Oracle Incentive Compensation

Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE&Turkey

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What is our goal?

Be clear!

Be quick!

Be helpful!

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Agenda

•OIC Market •Oracle Incentive Compensation Solution •OIC- powerful and flexible •Demo •Customer stories •Wrap-up and questions

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#1 in number of customers live

Oracle Incentive Compensation (OIC) Market

#1 in Sales Incentive Compensation Management

Global market leader with:

• 250+ live customers

• 1,150,000 payees in production

Brand Name companies have chosen chosen OIC:

• Cisco; EMC; Symantec; Liberty Mutual; Edward Jones; Best Buy; Nordstrom; JC Penney.

Broad industry coverage incl. Mfg/Tech, Retail, Telco, Fin Serv

Global market momentum & references

500,000+ payees implementing • MoneyGram – 300,000

• Cisco – 13,000

• Edward Jones – 10,000

• Liberty Mutual – 30,000

1,150,000+ payees in production • British Telecom – monthly plans for 18,000

agents

• JC Penney –1100 stores live, 192,000 payees

• La Poste – 30,000 payees

• Nordstrom – quarterly targets & goals for 15,000 managers; 40,000+ total payees

• Best Buy – 90,000 payees

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IT

Telecom

Retail

Manuf.

Successful Customers Select Oracle!

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Finance

Healthcare

Other

Successful Customers Select Oracle!

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Insurance customers

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“Oracle has managed to support clients with high scalability requirements in terms of number of payees (in the thousands) and transactions (more than 1 million per month).”

Clients “should consider OIC on their shortlists.”

Michael Dunne, Gartner, 2007

Oracle “best-of-breed enterprise class solution” has “ the advantage of offering a strong enterprise incentive compensation solution that [can be deployed as] part of a larger suite of functionality … [or] standalone”. Liz Herbert, Forrester, 2006

OIC Analyst Recognition

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Oracle Incentive Compensation Solution

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Oracle Incentive Compensation

Territory Mgr

Territories

Quoting

Quotes

ORACLE INCENTIVE COMPENSATION

Collect, Calculate, Pay

Resource Manager

Resources Roles Groups Teams

Employees Partners Resellers Vendors Agents

Order Management

Orders

Receivables

Invoices Billing

Payroll

Employees

Payables

Resellers Vendors Partners Agents

Discoverer & out-of-the-box Reports Commission Statements Performance Reports Year to Date Summary Administrative Reports + End User Layer Seeded Workbooks

Oracle Business Intelligence EE

Compensation Data mart Role based Dashboards Flexible personalization

HR Comp

Total Comp

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Design & communicate incentive programs that align with corporate strategy

Measure achievement against performance metrics

Reward sales & partner behavior

Analyze impact of incentive program on financial and sales goals

End-to-End Incentive Compensation

Design Analyze

Measure

Reward

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Designing Incentive Compensation

Analyze

Reward

Design Analyze

Measure

Reward

• Flexible compensation plan definition

• Role-based plan assignment

• Top-down plan creation and checklists

• Flexible expression builder & multi-dimensional rate tables

• Interdependent plan elements to support linked objectives

• What-if analysis

• 360-degree view of resource

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Measuring Behavior

• Collection of orders & invoices

• Out-of-the-box integration with Oracle Order Management and Oracle Accounts Receivables

• Open Interface for Transaction, Product, Customer, Quota imports

• Excel Imports

• Classification rules categorize transactions into relevant performance measures

