The Power of Subscription Fulfillment Via Oracle Service Contracts - PPT

The power of subscription
based fulfillment via Oracle

Service Contracts
Session ID: 10657
The end-to-end solution for your

subscription business that can save
you time and money.
Prepared by:
Lee Huff
Grant Thornton LLP
Presenter introduction
Lee Huff – Grant Thornton

Technology Solutions – Associate
[email protected]
913-272-2752
• Associate in Grant Thornton's Technology Solutions

advisory practice
• Specific focus on Oracle EBS
• Experience in O2C, P2P, and Projects modules
• Certified in Receivables R12
About Grant Thornton
One of the world's leading Grant Thornton
International Ltd1
Grant Thornton
LLP2 (U.S.)
organizations of independent US $4.7 billion revenues $1.4 billion revenues
audit, tax and advisory firms 40,197 personnel3 6,456 personnel3
2,975 partners 529 partners
725 offices 57 offices
Statistics as of Sept. 30, 2014 Statistics as of

Dec. 31, 2014
38,000 65% of
people in over Forbes Global
100 companies
100 countries served by Grant Thornton
International member firms
6th largest 58%

global of 2013
accounting and Fortune 100
consulting firm
3
What is Business Harmony?
4
Session introduction
• Focus on XaaS and subscription business1
– Provides value for both customer and company
• customer – convenience, flat rate, hassle-free
• company – predictable recurring revenue, easily calculated lifetime
value of customer
– Proven Success in several industries
• Technology, Entertainment, Home Goods, Transportation, Healthcare
• Examples of Successful Subscription Businesses
– Dollar Shave Club
• Home Goods – subscription only business (product)
• Provides consumable product as a service (hair razors)
• $60 million in revenue (2014)
– Netflix
• Entertainment – subscription only business (content)
• Provides streaming content as a service
• Considered largely responsible for replacing Blockbuster
– Truven Health Analytics
• Healthcare Technology – partial subscription business (software)
• Provides software and content as a service via various media
• Spun off from Thomson Reuters in 2012 for $1.25B, purchased by IBM in
February 2016 for $2.6B
1. Longanecker, Chuck. "Why You Should Use a Subscription Business Model." Entrepreneur.
Entrepreneur, 19 Mar. 2015. Web. 28 Feb. 2016.
5
Session introduction (cont.)
• Focus on Oracle Service Contracts module of EBS

– Connection points with Receivables, Inventory, Installed Base,
and Order Management also explored
– Session will not cover TeleService, Field service, Depot Repair
or other service/CRM modules
• Emphasis on subscription related functionality and features
– Subscription agreements, subscription contract lines,
subscription templates/fulfillment schedules, item instances,
and sales orders.
• Session will not cover functionality or features related to
service, warranty or usage.
• NOTE: While this session is "release agnostic", the
functionality described is specific to R12
– Specific differences between R12.1 and R12.2 are discussed
later
– R12.2 does introduce significant technical enhancements
6
Agenda
• Introductions
• How service contracts enables subscription businesses in EBS
– Service contracts overview
– Service contracts subscription fulfillment flow
• Key components of service contracts subscription fulfillment
– Subscription items
– Customer accounts, sites, and contacts
– Subscription agreements
– Subscription agreement contract lines
– Subscription templates/fulfillment schedules
– Billing schedules
– Item instances
– Sales orders
• Conclusion
• Q&A
7
How service contracts enables
subscription businesses in EBS
Service contracts overview
• Depicts typical service or warranty related integrations

• TeleService serves as the hub of most interactions.
• However not all modules are required for all situations
9
Subscription fulfillment flow
• Integrations specific to subscription agreements

• Note that some integrations vary from previous slide.
• Most important components/integrations discussed later
10
Key components of service contracts
subscription fulfillment flow
Subscription items
• Focus on service
attribute group
• Contract item type
= subscription
• Template is
subscription
template used for
fulfillment
schedules
(SC setup)
• Track in installed
base is required
Customer accounts, sites and contacts
• Uses standard TCA

customer setup
• Bill To and Ship To
sites required
• Contacts available but
not required
• Account Relationships
also in play but not
required
Subscription agreements
• Contract category = subscription agreement

– Only contract category to allow subscription lines
• Party roles available are merchant OU, subscriber, and third party
– Subscriber and third party have to be customers
• Includes standard SC information
– Customer info, contract dates, price lists, renewal info
Subscription agreements contract lines
• Designated by subscription line type

