2010 oow contracts_sig

OAUG Contracts SIG Meeting

Host: Mohan Dutt, VeriSign Inc

SIG Chair: Chiranjib Sarkar, Quantum Corporation

Agenda

• OAUG Announcements

• Contracts SIG – Charter & History

• EBS Service Contracts Update - Susan Flierl & • EBS Service Contracts Update - Susan Flierl & Ramesh Iyer, Oracle Corporation

• Introducing Fusion Contracts – Vijay Rajkumar, Oracle Corporation

• Q&A

OAUG Announcements

• OAUG Appreciation Reception will be held on Wednesday, September 22nd from 6-8pm at the Weinstein Gallery, 301 Geary Street (at Powell, Union Square). This event is sponsored by IBM. Please visit Square). This event is sponsored by IBM. Please visit the OAUG kiosk, Moscone West – Level 2, to obtain your wrist band for entry.

• Visit the OAUG kiosk, Moscone West – Level 2, to learn more about the comprehensive member benefits offered by OAUG. Register for your chance to win an iPad through iPad-A-Palooza!!!

Contracts SIG – Charter & History

• Contracts SIG covers mainly Oracle E-Business Suite Contracts related modules.

• Currently SIG has 385 OAUG members & 279 LinkedIn members.

• SIG Charter and History:– Formed in 2004 and for more details visit http://contractsig.oaug.org

– Winner of OAUG Certificate of Distinction in 2007 & 2009

• Plan for 2010-2011– Work more on web conferences

– Form next Contracts SIG Board

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.

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relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Oracle EBS Contracts Development Update

Ramesh IyerDirector Development

Susan FlierlProduct Strategy Director

• WHAT – A family of contract applications designed to author and manage the lifecycle of all contract types

• HOW – Deployed integrated with order-to-cash and procure-to-pay flows or as

Project Contracts

Service Contracts

Sales Contracts

Procurement Contracts

Oracle Contract Lifecycle Management

8

standalone application

• RESULTS - Improve visibility of all business agreements, reduce contract cycle time, and manage risks Contract Repository

*Standalone product coming soon

Contract Terms Library

R12 Momentum

25

30

35

40

Number of EBS Service Contracts customers with bugs logged on R12+ releases

9

0

5

10

15

20

25

R12 R12.1

How to get there

Service Contracts

Core Contracts

Sales Contracts

Contract Repository *

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R12.1R12R11i10R11i9R11i8R11i7

Contracts


Repository *

* Contracts Repository included in Sales & Procurement Contracts license

Uplift renewal rates

– Improved customer experience with Flexible Assignment Rules for

Customer Communication Templates and Online Acceptance Portal

Enhancements

– Faster renewal cycle times with Service Contracts Administration

Workbench

– Improved renewal rate analysis with Service Line and Covered Level Cancellation

Oracle Service ContractsR12 & R12.1 Release Overview

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Cancellation

Reduce financial risk

– Standardize customer coverage with Standard Coverage Definition

– Improve revenue recognition compliance with Partial Period Revenue Recognition and Defer Revenue for Customer Acceptance Contingencies

– Secure customer payment information with Credit Card Security

Streamline contract administration

– Provide global contract administration tools with Multi-Org Access Control

– Improved service contract visibility when managing customer’s assets

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R12 Standard CoverageDescription

• Define ‘Standard Coverage’ terms for a service• Service line references a ‘Standard Coverage’ definition

• Coverage terms are no longer instantiated for every service line

• Customize coverage to meet specific customer needs• Coverage can be instantiated for a service line on a contract

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• Quickly roll out changes to coverage policies• to all contracts � Changes to coverage terms are immediately visible to all contracts referencing the standard coverage

• to new contracts � New coverage policies in effect for new contracts only

• Changes to standard coverage policies are not reflected in instantiated coverage terms

R12 Standard CoverageBenefits

• Easy to roll out policy changes• Contract coverage that references a standard definition can easily be changed to suit policy changes

• Roll out to all affected contracts is carried out implicitly

• Creation of new offerings is easy• New coverage offerings can easily be created from existing

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• New coverage offerings can easily be created from existing offerings

• Improves performance• Actions such as copy & renew perform better for standard coverage since records are no longer needlessly stored against each contract line

Standard Coverage

Press ‘Customize’ to update coverage terms for the contract

Coverage Details Form

Customizing Coverage for a Service Line

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‘Standard’ checkbox is unchecked & ‘Reapply Standard’ button is enabled after coverage is customized for a service line

