contracts enhancements

8/10/2019 Contracts Enhancements

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OAUG Contracts SIG Meeting

Host: Mohan Dutt, VeriSign Inc

SIG Chair: Chiranjib Sarkar, Quantum Corporation


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Agenda

OAUG Announcements

Contracts SIG Charter & History

erv ce on rac s p a e - usan erRamesh Iyer, Oracle Corporation

Introducing Fusion Contracts Vijay Rajkumar,

Oracle Corporation Q&A


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OAUG Announcements

OAUG Appreciation Reception will be held onWednesday, September 22nd from 6-8pm at theWeinstein Gallery, 301 Geary Street (at Powell, UnionS uare . This event is s onsored b IBM. Please visit

the OAUG kiosk, Moscone West Level 2, to obtainyour wrist band for entry.

Visit the OAUG kiosk, Moscone West Level 2, to

learn more about the comprehensive memberbenefits offered by OAUG. Register for your chanceto win an iPad through iPad-A-Palooza!!!


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Contracts SIG Charter & History

Contracts SIG covers mainly Oracle E-Business SuiteContracts related modules.

Currently SIG has 385 OAUG members & 279 LinkedInmembers.

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


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The following is intended to outline our general

product direction. It is intended for informationpurposes only, and may not be incorporated into anycontract. It is not a commitment to deliver anymaterial, code, or functionality, and should not be

6

relied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oraclesproducts remains at the sole discretion of Oracle.


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Oracle EBS Contracts Development Update

Ramesh IyerDirector Development

Susan FlierlProduct Strategy Director


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WHAT A family of contractapplications designed to author and

manage the lifecycle of all contracttypes

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

ProjectContracts

ServiceContracts

SalesContracts

ProcurementContracts

Oracle Contract Lifecycle Management

8

standalone application

RESULTS - Improve visibility of allbusiness agreements, reduce contractcycle time, and manage risks Contract Repository

*Standalone product coming soon

ContractTermsLibrary


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R12 Momentum

25

30

3540

Number of EBS Service Contracts customerswith bugs logged on R12+ releases

9

0

5

10

1520

R12 R12.1


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How to get there

ServiceContracts

Core

SalesContracts

Contract*

10

R12.1R12R11i10R11i9R11i8R11i7


* Contracts Repository included in Sales & Procurement Contracts license


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Uplift renewal rates

Improved customer experience with Flexible Assignment Rules forCustomer Communication Templates and Online Acceptance PortalEnhancements

Faster renewal cycle times with Service Contracts AdministrationWorkbench

Improved renewal rate analysis with Service Line and Covered LevelCancellation

Oracle Service ContractsR12 & R12.1 Release Overview

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Reduce financial risk Standardize customer coverage with Standard Coverage Definition

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

Secure customer payment information with Credit Card SecurityStreamline contract administration

Provide global contract administration tools with Multi-Org Access Control

Improved service contract visibility when managing customers assets

11


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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


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R12 Standard Coverage

Benefits

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

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offerings

Improves performance Actions such as copy & renew perform better for standard coverage

since records are no longer needlessly stored against each contractline


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Standard Coverage

Press Customize to updatecoverage terms for the contract

Coverage Details Form

Customizing Coverage for a Service Line

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Standard checkbox isunchecked & Reapply Standardbutton is enabled after coverageis customized for a service line

Authoring Form Effectivities tab


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R12 Administrator WorkbenchDescription & Benefits

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

Simple and Advanced Search: Allows users to quickly search forrenewal and new contracts

Shortcuts: Administrators can use the workbench for other activitiessuch as authoring new contracts

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

Administrator Actions: Available from the My In Process ContractsBin 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


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R12 Administrator WorkbenchBenefits

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

Improves usability through consolidated, personalizable viewsof contracts in-process, and drilldowns to contract details

16


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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


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R12 Service Contracts Administration Workbench

Personalized view of a service sales reps contracts

Managerenewals pipeline

Update status

and forecast data

Launch contractsto Online portal

Mass update

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capa es

Email/print quote

Enable/DisableReminders

Run QA Check

Submit for

Approval


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Quantity Split

QuantityIncrease

View ImpactedContracts for

When updating an item instance, the

user can review Impacted Contracts

R12 Usability Enhancements

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QuantityDecrease

Termination &Reinstatement

Transfer

Installationdate change


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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 theyear)

Suggested workaround: Set conditions for when the contractwill get picked up for auto-renewal (create rules which break

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Use judgment in the number of lines and sub-linesthat 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 createperformance issues


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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 withlarge number of lines and sub-lines

R12

21

Standard Coverage store reference to coverage templateinstead of replicating coverage information on every serviceline


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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


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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, tangiblesubscriptions, 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


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Credit Amortization for Summarized Billing

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

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- Au - Se - Oct- Nov- Dec- Jan- Feb- Mar- A r- Ma - Jun-

