OracleServiceContracts

Minimize Service Revenue LeakageTransforming Customer Support from a Cost Center to a Profit Center

Kevin DeMartelaerePrincipal Solutions Consultant

Agenda

• Oracle Service Contract Flows / IntegrationsService Contract Creation ProcessesViewing Entitlement in Oracle Service ApplicationsService Contract ‘Action’ ProcessesContract Self Service Possibilities

• Measuring Service Contract Value Daily Business Intelligence

• Customer Successes

Why Contract Management Matters

Additional (New) Contract Revenue 1-2%

Renewal Revenue 30%

Compliance with Regulatory Guidelines 90-100%

Operating & Processing Costs 10-30%

Contract Negotiation Cycle Time 50%

Volume of Erroneous Payments 75-90%

AutomateElectronic

CoTermination

Service ProgramsAnticipateT’s & C’s

“Managing contracts is nothing new – what is new is their complexity. Fortune 1000 companies have [on average] 20,000 to 40,000 contracts. Companies spend approximately 50 basis points of their revenues to manage their contracts, which can be reduced 20-50% using contract management software.

- Source: Goldman Sachs, Global Equity Research

Oracle Service Contracts Integrated Solution

CustomerCustomer

Service Provider / Product Manufacturer

Sales

Service

Contract Mgr

Entitlements

Entitlements

OrdersOrders

T&CsT&Cs

ServiceContractsRepository R

enew

CreateContract

ProvideService

VerifyEntitlement

DefineCoverage

Bill &Collect

Integration Returns, RMAs

Products & WarrantiesService / Usage Agmts

Bill & Invoice3

Service Requests4

Renewal Notifications5

Proposals, Quotes1

2

• AR - Billing, Credit, RevRec• Order Mgmt - Orders, Returns, Adv Pricing• Sales - Quoting, iStore, TeleSales

• Entitlement: TeleService, Field Service, Depot Repair, Mobile Service, PM

• Install Base

Points

Service Contract Selling ProcessesIncrease Efficiency Through Automation & Integration

SalesOrder,

IncludedWarranty

SalesOrder,

IncludedWarranty

FulfillFulfillCreate IB& Service Contract

Create IB& Service Contract

AccurateEntitlement

Prevents Leakage

AccurateEntitlement

Prevents Leakage

WarrantyTo Expire,Notify Rep

& Customer

WarrantyTo Expire,Notify Rep

& Customer

Extended Warranty Selling,

No LapseIn Service

Extended Warranty Selling,

No LapseIn Service

Analyze: Revenue

Opportunity

Analyze: Revenue

Opportunity

• Entitlement is part of product cost to customer (e.g., 90 day warranty)• Assigned to product in a Bill of Material• Warranty contract not renewed as initially delivered

SalesOrder,

Extended Warranty

SalesOrder,

Extended Warranty

Fulfill,Invoice, Rev Rec

Fulfill,Invoice, Rev Rec

Create IB& Service Contract

Create IB& Service Contract

AccurateEntitlement

Prevents Leakage

AccurateEntitlement

Prevents Leakage

ContractTo Expire,Notify Rep

& Customer

ContractTo Expire,Notify Rep

& Customer

ProactiveRenewals,No LapseIn Service

ProactiveRenewals,No LapseIn Service

Analyze: Recurring Revenues

Analyze: Recurring Revenues

• Entitlement is sold and assigned to product on current order, previous order, or install base• Optionally Assigned to product in a Bill of Material• Extended Warranty is renewable

AuthorService

Agreement

AuthorService

Agreement

Assign MultiLevel

Entitlements

Assign MultiLevel

Entitlements

GenerateBilling,

Rev Rec

GenerateBilling,

Rev Rec

AccurateEntitlement

Prevents Leakage

AccurateEntitlement

Prevents Leakage

ContractTo Expire,Notify Rep

& Customer

ContractTo Expire,Notify Rep

& Customer

ProactiveRenewals,No LapseIn Service

ProactiveRenewals,No LapseIn Service

Analyze: Recurring Revenues

Analyze: Recurring Revenues

• Entitlement is sold and assigned to customer, install base, future sales• Enterprise oriented, not sales order• Provides billing schedules, renewal rules, T’s&C’s, approval/management processes, etc.

DemoDemo

Service Contracts: Cart-to-Order

Quote-to-Order

Service Contracts: Cart-to-Order

Quote-to-Order

Service Contracts:Order-to-EntitlementOrder-to-Installation

Service Contracts:Order-to-EntitlementOrder-to-Installation

Service Contracts: Tier1 Support

Interaction Center

Service Contracts: Tier1 Support

Interaction Center

Service Contracts: Tier2 Support

Service Contracts: Tier2 Support

Service Contracts: Field Service & Repair

Service Contracts: Field Service & Repair

Service Contracts: Customer Self Support

Service Contracts: Customer Self Support

Service Contracts: Author-to-InvoiceExpire-to-Renew

Service Contracts: Author-to-InvoiceExpire-to-Renew

Service Contracts: Analytics

Service Contracts: Analytics

Customer Success

Customer Customer SuccessSuccess

Customer SuccessSuccessful Deployments Across Several Industries

• Industrial Equipment

• High Tech Equipment• Software• Data & Networking systems

• Membership• Content• Outsourcing

Demand drivers:• Manufacturers that need to service their products• Industries that have recurring revenues

* Top 125 customers

High Tech

EQUIPMENT

DATA & NETWORKING SOFTWARE

Manufacturing & Services

OUTSOURCING

INDUSTRIAL

CONTENT & MEMBERSHIP