Oracle Incentive/Sales Compensation Special Interest Group (SIG) Meeting

OAUG Announcements OAUG Appreciation Reception will be held on Wednesday, September 22nd from 6-8pm at the Weinstein Gallery, 301 Geary Street (at Powell, Union Square). This event is sponsored by IBM. Please visit the OAUG kiosk, Moscone West – Level 2, to obtain your wrist band for entry. Visit the OAUG kiosk, Moscone West – Level 2, to learn more about the comprehensive member benefits offered by OAUG. Register for your chance to win an iPad through iPad-A-Palooza!!! New members and members are eligible to enter.

Oracle Incentive Compensation (OIC) SIG Meeting Agenda SIG Leadership Introductions Overview of SIG and Meetings Presentation – OIC A Journey to R12 Questions and Answers

OIC SIG Leadership Lisa Barthel-Daluge, Creative Consulting Solutions, Inc. Dhamo Jayabalan, EIM Solutions Tabitha Ebert, Creative Consulting Solutions, Inc. Srini Parimi, EIM Solutions David Carlson, Oracle Representative

OIC SIG - Introductions Name Company Involvement in OIC Version of Module Related CRM Modules What you Would Like to Gain From OIC SIG

OIC SIG - Overview First Meeting at OAUG in September, 2003 Monthly Conference Calls in /06 Quarterly Calls and OAUG/Oracle Conferences 2 Day OIC SIG Meeting in November 2005 OAUG and Oracle Conference Quarterly Meetings and OAUG and Oracle Conferences

OIC SIG - Goals Network Share Experiences Seek Advice Provide Product Enhancement Recommendations Learn of Recent Enhancements

OIC Additional Sessions Quick Wins That Will Make You a Hero: Oracle Incentive Compensation –Thursday, September 23, 1:30PM | Westin Market Street Hotel, Franciscan I

Oracle Incentive/Sales Compensation – “A Journey to Release 12” Presented by Lisa Barthel-Daluge Creative Consulting Solutions, Inc.

Agenda Background of OIC OIC Release 12 Approach CRM Resource Manager OIC Compensation Plans OIC Release 12 Setup and Processing Changes Wrap Up and Q&A

Background of OIC OIC and Resource Manager - Implemented in 2003 & Upgraded to in 2005 Implemented OIC in Stand-Alone Environment E-Business Suite in Different Environment – 2010 Moved into Environment with Other Modules Collected Data from Data Warehouse Paid out Through ADP 800 Sales and Product Resources – 2010 Added Professional Services Sales Credit Rollup 5-7 Levels

OIC Release 12 Approach Upgraded the Test Environment to R12 Review and Analysis of Core Functionality (1 Month) Ran Numerous Test Cycles/Test Environments to Discover Issues and Functionality Changes (3 Months) Closed out 2008 Plan Year and then Upgraded prior to 2009 Plan Year Processing Full Year of Processing for 2009 Migrated to E-Business Environment for 2010 Setup and Processing of 2010 Plans

OIC Core Functionality Review Territory Mgr Territories Quoting Quotes ORACLE INCENTIVE COMPENSATION Collect, Calculate, Pay Resource Manager Resources Roles Groups Teams Employees Partners Resellers Vendors Agents Order Management Orders Receivables Invoices Billing Credits Payments Payroll Employees Payables Resellers Vendors Partners Agents 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 HR Comp Total Comp

CRM Resource Manager Setup all Resources who will have compensation plan in OIC. Roles drive the compensation plan in OIC. Groups provide rollup structure of data and reporting hierarchy. Team provide another rollup capability – all credit rolls to team members. Date Driven

CRM and TM with OIC – R12 Resources Roles Groups Teams Territory Manager R12 – Encountered No Issues with our Definition or Structure View/Maintenance from OIC We continued using custom Territory Mgr & OTM for Some Areas

Compensation Plan Structure Compensation Plan Plan Element Product Class (Revenue Class) Formula/ Expressions Role Rate Table/ Dimensions Resource Group/Team Plan Element Product Class (Revenue Class) Formula/ Expressions Rate Table/ Dimensions

R12 Compensation Plan Changes Build Plans from the Top Down or Vice Versa New ** Plan Copy/Duplicate Functionality New ** View Document Screen/Form Visual Appearance 360 Degree View of the Plans – Single Page –Plan Components/Elements –Eligibility – Roles, Groups –Maintenance of Components –Notes Sections Checklist and Validation Plan Administrator Responsibility

Sample Compensation Plan

View Plan Document

R12 Component Library Location to Build Plan Components –Plan Elements –Formulas –Expressions –Rate Tables –Rate Dimensions Copy/Duplicate Capability for each Component Can Build Here or From Create Comp Plan

