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2. <Insert Picture Here>
EBS Oracle Service Contracts:
Strategies to Increase Service Revenue
Susan Flierl Martyn Langley
Product Strategy Director GPO & Senior Director Business Operations

3. 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 decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
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4. Program Agenda
• Strategies to increase service revenue <Insert Picture Here>
• Oracle solutions
• Oracle Service Contracts @ Oracle
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5. Business Environment
A Time of
Change
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6. Service contracts as an annuity
Less volatile revenue stream
High Margin
Repeatable Differentiating
Service
Contracts
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7. Contract base segmentation
Quote by Sales Rep
500k
On-line renewal 100k
Many companies
neglect their smaller
accounts
Evergreen 50k
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8. Contract Leakage Example
STRATEGIC NON-STRATEGIC
Customer Base Allocation 28.5% 71.5%
Support Revenue $85,500,000 $21,450,000
Support Revenue
80.0% 20.0%
Allocation
Current Renewal Rate 92.0% 53.0%
Percent of Revenue Lost 8.0% 47.0%
Targeted Renewal Rate 92.0% 92.0%
Net Increase in Revenue $8,365,500 7%
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9. Oracle Service
Contracts
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10. Oracle Service Contracts Solution
Service Provider / Product Manufacturer
1 Proposals, Quotes
Define
2 Products & Warranties Sales Coverage
Service / Usage Agmts
Create
Service Contract
3 Bill & Invoice Contracts
T&Cs Verify
Repository Entitlement R
Contract Mgr
e
4 Service Requests Provide n
Service e
w
5 Renewal Notifications Bill &
Collect
Customer Service
Returns, RMAs
Integration
Other • AR, Invoicing • Service
Application
Components • OM, Quoting • Install Base
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11. Oracle Service Contracts
R12 & R12.1 Release Overview
Uplift renewal rates
– Improved customer experience with Flexible Assignment Rules for
Customer Communication Templates and Online Acceptance Portal
Enhancements
– Faster renewal cycle times with Service Contracts Administration
Workbench
– Improved renewal rate analysis with Service Line and Covered Level
Cancellation
Reduce financial risk
– Standardize customer coverage with Standard Coverage Definition
– Improve revenue recognition compliance with Partial Period Revenue
Recognition and Defer Revenue for Customer Acceptance Contingencies
– Secure customer payment information with Credit Card Security
Streamline contract administration
– Provide global contract administration tools with Multi-Org Access Control
– Improved service contract visibility when managing customer’s assets
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12. Evergreen renewals
• Automatically renew contracts based on pre-defined rules
to maximize retention rates and ensure service continuity
• Zero-touch web based process automatically renews low
value contracts upon expiration
Renewal Rule Renew Contract
• Credit Status = OK • Update Contract
• Contract > Threshold • Notify Sales / Service Rep
Value Value • Notify Customer 500k
• Expire days < 30 100k
50k
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13. On-line renewals
Notify • Quote layout determined by BI
customer publisher templates
• On-line portal for customer to
accept or request assistance
• Customer can modify payment
methods on-line
• Service contract approval
optional
Approve &
Activate Customer
acceptance
500k
100k
50k
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14. Online Acceptance Portal
R12 Enhancements
Accept, reject or
request assistance
View quote in pdf
format
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15. Online Acceptance Portal
R12 Enhancements
Attach image of Comprehensive
PO or check payment formats
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16. High value renewals
Sales rep
Expiration
• Receives automated
expiration alert
Alert
Approve / Create • Converts expiring contracts
Activate Opportunity into sales opportunities
• Evaluate complementary
products / services
for cross-sell & up-sell
opportunities
• View transaction and
Customer Quote /
interaction history
Acceptance Negotiate • Customer acceptance:
manual or on-line 500k
100k
50k
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17. R12 Service Contracts Workbench
Quick search for your new and renewal contracts
Displays your open contracts
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18. What ProQuest Is Saying
“We have realized significant savings with the upgrade to
Oracle E-Business Suite Release 12. In particular, we
streamlined our renewal process, which has increased
customer satisfaction and retention. And, we minimized costs
with an out-of-the-box deployment strategy for Oracle Service
Contracts.”
