Advanced Debt Management - OracleAdvanced Debt Management Management Goals Improve Cash Flow Streamline the Collections Process Achieve Intelligence-based Credit Decisions Increase

Advanced Debt Management

Deborah Adamson - Business Consultant Oracle

Advanced Debt ManagementExternal Pressures on Management

Smarter Decision MakingAutomated Processes

CashAccessibility

CashAccessibility

Prompt Cash CollectionFewer Broken Promises

CustomerExpectations

CustomerExpectations

Understandable InformationFaster Issue Resolution

Doing Morewith Less

Doing Morewith Less

CustomerCustomerServiceService

CashCashApplicationsApplications

OrderOrderAdministrationAdministration

Billing /Billing /InvoicingInvoicing

Collections /Collections /Trade Mgmt.Trade Mgmt.

CreditCreditManagementManagement

RevenueRevenueRecognitionRecognition

Legal /Legal /Contract Mgmt.Contract Mgmt.

Advanced Debt ManagementManagement Goals

Improve Cash FlowStreamline the Collections Process

Achieve Intelligence-based Credit Decisions



Increase EfficienciesAutomate Post-billing Activities

Offer Advanced Self-Service Capabilities



Optimise Customer RelationshipsProvide Understandable & Accessible InformationOptimise Customer RelationshipsProvide Understandable & Accessible Information






Optimise Customer RelationshipsProvide Understandable & Accessible Information

What Keeps Collectors Up At Night?

Source: Commercial Collection Agency Association of the Commercial Law League of America (CCAS)

29%29%more than 12 monthsmore than 12 months57%57%more than 6 monthsmore than 6 months

73%73%more than 3 monthsmore than 3 months

Probability of CollectionLength of Delinquency

Paperwork for Disputes & WritePaperwork for Disputes & Write--offsoffs

1 hour1 hourChasing DelinquenciesChasing Delinquencies2 hours2 hoursActively CollectingActively Collecting3 hours3 hoursPreparing to CollectPreparing to Collect2 hours2 hours

Time Spent…Of an 8 Hour Day…

Collections ManagementAreas of Impact on ROI with Oracle Collections

2 Hours (25%) getting prepared to collect– Oracle Collections pushes work to the collector

3 Hours (37.5%) Collecting– Work Queue proactively managers collectors work,

giving them all the information they need

2 Hours (25% ) Follow-up– Work Queue automates email, dunning and follow-up

1 Hours (12.5%) filing paper work for disputes, bankruptcy, write-offs– Automated workflow and full on-line interaction

history







Continually Evaluate CreditworthinessReduce No. of Delinquencies with Credit Managment

For Each Credit Policy:

Select Data Elements to Use in Scoring– e.g., DSO, imported D&B credit score, % invoices paid late, etc.

Assign a Scoring Model– Determine weighting and calculations

Establish Automation Rules– Create thresholds for automated approvals and rejections

Ris

k

Expected ReturnLow High

High

Low

MoreMoreLiberalLiberalPoliciesPolicies

MoreMoreStringentStringentPoliciesPolicies

- Define Unlimited Number of Credit Policies that Match Anticipated Risk with Expected Return

- Use Credit Intelligence to Assess Risk and Use Customer Intelligence to Project Return

Complete Credit Mgmt Business Flow

Analyst NotepadAnalyst Notepad

Detailed & Summary Detailed & Summary Data ElementsData Elements

Single Customer Single Customer MasterMaster-- Enterprise Enterprise

HierarchiesHierarchies

Credit Score Credit Score Calculation & Calculation &

‘What If’ Analysis‘What If’ Analysis

Attach Images Attach Images & Supporting Docs& Supporting DocsC

ase

Fold

er

Credit Credit RecommendationsRecommendations

Credit Analysis & Decision

Seamless Dun & Bradstreet Seamless Dun & Bradstreet ®® IntegrationIntegration












Optimise Customer Relationships and Increase Efficiencies

Automate & Connect Internal ProcessesProvide “Single Source of Truth” Data Access to All Customer-facing Channels

Extend Access to CustomersAutomate the User Registration Process

Provide Online Bill Presentment & Payment

Allow for Online Disputes, Scheduling, & Payments

Offer Visibility to History & Current Status

Send Payment Information Through Single, Intelligent Routing Engine for Rapid Completion

Self Service Application – ‘easy to use’– To Customer

– To Credit Control Department

Automated workflow driven dispute handling– Credit Memo Request

Ability to pay ‘on-line’– Credit Card and EFT payment

Ability to view/print transactions e.g. invoice

Oracle iReceivables - Key Benefits

Demonstration

Optim

izeO

ptimize

Manage the Collections LifecycleHarness the Power of an Integrated Solution

Dispute?Dispute?Deduction?Deduction?

