Self-Service applications to drive cash collection, reduce DSO, and improve efficiencies

1. Self-Service applications to drive cash collection, reduce DSO, and improve efficiencies Avolent and SPG NorCal OAUG Training Days March 7th, 2005

2. Francesco Hidayat – SPG, Executive Vice President of Consulting Services • Chris Kenney – Avolent, Global Director of Alliances

3. Overview • SPG • Who is SPG • Tasks and Challenges faced by OA Users • Taking a unique approach • Avolent • Who is Avolent • What Finance is really thinking • Addressing Finance’s needs • Case studies • Qualifying the pain • Q&A

4. Francesco Hidayat – Executive Vice President of Consulting Services

5. Who is SPG • Southern Pacific Group is a Management Consulting firm with offices in Southern and Northern California. • Management team alumnus from Accenture, Ernst & Young, and Deloitte • Experience in over 80 Oracle implementations • Broad expertise in extending your investment in Oracle applications

6. Tasks • Financial Business Units are looking to automate the invoice to settlement process: • Self-service: reduce costs via enterprise wide and customer instant access to data with Oracle (DSO’s, invoice reprints) • Automate manual processes: (payment, reconciliation) • Leverage their Oracle Investment: rapidly introduce new services/products that access data within Oracle • Greater insight: data from different systems in disparate business units

7. High Processing Costs: $44-$66 per invoice

8. Challenges • Oracle Applications professionals are faced with: • Self-service: Limited access to data with Oracle modules • Automate processes: lack of IT dollars and resources • Leverage Oracle Investment: constantly dealing newly with acquired systems and customers • Greater insight: can’t integrate data from other vendor and home grown system

9. Taking a unique approach • Evaluate an approach that can provide: • Self-service: acts as a front end to provide access to invoicing and customer data from Oracle and other systems • Automates processes: invoice payment, cash management, reconciliation, disputes, invoice customization, etc. • Leveraging Investment: incorporates new customer or systems without upgrading or replacing existing systems • Greater insight: pull data from different systems, push out to customers, and foot back billing information to systems for disparate business units

10. ROI Beyond Invoice Presentment Cash Flow Control & Insight ROI • Ability to automate, consolidate and reconcile among multiple systems. • Provide customers with approval workflow, proof of delivery, and A/P ready formats. • Analytics, discount management, and cash flow forecasting. ROI: Streamlined financial processes, and proactive control of cash flow. Interactive Invoicing • Customer portal with the ability to pay, dispute, match, search, and report. ROI: Reduced support calls, faster cash flow. Capabilities The Basics • Presenting Electronic Invoices via email. ROI: Reduced Printing Costs. Business Benefit

11. Chris Kenney – Global Director of Alliances

12. About Avolent • E-billing and cash flow optimization software • Over $44 billion invoices processed through BizCast • Serve companies with large numbers or complex invoices • Front-end to Oracle and other ERP, SCM, CRM systems • Provides finance dept with greater insight and control into the “invoice to cash” process • Reduce costs and streamlines financial processes between company and their customers: • Electronic Invoice Presentment & Payment • Customer Self-Service • Cash Management and forecasting • Dynamic Trades terms Management Key Bank

13. Providing value

14. Why Avolent for Oracle Users • With Avolent’s BizCast: • Oracle customers can incorporate automated financial processes into their global ERP, CRM and self-service strategies • Enables Oracle to act as a central solution for all customer interactions • You have a front-end solution that integrates Oracle with proprietary and other vendor based systems

15. Extending your Oracle Investment: • Invoice & Lower Level Invoice Data Consolidation • Cash Management and Allocation from Consolidated Invoice to Desperate Back Office A/R & Billing Platforms • B2B Multiple Invoice Distribution (Email, Fax, XML) • B2B Multiple Invoice Reprint Download • Complex B2B Usage Reporting • Dynamic Drill-Down into Complex B2B Account Hierarchies • Proof-of-Delivery Real-time Integration & Reconciliation • Line Item Dispute Management & Note Collaboration • Complex B2B Invoice Template Management & Configuration • BSP – Multiple Biller Support • Integrated Pay-Side Data Analytics (from Supplier Portal)

16. BizCast in your environment

17. Bills Customer Account Management Reports Billing & Finance Today’s Inefficient and Manual Processes Existing IT Systems Shipping Billing Order mgmt Financials A/R Customer Service Inquiries, Disputes Reconciliation, Payments IT Compounded by: • Confusing customer experience • No clear audit trail of changes • Mess of credits/payments • Large write-offs Account Inquiry & Status

