Improving Contract Control and Visibility - oracle.comopnpublic/... · industry by market capitalization run Oracle . 5 ... and quoting engines in a CRM application, ... The company

Improving Contract Control and VisibilityPresenter’s Name

Presenter’s Title

2

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into

any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Safe Harbor Statement

3

Agenda

• Leadership in Business Services

• Proactively Managing Service Contracts

• Results Achieved by Oracle Customers

4

Oracle in Business Services

Did You Know?

16 of the top 20 Most innovative business services firms run Oracle applications

10 of the top 10 of the world’s top outsourcing service providers run Oracle

10 of the top 10 Companies in the Business Servicesindustry by market capitalization run Oracle

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“How can I standardize service processes to drive a

superior customer experience and effective service

delivery?”

“Managers can obtain insight into all aspects of their field-services operations simply by standardizing processes and adopting common IT platforms.”

ATKearney

Profitable Service

Delivery

Customer Acquisition

and Retention

“How can I drive effective leads, sales, and contract

renewals?”

“Research consistently shows that it is about five to seven times more expensive to find a new customer than to retain an existing one; correspondingly, losing 5% fewer customers can increase profits by as much as 75%.”

ATKearney

The Challenges We’re Hearing

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“How can I efficiently hire and train personnel and develop

my best service employees?”

“Most large companies have implemented an integrated set of administrative human capital management applications. Now, these companies are turning their attention to strategic talent management applications to get more value from their investments in people.”

Gartner

Train and Retain the

Right Personnel

Contract Control and

Visibility

“How can I control contract margins, entitlements,

performance and escalations?”

“A contract by itself is good to have; an enforced contract is invaluable. Integration between the contract repository and various transaction applications (such as pricing, configuration, and quoting engines in a CRM application, or procurement and purchasing applications in a supplier relationship management product set) allows these applications to act in accordance with the contract’s terms and conditions.”

Forrester

The Challenges We’re Hearing

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Proactively Managing Service Contracts

Forrester– 2006 - Best Practices | Contract Management In An Outsourcing Deal

Customer concerns with Outsourcing Services Address with Effective Contract Management

Draft

Contract

Contract

Negotiation

Contract

Approval

Contract

Repository

Comply &

Administer

Renew,

Measure &

Optimize

Contract Control and

Visibility

“How can I control contract margins, entitlements,

performance and escalations?”

“A contract by itself is good to have; an enforced contract is invaluable. Integration between the contract repository and various transaction applications (such as pricing, configuration, and quoting engines in a CRM application, or procurement and purchasing applications in a supplier relationship management product set) allows these applications to act in accordance with the contract’s terms and conditions.” Forrester

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Agenda




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Improve Cost Controls and Proactively Manage Contract ProfitabilityRequirement Oracle Capability The Oracle Difference

Control Service

Delivery Costs

Field Service,

iexpense, Service

Contracts, Financial

Management

A Robust Solution for

Capturing All Service

Delivery Costs (Labor,

Material & Expense) From

Any Source

Manage Contract

Performance &

Margin Analysis

Service Contracts,

Service Analytics

Only Oracle Delivers the

Most Comprehensive CRM

Analytics for Business

Services

Track All Internal

Capital Asset Costs and

Optimize Asset

Utilization

Project Costing,

Enterprise Asset

Management, Fixed

Assets, Financial

Management

Market Leading Solution

to Support Analysis of

All Assets Required for

Service Delivery

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Control Service

Delivery Costs

Field Service,

iexpense, Service


Management





Any Source

Manage Contract

Performance &

Margin Analysis

Service Contracts,

Service Analytics




Services

Track All Internal


Optimize Asset

Utilization

Project Costing,

Enterprise Asset

Management, Fixed

Assets, Financial

Management




Service Delivery

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Oracle Service and ContractsControl Service Delivery Costs

Customer requests service

Service Provider

Voice

eMail

Internet

In Person

• Auto-entitle customers and route to most cost effective service personnel

• Inform service personnel of contractual commitments, and ensure they are met

• Deliver service while meeting SLA’s and avoiding excess cost (ex. no overtime)• Capture accurate job cost data from field personnel