Current Behavior


Instrument 10 10 10 10 10 10 11 11 11 11 11 11

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


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


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

New Behavior


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Post 12.1.3 Contracts Development

Proposed Strategy for Roadmap

Procurement, Sales Contracts & Repository Contracts

Support 2-way synchronization for contracts with clauses imported fromword

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 o e con rac

Ability to import contracts from other systems - API to create standalonecontracts


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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 integratedacquisition management solution that transforms government procurement

E

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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

I

Close-out

Post-AwardAwardOffer

EvaluationSolicitation

Pre-Solicitation

FedBizOpps ORCA FPDS-NG CCR & EPLS

PurchaseRequest


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Fusion Enterprise Contracts SIG Update

Vijay RajkumarSenior Director, Fusion Contracts Strategy


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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


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Current E-Business Contracts Footprint

OrderManagement

Sales /

Quoting

CRM Service

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

ro ect

Contracts

erv ce

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


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Enterprise

ContractsFinancialsCRM

Invoice,Revenue

CreateContract

Fusion Enterprise Contracts Footprint

Contract Admin /Sales Rep

Service

ExecutionSupply Chain,

LogisticsProjects

EntitlementsMfg, Shipping,

Procurement

Funding,

Execution


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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

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 policyrules, approval rules etc.


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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

Features

Library of standard clauses, policy

rules and templates

Wizard based authoring tool (Expert)

Deviations reporting

Redlining with MS Word

Features

Billing & revenue mgmt

Pricing and commitment enforcement

Service entitlement verification

Advanced renewal management

Contract Analytics (profitability,

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


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ECM Base Features


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Standardize Contract Processes

Manage Contract Types


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Standardize Contract Processes

Manage Standard Templates

Clauses and Sections

Variables


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Author and Collaborate

Wizard-based Authoring of Standard Contracts


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Author and Collaborate

Collaborate in MSWord and Synchronize Changes


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Flexible PDF Output

Tailor to your company standardformat

Automatic substitution of negotiatedterms in printed document without

-

Standards Based AuthoringContract Printing

Signature block

Manage all contract documents,exhibits, amendments, etc. in centralrepository


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Drive Contract Compliance

Easily Find Contracts to Verify Compliance

Search text to match incontract documents

Matching contractsMatching files


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Procurement

Contracts


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Procurement Contracts Co-ExistenceNegotiate Contracts Centrally

Fusion

EBS

PurchasingStandalone Contracts

Heterogeneous PurchasingEnvironment

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

n erpr se on rac s

Purchasing

SAP

Purchasing

Author and NegotiateContracts

Push Pricing andCommitments


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Procurement Contracts Co-Existence

Create Purchase Orders or Agreements in Purchasing


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Project Contracts


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Project Contracts Define Billing


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Project Contracts Financial Summary


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Contracts Conference

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Sessions & Demo Stations


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Conference Sessions

Monday September 20, 2010TIME TITLE LOCATION

2:00 pm 3:00 pmOracle Sourcing and Oracle ProcurementContracts: Overview and Roadmap

Moscone WestL2 Rm 2022

3:00 pm 3:45 pm Oracle Fusion Enterprise Contracts CRMLounge

Moscone SouthExhibit Hall#105

Tuesday September 21, 2010

TIME TITLE LOCATION

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2:00 pm 3:00 pmOracle Service Contracts: Hear how Oracleefficiently manages its own ever growingnumber of customer contracts

Moscone WestL3 Rm

3002/3004

5:00 pm 6:00 pmImplementing Contract Lifecycle Management

for Federal Procurement

Moscone West

L2 Rm 2022

5:00 pm 6:00 pmOracle Fusion PPM: Next Generation ProjectFinancial Management

Moscone WestL2 2005


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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 12:30am

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

Moscone West

L2 Rm 2001

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3:00 pm 3:45 pmOracle Fusion Enterprise Contracts CRMLounge

Moscone SouthExhibit Hall

#105

Oracle Demo Grounds


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Oracle Demo Grounds

PRODUCT DEMO STATION NAME LOCATIONProcurement

Contracts

ContractManagement

CLM for PublicSector

Oracle Sourcing, Contract, and SupplierManagement (EBusiness Suite)

Moscone SouthS-087

Sales Contracts Oracle Order Management (EBusiness Suite)Moscone South

S-025

49

Service Contracts Oracle Service Solutions (EBusiness Suite) Moscone South

S-080

Fusion EnterpriseContracts

Oracle Fusion Customer RelationshipManagement

Moscone SouthS-044

Fusion


Oracle Fusion ProcurementMoscone South

S-088 & 105

Fusion ProjectContracts

Oracle Fusion Project Portfolio ManagementMoscone South

S-141 & 145


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50


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Oracle OpenWorld

Latin America 2010

51

ecem er ,


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Oracle OpenWorld

Beijing 2010

52

ecem er ,


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Appendix

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contracts enhancements

Documents