1. Survive and Thrive in the Billing and Collections Arena
An Evolutionary Tale
Michael Schillo – Vice President, Finance, Sony Pictures Home Entertainment
Jeff Haller – Managing Partner & CEO, DataServ 1

2. Survive and Thrive in the Billing and Collections Arena
Michael Schillo
Sony Pictures ($2 billion division of Sony) since 2006
Credit and collections for U.S. operations
Customers 2

3. Survive and Thrive in the Billing and Collections Arena
Sony’s AR process evolution:
Paper to electronic
Automation driven
Timely resolution of open items
Results focused 3

4. Survive and Thrive in the Billing and Collections Arena
Business need - Reduce $250 million of outstanding customer deduction balances
Business situation
Paper everywhere
Incomplete automation
Lack of operational metrics 4

5. Order To Cash Cycle Supply Chain Supplier Shipment Requests
Customer
Shipping and
Receiving
Facility
Shipment Requests
Purchase Order 850
Remittance Advice 820
Invoices 810
Shipments
& Returns
Deduction Detail 812

6. Survive and Thrive in the Billing and Collections Arena
Annually-
5 million orders
2 million invoiced with price
3 million invoiced on consignment
350,000 issues to resolve
120,000 operational issues to resolve
Low dollar transactions (average cost of DVD is $7)
The process was:
5 minutes with customer minutes requesting info days to receive info days to reconnect with customer 6

7. Survive and Thrive in the Billing and Collections Arena
Three issues needed to be addressed quickly:
Promotional rebates
Speeding and reconciling returns
Deduction workflow
Speed!!! Creates value! 7

8. Survive and Thrive in the Billing and Collections Arena
The Big Idea – Quickly build SaaS workflow solution:
All “sales cycle” documentation
Instantly available
Exportable to clients
INVOICE
PACKING SLIP
PROOF OF DELIVERY 8

9. Survive and Thrive in the Billing and Collections Arena
Performance (2006 to 2012)
Collections up $200 million
“Paybacks” up 350%
Collection time down 44%
Labor costs down 45% 9

10. Survive and Thrive in the Billing and Collections Arena
Tips for Success
Speed is the most important lever for success
Focus on things you can solve
Establish clear goals and accountability
Tell your story
Help management understand how valuable you and your function are to their bottom line – money talks!
Have a continuous improvement mindset - Rome wasn’t built in a day 10

11. Survive and Thrive in the Billing and Collections Arena
Future Goals
Expand automation focus outside of my direct areas
Bring efficiencies and approach to the Sony global organization 11

12. Survive and Thrive in the Billing and Collections Arena
Questions?