Customer recognition and

entitlement check

Entitled? Y

N

T&E

ServiceOffer

Contract

Service

Provide

Invoice

Planned

Service

12

Competing Forces

in Job Scheduling

Customer

Satisfaction

Service Operations

Revenue & Costs

Employee

Productivity

• Establishing efficient schedules with low travel and high productivity while meeting customer commitments

• Minimizing business rule violations (e.g. contractual obligations and leakage)

• Balance the ratio of operations to field personnel

• Adopt a collaborative model to eliminate localized personnel holding all the knowledge

Oracle Service and Advanced SchedulerDeliver Cost Effective Services

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Field Workforce EfficiencyLeverage Mobile Capabilities to Reduce Job Time & Cost

Parts and

Materials

Access Options:

• Wireless connected

• Disconnected w/ periodic synchronization

• View and update schedule• Access service levels• Get driving directions, customer location

• Order materials remotely

• Report time, material and expenses incurred

Mobile Capabilities

Optimize

Schedule

Create

Field Work

Order

Identify

Service

Needs

On-Site

Service

Dispatch

Field

PersonelDebrief Invoice

Customer

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McData Services Reduces Service Operations Cost by 50%

CUSTOMER PERSPECTIVE

“McDATA's challenge of growing business

operations in Europe, Asia, and the US can

only be met with a flexible open system like

Oracle E-Business Suite. Buying disparate

"best-of-breed" applications requires costly

and time-consuming integration services.

Oracle offers a seamless, fully integrated,

modular business solution.”

Don Wenninger, CIO, McData

COMPANY OVERVIEW

� Manufactures and markets high performance switching equipment for Storage Area Networks

� Offers Professional Services that help organizations manage the entire lifecycle of their storage requirements, including ananalysis of business requirements, a design of the appropriate solution, and the implementation and ongoing management of the SAN and IT infrastructure.

� $668M in yearly revenues with 1,450 employees across the U.S., Europe and Asia

CHALLENGES/OPPORTUNITIES

� Needed to manage an increasing number of new contracts and renewals as the company expanded globally

� Management concerned about revenue leakage

SOLUTIONS

� Oracle E-Business Suite

� Oracle Contracts

� Oracle TeleService

� Oracle Depot Repair

� Oracle Order Mgmt

RESULTS

• Reduced service operations cost structure by 50%

• Reduced revenue leakage on contract renewals

• Reduced DSO 80 to 50 and cut quarterly close from 21 to 4 days

• Improved response time to customer

queries

� Oracle Purchasing

� Oracle Inventory

� Oracle Configurator

� Oracle Financials

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Control Service

Delivery Costs

Field Service,

iexpense, Service


Management





Any Source

Manage Contract

Performance &

Margin Analysis

Service Contracts,

Service Analytics




Services

Track All Internal


Optimize Asset

Utilization

Project Costing,

Enterprise Asset

Management, Fixed

Assets, Financial

Management




Service Delivery

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Oracle Enterprise Asset ManagementOptimize Asset Utilization

Project Management

AdvancedCollaboration Tools

AssetMaintenance

FinancialManagement

ContractorsSuppliers

External

• Requirements• Specifications

• Drawings• Schedules

• Defects• Orders

Asset Intelligence

Asset Portfolio Mgmt

OperationsManagement

Internal

��

GlobalAsset

Repository

GlobalAsset

Repository

PlanPlanBuild /

Acquire

Build /

AcquireOperate /

Maintain

Operate /

Maintain

Retire /

Dispose

Retire /

DisposeCommissionCommission

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Track Equipment Lifecycle Costs

Analyze equipment cost

Know the true cost of

providing service and adjust

contract rates accordinglyChild

Work Order

Parent

Work Order

Dept

Capital or

Expense

Project

Asset

Business

Unit

EnterpriseInternal Cost Management

Track material, labor and

maintenance costs

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• Build, Model and Analyze Profitability

• Enterprise to Lowest Level Results

• Business Rules Based Engine

• Scenario Testing (Rule Sets)

