Technology Leadership in Leasing Implementing a New World in Leasing Equipment Leasing Association 2002 Annual Convention October 14, 2002 10:30 am Noon
Scott Thacker Senior Director Oracle Leasing Solutions
Agenda! Oracle s Technology Leadership Seven Tenets of Technology! Oracle Lease Management Helping Leasing Companies Be Better Leaders Oracle Consulting Implementing a New World in Leasing! Q & A
Oracle Corporation At A Glance! Largest enterprise software vendor! Founded 1977; Public 1986! 140+ countries; 60+ subsidiaries! Over 41,000 employees! 51% of total revenue non-us
7 Tenets of Technology The Oracle Story
#1 Consolidate and Simplify IT Oracle Information Technologies: After Consolidation Finances Spend: >$500M " $276M View: Fragmented " Global Decision Making: Not Coordinated " Centralized Organization IT Staff: >2300 " 1600 Model: Dotted Line " Directed Practices Standards: some " high Common practices: few " high Knowledge sharing: some " high Systems & Applications Systems: Mixed " EBS Apps: >500 " <100 Custom Bespoke Support: $$$ " $ De-centralized " Centralized
#2 Move to Shared Services The Oracle Experience: Global IT Consolidation # $30M in E-Business Suite annual savings # $11M in E-mail annual savings # $60M in Desktop Simplification annual savings # $13M in annual Maintenance Reductions # $200M in Operating Expense in 2 years
#3 Adopt Self-Service Cost Reduction Summary: The Oracle Story Expenses & Procurement $115M Self-Service Support Calls $250M Sales/Marketing Leverage $300M Sales Force Productivity + 10-20% Global Savings $665M
#4 Automate All Processes & Business Flows Customer Relationship Management Sell Develop Plan Supply Chain Management Market Enterprise Management Finance HR Projects Procure Maintenance Service Manufacture Fulfill
#5 Leverage Low-Cost Computing Performance and Scalability Oracle Real Application Clusters For Linux Lower cost of entry Lower cost of ownership Plug-and-play scalability Reliable
#6 Ensure Visibility and Accountability The Oracle Story! Cultural shift 10 years ago need more than new technology purchases! Technology for information visibility Close books in 4 days vs. 13 days Support local regulations in 64 countries from a single instance! Mandatory business ethics training for every employee
#7 Build a Culture of Agility Open & Modular Technology Facilitates Change! Implement by Business Flow Implement based on your business priorities Time Start with one flow, demonstrate initial success Add more flows to expand business coverage! Flows are seamlessly integrated Replace disparate systems Eliminate data synchronization Decrease time and cost to implement
How You Can Get There! Think global/enterprise wide! Build a 3-5 year plan! Obtain top management commitment! Manage change! Simplify business processes! Standardize, don t customize! Automate all business flows
Oracle Lease Management
Why Leasing?.! Customer & Market Driven Existing customers wanted Oracle software to run their leasing businesses Software currently in the market! does not provide a comprehensive solution! is not based on up-to-date technology! is not on the web! Existing Functionality Natural Product Extension Oracle Contracts and Oracle Fixed Assets applications are already successfully in use worldwide Other applications in the E-Business Suite provide a significant percentage of functionality required for a leasing solution
Oracle s Vision! Full Lease Lifecycle Integration of the E-Business Suite proven applications and new leasing functionality provides the entire lease lifecycle functionality! Asset-based Financing and Contract Management Asset-level or consolidated billing Tax and depreciation Track installed base, anticipate returns Asset operations, including terminations, splits! Actively Manage Multiple Relationships Lessee: master lease agreements; service agreements (combined billing option) Partners: operating agreements; vendor programs Investors: syndication agreements
Oracle s Vision, continued! Configurable Easily configure new financial products Product & Accounting Engines! Inter-departmental Business Flows! Global Business processes follow a logical flow Enhanced productivity and lower costs Single instance Multi-currency, multi-gaap! Data Sharing with Customers and Partners Cost savings Browser access
Key Facts! Created in conjunction with a large global equipment leasing company as a Design Partner! Effort started in 1999! I am pleased to announce the immediate availability of a controlled production release of Oracle Lease Management for early adopters! Over 100 Oracle staff and a significant number of subject matter experts from our Design Partner! Development team with significant leasing business and applications experience! Work is already underway on significant additional functionality for the next release
Creating the Leasing Solution! Functional requirements were driven by: A global leasing company as Oracle s Design Partner Industry executives and acknowledged industry experts Oracle Credit Corporation Oracle s product management teams! Requirements were divided into four categories 1 Existing Functionality Existing Modules The Oracle Leasing Solution 2 Existing Functionality Enhancements Existing Modules Oracle E-Business Suite 3 New Functionality New Module - Oracle Lease Management 4 Complex Lease Pricing Software SuperTRUMP by Ivory Consulting
