ORACLE INCENTIVE

data sheet COMPENSATION 11i

Oracle® Incentive Compensation is the Enterprise Incentive Management application that manages
sales compensation programs to drive corporate goals. Oracle Incentive Compensation is a key
component of the Oracle Customer Relationship Management solution, the integrated suite that drives
profitable customer interactions.

Enterprise Incentive Management That Ties Strategy to Execution

Accurately measuring and rewarding performance is key to driving the desired behavior from your
sales force. A well-structured compensation plan communicates corporate objectives to your sales
force, while a poorly structured compensation program can actually incent salespeople to work
against corporate goals. Worse still, any delay in rolling out compensation plans leaves salespeople
frustrated and unmotivated. Oracle Incentive Compensation dramatically simplifies the difficult task
of managing variable compensation programs and provides the means for aligning sales force
execution with your strategic objectives. The software lets you easily create compensation plans
that motivate the intended sales behavior improve sales force productivity with timely and accurate
compensation plans and payments. With Oracle Incentive Compensation, salespeople are
motivated, focused, and confident that they know exactly how their work contributes value and gets
rewarded.

Oracle Incentive Compensation builds and executes plans that support your strategic objectives

With Oracle Incentive Compensation you can:

• Reduce plan administration costs

• Inform and Motivate Salespeople
• Align sales behavior with corporate objectives

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Reduce Plan Administration Costs
Oracle Incentive Compensation slashes the manual effort and cost of plan administration, while
giving you the flexibility to rapidly respond to market and compensation changes.

Reusable Plan Components Quickly Build Complex Plans

As business goals become more sophisticated, creating compensation plans that communicate
these objectives has become ever more time-consuming. Incentive Compensation provides a
comprehensive set of tools to quickly design all plans; from the simplest to the most complex,
without requiring IT resources. The compensation plan administrator configures modular
components to specify plan characteristics, including formulas, rates, and quotas, to determine
incentive amounts. You can easily re-use any plan component in building future compensation
plans or tailoring plans to specific lines of businesses or geographies.

Review and maintain all elements of a plan on a single screen.

Payment Approval Workflow Eliminates Overpayment Errors And Time-Consuming Disputes

Overpayments and and underpayments are expensive and often result in costly disputes. Incentive
Compensation’s automated payment process steps users through payment postings and
adjustments, identifying who needs to be paid, the transactions they are being paid for, and the
amounts due. Hierarchical approvals further reduce payment errors by ensuring that every payment
receives the correct level of scrutiny before a check is cut. Review is easy because each payment
worksheet has an audit trail listing all approvals, rejections, and modifications. Incentive
Compensation’s robust payment system saves time, money, and employee goodwill.

Self-Service Reporting Automates Routine Inquiries

With homegrown compensation management systems, administrators often waste precious time
generating and distributing reports to salespeople and managers. Incentive Compensation’s self-
service reporting completely eliminates this burden by giving users secure access to their own
compensation information. From an easy Web interface, salespeople view out-of-the-box reports
showing their attainment, commissions and more. Incentive Compensation reduces the burden on
plan administrators while making the compensation process more transparent to all participants.

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Inform and Motivate Salespeople
Oracle Incentive Compensation makes sure your compensation plans are promptly deployed and
salespeople always know exactly how they will be rewarded.

Rapid Quota and Territory Deployment Adds Productive Weeks To Every Quarter
You can’t add productive weeks at the end of the quarter, but what if you could add them at the
beginning? Incentive Compensation helps you roll out your quotas and territories on time, every
time. The intuitive and streamlined user interface takes sales managers quickly through a self-
service process to distribute territories and quotas. Territories and quotas can be distributed to the
field earlier. With Incentive Compensation, instead of wasting weeks of each quarter or year in
“comp plan/territory limbo”, salespeople are focused and motivated from the beginning.

Projected Compensation View Displays Commission Potential For Every Quote

Every salesperson wants to know, “How much will I make if I sell this?” Showing salespeople the
potential results of their actions reinforces desired sales behavior. With Incentive Compensation’s
Projected Compensation View, salespeople can evaluate the commission of every quote. There are
no surprises because every salesperson can forecast his or her compensation transaction-by-
transaction.

