Incentive
Industry specific cover image
Compensation
Match, Manage & Motivate With OIC.
Presented By Indy Bains,
Incentive Compensation Solution Specialist.
Agenda
• Match, Manage & Motivate
• Oracle Incentive Compensation Background
• R12 Updates
• Demo Flow
– Plan Administration: Match
– Plan Execution: Manage
– Reporting: Are you Motivating?
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Incentive Management
Reporting
Create and
Maintain Oracle
Comp Plans
Incentive
Compensation
Collect
Data
Calculate
Payment
(Payroll, A/P,
Open API)
Transaction Source
(Oracle or
rd
3 Party System)
• Match sales compensation to your company objectives
• Manage incentive systems with greater efficiency & simplicity.
–Eliminate manual processes with increased speed and flexibility
–Validate and audit payments to improve accuracy
• Motivate reps through accurate and on time payments and reports
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Oracle Market Summary
#1 in EIM
500,000+ payees as of July 2006
(production)
• Global market leader in EIM
La Poste – 30,000 payees
British Telecom – monthly plans for 18,000 agents
Nordstrom – quarterly targets & goals for 15,000
managers; 40,000+ total payees
–
–
–
– 180+ live customers
– 500,000+ payees in production
• Flexible and Scalable
• Broad industry coverage incl.
400,000+ payees currently
implementing
–
Mfg/Tech, Retail, Telco, Fin Serv
–
JC Penney – 127,000
Best Buy – 90,000
• Global market momentum &
references
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Case Study: British Telecommunications
• 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 and 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
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British Telecom – Telecommunications
 Implementation details:
– Live on 11i (11.5.10)
– BT uses Siebel in the call centre and PeopleSoft for corporate
HR
– BT is compensating more than 18,000 employees and contract
staff including telesales staff, sales managers, call centre
managers and call centre directors
– Calculations are run daily; 3 million transactions a month
 Hardware Sizing
– 8 CPU box (HP)
– 24GB Memory
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JC Penney - Retail
 Implementation details:
– Live on 11i (11.5.10)
– JC Penney uses PeopleSoft HR, Payroll and Financials
– JC Penney have currently rolled out to around 20 stores as
pilot and will be rolling out to 1000 stores in the next 6 months.
– Around 35,000 store employees and managers will be
compensated bi-weekly and another 90,000 more will be paid
monthly/quarterly/annual bonus.
– Calculations during peak periods are 10 million transactions a
week
 Hardware Sizing
– 12 CPU box (IBM P5)
– 24GB Memory
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Analyst Recognition
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 has "achieved significant
scalability milestones in terms
of payees… & transactions…,
& demonstrated an ability to
support stand-alone projects"
as well as differentiating its
offering through its
"integration with other ebusiness applications".
Clients “should consider OIC
on their shortlists.”
Michael Dunne, Gartner, 2006
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R12 Updates
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Product History
R12:
11.5.8/9:

11.5.6/7:

11.5.3:


3i & prior:




Calculation
formulas
Incremental
calculation
Split
transactions
Mass
transaction
adjustments
1997





Collection
from Order
Management
Plan
assignment by
role
Calculation for
nonemployees
Compensation
groups
Integration
with Sales
Pay groups
Payment
Plans
2000
11.5.4/5:







Payables
integration
Income
planner
Collection
filters
Payment
hold
TBH
resources
Contract
authoring/ap
proval
Comp
Planning
reports
2001










Conversion to
HTML
Payroll integration
Multi-dimensional
rate tables
Interdependent
plan elements
Spreadsheet
import of
transactions
Seasonality
schedules
Workday calendar
Re-goal
Invoice splits
Transaction and
administration
reports
Analytical reports
2002






Collect
revenue
adjustments
Accumulation/
splits along
multidimensional
rate tables
Payment
administration
hierarchy
Manual
payment
adjustments
Payment
worksheet
history
Payment
signoff report
Import/export
of setups
2003
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11.5.10:

Mass update
of rules and
assignments

Sales force
reports for
performance
assessment
and payment
reconciliation



Projected
commissions
and quoting
integration
Flexible,
user-defined
credit
allocation
Integrated
territories
alignment
2004

Personalizable
and extensible
applications
framework

Role-based
business flows

360º view of
compensation
plan and
resources

Enhanced
auditing
capabilities

Multi-Org access
control

HR
Compensation
Workbench
integration

Task based plan
creation UI
2006
10
R12 Release Update
•
Superior ownership experience
–
–
–
–
•
Best application technology
–
–
–
•
Role based business flows
• Compensation Manager/Analyst
• Plan Administrator
• Incentive Compensation Administrator
• Self-Service Users and Managers
Top-Down plan creation and plan element
wizard
360º View of Resources and Plans
Enhanced auditing capability
Adaptive, Meta-data driven UI
XML-based reporting
Export to Excel
Total Compensation Visibility
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Plan Administration
(Match)
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Sales Credit Allocation Description
• Sales Credit Allocation assists in determining who the correct credit receivers
are and how much credit each should receive
Credit Rules
Credit Receivers
Transactions
Sales Credit & Territory Allocation
Rules Engine
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Sales Credit Allocation Benefits
– Define credit allocation rules appropriate to the business
– Apply credit allocation rules at any time during the life cycle of the
transaction
– Reduce the volume of crediting errors
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Sales Credit Allocation
How To Use This Feature
– Define Sales Credit Allocation (SCA) credit rules
– Create transactions
– Transfer transactions to SCA interface tables
– Run SCA Rules Engine
– Apply SCA results to transactions
Credit Rules
Transactions
Credit Receivers
Sales Credit & Territory Allocation
Rules Engine
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Plan Execution
(Manage)
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Reporting
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Incentive Management
Create and Maintain
Comp Plans
Collect Data &
Assign Credit
Calculate & Pay
Commissions
Reporting
• Match sales compensation to your company objectives
• Manage incentive systems with greater efficiency & simplicity.
–Eliminate manual processes
–Increase speed and flexibility
–Validate and audit payments to improve accuracy
• Motivate
Motivate consultants
reps through
through
accurate
accurate
and onand
time
onpayments
time payments
and and
reports
reports
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Incentive Compensation Value & ROI
Improved financial controls
• Improved regulatory compliance & financial predictability
• Reduced administration errors & over payments
• Improved accountability over incentive expenditure
"Our implementation of Oracle
Incentive compensation improved
accuracy, provided more control and
reduced interpretation and subjectivity
of compensation plans”
ADP Inc
Improved adaptability
• Improved time to market with new products & business initiatives
• Accelerated new fiscal year compensation rollouts
• Reduced incentive management staffing costs
"Our implementation of Oracle
Incentive compensation provided a
low cost of ownership with tight
integration to backend systems in a
global rollout”
Silicon Graphics
Improved alignment
• Optimized target distribution aligned with corporate goals
• Increased sales & channel partner productivity
• Full sales line of sight for focused sales execution
"Our implementation of Oracle
Incentive compensation improved call
center agents productivity with
alignment to corporate objectives.”
British Telecom PLC
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Thank You
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