U.S. patent application number 10/631211 was filed with the patent office on 2004-08-05 for telecommunications credit management system and method.
Invention is credited to Hinderer, Harald.
Application Number | 20040153396 10/631211 |
Document ID | / |
Family ID | 32825404 |
Filed Date | 2004-08-05 |
United States Patent
Application |
20040153396 |
Kind Code |
A1 |
Hinderer, Harald |
August 5, 2004 |
Telecommunications credit management system and method
Abstract
A system and method for a telecommunications service provider
for managing credit information relating to telecommunications
customers and the credit process. The credit management system has
a credit information manager, credit limit manager, credit decision
support and credit rules engine. The credit management system
communicates with external systems such as external credit
information providers, accounting systems, electronic commerce
systems and business partners. The credit rules engine applies
rules to information gathered from such sources to calculate
internal credit scoring and credit limits.
Inventors: |
Hinderer, Harald;
(Heidelberg, DE) |
Correspondence
Address: |
KENYON & KENYON
1500 K STREET, N.W., SUITE 700
WASHINGTON
DC
20005
US
|
Family ID: |
32825404 |
Appl. No.: |
10/631211 |
Filed: |
July 31, 2003 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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60444310 |
Jan 31, 2003 |
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Current U.S.
Class: |
705/38 ;
705/40 |
Current CPC
Class: |
G06Q 20/102 20130101;
G06Q 40/12 20131203; G06Q 40/02 20130101; G06Q 40/025 20130101 |
Class at
Publication: |
705/038 ;
705/040 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A credit management system for managing information relating to
credit of a telecommunications customer comprising: a credit
information manager, said credit information manager managing
information relating to a credit limit and credit scoring of said
telecommunications customer; a credit limit manager, said credit
limit manager managing credit limit master data and calculating
open and used credit for said telecommunications customer; credit
decision support, said credit decision support performing analyses
of accounting information relating to said telecommunications
customer; and a credit rules engine, said credit rules engine
applying credit rules to generate internal scoring and internal
credit limits from information input into said credit management
system.
2. A credit management system as in claim 1, wherein said
information input comprises external credit scoring.
3. A credit management system as in claim 1, wherein said
information input comprises said accounting information.
4. A credit management system as in claim 3, wherein said
accounting information comprises sales volume information, dunning
information, and payment history information.
5. A credit management system as in claim 1, wherein said
information input comprises customer profession and age
information.
6. A method of automatically performing a credit check relating to
a telecommunications customer, said method being designed to be run
on a computerized platform and comprising the steps of: obtaining
an external credit scoring from at least one external credit
information provider; obtaining information relating to said
telecommunications customer from at least one source; applying a
credit scoring rule to said external credit scoring and said
information to calculate an internal credit limit; and storing said
internal credit limit.
7. A method of automatically performing a credit check as in claim
6, wherein said applying a credit scoring rule step comprises
calculating an internal credit scoring prior to calculating said
internal credit limit and utilizing said internal credit scoring to
calculate said internal credit limit.
8. A method of automatically performing a credit check as in claim
7, further comprising the step of storing said internal credit
scoring.
9. A method of automatically performing a credit check as in claim
6, wherein said information relating to said telecommunications
customer comprises accounting information.
10. A method of automatically performing a credit check as in claim
9, wherein said accounting information comprises sales volume
information, dunning information and payment history
information.
11. A method of automatically performing a credit check as in claim
6, wherein said information relating to said customer comprises
profession and age information.
12. A method of automatically updating a telecommunications
customer's credit scoring, said method being designed to be run on
a computerized platform and comprising the steps of: receiving an
updated external credit scoring from at least one external credit
information provider; storing said updated external credit scoring;
retrieving updated accounting information; calculating a new
internal credit scoring based upon said updated external credit
scoring and said updated accounting information; and storing said
new internal credit scoring.
13. A method of automatically updating a telecommunications
customer's internal credit scoring as in claim 12, further
comprising the step of requesting said updated external credit
scoring from said at least one external credit information
provider.