Visibility To Variable Compensation Eliminates Shadow Accounting

Every moment salespeople spend trying to figure out if their commission and bonuses are
calculated correctly is the time lost from selling. But shadow accounting only stops when
salespeople can clearly see and trust commission calculations. Incentive Compensation gives
salespeople complete visibility into their commissions on every sale. Sales people view the “line-
level” details of their commission and bonuses online at any time. With Oracle Incentive
Compensation, salespeople spend less time reconciling their commissions and more time earning
them.

The commission statement gives clear visibility to variable compensation information

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Align Sales Behavior With Corporate Objectives
Your compensation plan is the dollars-and-cents expression of your business strategy. Incentive
Compensation makes it easy to motivate sales behavior that supports your corporate goals.

Powerful Plan Authoring Logic Incorporates Company Goals Into Compensation Plans
No matter how complex your business objectives, Oracle Incentive Compensation’s plan
components can incorporate your strategies into your compensation plan. For example, you can
add a new plan element to provide accelerators for selling a new product, without disrupting the
existing elements of the plan. With Incentive Compensation, you can easily adjust your plans to
align salespeople to both immediate and long-term priorities.

Territory Manager Aligns Territories And Quota To Meet Performance Objectives

Incentive Compensation leverages Territory Manager to allow managers to align quota targets with
territories to ensure that territory coverage is sufficient to meet corporate objectives. Territory
Manager lets administrators define territories based on geography, customer profile, industry,
market segment, or sales channel. Incentive Compensation can incorporate these values and
assignments into compensation plans and calculation logic.

Territory manager optimizes territory and quota alignment

Performance Measures Gauge Sales Performance Against Corporate Objectives

Incentive Compensation provides the metrics you need to monitor the performance of your sales
force—including revenue and quota attainment. The system also provides the information you need
to measure the effectiveness of your compensation plans against your strategic objectives. With
Oracle Incentive Compensation, executives and plan administrators have the insight to make
information-driven decisions.

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KEY FEATURES

Plan Authoring & Administration Payment

• Reusable plan components: configurable for
commissions, bonuses; employees, partners, etc.
• Customized plans for individual payees
• Customized payment plans: draws and caps
• Personalized search capabilities on plan
components
Compensation Calculation
• Import transaction data from both Oracle
and legacy feeder systems
• Convert multi-currency accurately
• Calculate at scheduled times or real
time
• Automatic calculation of rollup credit
• Automatic calculation of adjustments:
including credit memos, chargebacks, etc.
• Prior period recalculation: including
recalculation of rollup and attainment balances
• Search capabilities on transactional data
Credit Allocation
• User-defined, date effective credit rules
• Credit rule hierarchy
• Credit rule mapping to multiple legacy or
external applications
• Post individual payee balances
automatically at scheduled times or real
time
• Audit controls for calculation and
payment adjustments: analyst notes,
workflow-driven approvals
• Automatic payment worksheet creation
for payees
• User defined secure access to payment
information
Reporting
• Compensation Reports
• Sales Force Performance Reports
• Administrative Reports
• Easy access to ad hoc reporting tools
Globalization
• Native Language Support for database
utilities, error messages, sort order,
date, time, monetary, numeric and
calendar conventions
• 30+ languages

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Oracle Corporation
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Worldwide Inquiries:
650.506.7000
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http://www.oracle.com
Oracle Corporation (NASDAQ: ORCL) is the world's leading supplier
of software for information management, and the world's second largest
independent software company. With annual revenues of more than $10.1
billion, the company offers its database, tools and application products,
along with related consulting, education, and support services, in more
than 145 countries around the world.

Features and screen shots shown may not correspond exactly to the
released product.

Oracle is a registered trademark of Oracle Corporation.

All other company and product names mentioned are used for identification
purposes only and may be trademarks of their respective owners.

Copyright © 2005 Oracle Corporation

All Rights Reserved

Last Updated: May, 2005

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