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
9
9
9

Service Contract Creation Processes

Viewing Entitlement in Oracle Service Applications
Service Contract Action Processes
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
2 Products & Warranties
Service / Usage Agmts
3

Sales

Bill & Invoice

Ord
ers

Define
Coverage

Service
Contracts
Repository

T&Cs
Contract Mgr

Service Requests

5 Renewal Notifications
Service

Customer
Customer
Returns, RMAs

s
ent
m
itle
Ent

Create
Contract
Verify
Entitlement
Provide
Service

R
e
n
e
w

Bill &
Collect

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
Order,
Included
Warranty

Fulfill

Create IB
& Service
Contract

Accurate
Entitlement
Prevents
Leakage

Warranty
To Expire,
Notify Rep
& Customer

Extended
Warranty
Selling,
No Lapse
In Service

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
Sales
Order,
Extended
Warranty

Fulfill,
Invoice,
Rev Rec

Create IB
& Service
Contract

Accurate
Entitlement
Prevents
Leakage

Contract
To Expire,
Notify Rep
& Customer

Proactive
Renewals,
No Lapse
In Service

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
Author
Service
Agreement

Assign Multi
Level

Generate
Billing,

Entitlements

Rev Rec

Accurate
Entitlement
Prevents
Leakage

Contract
To Expire,
Notify Rep
& Customer

Proactive
Renewals,
No Lapse
In Service

Analyze:
Recurring
Revenues

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
Content
Outsourcing

Industrial
Equipment

High Tech Equipment

Software
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