14. A method of automatically updating a telecommunications
customer's internal credit scoring as in claim 13, further
comprising the steps of: determining if said internal credit
scoring is still valid; determining if said customer is active; and
if said customer is not active, adding said customer to an inactive
list and not updating said customer's internal credit scoring.
15. A method of automatically updating a telecommunications
customer's internal credit scoring as in claim 14, wherein if said
customer is not active, erasing a stored credit limit and credit
scoring for said telecommunications customer.
16. A method of automated credit limit monitoring for a
telecommunications customer, said method being designed to be run
on a computerized platform and comprising the steps of: receiving
accounting information, said accounting information collectively
providing an indication of exposure for said telecommunications
customer; calculating a total exposure from said accounting
information; determining if said total exposure is within a
predetermined level of said credit limit or higher; if said total
exposure is within a predetermined level of said credit limit or
higher, triggering an event for follow-up, and updating credit
scoring and credit limit for said telecommunications customer.
17. A method of automated credit limit monitoring as in claim 16,
wherein said accounting information comprises data relating to open
items, and unbilled and billed but not posted items.
18. A method of automated credit limit monitoring as in claim 16,
further comprising the step of setting a new validity date for said
updated credit scoring and credit limit.
19. A method of automated exposure monitoring for monitoring credit
exposure of a telecommunications service provider, said method
being designed to be run on a computerized platform and comprising
the steps of: obtaining accounting information relating to a
telecommunications customer; calculating an accounting information
total; determining if said accounting information total exceeds a
credit limit of said telecommunications customer; if said
accounting information total does exceed said credit limit,
triggering an event.
20. A method of automated exposure monitoring as in claim 19,
wherein said event comprises storing said accounting information
total.
21. A method of automated exposure monitoring as in claim 19,
wherein said event comprises storing a difference between said
accounting information total and said credit limit.
22. A method of automated exposure monitoring as in claim 19,
wherein said method is run upon said telecommunications customer
accessing a service.
23. A method of automated exposure monitoring as in claim 22,
wherein said accessing a service comprises placing a new call.
24. A method of automated exposure monitoring as in claim 22,
wherein if said accounting information total does not exceed said
credit limit, said service is provided.
25. A method of automated exposure monitoring as in claim 22,
wherein said event comprises suspending said service.
26. A method of automated exposure monitoring as in claim 19,
wherein said method is run upon said telecommunications customer
placing a new order.
27. A method of automated exposure monitoring as in claim 26,
wherein if said accounting information total does not exceed said
credit limit, said new order is approved.
28. A method of automated exposure monitoring as in claim 26,
wherein said event comprises declining said new order.
29. A method of automated exposure monitoring as in claim 19,
wherein said method is run periodically.
30. A method of automated exposure monitoring as in claim 19,
wherein said accounting information comprises data relating to open
items, and unbilled and billed but not posted items.
31. A method of automated exposure monitoring as in claim 19,
wherein a plurality of different systems may provide said
accounting information.
32. A method of automatically preparing a credit checklist for a
telecommunications service provider, said method being designed to
be run on a computerized platform and comprising the steps of:
obtaining information from an accounts receivable system; obtaining
information from a billing system; and taking information relating
to a predetermined volume of telecommunications customers, critical
telecommunications customers' information, and suspicious
telecommunications customers' information and preparing a report
therefrom.
33. A method of automatically preparing a credit checklist as in
claim 32, wherein said predetermined volume comprises a
predetermined percentage of said telecommunications customers.
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application arises from provisional application
60/444,310 filed on Jan. 31, 2003 and claims the benefit
thereof.
FIELD OF THE INVENTION
[0002] This invention relates to an automated credit management
system and method for managing credit information relating to a
telecommunications customer. The present invention is particularly
useful where telecommunications customers are offered services or
products on credit.
BACKGROUND OF THE INVENTION
[0003] Many businesses that sell goods and/or services sell such
goods and/or services on credit. One such business would be a
telecommunications service provider. When offering credit, it is a
good business practice to determine the risk associated with
offering that credit and balance it against the potential profit
from sale for which the credit was offered. This balancing process
is often used to generate a credit limit for a particular customer.