• Attributes cascade from header but can be changed on lines
– Dates can be changes to shorter than header dates
• Pricing and tax automatically calculated
• Subscription Template pulled from item setup
Intangible subscription templates
• Subscription type and media type extensible

– Represent type of product and associated medium
– Only used for reporting
• Fulfillment channel set to none
– No seeded fulfillment solution for intangible products
• Frequency
– Used only for reporting
Tangible subscription templates /
fulfillment schedules
• Fulfillment channel = order management

– Activates schedule pattern and interface schedule
• Frequency used to default schedule.
• Schedule pattern can be adjusted to change schedule
– Sales orders are created in OM for every line on schedule
Billing schedules
• Independent from fulfillment schedules

– Allows for scheduling of billing separately
• Similar to fulfillment, billing scheduling can be adjusted for
multiple combinations of periods
– Invoices are created in receivables for every line on the
schedule
Item instances
• Automatically created in installed base for all subscription

contract lines
• Uniquely identifies every instance of an item and customer
combination
• Provides consolidated view of a subscription
– Includes customer info, item info, status info, and subscription dates
• Ideal source of information for intangible item fulfillment
Sales orders
• Created in Order Management via Subscription Fulfillment

Program
• Always created as $0 orders
– Remember that all billing is done from SC
• Orders have Ship Only workflow and are Booked automatically
• Subscription Sales Orders are ready for shipment via Shipping
Execution or other 3rd party solution
Conclusion
Subscription fulfillment flow
22
Differences in Releases
• Drawbacks in R12.1
– No public Import APIs
– Service Contracts Import does not allow tangible lines
– Service Contracts Import only allows 3 billing streams
– Service Contracts Import does not allow DFFs
• Enhancements in R12.2
– All Service Contracts Import fixes are added in R12.2
except the ability to import tangible lines
– Subscriptions can be ordered via Order Management
and interfaced from OM to SC
– Public Import APIs available
23
Conclusion
• Service Contracts powerful enablement of subscription
businesses
• End-to-end solution for order to cash processes related to
subscriptions
– Strengthened by other module features: Order
Management, Receivables, Installed Base
– While there is no seeded fulfillment for intangible items,
installed base has robust API capability that allows you to
easily integrate to any platform
– Also great flexibility for billing
• Leverages existing EBS environment
– If you're already using financials and/or CRM you have a
leg up
– Ultimately saving you time and money!
24
Questions?
25
Upcoming events
Find Grant Thornton at these upcoming events:
Date Event Location

Achieving Harmony in Health Care Financial
4/19/2016 Reporting Webcast
5/3/2016 Planning for Profitability Webcast
5/19/2016 The CFO Strategy Summit Palo Alto, CA
6/1/2016 The CFO Strategy Summit Orange County, CA
6/2/2016 The CFO Strategy Summit San Diego, CA
6/6/2016 OHUG Global Conference New Orleans, LA
6/7/2016 The CFO Strategy Summit Los Angeles, CA
6/8/2016 The CFO Strategy Summit Seattle, WA
6/26/2016 ODTUG Kscope16 Chicago, IL
7/19/2016 PeopleSoft RECONNECT Rosemont, IL
8/8/2016 JD Edwards INFOCUS Denver, CO
9/18/2016 Oracle OpenWorld San Francisco, CA
26
Evaluation reminder
• Remember to submit your presentation evaluations

via the COLLABORATE 16 agenda builder and
networking app
– Session ID: 10657
– Presenter: Lee Huff
27
Thank You!
Lee Huff
Technology Solutions – Associate
Grant Thornton LLP
[email protected]
28

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The power of subscription

based fulfillment via Oracle

Session ID: 10657

The end-to-end solution for your

Lee Huff – Grant Thornton

• Associate in Grant Thornton's Technology Solutions

organizations of independent US $4.7 billion revenues $1.4 billion revenues

audit, tax and advisory firms 40,197 personnel3 6,456 personnel3

2,975 partners 529 partners

725 offices 57 offices

Statistics as of Sept. 30, 2014 Statistics as of

6th largest 58%

• Focus on Oracle Service Contracts module of EBS

• Depicts typical service or warranty related integrations

• Integrations specific to subscription agreements

• Uses standard TCA

• Contract category = subscription agreement

• Designated by subscription line type

• Subscription type and media type extensible

• Fulfillment channel = order management

• Independent from fulfillment schedules

• Automatically created in installed base for all subscription

• Created in Order Management via Subscription Fulfillment

Find Grant Thornton at these upcoming events:

Date Event Location

• Remember to submit your presentation evaluations

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