2008 11 18_contracts _oaug-sig

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2008 11 18_contracts _oaug-sig

  1. 1. Welcome To OAUG Contracts SIGQuarterly Web Conference November 18, 2008 http://contractsig.oaug.org/
  2. 2. Agenda:Introduction - Contracts SIG Chair(Chiran Sarkar, Quantum Corp.)R12 Functional Overview presentation onRenewals Enhancements - KrishnakanthTelikepalli, Oracle CorpAuto Renewal Functionality – KristenCornila, Kronos Inc.
  3. 3. R12 Functional Overview forRenewals EnhancementsKrishna Kanth TelikepalliSr. Product Manager, EBS Contracts
  4. 4. Safe Harbor Statement 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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
  5. 5. Agenda• Oracle Contracts Management Solution• Service Contracts• R12 New Features• Renewals Enhancements• Wrap Up / Q&A
  6. 6. Oracle Contracts Management Solution
  7. 7. Oracle Contract Management Products Sales Contracts Service Contracts Project Contracts DevelopProcurement Contracts Contracts Market Contract Intelligence Projects Sell HR Customers, Order Suppliers, Finance Products, … Plan Maintain Procure Service Make Fulfill
  8. 8. Oracle Contract Management Solution Oracle Service Contracts Delivery / Service Support Fulfillment Buy-Side Sell-Side Purchase Contract SalesSuppliers Contract Purchasing Administration Sales Contract Customers Oracle Procurement Contracts Oracle Repository Contracts Oracle Sales Contracts Oracle Project Contracts Oracle Service Contracts Oracle Project Contracts Legal Finance
  9. 9. Oracle Contract Management Solution Integrated Intelligence Sales • Cancellation / • Uplift & • Contract Email Renewal Rate Reduction Bookings Service Contract Lifecycle Management Phone Renew & Support Draft & Fulfill & Enforce Optimize Negotiate Store & Entitle Terminate Internet • Collaborative Authoring • Change Mgmt • Workflow Approvals Projects Global Contracts Library Standardized Templates Legal • Version Secure • Terms & Conditions Controlled Access • LegalContracting • Compliance Finance & Party Accounting
  10. 10. Oracle Service Contracts
  11. 11. Oracle Service ContractsProduct Overview• Sell different types of services on a contract• Define standard coverage terms and entitlements for service offerings• Bill accurately based on actuals or estimates• Analyze renewals for recurring revenue opportunities• Provide Business Intelligence
  12. 12. Sell Multiple Services on a ContractLeverage Common Price, Bill and Renewal Capabilities• Warranty and Extended Warranty • Include warranties or extended warranty on sales orders • Synchronize warranty date information with Install Base• Cover Products, Items, Systems, Sites, Customers & Parties• Usage • Monitor product usage with counters • Bill for estimated or actual usage • Adjustments for counter or amount based termination• Subscription • Sell tangible and intangible subscriptions • Complete fulfillment flow for tangible subscriptions • View subscription delivery status from contract • Manage pricing, billing and renewals from contract
  13. 13. Coverage and EntitlementAccelerate Customer Response and Reduce Exposure • Coverage Times Instantaneous Verification • Response Time Commitments Service Contracts • Discounts Repository • Resource Customer Notifications PreferencesCustomers Service • Expirations • Time Zone • Renewals & Breaks Install Base Integration • Transfers • Returns • Replacement Reduce Service Increase Customer Entitlement Violations = Satisfaction and Loyalty
  14. 14. Automated, Accurate BillingEliminate Pricing and Billing Errors Regular Service Fees • Define customer billing terms -- timing, amount • Recurring fees Time • Annual support contracts • Price accuratelyBased (inc. renewal fees) • Ensure appropriate • Charge for coverage of discounts & surcharges products or product groups are applied • Control invoicing Volume & Incident Based Billing frequency date & amount • Counter-based readings • Preview & automaticallyUsage generate invoice from AR • Include price breaks priorBased to determining total • Track billing history on • Support estimated or contract -- invoice actual usage numbers, applicable tax
  15. 15. Streamline Contract Renewal Process Reduce Service Revenue Leakage Create Opportunity • Receive automated alerts in advance of expiration • Utilize flexible renewal rulesRenew Quote and pricing methods • Leverage flexible pricing methods • Renew specific line items or entire contract • Support renewal consolidation • Track contract renewals though sales forecasts Ongoing Activate Mgmt Contract Enable Sales to Proactively Manage Renewals
  16. 16. R12 New Features
  17. 17. R12- New Features • Contract Authoring Enhancements • Standard Coverage • Line Level Cancellation • Multi-Org Access Control • Publish Contract for Online Acceptance • Contract Billing and Revenue Enhancements • Partial Period Billing • Partial Period Revenue Calculation • Credit Card Encryption
  18. 18. R12 - New Features • Contract Renewal Enhancements • Administrator Workbench • Renewal Negotiation Workflow • Enhance Customer Acceptance Portal • Enhanced Installed Base Integration • View Impacted Contracts in Install Base • IB Mass Updates – Service impact • Improved Search and Inquiry Capabilities • HTML Contract Search
  19. 19. Renewal Enhancements
