1. Operating Your Business with Subscription Management
5:00 PM Tuesday
Tapomoy Dey
Senior Director, Financials Development

2. Copyright © 2018, Oracle and/or its affiliates. All rights reserved
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3. Agenda The Subscription Economy Introducing Subscription Management
Demonstration
Timeline
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4. The Subscription Economy
Subscription Commerce is here!!
Product-centric Transaction Economy
One Time Linear Relationship, Sell-Forget
Business
Customer
Quote
Contract
Order
Fulfillment
Billing
Collect
Recognize
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5. The Subscription Economy
Subscription Commerce is here!!
Product-centric Transaction Economy
Customer-centric Subscription Economy
Recurring Relationship with focus on Customer Satisfaction and Retention
One Time Linear Relationship, Sell-Forget
Transactions
Billing & Collect
Customer Success
Flexible Pricing
Contract Terms
IOT, Usage, Metering
Finance Management
Product Options
Lifecycle, Changes
Channels
Fulfillment
Business
Customer
Quote
Contract
Order
Fulfillment
Billing
Collect
Customer
Recognize
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6. The Subscription Economy
All Industries Shifting to Recurring Relationships
-- industry representation examples:
Education/Research – Lynda.com, udemy, Amazon Prime Book Box/Bookroo/KiwiCrates
Food Agriculture – Community Supported Agriculture – share/subscription points in local farming conglomerates
Real Estate – WePeople – Comfort as a Service
Grocery/Supermarkets - Amazon Deliver, Freshly, Blue Apron, Marley Spoon
Automobile – Zipcar
Sports/Apparel – Traditional Sports club memberships, Fabelitcs
Aviation – Surf Air – All you can fly membership
Home Improvements – HonestBox, InspireMe
Publishing/Readership – Digital Reading Material – ScribD, Kindle Unlimited
Pharmaceutical – Drugstore.com
Veterinary Services – Pet.com
Media – Digital Media – Netflix, Pandora, Amazon Prime Videos
Clothing/Apparel – StitchFix, Trunkclub, LeTote
We know subscription for B2C: dollar shave club, blue apron, amazon, spotify
Now getting into it for B2B: MRI machines and pumping equipment
Multi-Billion Dollar Shift in Consumption
Customer-centric, always-in-stock, lean consumption is the new norm
Dynamic, always changing relationships with businesses
Full value consumers desire from goods and services – with the greatest efficiency and least pain
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

7. The Subscription Economy
Relationship-Based Activity is the New Norm
80%
SaaS Vendors Shifting to Sub. Svcs by 2020 *
Projected Meal Subscription Sales in 2018*
$3B
10%
Of all new vehicle sales will be subscription based by 2025**
$47.6B
Global telematic market by 2020 ***
20M
Apple Music subscribers as of Dec 2017, on par with Fortune 100 company
Subscribers to Amazon Prime by 2028***
275M
The current era of subscriptions is what is the norm today – consumer-facing subscription models – Netflix, Hulu, Pandora, Amazon are at the center of all of our lives. Subscription box services, Anything of the month club, Subscribe and Save replenishment models. The way that consumers purchase has changed. The notion of recurring relationships is now standard. Customers want to be at the center of doing being with you and expect instant gratification / fullfillment, a consistent and connected experience that is not only personalized but also dynamically driven based on when and where they are engaging.
As we’ve all observed, enterprises across industries are changing their models from one-time purchases to subscriptions, and in many cases from physical products to digital. To highlight a few statistics on this rapidly accelerating trend:
Retail box subscriptions – like clothing, wine, razors – have grown 3000% in the past three years
Adobe has made the shift to subscription more successfully than most, with 78% of its revenue coming from subscriptions as of Dec 2017.
Apple Music is encouraging a move from one-time iTunes downloads of songs or albums to monthly Apple Music subscriptions and they’ve attracted 10 million subscribers in just their first six months
Telematics – a quickly growing area enabled by connected cars and Internet of Things – is expected to be a $47.6 billion market in four years. **
*** Prodesigntools.com, Statistica.com, Markets and Markets, 2017
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8. Introducing Subscription Management
Complete Subscription Lifecycle Support
Transactions
Billing and Collect
Customer
Success
Flexible Pricing
Contract Terms
IOT, Usage, Metering
Finance Management
Product Options
Lifecycle, Changes
Channels
Marketing
Commerce
Sales
Subscription
ERP
Engagement
Service
CPQ
CLM
ERP, SCM
Fulfillment
Configure, Price & Manage Quotes
Renewals X-Sell and Up-Sell
Customer 360
Mixed order fulfillment support for services and physical assets
Manage Contracts and Billing
Collect and Process Payments
Automated Revenue Recognition Compliance with ASC606/IFRS15
Customer
Drive new business model innovation and enable recurring relationships to generate additional revenue from your goods and services. Oracle Subscription Management integrates front and back office processes on one highly efficient platform.
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9. Introducing Subscription Management
Integrated Quote to Collect for Recurring Relationships
Subscription Management
Customer 360
Subscription generation, Redlining / collaboration
Recurring and usage billing
Renewal automation workflows
CPQ
ERP
Transactions
Billing & Collect
Customer Success
Flexible Pricing
Contract Terms
IOT, Usage, Metering
Finance Management
Product Options
Lifecycle, Changes
Channels
Fulfillment
Account & Opportunity Management
Subscription Quoting
Promotions & Trials
Recommendations and upgrades
Renewal Analytics
Automate invoicing, collection
Multiple payment methods
Credit Lifecycle management
Online customer Bill Management Portal
Customer Account and period close reporting
Engagement Cloud
Revenue Management
Unified Sales and Service
Build relationships and close deals
Efficient service issue resolution for accounts,
contacts and partners
Customer
Automated revenue management
Contract modifications
ASC 606 / IFRS 15 compliance
Reporting and forecasting
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10. Diverse Customer Base Professional Services Financial Services
Media, Entertainment & Business Services
High Technology
Manufacturing & Automotive
Healthcare
Retail & Distribution
Higher Education
And many many more …

