Oracle Incentive Compensation

Cosmin Dodoc-Marina
HCM Principal Sales Consultant SEE&Turkey
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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 Oracle Incentive Compensation (OIC) Market

#1 in Sales Incentive Compensation #1 in number of customers live

Management
Global market leader with:

250+ live customers

1,150,000 payees in production

Brand Name companies have chosen 1,150,000+ payees in production

chosen OIC:
Cisco; EMC; Symantec; Liberty
Mutual; Edward Jones; Best
Buy; Nordstrom; JC Penney.
Broad industry coverage incl.
Mfg/Tech, Retail, Telco, Fin Serv
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

Global market momentum &

500,000+ payees implementing
MoneyGram 300,000
references
Cisco 13,000
Edward Jones 10,000
Liberty Mutual 30,000

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 Successful Customers Select Oracle!

IT

Telecom

Retail

Manuf.

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 Successful Customers Select Oracle!

Finance

Healthcare

Other

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Insurance customers

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OIC 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

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

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Oracle Incentive Compensation Solution

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 Oracle Incentive Compensation
Resource Manager Territory Mgr Quoting HR Comp

Employees
Resources
Partners
Roles
Resellers
Groups
Vendors
Teams
Agents Territories Quotes Total Comp

Order Management ORACLE INCENTIVE COMPENSATION Payroll

Orders Employees

Receivables Payables
Invoices Resellers
Billing Vendors
Collect, Calculate, Pay Partners
Agents

Discoverer & out-of-the-box Reports Oracle Business Intelligence EE

Commission Statements
Performance Reports Compensation Data mart
Year to Date Summary Role based Dashboards
Administrative Reports Flexible personalization
+ End User Layer
Seeded Workbooks

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 End-to-End Incentive Compensation

Design & communicate incentive

programs that align with
corporate strategy
Analyze
Design
Measure achievement against
performance metrics

Reward sales & partner behavior

Reward
Analyze impact of incentive
Measure program on financial and sales
goals

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Designing Incentive Compensation
Analyze
Design

Flexible compensation plan

definition Reward

Measure
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
Analyze
Design
Out-of-the-box integration
with Oracle Order
Management and Oracle Reward
Accounts Receivables Measure

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

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Rewarding Behavior
Analyze
Design

Multi-threaded, scalable
calculation process Reward

Retro-processing and Measure

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

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Analyzing Compensation
Analyze
Design
Standard out-of-the-box
reports for tracking
performance Reward
Measure
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

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 OIC Core Components
Legacy ORACLE INCENTIVE COMPENSATION Legacy
External External
Systems Systems

Collection Calculation Engine

Order Entry Interface Tables Payroll

Configurable data mappings Multi-threaded/Grid processing

Transformation & enrichment Retro active calculation
Post collection actions / filters Incremental calculation
Payables
Receivables

Complex formulas Date effective

components
Flexible expression builder
Compensation Reusable components
Billing Plans Link to external logic
Currency conversion
Linked objectives
Multiple rate dimensions Compensated
Individuals

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 Its 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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Its About The Ingredients?

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Integration Points Provide Total Solution

Performance Resource Territory HR Comp

Definition Modeling Alignment
Resources
Roles
Groups
EPB, BS Teams Territories Total Comp

Order Management ORACLE INCENTIVE COMPENSATION Payroll

Analyze
Design Employees
Orders

Payables
Receivables

Reward Resellers
Vendors
Measure Partners
Invoices Agents

Reporting Quoting Business

Analytics

Discoverer Projected BI Toolkit

XML Publisher Compensation Flexible personalization

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Open Architecture for Easy Integration

Legacy Legacy
External External
Systems Systems

ORACLE INCENTIVE COMPENSATION

Order Entry Payroll

Analyze
Design

Reward Payables
Receivables
Measure

Billing

Compensated
Individuals

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 OIC Solution Overview
Enterprise solution

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
With best of breed
capabilities

Flexible design to adapt to
complex plan requirements

Open architecture for ease of
integration with legacy & external
systems

Scalable, high performance rules
engine
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OIC Powerful and Flexible Plan Design

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 Insurance Pain Points

Financial Control
Decision Maker

Lack of control & visibility into large sums of cash payouts for
incentive-based programs
Finance Fear of/actual loss of millions of dollars in overpayment &
comp errors
Inability to account for variable compensation effectiveness

Adaptability
Difficulty modifying comp plans based on strategy changes
IT,
Difficulty releasing comp plans quickly for new fiscal years &
Operations new product releases
High cost of administration of homegrown solutions

Alignment
Influencer

Sales targets dont make sense with respect to broader

Sales, corporate objectives
Executive Failure to consistently meet key performance targets & really
understand why
Selling channels under-motivated or performing

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 Oracle Incentive Compensation Process
Adjust
Allocate Calculate Process
Collect Data Report
Credits Earnings Payments
Transactions
Manual Transaction Classify transactions XML enabled
Data Import for: Determine who Trial Payments
should get credit Adjustments Roll Credits up the Apply Draws/Caps reports for easier
 Transactions report extensibility
for a given Mass Adjustment of compensation
*Oracle Receivables Approve & Finalize using (XML
transaction Transactions hierarchy
Payments Publisher)
*Oracle Order Determine how Identify plan
Management Order/Invoice Export Payments to
much credit should Credit Split elements Oracle Discoverer
Oracle Payroll or End User Layer
* External Systems be given Adjustments Determine earnings Payables available for adhoc
* Excel Files based on Plan
Excel Upload of Create payment file reporting
Products, Adjustments Update Balances for external systems
Customers, Quotas

Calculate
Collect Crediting Transaction Post Payment Report
Classify
Adjustments
Rollup

Populate
Load
Pay
Calculate

Update
Balance

Ultimate Power & Flexibility 24

 WHEN do we How much do they What do we
WHO is eligible?
PAY? EARN? PAY on?

Payment Groups Input Expressions

Output Expressions
Classification
Rules
Rate Tables
Payment Plans

RT Dimensions
Sales Roles Formules

Targets
Revenue Classes
Sales force
Plan Elements

Sales Organization Compensation

Revenue Classes
Plans
Hierarchy

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 Incentive Compensation
Computer Sales Representative

Resource
Resource Lisa Jones

Sales
SalesGroup Roles
Group Roles Computer Sales Rep
Industry Accounts
Compensation
CompensationPlan
Plan Computer Sales Rep FY06

Plan
PlanElements
Elements

Assembled
AssembledComputers
Computers MBO
MBO

Standard Computers Service

Standard Computers Service

Eligible Rate Eligible Rate

Eligible Formulas Rate Eligible Formulas Rate
Products Formulas Tables Products Formulas Tables
Products Tables Products Tables

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Demo 1

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Customer stories

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 Liberty Mutual

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

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Edward Jones

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

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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

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Wrap-up and questions
Advantages of Packaged Solution

Buy Build

Research users needs

Delivers ROI
Design & code custom incentive plans
in less than
Design & code custom data &
one year* application integrations

Design & code custom reports for each
Resources

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
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
* Giga

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Thank you!

Cosmin Dodoc-Marina
HCM Principal Sales Consultant SEE& Turkey

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