  20. 20. New and Changed Features forService Contracts Renewals• Renewal Negotiation Lifecycle Management• Administrator Workbench• Improvements to Online Acceptance Portal• Enhanced Communication Templates• Flexible Approval Rules• Enhanced Auto-Reminder Process
  21. 21. Service Contracts RenewalsProcess• Managing Service Contract renewals • Segment renewal base & assign renewal rules Set Set Set Assign Thresholds Approval Payment Templates Rules Options Business Analyst • Manage “My Contracts” in Administrator Workbench Review Follow-up Update Publish to Open with Contracts Customer Renewals customers Salesperson • Customer reviews contracts in Online Acceptance Portal Review Accept / Log into Customer Open Reject / Portal Renewals Assistance
  22. 22. Renewal Negotiation Lifecycle ManagementDescription • To better manage and track your renewal negotiation, all renewal contracts will be managed through a renewal negotiation workflow • Negotiation Status: More granular status tracking to allow proactive process monitoring and improved visibility during the contract negotiation lifecycle • Internal and External Notifications to alert users: New and improved notifications to contract administrators and customers of actions that they need to take on open contracts • New Approval Options: Support for various contract approval scenarios ranging from manual to fully automated approvals
  23. 23. Renewal Negotiation Lifecycle ManagementBenefits• Enables proactive renewal management with notifications and status tracking• Provides better visibility to management on progress of renewal contracts
  24. 24. Renewal Negotiation Lifecycle ManagementProcess • Renewal Negotiation Lifecycle consists of 5 key steps outlined in the process flow above • All Renewals can be classified into three categories • Manual or Contract Administrator Driven Renewals • Online Renewals • Evergreen Renewals • Negotiation status, a new attribute on the contract header, enables users to track the progress of the renewal negotiation process
  25. 25. Renewal Negotiation Lifecycle ManagementManual Renewal Process – Next Steps• Notify Customer • 3 Options on how the customer can be notified on the pending contract • Print or Email • Publish quote online using the Online Acceptance Portal • Template set setup determines the format of the quote• Customer Acceptance • 2 Options on how the quote can be accepted • Manually by salesperson • Explicitly by customer if the quote has been published online• Contract Approval and Activation - For manual contracts internal approval is optional and is determined by approval flag. If approval is required, salesperson submits for approval - Once contract is approved, workflow activates the contract
  26. 26. Renewal Negotiation Lifecycle ManagementOnline Renewal Process – Next Steps• Customer Notification • Quote is automatically published to the online portal through workflow • Customer contact gets an email with online portal login information • Template layout setup determines the format of the quote published• Customer Acceptance • 2 Options on how the quote can be accepted • Manually by salesperson: Customer Acceptance is implicit • Explicitly by customer from the Online Acceptance Portal• Internal Approval and Activation - 3 Options for Internal Approval • Manual: Salesperson has to manually submit contract for approval • Automatic: Contract is submitted for approval right after customer acceptance from the online portal • Not Required: Contract can be activated without internal approval
  27. 27. Renewal Negotiation Lifecycle ManagementEvergreen Renewal Process – Next Steps• Notify Customer • Customer is not notified automatically • Salesperson can email quote to the customer• Customer Acceptance • Customer acceptance is assumed• Internal Approval and Activation - 2 Options for Internal Approval • Required: Contract is submitted for internal approval right after renewal and activated once approved • Not Required: Contract can be activated without internal approval
  28. 28. Renewal Negotiation Lifecycle ManagementNegotiation Status Transitions
  29. 29. Renewal Negotiation Lifecycle ManagementNegotiation Status- Workbench and Authoring -Negotiation Status indicates current workflow status of the contract -Seeded views use negotiation status as filter criteria
  30. 30. Renewal Negotiation Lifecycle Management Alerts and Notifications• Workflow sends alerts and notifications to both internal and external users during the negotiation lifecycle• The following diagram shows the various alerts and notifications sent out during various stages of the renewal negotiation lifecycle
  31. 31. Administrator WorkbenchDescription• 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 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
  32. 32. 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
  33. 33. Administrator WorkbenchHomepage Quick Search enables users to search for new and renewal contracts Notifications for contracts that need attention Shortcuts use Users can enable users My In Process to perform other shortcuts to perform Contracts bin displays actions other actions all open contracts in the user’s queue
  34. 34. Administrator WorkbenchSeeded Contracts Bins - Default seeded bin with seeded views - Displays all contracts where current user is the vendor contact -All in-process contracts -User can define views to filter contracts -Bin has to be enabled using OA Framework personalize features