Authoring Form – Effectivities tab

R12 Administrator WorkbenchDescription & Benefits

• A configurable workbench that enables sales reps to easily track progress of open service contracts– Notifications Bin: Allows users to view their workflow notifications

– Simple and Advanced Search: Allows users to quickly search for renewal and new contracts

– Shortcuts: Administrators can use the workbench for other activities such as authoring new contracts

– Seeded Bins: Workbench has been seeded with bins that enable

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– Seeded Bins: Workbench has been seeded with bins that enable users to view contracts in various stages of negotiation

– Administrator Actions: Available from the My In Process Contracts Bin that allow the administrator to take actions on selected contracts

• Increases Contract Administrator efficiency by providing a single place to view and act on in-process contracts

• Improves usability through consolidated, personalizable views of contracts in-process, and drilldowns to contract details

R12 Administrator WorkbenchBenefits

• Increases Contract Administrator efficiency by providing a single place to view and act on in-process contracts

• Improves usability through consolidated, personalizable views of contracts in-process, and drilldowns to contract details

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R12 Service Contracts Administration Workbench

Quick search for your new and renewal contracts

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Displays your open contracts

R12 Service Contracts Administration WorkbenchPersonalized view of a service sales rep’s contracts

• Manage renewals pipeline

• Update status and forecast data

• Launch contracts to Online portal

• Mass update capabilities

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capabilities

• Email/print quote

• Enable/Disable Reminders

• Run QA Check

• Submit for Approval

• Quantity Split

• Quantity Increase

View Impacted Contracts for…

When updating an item instance, the

user can review Impacted Contracts

R12 Usability Enhancements

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Increase

• Quantity Decrease

• Termination & Reinstatement

• Transfer

• Installation date change

Tips from Oracle Development

• R12• Auto-renewal – can take a long time to run if all your contracts expire on the same day (e.g. at the end of the year)

• Suggested workaround: Set conditions for when the contract will get picked up for auto-renewal (create rules which break up a large group of contracts into smaller groups)

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up a large group of contracts into smaller groups)

• Use judgment in the number of lines and sub-lines that you group into a single contract • Creating a single service contract per customer with 1,000s of lines some of which 10,000s of sub-lines can create performance issues

Performance Improvements

• 11i10• Eliminated Rules architecture - to improve performance for contracts with large number of lines and sub-lines

• For contract copy, renewal and termination for contracts with large number of lines and sub-lines

• R12

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• R12• Standard Coverage – store reference to coverage template instead of replicating coverage information on every service line

Post 12.1 Update

• Procurement, Sales & Repository Contracts– Import clauses created/edited in Word

– MS Word 2007 support

– Additional section defaulting capabilities for Contract Expert *

– System Variables for Complex Acquisitions *

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– Amendment Specific Sections *

• Service Contracts– Configurable support for PA-DSS

* Currently available only with CLM for Public Sector

Proprietary and Confidential. Copyright © Oracle Corporation, 2009

Post 12.1.3 Contracts Development

Proposed Roadmap

Service Contracts• Performance Improvements

• Pricing, Repricing, Manual Renewal

• Date Assembler & Auto Renewals Processing

• Usability Enhancements

• Profile to view service description/service name in authoring, entitlement and install base flows

23Proprietary and Confidential. Copyright © Oracle Corporation, 2009

• Service Contracts Workbench: Additional search/result attributes

• Integration enhancements

• Service Contracts Import Enhancements – usage, tangible subscriptions, partially billed service contracts, update contract

• Additional integration enhancements

• Revenue Recognition Enhancements

• Improved Credit Amortization for Contracts authored in Service contracts form that leverage Summary Billing

Credit Amortization for Summarized Billing

Worked Example

Service line worth $3600 covering 3 products (sublines) for a year billed in advance for the entire year tied to an accounting rule that recognizes revenue equally over 12 months. The products contribute equally ($1200 per product/subline) to the service line amount. Service line is billed in summary.

Subline 1 partially terminated midway through the subline effectivity with credit amount as $600.Subline 2 fully terminated (terminated on the start date of the subline) with credit amount as $1200.

