Oracle E-Business Suite: Leveraging Incentives as a Strategic Alignment Tool

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3. Oracle E-Business Suite: Leveraging Incentives as a Strategic Alignment Tool Men-ChingLuk, Director of EBS Strategy Oracle

4. Agenda • Incentives as Strategic Alignment Tool • Benefits • Making the Transformation & Best Practices • Performance Metrics Data Mart • Steering Committee • Driving User Adoption • Agile Plan Maintenance & Reporting

5. How Do You See Incentive Programs? Administrative or Strategic

6. Administrative Automate • Consolidate platform • Reduce operational risk • Compliance • Accuracy • Minimize Overpayment • Improve operational efficiency • Automate spreadsheets • Greater access to incentive insight

7. Strategic Leverage the Power of Incentives • Agile business process of continual alignment of sales forces to corporate objectives • Create competitive advantage of agility • Reduce customer churn • Grow sales or margins • Improve partner loyalty

8. Strategic Transformation Incentive Programs as a Strategic Tool • Centralized platform • Committed steering committee • Incentive guidelines • Understand commission costs on every sale • Visibility to improve alignment • Automated, accuracy, compliance • Flexible, agile • Decentralized • Spreadsheets • Flexible, agile • Manual intervention, overpayment, lack of compliance • Legacy systems • Very customized • Rigid, expensive to maintain • No visibility Current Future

9. Performance Metrics Data Mart Visibility to Sales Alignment • Measure and monitor performance metrics and costs against corporate goals • Empower business to alter incentive plans or take other corrective decisions

10. Steering Committee – Avoid Blind Automation Leadership in Sales Alignment • Standardization of incentive guidelines in alignment with corporate objectives • Accompanying mechanisms supporting desired flexibility • Challenge: To standardize on incentive guidelines that afford the flexibility required by the decentralized divisions.

11. Making the Transition – Avoid Blind Automation Evaluate before Automating with Aid of Steering Committee • Collect Impact/Value Matrix • Payee Communities • Roles, population of roles • Data sources & quality • Plan concepts & rules • Payee/Manager reports • Executive analytics • Segment analytics • Business impact/value • Analyze & Align

12. Drive User Adoption – Change Management Across All Impacted User Groups • Identify representatives of all user groups • Involvement throughout implementation • Document new business processes • Training

13. Agility: Merging Best Practices, Processes & Applications

14. Agile Plan Design & Reporting Business Users Manage Plans teamed with IT Guidance Initial Implementation Agile Plan Changes Agile Reporting

15. Plan for Agility Incorporate into Solution & Communicate with Business & Comp Admin • Plan Concepts & Rules • Follow incentive guidelines • Anticipate changes; gather as part of plan rules; incorporate into plan design • Solicit business & comp admin feedback • Leverage Product Hub for item level incentives • Reporting requirements • Commission statements • Executive analytics including alignment • Segment analytics • Ensure incentive data important to reporting available; gather as part of plan rules; incorporate reporting metadata into plan design • Augment data mart with additional performance data

16. Plan for Agility Incorporate into Solution & Communicate with Business & Comp Admin • Sales Hierarchies • Synch sales hierarchies & material changes • Levels of rollup • Commissionable Events • Volumes, volume distributions • Rollup/aggregation strategies • Capture bundles from Order Capture • Collect frequency • Address data quality issues • Sales crediting requirements • Reporting requirements

17. Give Business an Intimate Relationship with Item Based Incentives Product Hub Distributed business users managing: • Hierarchies • Commission Attributes Empower marketing & productmanagers Close the loop with segment analytics

18. Agile Reporting & Analytics Supported by Performance Data Mart & Appropriate Presentation Tools • DASHBOARDS& REPORTS • “One size does NOT fit all” • SUBJECT AREAS • Many metrics and dimensional attributes not surfaced by prebuilt dashboards and reports • Incremental work to build more content from this foundation BI “Heros”

19. Architect Reporting Metadata into Plan Design Transpose Subledger Rows to Report Columns • Associate a reporting measure to a plan element & its subledger • Associate “meaning” to plan elements in regards to reporting • Via attributes like QUOTA GROUP, CURRENCY, flexfields

20. 3 Calls to Action Planning for Agility starts with.. • Gather Plan Impact Matrix • Prioritize for ROI • Performance & scalability in plan design • Understand Reporting Requirements • Drive value & alignment through incentive insight • Understanding Plan Design & Reporting Change • How & frequency • Competitive advantage of ALIGNMENT predicated on agility

21. PLAN & PREPAREfor Agility

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