– Timothy Hall, Senior Technology Manager, Global Management Systems, ProQuest
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19. Service Contracts
@ Oracle
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20. Program Agenda
• Strategies to increase service revenue <Insert Picture Here>
• Oracle solutions
• Oracle Service Contracts @ Oracle
– Global Single Instance – The story so far
– Scaling Efficiently via renewal automation
– R12 – Transactional to Sales tool
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21. Service Contracts @ Oracle
Introductions
Martyn Langley – Senior Director & Global Process Owner Support
• Manage system footprint and roadmap for Customer Services
• System & Process requirements
• Solution review/sign off
• Release process
• Partnering with IT
• Integrating acquisitions
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22. Global Single Instance –
Overview
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23. Global Single Instance
Then and Now
1998 NOW
• 65+ ERP instances • 1 E-Business Suite instance
• 40 Data Centres • 2 data centres (including backup)
• Inconsistent business processes • Global standard processes
• Fragmented data • Consistent data and global
• Decentralized decision making
business intelligence
• Consistent decision making
– Geography
– Global Process Owner
– Line of business
– Global Application Owner
• Key enabler for acquisitions
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24. Applications Supported by AIT
E-Business Suite Products Implemented
Procurement Human Resources & Payroll Financials
iProcurement Advanced Benefits General Ledger
Purchasing Human Resources Fixed Assets
Accounts Payable Human Resources Intelligence Treasury
Internet Expenses Payroll Cash Management
Payments Time and Labor Subledger Accounting
Property Manager Global Payroll Interface iAssets
Appraisals E Business Tax
Projects Talent Management Response Capture
Projects Compensation Workbench
Project Resource Management iRecruitment
Project Management Ordering
Self Service Human Resources
Quoting
Learning Management
Order Management
Support Sales Systems
Contracts Core
Service Contracts Manufacturing & Distribution, XML Gateway
Contracts Intelligence Advanced Product Catalog and iStore
Installed Base Pricing Incentive Compensation
Materials Requirement Planning
Internal Support Systems Bill of Materials
Teleservice Inventory Management
Knowledge Management Warehouse Management System
iSupport Work in Progress
Customer Support Engineering
Shipping Delivery Based
Advanced Pricing
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25. Service Contracts@Oracle
Implementation at September 2010
Global
Installed Contracts Single
Base Intelligence Instance
Order Service Accounts
Management Contracts Receivable
Siebel My Oracle
Territories Support
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26. Service Contracts@Oracle
Timeline
GSI to 11.5.6
US to E. Europe/ Online R12 Upgrade, 12.1.3
OKS 11i APAC to GSI Renewals Siebel CRM upgrade
(GSI)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
E. Europe/ 11.5.8 11.5.10 12.1.1 and 11g
APAC to upgrades upgrade upgrade
OKS 11i
W. Europe to W. Europe to
OKS 11i GSI
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27. Scaling Efficiency via
Renewal Automation
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28. Service Contracts @ Oracle
Contract base management
Service contracts is the single application Oracle
utilizes to manage it’s annuity based services
business
June 2010 Oracle contract base
• > 500k contracts
• $16BN
Challenge is how to efficiently manage an ever increasing contract
base?
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29. Contract base segmentation
Contract base management
Business Application
segmentation features
R12 sales features
$782 M
ORACLE
Auto Reminder
11,000 Customers (Includes Canada)
17,522 contracts Micro Renewals
$138 M
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30. Renewals automation @ Oracle
-120 days renewal
Sales rep assigned event fires Automated feed
from territory to delivery system
-90 days Reminder 1 +15 days
Contract
Cancelled
Contract
Quote Sent
renewed
400 + XML Renewal FTP - Service
quotes letters Workflow Suspended
Customer Customer
accepts Invoiced
-60 days Reminder 2 Start date – Final
reminder and
notice to cancel
-30 days Reminder 3
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31. Renewals Automation at Oracle
Leveraging and extending standard functionality
Micro Renewals – ‘Low touch’ processing
• Identify MR upon renewal
– Qualifying service
– Not in Customer exclusion list
– < $5k global threshold
• Contract renews and publishes online
• Customer directed to online site via email
• Customer can Accept / Decline / Request assistance
• Upon acceptance contract automatically approved
Fail to Pay – Suspending Service for non payment
• < $k global threshold
• Customer invoice > 90 days overdue
• FTP program suspends service in Service contracts
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32. Renewals Automation at Oracle
Leveraging and extending standard functionality
Contract Approvals utilizing AME
• Contract approvals ensure compliance to specified business
rules
• Global team of 35 verifying submitted contracts prior to booking
• 11510: approvals assigned to country leader
• Acquisitions increasing volume of approvals
– 1600+ per 24 hours
• R12: use AME to route to the best approver
– Value
– Region
– Service
– Approver Workload and availability
• Increased QA custom checks to 50+ assisting automation and
controlling headcount costs
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33. R12 - Contract Approvals via AME
R12 Solution
• Approvers log their start/end times
– Approver User Ids and group membership in custom lookups
• AME assigns approvers to contracts:
– Contract Attributes determine which AME Rule is True
– Region, Value (dollars), Service Level: e.g. EMEA 100K - 500K
– AME assigns approver from approval group tied to Rule
– Availability and Workload determine approver
– Dynamic group winner defined by sql statement
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34. Sun to Oracle Installed Base Service Contracts
Integration
R12 Solution
• June 2010 Sun IB & Service Contracts migrated into GSI
Description Service IB instances IB instances off
Contracts on Contract Contract
Sun Volumes 138,008 4.1M 12M
• Utilized IB & Service Contracts 12.1.1 open APIs to load data
• 10 days to load & reconcile all data including
• IB instances
• Service Contracts
• IB configurations
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35. Service Contracts -
Transition to a Sales Tool
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36. R12 Service contracts - Sales Tool Capabilities
Administrator Workbench
HTML UI displaying consolidated view of a sales rep’s contracts
– Entry point for day to day management with personalized views to
support individual territory profiles
• Manage •Mass update
renewals capabilities
pipeline
•Email/print
• Update quote
status and
• Enable/Disable
forecast data
Reminders
• Launch
• Run QA Check
contracts to
Online portal • Submit for
Approval
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37. R12 Service contracts - Forecasting
Mass update functionality has enabled Oracle to
transition to automated renewals forecasting
Bookings
Forecast = >50% Forecast
Full Value
At-Risk
Forecast = 1 - 50% Forecast
Full Value
Cancellation
Forecast = 0% Forecast
Full Value
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39. Oracle OpenWorld
Latin America 2010
December 7–9, 2010
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40. Oracle OpenWorld
Beijing 2010
December 13–16, 2010
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