Emerging Markets Break-Out Session by lso20334


									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,       Community and News for the RPG
Maps, Trailers, Demos and Betas             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             Insight info the Gamer Audience
for the PC
    The Value to our Customers

                  The Internet
                   Value-Add Services
                Developer / Publisher

Research and   Market and         Distribute
  Develop       Promote            Product

 Evaluate                                        Enhance
                Educate           Acquire
 content                                       Entertainment
               and Inform         Product

                  User (e.g.: Gamer)
    Why we were looking for a Solution
•   Today: We’ve outgrown a collection of largely independent
    applications, facilitated by manual business processes and
    •   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
     RFP Overview – Who we considered
   Tier 1 Vendors:                              Tier 2 Vendors:
     Oracle
                                                     Great Plains
     SAP
     PeopleSoft                                     Solomon
         cancelled with Oracle acquisition          Navision
     Siebel (for CRM/OMS only)                      Best Software
                                                     Salesforce.com

     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
                   Key Decision Factors:
   Workflow Management
   Proposal to Cash&RevRec
   Scalability
   Web Based                        Oracle scored 3.9
   Integration Ability                compared to
   Total Cost of Ownership             2nd option
     Acquisition &Integration         score of 2.7
     Ongoing Operational
 Std Functionality: Current &
 SOX 404
 Upgradeability and Extensibility
 Technology
                                     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
                      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.
           Project Scope and Phases
   Phase 1: (Q305)                Phase 1.5: (Q405)
     CRM, Forecasting               Bi-directional ad server
     Quoting, Proposal               integration with full flow-
                                      through provisioning &
                                      delivery status
     Advanced Pricing               Initial eCommerce
     Sales Contracts                 integration
     Order Management
     Custom Inv Reservations
                                   2006 Phases:
     GL, Sub-ledgers,                 Email Server integration
                                       Other 3rd party integration
     Revenue Recognition              HRMS/SS HR
     Internet Expenses                Subscriptions/Support
     eProcurement                     Data Mining, Reporting

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