Development of new product and new business unit for company.

1. Case Study: Online Resources Card & Credit Services Division Phase 1:Selecting a new business strategy PROBLEM Incurrent, a small $10M+ company providing private-labeled self-service website to cardholders, was in a now-saturated market. They had multiple competing plans for new growth, but not enough resources to pursue all ideas. SOLUTION Develop competing business models to contrast and compare revenue potential versus cost to develop, and decide which plan was best. Build software for new business line and market the product. Note: Incurrent was later bought by Online Resources and named Online Resources Card & Credit Services Division

3. Create common business plan template and spreadsheet analysis

4. Use three industry experts for market and product input

5. Small Business Credit Cards

6. Commercial Credit Cards

7. Credit Card Collections

8. Analyze and organize all input

9. Work with business analyst and VP Software Development to estimate costs and potential sales over a 3 – 5 year timeline

10. Present recommendations to Senior Management

11. Results

12. Online Collections product targeted for credit card industry had similar costs to Small Business Cards market, but had greater revenue potential and could ultimately be extended beyond the credit card markets

14. Develop private-labeled Online Collections product initially targeted to credit card industry

15. Product Plan

16. Partner with credit card collections consulting firm to develop product specifications (Industry expertise was lacking within Incurrent)

17. Build new application on top of existing software platform to increase time-to-market

18. Marketing Plan

19. Online Collections software was a new product concept, so product category needed to be established

20. Collections industry is very results oriented – even the small improvements in collections rates considered important – so proof of effectiveness was needed

22. Marketing Strategy Proving the efficacy of the product White Paper Used first client (top-3 bank credit card issuer) to do a “Champion-Challenger” study comparing the 10% of debtors that received the option to settle their debt online with those that did not receive this option. Results made it clear that banks could not only significantly affect loss avoidance, but that late stage accounts were impacted positively – overcoming the assumption that this group would not go online to pay debts. ROI Analysis Created a spreadsheet that sales reps could use to estimate loss avoidance for prospective clients based on results from Champion-Challenger study.

23. Marketing Strategy Online advertising promoting the acceptance and efficacy of the product Landing Page

24. Marketing Strategy Direct mail program prior to major trade show

25. Refining the strategy & growing the market potential Phase 2:Refining the strategy and growing the market potential STATUS UPDATE Incurrent is acquired by Online Resources. Two competitors were now in the online collections market challenging the feature set of the existing product. Underlying technology makes product costly to install and maintain, making moving down-market in credit card industry and out to other verticals impossible. NEXT STEPS Do a new business plan for the product, opening it up to additional markets. Create a product and marketing strategy to expand product both down-market in the credit card industry and out to new verticals.

27. Rewrote online collections business plan

28. Extended market reach to:

29. Both large and medium-sized banks and moved beyond just credit card portfolios to unsecured consumer loans

30. Asset Receivable Management (ARM) companies: Contingency Collections, Debt Buyers, Legal Attorneys, First-Party Collectors

31. Created new pricing strategy:

32. For banks, pricing based on size of portfolio

33. For ARM industry, contingency pricing plan

34. Created product strategy imperatives:

35. Reduce time and cost to install system, and reduce ongoing maintenance costs

36. Provide functionality to serve new markets and address competitive weaknesses

37. Provide enough flexibility for anticipated next round of new markets (auto loans, student loans, telecom, utilities, etc.)

40. Recurring Payments

41. End-to-End Payments

42. Config Override Action Type

44. Debtor-Entered DataPackaged Actions & Strategies Account Data:Multi-tenantInput and output API (NEW) Note: Multi-tenant = Issuer Service Bureau

45. Product Strategy Assessed needs of existing clients and prospects to make sure that timing of new features would not jeopardize closing new deals or keeping exisitng clients.

47. Recurring Payments (Maint)

48. End-to-End Payments (eCom / PS)

49. Config Override Action (108 hr /partial)

51. Debtor-Entered DataPackaged Actions & Strategies Account Data: Multi-tenantInput (3)and output API (180 hr) Releases: (1) 12/1/06 (2) 12/29/06 (3) 1/29/07 (4) 3/2/07 require more resources / Add’l Hours: Unscheduled

52. Product Strategy Mapped development schedule to Sales Timeline to maximize short-term revenue. Development Timeline All new Manager products + multi-tenant / service provider All Other 2,000 Hours 2,000 Hours 2,000 Hours 2,000 Hours July 31 2006 Brandywine October 31 2006 April 30 2007 January 31 2007 July 31 2007 Sales Timeline U.S. Large Issuer / Bank ARM Market July 31 2007 January 31 2007 October 31 2006 April 30 2007 July 31 2006

53. Marketing Strategy Renamed product: Virtual Collection Agent The concept of a “Virtual Collection Agent” was more effective than “Online Collections”at making prospects understand both what the product did and its benefits over live agents in terms of cost-savings and adhering to regulatory requirements.

54. Marketing Strategy Created 2 versions of sales materials to support the credit card & ARM industries Credit Card Industry ARM Industry