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2009 08 25_business value of upgrading to oracle e-business suite contracts release 12.1
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2009 08 25_business value of upgrading to oracle e-business suite contracts release 12.1



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  • 1. <Insert Picture Here>Business Value of Upgrading toOracle E-Business Suite Contract Lifecycle ManagementRelease 12 and 12.1 Susan Flierl Product Strategy Director
  • 2. Agenda • Release 12.1: Delivering Value in Uncertain Times • Key Business Challenges • Oracle Contract Lifecycle Management • Business Value of Release 12 & 12.1 – Contract Management – Sales Contracts – Procurement Contracts – Service Contracts • Summary • Q&AThe above reflects Oracle’s current development plans which are subject to change at any time 2
  • 3. R12.1 Delivering Value in Uncertain Times Focus on Opportunities to Achieve Rapid Return Today Invest in Ways to Standardize and Simplify with a Global Business Platform 3
  • 4. Expand oversight over all businesscontractsWhat’s New in Contract Lifecycle Management Procurement Results:Applications SupplyTechnology Chain More legal bandwidth for strategic deals E-Business Suite Visibility to all contract obligations, internal and externalFinancials Human Capital& Projects Assess commercial and legal Customer & opportunity and risk Master Data Management 4
  • 5. Operational Challenges Manual document Delivery / Service Support Business owners handling creates Fulfillment lack visibility to multiple “out of signed contracts synch” versions Buy-Side Sell-Side Purchase Contract SalesSuppliers Contract Purchasing Administration Sales Contract Customers v.1 v.2 Lack of contract visibility Sequential work leads to “evergreen” processes lengthen contracts, overpayments negotiation cycle time Legal Finance and payment errors 5
  • 6. Oracle Contract Lifecycle Management Overview• WHAT – A family of contract applications designed to author and Project Service Contracts Contracts manage the lifecycle of all contract types• HOW – Deployed integrated with order- Procurement Sales to-cash and procure-to-pay flows or as Contracts Contracts independent application Contract Terms Library• RESULTS - Improve visibility of all business agreements, reduce contract Contract Repository cycle time, and manage risks (Oracle Contract Management*) *Separate product coming soon 6
  • 7. Oracle Contracts Solution Business Process Overview Integrated Intelligence Sales • Cancellation / • Uplift & • Contract Email Renewal Rate Reduction Bookings Service Contract Lifecycle Phone Optimize, Optimize, Support Negotiate Negotiate Approve Approve Enforce Enforce Renew & Renew & & Author & Sign & Entitle Amend Amend & Author & Sign & Entitle Terminate Terminate Internet • Collaborative Authoring • Change Mgmt • Workflow Approvals Procurement Contract Standardization Contract Visibility • Clause Library • Contract Legal • Contract Templates Workbench • Selection Rules Secure Secure • Enterprise Contract • Policies Access Access SearchContracting Finance & Party Accounting 7
  • 8. Oracle Contract Lifecycle Management Contract Management Procurement Contracts Sales Contracts Service Contracts Project ContractsOracle’s Contract Management provides a comprehensive solutionto manage your entire enterprise’s contract lifecycle from contractdrafting, negotiation, approval, storing and repository, compliance and renewals through contract optimization. 8
  • 9. R12.1 Oracle Contract Management ACCELERATE CONTRACT CYCLE TIME Automate contract drafting with Contract Expert Standardize terms and conditions with Contract Templates and Terms Library Integration Streamline edits and redlining with MS Word Synchronization SUPPORT GLOBAL CONTRACT ORGANIZATION Single contract authoring tool with Repository Contracts Support global contract administration with Multi-Org Access Control Improve contract administration with Contract Workbench DRIVE CONTRACT COMPLIANCE Reduce policy deviations with Contract Deviation Report Improve contract visibility with Enterprise Contracts Search 9
  • 10. Structured authoring in Contract Repository Business Process 1. Establish 2. Author & 3. Approve Standards Negotiate and Sign • Clause library • Contract Terms Library • Online collaboration• Contract templates Integration (Templates & • Flexible AME approval Clauses) workflow • Clause selection rules • Contract Expert • Contract Standards and • MS Word Synchronization Deviations 4. Monitor 5. Amend 6. Renew & Closeout and Track • Associate to business • Collaborative revision • Expiration alerts document process • One-click renegotiation • Real-time deliverable • Amendment approval flow • Standardized closeout tracking • Auditable revision history process • Full-text search withEnterprise Contract Search * New in R12.1 10 10
