2008 11 18_contracts _oaug-sig
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The document provides an overview of enhancements to Oracle's service contract renewals functionality in R12. Key highlights include: - A renewal negotiation lifecycle management system to better track renewal progress. - An administrator workbench that consolidates views of in-process contracts and enables actions like publishing contracts online. - Improvements to the online customer acceptance portal, including automated publishing of contracts and enhanced payment options. - Enhanced communication templates integrated with XML Publisher to support customizable layouts for different processes and languages.
2008 11 18_contracts _oaug-sig
- 1. Welcome To OAUG Contracts SIG Quarterly Web Conference November 18, 2008 http://contractsig.oaug.org/
- 2. Agenda: Introduction - Contracts SIG Chair (Chiran Sarkar, Quantum Corp.) R12 Functional Overview presentation on Renewals Enhancements - Krishnakanth Telikepalli, Oracle Corp Auto Renewal Functionality – Kristen Cornila, Kronos Inc.
- 3. R12 Functional Overview for Renewals Enhancements Krishna Kanth Telikepalli Sr. Product Manager, EBS Contracts
- 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. Agenda • Oracle Contracts Management Solution • Service Contracts • R12 New Features • Renewals Enhancements • Wrap Up / Q&A
- 6. Oracle Contracts Management Solution
- 7. Oracle Contract Management Products Sales Contracts Service Contracts Project Contracts Develop Procurement Contracts Contracts Market Contract Intelligence Projects Sell HR Customers, Order Suppliers, Finance Products, … Plan Maintain Procure Service Make Fulfill
- 8. Oracle Contract Management Solution Oracle Service Contracts Delivery / Service Support Fulfillment Buy-Side Sell-Side Purchase Contract Sales Suppliers 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. 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 • Legal Contracting • Compliance Finance & Party Accounting
- 11. Oracle Service Contracts Product 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. Sell Multiple Services on a Contract Leverage 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. Coverage and Entitlement Accelerate Customer Response and Reduce Exposure • Coverage Times Instantaneous Verification • Response Time Commitments Service Contracts • Discounts Repository • Resource Customer Notifications Preferences Customers Service • Expirations • Time Zone • Renewals & Breaks Install Base Integration • Transfers • Returns • Replacement Reduce Service Increase Customer Entitlement Violations = Satisfaction and Loyalty
- 14. Automated, Accurate Billing Eliminate Pricing and Billing Errors Regular Service Fees • Define customer billing terms -- timing, amount • Recurring fees Time • Annual support contracts • Price accurately Based (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 & automatically Usage generate invoice from AR • Include price breaks prior Based to determining total • Track billing history on • Support estimated or contract -- invoice actual usage numbers, applicable tax
- 15. Streamline Contract Renewal Process Reduce Service Revenue Leakage Create Opportunity • Receive automated alerts in advance of expiration • Utilize flexible renewal rules Renew 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. R12 New Features
- 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. 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
- 20. New and Changed Features for Service Contracts Renewals • Renewal Negotiation Lifecycle Management • Administrator Workbench • Improvements to Online Acceptance Portal • Enhanced Communication Templates • Flexible Approval Rules • Enhanced Auto-Reminder Process
- 21. Service Contracts Renewals Process • 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. Renewal Negotiation Lifecycle Management Description • 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. Renewal Negotiation Lifecycle Management Benefits • Enables proactive renewal management with notifications and status tracking • Provides better visibility to management on progress of renewal contracts
- 24. Renewal Negotiation Lifecycle Management Process • 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. Renewal Negotiation Lifecycle Management Manual 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. Renewal Negotiation Lifecycle Management Online 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. Renewal Negotiation Lifecycle Management Evergreen 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. Renewal Negotiation Lifecycle Management Negotiation Status Transitions
- 29. Renewal Negotiation Lifecycle Management Negotiation Status- Workbench and Authoring -Negotiation Status indicates current workflow status of the contract -Seeded views use negotiation status as filter criteria
- 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. Administrator Workbench Description • 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. 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
