Oracle Incentive Compensation

August 31, 2020 | 3 minute read
Nick Vautier
Director, Product Management
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Oracle Incentive Compensation

Oracle Incentive Compensation calculates variable sales compensation which allows organizations to achieve three things.

  1. Maximize profits by optimizing and automating sales execution.
  2. Motivate the sales organization to align towards strategic corporate objectives.
  3. Mentoring based on data driven insights of both individual sales person and customer behavior.

Oracle Incentive Compensation is a cloud based offering based on Oracle OIC.

Oracle Incentive Compensation is part of Oracle CX Sales

Oracle’s truly believes to have an effective Incentive Compensation solution you need a unified platform, including a unified customer master for accurate payments, advanced analytics for sales planning and tight integration with CX, HCM & ERP. An unorganized customer master with duplicate and stale data  is often the archilles heel of any implementation, so providing the ability to clean and structure customer data is key to accurate planning and crediting. Inaccurate quotas are the most costly mistake a business can make, so setting data driven quotas is key to business success. Compensation disputes is also very costly in terms of both administration and lost talent, so by allowing sales reps to be assigned to accounts via Territory Management helps avoid disputes on who should get credit. CX Sales includes everything a customer needs to be successful, including Oracle CDM, Oracle Territory Management, and also provides optional add-ons such as Oracle Datafox and Oracle Sales Planning.

Oracle Sales Performance Management (SPM) is part of Oracle CX Sales

All the core components of Oracle's world class SPM solution are part of Oracle CX Sales, including Oracle Incentive Compensation, Oracle Territory Management, Oracle CDM, with optional add-ons such as Oracle Datafox and Oracle Sales Planning.

Oracle Sales Performance & Planning Management (SPPM)

Oracle SPPM includes everything in Oracle SPM plus our modern Sales Planning solution, prebuilt on top of Oracle's world class EPM planning tools.

Going Beyond Incentive Compensation

Incentive Compensation has evolved beyond automation of compensation calculation and associated reporting and dispute management. While these aspects are foundational, leading edge companies are now using modern planning tools plan territories and calculate data driven quotas. If you are not using data to drive your sales plans, your territories will be unfair and your quotas will be inaccurate. This ultimately results in lost revenue, increased cost and increased churn. Territories that are too fruitful result in lost revenue opportunities. Quotas that are too low result in increased cost. Territories that are bone dry territories or with quotas set too high result in frustrated reps who quit. The key to successful data driven plans is not looking at what a rep achieved last year. That was based on last years set of accounts. The magic of successful data driven plans is in knowing the accounts you plan to give the rep next year, and knowing what those accounts booked last year. By planning quotas down at the account level, you can continue to move accounts around, and the smart quotas they carry will move along with the account reassignment. You can further enhance your data driven plans with advanced machine picked statistical predictions, and by estimating the approximate value of net new accounts using the total addressable market, and focusing on the specific area of the total addressable market you wish to expand upon. By planning based on the total addressable market, you can start to pay not just for performance, but start to strategically pay for improvements to your bottom line.

Nick Vautier

Director, Product Management

Director, Product Management for Sales Performance Management and CX Sales


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