Oracle E-Business Flows for Leasing Opportunity to Lease Quote Credit Application to Booking Invoice to Receipt Quote to Termination Asset Return to Disposal Accounting Period Open to Close Inquiry to Resolution
1. Opportunity to Quote Identify Identify Prospect Prospect Qualify Qualify Prospect Prospect Select Select Assets Assets Structure Structure the the Deal Deal Generate Generate Quote Quote 2. Credit to Booking Complete Complete Credit Credit Application Application Make Make Credit Credit Decision Decision Author Author Contract Contract Activate Activate Contract Contract Pay Pay Vendor Vendor Journalize Journalize Accounting Accounting Entries Entries
3. Invoice to Receipt Create Create Billing Billing Item Item 4. Quote to Termination Generate Generate Invoice Invoice Collect Collect Outstanding Outstanding Payments Payments Receive Receive Payments Payments Journalize Journalize Accounting Accounting Entries Entries Restructure Restructure Quote Quote Termination Termination or or Repurchase Repurchase or or Restructure Restructure Repurchase Repurchase Journalize Journalize Accounting Accounting Entries Entries Terminate Terminate Contract Contract 5. Asset Return to Disposal
5. Asset Return to Disposal Return Return Asset Asset Remarket Remarket Asset Asset Sell Sell Asset Asset Record Record Remarketing Remarketing Costs Costs Journalize Journalize Accounting Accounting Entries Entries 6. Period Open to Period Close Generate Generate Accruals Accruals Calculate Calculate Loss Loss Provision Provision Calculate Calculate Write Write Down Down Values Values Perform Perform Periodic Periodic Adjustments Adjustments Journalize Journalize Accounting Accounting Entries Entries
7. Inquiry to Resolution Log Log Customer Customer Inquiry Inquiry Resolve Resolve Inquiry Inquiry Communicate Communicate Result Result Log Log Resolution Resolution
Value Propositions! Better Management Assets, portfolios & contract quotes and renewals Information intelligence single source of data! Customer Focus 360 degree view of the customer (TCA) Ease of third party relationships! Better Accuracy Workflow approvals Automated QA checks Document contract versions & transaction history! Higher Levels of Operational Control Billing & invoices accurately reflect usage and entitlement Security levels; Set-up authority
Leasing Industry Focus! Current industry conditions (1) are addressed by Oracle Lease Management Tight Funding! More use of vendor programs, private labels, syndication # Third Party Functionality is robust Cost Reduction! Niche players, point solutions, and packages force customization and integration and drive higher costs # Fully integrated, highly configurable application with single database Greater Productivity! Inter-connectivity among departments and systems is key # Designed around key business flows Earnings Growth! Often achieved through portfolio or company acquisitions # Mass contract import (1) Per ELA Study
Risk Minimization! Integrated Suite Not Point Solutions Stuck Together! Common database! Significant existing functionality in use! Proven software architecture and technology stack! All on the Internet! Oracle Consulting knows Oracle Lease Management! Oracle Consulting partners including CGE&Y, BearingPoint and Northern Consulting have invested substantially in Oracle Lease Management training and in expert testing programs With OC and Partners, a full spectrum of business, leasing and technical expertise is available
Oracle Consulting
Involvement with Lease Management! Since the inception of Oracle Lease Management Product Management Design Partner Interface Testing & Training! Currently engaged to prepare an Oracle Lease Management Proof of Concept for a leasing company! Over 3,000 experienced professionals focused on the financial services industry! Integrated processes, standards and project management tools Application Implementation Methodology! Significant Partner involvement
OC s AIM Phases Project Planning & Definition! Project planning and definition: review project plan, scope, objectives and approach; document current business process baseline; develop future process models. Operations Analysis! Operations analysis: map business requirements to standard process flows and application functionality. Solution Design! Solutions design: deliver conversion plan, develop testing strategy, develop transition and contingency plans, define applications set-ups. Build! Build: develop conversion environment, perform system testing, test conversions and deliver transition plan. Transition! Transition: train users, convert and verify data, enter set-ups, verify readiness, go live. Live Production! Production: production cut-over; begin system support cycle.
The Oracle Proposition! Leadership in Transforming the Leasing Industry Oracle Lease Management! First full global lease lifecycle enterprise application Oracle Technology! All on the Web Oracle Consulting! Implementing Oracle around the world
Q & A