Successful Customers Select Oracle IT Telecom Retail Manuf

Successful Customers Select Oracle! IT Telecom Retail Manuf.

Oracle Incentive Compensation Brad Holzer Sue Guggenberger

Change Management Video

Themes for Today • OIC is BEST of BREED and ERP ü #1 product in install base and recognized as such by our customers, peers and analysts ü Native integration into current Oracle footprint ü Unmatched portfolio of customers • OIC has MEASURABLE ROI ü Revenue - Transactional Costs Overpayment costs estimated at 6% of commission spend (over $25 m). OIC reduces to 1% Deloitte benchmarking ü Compliance and controls ü Field Sales morale

Oracle Incentive Compensation Market #1 in Sales Incentive Compensation Management • #1 in number of customers live • Global market leader with: ü 250+ live customers ü 1, 150, 000+ payees in production chosen OIC: ü • 1, 150, 000+ payees in production 45% Stand Alone • Brand Name companies have Edward Jones; Dell; Yahoo; Cisco; EMC; Symantec; Liberty Mutual; Best Buy; Nordstrom; JC Penney. • Broad industry coverage incl. Mfg/Tech, Retail, Telco, Fin Serv • Global market momentum & references § British Telecom – monthly plans for 18, 000 agents § JC Penney – 517 of 1100 stores live § La Poste – 30, 000 payees § Nordstrom – quarterly targets & goals for 15, 000 managers; 40, 000+ total payees • 500, 000+ payees implementing § Best Buy – 90, 000 § Cisco – 13, 000 § Edward Jones – 10, 000 § JC Penney – 192, 000 § Liberty Mutual – 30, 000

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

Why an Oracle EIM Solution? • • • Sales Drives Your Company Align Sales Goals with Corp Strategy Need Central Control & Visibility Flexibility, Adaptable Simple Question…Complex Answer

Simple Question… Complex Answer A * B=C Who? Variable by Role? Eligibility? Variable By Resource? Periodicity? Corp Strategy? Tiered Rates? Draws? Proportional Calcs? Circular Calcs? Splits? Accelerators? Multipliers? f(x) = 2 x Standardization vs Flexibility? +1

Simple Answer… A * B=C

Oracle Incentive Compensation Resource Manager Employees Partners Resellers Vendors Agents Order Management Territory Mgr Resources Roles Groups Teams Quoting HR Comp Quotes Total Comp Territories ORACLE INCENTIVE COMPENSATION Orders Employees Receivables Invoices Billing Credits Payments Payroll Payables Resellers Vendors Partners Agents Collect, Calculate, Pay Discoverer & out-of-the-box Reports Commission Statements Performance Reports Year to Date Summary Administrative Reports + End User Layer Seeded Workbooks Siebel Business Analytics Compensation Data mart Role based Dashboards Flexible personalization

Powerful, Flexible Plan Design Plan Elements, Formulas & Calculations

Incentive Compensation Plan Structure Building Blocks Compensation Plan Elements Software Sales Eligible Products What? Formula Rate Table How? How Much?

Formula Components FORMULA Input Expressions Rate Table Results Output Expressions Red = Provided to Incentive Compensation Blue = Calculated by Incentive Compensation

Rate Dimensions Four types of Rate tables Amount: The rate dimension is defined in quantities. Multidimensional Rate Table Units Sold Commission % 1 -250 2 Revenue Amount Country Product 250 -500 4 0 – 250 USA Product X 500 -999999 6 250 - 9, 999 Japan Service Y Germany Percent: The rate dimension is defined in percentages. Percent of Quota Commission % 0 - 25 0 25 - 75 1 License Revenue Country Product Rate 75 - 100 3 0 – 250 USA Product X 1% 0 – 250 USA Service Y 5% 0 – 250 Japan Product X 1. 5% Expression: The rate dimension uses previously defined expressions. Percent of Target Commission % 0 – 250 Japan Service Y 4. 5% 0 - 0. 25 * ITD Target 5 0 – 250 Germany Product X 1. 25% 0. 25 * ITD Target - 0. 75 * ITD Target 10 0 – 250 Germany Service Y 6. 25% 0. 75 * ITD Target - Target 15 250 - 9, 999 USA Product X 4% 250 - 9, 999 USA Service Y 8% 250 - 9, 999 Japan Product X 4. 5% 250 - 9, 999 Japan Service Y 7. 5% 250 - 9, 999 Germany Product X 4. 25% 250 - 9, 999 Germany Service Y 9. 25% String: The rate dimension uses alphanumeric data. Country Commission % USA 5 Japan 4 Germany 7

Multi-Dimensional Table

Example Expression Builder Incentive Compensation

Simple Complex In English… If Transaction Type = Product Sales, then multiply Rate Table Rate x (Gross Profit + Rebate). Otherwise, multiply (Gross Profit + Rebate) x Rate Table Rate x 2.

Putting it all together… Input Expression “Quota Attainment” E. g. : 25% Output Expression Rate Table Results * Transaction Amount E. g. : 1%

Outbound Sales Representative Resource Roles Compensation Plan Lisa Jones Outbound Rep Computer Sales Rep Plan Elements Service Assembled Computers Standard Computers Eligible What? Products Eligible Products Formulas Rate Tables How? Formulas Rate How Much? Tables Eligible Products Formulas Rate Tables

Demo

Themes for Today • OIC is BEST of BREED and ERP ü #1 product in install base and recognized as such by our customers, peers and analysts ü Native integration into current Oracle footprint ü Unmatched portfolio of customers • OIC has MEASURABLE ROI ü Revenue - Transactional Costs Overpayment costs estimated at 6% of commission spend (over $25 m). OIC reduces to 1% Deloitte benchmarking ü Compliance and controls ü Field Sales morale

Q & A