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NMMMeeting in Carlton Hotel Tel Aviv, Israel
Gil Grossman, Chief Executive Officer eCredible
1 February 2001
Agenda
• Who is eCredible?• Why Fortune 1000’s Are Going Online
& The Challenges They Face• The Requirements to Transact Online Safely• Partial Solutions to the Problem• The eCredible Answer• eMarketplaces Say it Really Works
Who is eCredible?
• Leader in eFinance Risk Management • Born out of NCM / Swiss Re• Partnered with Leading Technology Providers
– Clarus, IBM, McKinsey & Co., Verisign, Webmethods
• Experienced Management Team– Combined total of over 75 years experience
in finance/credit insurance– Experience with leading global financial
institutions such as ABN-AMRO and McKinsey & Co.
NCM
• No. 2 credit insurer
in US
• Offices in 13 countries
NCM
• No. 2 credit insurer
in US
• Offices in 13 countries
Swiss RE
• AAA-rated
• World’s largest credit reinsurer
• Second largest reinsurer
Swiss RE
• AAA-rated
• World’s largest credit reinsurer
• Second largest reinsurer
•“We need a way to expand internationally while still providing a safe trading environment to our members”
Equipment manufacture
•“We are in the paper business and want to minimize our involvement in credit management as much as possible”
Paper Trader
•“Deals are often held up pending a credit check. In our business, there is a real risk of losing the deal in the meantime.”
Energy exchange
Volume growth &Globalization
Volume growth &Globalization
Outsourcing creditmanagement
Outsourcing creditmanagement
Real-timetransactionapprovals
Real-timetransactionapprovals
Fortune 1000 sellers look for:
B2B players look for complete suite of transaction services
Source: Forrester Research
Forrester research (BtoB market places): “Do you provide these services today?” “And in 2002?”
Today
2002
B2B: When Will It Go Online?
40% of eMarketplaces Currently Employ Manual Processes To Facilitate Transactions
Forrester Research
40% of eMarketplaces Currently Employ Manual Processes To Facilitate Transactions
Forrester Research
The Gold Rush:Why Fortune 1000’s Are Racing to Open Private Exchanges
• Reduce Operational Costs & Increase Efficiency Through Automation
• Boost Revenue by Reaching New Markets (SME, Foreign, Disinter mediation)
• Execute Multiple Transactions at the Same Time
Some 30,000 Private Exchanges are in Various Stages of Development (Gartner Group)
Some 30,000 Private Exchanges are in Various Stages of Development (Gartner Group)
Challenges: Why Offline Systems Won’t Cut it Online
Offline Finance… eFinance needs to be …
Procedures Done ManuallyInternal credit/finance departments
Fully AutomatedNo manual handling or paperwork
Buyers are KnownHave financial history with company
Able to Deal with Unknown Buyers (SMEs, foreign etc.)
Credit/Financing Delays TransactionRequires communications with third party bank/credit provider
Capable of Functioning at Web SpeedCredit/Financing must be built into automated transaction
Transaction Volumes Can’t Grow ExponentiallyLimited by manual handling
Instantly ScalableTechnology to deal with multiple transactions at the same time
Financial Procedures are Not Handled SimultaneouslyVerification, credit checks and dunning are done separately
A One-Click ProcedureIntegration between front and back office systems
The Holy Grail:Moving to Online Automation with Limited Risk
i. Authenticate the Buyer
ii. Check Credit
iii. Guarantee Payment
iv. Automate Dunning & Collection
v. Link to Existing Customer Finance Systems
eFinance Risk Management
Instant Guaranteed Transactions
Category
Goal
Requirements
eFinance Risk Management:Partial Solutions
No transaction capability or payment guarantee
Not fully online, no transaction capability or payment guarantee
Locks up working capital, not ideal for small or multiple transactions
Won’t cover large transactions, high interest rates
Not web-based, not real-time, cumbersome documentation
Requires a company to use their A/R systems
Authentication& Verification
Escrow Services
Stand-alone Systems
Letters of Credit
Credit Check& Rating Services
Trade Cards
Introducing the eCredible Solution
An integrated package of online financial processes that delivers real-time decision making capability, enabling companies to perform Instant Guaranteed Transactions for B2B.
