ERPA Leadership Meeting

November 6-7, 2013

Meeting Objectives
One Team
 Build trust
 Open communications

Annual plan understanding and commitment

Measurements & management system
Communications plan

© 2013 Epicor Software Corporation

One Epicor

One Vision
One Team
One Voice
1
2

© 2013 Epicor Software Corporation

How we operate

Goals
Communications

Performance
Measurement
Planning

Management system
© 2013 Epicor Software Corporation
Our Mission:
Inspiring customer success
through innovative technologies.
Our Values
FY13 ERP Americas At a Glance

NPS
Software Growth

Revenue Growth
B-
New Customers Added

Epicor Recognition

© 2013 Epicor Software Corporation

FY13 ERP Americas Customer Base
By Size By Geography
90%
$500m+

4%
Large
$125-499.9m

5%
UMM
$50-124.9m
MM

8%
$10-49.9m
LMM

30%
6%
2% 2%
$3-9.9m
Small

53%
US Canada Mexico LAC

© 2013 Epicor Software Corporation

FY13 ERPA Manufacturing Industries
Fasteners, Valves,
Springs & Fittings

Rubber & Plastics

Industrial Machinery
Fabricated Metals

Electronics & Hi-Tech

© 2013 Epicor Software Corporation

FY13 ERPA Top 5 Distribution Industries
Plumbing Wholesale

Fastener

Industrial
Electronics & Hi-Tech

Electrical

© 2013 Epicor Software Corporation

FY13 ERPA Services Customer Base
Business Services

Government and Education

Professional Services
Hospitality & Entertainment

Financial Services

© 2013 Epicor Software Corporation

FY13 ERP Americas Team
1558 Strong…And Growing
Small Offices or Remote 511

Monterrey 321
Professional Services
Product Development, 25%
Minneapolis 258
32%
Philly 190

Toronto 63

Westminster 43

Hyannis 42
Marketing, 3%
Denver 42
Customer Support, 19%
Irvine 40
Sales
19% Content & Connectivity
2% San Diego 33

Vancouver 15

© 2013 Epicor Software Corporation

Our Markets are Large and Growing

10.5%
6.7%
6.3%
6.2%
5.2%

10.3%

Manufacturing HCM Financial Distribution

*Source: Gartner, Inc. “Forecast Analysis: ERP Software, Worldwide, 2Q13 Update” (Aug. 8, 2013)
**Source: Gartner, Inc. “Forecast: Enterprise Software Markets, Worldwide, 2010-2017, 3Q13 (Sep. 16, 2013)

© 2013 Epicor Software Corporation

Gartner Magic Quadrant – Visionary 4th Time

• Great technology
• Great solutions
• Great vision
• Next Step: Great Execution

© 2013 Epicor Software Corporation

New Customer Additions Key to Growth

Eroding customer base -%

New customer
acquisition key to growth
Need clear migration
path for legacy

FY12 8% FY13

-10%

© 2013 Epicor Software Corporation

FY13 ERP Americas NPS
Benchmark: +25%
Why is NPS Important?
Sentiment of our customers
Promoters/Detractors
influence buying decisions
Promoters are less price
sensitive and more loyal.
Detractors cost us more
Can indicate future growth

Q3 FY13

© 2013 Epicor Software Corporation

FY14 Goals & Metrics

Plan Our Route

FY14 ERP Americas Goals
Grow NPS by 20 points
Grow Software Revenue by 12%
Pipeline Coverage of 5x
100% of Team Members with Career
Development Plan
Grow Employee NPS by 5 points
Solution Innovation

© 2013 Epicor Software Corporation

FY14 ERP Americas Software Split by Region

4% 3%

US & Canada
Mex
S. America

92%

© 2013 Epicor Software Corporation

FY14 ERP Americas Software % by Industry
Manufacturing 63.8%

Distribution 33%

HCM 3%

Financial Services 1.2%

Manufacturing Distribution

iSolutions Other Prelude, 5% Other, 2%

Enterprise
2% 4%
3%
HCM
6%
CMS
3%
MES
4%

Eclipse, 24%
Prophet 21, 69%

Epicor ERP 9
78%

© 2013 Epicor Software Corporation

How will we achieve FY14 Goals / Metrics
Towering Strengths

Visionary company
Innovative company with innovative technology
Best skilled people
Deep industry expertise
Globally focused
20k+ customers