• Accounting Perspective (Debit/Credit)

• Integrates Multi Data Sources

• Integration with Oracle Applications

• Model Supports Transactional Data

• Open to 3rd Party Data Source

• Easy to Use

• Build from a Finance Perspective

• Point-Click Environment

• Embedded Activity Based Management

• Robust ABC Engine

Oracle Profitability AnalyzerUnderstand Your True Cost of Service

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Dubai Refreshments Improves Equipment Maintenance

COMPANY OVERVIEW

� Dubai Refreshment Company, which holds a 73% market share, is the leading manufacturer and distributor of soft drinks in Dubai and the Northern Emirates.

� The company supplies Pepsi Co. brand drinks to 15,000 outlets with its 150 delivery trucks. It also has thousands of vending machines and coolers to its customers.


� Reduce overhead and increase efficiency by consolidating financial management, manufacturing, asset maintenance, and human resources (HR) and payroll processes into a single, integrated platform

� Maintain overall market leadership and extend presence in the catering sector

SOLUTIONS


� Oracle Enterprise Asset Management


� Oracle Inventory Management

� Oracle Human Resources

� Oracle Payroll

RESULTS

• Used Oracle Enterprise Asset Management to enforce regular

maintenance schedules for mixing

machines, bottling equipment,

distribution trucks, vending machines,

and coolers

• Boosted equipment productivity and

reduced unplanned shutdowns through

more effective maintenance

• Implemented Oracle Financials to

generate up-to-date performance metrics

and profit-and-loss summaries across all

brands, outlets, and delivery routes,

improving budgeting and forecasting

processes

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Control Service

Delivery Costs

Field Service,

iexpense, Service


Management





Any Source

Manage Contract

Performance &

Margin Analysis

Service Contracts,

Service Analytics




Services

Track All Internal


Optimize Asset

Utilization

Project Costing,

Enterprise Asset

Management, Fixed

Assets, Financial

Management




Service Delivery

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Manage and Measure Service Contracts

Process Control• How can I manage customer,legal, fiduciary & industry requirements to reduce risk?

• How can I streamline approvalof non-standard agreements?

Sales Effectiveness• What can be done toaccelerate sales cycles and reduce contractual risk?

• How can sales reps reduce paperwork & improve efficiency?

Contract Visibility• How do I prevent improper accounting and minimize disputes & penalties?

• How can I ensure delivery and service commitments are met?

CustomerSub

Contractor

Managing Renewals• How can I improve access tocontracts and interaction history?

• How can I better manage renewalsso service interruptions and unprofitable contracts are eliminated?

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• Capture data from any source

• Graphically rich, intuitive UI

• Pre-built (yet extensible) analytics

• Support mobile / handheld devices

• Easy to create Ad-Hoc reports

• Actionable analyses for all levels of organization

• Examples

• Customer satisfaction and lifetime value

• Contracts and renewals

• Resolution rates

• Service revenue

• Financials

• Service workload

• Sales and service orders

• Service costs

• Assets

Business Analytics Insight Across Your Service Business

23

Cisco Services Improves Visibility into Service Metrics

COMPANY OVERVIEW

� Cisco Systems has prospered right along with the Internet it helped build. Today, the company’s Internet Protocol (IP)-based networking technologies have become the foundation for business, education, government, and home communications networks around the globe.

� Headquartered in San Jose, California, Cisco operates in over 70 countries, serving a customer base in the millions.


� Consolidate and upgrade its customer-support systems worldwide.

� Challenges running multi-billion dollar service business spanning the globe

� Three different systems with three different ways of expressing workflows

SOLUTIONS


� Oracle TeleService

� Oracle Service Contracts


RESULTS

• Expanded Cisco’s ability to create and track key service metrics

• Integrated customer service system

delivers global 24/7 support within the

terms of service level agreements

• Created a seamless contact and service

experience for customers

CUSTOMER PERSPECTIVE

“Implementing the Oracle solution in our

service business has given us a solid

and scalable ‘end-to-end’ foundation,

tightly linked with our product and

customer data. We will build on this

foundation, a high value customer

specific service capability that will enable

our customers’ success with the Cisco

Intelligent Information Network.”

