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Oracle Incentive Compensation

Cosmin Dodoc-Marina
HCM Principal Sales Consultant SEE&Turkey

What is our goal?


Be clear!
Be quick!
Be helpful!

Agenda

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

Oracle Incentive Compensation (OIC) Market


#1 in Sales Incentive Compensation
Management

#1 in number of customers live

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.

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

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
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Successful Customers Select Oracle!

IT

Telecom

Retail

Manuf.

Successful Customers Select Oracle!

Finance

Healthcare

Other

Insurance customers

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

Oracle Incentive Compensation Solution

Oracle Incentive Compensation


Resource Manager
Employees
Partners
Resellers
Vendors
Agents

Order Management

Territory Mgr

Quoting

HR Comp

Quotes

Total Comp

Resources
Roles
Groups
Teams
Territories

ORACLE INCENTIVE COMPENSATION

Orders

Employees

Receivables
Invoices
Billing

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

Oracle Business Intelligence EE


Compensation Data mart
Role based Dashboards
Flexible personalization

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End-to-End Incentive Compensation

Analyze

Design & communicate incentive


programs that align with
corporate strategy
Design

Measure achievement against


performance metrics
Reward sales & partner behavior
Reward
Measure

Analyze impact of incentive


program on financial and sales
goals

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Designing Incentive Compensation


Analyze

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

Design

Reward
Measure

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Measuring Behavior

Collection of orders & invoices


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

Analyze

Design

Reward
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

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

Design

Reward
Measure

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Analyzing Compensation
Analyze

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

Design

Reward
Measure

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OIC Core Components


Legacy
External
Systems

ORACLE INCENTIVE COMPENSATION

Collection
Interface Tables

Order Entry

Legacy
External
Systems

Calculation Engine
Payroll

Configurable data mappings

Multi-threaded/Grid processing

Transformation & enrichment

Retro active calculation

Post collection actions / filters

Incremental calculation

Receivables

Payables

Complex formulas

Billing

Compensation
Plans

Date effective
components
Flexible expression builder
Reusable components
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
Definition

Resource
Modeling
Resources
Roles
Groups
Teams

EPB, BS

Order Management

Territory
Alignment

HR Comp

Territories

Total Comp

ORACLE INCENTIVE COMPENSATION


Analyze

Design

Orders

Payroll

Employees

Payables

Receivables

Reward

Resellers
Vendors
Partners
Agents

Measure
Invoices

Reporting

Discoverer
XML Publisher

Quoting

Business
Analytics

Projected
Compensation

BI Toolkit
Flexible personalization

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Open Architecture for Easy Integration

Legacy
External
Systems

Legacy
External
Systems

ORACLE INCENTIVE COMPENSATION


Order Entry

Payroll

Analyze

Receivables

Design

Payables

Reward
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 nonvariable 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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Decision Maker

Insurance Pain Points

Finance

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

IT,
Operations

Difficulty modifying comp plans based on strategy changes


Difficulty releasing comp plans quickly for new fiscal years &
new product releases

Influencer

High cost of administration of homegrown solutions


Alignment

Sales,
Executive

Sales targets dont make sense with respect to broader


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

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Oracle Incentive Compensation Process


Collect Data
Data Import for:
 Transactions
*Oracle Receivables
*Oracle Order
Management
* External Systems

Allocate
Credits

Transactions

Determine who
should get credit
for a given
transaction

Manual Transaction
Adjustments

Determine how
much credit should
be given

Order/Invoice
Credit Split
Adjustments

* Excel Files

Mass Adjustment of
Transactions

Excel Upload of
Adjustments

Products,
Customers, Quotas

Collect

Adjust

Calculate
Earnings
Classify transactions
Roll Credits up the
compensation
hierarchy
Identify plan
elements
Determine earnings
based on Plan
Update Balances

Calculate
Crediting

Transaction
Adjustments

Classify

Process
Payments
Trial Payments
Apply Draws/Caps
Approve & Finalize
Payments
Export Payments to
Oracle Payroll or
Payables
Create payment file
for external systems

Post Payment

Report
XML enabled
reports for easier
report extensibility
using (XML
Publisher)
Oracle Discoverer
End User Layer
available for adhoc
reporting

Report

Rollup
Populate

Load

Pay
Calculate
Update
Balance

Ultimate Power & Flexibility

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WHO is eligible?

WHEN do we
PAY?
Payment Groups

How much do they


EARN?

What do we
PAY on?

Input Expressions
Output Expressions

Payment Plans

Rate Tables

Classification
Rules

RT Dimensions
Sales Roles

Formules
Targets
Revenue Classes

Sales force
Plan Elements
Sales Organization

Compensation
Plans

Revenue Classes
Hierarchy

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Incentive Compensation
Computer Sales Representative
Lisa Jones

Resource
Resource

Sales
SalesGroup
Group

Roles
Roles

Computer Sales Rep

Industry Accounts

Computer Sales Rep FY06

Compensation
CompensationPlan
Plan

Plan
PlanElements
Elements

Assembled
AssembledComputers
Computers

MBO
MBO
Standard Computers
Standard Computers

Eligible
Eligible
Products
Products

Formulas
Formulas

Rate
Rate
Tables
Tables

Service
Service

Eligible
Eligible
Products
Products

Formulas
Formulas

Rate
Rate
Tables
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

Resources

Delivers ROI
in less than
one year*

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

Configure incentive plans

Deliver test & production rollout

Faster and easier to rollout plan


changes

Perform ongoing upgrades &


modifications

No risk in adding new plans and


more payees

Manage for processing & payment


errors

More accuracy of payments

Easier administration and


maintenance for IT

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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