2009 08 25_business value of upgrading to oracle e-business suite contracts release 12.1

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Business Value of Upgrading to Oracle E-Business Suite Contract Lifecycle ManagementRelease 12 and 12.1

Susan FlierlProduct Strategy Director

2The above reflects Oracle’s current development plans which are subject to change at any time

• Release 12.1: Delivering Value in Uncertain Times

• Key Business Challenges• Oracle Contract Lifecycle Management• Business Value of Release 12 & 12.1

– Contract Management– Sales Contracts– Procurement Contracts– Service Contracts

• Summary • Q&A

Agenda

3

R12.1 Delivering Value in Uncertain Times

Focus on Opportunities to Focus on Opportunities to AchieveAchieve Rapid Return Rapid Return TodayToday

Invest in Ways to Invest in Ways to Standardize and Standardize and Simplify Simplify with a Global Business with a Global Business PlatformPlatform

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Expand oversight over all business contracts What’s New in Contract Lifecycle Management

Supply Chain

ApplicationsTechnology

E-Business Suite

Results:More legal bandwidth for strategic dealsVisibility to all contract obligations, internal and external Assess commercial and legal opportunity and risk

Procurement

Financials Financials & Projects& Projects

HumanCapital

Customer &Master DataManagement

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Sell-SideSell-Side

CustomersSuppliersPurchase Contract

Sales Contract

v.2v.1

Sales

Delivery / Fulfillment SupportService

Purchasing

Legal Finance

Operational Challenges

Buy-SideBuy-Side

Business owners lack visibility to

signed contracts

Contract Administration

Sequential work processes lengthen

negotiation cycle time

Lack of contract visibility leads to “evergreen”

contracts, overpayments and payment errors

Manual document handling creates multiple “out of synch” versions

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• WHAT – A family of contract applications designed to author and manage the lifecycle of all contract types

• HOW – Deployed integrated with order-to-cash and procure-to-pay flows or as independent application

• RESULTS - Improve visibility of all business agreements, reduce contract cycle time, and manage risks

Contract Repository (Oracle Contract Management*)

Project Contracts

Service Contracts

Sales Contracts

Procurement Contracts

Oracle Contract Lifecycle ManagementOverview

*Separate product coming soon

Contract Terms Library

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Contract Visibility

• Clause Library• Contract Templates

• Selection Rules• Policies

• Cancellation / Renewal Rate

ContractingParty

Email

Contract Standardization

Internet

Integrated Intelligence

Phone

• ContractBookings

Service

Procurement

Legal

Sales

Finance &Accounting

• Workflow Approvals• Change Mgmt• Collaborative Authoring

Contract Lifecycle

Secure AccessSecure Secure AccessAccess

Oracle Contracts SolutionBusiness Process Overview

• Uplift & Reduction

SupportNegotiate& AuthorNegotiate& Author

Approve & Sign

Approve & Sign

Enforce & EntitleEnforce & Entitle AmendAmend

Optimize, Renew &Terminate

Optimize, Renew &Terminate

• Contract Workbench

• Enterprise Contract Search

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Contract Management


Sales Contracts

Service Contracts

Project Contracts

Oracle’s Contract Management provides a comprehensive solution to manage your entire enterprise’s contract lifecycle from contract drafting, negotiation, approval, storing and repository, compliance

and renewals through contract optimization.

Oracle Contract Lifecycle Management

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R12.1 Oracle Contract Management

SUPPORT GLOBAL CONTRACT ORGANIZATIONSingle contract authoring tool with Repository ContractsSupport global contract administration with Multi-Org Access ControlImprove contract administration with Contract Workbench

ACCELERATE CONTRACT CYCLE TIMEAutomate contract drafting with Contract ExpertStandardize terms and conditions with Contract Templates and Terms Library IntegrationStreamline edits and redlining with MS Word Synchronization

DRIVE CONTRACT COMPLIANCEReduce policy deviations with Contract Deviation ReportImprove contract visibility with Enterprise Contracts Search

