Oracle in Hi-Def iStore in Hi-Def Unique implementation enables the Intellectual Property
Agenda • Background • Problem Definition • Solution • Architecture • Benefits Summary • Q&A
Silicon Image Profile www.siliconimage.com Bringing pure digital content home SIMG (NASDAQ) • 600+ Employees • Revenue $295M (2006) • 38.9% growth (from 2005) • Oracle applications 126.96.36.199 Silicon Image is a leader in the design and implementation of high-speed digital interface technologies for CE and PC markets. • As a technology innovator, Silicon Image creates and drives industry standards for digital content delivery, including HDMI, DVI, UDI, and SATA.
Trianz Profile When Execution Matters Execution is the art & science of getting things done, turning strategy into tangible results • Established firm with over 600 associates worldwide • Known for superior execution and long-term client partnerships • Global reach with offices in Santa Clara, San Diego, Tokyo and Bangalore • Serving Fortune 500 and fast-growing mid-sized companies on a global basis • Experienced professionals with business consulting, industry and technology backgrounds High Technology Communications & Media Financial Services Retail & CPG
Oracle Titan Award 2007 19,500+ Oracle Partners 19 North American Oracle Titan Awards 65 judges Trianz is the 2007 North America Oracle Titan Award winner for High Tech Industry Solution
What is HDMI? • Developed by Sony, Hitachi, Thomson (RCA), Philips, Matsushita (Panasonic), Toshiba and Silicon Image, the High-Definition Multimedia Interface (HDMI) has emerged as the connection standard for HDTV and the consumer electronics market. • HDMI is the first and only digital interface to combine uncompressed high-definition video, multi-channel audio and intelligent format and command data in a single digital interface. • HDMI is the de facto standard digital interface for HD and the consumer electronics market: More than 700 companies have become adopters, and more than 100 million devices featuring HDMI are expected to ship in 2007 (conservative estimate by In-Stat).
Challenges for IP Management of HDMI • Adopter registration: offline process; fill form / fax ( no self service) • Adopters send (Model#, Qty) information to SI • Royalty submission was manually repeated every qtr. • Inconsistent information • Contacts in adopters change, manual overhead to ensure receipt of information every quarter • Manual Quarterly process driven from XL data received via emails • Royalty / yearly calculations performed manually • Non Scalable infrastructure • Manual order and invoice creation • All communication via phone/emails • The entire process is labor intensive and error prone • Unable to identify revenue leakage in terms of failure to receive royalties from Customers • Manual invoicing to Adopters • Issue resolution challenges • No self service capability 1 Hundreds of Adopters 1 Adopter 2 Adopter 2 Invoice Adopter 3 Adopter … Calculating, tracking, invoicing and receiving annual fee and royalty payments The Mission “Automate, scale and focus on compliance” 3
Solution: Self service Adopter registration Adopters upload/enter shipped models/qty online via royalties manager Adopters maintain the Company information, contacts, secondary users online. Adopter on boarding Order automatically created in the system and invoice sent to customer Royalty information available to the admin in the system Royalty / yearly calculations automated SI Royalty admin has the capability to accept/reject data Install base tracking & Contract Management capability Various automated notifications sent to the adopter during the process Automated royalty invoicing to Adopters Non-compliance and Issue resolution Available 1 Hundreds of Adopters Oracle EBS Royalties Manager 2 2 Sony 1 Royalties Admin Mitsubishi Smart Home Global Tech 3 Registering to be an Adopter, entering / uploading royalty data Invoicing and receiving annual fee and administering, accepting, rejecting royalty payments 3
Solution Design: Oracle EBS • After toying with the idea of a custom application, Silicon Image teamed up with Oracle to generate ideas on how its applications could be leveraged to address this business issue. • After coming up with the initial idea for iStore and Service Contracts as a solution, Trianz – a preferred Oracle Integration Partner – was brought in to expound on and round out the solution. • Added to the solution set were TeleService for compliance and Install Base for royalties.
