Oracle Credit Management Customer Credit Score and Integrations

Oracle Credit Management Customer Credit Score and Integrations Presented by Venkatash Kovela Rapidigm Inc.

Presenter Introduction: Venkatash Kovela Rapidigm Inc. Contact: Vkovela@Rapidigm. com

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 3 11/29/2020

Release Information 11. 5. 9 11. 5. 10 FP. D FP. F OCM. A Rollup Patch OAF 5. 7 H 4 OCM. B OAF 5. 10 11. 5. 10+ FP. G OCM. C 11/29/2020 11. 5. 10+ OCM. D

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 (D&B), Global Credit or Seafax etc for credit decision 5 11/29/2020

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 6 11/29/2020

OCM Advantages £ It can be easily configured on top of an existing 11 i 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 7 11/29/2020

OCM Integrations 8 11/29/2020

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 £ £ 9 11/29/2020

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 D&B Batch load customer data received from D&B Use D&B data points for online customer scoring Monitor Credit Performances 10 11/29/2020

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, D&B Rating etc. £ Each alphanumeric data point must have its own range, e. g. , Range Low = ‘ 5 A 1’ and High = ‘ 5 A 1’ £ 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 £ 11 11/29/2020

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: 12 11/29/2020

Scoring Model - Example 13 11/29/2020

Alpha-Numeric Data Points Same Score 14 11/29/2020

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. 15 11/29/2020

Automation Rule - Setup 16 11/29/2020

Check List View 17 11/29/2020

View of a Case Folder 18 11/29/2020

View of a Case Folder 19 11/29/2020

Questions and Answers