IT
Telecom
Retail
Manuf.
Successful Customers Select Oracle!
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
• #1 in number of customers live
Oracle Incentive Compensation Market
#1 in Sales Incentive Compensation Management
• Global market leader with:
250+ live customers
1,150,000+ payees in production
• Brand Name companies have chosen OIC:
Edward Jones; Dell; Yahoo; Cisco; EMC; Symantec; Liberty Mutual; Best Buy; Nordstrom; JC Penney.
• Broad industry coverage incl. Mfg/Tech, Retail, Telco, Fin Serv
• Global market momentum & references
• 500,000+ payees implementing Best Buy – 90,000 Cisco – 13,000 Edward Jones – 10,000 JC Penney – 192,000 Liberty Mutual – 30,000
• 1,150,000+ payees in production 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
45% Stand Alone
“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 “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
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
A * B = C
Simple Question…
Who?
Eligibility?
Periodicity?
Corp Strategy?
Tiered Rates?
Draws?
Variable by Role?
Variable By Resource?
Proportional Calcs?
Circular Calcs?
Splits?
Accelerators?
Multipliers?
Standardization vs
Flexibility?
Complex Answer
f(x) = x2 + 1
A * B = C
Simple Answer…
Oracle Incentive Compensation
Territory Mgr
Territories
Quoting
Quotes
ORACLE INCENTIVE COMPENSATION
Collect, Calculate, Pay
Resource Manager
ResourcesRolesGroupsTeams
EmployeesPartnersResellersVendorsAgents
Order Management
Orders
Receivables
InvoicesBillingCreditsPayments
Payroll
Employees
Payables
ResellersVendorsPartnersAgents
Discoverer & out-of-the-box ReportsCommission StatementsPerformance ReportsYear to Date SummaryAdministrative Reports+ End User Layer Seeded Workbooks
Siebel Business Analytics
Compensation Data martRole based DashboardsFlexible personalization
HR Comp
Total Comp
Powerful, Flexible Plan Design
Plan Elements, Formulas & Calculations
Compensation PlanCompensation Plan
Plan ElementsPlan Elements
Incentive Compensation Plan Structure Building Blocks
Software Sales
Rate TableFormula Eligible Products Rate TableFormula
What? How? How Much?
FORMULA FORMULA
Formula Components
InputExpressions
InputExpressions
OutputExpressions
OutputExpressions
Rate TableResults
Rate TableResults
Red = Provided to Incentive Compensation Blue = Calculated by Incentive Compensation
Percent of Target Commission %
0 - 0.25 * ITD Target 5
0.25 * ITD Target - 0.75 * ITD Target 10
0.75 * ITD Target - Target 15
Country Commission %
USA 5
Japan 4
Germany 7
Percent of Quota Commission %
0 - 25 0
25 - 75 1
75 - 100 3
Units Sold Commission %
1-250 2
250-500 4
500-99999999999 6
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%
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%
Revenue Amount
0 – 250
250 - 9,999
Country
USA
Japan
Germany
Product
Product X
Service Y
Multidimensional Rate Table
Four types of Rate tables
Rate Dimensions
Multi-Dimensional Table
Incentive Compensation
Example Expression Builder
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.
Simple
Putting it all together…
Output Expression
Rate Table Results * Transaction Amount
E.g.: 1%
“Quota Attainment”
E.g.: 25%
Input Expression
ResourceResource
RolesRoles
Compensation PlanCompensation Plan
Plan ElementsPlan Elements
Lisa Jones
Outbound Rep
Computer Sales Rep Plan
Outbound Sales Representative
Assembled ComputersAssembled Computers
Eligible Products
Eligible Products FormulasFormulas Rate
Tables
RateTables
Standard ComputersStandard Computers
EligibleProducts
EligibleProducts FormulasFormulas Rate
Tables
RateTables
ServiceService
EligibleProducts
EligibleProducts FormulasFormulas Rate
Tables
RateTables
What? How? How Much?
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
AQ&