Spencer Darrington discusses how Microsoft has matured its marketing supply chain by implementing the Global Services Gateway (GSG) powered by K2 software. The GSG provides a single portal for marketers to request services, provides real-time status updates, and enables flexible workflows. This has increased efficiency by 10-15% and scaled to support over 4,000 users across 99 countries. Darrington sees opportunities to further optimize the marketing supply chain by integrating additional teams and developing mobile and web services capabilities to continue driving costs savings and improvements.

1. SPENCE DARRINGTON
Director SMSC Global Operations, Microsoft
POWERING THE MARKETING SUPPLY CHAIN

2. TODAY
BACKGROUND
SUPPLY CHAIN AND MARKETING
K2 + GLOBAL SERVICES GATEWAY (GSG)
GSG DEMO
LOOKING AHEAD

3. BACKGROUND

4. BACKGROUND
CustomerMarketer
+100 yrs
ago
An abbreviated history of the customer conversation
CustomerMarketer
Today
CustomerMarketer
@ Microsoft
7,000+ 1B+
Shared
Service

5. BACKGROUND
SMSCs
SMSC global execution footprint
Sales & Marketing Service Centers (SMSCs) provide shared services for marketing execution
SMSC scope of marketing execution
email web socialevents
reportinglead mgmt
SMSC stats (last 12 months)
140k
services
4.7/5.0
sat
+450
ww staff
99
markets
+3500
requestors
Pressure on marketing budgets have driven SMSC growth
FY09
FY14
$3.5M $30.0M
+757%
Cost pressure = SMSC growth
7

6. SUPPLY CHAIN AND
MARKETING

7. SUPPLY CHAIN AND MARKETING
CustomerMarketer
Problem: getting marketing messages out to customers is an inefficient process
H.O.F.

8. Process
SUPPLY CHAIN AND MARKETING
Thinking about marketing communications as supply chain activities opens door to optimization
CustomerMarketer
Suppliers Inputs Outputs Customers
Supply Chain: people, activities, information and resources involved in moving a product from supplier to customer*
SMSCCampaign Emails, websites,
tweets, etc.
*Source: www.supplychaindefinitions.com

9. MATURE SUPPLY CHAIN - MANUFACTURING
Simplified view of automotive supply chain
Suppliers Inputs Process Outputs Customers
Interconnected, mature supply chain systems
Tires
Seats
Windshields
Tire supplier
Seat supplier
Glass supplier
Assembly Plant
Dealer 1
Dealer 2
Dealer 3
Customer 1
Customer 2
Customer 3

10. MATURE SUPPLY CHAIN - MANUFACTURING
Simplified view of automotive supply chain
Suppliers Inputs Process Outputs Customers
Interconnected, mature supply chain systems
Tires
Seats
Windshields
Tire supplier
Seat supplier
Glass supplier
Assembly Plant
Dealer 1
Dealer 2
Dealer 3
Customer 1
Customer 2
Customer 3
Benefits of mature supply chain
Cost
efficiencies
Reduced
lead time
Improved
quality
Maturing the marketing supply chain has enormous upside
1970 VW Bug ~$11.5k ~40 labor hrs ~50-75k miles
2014 Nissan Versa ~$12.0k ~28 labor hrs ~150-175k miles
*Sources: www.nissanusa.com, 2008 Harbour Productivity Report

11. MATURING SUPPLY CHAIN - MARKETING
Suppliers Inputs Process Outputs Customers
Customer (Asia)
Customer (EMEA)
Customer (LATAM)
Asia SMSCMarketer (Asia)
Previous state of marketing supply chain @ Microsoft
Marketer (EMEA)
Marketer (LATAM)
Marketer (NA)
EMEA SMSC
LATAM SMSC
NA SMSC Customer (NA)
request portals request forms ticketing systems
+100+12 4
Less mature, less connected supply chain systems
+3500 +120,000 7
delivery systems response systems
+120,000 +1B
30+ 30+

12. MATURING SUPPLY CHAIN - MARKETING
Current state of marketing supply chain @ Microsoft powered by K2
Suppliers Inputs Process Outputs Customers
Asia customer
EMEA customer
LATAM customer
Asia SMSCMarketer (Asia)
Marketer (EMEA)
Marketer (LATAM)
Marketer (NA)
EMEA SMSC
LATAM SMSC
NA SMSC NA customer
request portal request forms ticketing system
241 1
Global Services Gateway (GSG) powered by
delivery systems response systems
Future
opportunity
Future
opportunity*
*In operation for 11 months.

13. GLOBAL SERVICES
GATEWAY (GSG)

14. GLOBAL SERVICES GATEWAY (GSG)
GSG uses K2 to significantly modernize the request experience and enable the marketing supply chain
GSG featuresRequestor facing
SMSC facing Flexible workflows
Data driven
assignments
Rich reporting
Shopping cart Real time tracking Auto notifications
Request
portal
Request
forms
Ticketing
system
Workflow database
Smart objects Workflow notifications
Workflow builder
Smart objects / forms
Workflow database

15. GSG DEMO

16. BENEFITS OF GSG / K2
Powering marketing supply chain with GSG / K2 is a high ROI for today and for the future
GSG
Shopping
cart
Real-time
status
10-15% more efficiency
on $25M+ ops spend
Auto
notifications
Rich
reporting
Flexible
workflows
Benefits of using GSG Benefits of using
3.5x more marketers
using tool (1k to 3.5k)
Compliance built in via
workflow approvals
Complete transparency
on resource utilization
Scales quickly: 4k+ users,
99 countries,130k tasks
Rapid dev: smart objects /
forms, and workflow
engine enable V1 in 6mos
Plays nicely w / MSFT stack
(SharePoint,Outlook)
Extensible: can go where
we want (web service)
Data driven
assignments

17. LOOKING AHEAD

18. GSG / K2 OPPORTUNITY FOR FUTURE
On board more marketing @ Microsoft onto GSG / K2 to further drive optimization
Opportunities and investments
Web service
Mobile app
Consumer marketing
Some lessons learned
The devil is in the details
Poor process automated is
still poor process
#YOLO

19. THANK YOU
spencerd@microsoft.com