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Oracle Warranty Management Solution Achyut Jajoo, Steven Kresco Senior Director, Industry Solutions Principal Solutions Consultant, CRM March 18, 2011
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Industry Context & Challenges
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BusinessDirectory.Com
Defines a Warranty Claim as a
Customer’s Claim for repair or replacement of, or compensation for non-performance or
under-performance of an item as provided for in it’s Warranty Document
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Transformation Is More Than Sales & Service Management
Key Business Processes
ENTERPRISE MANAGEMENT
OPERATIONS SUPPORT
OPERATIONS
Enterprise Planning & Performance Management
Corporate Services & Governance
Concept to Market
Campaign to Cash
Demand to Delivery
After Sales Services & Support
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Transformation Spans Numerous Business Processes
Key Business Processes ENTERPRISE MANAGEMENT
OPERATIONS SUPPORT
OPERATIONS
Enterprise Planning and Performance Management Link Strategy with Key
Stakeholders Align Investments with Market Opportunities
Design/Optimize Business Infrastructure
Align Process Organization Across Business Functions
Analyze/Report Deviations To Initiate Corrective Actions
Operational, Strategic, and Financial Reporting
Concept to Market
Campaign to Cash
Demand to Delivery
After Sales Services & Support
Go to Market Strategy&Mgmt
Marketing Execution
Channel/Retail & Direct Sales
Guided Selling, Pricing, Propo-
sals&Agreemnts
Customer Data Mgmt
Order Capture
Order Management
Fulfillment Confirmation & Expediting
Billing & Re-ceivables Mgmt
Channel Mgmt & Claims Settle
Sales Comp. Payout
Performance Analysis
Installation Management Remote Field Service Asset Management
Customer Identifica-tion & Validation
Problem Analysis & Resolution
Spare Parts Management
Warranty Management After Market Sales Support Analysis
Business Management, Governance & Control Human Resources Management Financial Control &
Reporting Cash & Treasury
Management Asset Lifecycle Management IT Management
Enterprise Information Management
Workforce Deployment
Workforce Development Recruiting
Compensation Management
Sales & Operations Planning
Demand Sensing & Shaping Strategic Sourcing
Production & Operational Planning Manufacturing
Fulfillment / Warehouse Management Logistics Retail Execution
Ideation / Concept Business Analysis &
Management Design &
Development Prototype /
Pilot NPI Release / Ramp Sustaining Engineering &
Management End of Life
Phase Mgmt
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Business Opportunity
• $60B of returns in NA annually • An additional $40B cost in managing returns • High Tech Mfg Industry Sector has the highest 12.1% of Products
returned • Green Reverse Logistics • One customer took approx. $1.15B expense accrual to extend the
warranty on game consoles to address quality issues
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Quarterly Warranty Claims Paid (in $ millions)
U.S.-based computer OEMs, disk drive and data storage systems makers, telecom equipment manufacturers, semiconductor and printed circuit board makers.
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Grow Services and Warranty Profitability
Top Capabilities
• Guided selling and processes for services and extended warranties
• Integrated customer centric services management
• Warranty administration, claims processing, and analytics
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Industry Challenges
• Manual processing with high processing costs and lengthy waiting times
• Fraudulent and/or duplicate claims • Low recovery costs from suppliers • Transparency in defects for product
quality “The Hi-tech, Discrete Manufacturing, and Automotive Industries takes an average of 30 days to receive and administer a warranty claim. In addition, taking the total claims and feeding the information back to manufacturing and design can take anywhere from 60 days to 2 years”
– Joint Wipro/AMR Research
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Focus on Improvement Areas
”… if manufacturers take 10 days out of the resolution cycle they can reduce warranty claims by 5%” - Joint Wipro/AMR Study
• Streamline claims processing through automation
• Enhanced collaboration of warranty management processes
• Improve visibility to data for superior product quality
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Warranty Value Chain
Product Designs
Manufacturing
Sales & Marketing
Financials
Product Quality
Service Chain
Comprehensive chain of events & collaboration for an effective warranty management
Multitude of Manufacturer’s Business Units
Dealers Distributors Suppliers
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Warranty Management – Moving to a Customer-Centric Process
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Warranty Product Details
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High Level Scenario
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Warranty Management Features
Warranty Administration Claims Management Warranty Settlements Supplier Recovery Warranty Performance
• Warranty Products, Coverage Lists Administration
• Repair, Fault, Trouble Codes and Repair Time setup
• Warranty Policy Registration
• Security / Roles / Hierarchy Administration
• Claims Entry via Partner Portal or through web service integration
• Entitlement Verification
• Claims Pre-authorization
• Rules based Claims Verification
• Claims Approval/Rejection
• Financial integration
for payments to
Partners
• Financial integration
for settlements with
Suppliers
• Supplier Parts Warranty Verification
• Supplier Claims
Creation
• Return Parts/RMA
• Track Supplier Claims
against actual Recovery
• Warranty Claims Trends
• Service Network Efficiency
• Quality Issues Identification
• Partner/Supplier Performance
Rules Management
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Warranty Management Solution Flow
Service
Procurement
3rd party Systems/EDI
Warranty Administration
Warranty Claim Management
Supplier Recovery