  35. 35. Administrator Workbench My In Process Contracts - Views Seeded Views enable administrators to view their contracts using various filter criteriaView DescriptionAll In Process Contracts All new and renewal contracts in Entered statusFollow-Up Actions All contracts for which a follow-up action has been enteredOnline Quotes All contracts having Quote Published negotiation status i.e. quote has been published online for customer acceptancePending Internal Approval All contracts having Pending Internal Approval negotiation statusPending Quotes All manual and online contracts in entered status that are not pending approval or pending activationPending Salesrep All contracts having Assistance Required negotiation statusAssistanceReminder Sent All contracts that are waiting for customer action (Negotiation Status = Quote Sent or Quote Published), for which reminders have been sent.Renewals All contracts that have been renewed and are currently In Process.
  36. 36. Administrator WorkbenchDefining personalized views Administrator can use the personalize option to create new views Standard OA Framework functionality can be used to create new views
  37. 37. Administrator Workbench My In Process Contracts Bin - DetailsIcon Indicates auto- Negotiation Status Contracts with follow- Search results canreminders have been indicates current up actions and due be sorted by variousdisabled workflow status of the date for those actions attributes contract are available
  38. 38. Administrator WorkbenchMy In Process Contracts Bin -Actions Multi-contract actions (upper) and single contract actions (lower) These actions are controlled by function security. Administrators can enable these actionsWorkbench – Negotiation actions from single place for specific users Action Description Publish to Customer Publish contracts for online acceptance Submit for Approval Submit contracts for internal approval Disable Reminders Disable auto reminders from being sent to customers Enable Reminders Enable autoreminders if they have been disabled for selected contracts Run QA Check Run QA check on selected contracts Open Contract Opens the selected contract in Authoring form Email Customer Opens the email page with selected contract information defaulted Print Quote Prints the quote in pdf format
  39. 39. Administrator WorkbenchMy In Process Contracts Bin – EmailAction User navigates to the email customer page from the workbench using the Email Customer action Email page will have To, From and Subject defaulted –User can define a message and attachment using template sets –Message template and attachment template LOVs show all available XML publisher templates for the contract User can also specify a message instead of using a message template
  40. 40. Improvements to Online Acceptance PortalDescription • Low value, high volume contracts can be automatically presented to customers for review and acceptance via an online portal • Salesreps now have the ability to manually publish in-process contracts to customers for online review and acceptance
  41. 41. Improvements to Online Acceptance PortalBenefits• Reduces manual processes and paperwork to obtain customer acceptance• Increase salesrep efficiency by automating customer acceptance• Improves customer satisfaction by providing enhanced payment methods and document upload capabilities online
  42. 42. Improvements to Online Acceptance PortalHow to use this feature Online Renewal Portal uses the Oracle Single Signon functionality to logon to the acceptance portal Customers can retrieve forgotten usernames and passwords themselves instead of having to contact system administrators
  43. 43. Improvements to Online Acceptance PortalPending Service Contracts Available actions are – accept, decline and request assistanceContracts pending Flag indicates that the Clicking quote displayssalesrep assistance are pending contract is a quote in .pdf formatmarked. These contracts renewalcan be accepted ordeclined Customer can perform actions on new and renewal contracts of Service Agreements, Extended Warranty and Subscription categories
  44. 44. Improvements to Online Acceptance Portal Online Customer Acceptance – Payment PageUsers can attach a document such as theimage of a PO or check Only acceptable payment methods based on regional requirements are exposed. Users can enter both new and existing credit cards
  45. 45. Improvements to Online Acceptance PortalRequest Assistance Customer can request salesrep for assistance on a specific contract Salesrep email and subject are defaulted Customer comments are tracked as interaction on the contract
  46. 46. Enhanced Communication TemplatesDescription• Enhanced Communication Templates • Integration with XML Publisher: Service Contracts integrates with XML Publisher to support user-defined layout templates for customer communication documents • Templates for multiple processes: Template Set setup functionality has been enhanced to support templates for different processes – Online and Manual processes for both new and renewal contracts • Language Support:A single Template setup will support multiple languages
  47. 47. Enhanced Communication TemplatesBenefits• Contract Administrators can now define whether a set of document templates is used for new contracts or renewal contracts• Users also have the option to specify whether document templates should be used for salesrep managed contracts or for online acceptance contracts• Reduces setup time required to setup templates for various languages.