Component Library

R12 Plan Elements Plan Element for each Plan Component Commission or Bonus Link to –Formula –Product Classes –Rate Table (Plan Element or Formula)

Plan Element Example

R12 Formulas and Expressions The Mathematical Structure of the Plans Simple to Complex Commission or Bonus Formulas Rate Table to Formula for String Type Formula –Input Expression (Goes Into Rate Dimension) –Output Expression (Calculates the Commission or Bonus) –Rate Table (Formula or Plan Element)

Formulas in R12 Same Structure – Simple to Complex Screen Appearance Different Formula Structure – Mathematical Input Expressions Input Expressions Output Expressions Rate Table Results Revenue % Achievement Rating Color Product Code Dimensions: Percent Amount String Rates: Percent (10%) Amount ($1,000) RTR*Revenue RTR PE1 Results  PE2 Results Min or Max RTR*Revenue – Prior Pay

Formula Example

Expression Builder – R12 Input and Output Expressions

Expression Example

R12 Rate Tables and Dimensions Dimensions are the Tiers Rate Tables –Rate Dimensions –Rates Single Dimension or Multi-Dimension Link to Plan Element or Formula

Rate Tables and Dimensions R12 Percent of Target Commission % * ITD Target * ITD Target * ITD Target * ITD Target - Target 15 Country Commission % USA 5 Japan 4 Germany 7 Percent of Quota Commission % Units Sold Commission % Amount : The rate dimension is defined in quantities. Percent : The rate dimension is defined in percentages. Expression : The rate dimension uses previously defined expressions. String : The rate dimension uses alphanumeric data. License Revenue Country Product Rate 0 – 250 USA Product X 1% 0 – 250 USA Service Y 5% 0 – 250 Japan Product X 1.5% 0 – 250 Japan Service Y 4.5% 0 – 250 Germany Product X 1.25% 0 – 250 Germany Service Y 6.25% ,999 USA Product X 4% ,999 USA Service Y 8% ,999 Japan Product X 4.5% ,999 Japan Service Y 7.5% ,999 Germany Product X 4.25% ,999 Germany Service Y 9.25% Revenue Amount 0 – ,999 Country USA Japan Germany Product Product X Service Y Multidimensional Rate Table

Sample Rate Table R12

Sample Formula Calculation Output Expression Rate Table Results * Transaction Amount E.g.: 1% “Quota Attainment” E.g.: 20% Input Expression

Compensation Plan Structure Compensation Plan Plan Element Product Class (Revenue Class) Formula/ Expressions Role Rate Table/ Dimensions Resource Group/Team Plan Element Product Class (Revenue Class) Formula/ Expressions Rate Table/ Dimensions

OIC Processing R12 Compensation Manager Responsibility Data Collection Calculation Payment Reporting

Data Collection – R12 Setup Responsibilities – IC Administrator Processing Responsibility – Compensation Manager No Changes to the Data Collection Process for R12 – Standard for AR, OM and Can Create Custom Sources (i.e. Projects, Contracts, Revenue Recognition, DW) R12 Table Changes – Views – Some Mapping Adjustments

Data Collection – R12 Setup Responsibilities – IC Administrator Processing Responsibility – Compensation Manager No Changes to the Data Collection Process for R12 – Standard for AR, OM and Can Create Custom Sources (i.e. Projects, Contracts, Revenue Recognition, DW) R12 Table Changes – Views – Some Mapping Adjustments

Data Collection – R12 Continued to Collect from DW 2010 Added Collection from AR/OM Also Collected Revenue Recognition Integrated Collection with Sales Credit Assignments/Splits

Calculation – R12 Calculate for Resources Assigned to Plans Calculate all Data Collected into OIC Stages of Calculation – No Change Testing Process for Calculation After Upgrade –3 Test Cycles –Calculation and Validation of Results – Reconciliation –No Major Discoveries

Sample Menu For Processing

Payment in R12 Payrun by Paygroup We Continued with Report to ADP No Change to Oracle Payroll or AP Interface Various New Views/Searches into the Payment Batches and Payment Sheet Transactions

OIC Reporting R12 We Continued with the DW Custom On-Line Statements Standard Reports More Flexible/Customizable XML/OA Created Reports Use a Combination of Custom and Standard Manager and User Self Service Responsibilities

Sample Menu For SS Reporting

Summary of OIC R12 Core Functionality Intact New Look and Feel Duplicate/Copy Capability No Major Gotchas in Upgrade Simple to Complex Plans Open Data Collector Capability Weekly/Monthly Processing Consistent Payment Processing Small Changes Reporting – Increased Flexibility and Improved Starting Point

Questions & Answers Presented by Lisa Barthel-Daluge Creative Consulting Solutions, Inc