This process can be an involved and time-consuming process and
tends to slow down the conduct of business.
[0004] Generally, in most large companies the information needed
for credit decisions is spread out all over the company. The
necessary communications between various departments within a
company, such as sales, credit and finance departments can be very
time consuming. For instance, the sales department, credit
department and finance departments may need to collaborate on what
is the risk associated with offering credit, what is the potential
profit and whether or not accepting the deal is worth the risk.
Outside services, like Dunn & Bradstreet, help to some extent
at determining the risk by offering outside credit scoring, but do
not completely address the problem as each company has its own view
of a risk/benefit analysis.
[0005] The process of credit management typically consists of
interactions between the credit department, the sales department,
the finance department and credit information providers. Typically,
when a new sales order or service contract is prepared, the sales
department and credit department need to interact. The credit
department can then check the credit limit of the customer. If the
customer credit limit has not been established internally, the
contract can be blocked which involves communication with the sales
department. Then the customer credit fact sheet is checked in the
credit department. The credit department can then interact with the
outside credit information provider to get external credit
information, such as a credit scoring. This credit scoring can then
be used along with other information to establish an internal
credit scoring of the customer and, based on this, a credit limit.
The sales order can than be released back to the sales department
for execution.
[0006] The present invention relates to an automated credit
management system and method for managing credit information in an
automated fashion. The automated credit management system of the
present invention includes a credit information manager, a credit
limit manager, credit decision support and a credit rules
engine.
[0007] Automating the credit decision would help you speed up the
credit process and improve the consistency and efficiency of a
credit operation. However, such an automated process must be
flexible enough to meet the demands of different businesses.
[0008] Thus, a need exists for an automated credit management
system that is flexible enough to meet the changing needs of
different businesses.
SUMMARY OF THE INVENTION
[0009] The present invention relates to an automated credit
management system and method for managing credit information in an
automated fashion. The automated credit management system of the
present invention includes a credit information manager, a credit
limit manager, credit decision support and a credit rules
engine.
[0010] The present invention has many advantages over the prior
art. It provides automated validation of a customer's ability to
pay before a sale is made. It enables variable credit limit
monitoring of a customer across all company branches and sales
channels. It permits a business to analyze and classify customers
according to their credit worthiness. It provides a flexible tool
for calculating a customer's credit rating according to internal
rating regulations. It enables a company to use customer data to
manage the customers' credit lines according to the company's
credit policy. It automates the decision process for credit
applications. It also supports credit managers handling exceptions
in the credit management process.
[0011] The present invention enables controlling of credit risk via
real-time credit allocation and ongoing monitoring. It permits
online credit rating check for a fast credit decision. It reduces
effective DSO by reducing payment delays and bad debt. It increases
revenues with risk free accounts by decreasing the rate of credit
refusals. It reduces transaction costs by automating the credit
application process. It improves customer relationships by
concentrating the service on profitable customers. It also links
dunning and dispute information to the credit decision process.
[0012] An embodiment of the present invention provides a system and
method for automating and managing the credit process for a
telecommunications service provider.
[0013] Another embodiment of the present invention provides a
system and method for determining a credit limit for a
telecommunications customer based upon information relating to the
customer through the application of a rule.
[0014] Another embodiment of the present invention provides a
system and method for performing automated credit scoring
updates.
[0015] Another embodiment of the present invention provides a
system and method for performing credit limit monitoring.
[0016] Another embodiment of the present invention provides a
system and method for performing credit exposure monitoring.
[0017] Another embodiment of the present invention provides a
system and method for preparing periodic credit checklists.
[0018] As such, it is an object of the present invention to provide
for the automatic management of the credit process for a
telecommunications service provider.
[0019] It is another object of the present invention to
automatically set a telecommunications customer credit limit based
upon information relating to the customer through the application
of a rule.
[0020] It is another object of the present invention to
automatically update credit scoring.
[0021] It is another object of the present invention to monitor
credit limits.
[0022] It is another object of the present invention to monitor
credit exposure.
[0023] It is yet another object of the present invention to
periodically prepare credit checklists.
