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 &
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
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.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.

<Insert Picture Here>

Oracle EBS Contracts Development Update

Ramesh Iyer
Director Development

Susan Flierl
Product Strategy Director

Oracle Contract Lifecycle Management

WHAT A family of contract

applications designed to author and
manage the lifecycle of all contract
types
HOW Deployed integrated with orderto-cash and procure-to-pay flows or as
standalone application
RESULTS - Improve visibility of all
business agreements, reduce contract
cycle time, and manage risks

*Standalone product coming soon

Project
Contracts

Service
Contracts

Procurement
Contracts

Sales
Contracts

Contract
Terms
Library

Contract Repository

R12 Momentum

Number of EBS Service Contracts customers

with bugs logged on R12+ releases
40
35
30
25
20
15
10
5
0
R12

R12.1

How to get there

Service
Contracts
Sales
Contracts
Contract
Repository *

Core
Contracts

Procurement
Contracts

R11i7

R11i8

R11i9

R11i10

R12

R12.1

* Contracts Repository included in Sales & Procurement Contracts license

10

Oracle Service Contracts

R12 & R12.1 Release Overview

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

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 customers assets
11

11

R12 Standard Coverage

Description

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

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

12

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

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

13

Standard Coverage
Customizing Coverage for a Service Line
Coverage Details Form

Press Customize to update

coverage terms for the contract

Authoring Form Effectivities tab

Standard checkbox is
unchecked & Reapply Standard
button is enabled after coverage
is customized for a service line

14

R12 Administrator Workbench

Description & 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
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

15

R12 Administrator Workbench

Benefits

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

16

R12 Service Contracts Administration Workbench

Quick search for your new and renewal contracts

Displays your open contracts

17

R12 Service Contracts Administration Workbench

Personalized view of a service sales reps contracts
Manage
renewals pipeline
Update status
and forecast data
Launch contracts
to Online portal
Mass update
capabilities
Email/print quote
Enable/Disable
Reminders
Run QA Check
Submit for
Approval

18

R12 Usability Enhancements

When updating an item instance, the
user can review Impacted Contracts
View Impacted
Contracts for
Quantity Split
Quantity
Increase
Quantity
Decrease
Termination &
Reinstatement
Transfer
Installation
date change

19

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)

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

20

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
Standard Coverage store reference to coverage template
instead of replicating coverage information on every service
line

21

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 *
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

22

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
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

Proprietary and Confidential. Copyright Oracle Corporation, 2009

23

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.
Current Behavior
Instrument
Original Invoice ($3600)
Credit Memo ($600) for
subline 1
Credit Memo ($1200) for
subline 2

Jul10

Aug10

Sep10

Oct10

Nov10

300

300

300

300

300

Revenue Distribution
DecJanFeb10
11
11
300

300

(300)

300

(300)

Mar11

Apr11

May11

Jun11

300

300

300

300

(300)

(300)

(300)

(300)

New Behavior
Instrument
Original Invoice ($3600)
Credit Memo ($600) for
subline 1
Credit Memo ($1200) for
subline 2

Jul-10

Aug10

Sep10

Oct-10

Nov10

300

300

300

300

300

(100)

(100)

(100)

Proprietary and Confidential. Copyright Oracle Corporation, 2009

(100)

(100)

Revenue Distribution
DecJan10
11
300

(100)

Feb11

Mar11

Apr11

May11

Jun11

300

300

300

300

300

300

(100)

(100)

(100)

(100)

(100)

(100)

(100)

(100)

(100)

(100)

(100)

(100)

24

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

Proprietary and Confidential. Copyright Oracle Corporation, 2009

25

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

Streamline the entire acquisition process

Enable intelligence-driven decision making
Ensure accountability and transparency

Purchase
Request

FedBizOpps

PreSolicitation

ORCA

Solicitation

Offer
Evaluation

FPDS-NG

Award

CCR & EPLS

Post-Award

Closeout

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

26

<Insert Picture Here>

Fusion Enterprise Contracts SIG Update

Vijay Rajkumar
Senior Director, Fusion Contracts Strategy

Fusion Enterprise Contracts

Fusion Contracts is an enterprise-wide solution that automates the
lifecycle of all types of contractual agreements

ECM Base

Procurement

 Master agreements
 Integration to Purchasing
 Track spend

*Post V1 deliverable

Projects
 Project execution tracking
 Billing and revenue mgmt
 Subcontractor mgmt








Contract lifecycle management

Consolidated repository and search
Standards-based T&Cs authoring
Redlining with MS Word
Document management
Deviation and clause usage reporting

Sales*

 Pricing agreements
 Enforce pricing on orders
 Track fulfillment

Service*
 Coverage & subscriptions
 Billing and revenue mgmt
 Entitlements & renewals

