2010 oow contracts_sig
TRANSCRIPT
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
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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
Procurement 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
24Proprietary and Confidential. Copyright © Oracle Corporation, 2009
Instrument
Jul-
10
Aug-
10
Sep-
10
Oct-
10
Nov-
10
Dec-
10
Jan-
11
Feb-
11
Mar-
11
Apr-
11
May-
11
Jun-
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Original Invoice ($3600) 300 300 300 300 300 300 300 300 300 300 300 300
Credit Memo ($600) for
subline 1 (300) (300)
Credit Memo ($1200) for
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
Credit Memo ($600) for
subline 1 (100) (100) (100) (100) (100) (100)
Credit Memo ($1200) for
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
25Proprietary and Confidential. Copyright © Oracle Corporation, 2009
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
Moscone West L2 Rm 2022
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
Moscone West L2 Rm 2009
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
Procurement Contracts
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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December 7–9, 2010
Oracle OpenWorld
Beijing 2010
December 13–16, 2010
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December 13–16, 2010
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Appendix
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