BRIEF DESCRIPTION OF THE DRAWINGS
[0024] FIG. 1 is a block diagram depicting an automated credit
management system according to an embodiment of the present
invention.
[0025] FIG. 2 is a block diagram depicting a process flow in an
automatic credit management system according to an embodiment of
the present invention.
[0026] FIG. 3 is a block diagram depicting a process flow for a
credit check in an automatic credit management system according to
an embodiment of the present invention.
[0027] FIG. 4 is a flow chart depicting a method of a periodic
credit scoring update according to an embodiment of the present
invention.
[0028] FIG. 5 is a flow chart depicting a method of a credit limit
monitoring according to an embodiment of the present invention.
[0029] FIG. 6 is a flow chart depicting a method of credit exposure
monitoring according to an embodiment of the present invention.
[0030] FIG. 7 is a flow chart depicting a method of creating a
periodic credit checklist according to an embodiment of the present
invention.
DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0031] The present invention will be better understood by reference
to the accompanying drawings.
[0032] Referring now to FIG. 1, credit management system 100
contains several functionalities. One is credit limit manager 101.
Credit limit manager 101 handles the credit limit master data,
integration with business partners, the calculation of open and
used credit lines, the online/offline credit limit check, credit
limit hierarchies and consolidation of open items from different
accounting systems.
[0033] Credit information manager 102 is also contained in credit
management system 100. It interfaces to third party credit
information providers, such as Dunn & Bradstreet and other
credit bureaus. It collects credit data by analyzing internal
customer data, obtains customer data from business partners,
monitors credit data validity, and automatically updates credit
data.
[0034] Credit decision support 103 is contained in credit
management system 100. It handles customer fact sheets with all
credit-relevant customer data and key figures. It performs credit
history analyses, payment history analyses, analyses of customer
balance and sales figures for goods and/or services, and DSO
analyses. Credit decision support 103 also handles credit limit
warnings and the release of blocked orders.
[0035] Credit rules engine 104 is also part of credit management
system 100. It dynamically generates credit limits through the
application of credit rules. The credit limits can be derived from
a customer profile and/or accounting and credit information. Credit
rules engine 104 is key to the workflow-supported credit approval
process and automatic credit decisions using predefined credit
rules that may be set-up by or for the company using credit
management system 100 according to their own view of a risk/benefit
analysis. Such decisions could include, e.g., accept, reject,
blacklist, VIP customer, etc. It also may automatically dispatch
credit applications to the responsible credit manager.
[0036] An electronic commerce system 110, logistics execution 120,
billing system.130, and accounts receivable system 140 all may
communicate with credit management system 100. External
credit-information service(s) 150 can be accessed by credit
management system to obtain credit information on customers. Credit
management system 100 communicates with dispute management
functionality 160 for dealing with disputes regarding credit. It
also communicates with a data warehouse 170 for storing and
retrieving information.
[0037] Credit management system 100 also communicates with credit
manager portal 180 for permitting a user to access the credit
management system 100. A user may view credit exposure by country,
a list of customers with usage of their credit limit, an overview
of all blocked orders, cross-system credit information, general
customer and contact data, customer credit information, and
customer credit history, for example.
[0038] Credit management system 100 is thus a global credit
management solution that can be integrated into all sales,
logistics and accounting systems existing at a company. It is
particularly useful for a telecommunications service provider
because a large portion of its sales of services are conducted on a
credit basis. Credit management system 100 can perform a myriad of
functions. It can perform dynamic credit application scoring for
new customers and behavior scoring for existing customers. It can
perform a workflow based credit approval process. It can perform an
online credit rating check using internal company and external
credit information. It also can perform, ongoing credit risk
monitoring in a variety of ways, such as by customer, by currency,
or by country. It provides an access point to external credit
information available for other accounting systems. It also
provides credit decision support from customer analysis tools
including balance analysis, payment history analysis, due date
structure, and sales history.
