Oracle Credit Management

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Oracle Credit Management Customer Credit Score
and Integrations Presented by Venkatash
Kovela Rapidigm Inc.
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Presenter Introduction Venkatash Kovela Rapidigm
Inc. Contact Vkovela_at_Rapidigm.com
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Session Agenda

• Release Information
• Who Should Use?
• Benefits of using OCM
• OCM Advantages
• OCM Integrations
• Brief OCM Functionality Overview
• Scoring Model Strategy
• Case Folder View
• Question and Answers

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Release Information
11.5.9
11.5.10
11.5.10 FP.G
11.5.10
FP.D
FP.F
OCM.A Rollup Patch OAF 5.7H
OCM.C
OCM.D
OCM.B OAF 5.10
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Who Should Use?

• Industry Focus Practically any industry
• Suitable for customers who use home grown
  solutions and/or have extensive customizations
  for credit application review and approval
  processes
• Customers who are investigating and spending on
  high budgets and have manual decisions in place
• Customers who have extensive credit policies
  including global risk zones
• Customers who Credit Agencies like Dun and
  Bradstreet (DB), Global Credit or Seafax etc for
  credit decision

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Benefits of using OCM

• Good customer scoring strategies will have better
  visibility, quicker decision making, reduces
  manual efforts and increase in the profitability
• Reduces the credit-to-cash life cycle
• You can have aggressive and/or conservative
  credit policies based on customer classes
• Track credit performances and history of credit
  decisions and run reports as needed
• Continuous and scheduled periodic credit
  evaluations for high risk customers or for all
  customers
• Matches global credit policies
• Strengthen internal controls and policy
  compliances

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OCM Advantages

• It can be easily configured on top of an existing
  11i implementation (minimum 11.5.9 with
  Fin-Pack.D)
• Easy configuration depending on requirements.
• Online credit application and approval process
  will eliminate many home grown systems
• Controls escalating and higher incidences of bad
  debts
• Reduces collection cost and diminishing returns
• Lack of visibility in International Credit. Can
  handle financial risks in global market

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OCM Integrations
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OCM Functionality Overview

• Create manual credit applications at various
  party and customer levels for trade and term
  credits.
• Integration with Oracle Order Management and
  Oracle Lease Management for credit application
  and approval process
• Determine the need of handy check-list data
  points for manual credit reviews
• Determine credit scores based on business and
  corporate credit strategies
• Scoring based on values outside Oracle instance
• Perform automated credit analysis based on scores

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OCM Functionality Overview

• 200 standard data points available including
  financial, credit, collections, aging etc.
• Define additional custom data-points for scoring
  and check-lists views
• Suggest manual or automated credit
  recommendations
• Use Oracle Approvals Management Engine (AME) for
  internal approval hierarchies
• Purchase/Update customer/prospect data using
  integration with DB
• Batch load customer data received from DB
• Use DB data points for online customer scoring
• Monitor Credit Performances

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Scoring Model Strategy

• Build a suitable corporate across the board
  customer scoring strategy
• Scoring Data Points can be numeric or
  alpha-numeric like Country Code, DB Rating etc.
• Each alphanumeric data point must have its own
  range, e.g., Range Low 5A1 and High 5A1
• Prefer data points values with percentage and/or
  with number values like weighted average days
  paid etc.
• More data points used more complex will be the
  scoring strategy

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Scoring Model Setup Elements

• Currency
• Identify scoring data points
• Set value ranges
• Assign score points 0 for low and 100 for best
  score
• Assign weights to make 100
• Calculation example

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Scoring Model - Example
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Alpha-Numeric Data Points
Same Score
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Additional Data Points
Extensible functionality (future Oracle Release)
Associate a PL/SQL function to a data point to
derive the data point value during runtime.
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Automation Rule - Setup
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Check List View
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View of a Case Folder
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View of a Case Folder
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Questions and Answers