Oracle Incentive Compensation

ASM Field Enablement Webcast Jason Loh Solution Architect, AGSS

Agenda

Incentive Compensation Market Overview Solution Overview Day in the Life of a Sales Rep Positioning and Prospecting for OIC deals Q&A

Oracle Incentive Compensation Market

Global market leader with:

#1 in Sales Incentive Management350+ Live Customers

#1 in Production Customers!

1,400,000+ payees in production

Broad industry coverage incl.

High-Tech Retail Telecom

Financial Services Manufacturing Many Others

Some statistics about OIC Customers:

Scalability & Flexibility!

52% of OIC customer use standalone 90% change plans without consulting 50% implement 3 Years or no with little Top help Vendor

Running!

Successful Customers Select Oracle!

IT

Media & Comms

Reta il

Successful Customers Select Oracle!

Finance

Healthca re

Manuf .

Oracle Incentive CompensationStandard & Ad-Hoc ReportsCommission Statements Performance Reports Year to Date Summary Administrative Reports + End User Layer Seeded Workbooks

Gadgets

Oracle Business IntelligenceCompensation Data Mart Role-based Dashboards Flexible personalization

Web 2.0 Social CRM

Order ManagementOrders

Oracle Incentive Compensation

PayrollEmployees

ARInvoices Billing

AP

Collect, Calculate, Pay

Resellers Vendors Partners Agents

Modeling

Resources

Territories

Disputes

Quoting

HR

Forecast Accruals Quota Planning

Employees Partners Agents

Territories

Dispute Resolution

Quotes

Total Comp

Agenda

Incentive Compensation Market Overview Solution Overview Day in the Life of a Sales Rep Positioning and Prospecting for OIC deals Q&A

A Day in the LifeEmpowering Sales & Motivating Behavior

Reporting & Analytics

Accurate Calculations, Recent Transactions Gadgets

What If Compensation Scenarios

Compensation Plan Acceptance

Gadgets: Accurate CalculationsRecent Transactions:

Real-Time Performance Visibility No need to wait until the end of the quarter to see total performance and commission due. Minimize shadow accounting

Top Customers:

Impact total sales, earnings, and rate of return per customer See potential subsequent or repeat revenue of customers RSS feeds by customer

Top Products:

Drive Behavior of the sales channel to sell the most profitable products Visibility into most lucrative products Shopping the Plan Drive focus on which products to sell and which will provide the biggest earnings rate

Compensation Plan Acceptance

Market-Leading Workflow processes to manage compensation plan distribution and acceptance.

Dispute Management

Full Auditability & TransparencySupports Attachments Embedded Workflow Supports Escalation & Enterprise Collaboration

The Cocktail Napkin

What If Modeling for Sales Representatives

Real Time Calculation Calculation Rules ALWAYS the most current! Can be deployed via Gadget, Excel, or HTML

Reporting & Analytics

Real-time, Secure Access on the Mobile DeviceManagers & Executives:

Review key targeted tasks Access relevant business intelligence reports Make informed decisions Take immediate actions easily & securely Approve/ reject workflow on-the-go

Sales Representatives:

Browse, search and locate business performance metrics View commission details Review key targeted tasks View up-to-date transaction & performance information

Agenda

Incentive Compensation Market Overview Solution Overview Day in the Life of a Sales Rep Positioning and Prospecting for OIC deals Q&A

Identifying an OpportunityQuestions to ask VP Sales or Sales Operations

61% Dissatisfied*

66% Dissatisfied*

34% Believe Misaligned*

*Source: Strategic Sales Compensation Survey, Deloitte Consulting 2005

Incentive CompensationBusiness Benefits for SalesCHALLENGES CAPABILITIES

VALUE

How accurate is your compensation

process? Does the sales force have confidence in the compensation process? Can shadow accounting be

Accurate calculation Best practices functionality for cyclic

Improve sales force productivity &

processing Recent Transactions Gadget for

morale through greater confidence in accuracy of calculations & visibility to upcoming transactions Align & drive desired sales behavior Increase incremental revenues from up-

minimized and increase sales force productivity? Are we incenting desired sales

greater rep visibility Pre-built compensation reports Flexible rules based calculation

selling/cross-selling Improve new product introductions Lift in new product sales By more than 5% Improved quota setting More than 65%of sales force

behavior? Do reps understand their comp plans? Can desired plans or plan changes be

engine Analytics to measure plan

implemented? And in a timely manner? Can you measure effectiveness of

effectiveness Scenarios management to model

effectiveness of proposed plans Best practice territory & quota

exceeding 100% of plan Improved market coverage Increased revenues by 3% to

your compensation programs? And improve effectiveness of every comp dollar spent?