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4. Monitor and Track

• Clause library • Contract templates• Clause selection

rules

1. EstablishStandards

• Associate to business document

• Real-time deliverable tracking

• Full-text search with Enterprise Contract Search

2. Author & Negotiate

• Contract Terms Library Integration (Templates &

Clauses)• Contract Expert

• MS Word Synchronization

6. Renew& Closeout

• Expiration alerts• One-click renegotiation• Standardized closeout

process

Structured authoring in Contract RepositoryBusiness Process

• Collaborative revision process

• Amendment approval flow• Auditable revision history

5. Amend

• Online collaboration• Flexible AME approval

workflow• Contract Standards and

Deviations

3. Approve and Sign

* New in R12.1

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Comprehensive Authoring PoliciesEstablish Control and Reduce Risk

Contract Creation Policies

Contract Creation Policies

Edit & Approval Policies

Edit & Approval Policies

• Automatic application of all relevant clauses and deliverables

• Access control by business unit and

document type• Standard section

use enforcement

• Mandatory clause enforcement

• Role-based change control

• Pre-approved alternate clauses

• Incompatible clauses• Automatic contract

validation

• Standard layout by business unit and

document type• Flexible approval

hierarchy• Exceptions flagging

for legal review• Automated

numbering formats

Document Generation Policies

Document Generation Policies

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Contract Authoring

13

No

IndustrySegment?

Yes

Add Clauses• High Value

• Insurance

Over $50k?

CommercialGovernment

Responses Drive Responses Drive Clause SelectionClause Selection

.

.

.

Template

Contract

Contract

Draft

Authoring with “Contract Expert”Produce Compliant Contracts

• Configurable rulesdrive terms selectionfor complex contracts

• Clauses default based on product, supplier, contract value, etc.

• Author high quality contracts with minimal

legal supervision

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Legal External Company

Automated MS Word SynchronizationQuickly and Accurately Integrate Offline Redline Edits into Contracts

Contract Administrator

Synchronize

Legal Review

External Acceptance

Download

• Streamline internal and external collaboration and

by allowing key stakeholders to be involved

in the contract review process

• Improve contracting efficiency while reducing effort

• Minimize errors and risk from manual updates

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Generate Deviations Report

• Accelerate approval cycles by highlighting changes to corporate standards

• Route approvals based on existence of non-standard terms

• View redline comparisons of modified terms to standard

• View business terms deviations

• Export deviations report to MSWord

Contract Deviation ReportIncrease compliance and expedite Approvals

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Contract Standard DeviationsCapture Clause & Policy Deviations

Contract Terms Library

ContractTermsLibrary

ContractTermsLibrary

Policy DeviationsClause Deviations

• Improved corporate policy compliance• Enhanced visibility to policy exception

• Reduced occurrence of business policy violation

• Commercial terms• Responses to questions• User-defined variable

values

Establish Standards Capture Deviations

• Standard contract templates

• Policy deviation rules

• Non-standard clauses• Additions, deletions &

section modifications• Excluded expert-suggested clauses

Identify: Identify violations based on:Establish:

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Enterprise Contracts SearchOracle Secure Enterprise Search

Searched documents• Contracts• Contract documents• Terms• Attachments

Structured criteria • Contract number• Contract name• Supplier/customer/party name• Contract status• Start date and End date

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Applicable to• Contract Management• Sales Contracts• Procurement Contracts

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Search Contract Text Drill Directly into Source Contract Data

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Contract Management


Sales Contracts

Service Contracts

Project Contracts

Oracle Sales and Procurement Contracts standardize contracts and ensure contract compliance while accelerating cycle-time in

support of centralized contract organizations within your enterprise.


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2. Author & Negotiate

4. Monitor and Track

6. Renew& Closeout

• Collaborative revision process

• Amendment approval flow• Auditable revision history

• Expiration alerts• One-click renegotiation

• Standardized closeout process

• Central terms library • Workflow configuration

• Clause selection rules

• Templates & role-based authoring

• Substitute & non-std clauses• Supplier paper

• MS Word Synchronization

• Online collaboration• Flexible approval workflow

• Electronic & digital signature

1. EstablishStandards

• Contract Workbench• Terms implementation

• Real-time deliverable tracking• Full-text search with

Enterprise Contract Search• Clause Usage Analysis

Oracle Procurement Contracts Process FlowStandardize Terms, Accelerate Negotiation, Drive Compliance

5. Amend

3. Approve and Sign

•Contract Deviation Report

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R12.1 Oracle Procurement Contracts

