Mark Foy [email_address] March 14, 2009 Oracle E-Business Suite Install Base and Service Contracts Overview

Oracle Install Base & Service Contracts Overview Present by Mark Foy of Vitalita, Inc. - mfoy@vitalita.com Bio: Mark Foy is an independent Oracle E-Business Suite consultant based on the San Francisco Bay area. He specializes in assisting clients with implementing Oracle Application CRM modules such as Service Contracts, Install Base, TeleService, iSupport, Customers Online, and TCA components. Abbreviations: IB = Install Base SC = Service Contracts CRM = Customer Relationship Management TCA = Trading Community Architecture

Present by Mark Foy of Vitalita, Inc. - mfoy@vitalita.com

Bio: Mark Foy is an independent Oracle E-Business Suite consultant based on the San Francisco Bay area. He specializes in assisting clients with implementing Oracle Application CRM modules such as Service Contracts, Install Base, TeleService, iSupport, Customers Online, and TCA components.

Abbreviations:

IB = Install Base

SC = Service Contracts

CRM = Customer Relationship Management

TCA = Trading Community Architecture

Oracle E-Business Suite Integration

Simplified Standard Oracle Out-of-Box Application Flow Order Management Installed Base Service Contracts Accounts Receivable

The Oracle Service contracts (SCs) module and the Oracle Install Base (IB) module are very tightly integrated IB instances represent the products that are owned by customers The IB is populated from Order Management (OM) when new software license orders are fulfilled Service contracts must cover IB instances to represent precise customer entitlement SCs are also populated from OM when new orders are fulfilled Integration Between IB and SC

The Oracle Service contracts (SCs) module and the Oracle Install Base (IB) module are very tightly integrated

IB instances represent the products that are owned by customers

The IB is populated from Order Management (OM) when new software license orders are fulfilled

Service contracts must cover IB instances to represent precise customer entitlement

SCs are also populated from OM when new orders are fulfilled

Tracks products owned by customers ‘ Cradle to grave’ tracking of products Tracking starts from the time the product is rcvd in inventory Auto updates IB at shipment and other inventory transactions Tracks Updates/Replacements “sold” from OM Configuration management (bundles) Managed primarily from Order Management – most users generally only have read-only access to IB Integration Service Contracts Order Management Overview of Oracle Installed Base (IB)

Tracks products owned by customers

‘ Cradle to grave’ tracking of products

Tracking starts from the time the product is rcvd in inventory

Auto updates IB at shipment and other inventory transactions

Tracks Updates/Replacements “sold” from OM

Configuration management (bundles)

Managed primarily from Order Management – most users generally only have read-only access to IB

Integration

Service Contracts

Order Management

Tracks warranties, extended warranties and service agreements Most software companies only track Service Agreements Coverage determines entitlements (what is the customer entitled to – support and/or free upgrades) For some process flows, 95% of SCs will be created from Order Management (OM) Actions: Renew and terminate service contracts Authoring SCs as required (for some clients, not often used) Integration Installed Base, TeleService Order Management, Accounts Receivable Overview of Oracle Service Contracts (SC)

Tracks warranties, extended warranties and service agreements

Most software companies only track Service Agreements

Coverage determines entitlements (what is the customer entitled to – support and/or free upgrades)

For some process flows, 95% of SCs will be created from Order Management (OM)

Actions: Renew and terminate service contracts

Authoring SCs as required (for some clients, not often used)

Integration

Installed Base, TeleService

Order Management, Accounts Receivable

Different options available: Right to Use (RTU) Maintenance / Right to Support (RTS) Updates Only (no Support, only updates) Often Separate items for separate coverage levels (Silver, Gold, etc.) Types of Services (Service Inventory Items)

Different options available:

Right to Use (RTU)

Maintenance / Right to Support (RTS)

Updates Only (no Support, only updates)

Often Separate items for separate coverage levels (Silver, Gold, etc.)

