Sage Group plc · LSE:SGE
Sage — Investor Day (August 2011)
82 slides from Sage's investor day presentation, August 2011
Slide 1: Sage
Slide 2: Agenda
Agenda 8:30 Introduction to Sage: Guy Berruyer, Sue Swenson 9:00 Sage North America Web Strategy: Himanshu Palsule 9:45 Break 10:00 Customer Experience: Dennis Frahmann 11:15 Partnering for the Success of our Customers: Tom Miller 11:40 Open Q&A 12:00 Lunch 1:00 ERP: Laurie Schultz Healthcare: Betty
Slide 3: Introduction to Sage
Introduction to Sage Guy Berruyer Sage Group Chief Executive
Slide 4: Sage at a glance: revenue, customers, profit
$2.24 B Revenue 6.3m Customers Calls per day 36,000 28,000 Business Partners 40,000 $570 M Accountants’ Clubs Members Profit
Slide 5: Sage is #1 Worldwide
Sage is #1 Worldwide* Sage 15% A global publicly traded company Microsoft Over 13,000 employees 10% Over 6 Million customers Over 25 years of experience Oracle 10% Others Intuit 51% 6% SAP Source: *IDC #220937, Worldwide ERP 10% 2008 Vendor Analysis, published December 2009. Based on ERP revenue sma
Slide 6: We Group Ourselves into Four Regional Businesses
We Group Ourselves into Four Regional Businesses Northern Europe Southern Europe North America AAMEA Revenue: $566m Revenue: $620m Revenue: $858m Revenue: $197m 30%† margin 26%† margin 22%† margin 25%† margin South Africa, Australia, France, Spain, Portugal, UK, Ireland, Germany, Singapore, Malaysia
Slide 7: We Offer a Range of Local Industry Specific and Specialized Solutions
We Offer a Range of Local Industry Specific and Specialized Solutions Northern Europe Southern Europe AAMEA North America Accounting/ERP CRM HR & Payroll Payment Processing Construction and Real Estate Distribution/Transport Healthcare Manufacturing Not-for-profit
Slide 8: What Sets Us Apart?
What Sets Us Apart? Customer experience Trusted Local brand focus
Slide 9: Sage's Four Priorities
Sage’s Four Priorities: 1) Improving organic revenue growth 2) Improving our profit margin in the medium term 3) Further developing our web strategy 4) Re-engaging in acquisition opportunities
Slide 10: Focusing on Sage North America
Focusing on Sage North America Sue Swenson CEO, Sage North America
Slide 11: Sage North America at a glance
Solutions 20,000 accountant partners for a broad range of horizontal and vertical industries over business partners $850million 5,000 Customers in revenue in every state and province over 3.2million customers North America
Slide 12: Where We Compete: SME
Where We Compete: SME Enterprise 2% Upper mid-market of Sage’s customer base 16% Lower mid-market of Sage’s customer base 82% Small Business of Sage’s customer base
Slide 13: Sage Solutions
Manufacturing Billing End-to-End business solutions Business CRM intelligence Accounting Solutions Sage Solutions for my industry for every stage access as my business grows mobile emarketing Healthcare ERP Nonprofit Distribution
Slide 14: Delivering a Global Brand
Delivering a Global Brand
Slide 15: Leadership
Leadership Simplicity Trust Integrity Innovation Agility
Slide 16: Exceptional Partner Programs and Channel
Exceptional Partner Programs and Channel ―By being in the Sage Fast Track for Growth program we’ve been able to hit our new sales unit goal during these challenging economic times.‖ Steve Engmann, Competitive Strategies “HireAssist has helped us hire and train the right sales resource resulting in a
Slide 17: Loyal Customers
Loyal Customers ―We’ve built our business by building personal relationships with our customers. Focusing on them is the key to our success. It’s equally gratifying for us to do business with a vendor that works the same way that we do. We enthusiastically recommend Sage!‖ Sue Elliott, owner, Davids
Slide 18: Employees Focused on Customer Success
Employees Focused on Customer Success “I just wanted to say what a great experience it was to work with Paige today. She was magnificent. This kind of customer service you do not get everywhere and, all in all, it is a trademark of Sage. Sage has the best support in the IT field.” Mike Hughes, IT Ad
Slide 19: Enrich Connect Grow
Enrich Connect Grow By delivering By innovating By offering exceptional and investing connected products and to attract new services services customers Extraordinary Customer Experience
Slide 20: In Summary
In Summary We‖re passionate about our customers We‖re expanding connected services and online solutions to provide our customers choice We‖re set to grow
Slide 21: Sage North America Web Strategy
Sage North America Web Strategy Himanshu Palsule
Slide 22: Sage North America - Strategic Framework
Sage North America - Strategic Framework Enrich Connect Grow Maximize New Growth through Performance Customer Connected of Existing Acquisition Services Assets Extraordinary Customer Experience
Slide 23: Enrich Connect Grow
Enrich Connect Grow Extend the Sage Online Web to the Connected Business customer’s Services Solutions desktop Extraordinary Customer Experience
Slide 24: Extending the web to the customer's desktop
Extending the web to the customer’s desktop SData .. Sage’s web protocol to enable collaboration Forecast Accounts Provider SData Provider SData CRM Contract Contract Consumer ERP Consumer Invoices Prices Accounts .
