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

Agenda

 Introduction
 Process Overview
 Issues
 Solution Overview
 Challenges
 Costs/Benefits of Implementation
 Conclusions
 Q&A

© 2007 UBEX Corporation and TIBCO Software Inc. . 2

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 3

 Process Overview

Credit
Management
Prospects/customers Sales Team team

Decision

Recommendation

Customers

© 2007 UBEX Corporation and TIBCO Software Inc. . 4

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.

© 2007 UBEX Corporation and TIBCO Software Inc. . 5

Current Scenario

Parent Party
3COM(Parent)
Parent Customer/
Account

Reporting
Relationship

Party Party
(3COM – EU) (3COM – LA)
Customer/ Credit Limit at
Customer/ Customer level in
Account Account
different currencies

Bill to Site Bill to Site

© 2007 UBEX Corporation and TIBCO Software Inc. . 6

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 7

Future Scenario

Parent Party Credit Limit at parent party

level in USD will be shared by
3COM(Parent)
group of customers in hierarchy
Parent Customer/
Account
Bill to Site (Optional)
Party Relationship

Party Party
(3COM – EU) (3COM – LA)

Customer/ Customer/
Account Account

Bill to Site Bill to Site

© 2007 UBEX Corporation and TIBCO Software Inc. . 8

Solution Options

Option Advantages Disadvantages

Implement 3rd Party  Short implementation time  Disparate systems

Software  Licensing cost
 Retraining of users

Enhance existing  Proprietary processes supported  Long development time

system

Implement Oracle  Short implementation time  Retraining of users

Credit Management  Product flexibility helps support  New module
proprietary processes

© 2007 UBEX Corporation and TIBCO Software Inc. . 9

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 10

 Solution Overview

Credit
Management
team
Prospects/customers Sales Team

Decision

Recommendation

Customers

© 2007 UBEX Corporation and TIBCO Software Inc. . 11

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 12

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 13

Setup – Credit Scores

© 2007 UBEX Corporation and TIBCO Software Inc. . 14

Setup – Checklists

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Setup – Credit Analyst Assignments

© 2007 UBEX Corporation and TIBCO Software Inc. . 16

Credit Application

© 2007 UBEX Corporation and TIBCO Software Inc. . 17

Analysis – Case Folder

© 2007 UBEX Corporation and TIBCO Software Inc. . 18

Analysis - Case Folder Review

© 2007 UBEX Corporation and TIBCO Software Inc. . 19

Performance Review

© 2007 UBEX Corporation and TIBCO Software Inc. . 20

Challenges

 Relatively New Module

 Customizations specific to TIBCO
 Credit worthiness management modeling
 Defining new business process
 Coordination and Training globally with different
business units

© 2007 UBEX Corporation and TIBCO Software Inc. . 21

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

© 2007 UBEX Corporation and TIBCO Software Inc. . 22

Costs of Implementation

 Infrastructure
 No additional hardware and instance

 Licensing
 No additional licensing required for users

 Implementation
 Implementation time is short

 Training
 Minimal

© 2007 UBEX Corporation and TIBCO Software Inc. . 23

Conclusions

 Better business process

 Improved productivity
 Assessing credit ahead of time helps to make better
business decisions

© 2007 UBEX Corporation and TIBCO Software Inc. . 24

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 !!!

© 2007 UBEX Corporation and TIBCO Software Inc. . 25

© 2007 UBEX Corporation and TIBCO Software Inc. . 26