Emerging Markets Break-Out Session Kelly Forese, VP Ops and Applications Apps. Day April 8, 2005
Overview of IGN Entertainment l We are a digital entertainment company that transforms the creation, promotion, distribution and consumption of entertainment content and services. § § Rapidly growing company, Acquisitions ~ 1/quarter 280 employees nationwide HQ: Brisbane, CA with offices in NY, Chicago, LA and Irvine. Revenue Model – 3 businesses in 1 § Advertising Clients and Agencies – Online Media § Consumers - Subscriptions and Digital Distribution § Game Publishers - Technology Licensing and Services § >20 million unique visitors a month
IGN Entertainment Network Games. Gear. Movies. Music. Download PC Games Direct to Your Hard Drive Multiplayer Gaming’s Home Page The Latest Gaming News 24/7 Free Games, Downloads, Mods, Patches, Maps, Trailers, Demos and Betas Community and News for the RPG and MMO Gamer The Insider’s Choice for Xbox Information The Universe’s Best Video Game Fan Sites A Bazillion Critics, One Opinion Covering 30, 371 Games and Counting Where it All Begins for 3 D Games for the PC Insight info the Gamer Audience
The Value to our Customers The Internet Value-Add Services Developer / Publisher Research and Develop Market and Promote Distribute Product Extend Product Lifecycle Evaluate content Educate and Inform Acquire Product Enhance Entertainment Experience User (e. g. : Gamer)
Why we were looking for a Solution • Today: We’ve outgrown a collection of largely independent applications, facilitated by manual business processes and controls… • • • Financials: Solomon Order Management: Media Division only, a hosted ASP solution Inventory Management: Manual Billing/Revenue Recognition: Manual Fulfillment Systems: • Ad Serving • Email Marketing • Registration and Subscription Systems – proprietary • Several 3 rd party ad serving solutions Needed to automate our high volume core Media business from Quote/Proposal to Cash, including auto-provisioning the Fulfillment Systems and calculating Revenue Recognition
RFP Overview – Who we considered l Tier 1 Vendors: § Oracle § SAP § People. Soft § cancelled with Oracle acquisition § Siebel (for CRM/OMS only) l Tier 2 Vendors: § § § Great Plains Solomon Navision Best Software Salesforce. com § Rated on Cost, Strengths/Weaknesses, match to our Key Objectives § Create 2 viable solutions for IGN: § Option 1: A single integrated application suite § Tier 1: Oracle Applications 11. 5. 10 § Option 2: A best in class CRM/OMS with a lower cost Financials product and integrate them § Tier 2: Siebel 7. 8 CRM/OMS & Great Plains Financials
Key Decision Factors: l l l Workflow Management Proposal to Cash&Rev. Rec Scalability Web Based Integration Ability Total Cost of Ownership § Acquisition &Integration § Ongoing Operational Std Functionality: Current & Future l SOX 404 l Upgradeability and Extensibility l Technology Oracle scored 3. 9 compared to 2 nd option score of 2. 7 l Scale: 0 to 5 (0 = Not Supported, 5 = Excellent)
Why Oracle? Continued l Oracle Customers in our industry: § At least 10 customers in the online advertising space using Oracle § Yahoo, CNET and others l Employee Feedback: § Strongly in favor of Oracle over other demonstrated solutions. § Depth of experience with Oracle within our finance and IT teams. l One Time Costs: § Oracle 13% more affordable than 2 nd option in acquisition, implementation and integration cost. § Red Hat/Linux Platform and Hardware 30% more affordable than 2 nd option, and substantial experience within IGN already. l Recurring Costs: § Fewer requirements for integration -> full time staff requirements were reduced as well in the areas of integration development and quality assurance.
Why Oracle? Continued l Comparable CRM feature set to Siebel with stronger contract management. l Leverage the more standard functionality with Oracle l With a single integrated solution: § Utilize developer skills across the CRM and the ERP in a single development framework sharing the same data model across the solution. § No duplicate record masters § Upgrading does not require upgrading multiple applications § Deployment hardware requirement is significantly less l The Oracle solution is based on the J 2 EE framework, on which IGN has a strong pool of talent. l The Oracle e. Business Suite also supports future IGN requirements like HR Management Systems, Planning, Budgeting, Incentive Compensation, etc. Implementation of these will not require major effort since they are part of the e. Business Suite already or as optional licensing.
Project Scope and Phases l Phase 1: (Q 305) § CRM, Forecasting § Quoting, Proposal Generation § Advanced Pricing § Sales Contracts § Order Management § Custom Inv Reservations § GL, Sub-ledgers, Invoicing § Revenue Recognition § Internet Expenses § e. Procurement l Phase 1. 5: (Q 405) § Bi-directional ad server integration with full flowthrough provisioning & delivery status § Initial e. Commerce integration l 2006 Phases: § § § Email Server integration Other 3 rd party integration HRMS/SS HR Subscriptions/Support Data Mining, Reporting