Driving Sales Growth With Oracle Incentive Compensation Indy Bains, Senior Oracle Solution Consultant

Agenda Introductions Oracle Incentive Compensation Management Product Overview Design incentive programs that align with corporate strategy Measure achievement against performance metrics Reward sales & partner behavior Analyze impact of incentive program on financial and sales goals Question & Answer Period

Key Pain Points Finance Decision Maker IT, Operations Sales, Executive 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 Decision Maker IT, Operations 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 Sales, Executive Alignment Sales targets don’t make sense with respect to broader corporate objectives Failure to consistently meet key performance targets… & really understand why Selling channels under-motivated or performing Influencer

OIC Solution Overview With best of breed capabilities… Enterprise solution… Complete end-to-end compensation solution from order to pay Integrated design, administration, & sales execution Total compensation visibility including both variable and non-variable pay Robust Global capabilities (languages, currencies, etc.) Flexible design to adapt to complex plan requirements Open architecture for ease of integration with legacy & external systems Scalable, high performance rules engine

Oracle Incentive Compensation Resource Manager Territory Mgr Quoting HR Comp Employees Partners Resellers Vendors Agents Resources Roles Groups Teams Territories Quotes Total Comp Order Management ORACLE INCENTIVE COMPENSATION Payroll Orders Employees Receivables Payables Invoices Billing Resellers Vendors Partners Agents Collect, Calculate, Pay Discoverer & out-of-the-box Reports Oracle Business Intelligence Commission Statements Performance Reports Year to Date Summary Administrative Reports + End User Layer Seeded Workbooks Compensation Data mart Role based Dashboards Flexible personalization OIC provides comprehensive breadth in EIM. Integrated solution essential for lower TCO; Oracle has a fully integrated enterprise suite. Collection from OM and AR. Increased Sales Effectiveness by SFA integration, Projected Compensation. Total Compensation Visibility - Integration with HR Compensation Workbench. Formatted output files for Payroll and AP. Seeded reports, customized reporting, and of course… with the acquisition, Siebel Business Analytics and Dashboards. Transition: Not only is OIC fully integrated, but it’s also open and flexible

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

OIC Analyst Recognition “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

Successful Customers Select Oracle! IT Telecom Retail Manuf.

Successful Customers Select Oracle! Finance Healthcare Other

End-to-End Incentive Compensation Design Analyze Measure Reward Design & communicate incentive programs that align with corporate strategy Measure achievement against performance metrics Reward sales & partner behavior Analyze impact of incentive program on financial and sales goals

Designing Incentive Compensation 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

Measuring Behavior Collection of orders & invoices Out-of-the-box integration with Oracle Order Capture and Oracle Receivables 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

Rewarding Behavior 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

Analyzing Compensation Standard out-of-the-box reports for tracking performance XML publisher for easy report modification and extensibility Oracle Business Intelligence Standard Edition End User Layer for ad-hoc reporting Sophisticated Analytic capabilities using Oracle Business Intelligence Enterprise Edition (Siebel Analytics) Integration with Compensation Workbench for Total Comp Statement and Analysis Integration with Sales for Line of sight projections

Next Steps URL: launch.oracle.com PIN: OICinfo

Key Takeaways Oracle Incentive Compensation is #1 in the Enterprise Incentive Management market OIC is the only enterprise solution with best-of-breed functionality OIC drives cost-effective management of incentive-based compensation programs OIC leverages Oracle technology, eliminating the need for third party solutions OIC provides the most scalable and secure architecture OIC delivers pre-built integration to Oracle EBS applications Largest Customer Base in EIM 560+ customers, 180+ production customers, 50 actively implementing Broad industry coverage: 39% Hi Tech/Mfg; 11% Retail; 10% Comms; 6% Fin Global deployments & support – EMEA, APAC, Americas H&les complex plans with high volume transactions across large range of industries 550,000+ payees; 400,000+ in production Largest # of payees: 40,000 (Retail) 40% implementations actually standalone Links corporate goals to sales execution Planning & Budgeting, push to sales force Projected compensation, SFA integration