Technology Leadership in Leasing

Implementing a New World in Leasing

Equipment Leasing Association

2002 Annual Convention
October 14, 2002
10:30 am Noon
Scott Thacker
Senior Director
Oracle Leasing Solutions
Agenda
! Oracles Technology Leadership
Seven Tenets of Technology

! Oracle Lease Management

Helping Leasing Companies Be Better Leaders

Oracle Consulting
Implementing a New World in Leasing

! Q&A
Oracle Corporation At A Glance

! Largest enterprise software vendor

! Founded 1977; Public 1986
! 140+ countries; 60+ subsidiaries
! Over 41,000 employees
! 51% of total revenue non-US
7 Tenets of
Technology
The Oracle Story
 #1 Consolidate and Simplify IT
Oracle Information Technologies: After Consolidation

Finances Organization

Spend: >$500M " $276M

IT Staff: >2300 " 1600
View: Fragmented " Global
Model: Dotted Line " Directed
Decision
Making: Not Coordinated " Centralized

Systems &
Practices
Applications
Standards: some " high Systems: Mixed " EBS
Common practices: few " high Apps: >500 " <100
Knowledge sharing: some " high Custom Bespoke
Support: $$$ "$
De-centralized " Centralized
#2 Move to Shared Services
The Oracle Experience: Global IT Consolidation

# $30M in E-Business Suite annual savings

# $11M in E-mail annual savings
# $60M in Desktop Simplification annual savings
# $13M in annual Maintenance Reductions
# $200M in Operating Expense in 2 years
 #3 Adopt Self-Service
Cost Reduction Summary: The Oracle Story

Expenses & Procurement $115M

Self-Service Support Calls $250M

Sales/Marketing Leverage $300M

Sales Force Productivity + 10-20%

Global Savings $665M

#4 Automate All Processes & Business Flows
Customer Supply
Relationship Chain
Management Develop Management
Sell
Plan
Enterprise
Enterprise Management
Management
Market Finance HR Projects
Procure
Maintenance
Service
Manufacture
Fulfill
 #5 Leverage Low-Cost Computing
Performance and Scalability

Oracle Real Application Clusters For Linux

Lower cost of entry

Lower cost of ownership
Plug-and-play scalability
Reliable
#6 Ensure Visibility and Accountability
The Oracle Story

! Cultural shift 10 years ago need more than

new technology purchases
! Technology for information visibility
Close books in 4 days vs. 13 days
Support local regulations in 64 countries
from a single instance
! Mandatory business ethics training for every
employee
 #7 Build a Culture of Agility
Open & Modular Technology Facilitates Change

! Implement by Business Flow

Implement based on your business priorities
Time

Start with one flow, demonstrate initial success

Add more flows to expand business coverage

! Flows are seamlessly integrated

Replace disparate systems
Eliminate data synchronization
Decrease time and cost to implement
How You Can Get There
! Think global/enterprise wide
! Build a 3-5 year plan
! Obtain top management commitment
! Manage change
! Simplify business processes
! Standardize, dont customize
! Automate all business flows
Oracle Lease
Management
Why Leasing?.
! Customer & Market Driven
Existing customers wanted Oracle software to run their leasing
businesses
Software currently in the market
! does not provide a comprehensive solution
! is not based on up-to-date technology
! is not on the web
! Existing Functionality Natural Product Extension
Oracle Contracts and Oracle Fixed Assets applications are
already successfully in use worldwide
Other applications in the E-Business Suite provide a significant
percentage of functionality required for a leasing solution
Oracles Vision
! Full Lease Lifecycle
Integration of the E-Business Suite proven applications and new
leasing functionality provides the entire lease lifecycle functionality

! Asset-based Financing and Contract Management

Asset-level or consolidated billing
Tax and depreciation
Track installed base, anticipate returns
Asset operations, including terminations, splits

! Actively Manage Multiple Relationships

Lessee: master lease agreements; service agreements (combined
billing option)
Partners: operating agreements; vendor programs
Investors: syndication agreements
Oracles Vision, continued
! Configurable
Easily configure new financial products
Product & Accounting Engines

! Inter-departmental Business Flows

Business processes follow a logical flow
Enhanced productivity and lower costs

! Global
Single instance
Multi-currency, multi-GAAP

! Data Sharing with Customers and Partners

Cost savings
Browser access
 Key Facts
! Created in conjunction with a large global equipment leasing
company as a Design Partner
! Effort started in 1999
! I am pleased to announce the immediate availability of a
controlled production release of Oracle Lease
Management for early adopters
! Over 100 Oracle staff and a significant number of subject
matter experts from our Design Partner
! Development team with significant leasing business and
applications experience
! Work is already underway on significant additional
functionality for the next release
 Creating the Leasing Solution
! Functional requirements were driven by:
A global leasing company as Oracles Design Partner
Industry executives and acknowledged industry experts
Oracle Credit Corporation
Oracles product management teams
! Requirements were divided into four categories

The Oracle Leasing Solution

1 2 3 4
Existing Existing New Complex Lease
Functionality Functionality Functionality Pricing Software
Enhancements