Current E-Business Contracts Footprint

Contract
Repository

Sales Agreements and

Sales Orders with
T&Cs

Sales /
Quoting

Sales
Contracts

Visibility across all

Enterprise
Contracts

Sell Product & Service

Order
Management
Manual

CRM Service

Manual
Service Component
Sell Project & Product

Purchasing /
Buy Contracts

Sub-contractor
flow / Buy-side

Project
Contracts

Service
Contracts

Entitlements

Billing

Billing

Install Base
Project
Costing

Project
Billing

Invoices/
Revenue
Invoices

Revenue
Revenue

AP

GL

AR

Fusion Enterprise Contracts Footprint

Contract Admin /
Sales Rep

Invoice,
Revenue

Create
Contract

Enterprise
Contracts

CRM

Mfg, Shipping,
Procurement

Supply Chain,
Logistics

Funding,
Execution

Projects

Financials

Entitlements

Service
Execution

Enterprise Contracts Concepts

Contract Types
User-defined (e.g. Fixed price consulting agreement, service contract, costplus 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
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

Execution
Compliance

Standards-based
Authoring

Features

Features

Features

 Multiple contract types

 Store all contracts in a single, secure
searchable repository
 Search based on attributes and text
 Automate approvals
 Manage renewals
 Visibility in customer 360

 Library of standard clauses, policy

rules and templates
 Wizard based authoring tool (Expert)
 Deviations reporting
 Redlining with MS Word
 Contract printing
 Change management







Billing & revenue mgmt

Pricing and commitment enforcement
Service entitlement verification
Advanced renewal management
Contract Analytics (profitability,
renewal rates etc.)

Benefits

Benefits

Benefits

 Contracts visibility to key stakeholders

 Better understanding of financial and
business obligations
 Track risky relationships

 Improve regulatory and procedural

compliance
 Reduce time-to-contract and costs
 Reduce contract risk

 Avoid penalties & non-compliance

 Negotiate better contracts
 Identify revenue acceleration and cost
saving opportunities

ROI

Phased Implementation

ECM Base Features

Standardize Contract Processes

Manage Contract Types

Standardize Contract Processes

Manage Standard Templates

Clauses and Sections

Variables

Author and Collaborate

Wizard-based Authoring of Standard Contracts

Author and Collaborate

Collaborate in MSWord and Synchronize Changes

Standards Based Authoring

Contract Printing

Flexible PDF Output

Tailor to your company standard

format

Automatic substitution of negotiated

terms in printed document without
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 contracts

Matching files

Procurement
Contracts

Procurement Contracts Co-Existence

Negotiate Contracts Centrally
Heterogeneous Purchasing
Environment
EBS
Purchasing

Standalone Contracts

Fusion
Purchasing

Enterprise Contracts
Author and Negotiate
Contracts

Push Pricing and

Commitments

SAP
Purchasing

Users - Business Dev / Legal / Global Procurement

Users Buyer / Financial

Procurement Contracts Co-Existence

Create Purchase Orders or Agreements in Purchasing

Project Contracts

Project Contracts Define Billing

Project Contracts Financial Summary

Contracts Conference
Sessions & Demo Stations

46

Conference Sessions
Monday September 20, 2010
TIME
TITLE

L O C AT I O N

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

L O C AT I O N

2:00 pm 3:00 pm

Oracle Service Contracts: Hear how Oracle

efficiently manages its own ever growing
number of customer contracts

Moscone West
L3 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

47

Conference Sessions
Wednesday September 22, 2010
TIME
TITLE

L O C AT I O N

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

3:00 pm 3:45 pm

Oracle Fusion Enterprise Contracts CRM

Lounge

L2 Rm 2001
Moscone South
Exhibit Hall
#105

48

Oracle Demo Grounds

PRODUCT
Procurement
Contracts
Contract
Management
CLM for Public
Sector

D E M O S TAT I O N N A M E

L O C AT I O N

Oracle Sourcing, Contract, and Supplier

Management (EBusiness Suite)

Moscone South
S-087

Sales Contracts

Oracle Order Management (EBusiness Suite)

Moscone South
S-025

Service Contracts

Oracle Service Solutions (EBusiness Suite)

Moscone South
S-080

Fusion Enterprise
Contracts

Oracle Fusion Customer Relationship

Management

Moscone South
S-044

Fusion
Procurement
Contracts

Oracle Fusion Procurement

Moscone South
S-088 & 105

Fusion Project
Contracts

Oracle Fusion Project Portfolio Management

Moscone South
S-141 & 145

49

50

Oracle OpenWorld

Latin America 2010

December 79, 2010

51

Oracle OpenWorld

Beijing 2010
December 1316, 2010

52

53

Appendix

54