Web UI - Hybrid Back End Oracle Applications Inventory Oracle iStore Order Management Teleservice Royalties Management System ( iStore Extension) Daily Business Intelligence Service Contracts Accounts Receivable High level architecture: Oracle EBS Fully leveraging the existing infrastructure – an Oracle footprint – prioritizing ease of integration and maintenance, and scalability to adapt to upgrades of existing Oracle versions • iStore Self service Adopter registration via iStore • Adopter on boarding Order automatically created in the system and invoice sent to customer • Install base tracking & Contract Management capability • Various automated notifications sent to the adopter during the process • Automated royalty invoicing to Adopters • Non-compliance and Issue resolution Available via Teleservice • Ad-hoc reporting available since all the data is available in the system
Web UI - Hybrid Oracle iStore Royalties Management System ( iStore Extension) Oracle iStore Oracle iStore is the e-commerce application that provides a personalized, low-cost Internet sales channel. iStore is a key component of the Oracle Customer Relationship Management solution, the integrated suite that drives profitable customer interactions. • iStore can deliver a branded and personalized customer experience for different customer segments with varying requirements and preferences • Oracle iStore supports a global product catalog and infrastructure, allowing for the launch and maintenance of an international online presence • Oracle iStore allows for a single administration application for multiple storefronts and has been designed for efficient maintenance by a business or marketing user • Adding branded content and style to an enterprise specific e-commerce tool can be accomplished utilizing iStore OOB functionality • Branding and user experience need to be closely tied to the requirements gathering phase of an implementation
Web UI - Hybrid Oracle iStore Royalties Management System ( iStore Extension) iStore Capabilities Utilized Oracle iStore automated Adopter on boarding and provided customers with a self service tool and account management functionality • A branded personalized solution for customers to self-register • Online request for Adopter membership and membership Renewal • Adopters maintain the Company information, contacts, secondary users online • Adopters can download specifications documents and other reference material only available to registered adopters • A scalable solution which was later extended for Chinese customers • Online membership status tracking
Web UI - Hybrid Oracle iStore Royalties Management System ( iStore Extension) Royalty Management Automated royalty processing , centralized storage of royalty data and automated generation of consolidated invoice for royalty payments were built leveraging Oracle e-Business suite (iStore, Service Contracts , Inventory , Install Base, Pricing and Receivables) • Royalties are payable quarterly on HDMI Licensed Products. Royalty payment are calculated on units shipped per quarter as reported by customers. • Adopters would log into Web Store and access the HDMI extranet to enter royalty shipment data using various options available and submit the royalties for review. • HDMI Admin reviews the royalties entered and accepts or rejects the data • Once the data is accepted a service contract gets automatically created and specific product models gets created as ‘usage’ lines on the contract and the shipment information gets captured by the usage counters. • Billing is scheduled to run on a quarterly basis and a consolidated invoice for royalty payment is sent to customer every quarter per standard receivables collection process.
Web UI - Hybrid Oracle iStore Royalties Management System ( iStore Extension) Royalty Management - Multiple Options to enter Royalty Data Automated royalty processing , centralized storage of royalty data and automated generation of consolidated invoice for royalty payments were built leveraging Oracle e-Business suite (iStore, Service Contracts , Inventory , Install Base, Pricing and Receivables) • Option1 : Quick Online Model Entry • Using this option Adopters can add “new” models one at a time • Option2 : Quick Online Shipment Entry • Using this option Adopters quickly update the shipment quantities for models and save/submit shipment for approval by Admin . • Adopters can also review the amount due for each model that they enter • Option3 : Offline Mass addition of new Models and Quantities
Web UI - Hybrid Oracle iStore Royalties Management System ( iStore Extension) Option3 : Offline Mass addition of new Models and Quantities Using this option Adopters can add large number of “new” product models as well as update large number of shipment data. Adopter would download a file , enter new product models with their specific quantities or just update shipment data offline and upload the file back for review before submission Download Upload
Back End Oracle Applications Inventory Order Management Teleservice Daily Business Intelligence Service Contracts Accounts Receivable Oracle Workflow The solution design maximizes the benefits of automation using standard Oracle functionality implemented in a multi-lang environment • Automatic creation of an annual membership and royalty contract • Automatic renewal of the contract for a period of fifteen years • Email notifications to the adopter at various stages of adopter on boarding and royalty management • Registration notification • Membership Confirmation notification • Agreement reminder notification • Late payment notification • Renewal reminder notification
Back End Oracle Applications Inventory Order Management Teleservice Daily Business Intelligence Service Contracts Accounts Receivable Product level breakdown
Successful Implementation • In January 2007, all capabilities were enabled allowing full automation of the targeted business flows. HDMI adopters are able to self-register, submit adopter and royalty information, track status of adopter membership and royalty invoices. • The Oracle-based solution for HDMI fees and royalties management sheds new light on how to deliver great ideas and process improvements to the users and customers in a profitable manner. • The envelope for managing the fees and royalties associated with intellectual property and standards has just been expanded. • Reduced Revenue Leakage • The creative use of iStore and Service Contracts as part of the HDMI solution leverages its inherent strengths in a new market.
