Oracle

Service
Contracts
Minimize Service Revenue Leakage
Transforming Customer Support from a Cost Center to a Profit Center

Kevin DeMartelaere
Principal Solutions Consultant
 Agenda

Oracle Service Contract Flows / Integrations

9 Service Contract Creation Processes
9 Viewing Entitlement in Oracle Service Applications
9 Service Contract Action Processes
9 Contract Self Service Possibilities
Measuring Service Contract Value
9 Daily Business Intelligence
Customer Successes
 Why Contract Management Matters

Operating & Processing Costs 10-30% Automate

Contract Negotiation Cycle Time 50% Electronic
Volume of Erroneous Payments 75-90% CoTermination

Additional (New) Contract Revenue 1-2% Service Programs

Renewal Revenue 30% Anticipate
Compliance with Regulatory Guidelines 90-100% Ts & Cs

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
Oracle Service Contracts Integrated Solution
Service Provider / Product Manufacturer
1 Proposals, Quotes
Ord Define
Sales
ers
2 Products & Warranties Coverage
Service / Usage Agmts
Create
Service Contract
3 Bill & Invoice Contracts
T&Cs Verify
Repository Entitlement R
Contract Mgr
e
4 Service Requests n
Provide
Service e
s w
m ent Bill &
5 Renewal Notifications itle
Ent Collect
Customer
Customer Service

Returns, RMAs
Integration
Points
AR - Billing, Credit, RevRec Entitlement: TeleService, Field Service,
Order Mgmt - Orders, Returns, Adv Pricing Depot Repair, Mobile Service, PM
Sales - Quoting, iStore, TeleSales Install Base
 Service Contract Selling Processes
Increase Efficiency Through Automation & Integration
Sales Accurate Warranty Extended
Order, Create IB Entitlement To Expire, Warranty Analyze:
Fulfill & Service Prevents Notify Rep Selling, Revenue
Included
Contract Leakage & Customer No Lapse Opportunity
Warranty In Service
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
Sales Fulfill, Accurate Contract Proactive
Order, Create IB Entitlement To Expire, Analyze:
Renewals,
Invoice, & Service Prevents Recurring
Extended Notify Rep No Lapse
Rev Rec Contract Leakage & Customer Revenues
Warranty In Service

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

Assign Multi Generate Accurate Contract Proactive

Author Entitlement Analyze:
To Expire, Renewals,
Service Level Billing, Prevents Recurring
Notify Rep No Lapse
Agreement Entitlements Rev Rec Leakage Revenues
& Customer In Service

Entitlement is sold and assigned to customer, install base, future sales

Enterprise oriented, not sales order
Provides billing schedules, renewal rules, Ts&Cs, approval/management processes, etc.
Demo
Service Contracts:
Cart-to-Order
Quote-to-Order
 Service Contracts:
Order-to-Entitlement
Order-to-Installation
Service Contracts:
Tier1 Support
Interaction Center
Service Contracts:
Tier2 Support
 Service Contracts:
Field Service & Repair
 Service Contracts:
Customer Self Support
Service Contracts:
Author-to-Invoice
Expire-to-Renew
Service Contracts:
Analytics
Customer
Success
 Customer Success
Successful Deployments Across Several Industries

Membership Industrial High Tech Equipment

Content Equipment Software
Outsourcing Data & Networking systems

Demand drivers:
Manufacturers that need to service their products
Industries that have recurring revenues

* Top 125 customers

 High Tech
EQUIPMENT

DATA &
NETWORKING SOFTWARE
 Manufacturing & Services
INDUSTRIAL

CONTENT &
MEMBERSHIP OUTSOURCING