Emerging Markets BreakOut Session

1
Emerging Markets Break-Out Session

• Kelly Forese, VP Ops and Applications
• AppsDay April 8, 2005

2
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

3
IGN Entertainment Network
Games. Gear. Movies. Music.
Download PC Games Direct to Your Hard Drive
The Latest Gaming News 24/7
Multiplayer Gamings Home Page
Community and News for the RPG and MMO Gamer
Free Games, Downloads, Mods, Patches, Maps,
Trailers, Demos and Betas
The Insiders Choice for Xbox Information
The Universes Best Video Game Fan Sites
Covering 30,371 Games and Counting
A Bazillion Critics, One Opinion
Insight info the Gamer Audience
Where it All Begins for 3D Games for the PC
4
The Value to our Customers
The Internet
Value-Add Services
Extend Product Lifecycle
Research and Develop
Market and Promote
Distribute Product
Enhance EntertainmentExperience
Evaluate content
Educate and Inform
Acquire Product
5
Why we were looking for a Solution

• Today Weve outgrown a collection of largely
  independent applications, facilitated by manual
  business processes and controls
• 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

6
RFP Overview Who we considered

• Tier 1 Vendors
• Oracle
• SAP
• PeopleSoft
• cancelled with Oracle acquisition
• Siebel (for CRM/OMS only)
• 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

• Tier 2 Vendors
• Great Plains
• Solomon
• Navision
• Best Software
• Salesforce.com

7
Key Decision Factors

• Workflow Management
• Proposal to CashRevRec
• Scalability
• Web Based
• Integration Ability
• Total Cost of Ownership
• Acquisition Integration
• Ongoing Operational
• Std Functionality Current Future
• SOX 404
• Upgradeability and Extensibility
• Technology

• Oracle scored 3.9
• compared to
• 2nd option
• score of 2.7

Scale 0 to 5 (0 Not Supported, 5 Excellent)
8
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
  assurance.

9
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.

10
Project Scope and Phases

• Phase 1 (Q305)
• CRM, Forecasting
• Quoting, Proposal Generation
• Advanced Pricing
• Sales Contracts
• Order Management
• Custom Inv Reservations
• GL, Sub-ledgers, Invoicing
• Revenue Recognition
• Internet Expenses
• eProcurement

• Phase 1.5 (Q405)
• Bi-directional ad server integration with full
  flow-through provisioning delivery status
• Initial eCommerce integration

• 2006 Phases
• Email Server integration
• Other 3rd party integration
• HRMS/SS HR
• Subscriptions/Support
• Data Mining, Reporting