18. How Do You Know? Just Look At Your Invoices… Reconciliation Inventory Management Credit Calculation

19. …and your processes. What processes are your customers asking you to do? Search “Help me find the invoice that…” Custom Reports “How much have I spent on x, y, and z” Archives “I need a copy of an old invoice” “I never received an invoice”

20. Customer Service • Search • Archive • Adjust • Manage Cash • Allocate • Forecast • Customers • Receive • Pay • Dispute/Adjust • Download • Analyze How eBilling Fits In Subsidiary #1 Billing System Subsidiary #2 Billing System eInvoice Direct to A/P Network Printer Service A/R System ERP System EmbeddedAccess (Siebel, Remedy, etc.) • BizCast: • Consolidates all back-end billing systems • Creates eBills to be reviewed/paid/disputed • Tracks all steps of the invoice-to-cash cycle

21. Benefits of Avolent Solution Reduce paper billing and payments costs 60-90% Lower IT maintenance costs 40-80% Reduce costs across a number of business processes • Eliminate paper & postage costs • Eliminate invoice reprints • Eliminate rebilling • Reduce payment processing costs 30-75% • Increase remittance accuracy • Eliminate IT-supported customer requests for reports, data downloads, and custom statements • Enable shared services for billing, AR • Eliminate need for consolidated billing initiatives • Billing • Payment • Cash application • Reconciliation • Deduction resolution • Customer service Streamline invoice-to-pay process Improve financial efficiency 10-45% Increase overall revenue and profit • Streamline reconciliation 20-60% • Eliminate cash app exceptions • Reduce dispute resolution times 20-80% • Reduce bill delivery times 10-60% • Reduce DSO 10-25% • Reduce working capital requirements 5-15% • Improve cash forecasting accuracy • Handle more new business without adding headcount • Improve customer service & related customer sat • Deliver consolidated business lines

22. Case Study – F50 Manufacturer/Distributor • Overview • $40 billion in revenue • Over 100 million invoices w/a billion line items annually from 1 million + customers • Problems • High DSO • Decentralized invoice management with disparate systems • Costly customer service for reconciliation, invoice reprints and archiving • Multiple costly and manual financial processes • Solution • Reduced DSO to industry lowest • Consolidate invoices from multiple systems and foot back payments – saving $5-10 million on replacing or updating IT investment • Saved approx. $1 million annually on archiving • Provide self-service for dispute resolution, reprint requests, spending analysis, approval and payment

23. Case Example – F200 Manufacturer/Services • Problem: • Global provider with decentralized invoice management system in 7 regions • High volume of invoices, calls about invoices • Complex invoices that customers want to customize – 180+ templates • High cost of reconciling payments • Want to improve “customer lock-in” • Solution – EIPP System • Eliminate the paper • Reduce 180+ templates to 15 • Eliminate 30-50% of printing costs • Streamline the exchange • Allow customers to modify look-and-feel of invoices • Downloadable in many formats, reports • Eliminate the process • Electronic payment, auto-reconciliation

24. Case Study – F1000 Financial Services firm Overview • $8.5 billion provider of office equipment • Over 10 million invoices per year for leased equipment • Write-offs from incorrect invoicing costing several million dollars a year Program • Consolidate invoices from multiple ERP systems from disparate business units • In a price commoditized industry, reduce back-office costs • Provide self-service as a competitive differentiator and to reduce costs • Need to accelerate cash flow and reduce Day Sales Outstanding (DSO) Results: • Projected DSO savings in first 4 years of $1.6 million • Save $5 million by not replacing/upgrading billing systems • Projected $9 million dollar savings in write offs in first 4 years

25. Is this right for your needs? • Highest ROI occurs when: • 2,000+ invoices per month • Invoices are complex • Invoices are consolidated from multiple back-end systems • Lots of invoice processing and administrative costs • Poor DSO • How to find out – ask your customers first! • The Customer Readiness Assessment Survey • Results determine ROI • Ask the Analysts • BizCast #1 EIPP solution – Forrester, Celent

26. Southern Pacific Group Northern California Office 2033 Gateway Place 5th Floor San Jose, California 95110 www.spgus.com Contact Information: Mark West, Vice President Office: 408-961-8675 Mobile: 818-368-4041 mark.west@spgus.com