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Cypress Semiconductor Corporation makes high-performance, programmable integrated circuits that provide its customers with fast time to market and exceptional system value. Cypress offerings include its flagship PSoC® programmable system-on-chip families and derivatives, such as its CapSense® touch sensing and TrueTouch® solutions for touchscreens. Cypress is a leader in USB controllers, including the high-performance West Bridge® solution that enhances connectivity and performance in multimedia handsets. Cypress is also a leader in high-performance memories and programmable timing devices. The company serves numerous markets, including consumer, mobile handsets, computation, data communications, automotive, industrial, and military.
In recent years, Cypress experienced rapid growth in its channel business, which by 2012 accounted for 70% of the company’s revenue. Cypress had been relying on a legacy environment characterized by disparate applications, customized integrations, and many manual processes. The system was reaching its scalability limits.
Cypress launched a multiphased initiative to create a comprehensive and integrated channel revenue management system that would support a complex distribution model and expanding channel business, enable the company to reduce profit leaks, and facilitate reporting and compliance initiatives. It selected Oracle E-Business Suite applications, including Oracle Channel Revenue Management, as the foundation for the new environment.
Since deploying the solution, Cypress has achieved several important milestones. It expanded end-to-end visibility of channel-generated revenue, reduced profit leaks, and improved operational performance with its partners. As important, it condensed the weekly claims payment cycle by 71%, improving working capital of the company’s distribution partners and strengthening relationships with them. It also improved weekly revenue point-of-sale (POS) processing cycle time by 50%.
Cypress had a strong Oracle E-Business Suite foundation, as well as existing Hyperion applications. It looked to extend the value of its investment in Oracle by expanding its footprint and wanted to leverage Oracle’s out-of-the-box integrations to reduce IT complexity.
Cypress Semiconductor’s trade management initiative has included several phases, beginning with an initiative to standardize order entry and inventory processes using out of the box functionality. It then turned its attention to creating a foundation for standardizing pricing on the order entry platform to enable end-customer pricing.
The company moved forward with Oracle Channel Revenue Management as the core of its trade management environment, and then undertook an initiative to link front-end and back-end processes with Oracle CRM On Demand.
Cypress completed the revenue management initiative on budget, on time, and to a level that exceeded the company’s business requirements.