allocation Collaborative top down goal driven

& bottoms up localized quota planning

6% from optimized territories

Incentive CompensationBusiness Benefits for FinanceCHALLENGES CAPABILITIES

VALUE

How accurate is your compensation

process? How can I reduce administration

Accurate calculation Flexible rules based calculation

Reduce overpayments by 90% 3%-8% of total compensation

costs yet increase adaptability? Is the compensation process auditable

engine Best practices functionality for cyclic

expense Reduce administrative overhead &

and SOX compliant? Are their sufficient audit trails? Do we have visibility to upcoming

compensation liabilities? When are compensation budgets going to be exceeded? Can you measure effectiveness of

processing including 360 degree view of a participant, transaction research assistance for disputes, spreadsheet import/export with validation, shared service centers, retro processing, incremental calculation Pre-built operational compensation

costs via greater accuracy, fewer disputes, auditability By 50% Deploy shared service centers Improved visibility to compensation

liabilities Improve ROI of every compensation

your compensation programs?

reports Analytics for improved visibility to

dollar spent Predict attainment distributions &

compensation liabilities & to measure plan effectiveness What If plan modeling

compensation expenses

Incentive CompensationBusiness Benefits for ITCHALLENGES CAPABILITIES

VALUE

How adaptable is your legacy

system? How long does a plan change take to implement? How well is the system documented or is it in a few heads? How scalable is the system? Will

Open collections interface for 3rd

party systems & pre-built integrations to collect from EBS OM, AR Open payment interface & pre-built

Best in class functionality with depth

& integrations of enterprise play Reduced TCO with pre-built

integrations Increased accuracy & faster rollout

processing complete within the SLA? How can I reduce TCO yet increase

integrations to pay via EBS Payroll, AP Pre-built integrations to synchronize

with plan copy Reduced TCO leveraging existing

scalability & adaptability to business priorities? Can I align my compensation system

participants from EBS HR, Peoplesoft HR Flexible rules based calculation

EBS expertise & infrastructure

technology with overall IT strategy?

engine Proven world class scalability &

performance Replicate plans between instances Built upon EBS infrastructure

FAQs

What integration is standard?

EBS PeopleSoft HCM (certified 8.9 and beyond) Siebel CRM, PRM (v7.8 and beyond) Oracle Transportation Management

Is there delivered UPK content? Is there a SaaS offering available? What about compensating 3rd party sales? Who gets sales credit? What if my customers BI platform is NOT OBIEE? Can we still position analytics?

Q&A

Appendix

Key Pain PointsFinanceDecision MakerFinancial 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 Difficulty modifying comp plans based on strategy changes Difficulty releasing comp plans quickly for new fiscal years & new product releases High cost of administration of homegrown solutions Alignment 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

Operations & IT

Influen cer

Sales, Executives

Incentive Compensation Value & ROIImproved 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 adaptabilitymarket with new products & business Improved time toinitiatives 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

Advantages of Packaged SolutionBuy

BuildResearch 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 Perform ongoing upgrades & modifications Manage for processing & payment errors Perform ongoing code extensions to support plan changes

Delivers ROI in less than one year*

Resour ces

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

Tim Deliver test & production rollout e

* Giga

Target Customers

All accounts with large direct or indirect selling channels comprised of employees and/or other 3rd party sales resources (partners, suppliers, resellers, or agents) Existing CRM Sales (EBS, SEBL, PSFT) customers who would like to align sales behavior with their corporate goals Existing HCM customers who are concerned about enhancing their Pay-forPerformance business strategy Existing FIN customers who are concerned about variably compensating Vendors & Suppliers via AP; supporting Royalty scenarios. All new customers and prospects looking for sales alignment and effectiveness Customers who have issues with:

Visibility into large sums of cash payouts for incentive-based programs Inability to account for variable compensation effectiveness Modifying comp plans based on strategy changes High cost of administration of homegrown solutions Flexible, automated incentive management that is visible on demand to sales roles Failure to consistently meet key performance sales targets & really understand why

High Yield Questions

Do you use variable compensation to influence sales behaviors? How do your compensation plans align with your companys business goals/objectives? What strategies do you use to keep your top performers? How effective are your sales incentive programs in driving sales behavior? How are your compensation plans handled (manually or automated system)? How is your sales hierarchy structured? Do you have direct and indirect credit receivers? How do you track and support commissions and payments to your external sales people? How accurate are your commission payouts? How simple is it to communicate sales compensation information to your salespeople?