Transcript Oracle Incentive Compensation

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

#1 product in install base and recognized as such by our customers, peers
and analysts

Native integration into current Oracle footprint

Unmatched portfolio of customers
• OIC has MEASURABLE ROI

Revenue

Transactional Costs
Overpayment costs estimated at 6% of commission spend (over $25m).
OIC reduces to 1% Deloitte benchmarking

Compliance and controls

Field Sales morale
Oracle Incentive Compensation 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 OIC:
• 1,150,000+ payees in production
45% Stand Alone
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
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Edward Jones; Dell; Yahoo; Cisco;
EMC; Symantec; Liberty Mutual;
Best Buy; Nordstrom; JC Penney.
• Broad industry coverage incl.
Mfg/Tech, Retail, Telco, Fin Serv
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• 500,000+ payees implementing

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• Global market momentum &
references


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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
Quoting
HR Comp
Quotes
Total Comp
Resources
Roles
Groups
Teams
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
Plan Elements
Software Sales
Eligible Products
What?
Formula
Formula
Rate Table
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
500-99999999999
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
Plan Elements
Service
Assembled Computers
Standard Computers
Eligible
What?
Products
Eligible
Products
Formulas
Rate
Tables
How?
Formulas
RateMuch?
How
Tables
Eligible
Products
Formulas
Rate
Tables
Demo
Themes for Today
• OIC is BEST of BREED and ERP

#1 product in install base and recognized as such by our customers, peers
and analysts

Native integration into current Oracle footprint

Unmatched portfolio of customers
• OIC has MEASURABLE ROI

Revenue

Transactional Costs
Overpayment costs estimated at 6% of commission spend (over $25m).
OIC reduces to 1% Deloitte benchmarking

Compliance and controls

Field Sales morale