1. Oracle Credit Management: An easy solution for evaluating customer credit worthiness
What do we mean by Real-Time Business?
Gaurav Tomar Usha Raghavan
TIBCO Software Inc Ubex Corporation
Jan 17, 2007

2. Agenda
Introduction
Process Overview
Issues
Solution Overview
Challenges
Costs/Benefits of Implementation
Conclusions
Q&A

3. 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 for more information

4. Credit Management team
Process Overview
Credit Management team
Prospects/customers
Sales Team
Decision
Recommendation
Customers

5. 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.

6. Current Scenario Parent Party 3COM(Parent) Parent Customer/ Account
Reporting
Relationship
Party
(3COM – EU)
Party
(3COM – LA)
Customer/
Account
Credit Limit at
Customer level in
different currencies
Customer/
Account
Bill to Site
Bill to Site

7. 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
Last two points – multiple currency limit maintenance and customer account level maintenance

8. Bill to Site (Optional)
Future Scenario
Party
(3COM – LA)
Customer/
Account
Bill to Site
Parent Party
3COM(Parent)
Parent Customer/
(3COM – EU)
Bill to Site (Optional)
Credit Limit at parent party
level in USD will be shared by
group of customers in hierarchy
Party Relationship

9. Solution Options Option Advantages Disadvantages
Implement 3rd Party Software
Short implementation time
Disparate systems
Licensing cost
Retraining of users
Enhance existing system
Proprietary processes supported
Long development time
Implement Oracle Credit Management
Product flexibility helps support proprietary processes
New module

10. 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

11. Credit Management team
Solution Overview
Credit Management team
Sales Team
Prospects/customers
Decision
Recommendation
Customers

12. 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

13. 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

14. Setup – Credit Scores

15. Setup – Checklists

16. Setup – Credit Analyst Assignments

17. Credit Application

18. Analysis – Case Folder

19. Analysis - Case Folder Review

20. Performance Review

21. Challenges
Relatively New Module
Customizations specific to TIBCO
Credit worthiness management modeling
Defining new business process
Coordination and Training globally with different business units

22. 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

23. Costs of Implementation
Infrastructure
No additional hardware and instance
Licensing
No additional licensing required for users
Implementation
Implementation time is short
Training
Minimal

24. Conclusions
Better business process
Improved productivity
Assessing credit ahead of time helps to make better business decisions

25. 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 for more information
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