Slide 25: Sage Connected Services
Sage Connected Services
Slide 26: The Reach of the Cloud, The Richness of On-premise
Sage Connected Services The Reach of the Cloud Sage Connected Services The Richness of On-premise
Slide 27: Sage Connected Services
Sage Connected Services Payment Shopping Services Employee Cart Benefit Data Services Services Payroll & Services Payroll Self (Backup etc.) Services Sales, Mobile & Web Marketing & Data Tax Services Lead Gen Protection Compliance Services Services Services Business Electronic Legal Information Invo
Slide 28: In-Product Delivery
In-Product Delivery Customers Services: • Online Payments Service • Online Backup Service • Business Analytics Rules Engine Data Mining Performance Tracking
Slide 29: Delivery of Connected Services
Delivery of Connected Services Sage Connected Services SData In-product Marketplace Sage Marketplace Platform SData Sage Small Business Sage Mid Market Sage Specialized & Cloud Solutions Solutions Solutions Vertical Solutions
Slide 30: Demonstration
Demonstration Sage ACT! Connected Services
Slide 31: Connected Service - Mobile
Connected Service - Mobile Cloud Wireless Sync Contacts/Calendar Offline access Native Device Experience Broad Device Coverage
Slide 32: Sage Healthcare Connected Services
Other Examples …. Sage Healthcare Connected Services Pharmacies Laboratories Payers Gov Agencies Hospitals Sage Payments Clearinghouses HIE / HIN Sage Transaction Services Healthcare Practice Sage Sage Health Network Practices Sage MedWare (on-premise Sage MENDS products) Sage Medical Manager Sage I
Slide 33: Sage Payments Connected Services
Other Examples …. Sage Payments Connected Services Connected Payment All Payment Services Sage Payment Wires Acquirers/Processors Web Apps Gateway via Virtual Processor Switch ACH / e-Check Check Processors Fulfillment Sage Enterprise Payments UI Sage Exchange Platform Sage Accounting & ERP Solution
Slide 34: In Summary
In Summary … • For customers, connected services – solve for unmet business needs – add value with minimal disruption “We’ve had a 276% increase in online giving, and raised more • To partners, connected services money online in December than we – add value while retaining client relationship did al
Slide 35: Sage Online Business Solutions
Sage Online Business Solutions
Slide 36: Market Analysis (Mid Market)
Market Analysis (Mid Market) What we find is that on-premise software solutions have tremendous staying power in the face of rampant industry enthusiasm for Cloud-based applications and….. Global Software Market (US $ billions) $250 $200 $150 $100 $50 On-Premise $0 SaaS 2010 2013 ... According to Fo
Slide 37: Customer Value Proposition
Customer Value Proposition Customers want: • Improved Total Cost of Ownership • Frictionless upgrades • Lower upfront costs
Slide 38: Customer Value Proposition
Customer Value Proposition Those who prefer on-premise solutions: • Like to control the upgrade process • Are concerned about security • Worry about outsourcing something mission critical • Like the ability to customize locally
Slide 39: Flexibility & Choice
In Other Words ... Customers Want The Flexibility to Choose Flexibility & Choice Buy Subscribe Long-term TCO Instant-On On-Site Control Operating Experience Regulation/Compliance Payment Flexibility Existing IT Infrastructure Outsourced IT Upgrade Control / Data Ownership / Integration / Security Ap
Slide 40: Strategy for Online Business Solutions in The Mid Market
Strategy for Online Business Solutions in The Mid Market Provides customers and On-Premise Cloud Hosted partners with deployment Solutions Solutions flexibility Sage ERP Allows us to offer flexible pricing Deployment and payment options choice Factors to consider include: • Internal infrastructure •
Slide 41: Example: Sage ERP Accpac Online
Example : Sage ERP Accpac Online Targeting mid market businesses who are No upfront software • Looking for a quick-start costs • Dynamic and growing No IT Low Per • Unwilling to spend on internal infrastructure User Department • Have Global management needs required Pricing Key Benefits: • Short imp
Slide 42: Giving Choice to Sage SalesLogix Customers
Giving Choice to Sage SalesLogix Customers “Sage SalesLogix offers a well-proven solution with multiple deployment options. Sage SalesLogix provides users with a consistent experience whether they are connected, disconnected, or mobile, with multiple deployment options including on-premises, cloud,
Slide 43: Strategy for Online Business Solutions for Small Businesses