Authentication Credit Checks Guaranteed Payment
Dunning & Collection
Integration
PhoneWeb FaxEmail
Process IntegrationEfficiency, speed, and accuracy through full integration of all Credit Management processes
New buyer entry
Credit selection
AP/AR monitoring
Dunning Collections
No manual handling, thanks to systems links
Eliminates need for internal credit management
System integration
Registration Ordering Invoicing Payment
Market place web server
API’s
Market place back office or payment invoicing engine
- Two weeks to link up with market place
- Facilitated by webMethods
Works With All Interfaces…
Ariba
Art Technology Group
Atlas Commerce
Bowstreet
Broadvision
Cohera
Commerce One
Contivo
Ectone
Global Commerce
Global Logistics Technologies
I2
Interworld Corporation
Rightworks
SAP AG
Siebel Systems, Inc.
Supplyforce.com
Ventro
Viquity
Moai
Microsoft
JD Edwards
Motive Communications
Nightfire Software, Inc.
Nonstop Solutions, Inc.
Noochee Solutions
Nortel Networks
Oracle
Peoplesoft
Portal Software
Red Oak Software
Interwoven, Inc.
Remedy
Savvion
Spaceworks
Supplyworks, Inc.
Versata
Integration is Painless…
• Simple integration to back (AR) and front offices Web-based registration and order/invoice processing
• Fast implementation period Average of two weeks
• Limited manpower neededThree people on each side
• Highly secure communications PKI encrypted credit certificates and triple firewall protectionfor front and back-end integration
Why eCredible Can Offer a Guaranteed Transaction Process
1. Authenticates the Buyer: Contact is made with individuals requesting certificate and his/her parent company for total certification
2. Runs Detailed Credit Checks: Leverage NCM network of credit information agencies in13 countries
3. Issues eCredible Payment Guarantee™: Financial backing of NCM/Swiss RE which insures $130 billion in B2B transactions annually; AAA-rated balance sheet
4. Automates Dunning & Collection: Web-based credit management system combined with NCM global network of claims offices & collection agencies
5. Links to Existing Customer & Financing Systems: Proprietary software allows eCredible to tap into offline a/r systems and collect information about new buyers, new orders, invoices, payments made, order cancellations, etc.
Capital marketsCapital markets
Financial institutionsFinancial
institutions
Risk carriers Financiers
eCredible integrates eFinance players
BuyersBuyers
SellersSellers
Information providers
Information providers
Underwriters (NCM)
Underwriters (NCM)
Collection agenciesCollection agencies
Other (re)insurers
Other (re)insurers
NCM / Swiss ReNCM /
Swiss Re
Service providers
Customers
eCredible in Action
www.NetworkPlaza.com
Business Model:
B2B supplier of network equipment
Target Market:Large enterprises, ASP, ISP’s, Telco’s
Credit Certificate Users:
Siemens, Sony
Reason for Going Online:
Bypass distributors – go directly to buyers
eCredible in Action
www.Pro-online.nl
Business Model:
B2B supplier of tools
Target Market:
Building trade sector
Credit Certificate Users:Mainly Dutch SMEs
Reason for Going Online:Reach all European buyers
Summary
• B2B needs to move fully online if it’s to fulfill growth predictions
• Fortune 1000s are going online to reach new buyers and lower transaction costs
• Offline financial procedures won’t work online• Instant Guaranteed Transactions are what’s needed• Current eFinance Risk Management solutions offer too
little or too much• eCredible’s technology enables Instant Guaranteed
Transactions that benefit both the buyer and seller
Everyone Benefits
Buyer Receives:• Access to open account terms with new suppliers
• Control over own credit
• One-click convenience
Seller Receives:• Increased revenue from new buyers
• Assurance of payment
• Lower credit management costs
Competitors
Degree of Integration
Level of Assurance
ACI
@rating
Market segmentation Single Seller Sites Facilitating Marketplaces
Full Service Marketplaces Procurement Sites
SELLERS
BOrder
Invoice
Payment
Exposure information available
Payment information available
B SMP
Order
Invoice
Payment
No Exposure information available
No Payment information available
B S
MPOrder
Invoice
Payment
Order
Payment
SBUYERS
Order
Invoice
Payment
Supplier riskExposure information available
Payment information available