1 when execution matters (confidential) oracle in hi-def istore in hi-def unique implementation...

1When Execution Matters(Confidential)

Oracle in Hi-DefiStore in Hi-Def Unique implementation enables the Intellectual Property


Agenda

Background

Problem Definition

Solution

Architecture

Benefits Summary

Q&A


Silicon Image Profile

600+ Employees

Revenue $295M (2006)

38.9% growth (from 2005)

Oracle applications 11.5.10.2 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.

www.siliconimage.comBringing pure digital content home

SIMG (NASDAQ)


Trianz Profile

High Technology

Communications & Media

Financial Services

Retail & CPG

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

When Execution MattersExecution is the art & science of getting things done,

turning strategy into tangible results

5When Execution Matters

Oracle Titan Award 2007

Trianz is the 2007 North America Oracle Titan Award winner for High Tech Industry Solution

19,500+ Oracle Partners19,500+ Oracle Partners 65 judges

19 North American Oracle

Titan Awards


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).


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

2

3

Adopter

Adopter

Adopter

Hundreds of Adopters

Adopter

12

Invoice

3Calculating, tracking, invoicing and receiving annual fee and royalty payments

Challenges for IP Management of HDMI

…

The Mission “Automate, scale and focus on compliance”


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

2

3

Sony

Smart Home

Global Tech

Hundreds of Adopters

Mitsubishi Royalties Admin

Royalties Manager

Invoicing and receiving annual fee and administering, accepting, rejecting royalty payments

Registering to be an Adopter, entering / uploading royalty data

1 2

3

Oracle EBS


Solution Design:

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.

Oracle EBS


High level architecture:

Oracle EBSFully 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

Back End Oracle ApplicationsWeb UI - Hybrid

Oracle iStore

Royalties Management

System ( iStore

Extension)

Teleservice

Accounts Receivable

Service Contracts

Order Management

Inventory

Daily Business

Intelligence


Oracle iStore Web UI - Hybrid

Oracle iStore


System ( iStore Extension)

CatalogManagement

CatalogManagementChange OrderChange Order

PortalPortal

Customer /Partner

Experience

Customer /Partner

Experience

LocalizationLocalization

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


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




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




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




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

Web UI - Hybrid

Oracle iStore




Oracle WorkflowBack End Oracle Applications

Teleservice

Accounts Receivable

Service Contracts

Order Management

Inventory

Daily Business Intelligence

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

The solution design maximizes the benefits of automation using standard Oracle functionality implemented in a multi-lang

environment


Product level breakdown

WEB UI - Hybrid

Back End – Oracle Applications

Oracle iStore· User Registration· Contact

Management· Request to be an

Adopter· Order tracking

Inventory · Serviceable/

Service item Setup

Order Management

· Price List Setup· Order Booking

Service Contracts· Adopter Annual

Billing· Royalty Quarterly

Billing

Accounts Receivable

· Customer Master· Invoice generation· Credit Memos· Collections

Workflow · Automatic eMail

Notifications and Reminders

HDMI Admin

DBI· Ad hoc Reports

for current adopters and pending adopters

· Compliance issues

TeleService · Record, Track,

Resolve Compliance Issues

· Issues Escalations

Customer

Royalties Management(iStore extension)

· Submit Units Shipped Offline/Online

· Approve Units Shipped

Back End Oracle Applications

Teleservice

Accounts Receivable

Service Contracts

Order Management

Inventory

Daily Business Intelligence


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.


Silicon Image : Benefits Realized

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


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.


Thank You!

AQ&


For more information please contact us

Krista Ladd

Phone: (408) 616-4094 Email: [email protected]

www.siliconimage.com

Manisha DesaiPhone: (650) 740-8188 Email: [email protected]

www.trianz.com


Appendix


Application Architecture

1) Oracle iStore User registration Contact management Request to be an Adopter Order tracking

2) Web Extranet (Non-Oracle) Submit Units Shipped Approve Units Shipped

3) Oracle Inventory Serviceable / Service-item

setup

4) Oracle Order Management Price list setup Order booking

5) Oracle Service Contracts Adopter annual billing Royalty quarterly billing

6) Oracle Install Base Customer products tracking

with counter feature for royalty billing

7) Oracle Accounts Receivable Customer Master Invoice generation Credit memos Collections

8) Oracle TeleService Customer Support process

and issue resolution with audit trails

Compliance Issues Issues escalations

9) Oracle Daily Business Intelligence (DBI) Reporting capabilities from

modules in order to get user-friendly and accurate reports

KPI to track active and pending adopters

Compliance issue reporting


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 reportingService 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:1) HDMI User Registration 2) HDMI Adopter Membership3) HDMI Royalties Quarterly Billing4) HDMI Adopter Annual Billing5) Non Compliance Issue Resolution6) Revenue Recognition Reporting7) 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.

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