PrePre--Delinquent?Delinquent?Delinquent?Delinquent?LaterLater--Stage?Stage?

Strategize• Segment• Score• Assign• Queue

Strategize•• SegmentSegment•• ScoreScore•• AssignAssign•• QueueQueue

Process• Receive Pmts• Approve / Reject

Disputes &Deductions

• Escalate• Acct for Write-offs

ProcessProcess•• Receive PmtsReceive Pmts•• Approve / RejectApprove / Reject

Disputes &Disputes &DeductionsDeductions

•• EscalateEscalate•• Acct for WriteAcct for Write--offsoffs

Automate• Route• Track / Resolve

Disputes &Deductions

• Reconcile Pmts& Promises

Automate•• RouteRoute•• Track / ResolveTrack / Resolve

Disputes &Disputes &DeductionsDeductions

•• Reconcile PmtsReconcile Pmts& Promises& Promises

Interact• Print• Fax• Telephony• Email• Self Service

Interact•• PrintPrint•• FaxFax•• TelephonyTelephony•• EmailEmail•• Self ServiceSelf Service

• MeasureSuccess

• UpdateCredit & CollectionMetrics

• Review &AdjustPolicies

•• MeasureMeasureSuccessSuccess

•• UpdateUpdateCredit & Credit & CollectionCollectionMetricsMetrics

•• Review &Review &AdjustAdjustPoliciesPolicies

Advanced Debt Management Potential Return on Investment

Days Sales Outstanding 20%

Invoice Issue Time 33%

Time to Deduction Resolution 50%

Total RRM Processing Costs 60%

30% First Year Return on Oracle RRM Investment

Days Sales Outstanding 20%

Invoice Issue Time 33%

Time to Deduction Resolution 50%

Total RRM Processing Costs 60%

30% First Year Return on Oracle RRM Investment

John Van Decker John Van Decker –– Meta Group, Inc.Meta Group, Inc.Cap Gemini Ernst & YoungCap Gemini Ernst & Young

Dr. Min Wu Dr. Min Wu –– NYU Stern School of BusinessNYU Stern School of BusinessConCon--Way Transportation ServicesWay Transportation Services

Oracle Advanced Debt ManagementFinancial Operations

General LedgerGlobal Intercompany SystemGlobal Consolidation SystemInternal Controls ManagerWorkflow & Approvals MgmtApplication Desktop Integratore-Commerce & XML Gateways

Corp Performance MgmtEnterprise Planning & Budgeting *Financial AnalyzerSales AnalyzerPerformance AnalyzerActivity-Based ManagementBalanced ScorecardFinancial Intelligence / DBIDemand PlanningField SalesMarketingGlobal Consolidation SystemBudgeting

Cash & Treasury MgmtCash ManagementTreasuryRisk Management

Payment & ExpenseManagement

iProcurementPayablesiSupplier PortalInternet ExpensesRevenue & Receivables

ManagementReceivablesCredit ManagementAdvanced CollectionsTrade / Deductions MgmtBill Presentment Arch.iReceivablesiPaymentCustomers OnlineTCA / Customer Data Model

Customer Data MgmtTCA / Customer Data ModelCustomers OnlineData Librarian

Asset ManagementAssetsiAssets *Enterprise Asset Mgmt

Lease ManagementLease ManagementService ContractsCredit ManagementAdvanced Collections

Real Estate ManagementProperty ManagerProjectsEnterprise Asset Mgmt

Further Questions?Further Questions?

Demo Pods in the Henley Demo Pods in the Henley SuiteSuite

Selection of Collections Customers

Hutchison TelecomMattell Schrieber FoodsAmericreditACCGE Capital JP MorganCaterpillarDLLDynamic Graphics Inc.InamedInvacareCMS Group

Alcoa Imagistics / Pitney BowesXerox Ominfax Price Waterhouse CoopersRicohXerox NCRCity of Philadelphia VerisignCisco DellApex DigitalApplied Communications

Documents

Advanced Debt Management - OracleAdvanced Debt Management Management Goals Improve Cash Flow Streamline the Collections Process Achieve Intelligence-based Credit Decisions Increase