Jim Reily, Vice President, Global Service

Operations, Cisco Systems

� Oracle Purchasing

� Oracle Order Management

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Contract and Financial Management Summary

• Market Leading Solution to Support Analysis of All Assets Required for Service

Delivery

Manage Contract

Performance &

Margin Analysis

• A Robust Solution for Capturing All Service Delivery Costs (Labor, Material & Expense)

From Any Source

Control Service

Delivery Costs

Track All Internal Capital Asset Costs and Optimize Asset

Utilization

• Only Oracle Delivers the Most Comprehensive CRM Analytics for Business

Services

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The Only Complete Business ServicesSolution

PlatformPlatform

PeoplePeopleProcessesProcesses

PartnersPartners

CustomerResults

CustomerResults

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Oracle’s Business Services Solution FootprintProactive Contract Management

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Most ComprehensiveHighest RatedBest-SellingOnly vendor in Gartner and Forrester leader quadrants for all Middleware

components.

••32,000+ Customers Deployed 32,000+ Customers Deployed

••70% of World’s 50 Largest Firms70% of World’s 50 Largest Firms

••$1B+ Business $1B+ Business

SOA Vendor of Choice

So u r c e : Fo r r e s t e r R e s e a r c h r a n ki n g o f Ap p l i c a ti o n P l a t fo r m S e r v e r s, Ap ri l2 0 0 5

Market-Leading Middleware Platform

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950 customers

participating in Customer

Advisory Boards

500 Industry & Product

strategy council members

35 Fusion strategy

council members

1300 participants in

early customer

adoption programs

425 user groups

30,000 applications

customers

220,000 database

customers

5000 middleware

ISVs

1700 application

ISVs

9000 database

ISVs

30,000 middleware customers

29,000 developers, support

engineers and consultants

Oracle’s People Advantage

275,000 customers

benefiting from shared innovation

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Business Services Industry PartnersGLOBAL SYSTEM INTEGRATORS INDEPENDENT SOFTWARE VENDORS

First AdvantageRecruiting Solutions

Citrix Systems, Inc. Perquest, Inc.

WindstarTechnologies, Inc.

Nextance Inc. Primavera Systems Inc.

Identrust, Inc. Time Link International Corp.

Azalea Software, Inc

Xactly Corporation Dexterra, Inc.Arkipelago inc.

Pervasive Software Inc

Symantec Corporation

Princeton Softech

Quantum Secure, Inc.

TaxwareVertex, Inc.

UniversalBackground Screening, Inc.

Data Systems International

Red Hat, Inc.

HireRight, Inc. Vettro Corporation Image Solutions

OutStart IncRSA, The Security Division of EMC

Open Text Corp

Haley SystemsUnibar Inc.Trillium Software

HumanConceptsLLC

Genesys Telecommunications Laboratories, Inc.

Microsoft (Project)

Vangard Voice Systems, Inc.

WebQA Inc.VoiceObjects, Inc.

Image SolutionsActuate Corporation Documentum

Antenna SoftwareAgeTak Inc. ADP

TMP Worldwide, LLC

IdenticentricKronos Incorporated

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Agenda




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What Customers Are Achieving

achieved 18% higher customer service levels

reduced revenue leakage on contract renewals

reduced service operations cost structure by 50%

improved response time for customer queries

saved $1.6M via improved contract and repair mgmt

captured $100,000 in lost revenues via enhanced renewals

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The Oracle Difference

• Provides market leading CRM analytics to manage customer acquisition, forecast win rates and accurately view revenue position.

• Integrates Contract Management applications globally to Service Delivery, Financials, Procurement and embeds service business analytics/intelligence.

• Has a complete end-to-end service delivery solution with deep and broad functionality for Contract Management, Call Center, Service Dispatch and Mobile Workforce.

Only Oracle…

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Improving Contract Control and Visibility - oracle.comopnpublic/... · industry by market capitalization run Oracle . 5 ... and quoting engines in a CRM application, ... The company