11. Demonstration
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12. Springboard – Sales – Opportunity WA
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15. Click on the Opportunity Name

16. Click on the Quotes and Orders on the left contextual area

17. Click on the Create Quotes button

18. Scroll down on the page and click “Add Lines” button

19. Click on Consumer Vehicles – Configure SUV

20. Select on Luxury and click on Services tab on the page

22. Select the Sirium/XM Radio, Wifi, or Maintenance Package services
Click on the Update Button – to see the Bills of Material updated with the products selected

23. Click on the “Add to Transactions” button on the page

25. Verify the list of products. There are 4 products.
SUV Subscription – One time activation fee (50% discount), Monthly recurring, Overage Charge
Standard Maintenance Plan – Monthly recurring
WIFI – Monthly recurring
Sirium/XM Radion – Monthly recurring (first three months free as discount)
Click on Save button
Cleanup Notes: The Product Car Subscription should show up on the top of the other products

26. Scroll on the pdf on the second browser – close when done reviewing.
Click on Create Subscription Button (Screenshot got out of sequence – will redo one more time with new quote)
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29. Click on Welcome Springboard Dot (First Dot)
Select Receivables – Billing WA

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31. Click on the Task List – Manage Transactions

32. Click on View Image button
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33. Scroll down on the pdf to see the usage details

34. Click ok when done.
Click cancel
Click done on manage transactions page

35. Click on Revenue Management WA
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36. Click on View Contract Activities
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38. To navigate back click on Cancel/Done/Home icon
Review and click on OK
To navigate back click on Cancel/Done/Home icon
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39. Timeline - Subscription Management
Cloud, Services, Media
Industrial Mfg
Use Case
Mixed orders
Managed services
Use Case
Coverage services, maintenance
Online subscriptions / self-service
Key Features
Umbrella contract, P&L
Projects integration
Predictive analytics
Key Features
Coverage service billing and renewals, SCM & CC integration
Improved usage capture/rating
Modules
CPQ, EC, CC, PPM (optional)
Subscription Mgmt
Financials, RMCS (optional)
Modules
CPQ, EC, CC (optional)
Subscription Mgmt
Financials, RMCS
18.10
Compete
19A
Differentiate
18C
19A
19B
19B
Pass
19C +
19C
Use Case
Subscriptions billing for recurring and usage charges
Subscription lifecycle mgmt
Use Case
SLA - maintenance schedules, field service/depot repair
IoT monetization
Work with other Financials (EBS)
Simplex Grinnel / Tyco
Boeing,
GE, Fujitsu, Cisco, PANW
- Dynamic entitlements for IoT
Pricing based on real time data (hourly) eg. Energy utility pricing based on weather, usage etc.. , Vending machines pricing changes based on weather/crowd point of sale
Key Features
Subscription 360
Billing & revenue mgmt
Renewals, upgrades, cancellations
Key Features
Gather IOT consumption data
Entitlements mgmt
KPIs, renewal analytics 360
3rd party FINs integration
Modules
CPQ, EC (optional)
Subscription Mgmt
Financials, RMCS
Modules
CPQ, EC, CC (optional)
Subscription Mgmt
Financials, RMCS (optional)
Hi-Tech, Online Retail
Managed Services Telco