Revenue Distribution

Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-

Current Behavior


Instrument

Jul-

10

Aug-

10

Sep-

10

Oct-

10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar-

11

Apr-

11

May-

11

Jun-

11

Original Invoice ($3600) 300 300 300 300 300 300 300 300 300 300 300 300

Credit Memo ($600) for

subline 1 (300) (300)


subline 2 (300) (300) (300) (300)

Revenue Distribution

Instrument Jul-10

Aug-

10

Sep-

10 Oct-10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar-

11

Apr-

11

May-

11

Jun-

11

Original Invoice ($3600) 300 300 300 300 300 300 300 300 300 300 300 300


subline 1 (100) (100) (100) (100) (100) (100)


subline 2 (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100)

New Behavior

Post 12.1.3 Contracts Development

Proposed Strategy for Roadmap

Procurement, Sales Contracts & Repository Contracts

• Support 2-way synchronization for contracts with clauses imported from word

• Emphasize enterprise contract management

• Single contract repository – ability to manage and search on all EBS and external source contracts

• Visibility to deliverables and expiring contracts regardless of source of the contract


source of the contract

• Ability to import contracts from other systems - API to create standalone contracts

• Streamline the entire acquisition process

• Enable intelligence-driven decision making

• Ensure accountability and transparency

Introducing Oracle Contract Lifecycle Management for

Public Sector (CLM)

Oracle Contract Lifecycle Management for Public Sector is the integrated acquisition management solution that transforms government procurement

IAE

FedBizOpps ORCA FPDS-NG CCR & EPLS

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CLM Sessions at OpenWorld:

S317187 : Implementing Contract Lifecycle Management for Federal Procurement

S318025 : Contract Lifecycle Management for Public Sector

Demonstration available in the E-Business Suite Demo Grounds: Kiosk S-86 & S-87: Moscone South

IAE

Close-out

Post-AwardAwardOffer

EvaluationSolicitation

Pre-Solicitation

FedBizOpps ORCA FPDS-NG CCR & EPLS

Purchase Request

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Fusion Enterprise Contracts – SIG Update

Vijay RajkumarSenior Director, Fusion Contracts Strategy

Fusion Enterprise Contracts

ECM BaseECM BaseECM BaseECM Base

Fusion Contracts is an enterprise-wide solution that automates the

lifecycle of all types of contractual agreements

Fusion Contracts is an enterprise-wide solution that automates the

lifecycle of all types of contractual agreements

� Contract lifecycle management� Consolidated repository and search� Standards-based T&Cs authoring� Redlining with MS Word� Document management� Deviation and clause usage reporting

� Contract lifecycle management� Consolidated repository and search� Standards-based T&Cs authoring� Redlining with MS Word� Document management� Deviation and clause usage reporting

ProcurementProcurement Sales*Sales*ProjectsProjects Service*Service*

� Project execution tracking� Billing and revenue mgmt� Subcontractor mgmt

� Project execution tracking� Billing and revenue mgmt� Subcontractor mgmt

� Master agreements� Integration to Purchasing� Track spend

� Master agreements� Integration to Purchasing� Track spend

� Pricing agreements� Enforce pricing on orders� Track fulfillment

� Pricing agreements� Enforce pricing on orders� Track fulfillment

� Coverage & subscriptions� Billing and revenue mgmt� Entitlements & renewals

� Coverage & subscriptions� Billing and revenue mgmt� Entitlements & renewals

*Post V1 deliverable

Current E-Business Contracts Footprint

Project

Order

Management

Service

Sales /

Quoting

CRM Service

Purchasing /

Sales

Contracts

Sales Agreements and

Sales Orders with

T&Cs

Sell Product & Service

Service Component

Sell Project & Product

ManualManual

Contract

Repository

Visibility across all

Enterprise

Contracts

Project

Contracts

Service

Contracts

GL AR

Purchasing /

Buy Contracts

AP

Entitlements

Billing

Invoices

Revenue

Sub-contractor

flow / Buy-side

Billing

Invoices/

RevenueProject

Billing

Revenue

Project

Costing

Install Base

Enterprise

ContractsFinancialsCRM

Invoice,Revenue

Entitlements

CreateContract

Fusion Enterprise Contracts Footprint

Contract Admin / Sales Rep

Service

ExecutionSupply Chain,

LogisticsProjects

EntitlementsMfg, Shipping,Procurement

Funding,Execution

Enterprise Contracts Concepts

• Contract Types– User-defined (e.g. Fixed price consulting agreement, service contract, cost-plus research agreement, equipment lease agreement)

– Specifies intent (sell vs. buy) – Line types that will be sold or purchased– Line type drives the overall UI

• Contract Line Types– Specifies the type of item you are buying or selling– Specifies the type of item you are buying or selling

• Project-based item, ext. warranty, goods, price-hold, subscription, usage, lease, etc.

– Line type determines the information captured for the line and the downstream execution

• System Variables– Structured information (business terms) to be used in printing, defining policy rules, approval rules etc.

