Microsoft Accelerates Insight and Innovation for Manufacturers by Unveiling Peak Performance Initiative

More Than 20 Companies Support Development of Microsoft-Based Solutions to Drive Efficiency and Innovation Across the Manufacturing Value Chain

CHICAGO, March 8 /PRNewswire-FirstCall/ -- Today at National Manufacturing Week 2005, Microsoft Corp. (NASDAQ:MSFT) announced its Peak Performance Initiative designed to help manufacturers accelerate insight through advanced analysis services, drive innovation through collaboration, and improve performance via increased visibility into operations across the manufacturing value chain. Microsoft and its partners are delivering mission-critical solutions focused on four areas: new product development performance, plant floor operations performance, global value chain performance, and sales and customer performance.

Based on extensive research and feedback from partners, customers and industry experts, the Peak Performance Initiative employs a number of key Microsoft(R) technologies -- including the .NET Framework, Microsoft Office, SQL Server(TM), SharePoint(R) Portal Server and Project Server 2003

- - as well as a variety of open industry standards to provide a streamlined and cost-effective opportunity for manufacturing customers to take full advantage of their legacy investments. By leveraging Web services to connect key systems, customers and organizations across the manufacturing value chain, the Peak Performance Initiative fosters collaboration between teams and removes the barriers that stifle innovation and competitiveness in the manufacturing industry.

The initiative is being launched with the support of more than 20 partners, all of which have committed to delivering solutions and services that align with Microsoft's initiative to improve insight and innovation across manufacturing value chain. These companies include ABB, Actify, Activplant Corp., Aspen Technology Inc., AWS, Capgemini, CoCreate Software Inc., Dassault Systemes, eBots Inc., Formation Systems, HP, Invensys, Marathon Technologies Corp., PTC, Rockwell Automation Inc., Schlumberger, Siemens, The Orlando Software Group Inc. (OSGI), 3M IPT, UGS Corp. and Unisys.

"Collaborative Manufacturing is about providing a holistic view that encapsulates the entire manufacturing hierarchy -- from plant floor operations and across the supply chain -- to improve operational performance and respond quickly to customer demands," said Andy Chatha, founder and president of ARC Advisory Group Inc. "A manufacturer's approach to software is critical for meeting the needs of today's complex infrastructure requirements, and it is this long-term vision that will ultimately provide a significant advantage to those who adopt these forward-looking strategies. Microsoft's manufacturing Peak Performance Initiative embraces the ideals of Collaborative Manufacturing and extends it via a reliable and interoperable platform that can be customized by its partner solution providers to meet the specific needs of their customers."

The Microsoft Platform: Foundation for Improved Communication and Collaboration

The Microsoft platform provides a breadth of technologies that enable improved communication and collaboration across the manufacturing enterprise; it also offers robust security and a reliable foundation that partners can use to bring to market solutions that address specific industry needs.

"Manufacturers across multiple vertical industries are working to adapt to changing global markets; mounting demand for new product innovation; increasing pressure to reduce costs; and the need for improved insight into their operations, supply chain and customer management," said Charles Johnson, worldwide managing director of manufacturing at Microsoft. "Microsoft's platform and .NET technologies deliver the integration, communication and collaboration capabilities that manufacturers need -- at a lower total cost of ownership and with a faster return on investment. We then work with ISV and SI partners that have the industry knowledge and expertise to deliver specific, targeted solutions that address these challenges."

Microsoft's Peak Performance Initiative will focus on delivering solutions that address four key areas:

New Product Development Performance

Bringing new products to market quickly is critical to the future of manufacturers' businesses across all industry segments. However, fragmented business processes, a geographically dispersed work force, and a lack of standards across the supply chain hinder the product development cycle. By using the Microsoft platform and Web services, manufacturers can reduce product development times and seamlessly collaborate on new product development initiatives. For example, Microsoft Office 2003 and SharePoint Portal Server use Web services to help teams share and collaborate on product and design information. Manufacturers also can deploy Microsoft Office Project Server 2003 to manage schedules and resources, and automate project-management capabilities. Key Microsoft partners are bringing to market innovative Microsoft-based solutions that help manufacturers realize their true collaborative product development capabilities.

Plant Floor Operations Performance

Even the smallest plant floor inefficiencies can translate into significant losses for global manufacturers. Gaining visibility into plant floor operations represents a critical step for manufacturers intent on bringing products to market on time and on budget. Microsoft's Peak Performance Initiative facilitates plant floor operations by embracing prevailing standards such as OPC to promote interoperability across the plant floor environment and transform raw data into actionable intelligence without lengthy implementation timetables. Managers can streamline and enable greater visibility into plant floor operations by using SQL Server to capture and store plant floor data and instantly transport that data to SharePoint Portal Server. Microsoft partners are building innovative solutions based on these technologies to help discrete and hybrid manufacturers gain greater visibility into their business processes and react more quickly to changes on the plant floor.

Global Value Chain Performance

Today's supply chain requires global, real-time insight across the value chain. Manufacturers are pressured to adopt lean manufacturing best practices, but struggle to justify the hefty investment that typically accompanies such initiatives. Microsoft is committed to helping its partners and their customers leverage their legacy investments and extend their capabilities to optimize supply chain performance. For example, by extending the Microsoft infrastructure that the majority of large and small suppliers already have in common -- such as Microsoft Office 2003 -- both ends of the supply chain can gain visibility into critical business processes via the Microsoft platform.

Sales and Customer Performance

Continuity of service is a major theme for manufacturers that understand the value of complete life-cycle management. Manufacturers across all industry segments struggle to integrate disparate sales and customer systems that impede their ability to capture a unified view of their various service channels. Microsoft's Peak Performance Initiative eases integration efforts and provides manufacturers with a closed-loop model that accelerates users' ability to quickly capture and integrate data that will improve internal business processes and enable them to provide customers with superior customer service.

Microsoft's Peak Performance Initiative uses open industry standards and Web services, as well as several manufacturing-specific standards such as OPC, S-99, S-95, radio frequency identification (RFID), OAGIS and UCCNet to provide manufacturers with a flexible architecture that enables them to make optimal use of their legacy infrastructure. With a focus on established, industry-approved standards, the Peak Performance Initiative drives simplicity, consistency and true choice throughout the solutions ecosystem.

In addition, Microsoft's manufacturing team has identified challenges specific to various vertical industries and intends to announce its efforts in automotive, consumer packaged goods, high tech, and oil and gas over the next several months. Microsoft has invested more than $6 billion (U.S.) in research and development (R&D) this year on technologies that fulfill its evolving vision for the future of computing. The company also has created an internal group focused on understanding the long-term vision of its companywide R&D efforts and deciding how these efforts apply to vertical industries, such as retail. The group is playing a key role in demonstra ting how innovations based on Microsoft's current and future technologies can come together to meet evolving business needs.

About Microsoft in Manufacturing

Microsoft, in conjunction with industry-leading partners, delivers enterprise solutions to a range of manufacturers including those in vertical industries such as automotive, chemical, consumer packaged goods, high technology, and oil and gas. These industry-specific solutions provide a flexible, scalable and reliable platform that enables businesses to be more agile and connected. As a result, manufacturers are empowered to shorten product development cycles, integrate operations with partners and suppliers, acquire and share intelligence in real time, and more easily communicate with customers. More information about Microsoft in manufacturing can be found online at http://www.microsoft.com/manufacturing

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.