  • 11. Comprehensive Authoring PoliciesEstablish Control and Reduce RiskContract Creation Edit & Approval Document Generation Policies Policies Policies • Automatic • Mandatory clause • Standard layout by application of all enforcement business unit and relevant clauses document type and deliverables • Role-based change control • Flexible approval• Access control by hierarchy business unit and • Pre-approved document type alternate clauses • Exceptions flagging for legal review• Standard section • Incompatible clauses use enforcement • Automated • Automatic contract numbering formats validation 11
  • 12. Contract Authoring12 12
  • 13. Authoring with “Contract Expert”Produce Compliant ContractsContract Industry • Configurable rules Segment? drive terms selection for complex contractsTemplate • Clauses default based Government Commercial on product, supplier, . contract value, etc. . . • Author high quality Over $50k? contracts with minimal legal supervision No Yes Draft Responses Drive Add Clauses Clause Selection • High Value • Insurance Contract 13
  • 14. Automated MS Word SynchronizationQuickly and Accurately Integrate Offline Redline Edits intoContracts • Streamline internal and external collaboration and by allowing key Contract stakeholders to be involved Administrator in the contract review process Synchronize Download • Improve contracting efficiency while reducing effort • Minimize errors and risk from manual updates Legal External Review Acceptance Legal External Company 14
  • 15. Contract Deviation Report Increase compliance and expedite ApprovalsGenerate Deviations Report• Accelerate approval cycles by highlighting changes to corporate standards• Route approvals based on existence of non-standard terms• View redline comparisons of modified terms to standard• View business terms deviations• Export deviations report to MSWord 15
  • 16. Contract Standard DeviationsCapture Clause & Policy DeviationsEstablish Standards Capture DeviationsContract Terms Library Clause Deviations Policy Deviations Contract Terms Library Establish: Identify: Identify violations based on: • Standard contract • Non-standard clauses • Commercial terms templates • Additions, deletions & • Responses to questions• Policy deviation rules section modifications • User-defined variable • Excluded expert- values suggested clauses • Improved corporate policy compliance • Enhanced visibility to policy exception • Reduced occurrence of business policy violation 16
  • 17. Enterprise Contracts Search Oracle Secure Enterprise SearchApplicable to Structured criteria Searched documents• Contract Management • Contract number • Contracts• Sales Contracts • Contract name • Contract documents• Procurement Contracts • Supplier/customer/party name• Terms • Contract status • Attachments • Start date and End date 17 17
  • 18. Search Contract TextDrill Directly into Source Contract Data 18 18
  • 19. Oracle Contract Lifecycle Management Contract Management Procurement Contracts Sales Contracts Service Contracts Project Contracts Oracle Sales and Procurement Contracts standardize contracts and ensure contract compliance while accelerating cycle-time insupport of centralized contract organizations within your enterprise. 19
  • 20. Oracle Procurement Contracts Process Flow Standardize Terms, Accelerate Negotiation, Drive Compliance 1. Establish 2. Author & 3. Approve Standards Negotiate and Sign • Central terms library • Templates & role-based • Online collaboration authoring • Workflow • Flexible approval workflow configuration • Substitute & non-std clauses • Electronic & digital signature • Clause selection rules • Supplier paper •Contract Deviation Report • MS Word Synchronization 4. Monitor 5. Amend 6. Renew & Closeout and Track • Contract Workbench • Collaborative revision • Expiration alerts • Terms implementation process • One-click renegotiation• Real-time deliverable tracking • Amendment approval flow • Standardized closeout process • Full-text search with • Auditable revision history Enterprise Contract Search • Clause Usage Analysis 20
  • 21. R12.1 Oracle Procurement Contracts ACCELERATE CONTRACT CYCLE TIME Streamline edits and redlining with MS Word Synchronization Accelerate contract negotiation with Contract Terms as Attached Document Expedite clause and template approval with Approve Contract Template and Clauses in Single Step SUPPORT GLOBAL CONTRACT ORGANIZATION Support global contract administration with Multi-Org Access Control Improve procurement contract administration with Procurement Contracts Workbench Improve procurement contract visibility with Enterprise Contracts Search Faster review and payment for complex contract payment with Deliverable Payment Holds DRIVE CONTRACT COMPLIANCE Reduce policy deviations with Contract Deviation Report Assess risk and enforce compliance with Clause Usage Analysis Authenticate contract signatures with Enhanced Electronic Signature Process 21
