oracle incentive compensation
Post on 27-Dec-2016
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Oracle Incentive Compensation
Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE&Turkey
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What is our goal?
Be clear!
Be quick!
Be helpful!
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Agenda
•OIC Market •Oracle Incentive Compensation Solution •OIC- powerful and flexible •Demo •Customer stories •Wrap-up and questions
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#1 in number of customers live
Oracle Incentive Compensation (OIC) 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 chosen OIC:
• Cisco; EMC; Symantec; Liberty Mutual; Edward Jones; Best Buy; Nordstrom; JC Penney.
Broad industry coverage incl. Mfg/Tech, Retail, Telco, Fin Serv
Global market momentum & references
500,000+ payees implementing • MoneyGram – 300,000
• Cisco – 13,000
• Edward Jones – 10,000
• Liberty Mutual – 30,000
1,150,000+ payees in production • British Telecom – monthly plans for 18,000
agents
• JC Penney –1100 stores live, 192,000 payees
• La Poste – 30,000 payees
• Nordstrom – quarterly targets & goals for 15,000 managers; 40,000+ total payees
• Best Buy – 90,000 payees
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IT
Telecom
Retail
Manuf.
Successful Customers Select Oracle!
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Finance
Healthcare
Other
Successful Customers Select Oracle!
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Insurance customers
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“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
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Oracle Incentive Compensation Solution
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Oracle Incentive Compensation
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
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
Oracle Business Intelligence EE
Compensation Data mart Role based Dashboards Flexible personalization
HR Comp
Total Comp
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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
End-to-End Incentive Compensation
Design Analyze
Measure
Reward
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Designing Incentive Compensation
Analyze
Reward
Design Analyze
Measure
Reward
• 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
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Measuring Behavior
• Collection of orders & invoices
• Out-of-the-box integration with Oracle Order Management and Oracle Accounts 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
Analyze
Reward
Design Analyze
Measure
Reward
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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
Analyze
Reward
Design Analyze
Measure
Reward
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Analyzing Compensation
• Standard out-of-the-box reports for tracking performance
• XML publisher for easy report modification and extensibility
• Oracle Discoverer End User Layer for ad-hoc reporting
• Sophisticated Analytic capabilities using Siebel Analytics
• Integration with Compensation Workbench for Total Comp Statement and Analysis
• Integration with Sales for Line of sight projections
Analyze
Reward
Design Analyze
Measure
Reward
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Legacy External Systems
Compensated Individuals
OIC Core Components
Legacy External Systems
Order Entry
Receivables
Billing
ORACLE INCENTIVE COMPENSATION
Collection Interface Tables
• Configurable data mappings
• Transformation & enrichment
• Post collection actions / filters
Calculation Engine
• Multi-threaded/Grid processing
• Retro active calculation
• Incremental calculation
Compensation Plans
• Complex formulas
• Flexible expression builder
• Link to external logic
• Linked objectives
• Multiple rate dimensions
• Date effective components
• Reusable components
• Currency conversion
Payroll
Payables
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It’s About The Ingredients...
The ingredients of Vegeta include: salt max. 56% dehydrated vegetables 15.5 % (carrot, parsnip, onions, celery, parsley leaves) flavour enhancers (monosodium glutamate max. 15%, disodium inosinate) sugar spices cornstarch riboflavin (for coloring)
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It’s About The Ingredients?
