NMM Meeting in Carlton Hotel Tel Aviv, Israel

1
NMMMeeting in Carlton Hotel Tel Aviv, Israel

• Gil Grossman, Chief Executive Officer eCredible
• 1 February 2001

2
Agenda

• Who is eCredible?
• Why Fortune 1000s 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

3
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
• Worlds largest credit reinsurer
• Second largest reinsurer

4
Fortune 1000 sellers look for

• We need a way to expand internationally while
  still providing a safe trading environment to our
  members
• Equipment manufacture
• We are in the paper business and want to
  minimize our involvement in credit management as
  much as possible
• Paper Trader
• 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

Volume growth Globalization
Outsourcing credit management
Real-time transaction approvals

5
B2B players look for complete suite of
transaction services
Forrester research (BtoB market places) Do you
provide these services today? And in 2002?
Today 2002
Source Forrester Research
6
B2B When Will It Go Online?
40 of eMarketplaces Currently Employ Manual
Processes To Facilitate Transactions Forrester
Research
7
The Gold RushWhy Fortune 1000s 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)
8
Challenges Why Offline Systems Wont Cut it
Online
Offline Finance eFinance needs to be
Procedures Done Manually Internal credit/finance departments Fully Automated 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 Requires communications with third party bank/credit provider Capable of Functioning at Web Speed Credit/Financing must be built into automated transaction
Transaction Volumes Cant Grow Exponentially Limited by manual handling Instantly Scalable Technology to deal with multiple transactions at the same time
Financial Procedures are Not Handled Simultaneously Verification, credit checks and dunning are done separately A One-Click Procedure Integration between front and back office systems
9
The Holy GrailMoving to Online Automation with
Limited Risk
eFinance Risk Management
Category
Instant Guaranteed Transactions
Goal

1. Authenticate the Buyer
2. Check Credit
3. Guarantee Payment
4. Automate Dunning Collection
5. Link to Existing Customer Finance Systems

Requirements

10
eFinance Risk ManagementPartial Solutions
Authentication Verification
No transaction capability or payment guarantee
Not fully online, no transaction capability or
payment guarantee
Credit Check Rating Services
Locks up working capital, not ideal for small or
multiple transactions
Escrow Services
Wont cover large transactions, high interest
rates Not web-based, not real-time, cumbersome
documentation
Trade Cards
Letters of Credit
Requires a company to use their A/R systems
Stand-alone Systems
11
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
Phone
Web
Fax
Email
12
Process IntegrationEfficiency, 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
13
System integration
Registration
Ordering
Invoicing
Payment
APIs
Market place web server
Market place back office or payment invoicing
engine
- Two weeks to link up with market place -
Facilitated by webMethods
14
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 Rightworks SAP AG Siebel
Systems, Inc. Supplyforce.com Ventro Viquity Moai
Microsoft JD Edwards Motive Communications Nightf
ire Software, Inc.
Nonstop Solutions, Inc. Noochee Solutions Nortel
Networks Oracle Peoplesoft Portal Software Red
Oak Software Interwoven, Inc. Remedy Savvion Space
works Supplyworks, Inc. Versata
15
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

16
Why eCredible Can Offer a Guaranteed Transaction
Process

• Authenticates the Buyer Contact is made with
  individuals requesting certificate and his/her
  parent company for total certification
• Runs Detailed Credit Checks Leverage NCM
  network of credit information agencies in13
  countries
• Issues eCredible Payment Guarantee Financial
  backing of NCM/Swiss RE which insures 130
  billion in B2B transactions annually AAA-rated
  balance sheet
• Automates Dunning Collection Web-based credit
  management system combined with NCM global
  network of claims offices collection agencies
• 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.

17
eCredible integrates eFinance players
Risk carriers
Financiers
Customers
Capital markets
Buyers
NCM / Swiss Re
Sellers
Other (re)insurers
Financial institutions
Information providers
Underwriters (NCM)
Collection agencies
Service providers
18
eCredible in Action
www.NetworkPlaza.com
Business Model B2B supplier of network
equipment Target Market Large enterprises,
ASP, ISPs, Telcos Credit Certificate
Users Siemens, Sony Reason for Going
Online Bypass distributors go directly to
buyers
19
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
20
Summary

• B2B needs to move fully online if its to fulfill
  growth predictions
• Fortune 1000s are going online to reach new
  buyers and lower transaction costs
• Offline financial procedures wont work online
• Instant Guaranteed Transactions are whats needed
• Current eFinance Risk Management solutions offer
  too little or too much
• eCredibles technology enables Instant Guaranteed
  Transactions that benefit both the buyer and
  seller

21
Thank you
www.ecredible.com
22
Appendix

• How it works
• Benefits
• Competition
• Market segmentation

23
(No Transcript)
24
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

25
Competitors
Degree of Integration
ACI
_at_rating
Level of Assurance
26
Market segmentation
Single Seller Sites
Facilitating Marketplaces
SELLERS
No Exposure information available No Payment
information available
Exposure information available Payment
information available
Procurement Sites
Full Service Marketplaces
Supplier risk
BUYERS
Exposure information available Payment
information available