  • 22. Clause Usage AnalysisSearch Contracts To Analyze Clause Usage & Modification Quickly determine number of incidents Identify and view contracts with non- standard clauses • Improved legal discovery on contracts across multiple organizations • Better insight into effectiveness of current standard language usage • Enhanced visibility into contract standards requiring revision 22
  • 23. Deliverable Payment HoldsCapabilities and Benefits• Oracle Procurement Contract will display a new Region of “Initiate Payment Hold”• Payment holds may be set based on days prior to due date, and when deliverable is overdue• Available for Contractual DeliverablesBenefits• PO Deliverables maintained in Oracle Purchasing will be used to track deliverables like insurance and certification requirements.• Users will have the ability to initiate payment holds on all future invoices when a deliverable approaches its due date or when a deliverable becomes overdue. 23 23
  • 24. Oracle Sales Contracts Process Flow Associate terms & conditions on quotes, sales agreements or sales orders Draft Sales Apply Terms & Preview Negotiate Modify Agreements Conditions Contract Commitment Contract Copy standard •Change product/ price, Capture Products T’s & C’s, add Review on- Capture commits, add non-standard articles and Pricing default articles line or print start/end dates •MS Word Synchronization Submit for Execute Generate Monitor Manage Approval Contract Sales Order Compliance Performance Release against/ •Clause Usage• Internal/external Sign, record order from sales Analysis Identify, escalate,approvals and notify agreement •Full-text search resolve issues• Contract Deviation with EnterpriseReport Contract Search 24
  • 25. R12.1 Oracle Sales Contracts ACCELERATE SALES CYCLE Streamline edits and redlining with MS Word Synchronization Tailored sales contract creation on Web Store with Contract Expert for iStore SUPPORT GLOBAL CONTRACT ORGANIZATION Support global contract administration with Multi-Org Access Control Improve sales contract administration with Sales Contracts Workbench Improve sales contract visibility with Enterprise Contracts Search DRIVE CONTRACT COMPLIANCE Reduce policy deviations with Contract Deviation Report Assess risk and enforce compliance with Clause Usage Analysis Increase contract awareness and usage with Access Contracts from Oracle Sales 25
  • 26. Sales Contract Workbench Improve Contract Administration Workbench Sales Contract Rep Admin • Collaborative sales/contract administration work teams • Role based access Contract Process Fused with Sales Process Quote / Terms &Sales Order + Conditions Contract 26
  • 27. Oracle Contract Lifecycle Management Contract Management Procurement Contracts Sales Contracts Service ContractsOracle Service Contracts provides a complete contract authoring,pricing, flexible billing and execution system to manage warrantiesand extended warrantees, usage and subscription-based services, as well as complex service agreements within your enterprise. 27
  • 28. Oracle Service Contracts Solution Service Provider / Product Manufacturer 1 Proposals, Quotes Ord Define Sales ers 2 Products & Warranties Coverage Subscription, Usage Agmts Create Service Contract 3 Bill & Invoice Contracts T&Cs Verify Repository Entitlement R Contract Mgr e 4 Service Requests n Provide Service e w nts me Bill & 5 Renewal Notifications itle Ent CollectCustomerCustomer Service Returns, RMAs Integration Other • AR, Invoicing • Service Application Components • OM, Quoting • Install Base 28
  • 29. Streamline Renewals Management Predictably Protect and Grow Recurring Revenue Expiration High Value RenewalsRenew / Alert Create • Receive automated expiration alertActivate Opportunity • Convert expiring contracts into sales opportunities • Evaluate complementary products / services for cross-sell & up-sell opportunities • View transaction and interaction history Quote Negotiate Renewal Rule New Contract High Volume Electronic Renewals • Automatically renew contracts based on pre-defined rules to maximize retention rates and ensure service continuity • Credit Status = OK • Update Contract • Contract > Threshold • Notify Sales /• Zero-touch web based process automatically Value Value Service Rep renews low value contracts upon expiration • Expire days < 30 • Notify Customer 29
