Oracle Credit Management: An easy solution for evaluating customer credit worthiness

1. Oracle Credit Management: An easy solution for evaluating customer credit worthiness Gaurav Tomar Usha Raghavan TIBCO Software Inc. Ubex Corporation gtomar@tibco.com usha.raghavan@ubex.com Jan 17, 2007

2. Agenda • Introduction • Process Overview • Issues • Solution Overview • Challenges • Costs/Benefits of Implementation • Conclusions • Q&A

3. TIBCO Software Inc. • TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business. • With over 2,500 customers, TIBCO has given leading organizations around the world better awareness and agility—what TIBCO calls The Power of Now®. • TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains. • Visit www.tibco.com for more information

4. Process Overview Credit Management team Prospects/customers Sales Team Decision Recommendation Customers

5. Terminology • Party – A party is a person, organization, or collection of parties that can enter into relationships with other parties. • Customer/Account – The accounts are associated to the party and all transactions (orders, invoices etc.) are linked to account. • Sites – The locations (seen as addresses on customer form) are sites. E.g. Bill To, Ship To etc.

6. Current Scenario Parent Party 3COM(Parent) Parent Customer/ Account Reporting Relationship Party (3COM – LA) Party (3COM – EU) Credit Limit at Customer level in different currencies Customer/ Account Customer/ Account Bill toSite Bill toSite

7. Issues • Business Issue • No global visibility of credit worthiness at customer parent level • Credit approval is manual • SOX documentation • Occasional occurrence of shipping goods to bad debt customers • Delay in the shipment due to delay in the credit validation of the customer • Possibility of storing redundant customer Credit data • Possibility of data entry error • Disconnected and manual processes

8. Parent Party 3COM(Parent) Parent Customer/ Account Bill toSite (Optional) Party (3COM – EU) Party (3COM – LA) Customer/ Account Customer/ Account Bill toSite Bill toSite Future Scenario Credit Limit at parent party level in USD will be shared by group of customers in hierarchy Party Relationship

9. Solution Options

10. Oracle Credit Management Oracle Credit Management, a member of receivables and revenue management helps to improve the timeliness of the credit decision making process based on the credit data collected for customers and prospects. It helps to achieve: • Established credit policies and standards for customers and prospects across the enterprise • Periodic credit review and assessments • Flexible credit scoring models for customers and prospects • Monitor existing customers’ payment practices throughout the business relationship • Seamless integration with Dun & Bradstreet

11. Solution Overview Credit Management team Sales Team Prospects/customers Decision Recommendation Customers

12. Processes Supported in OCM • Credit limit at the parent party level • Approval process within Oracle • Automated on-Line Credit Application • Checklist to identify required and optional data points to be collected during a credit review • User-defined credit scoring models • Case folder, central repository for credit review information • Recommendations for each credit applications • Performance measurements of customers • Single currency credit limit (USD) in a multi-currency setup • Periodic credit reviews

13. Implementation Features • Credit limit for group of customers at the parent party level • Parent Party level credit limit in single currency • Classify customers for credit - High risk, Medium risk, Low risk • Multiple checklist for combination of Credit Classifications and review type • Automate recommendations for low risk customers • Intelligent Review and Approval Routing • Credit applications for review and approval by region (US, APAC, EMEA) • Enable credit application approval from multiple credit managers • Custom programs • Facilitate initial credit limit determination • Build customer relationship programmatically • Automation of initial credit application

14. Setup – Credit Scores

15. Setup – Checklists

16. Setup – Credit Analyst Assignments

17. Credit Application

18. Analysis – Case Folder

19. Analysis - Case Folder Review

20. Performance Review

21. Challenges • Relatively New Module • Customizations specific to TIBCO • Credit worthiness management modeling • Defining new business process • Coordination and Training globally with different business units

22. Benefits of Implementation • Completely integrated credit review and approval process • Real time information available • Minimized data entry error • More in sync data • History of credit increments • Sox related requirement fulfilled • Better customer relationship

23. Costs of Implementation • Infrastructure • No additional hardware and instance • Licensing • No additional licensing required for users • Implementation • Implementation time is short • Training • Minimal

24. Conclusions • Better business process • Improved productivity • Assessing credit ahead of time helps to make better business decisions

25. Ubex Corporation • Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications • Ubex is an Oracle Certified Partner • Visit Booth # 14 today or www.ubex.com for more information • Enter for a chance to win Nintendo Wii !!!