[0039] Referring now to FIG. 2, a process flow of a credit check
using the credit management system 100 according to an embodiment
of the present invention is shown. Credit information manager 102
obtains information from external credit information provider(s)
205. It may also gather information from an application 215, such
as a dispute application to be used when making a credit
determination. Credit information manager 102 provides the
appropriate information to credit rules engine 104. The credit
rules engine 104 calculates internal scoring and credit limit and
provides this scoring and limit to credit limit manager 101. Credit
decision support 103 provides output to credit management portal
180 through data warehouse 170.
[0040] A business partner 210 may provide information to or receive
information from credit limit manager 101. Credit limit manager 101
may provide information to credit management portal 180, directly
and/or through data warehouse 170. It also may accept information
from an outside application 270, such as an electronic commerce
system or an accounting system, for a request for a credit check or
the like.
[0041] One of the ways in which the present invention can be used
is to perform a credit check for a new telecommunications customer.
Referring to FIG. 3, a process flow of the functioning of credit
rules engine 104 during a credit check is shown. The first step is
to take customer information, such as name, ID number (such as a
tax ID, SSN, driver's license number, etc.), address, bank account
number, age, profession, etc., from an electronic commerce system
110 or another system and forward it to credit management system
100. Credit management system 100 can group and treat the customer
according to the group they belong to. For example, it can group
the customer as an individual or a company. Different credit rules
can be used for each group if desired and external scoring can be
obtained from different and/or multiple external credit information
sources if desired. A request for credit scoring for a customer is
then sent to the appropriate external credit information source(s)
205. A score(s) is then received back. The score(s) can then be
stored by credit information manager 102. An internal credit
scoring rule can then be applied based on the process group to
determine internal scoring by credit rules engine 104. The score
can be stored by credit information manager 102. A credit limit can
be calculated based on the internal scoring, customer type and any
other inputs desired by credit rules engine 104 and stored by
credit information manager 102. This limit can be used by a
telecommunications service provider, for example, to control
customer access to telecommunications services. A
telecommunications service provider may utilize a customer's credit
limit to suspend service once the limit is hit.
[0042] Referring now to FIG. 3, information relating to the volume
of sales of goods and/or services 300, dunning information 305, and
financial information 310 such as average delay in payments, can be
used to form credit information 315. This credit information 315 is
then provided to credit rules engine 104. For a new customer, such
information may not be available unless it is provided by a
business partner 210 that has conducted business with the customer
in the past. Other information can be used in addition to, or in
lieu of, credit information 315. For instance, customer country or
region 360, customer age 365, and customer profession 370 can be
used to form customer information 380. Credit scoring information
from external credit information providers 320 and 325 can also be
input to credit rules engine 104. Scoring rule 330 is provided to
credit rules engine 104, as is credit limit rule 340. Credit rules
engine 104 then applies credit scoring rule 330 and credit limit
rule 340 to the credit information 315 and/or 380 and credit
scoring information from external service providers 320 and 325.
The resulting internal scoring and credit limit are then passed
onto credit limit manager 350.
[0043] For example, two external credit information providers could
be accessed to determine two different external scores A and B by a
telecommunications service provider. Sales volume, dunning and
payment information could be used in a formulaic way by credit
rules engine 104 to obtain a score C. Region, age and profession
could be used to obtain a score D. Credit rules engine 104 can then
calculate an internal scoring S through the application of a credit
rule. For example, IF (blacklist entry exists) S=0, ELSE
S=(2*A+3*B+5*C+5*D)/15.
[0044] Periodic updating of internal customer scoring and/or credit
limit can be done. This updating may be especially useful to
telecommunications service providers. Referring now to FIG. 4, this
process is described. This update can operate either in a pull or a
push fashion. With the pull method, the process is initiated by
credit management 100. This can be done periodically or on demand.