• Flexible crediting rules & rollups

• Flexible, date-effective Territories

• Mass transaction & credit adjustments

Analyze

Reward

Design Analyze

Measure

Reward

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Rewarding Behavior

• Multi-threaded, scalable calculation process

• Retro-processing and incremental calculation

• Research Assistant

• Integrated payment process

• Out-of-the-box integration with Oracle Payroll and Accounts Payable

• Open Payment interface

• Draws, Recovery and Cap

• Payment Approval Hierarchy

• Complete Audit Trail

Analyze

Reward

Design Analyze

Measure

Reward

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Analyzing Compensation

• Standard out-of-the-box reports for tracking performance

• XML publisher for easy report modification and extensibility

• Oracle Discoverer End User Layer for ad-hoc reporting

• Sophisticated Analytic capabilities using Siebel Analytics

• Integration with Compensation Workbench for Total Comp Statement and Analysis

• Integration with Sales for Line of sight projections

Analyze

Reward

Design Analyze

Measure

Reward

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Legacy External Systems

Compensated Individuals

OIC Core Components

Legacy External Systems

Order Entry

Receivables

Billing

ORACLE INCENTIVE COMPENSATION

Collection Interface Tables

• Configurable data mappings

• Transformation & enrichment

• Post collection actions / filters

Calculation Engine

• Multi-threaded/Grid processing

• Retro active calculation

• Incremental calculation

Compensation Plans

• Complex formulas

• Flexible expression builder

• Link to external logic

• Linked objectives

• Multiple rate dimensions

• Date effective components

• Reusable components

• Currency conversion

Payroll

Payables

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It’s About The Ingredients...

The ingredients of Vegeta include: salt max. 56% dehydrated vegetables 15.5 % (carrot, parsnip, onions, celery, parsley leaves) flavour enhancers (monosodium glutamate max. 15%, disodium inosinate) sugar spices cornstarch riboflavin (for coloring)

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It’s About The Ingredients?

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Integration Points Provide Total Solution

Territory Alignment

Territories

Resource Modeling

Order Management

Orders

Receivables

Invoices

Reporting

HR Comp

Quoting

Projected Compensation

Discoverer XML Publisher

Business Analytics

BI Toolkit Flexible personalization

Resources Roles Groups Teams Total Comp

Performance Definition

EPB, BS

Payroll

Payables

Employees

Resellers Vendors Partners Agents

ORACLE INCENTIVE COMPENSATION

Design Analyze

Measure

Reward

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Legacy External Systems

Open Architecture for Easy Integration

Order Entry

Receivables

Billing

Legacy External Systems

Compensated Individuals

Payroll

Payables

ORACLE INCENTIVE COMPENSATION

Design Analyze

Measure

Reward

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� Complete end-to-end compensation solution from order to pay

� Integrated design, administration, & sales execution

� Total compensation visibility including both variable and non-variable pay

� Flexible design to adapt to complex plan requirements

� Open architecture for ease of integration with legacy & external systems

� Scalable, high performance rules engine

Enterprise solution … With best of breed capabilities …

OIC Solution Overview

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OIC Powerful and Flexible Plan Design

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Adaptability

Difficulty modifying comp plans based on strategy c hanges

Difficulty releasing comp plans quickly for new fis cal years & new product releases

High cost of administration of homegrown solutions

IT, Operations

Alignment

Sales targets don’t make sense with respect to broa der corporate objectives

Failure to consistently meet key performance target s… & really understand why

Selling channels under-motivated or performing

Sales, Executive

Financial Control Lack of control & visibility into large sums of cas h payouts for

incentive-based programs Fear of/actual loss of millions of dollars in overp ayment &

comp errors Inability to account for variable compensation effe ctiveness

Finance

Dec

isio

n M

aker

In

fluen

cer

Insurance Pain Points

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Oracle Incentive Compensation Process

Collect Data Allocate Credits

Adjust

Transactions

Calculate Earnings

Process Payments

Report

Ultimate Power Ultimate Power & & FlexibilityFlexibility

Collect Crediting Post Payment

Pay

Data Import for:

� Transactions

*Oracle Receivables

*Oracle Order Management

* External Systems

* Excel Files

�Products, Customers, Quotas

Determine who should get “credit” for a given transaction

Determine how much credit should be given

XML enabled reports for easier report extensibility using (XML Publisher)

