Oracle Service Contracts
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1 Oracle Service Contracts Minimize Service Revenue Leakage Transforming Customer Support from a Cost Center to a Profit Center Kevin DeMartelaere Principal Solutions Consultant
2 Agenda Oracle Service Contract Flows / Integrations Service Contract Creation Processes Viewing Entitlement in Oracle Service Applications Service Contract Action Processes Contract Self Service Possibilities Measuring Service Contract Value Daily Business Intelligence Customer Successes
3 Why Contract Management Matters Operating & Processing Costs 10-30% Contract Negotiation Cycle Time 50% Volume of Erroneous Payments 75-90% Additional (New) Contract Revenue 1-2% Renewal Revenue 30% Compliance with Regulatory Guidelines % Automate Electronic CoTermination Service Programs Anticipate T 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
4 Oracle Service Contracts Integrated Solution 1 Proposals, Quotes Service Provider / Product Manufacturer Customer Products & Warranties Service / Usage Agmts Bill & Invoice Service Requests Renewal Notifications Sales Contract Mgr Service Orders T&Cs Entitlements Service Contracts Repository Define Coverage Create Contract Verify Entitlement Provide Service Bill & Collect R e n e w Returns, RMAs AR - Billing, Credit, RevRec Order Mgmt - Orders, Returns, Adv Pricing Sales - Quoting, istore, TeleSales Integration Points Entitlement: TeleService, Field Service, Depot Repair, Mobile Service, PM Install Base
5 Service Contract Selling Processes Increase Efficiency Through Automation & Integration Sales Order, Included Warranty Fulfill Create IB & Service Contract Accurate Entitlement Prevents Leakage Warranty To Expire, Notify Rep & Customer 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 Extended Warranty Selling, No Lapse In Service Analyze: Revenue Opportunity Sales Order, Extended Warranty Fulfill, Invoice, Rev Rec Create IB & Service Contract Accurate Entitlement Prevents Leakage Contract To Expire, Notify Rep & Customer Proactive Renewals, No Lapse In Service 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 Author Service Agreement Assign Multi Level Entitlements Generate Billing, Rev Rec Accurate Entitlement Prevents Leakage Contract To Expire, Notify Rep & Customer Proactive Renewals, No Lapse In Service 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.
6 Demo
7 Service Contracts: Cart-to-Order Quote-to-Order
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11 Service Contracts: Order-to-Entitlement Order-to-Installation
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20 Service Contracts: Tier1 Support Interaction Center
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22 Service Contracts: Tier2 Support
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26 Service Contracts: Field Service & Repair
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29 Service Contracts: Customer Self Support
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33 Service Contracts: Author-to-Invoice Expire-to-Renew
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46 Service Contracts: Analytics
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55 Customer Success
56 Customer Success Successful Deployments Across Several Industries Membership Content Outsourcing Industrial Equipment High Tech Equipment Software Data & Networking systems Demand drivers: Manufacturers that need to service their products Industries that have recurring revenues * Top 125 customers
57 High Tech EQUIPMENT DATA & NETWORKING SOFTWARE
58 Manufacturing & Services INDUSTRIAL CONTENT & MEMBERSHIP OUTSOURCING
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