB)

Core Small Business (CSB)

Mid-Market

Microsoft Dynamics solution for Small Business

POS

Microsoft Dynamics Solution

C

C

Multi Store

C

CSingle Store

Customer for Life

C

C

Hosted HQ

C