Contract Management - once a SC is created, various management activities can be performed on the SC Update : Oracle version control tracks changes made to contracts. Cancel : Contracts may be cancelled for various reasons. (canceling only applies to contracts not yet signed – customer declines renewal) Terminate : Contract is ended prior to expiration date. (option to credit customer) (terminating only applies to contracts that have been signed and usually invoicing for renewal has gone to AR) Renew : Contract can be renewed at any time for a future period. Delete : Contract is removed. Only contracts not signed can be deleted. This not a maintenance activity per say, but a status change occurs automatically after the end date of a contract passes: Expire: Contract ends. Expired contracts are stored and can be retrieved for future reference Contracts Maintenance

Contract Management - once a SC is created, various management activities can be performed on the SC

Update : Oracle version control tracks changes made to contracts.

Cancel : Contracts may be cancelled for various reasons. (canceling only applies to contracts not yet signed – customer declines renewal)

Terminate : Contract is ended prior to expiration date. (option to credit customer) (terminating only applies to contracts that have been signed and usually invoicing for renewal has gone to AR)

Renew : Contract can be renewed at any time for a future period.

Delete : Contract is removed. Only contracts not signed can be deleted.

This not a maintenance activity per say, but a status change occurs automatically after the end date of a contract passes:

Expire: Contract ends. Expired contracts are stored and can be retrieved for future reference

The status of a contract is a label identifying where the contract stands in its life cycle. Examples of status types include: Entered : The contract is currently being edited and has never been approved. Signed : The contract is approved, but not yet effective. This status is used when we have not reached the SC start date, but has the same protection from changes as an approved contract. Active : The contract is approved, signed, and effective. Protections in place to prevent changes. Hold : The contract was set on hold from signed, active, or another hold type. For example, use the Hold status when a customer is moving or the contract is in dispute. Expired : The contract was active, but is not effective anymore. Terminated : The contract was active, but was terminated by either party before the contract expired. Canceled : the contract never was active and is not planned to become active Custom statuses can be added Contract Statuses

The status of a contract is a label identifying where the contract stands in its life cycle. Examples of status types include:

Entered : The contract is currently being edited and has never been approved.

Signed : The contract is approved, but not yet effective. This status is used when we have not reached the SC start date, but has the same protection from changes as an approved contract.

Active : The contract is approved, signed, and effective. Protections in place to prevent changes.

Hold : The contract was set on hold from signed, active, or another hold type. For example, use the Hold status when a customer is moving or the contract is in dispute.

Expired : The contract was active, but is not effective anymore.

Terminated : The contract was active, but was terminated by either party before the contract expired.

Canceled : the contract never was active and is not planned to become active

Custom statuses can be added

When an IB instance is “replaced” by another IB instance (e.g., product upgrade to a new inventory item): Any active SC coverages on the old IB instance will “transfer” to the new IB instance The active SC coverages on the old IB instance will be terminated When an IB instance is manually terminated: Any active SC coverages on the IB instance will be terminated. (Note: these impacts vary depending on system configuration) IB Transactions Which Impact SC

When an IB instance is “replaced” by another IB instance (e.g., product upgrade to a new inventory item):

Any active SC coverages on the old IB instance will “transfer” to the new IB instance

The active SC coverages on the old IB instance will be terminated

When an IB instance is manually terminated:

Any active SC coverages on the IB instance will be terminated.

(Note: these impacts vary depending on system configuration)

Users have the option of Selling Maintenance in Oracle via two different modules: OM - generally used to sell Maintenance on new product sales Also possible to sell maintenance on existing products via OM SC - generally used to renew contracts Also possible to sell maintenance on existing products via SCs In SCs it is also possible to author new SCs from scratch Methods of Selling (Billing) Maintenance

Users have the option of Selling Maintenance in Oracle via two different modules:

OM - generally used to sell Maintenance on new product sales

Also possible to sell maintenance on existing products via OM

SC - generally used to renew contracts

Also possible to sell maintenance on existing products via SCs

In SCs it is also possible to author new SCs from scratch