Oracle Incentive Compensation R12 Overview and New/Changed Features
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1 Oracle Incentive Compensation R12 Overview and New/Changed Features Session ID#: Oracle Incentive Compensation Special Interest Group oicsig.oaug.org Lisa Barthel-Daluge & Tabitha Ebert OIC SIG Leadership Team Members REMINDER Check in on the COLLABORATE mobile app
2 Agenda Incentive Compensation Overview SIG Overview CRM Foundation Compensation Plan Setup Process of Collection, Calculation, Payment Lessons Learned Questions and Answers
3 OIC SIG LeadershipTeam Introductions Tabitha Ebert Lisa Barthel-Daluge Srini Parimi Men- Ching Luk/David Carlson
4 Participant Introductions Number/Type of Implementations Number of Resources Number of Plans Version of the System Type of Industries What OIC Replaced
5 R12 OIC Responsibilities Incentive Compensation Administrator Plan Administrator Compensation Manager Self Service Reports User Self Service Reports Manager
6 Incentive Compensation Overview
7 Types of Individuals Compensated
8 Compensation Plan Building Blocks Compensation Plan Plan Elements Licensed Software Sales Eligible Products Formula Formula Rate Table Rate Table What? How? How Much?
9 Sample Salesrep Plan Resource Jill Wilson Roles Manager - Toad Compensation Plan Manager Toad Plan Plan Elements Service Licensed Software Support What? Eligible How? Rate Formulas How Much? Products Tables Eligible Products Formulas Rate Tables Eligible Products Formulas Rate Tables
10 Variations of Incentive Plans Account Managers Individual Plan Element Lease GPM Bonus Plan Element New Account Bonus Element DM Individual Plan Element Overall GPM Bonus Lease Origination Bonus Quarterly Consulting Services Bonus Product IC Individual Incentive Plan Element (Upfront) Individual 2M Bonus System Services Bonus Key Client Bonus
11 CRM Foundation Resource Manager
12 CRM Resource Manager Module used to setup Resources Roles Groups (Hierarchies) Teams
13 Resource Import or Setup HR Import Employees Capability to pay directly from Oracle Payroll. Supplier Contact Import Vendors Capability to pay directly from Oracle AP. Partner Partnership Other Direct Setup in Resource Manager No integration front or back end for payments Upgrade all designated as other
14 Roles, Groups, Teams Receivables Tab Salesrep # Setup by Op Unit Quota Credit Revenue/Freight Accounts Roles Groupings Assign to Plan Required for OIC Groups Hierarchy Rollups During Calculation Required for OIC Teams Optional Selective Rollup All Data
15 Compensation Plan Setup
16 Compensation Plan Design Start with Sales Plan or Incentive Plan Review each plan to identify each plan component (I.e. 1 to 2 month process) Identify each primary commission driver Identify re-usability of plan components Identify data requirements for incoming transactions
17 Compensation Plan Structure Role Resource Compensation Plan Groups and Team (Teams are Optional) Plan Element Plan Element Product Class Formula and Expressions Product Class Formula and Expressions Ruleset Rate Table Ruleset Rate Table
18 Product Classes and Rules Product Category Type of Service Type of Product Sold New/Existing Product Customer Type Sales Channel Type of Salesrep Role Data Attributes Integrated Modules Cross-Reference Tables or Lookups Data Collection
19 Rate Tables and Dimensions Dimensions Percent, Amount, String Rate Tables Percent or Amount Multi-Dimensional Can Setup On Formula or Plan Element Re-User by Customize Rates by Resource Date Driven
20 Formulas and Expressions Mathematical Component Input Rate Dimension Output Commission or Bonus Amount Can Build Simple to Very Complex Inter-Dependent Functions Other Plan Element Results
21 Plan Elements Created by Plan Component Re-Use Across Plans Identify the Interval Commission or Bonus Link Formula, Revenue Class, Rate Tables
22 Compensation Plan Created by Role Consistent Commission Structure Role/Resources Assigned to Plan Design Time Year to Year Work with Writers of Plans Plan Copy Capability Build from Top Down or Bottom Up
23 Setup by Role/Resource Roles Compensation Plans Paygroup Payment Plan Resources Quotas Rates
24 Compensation Plan Structure Role Resource Compensation Plan Groups and Team (Teams are Optional) Plan Element Plan Element Product Class Formula and Expressions Product Class Formula and Expressions Ruleset Rate Table Ruleset Rate Table
25 OIC Processing This is a subtitle or bulleted list
26 Data Collection through Payment Order Management Payroll Accounts Receivable Collect Data Oracle Incentive Compensation (Setup Plans, Calculate Commission, Process Payments) Accounts Payable Other Sources (Oracle or Non-Oracle) General Ledger Oracle Resource Manager (Define Resources, Roles, Groups, Teams, Usages)
27 Data Collection and Load Open Data Collection Process Builds Code Within Application Standard Sources Configure Additional Attributes Custom Sources Using Standard Configuration Frequency of Collection
28 Calculation All Active Plan Assignments Frequency Stages of Calculation Validation Full or Incremental By Resource
29 Payment Paygroups Geography Frequency Payment Plans Min/Max Draw Recoverable/Non- Recoverable Payruns Resource Type Oracle Payroll Oracle Accounts Payable Other Systems Journal Entries
30 Reports/Analytics Standard Reports Custom Reports OBIEE Data Warehouse On-Line Self-Service Salesrep Management Processing/Validation Exception Analytical
31 Lessons Learned
32 Key Suggestions for Design Spend Time on Design Streamline where possible Group into higher level commission buckets Minimize give/take back Minimize exceptions Settle with reps as they move positions Be open to adjustments of commission philosophy Commission exactly as you do today = some customizations Think outside the box Consistency in structure/process Utilize rates to drive different performance rather than different elements
33 Lessons Learned - Timeframe 3 Months Duration 12 Months Simplistic Sales Plan Small # of Reps/Plans/Roles Sales, Administrators and IT Design Together High Internal Knowledge of Plans & System Stand Alone or Post ERP Implementation or Upgrade Short Testing and Validation Cycle Required Commission Attributes Readily Available Complex Sales Plan Large # of Reps/Plans/Roles Sales, Administrators and IT do not Design Together Limited Internal Knowledge of Plans & System Part of Full E-Business Implementation or Upgrade Heavy Testing and Validation Cycle Required Commission Attributes Drive Re-design of Master or Transaction Sources
34 Lessons Learned Project Staffing # 1 Key to Success Involve Sales, Administrators and Accounting Supplement with External SME s Functional and Technical Resources More Experienced, the Better
35 Lessons Learned R12 OIC Builds Upon Strong R11i Base Plan on: Strong Functionality Simple to Complex Plans and Processing Different Look and Feel Evaluation of Capabilities if not Previously Implemented Plan Copy Functionality OBIEE/Analytics
36 Questions & Answers Presented by Lisa Barthel-Daluge Creative Consulting Solutions, Inc
37 Please complete the session evaluation We appreciate your feedback and insight You may complete the session evaluation either on paper or online via the mobile app
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