New Module - SuperTRUMP

Existing Existing Oracle Lease by Ivory
Modules Modules Management Consulting

Oracle E-Business Suite

 Oracle E-Business Flows for Leasing

Opportunity Credit Accounting

Invoice Quote Asset Return Inquiry
to Application Period Open
to to to to
Lease to to
Receipt Termination Disposal Resolution
Quote Booking Close
1. Opportunity to Quote

Identify
Identify Qualify
Qualify Select
Select Structure
Structure Generate
Generate
Prospect
Prospect Prospect
Prospect Assets
Assets the
theDeal
Deal Quote
Quote

2. Credit Complete
Complete Make
Make Author
Author
to Booking Credit
Credit Credit
Credit Contract
Contract
Application
Application Decision
Decision

Journalize
Journalize
Activate
Activate Pay
PayVendor
Vendor Accounting
Accounting
Contract
Contract Entries
Entries
3. Invoice to Receipt Collect
Collect
Outstanding
Outstanding
Payments
Payments
Create
Create Generate
Generate
Billing
BillingItem
Item Invoice
Invoice
Journalize
Journalize
Receive
Receive Accounting
Accounting
Payments
Payments Entries
Entries
4. Quote to
Termination
Restructure
Restructure

Quote
QuoteTermination
Termination Journalize
Journalize
or Repurchase
or Repurchase Repurchase
Repurchase Accounting
Accounting
or
orRestructure
Restructure Entries
Entries
Terminate
Terminate
Contract 5. Asset Return
Contract to Disposal
5. Asset Return to Disposal

Record
Record Journalize
Journalize
Remarket
Remarket
Return
ReturnAsset
Asset Sell
SellAsset
Asset Remarketing
Remarketing Accounting
Accounting
Asset
Asset Costs
Costs Entries
Entries

6. Period Open to Period Close

Calculate
Calculate Calculate
Calculate Perform
Perform Journalize
Journalize
Generate
Generate Loss
Loss Write
WriteDown
Down Periodic
Periodic Accounting
Accounting
Accruals
Accruals Provision
Provision Values
Values Adjustments
Adjustments Entries
Entries
7. Inquiry to Resolution

Log
Log Resolve
Resolve Communicate
Communicate Log
Log
Customer
Customer Inquiry
Inquiry Result
Result Resolution
Resolution
Inquiry
Inquiry
 Value Propositions
! Better Management
Assets, portfolios & contract quotes and renewals
Information intelligencesingle source of data
! Customer Focus
360 degree view of the customer (TCA)
Ease of third party relationships
! Better Accuracy
Workflow approvals
Automated QA checks
Document contract versions & transaction history
! Higher Levels of Operational Control
Billing & invoices accurately reflect usage and entitlement
Security levels; Set-up authority
 Leasing Industry Focus
! Current industry conditions are addressed by Oracle Lease Management
(1)

Tight Funding
! More use of vendor programs, private labels, syndication
# Third Party Functionality is robust
Cost Reduction
! Niche players, point solutions, and packages force customization and integration and drive
higher costs
# Fully integrated, highly configurable application with single database
Greater Productivity
! Inter-connectivity among departments and systems is key
# Designed around key business flows
Earnings Growth
! Often achieved through portfolio or company acquisitions
# Mass contract import

(1) Per ELA Study

Risk Minimization
! Integrated Suite Not Point Solutions Stuck Together
! Common database
! Significant existing functionality in use
! Proven software architecture and technology stack
! All on the Internet
! Oracle Consulting knows Oracle Lease Management
! Oracle Consulting partners including CGE&Y, BearingPoint
and Northern Consulting have invested substantially in Oracle
Lease Management training and in expert testing programs
With OC and Partners, a full spectrum of business, leasing and
technical expertise is available
Oracle Consulting
Involvement with Lease Management
! Since the inception of Oracle Lease Management
Product Management
Design Partner Interface
Testing & Training
! Currently engaged to prepare an Oracle Lease Management Proof of
Concept for a leasing company
! Over 3,000 experienced professionals focused on the financial
services industry
! Integrated processes, standards and project management tools
Application Implementation Methodology
! Significant Partner involvement
 OCs AIM Phases
! Project planning and definition: review project plan, scope, objectives
Project Planning and approach; document current business process baseline; develop
& Definition
future process models.

Operations
Analysis ! Operations analysis: map business requirements to standard process
flows and application functionality.

Solution
Design
! Solutions design: deliver conversion plan, develop testing strategy,
develop transition and contingency plans, define applications set-ups.

Build ! Build: develop conversion environment, perform system testing, test

conversions and deliver transition plan.

Transition ! Transition: train users, convert and verify data, enter set-ups, verify
readiness, go live.

Production ! Production: production cut-over; begin system support cycle.

Live
 The Oracle Proposition
! Leadership in Transforming the Leasing Industry
Oracle Lease Management
! First full global lease lifecycle enterprise application
Oracle Technology
! All on the Web
Oracle Consulting
! Implementing Oracle around the world
Q
&
A