Supply Chain Mgmt Financials
Partner Relationship Management
Warranty Management
Warranty Analytics
Siebel CRM
Warranty Settlement
Warranty Rules Management
Self-Service
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Warranty Types
Standard / Factory Warranty
Extended Warranty
Recall
Parts/Components Warranty
Goodwill
Pre delivery Inspection (PDI)
Transportation
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Warranty Claim types
Different line items in a claim can be of a
different type
Different rules apply depending on claim type
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Warranty Claim Details
Multiple repairs can be covered in a single
claim
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Warranty Claim Details - Parts
List of parts which were replaced during repairs
Rules determine if a part return in
required
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Warranty Claim Repair Details
Amount comes from the Preauthorization
Can be modified by the OEM approver
For recall claims
For claims related to Parts warranty
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Warranty Claim Tracking Part Returns
Status of each part can be tracked
RMA tab
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• Write, deploy, & maintain rules and logic in business user’s language and tools
• Provide business process agility
• Intuitive self service
• Provide transparency and decision reporting
• Pre-integrated to warranty module
• Maximize value from existing IT investments
Power of Oracle Policy Automation Engine Key Capabilities
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Authoring Rules in Microsoft Office Modeling rules in language business users identify
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Rules Authoring and Deployment Simplify, Deploy, Maintain, Re-Use
Revising a policy in another BRMS
Step 1: Analyst captures new requirement external to BRMS
Step 2: Determine new methods required to capture policy within BRMS
Step 3: Implement a new method in a Java class for drivers plus a supporting routine
int getNumberOfTrafficTicketsWithinTheLastNmonths(int nMonths) {
int nTickets = 0;
if (nMonths > 0) {
for (Iterator i = getTickets().Iterator(); i.hasNext();) {
Ticket ticket = i.Next();
if (ticket.getType() == trafficTicket) {
Date issueDate = ticket.getIssueDate();
if (aDateOccursWithinTheLastNmonths(issueDate,nMonths))
nTickets++;
}
}
return nTickets;
} static boolean aDateOcccursWithinTheLastNmonths(Date date, int nMonths){
Calendar today = new Calendar;
today.set(Calendar.MILLISECOND,0);
today.set(Calendar.SECOND,0);
today.set(Calendar.MINUTE,0);
today.set(Calendar.HOUR,0);
Calendar start = today;
start.add(Calendar.MONTH,-nMonths);
return start.getTimeInMillis() <= date.getTime()
&& date.getTime() <= today.getTimeInMillis(); }
Step 4: Compile, test, and deploy revised Java object model
Step 5: Translate policy to if-then logic and capture multiple rules within BRMS
Step 6: Compile, test and deploy revised application and deploy into production
Revising a policy in OPA
Authoring and maintaining rules and policies are more understandable
and easier to update with OPA
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Customer Opportunity Example
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Global Warranty IT – Customer Example
• Deliver a world class Warranty / Service Delivery capability with the following scope: • Commercial and consumer • Simple as well as extended
warranty • Operations from warranty
entitlement through billing
• Closed loop warranty & product quality reporting / analysis
• Ability to measure and monitor health and status of warranty systems
Analyze Clean & Timely Information
Test
Build
Ship
Entitle Service Delivery
Prevent/ Design
Service Billing
Global Warranty IT Scope
Sell Services
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Global Warranty IT Project Portfolios IT Transformation
Support Obligation Installed Base &
Entitlement
Warranty Financial
Management
Warranty Reporting
& Analytics
Other Opportunities
Warranty Architecture Simplification Program
Best In Class Warranty Eco System
Business Capabilities
IT Transformation
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Warranty Architecture Simplification
The Goal • Simple, robust IT architecture • Timely and accurate data • Scalable to support future company growth (2x) • Able to support additional business requirements fast
The Plan
• Minimize the number of applications required to support Global Warranty • Improve the quality (accuracy, precision, consistency, completeness) of warranty information • Align all transactional and reporting systems supporting global warranty on a common set of
enterprise reference data • Build a pan-organization installed base of all customer service obligations • Build a multi-channel repository of all support events from all customer segments that is tightly
integrated with warranty management and product quality reporting • Fully automate the systemic costs of in-warranty support events • Move all transactional financial processes supporting global warranty to a single enterprise system
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Partner Opportunities
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How can partners benefit?
• Warranty product is available in market – Available as a patch on 8.1.1
• Direct up-sell opportunity to Siebel Service install base • Large integration opportunities ($$$$$)
– 3-5 X license revenue
• High-tech Manufacturers are spending Billions in warranty – Streamlining this spend addresses strategic objectives and directly
impacts cash flows
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Who to Contact?
• Get immediately in touch with Hi-Tech CRM sales team • Steven Kresco – Principal Sales Consultant
– [email protected] (310) 760-3380
• Mike Overly – Senior Director, Hi-Tech Business Unit – [email protected]
• Mike Saslavsky – Senior Director, Hi-Tech Business Unit – [email protected]
• Achyut Jajoo – Senior Director, Industry Solutions – [email protected] (510) 396-0864
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