Oracle Incentive Compensation. Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE&Turkey

Transcription

1 Oracle Incentive Compensation Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE&Turkey

2 What is our goal? Be clear! Be quick! Be helpful! 2

3 Agenda OIC Market Oracle Incentive Compensation Solution OIC- powerful and flexible Demo Customer stories Wrap-up and questions 3

4 Oracle Incentive Compensation (OIC) Market #1 in Sales Incentive Compensation Management #1 in number of customers live 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 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 500,000+ payees implementing MoneyGram 300,000 Cisco 13,000 Edward Jones 10,000 Liberty Mutual 30,000 4

5 Successful Customers Select Oracle! IT Telecom Retail Manuf. 5

6 Successful Customers Select Oracle! Finance Healthcare Other 6

7 Insurance customers 7

8 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 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,

9 Oracle Incentive Compensation Solution 9

10 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 Orders ORACLE INCENTIVE COMPENSATION Payroll Employees Receivables Invoices Billing Collect, Calculate, Pay 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 10

11 End-to-End Incentive Compensation Analyze Reward Measure Design 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 11

12 Designing Incentive Compensation Analyze Design Flexible compensation plan definition Reward Role-based plan assignment Measure 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 12

13 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 Measure Design 13

14 Rewarding Behavior Analyze Design 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 Reward Measure 14

15 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 Measure Design 15

16 OIC Core Components Legacy External Systems ORACLE INCENTIVE COMPENSATION Legacy External Systems Order Entry Collection Interface Tables Calculation Engine Payroll Configurable data mappings Multi-threaded/Grid processing Transformation & enrichment Retro active calculation Receivables Post collection actions / filters Incremental calculation Payables Billing Compensation Plans Complex formulas Date effective components Flexible expression builder Reusable components Link to external logic Currency conversion Linked objectives Multiple rate dimensions Compensated Individuals 16

17 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) 17

18 It s About The Ingredients? 18

19 Integration Points Provide Total Solution Order Management Performance Definition EPB, BS Resource Modeling Resources Roles Groups Teams Territory Alignment Territories HR Comp Total Comp ORACLE INCENTIVE COMPENSATION Payroll Orders Analyze Design Employees Receivables Payables Invoices Reward Measure Resellers Vendors Partners Agents Reporting Quoting Business Analytics Discoverer XML Publisher Projected Compensation BI Toolkit Flexible personalization 19

20 Open Architecture for Easy Integration Legacy External Systems Legacy External Systems Order Entry ORACLE INCENTIVE COMPENSATION Payroll Analyze Design Receivables Reward Measure Payables Billing Compensated Individuals 20

21 OIC Solution Overview Enterprise solution Complete end-to-end compensation solution from order to pay Integrated design, administration, & sales execution Total compensation visibility including both variable and nonvariable pay With best of breed capabilities Flexible design to adapt to complex plan requirements Open architecture for ease of integration with legacy & external systems Scalable, high performance rules engine 21

22 OIC Powerful and Flexible Plan Design 22

23 Insurance Pain Points Decision Maker Influencer Finance 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 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 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 23

24 Oracle Incentive Compensation Process Collect Data Data Import for: Transactions *Oracle Receivables *Oracle Order Management * External Systems * Excel Files Products, Customers, Quotas Allocate Credits Determine who should get credit for a given transaction Determine how much credit should be given Adjust Transactions Manual Transaction Adjustments Mass Adjustment of Transactions Order/Invoice Credit Split Adjustments Excel Upload of Adjustments Calculate Earnings Classify transactions Roll Credits up the compensation hierarchy Identify plan elements Determine earnings based on Plan Update Balances Process Payments Trial Payments Apply Draws/Caps Approve & Finalize Payments Export Payments to Oracle Payroll or Payables Create payment file for external systems Report XML enabled reports for easier report extensibility using (XML Publisher) Oracle Discoverer End User Layer available for adhoc reporting Collect Crediting Transaction Adjustments Calculate Classify Post Payment Report Rollup Load Populate Calculate Pay Update Balance Ultimate Power & Flexibility 24

25 WHO is eligible? WHEN do we PAY? How much do they EARN? What do we PAY on? Payment Groups Input Expressions Payment Plans Output Expressions Rate Tables Classification Rules RT Dimensions Sales Roles Formules Sales force Targets Plan Elements Revenue Classes Sales Organization Compensation Plans Revenue Classes Hierarchy 25

26 Incentive Compensation Computer Sales Representative Resource Resource Lisa Jones Sales Sales Group Group Industry Accounts Roles Roles Compensation Compensation Plan Plan Computer Sales Rep Computer Sales Rep FY06 Plan Plan Elements Elements Assembled Assembled Computers Computers MBO MBO Standard Computers Standard Computers Service Service Eligible Eligible Products Products Formulas Formulas Rate Rate Tables Tables Eligible Eligible Products Products Formulas Formulas Rate Rate Tables Tables 26

27 Demo 1 27

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42 Customer stories 42

43 Liberty Mutual 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 43

44 Edward Jones 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 44

45 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 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 45

46 Wrap-up and questions

47 Advantages of Packaged Solution Buy Build Resources Delivers ROI in less than one year* 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 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 * Giga Time 47

48 Thank you! Cosmin Dodoc-Marina HCM Principal Sales Consultant SEE& Turkey 48