Oracle Service Contracts Minimize Service Revenue Leakage Transforming Customer Support from a Cost Center to a Profit Center Kevin DeMartelaere Principal Solutions Consultant
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OracleServiceContracts
Minimize Service Revenue LeakageTransforming Customer Support from a Cost Center to a Profit Center
Kevin DeMartelaerePrincipal Solutions Consultant
Agenda
• Oracle Service Contract Flows / IntegrationsService Contract Creation ProcessesViewing Entitlement in Oracle Service ApplicationsService Contract ‘Action’ ProcessesContract Self Service Possibilities
• Measuring Service Contract Value Daily Business Intelligence
• Customer Successes
Why Contract Management Matters
Additional (New) Contract Revenue 1-2%
Renewal Revenue 30%
Compliance with Regulatory Guidelines 90-100%
Operating & Processing Costs 10-30%
Contract Negotiation Cycle Time 50%
Volume of Erroneous Payments 75-90%
AutomateElectronic
CoTermination
Service ProgramsAnticipateT’s & C’s
“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
CustomerCustomer
Service Provider / Product Manufacturer
Sales
Service
Contract Mgr
Entitlements
Entitlements
OrdersOrders
T&CsT&Cs
ServiceContractsRepository R
enew
CreateContract
ProvideService
VerifyEntitlement
DefineCoverage
Bill &Collect
Integration Returns, RMAs
Products & WarrantiesService / Usage Agmts
Bill & Invoice3
Service Requests4
Renewal Notifications5
Proposals, Quotes1
2
• AR - Billing, Credit, RevRec• Order Mgmt - Orders, Returns, Adv Pricing• Sales - Quoting, iStore, TeleSales
• Entitlement: TeleService, Field Service, Depot Repair, Mobile Service, PM
• Install Base
Points
Service Contract Selling ProcessesIncrease Efficiency Through Automation & Integration
SalesOrder,
IncludedWarranty
SalesOrder,
IncludedWarranty
FulfillFulfillCreate IB& Service Contract
Create IB& Service Contract
AccurateEntitlement
Prevents Leakage
AccurateEntitlement
Prevents Leakage
WarrantyTo Expire,Notify Rep
& Customer
WarrantyTo Expire,Notify Rep
& Customer
Extended Warranty Selling,
No LapseIn Service
Extended Warranty Selling,
No LapseIn Service
Analyze: Revenue
Opportunity
Analyze: Revenue
Opportunity
• 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
SalesOrder,
Extended Warranty
SalesOrder,
Extended Warranty
Fulfill,Invoice, Rev Rec
Fulfill,Invoice, Rev Rec
Create IB& Service Contract
Create IB& Service Contract
AccurateEntitlement
Prevents Leakage
AccurateEntitlement
Prevents Leakage
ContractTo Expire,Notify Rep
& Customer
ContractTo Expire,Notify Rep
& Customer
ProactiveRenewals,No LapseIn Service
ProactiveRenewals,No LapseIn Service
Analyze: Recurring Revenues
Analyze: Recurring Revenues
• 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
AuthorService
Agreement
AuthorService
Agreement
Assign MultiLevel
Entitlements
Assign MultiLevel
Entitlements
GenerateBilling,
Rev Rec
GenerateBilling,
Rev Rec
AccurateEntitlement
Prevents Leakage
AccurateEntitlement
Prevents Leakage
ContractTo Expire,Notify Rep
& Customer
ContractTo Expire,Notify Rep
& Customer
ProactiveRenewals,No LapseIn Service
ProactiveRenewals,No LapseIn Service
Analyze: Recurring Revenues
Analyze: Recurring Revenues
• Entitlement is sold and assigned to customer, install base, future sales• Enterprise oriented, not sales order• Provides billing schedules, renewal rules, T’s&C’s, approval/management processes, etc.
DemoDemo
Service Contracts: Cart-to-Order
Quote-to-Order
Service Contracts: Cart-to-Order
Quote-to-Order
Service Contracts:Order-to-EntitlementOrder-to-Installation
Service Contracts:Order-to-EntitlementOrder-to-Installation
Service Contracts: Tier1 Support
Interaction Center
Service Contracts: Tier1 Support
Interaction Center
Service Contracts: Tier2 Support
Service Contracts: Tier2 Support
Service Contracts: Field Service & Repair
Service Contracts: Field Service & Repair
Service Contracts: Customer Self Support
Service Contracts: Customer Self Support
Service Contracts: Author-to-InvoiceExpire-to-Renew
Service Contracts: Author-to-InvoiceExpire-to-Renew
Service Contracts: Analytics
Service Contracts: Analytics
Customer Success
Customer Customer SuccessSuccess
Customer SuccessSuccessful Deployments Across Several Industries
• Industrial Equipment
• High Tech Equipment• Software• Data & Networking systems
• Membership• Content• Outsourcing
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
OUTSOURCING
INDUSTRIAL
CONTENT & MEMBERSHIP
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