Number of adopters increased exponentially in adoption since HDMI went live with iStore Reduced Revenue Leakage Increased customer satisfaction due to: ability to self register, request and track membership and billing status being informed of required actions and important notifications Reduced time to revenue for accelerated royalties, and adopter billing processes Reduced Manual data entry Reduced errors due to business rules embedded into the new solution Supported executives in making key strategic decisions due to better business insights from centralized data and new reporting capabilities Silicon Image : Benefits Realized
Execution Matters “The flexibility of the Oracle E-Business Suite gives Silicon Image a world class solution that eliminates manual processes and replaces them with a web storefront to manage customer relationships surrounding Intellectual Property (IP). Entire relationships can now be managed more effectively from the initial sale of IP to annual renewals and royalty collections. Additionally, the application solution will provide business intelligence on tracking performance throughout all stages of the relationship.We feel these solutions gained a advantage in ensuring world adoption of the HDMI standard and lowered operational expenses while increasing overall adoption service for our customers.” • Kenny Gilbert • Director - Technology Services • Silicon Image Inc Judges honored Trianz with the prestigious Titan award for the design and implementation of a unique intellectual property royalty collection system that leverages the Oracle E-Business Suite. The solution involved modifying Oracle Standard Flows and implementing 9 Oracle products to automate tracking, invoicing, and the collecting of fees and royalty payments. Co-developed with Trianz client Silicon Image, the solution is an innovative way to address the unique nuances of high-tech royalty management issues. The unique and innovative solution will allow customers to manage their own agreements and report on shipped items for more than 120 million products, rather than relying on a third party.
Q & A Thank You!
For more information please contact us Krista Ladd Phone: (408) 616-4094 Email: Krista.Ladd@siliconimage.com www.siliconimage.com Manisha Desai Phone: (650) 740-8188 Email: Manisha.Desai@trianz.com www.trianz.com
How Do You Manage All of This? Combine this with the Challenge • Short Answer • …A great deal of manual effort by the licensing company (HDMI LLC) with assistance from its parent (Silicon Image), the other HDMI Founders, and the HDMI adopters. • HDMI is one of the most successful consumer electronics standards in existence. And with the rapid current and anticipated growth of the standard, it was clear that a more robust, scalable solution was needed. • The Whole Story • The process was manual and data storage was spread across multiple desktops in across Microsoft Excel spreadsheets and Access databases. Fortunately, the process was managed by a few highly skilled and knowledgeable individuals who were able to keep it on track. But this was obviously not scalable. • Being a communication intensive process without automation, information exchange was handled mainly through phone calls and emails. Verification and authentication required searching through various data sources and additional phone calls. As with other manual processes, audit of the process and data was difficult. • Looking forward, HDMI LLC wanted to strengthen its processes for royalty tracking and receipt. As adoption of HDMI increases dramatically in the future, the enabling infrastructure needed to scale and allow for identification of any revenue leakage in terms of failure to receive royalties from Customers. • Customer Support was also made difficult by the lack of centralized data. • The Mission – Automate, scale and focus on compliance • Key business outcomes anticipated: • Process scalability. Enable effective fee and royalty management as the install base of HDMI products sky-rockets – HDMI products numbered just short of 20 million in 2006 and are expected to grow to over 100 million in 2007. • Auto creation of Customer, Contacts, Order, Invoice (all manual previously) • Annual Fee tracking and auto-creation of Annual Fee Invoice (instead of creating a new order) • Dramatically improved reporting • Service for compliance
The Solution • Unique HDMI Business Approach Drives Simplicity in Operations The business approach chosen by HDMI LLC differs significantly from traditional approaches to licensing and royalty management often referred to as Intellectual Property Management. Because HDMI LLC uses a normalized adoption and royalty approach to its adopters, it is able to more effectively streamline the process using off the shelf software with minimal customizations versus going the route of a specialized Royalty or IPM solution. In addition, the concept of “self-service” adoption (similar to licensing; see note below*) and royalty management is unique in and of itself. Even the most sophisticated purpose-built solutions in this space do not offer the Licensee (or Adopter) the ability to manage their agreements and report on shipped items for royalty payments. This unique business model and enabling solution approach has applicability to other consortium or standards bodies seeking to enable rapid adoption of a standard or specifications and improve the tracking and timeliness of payments. • Business Flows to be Enabled • The following HDMI processes were identified as part of the solution: • HDMI User Registration • HDMI Adopter Membership • HDMI Royalties Quarterly Billing • HDMI Adopter Annual Billing • Non Compliance Issue Resolution • Revenue Recognition Reporting • Key Performance Indicators for HDMI • At the outset of Solution Design, each HDMI process flow to be enabled was related to one standard Oracle flow. The standard flows represent common practices for enabling business processes on ERP and CRM application platforms. The objective was to identify the most relevant standard flows to use as starting points for HDMI process enablement. This approach limits customization (always good), results in better application performance and efficiency when deployed.