1. <Insert Picture Here>
Business Value of Upgrading to
Oracle E-Business Suite Contract Lifecycle Management
Release 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&A
The 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 business
contracts
What’s New in Contract Lifecycle Management
Procurement
Results:
Applications Supply
Technology Chain More legal bandwidth for strategic
deals
E-Business
Suite Visibility to all contract obligations,
internal and external
Financials 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 Sales
Suppliers 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 Search
Contracting
Finance &
Party
Accounting
7

8. Oracle Contract Lifecycle Management
Contract Management
Procurement Contracts
Sales Contracts
Service Contracts
Project Contracts
Oracle’s Contract Management provides a comprehensive solution
to manage your entire enterprise’s contract lifecycle from contract
drafting, 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 with
Enterprise Contract Search * New in R12.1
10
10

11. Comprehensive Authoring Policies
Establish Control and Reduce Risk
Contract 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 Authoring
12 12

13. Authoring with “Contract Expert”
Produce Compliant Contracts
Contract
Industry
• Configurable rules
Segment? drive terms selection
for complex contracts
Template
• 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 Synchronization
Quickly and Accurately Integrate Offline Redline Edits into
Contracts
• 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 Approvals
Generate 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 Deviations
Capture Clause & Policy Deviations
Establish Standards Capture Deviations
Contract 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 Search
Applicable 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 Text
Drill 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 in
support 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 Analysis
Search 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 Holds
Capabilities 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 Deliverables
Benefits
• 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 Enterprise
Report 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 Contracts
Oracle Service Contracts provides a complete contract authoring,
pricing, flexible billing and execution system to manage warranties
and 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 Collect
Customer
Customer 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 Renewals
Renew / Alert Create
• Receive automated expiration alert
Activate 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 Benefit
Replace spreadsheets, Centralized management of
complex forms and HTML Administrator renewals prevents revenue leakage
manual processes to Workbench Salesreps can perform multiple
manage renewals follow-up actions on renewals
Flexible Approval
Rules, Flexible
Assignment Rules Improves process efficiency
Lack of visibility into for Customer
renewal progress Communication Sales managers can easily track
Templates, progress of renewals
Negotiation
Workflow
Improve visibility to lost More granular tracking of
Line Level
opportunity when lines cancellation rates & reasons in
Cancellation
get 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 Benefit
Quickly implement Standard Easy to roll out policy changes
policy changes to Better performance – Authoring, Copy &
standard coverage Coverage Renewal
Customers decide how partial periods
Consistent are calculated
Partial Period
calculations for Fixed or Actual days in a period
Calculations
partial periods
Can align periods to calendar month
Daily rate / partial Partial Period Daily rate recognition for service
period recognition Revenue Recognition spanning partial calendar periods
Credit Card data consolidated &
Comply with PCI Credit Card encrypted
security 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 Benefit
Streamline Shared Multi-Org Access Author contracts in multiple OUs
Service operations Control Provide operating unit security
Prevent unexpected Preview impacted contracts when
service credits & updating products
View Impacted
changes to contract Both Service and Usage
Contracts in IB
coverage when updating Eliminate unexpected service credits and
IB changes to coverage
Customer sees both new & renewal
Improve customer contracts in Online Acceptance Portal
Enhanced Fewer requests for assistance
experience and
Customer Upload PO or attachment
streamline acceptance
Acceptance Portal
process 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 visibility
The 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.com
The 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.html
38 38

39. Questions
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40. © 2009 Oracle Corporation – Proprietary and Confidential
40