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Service Contract

This document discusses Oracle Service Contracts and how they can help companies minimize service revenue leakage and transform customer support into a profit center. It provides an overview of Oracle Service Contract capabilities such as contract creation, viewing entitlements, contract actions, and self-service possibilities. It also discusses how measuring contract value through business intelligence and automating processes can help reduce operating costs and improve renewal rates. Finally, it highlights customer successes implementing Oracle Service Contracts across various industries.

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SantOsh
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Download as PDF, TXT or read online on Scribd
208 views

Service Contract

This document discusses Oracle Service Contracts and how they can help companies minimize service revenue leakage and transform customer support into a profit center. It provides an overview of Oracle Service Contract capabilities such as contract creation, viewing entitlements, contract actions, and self-service possibilities. It also discusses how measuring contract value through business intelligence and automating processes can help reduce operating costs and improve renewal rates. Finally, it highlights customer successes implementing Oracle Service Contracts across various industries.

Uploaded by

SantOsh
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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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

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