© 2013 Epicor Software Corporation

Transformation = Substantive Change
From To
Share Taker Market Maker
Transactional Customer Customer Loyalty & References
Satisfaction
Cost and Profit Focused Profitable Growth
Talent Based on Industry practices, leverage our
Platform/Product expertise
Sales and Opportunity Driven Market Driven
Change is Threatening Change is Opportunity

© 2013 Epicor Software Corporation

Strategies for Success

SUCCESS

© 2013 Epicor Software Corporation

Strategies for Success: Growth

1 2 3
Move Upmarket New Verticals Emerging Markets

© 2013 Epicor Software Corporation

Strategies for Success: Operational Excellence

Productivity councils established

Cascading goals, metrics and dashboards

Communication plan

Continuous improvement – executive initiatives &

Six Sigma

Synergies

© 2013 Epicor Software Corporation

Strategies for Success: Customers First

Do What We Say We Will Do

Marketing Supporting the customer when they
need it
Development Sales Implementation success & satisfaction
Selling to customer pains
CUSTOMER Ensuring partners are setup for success
Innovative solutions, meet customer
Channel / Professional needs
Partner Services
Customer
Support Accountability

© 2013 Epicor Software Corporation

Strategies for Success: Talent

People Strategy Investing in Our People

Align to Business Goals Employee Development

Plans
Empower
Employee Performance Plans
Accountability
Training Plans
Teamwork &
Collaboration Employee Mobility
Customer 1st Communication /
Conversation

© 2013 Epicor Software Corporation

Talent Management Update
Anne Gildea-Olt
 Growth

Talent Management Impact Operational Excellence

Customer Success
Talent Management

 Attract and retain top talent

 Engage employees; facilitate innovation and
productivity
 Identify competencies/skills needed for
today/tomorrow
 Create talent pool for future leadership
positions
 Enhance employee NPS score

© 2013 Epicor Software Corporation

 Growth
Operational Excellence

ERPA Talent Management System Customer Success

Talent Management

 Goals
 Development Plans
 Performance Appraisals
 Mid – Year Review (goals & development plans)
 Promotion Review Board
 Talent Management Meeting
 Corporate Training
 Career Mobility

© 2013 Epicor Software Corporation

ERPA FY14 HR Focus
ERPA FY14 HR Dashboard will focus on these
metrics:
 Reducing attrition of new hires
 Developing and engaging our employees
 Reducing time to fill open positions
 Improving our NPS score
Leadership Call to Action

All employees have:

Goals
Development Plans
Performance Appraisals

Leaders support development initiatives

Management training
Employee mobility
ERP Americas PS Team
EAST ERP Team West ERP Team

Chris Farrell Paul Yaros Rob Martin Barry Neal

Michael Sakmar Dan Vedral Kerry Griffith
VP MFG– West Dir. MFG – East VP Distribution Steven Swed Jay Paquette
Ed Marreel Arni Jegers
Grant Rexer

Extended PS Management Team

Gonzalo Nunez Matt Keitlen Michael Jos Automotive & Print & Packaging
VP MFG – LAC Plastics MES/MEI
VP HCM VP Sols Practice
Dennis Miriani Dunn Gee
Chris Braznick David Gasner
Craig Christiansen Jackie Chodolak
Dave Orstad Kathleen. Stringfield Bob Magee
Jon Snow
Sr. Dir. Center of Sr. Dir. Customer
Director BCS Distribution Svc Eng. & Training
Delivery Advocacy
Rick Montegna Wendy Sanders
Susan Chris Turner
Lori Salamone Mockenhaupt Mary Mentzer
Scott Lennartson
Sr. Manager David Schmidt
Interim PSA Lead Chris Abato
PS Ops and CI

HCM Center of Delivery

LAC
Scott Mike Heard Jim McCarter Chris Barnes
PSA Team Lennartson Bill Chiari Ben Nixon
David Madison Dale Olafson
PMO Team Adrian Segura Cindy Olson Terrie Ginn Jay Sheldon Jeff Forsberg Rafael Nunez
Mary Beth Sword Wanda Opacich
Ron Smith Oscar Sepulveda