SUPPORT GLOBAL CONTRACT ORGANIZATIONSupport global contract administration with Multi-Org Access ControlImprove procurement contract administration with Procurement Contracts WorkbenchImprove procurement contract visibility with Enterprise Contracts SearchFaster review and payment for complex contract payment with Deliverable Payment Holds

ACCELERATE CONTRACT CYCLE TIMEStreamline edits and redlining with MS Word SynchronizationAccelerate contract negotiation with Contract Terms as Attached DocumentExpedite clause and template approval with Approve Contract Template and Clauses in Single Step

DRIVE CONTRACT COMPLIANCEReduce policy deviations with Contract Deviation ReportAssess risk and enforce compliance with Clause Usage AnalysisAuthenticate contract signatures with Enhanced Electronic Signature Process

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Clause Usage AnalysisSearch Contracts To Analyze Clause Usage & Modification

• Improved legal discovery on contracts across multiple organizations• Better insight into effectiveness of current standard language usage

• Enhanced visibility into contract standards requiring revision

Quickly determine Quickly determine number of incidentsnumber of incidents

Identify and view Identify and view contracts with noncontracts with non--standard clausesstandard clauses

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Deliverable Payment HoldsCapabilities and Benefits

• Oracle Procurement Contract will display a new Region of “Initiate Payment Hold”

• Payment holds may be set based on days prior to due date, and when deliverable is overdue

• Available for Contractual DeliverablesBenefits• PO Deliverables maintained in Oracle Purchasing will be used

to track deliverables like insurance and certification requirements.

• Users will have the ability to initiate payment holds on all future invoices when a deliverable approaches its due date or when a deliverable becomes overdue.

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24

Draft Sales Agreements

Capture Products and Pricing

Apply Terms & Conditions

Copy standard T’s & C’s, add default articles

Modify Contract

•Change product/ price, add non-standard articles

•MS Word Synchronization

Negotiate Commitment

Capture commits, start/end dates

Preview Contract

Review on-line or print

Generate Sales Order

Release against/ order from sales

agreement

Monitor Compliance

•Clause Usage Analysis •Full-text search with Enterprise Contract Search

Submit for Approval

• Internal/external approvals• Contract Deviation Report

Execute Contract

Sign, record and notify

Manage Performance

Identify, escalate, resolve issues

Oracle Sales Contracts Process FlowAssociate terms & conditions on quotes, sales agreements or sales orders

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R12.1 Oracle Sales Contracts

ACCELERATE SALES CYCLEStreamline edits and redlining with MS Word SynchronizationTailored sales contract creation on Web Store with Contract Expert for iStore

SUPPORT GLOBAL CONTRACT ORGANIZATION Support global contract administration with Multi-Org Access ControlImprove sales contract administration with Sales Contracts WorkbenchImprove sales contract visibility with Enterprise Contracts Search

DRIVE CONTRACT COMPLIANCEReduce policy deviations with Contract Deviation ReportAssess risk and enforce compliance with Clause Usage AnalysisIncrease contract awareness and usage with Access Contracts from Oracle Sales

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• Collaborative sales/contract administration work teams

• Role based access

Contract

Sales Sales RepRep

Contract Contract AdminAdmin

++

Contract Process Fused with Sales Process

Quote /Sales Order

Terms & Conditions

Sales Contract WorkbenchImprove Contract Administration

WorkbenchWorkbench

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Contract Management


Sales Contracts

Service Contracts

Oracle Service Contracts provides a complete contract authoring,pricing, flexible billing and execution system to manage warranties and extended warrantees, usage and subscription-based services,

as well as complex service agreements within your enterprise.


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Oracle Service Contracts Solution

CustomerCustomer

Service Provider / Product Manufacturer

Sales

Service

Contract Mgr

• AR, Invoicing• OM, Quoting

• Service• Install Base

OtherApplication

Components

Entitlements

Entitlements

OrdersOrders

T&CsT&Cs

ServiceContractsRepository R

enew

CreateContract

ProvideService

VerifyEntitlement

DefineCoverage

Bill &Collect

IntegrationReturns, RMAs

Proposals, Quotes1

Products & WarrantiesSubscription,Usage Agmts

2

Bill & Invoice3

Service Requests4

Renewal Notifications5

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Streamline Renewals ManagementPredictably Protect and Grow Recurring Revenue