  • 30. Release R12.1: Oracle Service Contracts UPLIFT SERVICE REVENUE Improved renewal rate analysis Faster renewal cycle times Visibility into renewal contract status STREAMLINE CONTRACT ADMINISTRATION Support global contract organization Streamline customer interactions Improve service contract visibility when managing customer’s assets INCREASE COMPLIANCE Comply with revenue recognition standards Comply with security standards Standardized warranty coverage 30
  • 31. Uplift Service Revenue • Improved renewal rate analysis Business • Faster renewal cycle times Value • Visibility into renewal contract status Market Need R12 Provides BenefitReplace spreadsheets, Centralized management ofcomplex forms and HTML Administrator renewals prevents revenue leakagemanual processes to Workbench Salesreps can perform multiplemanage renewals follow-up actions on renewals Flexible Approval Rules, Flexible Assignment Rules Improves process efficiencyLack of visibility into for Customerrenewal progress Communication Sales managers can easily track Templates, progress of renewals Negotiation WorkflowImprove visibility to lost More granular tracking of Line Levelopportunity when lines cancellation rates & reasons in Cancellationget canceled Service Intelligence 31
  • 32. Administrator Workbench Quick Search for new and renewal contracts Displays your open contracts 32
  • 33. Increase Compliance • Comply with revenue recognition standards Business • Comply with security standards Value • Standardized warranty coverage Market Need R12 Provides BenefitQuickly implement Standard Easy to roll out policy changespolicy changes to Better performance – Authoring, Copy &standard coverage Coverage Renewal Customers decide how partial periodsConsistent are calculated Partial Periodcalculations for Fixed or Actual days in a period Calculationspartial periods Can align periods to calendar monthDaily rate / partial Partial Period Daily rate recognition for serviceperiod recognition Revenue Recognition spanning partial calendar periods Credit Card data consolidated &Comply with PCI Credit Card encryptedsecurity standards Security Select existing card or create card 33
  • 34. Streamline Contract Administration • Support global contract organization Business • Streamline customer interactions Value • Improve service contract visibility when managing customer’s assets Market Need R12 Provides BenefitStreamline Shared Multi-Org Access Author contracts in multiple OUsService operations Control Provide operating unit securityPrevent unexpected Preview impacted contracts whenservice credits & updating products View Impactedchanges to contract Both Service and Usage Contracts in IBcoverage when updating Eliminate unexpected service credits andIB changes to coverage Customer sees both new & renewalImprove customer contracts in Online Acceptance Portal Enhanced Fewer requests for assistanceexperience and Customer Upload PO or attachmentstreamline acceptance Acceptance Portalprocess Improved payment options Self-service password mgmt 34
  • 35. Service Contract Import Program• Description – Supports Import for • Fully billed/unbilled Service • Warranty & Extended Warranty • Intangible Subscription Contracts – From legacy systems or 3rd Party applications• Benefits – Support heterogeneous systems 35
  • 36. Summary Business Benefits in Release R12.1 • Administer contracts centrally to drive revenue and savings opportunities • Expand reach of legal/contract administration to increase competitive advantage • Ensure compliance by increasing contract oversight and visibilityThe above reflects Oracle’s current development plans which are subject to change at any time 36
  • 37. Contacts Product Strategy Susan.Flierl@oracle.com: Sales and Service Contracts, Contract Management Bill.Tokheim@oracle.com: Procurement Contracts, Contract Management Product Management Kim.Carter@oracle.com Krishnakanth.Telikepalli@oracle.comThe above reflects Oracle’s current development plans which are subject to change at any time 37
  • 38. Additional Resources • For more release information on MetaLink • https://metalink.oracle.com/metalink/plsql/ml2_documents.showDocu ment?p_database_id=NOT&p_id=403259.1 • For more information about Oracle Applications • http://www.oracle.com/applications/home.html • For more information about Education • http://www.oracle.com/education/index.html • For more information about Support • http://www.oracle.com/support/ • For MetaLink information • http://metalink.oracle.com/ • For Oracle Product documentation: • http://www.oracle.com/technology/documentation/applications.html38 38
  • 39. Questions • To ask a question, move your cursor to the top of the screen and select the ‘bubble’ icon next to the moderator’s name. • A dialog box will open. Enter your question and select “Send.”© 2009 Oracle Corporation – Proprietary and Confidential 39
  • 40. © 2009 Oracle Corporation – Proprietary and Confidential 40