- 33. Administrator Workbench Homepage 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. Administrator Workbench Seeded 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. Administrator Workbench My In Process Contracts - Views Seeded Views enable administrators to view their contracts using various filter criteria View Description All In Process Contracts All new and renewal contracts in 'Entered' status Follow-Up Actions All contracts for which a follow-up action has been entered Online Quotes All contracts having 'Quote Published' negotiation status i.e. quote has been published online for customer acceptance Pending Internal Approval All contracts having 'Pending Internal Approval' negotiation status Pending Quotes All manual and online contracts in entered status that are not pending approval or pending activation Pending Salesrep All contracts having 'Assistance Required' negotiation status Assistance Reminder 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. Administrator Workbench Defining personalized views Administrator can use the personalize option to create new views Standard OA Framework functionality can be used to create new views
- 37. Administrator Workbench My In Process Contracts Bin - Details Icon Indicates auto- Negotiation Status Contracts with follow- Search results can reminders have been indicates current up actions and due be sorted by various disabled workflow status of the date for those actions attributes contract are available
- 38. Administrator Workbench My 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 actions Workbench – 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. Administrator Workbench My In Process Contracts Bin – Email Action 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. Improvements to Online Acceptance Portal Description • 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. Improvements to Online Acceptance Portal Benefits • 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. Improvements to Online Acceptance Portal How 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. Improvements to Online Acceptance Portal Pending Service Contracts Available actions are – accept, decline and request assistance Contracts pending Flag indicates that the Clicking quote displays salesrep assistance are pending contract is a quote in .pdf format marked. These contracts renewal can be accepted or declined Customer can perform actions on new and renewal contracts of Service Agreements, Extended Warranty and Subscription categories
- 44. Improvements to Online Acceptance Portal Online Customer Acceptance – Payment Page Users can attach a document such as the image 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. Improvements to Online Acceptance Portal Request 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. Enhanced Communication Templates Description • 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. Enhanced Communication Templates Benefits • 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. Enhanced Communication Templates Setup – 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. Flexible Approval Rules Description • 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. Flexible Approval Rules Benefits • 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. Flexible Approval Rules Setup AME 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. Flexible Approval Rules Setup – 1. Creating New Attributes Seeded attributes available for defining Conditions - • Contract ID • Operating Unit • Customer Party • Contract Category • Contract Amount
- 53. Flexible Approval Rules Setup – 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. Flexible Approval Rules Setup – 3. Define Approval Group Selected Approver for this approval group
- 55. Flexible Approval Rules Setup – 4. Define an Action Action defined will be used later in the approval rule
- 56. Flexible Approval Rules Setup – 5. Define rule using conditions and actions
- 57. Flexible Approval Rules Testing 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. 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. Enhanced Auto-Reminder Process Benefits • Enables contract administrators to remind customers that contracts need their attention • Automates reminder process for both manual and online contracts
- 60. Enhanced Auto-Reminder Process Setup • Template set layout • Template set for the contract has to be setup to send reminders on specific intervals before current contract expiration
- 61. Enhanced Auto-Reminder Process How 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. Enhanced Auto-Reminder Process How 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. Oracle eBusiness: Service Contract Renewals Kristen Cornila, Sr. Business Systems Analyst 63
- 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. Oracle eBusiness Suite Implementation 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. Agenda Service Contracts at Kronos Renewals at Kronos, custom logic Renewal Challenges Best Practice Collaboration ‘Survey’ 66
- 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. 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. 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. Renewals at Kronos Evergreen Renewal Process Example: Renewal Start Date 01-JAN-2008 Active 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 Cancellation Creation Review, Quote & invoice letters Start (if unpaid) Approval 120 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 unpaid 01-SEP-2007 01-SEP-2007 01-NOV-2007 01-DEC-2007 01-JAN-2008 01-FEB-2008 through and 31-OCT-2007 01-JAN-2008 Renewal 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. 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. 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. ‘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. ©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