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Integration Points Provide Total Solution
Territory Alignment
Territories
Resource Modeling
Order Management
Orders
Receivables
Invoices
Reporting
HR Comp
Quoting
Projected Compensation
Discoverer XML Publisher
Business Analytics
BI Toolkit Flexible personalization
Resources Roles Groups Teams Total Comp
Performance Definition
EPB, BS
Payroll
Payables
Employees
Resellers Vendors Partners Agents
ORACLE INCENTIVE COMPENSATION
Design Analyze
Measure
Reward
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Legacy External Systems
Open Architecture for Easy Integration
Order Entry
Receivables
Billing
Legacy External Systems
Compensated Individuals
Payroll
Payables
ORACLE INCENTIVE COMPENSATION
Design Analyze
Measure
Reward
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� 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
� Flexible design to adapt to complex plan requirements
� Open architecture for ease of integration with legacy & external systems
� Scalable, high performance rules engine
Enterprise solution … With best of breed capabilities …
OIC Solution Overview
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OIC Powerful and Flexible Plan Design
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Adaptability
Difficulty modifying comp plans based on strategy c hanges
Difficulty releasing comp plans quickly for new fis cal years & new product releases
High cost of administration of homegrown solutions
IT, Operations
Alignment
Sales targets don’t make sense with respect to broa der corporate objectives
Failure to consistently meet key performance target s… & really understand why
Selling channels under-motivated or performing
Sales, Executive
Financial Control Lack of control & visibility into large sums of cas h payouts for
incentive-based programs Fear of/actual loss of millions of dollars in overp ayment &
comp errors Inability to account for variable compensation effe ctiveness
Finance
Dec
isio
n M
aker
In
fluen
cer
Insurance Pain Points
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Oracle Incentive Compensation Process
Collect Data Allocate Credits
Adjust
Transactions
Calculate Earnings
Process Payments
Report
Ultimate Power Ultimate Power & & FlexibilityFlexibility
Collect Crediting Post Payment
Pay
Data Import for:
� Transactions
*Oracle Receivables
*Oracle Order Management
* External Systems
* Excel Files
�Products, Customers, Quotas
Determine who should get “credit” for a given transaction
Determine how much credit should be given
XML enabled reports for easier report extensibility using (XML Publisher)
Oracle Discoverer End User Layer available for adhoc reporting
Load
Manual Transaction Adjustments
Mass Adjustment of Transactions
Order/Invoice Credit Split Adjustments
Excel Upload of Adjustments
Classify transactions
Roll Credits up the compensation hierarchy
Identify plan elements
Determine earnings based on Plan
Update Balances
Trial Payments – Apply Draws/Caps
Approve & Finalize Payments
Export Payments to Oracle Payroll or Payables
Create payment file for external systems
Classify
Rollup
Populate
Calculate
Update Balance
Transaction Adjustments
Report Calculate
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What do we PAY on?
Revenue Classes
Revenue Classes Hierarchy
Targets
Plan Elements
How much do they EARN?
Input Expressions
Rate Tables
RT Dimensions
Output Expressions
Formules
WHO is eligible?
Sales force
Sales Roles
Sales Organization
WHEN do we PAY?
Payment Groups
Payment Plans
Compensation Plans
Classification Rules
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Resource Resource
Roles Roles
Compensation Plan Compensation Plan
Plan Elements Plan Elements
Assembled Computers Assembled Computers
Standard Computers Standard Computers
Lisa Jones
Computer Sales Rep
Sales Group Sales Group
Industry Accounts Computer Sales Rep FY06
Incentive Compensation Computer Sales Representative
Service Service
MBO MBO
Eligible Products
Eligible Products Formulas Formulas Rate
Tables
Rate Tables
Eligible Products
Eligible Products Formulas Formulas Rate
Tables
Rate Tables
… …
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Demo 1
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Customer stories
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Business • Boston-based Liberty Mutual Group (LMG) is a leading global
insurer and sixth largest property and casualty insurer in the U.S. The Company ranks 102nd on the Fortune 500 list of largest corporations in the United States based on 2005 revenue.
Oracle Applications • Live on Oracle HR
Business Problem • Implement Incentive Compensation system for captive agents.
Why Oracle? • Demonstrated fulfillment of requirements through proof-of-concepts,
Strategic Partnership with Deloitte and Touche
Liberty Mutual
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Business • Edward Jones provides financial services for over 7 million
individual investors through 10,000+ investment representatives in the United States, Canada, the United Kingdom.
Oracle Applications • Live on Live on Peoplesoft HR & Peoplesoft Financials
Business Problem • Replace legacy mainframe incentive compensation system with web
based application that can handle current business and future growth
Why Oracle? • Low risk, good value, strong relationship, scalable technology
Edward Jones
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British Telecom Multi £Billion provider of European telecommunications services
BT wanted an easy to use ICM system that would: • Enable rapid changes of plan metrics • Handle many different factors contributing to compensation • Provide daily information to compensated individuals
Implementation details • Live on 11.5.10 • Deployed standalone, with Siebel Call Centre, PeopleSoft HR • Compensating 16,000+ employees and contract staff including telesales staff, sales
managers, call centre managers and call centre directors • Calculations run daily; 3 million transactions a month
Key benefits • Flexibility of the system for handling complex plans • Easy to add in a new plan element • Full audit trail of compensation • Improved cost of ownership with increased performance
Wrap-up and questions
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Build Buy
� Research 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
� Deliver test & production rollout
Time
Res
ourc
es
� 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
Delivers ROI in less than one year*
* Giga
Advantages of Packaged Solution
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Thank you!
Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE& Turkey
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