If it is to be performed periodically, a valid date can be set in
step 400. This date is an indication of when the validity of the
current internal credit scoring and credit limit either expire or
the last date they are valid. In step 405, a periodic batch job can
be run to find customers whose limits are no longer valid. For a
customer whose information is no longer valid, it can be determined
if the customer is active, in step 410. This step is not a
necessary step but may be desired to avoid additional requests for
credit updates in the future during other periodic updates. If the
customer is not active, in step 415, he may be placed on an
inactive list or his scoring and credit limit may be deleted so
that a new request for scoring will have to be performed upon
receiving a new order from the inactive customer. If the customer
is active, a request to external sources can be made for new
scoring information in step 420. External credit information
sources then provide external scoring to credit management 100 in
step 425. This information is stored in step 430 to update the
stored external scoring. In step 435, credit management 100
retrieves updated sales and accounting data. In step 440, the
internal scoring and/or credit limit is then recalculated based
upon the new external credit scoring and the data obtained in step
435. In step 445, the internal scoring and/or internal credit limit
is then stored. The process for push updating is essentially the
same, but begins at step 425.
[0045] Referring now to FIG. 5, a process of credit limit
monitoring is shown. This process begins in step 500 when a new
order or contract is released for a customer by an electronic
commerce system, for example, or in the telecommunications
industry, when a service is being accessed, such as when a new call
is being placed. In step 505, information relating to new orders
from an electronic commerce system, unbilled and billed but not
posted items from a billing system, and open items from an accounts
receivable system, for example, is received by credit management
system 100. In step 510, a credit limit usage and early warning
list is run periodically to determine those customers above, at, or
near their credit limits. In step 515, an event is triggered for
follow-up. In step 520, the results can be reviewed in the credit
manager portal by a user. In step 525, the customer credit scoring
and limit can be updated. This may be accomplished through the
method discussed earlier with respect to the pull method of FIG. 4.
In step 530, a date can be set for the validity of the new credit
scoring and limit to expire. In step 535, workflow proceeds for
follow-up actions. In step 540, the customer can be contacted if
desired.
[0046] Referring to FIG. 6, the process of periodic exposure
monitoring can be performed. This process first entails obtaining
information relating to new orders from an electronic commerce
system, or in the telecommunications industry, when a service is
being accessed, such as when a new call being placed, unbilled and
billed but not posted items from a billing system, and open items
from an accounts receivable system, for example, in step 600. In
step 610, the totals of the new order, the unbilled and billed but
not posted amount and the open items are added together to
determine a total credit exposure. In step 620, this credit
exposure is compared with the credit limit to determine if the
credit exposure exceeds the credit limit and if so, to what extent.
If the credit exposure does not exceed the credit limit, the order
can be approved or the service can be provided (e.g., the call
connection can be completed) in step 630. If the credit exposure
does exceed the credit limit, in step 640, an event(s) can be
triggered. For example, the total credit exposure, the amount of
the exposure over the credit limit, and/or the fact that the
exposure exceeds the credit limit can be sent to a report, used to
reject an order or suspend a service (such as disabling calls)
and/or to request down payment or cash from the affected
customer.
[0047] Referring to FIG. 7, a periodic credit checklist can be
generated. This process could also be initiated on demand. In step
700, accounts receivable system 140 communicates its new totals to
credit management system 100. In step 710, billing system 130
communicates its totals to credit management system 100. In step
720, a list of critical customers may be communicated back to
accounts receivable system 140, for example, by credit management
system 100. In step 730, a credit checklist can be calculated, for
example, by taking a predetermined percentage of the customers
reported by accounts receivable system 140, any suspicious
customers and any critical customers along with a predetermined
percentage of the customers reported by billing system 130 any
suspicious customers and any critical customers. From this
information, a report can be created with the information for
review by a credit department employee through credit management
portal 180 or some other event can be triggered in step 740.
[0048] Credit events can include credit limit exceeded, credit
master data changed, scoring changed, credit limit changed, and
external rating changed. Follow-up activities based upon credit
events include triggering internal workflows and triggering
external applications. The internal workflows can include calling
the customer or requesting a down payment or cash. The external
workflows can include locking the customer account by preventing
further orders or disabling services, disabling the credit,
creating a bill, or blacklisting the customer.
[0049] Although the preferred embodiments of the present invention
have been described and illustrated in detail, it will be evident
to those skilled in the art that various modifications and changes
may be made thereto without departing from the spirit and scope of
the invention as set forth in the appended claims and equivalents
thereof.
* * * * *