  48. 48. Enhanced Communication TemplatesSetup – Define Template Set Process: Manual, Online or Both Document Type • Quote Letter • Cover Letter • Reminder Letter • Acceptance Confirmation • Cancellation Letter • Activation Confirmation • Any User Defined type Applies to:New, Renewal or Both Message Template: Message template used for customer communications Attachment Template: Attachment template used for attachments in customer communications Attachment Name:Filename for the attachment
  49. 49. Flexible Approval RulesDescription • Standard contract approval workflow integrates with Oracle Approvals Management (AME) to drive the approval process • Standard approvals management features such as rules based approval routing, definition of approval groups, et al. are supported
  50. 50. Flexible Approval RulesBenefits• Increased flexibility in creating sophisticated approval rules based on contract attributes• Streamlines approvals by enabling approvals in parallel - for example - Business and legal approvals can be in parallel
  51. 51. Flexible Approval RulesSetupAME Setup 1. Create new Service Contract Attributes in AME (if needed) 2. Define an AME Condition based on the attributes 3. Define an AME Approval Group containing approvers as members 4. Define an Action in AME 5. Define a Rule based on Conditions and Actions
  52. 52. Flexible Approval RulesSetup – 1. Creating New Attributes Seeded attributes available for defining Conditions - • Contract ID • Operating Unit • Customer Party • Contract Category • Contract Amount
  53. 53. Flexible Approval RulesSetup – 2. Define Condition - Condition Type can be Ordinary or Exception - All Seeded attributes available for defining Conditions Condition is CONTRACT_AMOUNT > 5000 and less than 25,000
  54. 54. Flexible Approval RulesSetup – 3. Define Approval Group Selected Approver for this approval group
  55. 55. Flexible Approval RulesSetup – 4. Define an Action Action defined will be used later in the approval rule
  56. 56. Flexible Approval RulesSetup – 5. Define rule using conditions and actions
  57. 57. Flexible Approval RulesTesting Approval Rules Once the approval rules have been created the AME test workbench can be used to test the conditions When the test case is run, the following pages displays the derived approver
  58. 58. Enhanced Auto-Reminder Process Description• Auto-reminder process has been enhanced to send reminders for both manual and online renewals• Contract Administrators also have the ability to disable or enable reminders for contracts that they do not wish to send reminders to customers for
  59. 59. Enhanced Auto-Reminder ProcessBenefits• Enables contract administrators to remind customers that contracts need their attention• Automates reminder process for both manual and online contracts
  60. 60. Enhanced Auto-Reminder ProcessSetup• Template set layout • Template set for the contract has to be setup to send reminders on specific intervals before current contract expiration
  61. 61. Enhanced Auto-Reminder ProcessHow to use this feature • Auto-reminder process can be used for both manual and online contracts • Online Contracts • Process will select all contracts for which quote has been published online • Manual Contracts • Contract Status will be used to send reminders • When the auto-reminder process request is run, the first reminder will be sent and the contract will be flagged with a reminder sent flag • Subsequent reminders will be send automatically
  62. 62. Enhanced Auto-Reminder ProcessHow to use this feature •For manual reminders, the contract status has to be specified as a parameter •This will typically be a one time setup •In this example, the auto-reminder process is set to send reminders for all contracts in ‘Quote Sent’ status
  63. 63. Oracle eBusiness:Service Contract RenewalsKristen Cornila,Sr. Business Systems Analyst 63
  64. 64. About Kronos Incorporated Global Human Capital Management Software Company $715 million in annual revenue (Fiscal 2008) 3400 Employees worldwide Customers in more than 60 countries 64