Strategy for Online Business Solutions for Small Businesses Provides choice between full Small Business Accounting on-premise solution with connected services or multi-tenant On-Premise Online Business SaaS in the future Solutions Solutions Ability to grow and scale business Billing Boss Factors tha
Slide 44: Online Business Solutions
Online Business Solutions • Subscription based pricing • No hardware to manage • Simpler upgrades • Sage Advisor Technology Mid-market Small Business • Flexibility & Choice • Single-tenant • Web-native services • Customizable • Multi-tenant • Control • Self-service • Partner involvement
Slide 45: In Summary
In Summary… Our Online Strategy – is about providing choice and flexibility to customers – addresses diverse needs in the mid market – appeals to our partners as they get invited to more deals and continue to play a key role – provides Sage a competitive advantage
Slide 46: Bringing it all together
Bringing it all together
Slide 47: Sage's Web Strategy
Sage’s Web Strategy Connected Services Strategy Collaboration Small Business Strategy Mid Market Strategy On-Premise Solutions Online Business Solutions On-Premise Solutions Billing Cloud Hosted Boss Sage Solutions Payments Choice Flexibility Customer Customer Customer Business Partner
Slide 48: Customer Experience Strategy
Customer Experience Strategy Extraordinary Customer Experience is becoming ―who we are and how we win‖ Sage North America, FY11
Slide 49: Customer touchpoints per second
58 Times per second That‖s how often there‖s a Sage – customer touchpoint
Slide 50: 150+ million touchpoints every month
210,000 every hour 35.2 150+million touchpoints every month million every week 3,500 5million 58 every day every minute every second We are making every touchpoint count!
Slide 51: What Is Your Customer Experience?
What Is Your Customer Experience? Who thinks their general customer experience is positive today? What is the reputation of the technology industry? If I gave you each the homework task of calling a technology/software company for a support question when you leave today, would look forward to it? Sa
Slide 52: Good Customer Service is in Our DNA
Good Customer Service is in Our DNA “I just wanted to let you know how impressed we are with your support group. It’s amazing how helpful everyone is and that they usually think a couple of steps ahead of my problem to let me know what to expect next and what to look out for. Best I’ve ever dealt wi
Slide 53: Extraordinary Customer Experience - The Sage Brand Promise
Extraordinary Customer Experience - The Sage Brand Promise We believe: The Sage Experience should be extraordinary. It is the way we will win in the market. It is our state of mind. It is about: Doing the basics really well and seeking out opportunities to go above and beyond. Creating an experience
Slide 54: To Deliver Our Brand Promise, One Sage, One Culture
To Deliver Our Brand Promise, One Sage, One Culture Leadership Product & Employees Customer Solutions experience starts with people Customer People Product experience innovation drives Service & Partners Customers Support competitive advantage Processes Business & Sales & Measure- Marketing ment Pro
Slide 55: Customer Experience Drives Positive Business Results
Customer Experience Drives Positive Business Results Revenue and growth depend on 3 factors: 1. The number of active customers 2. Average revenue they generate 3. The length of time they stay
Slide 56: What We've Accomplished Already
What We’ve Accomplished Already People • Leadership • Employee training • Employee recognition Product • Focus on quality • Customer input • Key Moments of Truth Process • Voice of Customer • Employee empowerment • Sage Business Care • Voice of Sage • Common infrastructure
Slide 57: Are We Gaining Traction?
Are We Gaining Traction? Average Revenue FY10 Per Customer renewal rates are is trending positive Rising Our employees Product are embracing Net Promoter Scores (NPS) Customer Experience are improving on average across 22products we measure
Slide 58: What We've Learned
What We’ve Learned An extraordinary customer experience . . . Starts with great people and culture Is everything – people, product, and processes Requires first getting the basics right Is more about making improvements to thousands of operational details than big sexy ideas Customer Experience make
Slide 59: Creating a relevant and differentiated experience
Creating a relevant and differentiated experience.
