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Enron Mail |
Thank you for keeping us in the loop on this. D&B data will become one of
our most important sources. As you suggest, the intent is to use this data along with other available date to generate a price for credit. The price will be published externally (likely for a fee and as a free service) via the web or via automated processes. Option 3 appears to be the best solution for us given our desire for as up to date data as possible. Stuart is working with the credit team to define additional data elements but the credit score and financial score are likely what we are looking for. Alternatively, if it is possible to obtain the actual data that is used to generate the score that would allow us to generate our own score in addition to D&B's. We will need the Global Failure Score as well. Currently we are active in Europe as well as the US and expect to move towards Asia and Austrailia over time. Hopefully, this data is available via D&B Connect. Another consideration is the term of contract. We would likely prefer a longer term contract so that if they decide they don't like what we are doing with the data, we cannot be cut off. Does it make sense from your perspective to approach D&B to be our long term, strategic providor of customer data. This would likely make their deal maker look good in his boss's eyes, give you lot's of negotiating ability and give a us the long term preferential contract that we are looking for. Let's discuss further. bryan Mary Solmonson 05/05/2000 19:25 To: John Sherriff/LON/ECT@ECT, Bryan Seyfried/LON/ECT@ECT cc: Philippe A Bibi/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Stuart Ffoulkes/LON/ECT@ECT Subject: Dun & Bradstreet Info for Credit Trading I have received preliminary information from D&B. I think several issues/questions have been raised that if explored, could result in a better solution for the money. Option 1 The update frequency for our current file can be improved from quarterly to monthly for a cost of $87,000 (USD) through March, 2001. Option 2 I wasn't sure what specific data in the file you might be interested in. If you are particularly interested in the Financial Stress Score and Credit Score, for example, there are multiple alternatives : 2a) Keep quartlery refresh of base data (party name, etc) and refresh scores that are added/changed on a monthly basis. Cost - $1.17(USD) per record. Note that there are 575,000 records in the file currently with financial and credit scores, making this potentially a very expensive alternative (575,000 X 1.17=$ 672,750). 2b) Batch or FTP updates of the financial and stress scores can only be provided monthly. D&B is working on a solution that would provide a weekly update to their customers in a batch or FTP manner, but has not committed to when this will be ready. Therefore, if more timely updates than monthly are desired, it is also possible to transactionally access records one at a time using D&B's software. The cost for this is extremely high at $10.52 (USD) per score. Option 3 D&B Connect Product. D&B Connect is a tool set of matching software, an externally validated reference file, credit and marketing information, and D&B services that enables the most effective integration of customer information and third-party information with D&B information. Only this type of process and information integration capability can facilitate and ensure accurate identification, linkage and maintenance of your customer's complete relationship. In addition, D&B Connect assures organizations of referential integrity by providing an automated and electronic link to D&B so that the most recent D&B information is always transmitted to your organization and updated within your local D&B Connect Reference File. D&B Connect is scalable. Cost Typically ranging from * Customer Access Module (CAM) Batch- - $25,000 * CAM Online - $50,000 * Full Information Integrator - $350,000 + data With more specifics as to your needs, this option should perhaps be pursued. Questions/Issues 1) D&B had questions regarding the use of their data and whether Enron customers would be offered this information for a fee or free. I explained that I did not feel the data would be offered directly to Enron customers, but that it would be used to support analysis that would be available externally via web site, etc. All pricing above is based upon this understanding. If I have not portrayed the usage correctly, it will be imperative to get a better understanding before final pricing can be negotiated. 2) Are there specific data elements that you are interested in ? Alternatives may vary by data element. Financial Stress Score and Credit Score reference above were explored as an example. 3) What is timeframe for needing a solution ? 4) Financial Stress Score and Credit Score are only available on U.S. companies. A comparable measure - Global Failure Score (the liklihood of default or bankruptcy) is available for international companies. This rating score however, is NOT currently available via a batch or FTP manner. This could result in additional cost if we wish to pursue obtaining this score in a batch manner. 5) Pricing also varies whether the information is to be used for credit analysis or risk management decisions versus for marketing purposes. This is probably negotiable as the data is the same. The thought process is that if the repository is used for credit or risk decisions, D&B will see decreased usage and revenue on a transactional basis by the credit departments. If you would like me to follow up further, please give me a call at 713-853-6079.
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