  65. 65. Oracle eBusiness SuiteImplementation overview April 2005: Revenue Business Processes using 11.5.9 Quoting, Configurator, Order Management, Advanced Pricing, Inventory, Shipping/Receiving, Receivables, iPayment, Advanced Collections, General Ledger, Cost Management, Install Base, and Service Contracts. October 2006: Cost Business Processes using 11.5.9 Planning, Work in Process, Bills of Materials, Quality, Purchasing, iProcurement, Accounts Payable, Fixed Assets and Cash Management April 2008: Upgrade to 11.5.10 completed 65
  66. 66. Agenda Service Contracts at Kronos Renewals at Kronos, custom logic Renewal Challenges Best Practice Collaboration ‘Survey’ 66
  67. 67. Service Contracts at Kronos Standard Warranty and Service Agreements are interfaced from OM Approximately 1000 sales orders per month; 93% orders sold to existing customers added to existing Service Contract Service Contracts contain products with varying start and end dates: Software – service agreement begins on ship date Hardware – service agreement begins after 90-day warranty Add-on products & upgrades sold throughout contract period 67
  68. 68. Service Contracts at Kronos (con’t) Products are generally sold with one-year service coverage; not co-term’d upfront Strive to consolidate all products into one service contract per customer Average contract contains 30 lines 68
  69. 69. Renewals at Kronos Which end date triggers renewal? Example: Header 01-JAN-07 – 31-MAY-08 SFW 01-JAN-07 – 31-DEC-07 HDW 01-APR-07 – 31-MAR-08 SFW 01-JUN-07 – 31-MAY-08 Standard Oracle – Header End Date 31-MAY-08 Kronos custom – Earliest subline end date 31-DEC-07; No lapse in service coverage 69
  70. 70. Renewals at KronosEvergreen Renewal Process Example: Renewal Start Date 01-JAN-2008Active Contract: 1177555 Gold (SW): 01-JAN-2007 – 31-DEC-2007 (12-month price) Depot Exchange (HW): 01-APR-2007 – 31-MAR-2008 (12-month price)Renewal Pre-Invoice Renewal Dunning Renewal CancellationCreation Review, Quote & invoice letters Start (if unpaid) Approval120 Days Prior 120-60 days Prior 60 Days Prior 30 days Prior and Entitlement continues, 30 days after renewal At renewal start date even if unpaid01-SEP-2007 01-SEP-2007 01-NOV-2007 01-DEC-2007 01-JAN-2008 01-FEB-2008 through and 31-OCT-2007 01-JAN-2008Renewal Contract: 1177555 R01-SEP-08 Gold (SW): 01-JAN-2008 – 31-DEC-2008 (12-month price) Depot Exchange (HW): 01-APR-2008 – 31-DEC-2008 (9-month price) Standard Markup % applied Custom logic Coterminates and Prorates pricing 70
  71. 71. Renewals at Kronos Other key features of Kronos custom renewal program Enforce item obsolescence dates using item’s pending statuses Update billing schedules (offset days) to ensure one scheduled invoice date Auto-set critical fields, ex: Transaction Type, A/R Interface Flag, Invoice Print flag Consolidate service lines Renumber lines Custom Approval Workflow $ thresholds, contract type (determined by modifier), and contract group determine Approver 71
  72. 72. Renewals at Kronos: Challenges Kronos’ business process involves intense manual review of each contract prior to generating email quote for customer acceptance. Approximately 1000 renewal contracts generated per month, containing 30,000 lines Custom solution design in process to develop Automated Renewal Checklist to increase efficiency of this process Software upgrades – manually transfer $’s from ‘old’ version to ‘new’ version; no systematic replacement (‘many to one’ scenario) 72
  73. 73. ‘Survey’ Questions Looking for your feedback: 1. What is your renewal process and/or challenges? 2. How do you handle product replacements or upgrades? 3. How do you calculate Contract Retention Rate?Please send to: kristen.cornila@kronos.com I will consolidate results and distribute to the group for true best practice collaboration! 73
  74. 74. ©2008, Kronos Incorporated. Kronos, and the Kronos logo are registered trademarks and “Experts at Improving the Performance of People and Business” is a trademark of Kronos Incorporated or a related company. All other products or company names mentioned are used for identification purposes only and may be trademarks of their respective owners. All rights reserved. Printed in the U.S.A. 74

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