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NCM
NMM
Meeting in Carlton Hotel Tel Aviv, Israel
Gil Grossman, Chief Executive Officer eCredible
1 February 2001
Agenda
• Who is eCredible?
• Why Fortune 1000’s Are Going Online
& The Challenges They Face
• The Requirements to Transact Online Safely
• Partial Solutions to the Problem
• The eCredible Answer
• eMarketplaces Say it Really Works
Who is eCredible?
• Leader in eFinance Risk Management
• Born out of NCM / Swiss Re
• Partnered with Leading Technology Providers
– Clarus, IBM, McKinsey & Co., Verisign,
Webmethods
• Experienced Management Team
– Combined total of over 75 years experience
in finance/credit insurance
– Experience with leading global financial
institutions such as ABN-AMRO and
McKinsey & Co.
NCM
• No. 2 credit insurer
in US
• Offices in 13 countries
Swiss RE
• AAA-rated
• World’s largest credit reinsurer
• Second largest reinsurer
Fortune 1000 sellers look for:
Volume growth
&
Globalization
•“We need a way to expand internationally while still
providing a safe trading environment to our
members”
Equipment manufacture
Outsourcing
credit
management
•“We are in the paper business and want to minimize
our involvement in credit management as much as
possible”
Paper Trader
Real-time
transaction
approvals
•“Deals are often held up pending a credit check. In
our business, there is a real risk of losing the deal in
the meantime.”
Energy exchange
B2B players look for complete suite of transaction services
Forrester research (BtoB market places): “Do you provide these services today?”
“And in 2002?”
Arrange credit options
52
98
Integrate with
financial systems
50
Clearing and
settlement
50
Goods inspection
Dispute settlement
Source: Forrester Research
Today
80
80
38
48
64
78
2002
B2B: When Will It Go Online?
40% of eMarketplaces Currently Employ
Manual Processes To Facilitate Transactions
Forrester Research
The Gold Rush:
Why Fortune 1000’s Are Racing to Open Private Exchanges
• Reduce Operational Costs & Increase Efficiency
Through Automation
• Boost Revenue by Reaching New Markets
(SME, Foreign, Disinter mediation)
• Execute Multiple Transactions at the Same Time
Some 30,000 Private Exchanges are in Various
Stages of Development (Gartner Group)
Challenges: Why Offline Systems Won’t Cut it Online
Offline Finance…
eFinance needs to be …
Procedures Done Manually
Fully Automated
Internal credit/finance departments
No manual handling or paperwork
Buyers are Known
Have financial history with company
Able to Deal with Unknown
Buyers (SMEs, foreign etc.)
Credit/Financing Delays
Transaction
Capable of Functioning at Web
Speed
Requires communications with third
party bank/credit provider
Credit/Financing must be built into
automated transaction
Transaction Volumes Can’t Grow Instantly Scalable
Exponentially
Technology to deal with multiple
Limited by manual handling
transactions at the same time
Financial Procedures are Not
Handled Simultaneously
A One-Click Procedure
Verification, credit checks and
dunning are done separately
Integration between front and back
office systems
The Holy Grail:
Moving to Online Automation with Limited Risk
Category
Goal
Requirements
eFinance Risk Management
Instant Guaranteed Transactions
i.
Authenticate the Buyer
ii.
Check Credit
iii.
Guarantee Payment
iv. Automate Dunning & Collection
v.
Link to Existing Customer Finance Systems
eFinance Risk Management:
Partial Solutions
Authentication
& Verification
No transaction capability or payment guarantee
Credit Check
& Rating Services
Not fully online, no transaction capability or payment
guarantee
Escrow Services
Locks up working capital, not ideal for small or multiple
transactions
Trade Cards
Won’t cover large transactions, high interest rates
Letters of Credit
Not web-based, not real-time, cumbersome
documentation
Stand-alone
Systems
Requires a company to use their A/R systems
Introducing the eCredible Solution
An integrated package of online financial processes that delivers
real-time decision making capability, enabling companies to perform
Instant Guaranteed Transactions for B2B.