Implementing Enterprise Contracts

Single Contract

Repository

Standards-based

Authoring

Execution

Compliance

Features

� Multiple contract types

� Store all contracts in a single, secure

searchable repository

� Search based on attributes and text

� Automate approvals

� Manage renewals

Features

� Library of standard clauses, policy

rules and templates

� Wizard based authoring tool (Expert)

� Deviations reporting

� Redlining with MS Word

� Contract printing

Features

� Billing & revenue mgmt

� Pricing and commitment enforcement

� Service entitlement verification

� Advanced renewal management

� Contract Analytics (profitability,

renewal rates etc.)� Manage renewals

� Visibility in customer 360

� Contract printing

� Change management

Benefits

� Contracts visibility to key stakeholders

� Better understanding of financial and

business obligations

� Track risky relationships

Benefits

� Improve regulatory and procedural

compliance

� Reduce time-to-contract and costs

� Reduce contract risk

Benefits

�Avoid penalties & non-compliance

� Negotiate better contracts

� Identify revenue acceleration and cost

saving opportunities

renewal rates etc.)

ROI

Phased Implementation

ECM Base Features

Standardize Contract ProcessesManage Contract Types

Standardize Contract ProcessesManage Standard Templates

Clauses and Sections

Variables

Author and CollaborateWizard-based Authoring of Standard Contracts

Author and CollaborateCollaborate in MSWord and Synchronize Changes

Flexible PDF Output

• Tailor to your company standard format

• Automatic substitution of negotiated terms in printed document without re-keying text

Standards Based AuthoringContract Printing

re-keying text

• Signature block

• Manage all contract documents, exhibits, amendments, etc. in central repository

Drive Contract Compliance Easily Find Contracts to Verify Compliance

Search ‘text’ to match in

contract documents

Matching contractsMatching files

Procurement

ContractsContracts

Procurement Contracts Co-ExistenceNegotiate Contracts Centrally

Enterprise ContractsFusion

EBS

PurchasingStandalone Contracts

Heterogeneous Purchasing Environment

Users - Business Dev / Legal / Global Procurement Users – Buyer / Financial

Enterprise ContractsFusion

Purchasing

SAP

Purchasing

Author and Negotiate Contracts

Push Pricing and Commitments

Procurement Contracts Co-ExistenceCreate Purchase Orders or Agreements in Purchasing

Project Contracts

Project Contracts – Define Billing

Project Contracts – Financial Summary

Contracts Conference

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Sessions & Demo Stations

Conference Sessions

Monday September 20, 2010

TIME TITLE LOCATION

2:00 pm – 3:00 pm Oracle Sourcing and Oracle Procurement Contracts: Overview and Roadmap

Moscone West L2 Rm 2022

3:00 pm – 3:45 pm Oracle Fusion Enterprise Contracts – CRM Lounge

Moscone South Exhibit Hall

#105 Tuesday September 21, 2010

TIME TITLE LOCATION

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TIME TITLE LOCATION

2:00 pm – 3:00 pm Oracle Service Contracts: Hear how Oracle efficiently manages its own ever growing number of customer contracts

Moscone WestL3 Rm

3002/3004

5:00 pm – 6:00 pm Implementing Contract Lifecycle Management for Federal Procurement


5:00 pm – 6:00 pm Oracle Fusion PPM: Next Generation Project Financial Management

Moscone West L2 2005

Conference Sessions

Wednesday September 22, 2010

TIME TITLE LOCATION

10:00 am – 11:00 am

Contract Lifecycle Management for Public Sector


11:30 am – 12:30 am

Top Questions on Oracle Fusion Procurement, Shared Services, Contracts, Spending

Moscone West

L2 Rm 2001

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L2 Rm 2001

3:00 pm – 3:45 pm Oracle Fusion Enterprise Contracts – CRM Lounge

Moscone South Exhibit Hall

#105

Oracle Demo Grounds

PRODUCT DEMO STATION NAME LOCATION


Contract Management

CLM for Public Sector

Oracle Sourcing, Contract, and Supplier Management (E‐Business Suite)

Moscone South S-087

Sales Contracts Oracle Order Management (E‐Business Suite)Moscone South

S-025

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Service Contracts Oracle Service Solutions (E‐Business Suite)Moscone South

S-080

Fusion Enterprise Contracts

Oracle Fusion Customer Relationship Management

Moscone South S-044

Fusion Procurement Contracts

Oracle Fusion ProcurementMoscone South S-088 & 105

Fusion Project Contracts

Oracle Fusion Project Portfolio Management Moscone South S-141 & 145

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Oracle OpenWorld

Latin America 2010

December 7–9, 2010

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Oracle OpenWorld

Beijing 2010


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Appendix

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Technology

2010 oow contracts_sig