Expiration

Alert Create

Opportunity

NegotiateQuote

Renew /

Activate

• Credit Status = OK• Contract > Threshold

Value Value• Expire days < 30

Renewal Rule New Contract

• Update Contract• Notify Sales /

Service Rep• Notify Customer

High Volume Electronic Renewals• Automatically renew contracts based on

pre-defined rules to maximize retention rates and ensure service continuity

• Zero-touch web based process automatically renews low value contracts upon expiration

High Value Renewals• Receive automated expiration alert

• Convert expiring contracts into sales opportunities• Evaluate complementary products / services

for cross-sell & up-sell opportunities• View transaction and interaction history

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Release R12.1: Oracle Service Contracts

UPLIFT SERVICE REVENUEImproved renewal rate analysisFaster renewal cycle timesVisibility into renewal contract status

STREAMLINE CONTRACT ADMINISTRATIONSupport global contract organizationStreamline customer interactionsImprove service contract visibility when managing customer’s assets

INCREASE COMPLIANCEComply with revenue recognition standardsComply with security standardsStandardized warranty coverage

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Uplift Service Revenue

More granular tracking of cancellation rates & reasons in Service Intelligence

Line Level Cancellation

Improve visibility to lost opportunity when lines get canceled

Improves process efficiencySales managers can easily track progress of renewals

Flexible Approval Rules, Flexible

Assignment Rules for Customer

Communication Templates, Negotiation Workflow

Lack of visibility into renewal progress

Centralized management of renewals prevents revenue leakage Salesreps can perform multiple follow-up actions on renewals

HTML Administrator Workbench

Replace spreadsheets, complex forms and manual processes to manage renewals

BenefitR12 ProvidesMarket Need

• Improved renewal rate analysis• Faster renewal cycle times• Visibility into renewal contract status

Business Business ValueValue

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Administrator Workbench

Quick Search for new and renewal contracts

Displays your open contracts

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Increase Compliance

Easy to roll out policy changesBetter performance – Authoring, Copy & Renewal

Standard Coverage

Quickly implement policy changes to standard coverage

Credit Card data consolidated & encryptedSelect existing card or create card

Credit Card Security

Comply with PCI security standards

Daily rate recognition for service spanning partial calendar periods

Partial Period Revenue Recognition

Daily rate / partial period recognition

Customers decide how partial periods are calculatedFixed or Actual days in a periodCan align periods to calendar month

Partial Period Calculations

Consistent calculations for partial periods



• Comply with revenue recognition standards• Comply with security standards• Standardized warranty coverage

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Streamline Contract Administration

Customer sees both new & renewal contracts in Online Acceptance PortalFewer requests for assistanceUpload PO or attachment Improved payment optionsSelf-service password mgmt

Enhanced Customer

Acceptance Portal

Improve customer experience and streamline acceptance process

Preview impacted contracts when updating products

Both Service and UsageEliminate unexpected service credits and changes to coverage

View Impacted Contracts in IB

Prevent unexpected service credits & changes to contract coverage when updating IB

Author contracts in multiple OUsProvide operating unit security

Multi-Org Access Control

Streamline Shared Service operations


• Support global contract organization• Streamline customer interactions• Improve service contract visibility when

managing customer’s assets


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• Description– Supports Import for

• Fully billed/unbilled Service• Warranty & Extended Warranty• Intangible Subscription Contracts

– From legacy systems or 3rd Party applications

• Benefits– Support heterogeneous systems

Service Contract Import Program


• Administer contracts centrally to drive revenue and savings opportunities

• Expand reach of legal/contract administration to increase competitive advantage

• Ensure compliance by increasing contract oversight and visibility

SummaryBusiness Benefits in Release R12.1


Product [email protected]: Sales and Service

Contracts, Contract [email protected]: Procurement Contracts,

Contract Management

Product [email protected]@oracle.com

Contacts

3838

Additional Resources

• For more release information on MetaLink• https://metalink.oracle.com/metalink/plsql/ml2_documents.showDocu

ment?p_database_id=NOT&p_id=403259.1• For more information about Oracle Applications

• http://www.oracle.com/applications/home.html• For more information about Education

• http://www.oracle.com/education/index.html• For more information about Support

• http://www.oracle.com/support/• For MetaLink information

• http://metalink.oracle.com/• For Oracle Product documentation:

• http://www.oracle.com/technology/documentation/applications.html

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