Oracle Discoverer End User Layer available for adhoc reporting

Load

Manual Transaction Adjustments

Mass Adjustment of Transactions

Order/Invoice Credit Split Adjustments

Excel Upload of Adjustments

Classify transactions

Roll Credits up the compensation hierarchy

Identify plan elements

Determine earnings based on Plan

Update Balances

Trial Payments – Apply Draws/Caps

Approve & Finalize Payments

Export Payments to Oracle Payroll or Payables

Create payment file for external systems

Classify

Rollup

Populate

Calculate

Update Balance

Transaction Adjustments

Report Calculate

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What do we PAY on?

Revenue Classes

Revenue Classes Hierarchy

Targets

Plan Elements

How much do they EARN?

Input Expressions

Rate Tables

RT Dimensions

Output Expressions

Formules

WHO is eligible?

Sales force

Sales Roles

Sales Organization

WHEN do we PAY?

Payment Groups

Payment Plans

Compensation Plans

Classification Rules

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Resource Resource

Roles Roles

Compensation Plan Compensation Plan

Plan Elements Plan Elements

Assembled Computers Assembled Computers

Standard Computers Standard Computers

Lisa Jones

Computer Sales Rep

Sales Group Sales Group

Industry Accounts Computer Sales Rep FY06

Incentive Compensation Computer Sales Representative

Service Service

MBO MBO

Eligible Products

Eligible Products Formulas Formulas Rate

Tables

Rate Tables

Eligible Products

Eligible Products Formulas Formulas Rate

Tables

Rate Tables

… …

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Demo 1

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Customer stories

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Business • Boston-based Liberty Mutual Group (LMG) is a leading global

insurer and sixth largest property and casualty insurer in the U.S. The Company ranks 102nd on the Fortune 500 list of largest corporations in the United States based on 2005 revenue.

Oracle Applications • Live on Oracle HR

Business Problem • Implement Incentive Compensation system for captive agents.

Why Oracle? • Demonstrated fulfillment of requirements through proof-of-concepts,

Strategic Partnership with Deloitte and Touche

Liberty Mutual

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Business • Edward Jones provides financial services for over 7 million

individual investors through 10,000+ investment representatives in the United States, Canada, the United Kingdom.

Oracle Applications • Live on Live on Peoplesoft HR & Peoplesoft Financials

Business Problem • Replace legacy mainframe incentive compensation system with web

based application that can handle current business and future growth

Why Oracle? • Low risk, good value, strong relationship, scalable technology

Edward Jones

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British Telecom Multi £Billion provider of European telecommunications services

BT wanted an easy to use ICM system that would: • Enable rapid changes of plan metrics • Handle many different factors contributing to compensation • Provide daily information to compensated individuals

Implementation details • Live on 11.5.10 • Deployed standalone, with Siebel Call Centre, PeopleSoft HR • Compensating 16,000+ employees and contract staff including telesales staff, sales

managers, call centre managers and call centre directors • Calculations run daily; 3 million transactions a month

Key benefits • Flexibility of the system for handling complex plans • Easy to add in a new plan element • Full audit trail of compensation • Improved cost of ownership with increased performance

Wrap-up and questions

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Build Buy

� Research users’ needs

� Design & code custom incentive plans

� Design & code custom data & application integrations

� Design & code custom reports for each audience

� Set up & maintain security

� Perform QA & performance testing

� Perform ongoing upgrades & modifications

� Manage for processing & payment errors

� Perform ongoing code extensions to support plan changes

� Deliver test & production rollout

Time

Res

ourc

es

� Configure incentive plans

� Deliver test & production rollout

� Faster and easier to rollout plan changes

� No risk in adding new plans and more payees

� More accuracy of payments

� Easier administration and maintenance for IT

Delivers ROI in less than one year*

* Giga

Advantages of Packaged Solution

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Thank you!

Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE& Turkey