Authentication
Credit Checks
Guaranteed
Payment
Dunning &
Collection
Integration
Web
Phone
Email
Fax
Process Integration
Efficiency, speed, and accuracy through full integration of all Credit Management processes
New buyer
entry
Credit
selection
AP/AR
monitoring
Dunning
Collections
No manual handling, thanks to systems links
Eliminates need for internal credit management
System integration
Registration
Ordering
Invoicing
Payment
API’s
Market place web
server
Market place back office
or payment invoicing
engine
- Two weeks to link up with market place
- Facilitated by webMethods
Works With All
Interfaces…
Ariba
Art Technology Group
Atlas Commerce
Bowstreet
Broadvision
Cohera
Commerce One
Contivo
Ectone
Global Commerce
Global Logistics
Technologies
I2
Interworld
Corporation
Nonstop Solutions,
Inc.
Rightworks
Noochee Solutions
SAP AG
Nortel Networks
Siebel Systems, Inc.
Oracle
Supplyforce.com
Peoplesoft
Ventro
Portal Software
Viquity
Red Oak Software
Moai
Interwoven, Inc.
Microsoft
Remedy
JD Edwards
Savvion
Motive
Communications
Spaceworks
Nightfire Software,
Inc.
Supplyworks, Inc.
Versata
Integration is Painless…
• Simple integration to back (AR) and front offices
Web-based registration and order/invoice processing
• Fast implementation period
Average of two weeks
• Limited manpower needed
Three people on each side
• Highly secure communications
PKI encrypted credit certificates and triple firewall protection
for front and back-end integration
Why eCredible Can Offer a
Guaranteed Transaction Process
1. Authenticates the Buyer: Contact is made with individuals requesting
certificate and his/her parent company for total certification
2. Runs Detailed Credit Checks: Leverage NCM network of credit information
agencies in13 countries
3. Issues eCredible Payment Guarantee™: Financial backing of NCM/Swiss
RE which insures $130 billion in B2B transactions annually; AAA-rated balance
sheet
4. Automates Dunning & Collection: Web-based credit management system
combined with NCM global network of claims offices & collection agencies
5. Links to Existing Customer & Financing Systems: Proprietary software
allows eCredible to tap into offline a/r systems and collect information about new
buyers, new orders, invoices, payments made, order cancellations, etc.
eCredible integrates eFinance players
Customers
Risk carriers
Buyers
NCM /
Swiss Re
Sellers
Other
(re)insurers
Information
providers
Underwriters
(NCM)
Service providers
Collection
agencies
Financiers
Capital
markets
Financial
institutions
eCredible in Action
www.NetworkPlaza.com
Business Model:
B2B supplier of network equipment
Target Market:
Large enterprises, ASP, ISP’s, Telco’s
Credit Certificate Users:
Siemens, Sony
Reason for Going Online:
Bypass distributors – go directly to buyers
eCredible in Action
www.Pro-online.nl
Business Model:
B2B supplier of tools
Target Market:
Building trade sector
Credit Certificate Users:
Mainly Dutch SMEs
Reason for Going Online:
Reach all European buyers
Summary
• B2B needs to move fully online if it’s to fulfill growth
predictions
• Fortune 1000s are going online to reach new buyers and
lower transaction costs
• Offline financial procedures won’t work online
• Instant Guaranteed Transactions are what’s needed
• Current eFinance Risk Management solutions offer too
little or too much
• eCredible’s technology enables Instant Guaranteed
Transactions that benefit both the buyer and seller
Thank you
www.ecredible.com
Appendix
• How it works
• Benefits
• Competition
• Market segmentation
Everyone Benefits
Buyer Receives:
• Access to open account terms with new suppliers
• Control over own credit
• One-click convenience
Seller Receives:
• Increased revenue from new buyers
• Assurance of payment
• Lower credit management costs
Competitors
Degree of
Integration
ACI
@rating
Level of
Assurance
Market segmentation
Single Seller Sites
Exposure
information
available
S
E
L
L
E
R
S
B
Order
Invoice
Payment
Payment
information
available
Facilitating Marketplaces
B
Exposure
information
available
Payment
information
available
Invoice
Payment
Order
MP
Payment
No Exposure
information
available
No Payment
information
available
Invoice
Payment
Procurement Sites
S
Order
S
Order
Full Service Marketplaces
B
MP
B
U
Y
E
R
S
S
Order
Invoice
Payment
Supplier risk

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