Emerging Markets Break-Out Emerging Markets Break-Out SessionSession

Kelly Forese, VP Ops and Applications

AppsDay April 8, 2005

Overview of IGN Overview of IGN EntertainmentEntertainment

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 NetworkIGN Entertainment NetworkGames. Gear. Movies. Music.

The Insider’s Choice for Xbox Information

The Latest Gaming News 24/7

Community and News for the RPG and MMO Gamer

The Universe’s Best Video Game Fan Sites

Covering 30,371 Games and Counting

Insight info the Gamer Audience

Multiplayer Gaming’s Home Page

Where it All Begins for 3D Gamesfor the PC

A Bazillion Critics, One Opinion

Download PC Games Direct to Your Hard Drive

Free Games, Downloads, Mods, Patches, Maps, Trailers, Demos and Betas

The Value to our CustomersThe Value to our Customers

Value-Add ServicesDeveloper / Publisher

User (e.g.: Gamer)

The Internet

Research and Develop

Educate and Inform

Acquire Product

Enhance Entertainment

Experience

Market and Promote

Distribute Product

Extend Product Lifecycle

Evaluate content

Why we were looking for a Why we were looking for a SolutionSolution

• Today: We’ve 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

RFP Overview – Who we RFP Overview – Who we consideredconsidered

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

Key Decision Factors:

Workflow Management Proposal to Cash&RevRec 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)

Why Oracle? ContinuedWhy 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.

Why Oracle? ContinuedWhy 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 PhasesProject 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