Slide 60: The Sage Advisor
The Sage Advisor Sage Advisor Benefits Getting the most out of your technology Advisor Messages & Sage Employee Virtual Assistant In-Product Chat Sage Advisor Technology
Slide 61: The Sage Advisor Customer Benefits
The Sage Advisor Customer Benefits The Sage Advisor Provides relevant advice on additional features I should be using Proactively warns me when something is wrong Seamlessly delivers updates and helps me discover new capabilities Helps me when he/she senses I need assistance Shows me how other busin
Slide 62: Customer Experience Makes Sage Different
Customer Experience Makes Sage Different Enrich Connect Grow Customer Experience is defining both who Sage is and how we will win. Customer Experience encompasses every touchpoint with our customers – and the people, products, and processes that support hose touchpoints. Sage is investing in all tho
Slide 63: We're Partnering for Customer Success
We‖re Partnering for Customer Success Tom Miller
Slide 64: Software and services are our business, and our core focus is the customer
Software and services are our business, and our core focus is the customer.
Slide 65: Sage North American Partner Ecosystem
Sage North American Partner Ecosystem
Slide 66: Sage Partner Business Opportunity
Sage Partner Business Opportunity 1,200Partner Applications 176 New Product Certifications 110 New Partner Authorizations 300 partner employees 200+ dedicated to Sage solutions Existing Partner Expansion
Slide 67: Our Sage Ecosystem And The Customer Experience
Our Sage Ecosystem And The Customer Experience One Sage Business Sage Partner Business Partner & Sage Customer
Slide 68: The Sage Partner Advantage
The Sage Partner Advantage
Slide 69: Components of Extraordinary Customer Experience
Components of Extraordinary Customer Experience Initial awareness Invoicing Website Marketing Sales Customer Experience Account Proposal management Support Consulting Product/ Implementation Solution Training
Slide 70: Sage Partner Customer Loyalty Program
Sage Partner Customer Loyalty Program “What was the single largest influence on your Purchase?” Accountant Reseller Customer Used Product Reco (31%) Reco (25%) Reco (10%) before 10% (24%) Net Promoter Score (NPS) How likely is it that you would recommend Sage products to a colleague or professional
Slide 71: Customer Loyalty Program - Are We Gaining Traction?
Customer Loyalty Program – Are We Gaining Traction? FY10 Partner participation 55,120 Rising Customers Surveyed Partner Net Promoter Scores (NPS) 400 partner employees Trained in Sage ECE standards are improving on average across All products they represent
Slide 72: Customer Loyalty Program
Customer Loyalty Program “…it gives us an objective view of how our customers feel about the relationship they have with us…understanding where you stand with your customers is critical to success.” Troy Turrentine Tennessee Software Solutions
Slide 73: Extraordinary Customer Experiences
We recognize partners who excel at delivering Extraordinary Customer Experiences
Slide 74: Sage Eagle Award
Sage Eagle Award Highest Customer Loyalty Achievement Kent Arnold Sage partner since 2003 194 customers
Slide 75: Customer Loyalty Program - 2009 Excellence Award Winners
Customer Loyalty Program 2009 Customer Excellence Award Winners Product Customers Sage Tenure Sage ACT! 110 10 Product Customers Sage Tenure Sage ERP Accpac, 115 14 Sage Abra HRMS Product Customers Sage Tenure Sage ERP MAS 200 307 16 Product Customers Sage Tenure Sage ERP MAS 90 and 177 18 200, Sage
Slide 76: The Sage Partner Advantage - Building Knowledge
The Sage Partner Advantage Building Knowledge
Slide 77: Helping Partners - The Sage Partner Advantage
Helping Partners – The Sage Partner Advantage Fast Track for Growth Recruiting Resources Marketing Alliance HireAssist Sales Program HireAssist Marketing Customer Loyalty Program HireAssist Consulting Grow the Hire Preferred Vendors Webcast Lead Builder Business Talent Market Opportunity Tool Portfo
Slide 78: Building Knowledge
Building Knowledge Field Workshops 400 2,100 220 Customer Experience 40 Sage Leadership Sales Academy Academy 2,200 Competitive Series 300 Consulting Academy 5,000 Sage University Certifications
Slide 79: Partner Programs That Drive New Business
Partner Programs That Drive New Business HireAssist & Fast Track for Growth Over $20 million Higher in new license revenue generated by program participants Partner satisfaction Fast Track for Growth 30% 665 Partner participation new license increase
Slide 80: Sage Channel Program Awards
Sage Channel Program Awards CRN Channel Chief 2006 VAR Business 5-Star Partner Programs CRN Channel Chief 2007 VAR Business Annual Report Card CRN Channel Chief in the SMB 2008 Software Suites category CRN Channel Chief 2009 Everything Channel 5-Star Partner Programs CRN Channel Chief 2010 Everythin
Slide 81: Sage Channel Strategy Framework
Sage Channel Strategy Framework Enrich Connect Grow Support and Focus on reward partners Enable partners delivering an for selling to drive ECE connected new business experience services Extraordinary Customer Experience
Slide 82: Together, we're successful
Together, we‖re successful.