Match, Manage & Motivate With OIC.

1. Incentive Compensation Match, Manage & Motivate With OIC. Presented By Indy Bains, Incentive Compensation Solution Specialist.

2. Agenda • Match, Manage & Motivate • Oracle Incentive Compensation Background • R12 Updates • Demo Flow • Plan Administration: Match • Plan Execution: Manage • Reporting: Are you Motivating?

3. Reporting Calculate Create and Maintain Comp Plans Collect Data Transaction Source (Oracle or 3rd Party System) Match sales compensation to your company objectives • Manageincentive systems with greater efficiency & simplicity. • Eliminate manual processes with increased speed and flexibility • Validate and audit payments to improve accuracy Motivatereps through accurate and on time payments and reports Incentive Management Payment (Payroll, A/P, Open API) Oracle Incentive Compensation

4. 400,000+ payees currently implementing • JC Penney – 127,000 • Best Buy – 90,000 Oracle Market Summary 500,000+ payees as of July 2006 (production) • La Poste – 30,000 payees • British Telecom – monthly plans for 18,000 agents • Nordstrom – quarterly targets & goals for 15,000 managers; 40,000+ total payees #1 in EIM • Global market leader in EIM • 180+ live customers • 500,000+ payees in production • Flexible and Scalable • Broad industry coverage incl. Mfg/Tech, Retail, Telco, Fin Serv • Global market momentum & references

5. Case Study: British Telecommunications • BT wanted an easy to useICM 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 and 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

6. British Telecom – Telecommunications • Implementation details: • Live on 11i (11.5.10) • BT uses Siebel in the call centre and PeopleSoft for corporate HR • BT is compensating more than 18,000 employees and contract staff including telesales staff, sales managers, call centre managers and call centre directors • Calculations are run daily; 3 million transactions a month • Hardware Sizing • 8 CPU box (HP) • 24GB Memory

7. JC Penney - Retail • Implementation details: • Live on 11i (11.5.10) • JC Penney uses PeopleSoft HR, Payroll and Financials • JC Penney have currently rolled out to around 20 stores as pilot and will be rolling out to 1000 stores in the next 6 months. • Around 35,000 store employees and managers will be compensated bi-weekly and another 90,000 more will be paid monthly/quarterly/annual bonus. • Calculations during peak periods are 10 million transactions a week • Hardware Sizing • 12 CPU box (IBM P5) • 24GB Memory

8. 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 OIC has "achieved significant scalability milestones in terms of payees… & transactions…, & demonstrated an ability to support stand-alone projects" as well as differentiating its offering through its "integration with other e-business applications". Clients “should consider OIC on their shortlists.” Michael Dunne, Gartner, 2006

9. R12 Updates

10. Product History R12: • Personalizable and extensible applications framework • Role-based business flows • 360º view of compensation plan and resources • Enhanced auditing capabilities • Multi-Org access control • HR Compensation Workbench integration • Task based plan creation UI 11.5.10: • Mass update of rules and assignments • Sales force reports for performance assessment and payment reconciliation • Projected commissions and quoting integration • Flexible, user-defined credit allocation • Integrated territories alignment 11.5.8/9: • Collect revenue adjustments • Accumulation/splits along multi-dimensional rate tables • Payment administration hierarchy • Manual payment adjustments • Payment worksheet history • Payment signoff report • Import/export of setups 11.5.6/7: • Conversion to HTML • Payroll integration • Multi-dimensional rate tables • Interdependent plan elements • Spreadsheet import of transactions • Seasonality schedules • Workday calendar • Re-goal • Invoice splits • Transaction and administration reports • Analytical reports 11.5.4/5: • Payables integration • Income planner • Collection filters • Payment hold • TBH resources • Contract authoring/approval • Comp Planning reports 11.5.3: • Collection from Order Management • Plan assignment by role • Calculation for non-employees • Compensation groups • Integration with Sales • Pay groups • Payment Plans 3i & prior: • Calculation formulas • Incremental calculation • Split transactions • Mass transaction adjustments 1997 2000 2001 2002 2003 2004 2006

11. R12 Release Update • Superior ownership experience • Role based business flows • Compensation Manager/Analyst • Plan Administrator • Incentive Compensation Administrator • Self-Service Users and Managers • Top-Down plan creation and plan element wizard • 360º View of Resources and Plans • Enhanced auditing capability • Best application technology • Adaptive, Meta-data driven UI • XML-based reporting • Export to Excel • Total Compensation Visibility

12. Plan Administration (Match)

13. Credit Rules Credit Receivers Transactions Sales Credit & Territory Allocation Rules Engine Sales Credit Allocation Description • Sales Credit Allocation assists in determining who the correct credit receivers are and how much credit each should receive

14. Sales Credit Allocation Benefits • Define credit allocation rules appropriate to the business • Apply credit allocation rules at any time during the life cycle of the transaction • Reduce the volume of crediting errors

15. Credit Rules Credit Receivers Transactions Sales Credit & Territory Allocation Rules Engine Sales Credit AllocationHow To Use This Feature • Define Sales Credit Allocation (SCA) credit rules • Create transactions • Transfer transactions to SCA interface tables • Run SCA Rules Engine • Apply SCA results to transactions

16. Plan Execution (Manage)

17. Reporting

20. Create and Maintain Comp Plans Incentive Management Collect Data & Assign Credit Calculate & Pay Commissions Reporting Match sales compensation to your company objectives • Manageincentive systems with greater efficiency & simplicity. • Eliminate manual processes • Increase speed and flexibility • Validate and audit payments to improve accuracy Motivateconsultants through accurate and on time payments and reports Motivatereps through accurate and on time payments and reports

21. Incentive Compensation Value & ROI Improved financial controls "Our implementation of Oracle Incentive compensation improved accuracy, provided more control and reduced interpretation and subjectivity of compensation plans” ADP Inc • Improved regulatory compliance & financial predictability • Reduced administration errors & over payments • Improved accountability over incentive expenditure Improved adaptability "Our implementation of Oracle Incentive compensation provided a low cost of ownership with tight integration to backend systems in a global rollout” Silicon Graphics • Improved time to market with new products & business initiatives • Accelerated new fiscal year compensation rollouts • Reduced incentive management staffing costs Improved alignment "Our implementation of Oracle Incentive compensation improved call center agents productivity with alignment to corporate objectives.” British Telecom PLC • Optimized target distribution aligned with corporate goals • Increased sales & channel partner productivity • Full sales line of sight for focused sales execution

22. Thank You