Emerging Markets Break-Out Session Kelly Forese, VP Ops and Applications AppsDay April 8, 2005
Overview of IGN Entertainment • We are a digital entertainment company that transforms the creation, promotion, distribution and consumption of entertainment content and services. • Rapidly growing company, Acquisitions ~ 1/quarter • 280 employees nationwide • HQ: Brisbane, CA with offices in NY, Chicago, LA and Irvine. • Revenue Model – 3 businesses in 1 • Advertising Clients and Agencies – Online Media • Consumers - Subscriptions and Digital Distribution • Game Publishers - Technology Licensing and Services • >20 million unique visitors a month
IGN Entertainment Network Games. Gear. Movies. Music. Download PC Games Direct to Your Hard Drive Multiplayer Gaming’s Home Page The Latest Gaming News 24/7 Free Games, Downloads, Mods, Patches, Maps, Trailers, Demos and Betas Community and News for the RPG and MMO Gamer The Insider’s Choice for Xbox Information The Universe’s Best Video Game Fan Sites A Bazillion Critics, One Opinion Covering 30,371 Games and Counting Where it All Begins for 3D Games for the PC Insight info the Gamer Audience
Developer / Publisher User (e.g.: Gamer) The Value to our Customers The Internet Value-Add Services Extend Product Lifecycle Market and Promote Distribute Product Research and Develop Enhance EntertainmentExperience Evaluate content Educate and Inform Acquire Product
Why we were looking for a Solution • Today: We’ve outgrown a collection of largely independent applications, facilitated by manual business processes and controls… • Financials: Solomon • Order Management: Media Division only, a hosted ASP solution • Inventory Management: Manual • Billing/Revenue Recognition: Manual • Fulfillment Systems: • Ad Serving • Email Marketing • Registration and Subscription Systems – proprietary • Several 3rd party ad serving solutions • Needed to automate our high volume core Media business from Quote/Proposal to Cash, including auto-provisioning the Fulfillment Systems and calculating Revenue Recognition
Tier 1 Vendors: Oracle SAP PeopleSoft cancelled with Oracle acquisition Siebel (for CRM/OMS only) Rated on Cost, Strengths/Weaknesses, match to our Key Objectives Create 2 viable solutions for IGN: Option 1: A single integrated application suite Tier 1: Oracle Applications 11.5.10 Option 2: A best in class CRM/OMS with a lower cost Financials product and integrate them Tier 2: Siebel 7.8 CRM/OMS & Great Plains Financials Tier 2 Vendors: Great Plains Solomon Navision Best Software Salesforce.com RFP Overview – Who we considered
Workflow Management Proposal to Cash&RevRec Scalability Web Based Integration Ability Total Cost of Ownership Acquisition &Integration Ongoing Operational Std Functionality: Current & Future SOX 404 Upgradeability and Extensibility Technology Oracle scored 3.9 compared to 2nd option score of 2.7 Key Decision Factors: Scale: 0 to 5 (0 = Not Supported, 5 = Excellent)
Why Oracle? Continued • Oracle Customers in our industry: • At least 10 customers in the online advertising space using Oracle • Yahoo, CNET and others • Employee Feedback: • Strongly in favor of Oracle over other demonstrated solutions. • Depth of experience with Oracle within our finance and IT teams. • One Time Costs: • Oracle 13% more affordable than 2nd option in acquisition, implementation and integration cost. • Red Hat/Linux Platform and Hardware 30% more affordable than 2nd option, and substantial experience within IGN already. • Recurring Costs: • Fewer requirements for integration -> full time staff requirements were reduced as well in the areas of integration development and quality assurance.
Why Oracle? Continued • Comparable CRM feature set to Siebel with stronger contract management. • Leverage the more standard functionality with Oracle • With a single integrated solution: • Utilize developer skills across the CRM and the ERP in a single development framework sharing the same data model across the solution. • No duplicate record masters • Upgrading does not require upgrading multiple applications • Deployment hardware requirement is significantly less • The Oracle solution is based on the J2EE framework, on which IGN has a strong pool of talent. • The Oracle eBusiness Suite also supports future IGN requirements like HR Management Systems, Planning, Budgeting, Incentive Compensation, etc. Implementation of these will not require major effort since they are part of the eBusiness Suite already or as optional licensing.
Phase 1: (Q305) CRM, Forecasting Quoting, Proposal Generation Advanced Pricing Sales Contracts Order Management Custom Inv Reservations GL, Sub-ledgers, Invoicing Revenue Recognition Internet Expenses eProcurement Phase 1.5: (Q405) Bi-directional ad server integration with full flow-through provisioning & delivery status Initial eCommerce integration Project Scope and Phases • 2006 Phases: • Email Server integration • Other 3rd party integration • HRMS/SS HR • Subscriptions/Support • Data Mining, Reporting