[NOTE TO PAUL] This slide is in response to Angela’s suggestion on our dry-run through. Inmainstage sessions, Salesforce will be pitching the importance of the social enterprise with a tagline, “It’s the experience, Not the App”. This is not unlike what we have been saying for over two years now – the need for not only technology, but also capabilities, and community.Before you go through the remainder of the deck, my thought was to tie Benioff’s comments in the conference thus far and how these mesh perfectly with Ariba’s objectives as a company and more importantly, our strategy with ACF. More directly in terms of sales contracting, that this is our objective at Ariba…to bring together sales, legal, and other constituents in the sales process together for more effective sales contracting. Chatter, mobility, and even Ariba Exchange will all be critical in this effort.Transition to next slide could be, “But let’s take a step back and talk about how we got here…” (or something to that effect).
The world of selling has changed. Let’s take a look at what has changed – Marketing is happening online. We continue to market at trade shows, but more and more they are becoming just one part of a marketing portfolio that now needs to include social networking sites, tweets and facebook, and chatter. The nature of selling has changed. More and more prospective customers don’t want to do business over the phone any more – it is all via online bids or emails. Sales’ challenge is closing the sale with someone that they’ve never met in person … but also someone they may have never had even a live conversation with. And once you win the contract you need to communicate with your customer online. Whether you’re providing catalogs for the buyers’ employees to order from, or vendor managed inventory pulls, or visibility into order status catalogs, your customers will be looking for your catalogs and the latest status messages from you online.
But sales contracting for many organization hasn’t gone through any meaningful transformation since the advent of email and MS Word.One off emails and phone calls are sent from one individual to the next which is repetitive, time-consuming, and doesn’t inform all the necessary parties of the goings-onMeanwhile, contracts may be done in MS Word, but are often shipped for wet-ink signature and stored in file cabinets or on unsecure file serversIn short, the companies who don’t change their contracting processes for the better, and soon, will at best erode their revenue streams and at worse, develop such a competitive disadvantage, that they could risk their solvency completely.
The result of this lack of innovation is sales contracting inefficiency. Sales and legal are, by their objectives, inherently misaligned. This misalignment results in inefficiency that negatively impact the business resulting in...
And point solutions aren’t good enough. This table illustrates the step change increase in capabilities for various contracting functional requirements in moving from a contract management automation solution to one that is integrated with a CRM system. The significant increase in Process Management isn’t all that surprising…integrating two formerly disconnected processes will have a positive process impact. But look at the significant increase in opportunity management, security, and fulfillment. Have you ever had a contract automatically renew that you wanted an opportunity to re-sell? A business case for a solution could be built on better renewal management alone.
San Francisco HQ with offices in Atlanta, Denver, Bangalore, and Colombia
Discuss the fact that you have been working closely with Ariba over the past couple months as a beta customer in preparation of release of Ariba Contracts on Force.comWhat being involved in beta has entailedLearned how product worksProvided feedback on product enhancementsModeled your processes, reporting, etc.Why you chose to partner with Ariba (reputable partner, expert in field, customer service, responsiveness, etc.)
Professionalize the contract management processAlign with best practices
PAUL to deliverWe hope you now have interest in sales contract management automation with Ariba, but outside of Ariba’s solution, here are some takeaways for you to consider in the very near term…Sponsorship - like with any project involving technology, sponsorship is critical. This is often even more important with contracting since the function itself often has no clear owner (legal, functional area, finance, etc.)KPIs & Benefits – must establish what success looks like.Analyze business segments / needs – start small if necessary. Work with one particular sales contract type or group to establish guidelines, benefits, etc. and build from thereDevelop templates – standardization is critical. Again, start small.Document, document, document.
Contract management with ariba in the cloud
Contract Management with Ariba in the Cloud: A Day in the Life<br />Sales Professionals<br />Paul Melchiorre, Ariba<br />Mark Mallah, LiveVox<br />
Sales Contracting Is a Revenue Opportunity<br />The impact of ineffective sales contracting<br />How can automating the contract function help?<br />Demonstration: a day in the life of a sales rep using Ariba Contracts on Force.com<br />User’s viewpoint: challenges & benefits<br />Take action today towards world-class sales contracting<br />
Ariba and the Social Enterprise<br />Contract Management<br />TECHNOLOGY<br />CAPABILITIES<br />COMMUNITY<br />Sales, legal, and other stakeholders<br />Ariba Exchange<br />
Selling and Servicing Customers Has Changed<br />Marketing<br />Supporting<br />Then<br />Now<br />Selling<br />
…But Sales Contracting Has Been Left Behind<br />
The Cost of Contract Inefficiency<br /><ul><li>Contracting Cycle Times Delay Deal Closure
Customer Frustration and Dissatisfaction Damage Customer Relationships
Poor Visibility Into Contractual Commitments Limit Opportunities to Increase Share of Customer’s Wallet</li></li></ul><li>Companies Integrating CRM and Contracts Drive Greater Value<br />Average Percentage Improvement – Companies Assessing Capabilities as ‘Good’ to ‘Excellent’ moving to an Integrated Contract Management Solution<br />Source: IACCM, Selling Power, “State of Sales Contracting”, 2011<br />
Ariba Contracts on Force.com*Sales Contracting for the Social Enterprise<br />Delivering Value<br />50% Faster Contracting Cycles<br />Established Leader<br />Innovative Capabilities<br />5% to 7%Revenue Increase<br /><ul><li>Leading cloud, public company
Consistent CLM leader per independent analysts </li></ul>Market Leader<br />25%Increase in Timely Renewals<br />Benchmarks based on Aberdeen Group, IACCM research, 2010, 2008<br />*Available stand-alone on Force.com or integrated to salesforce.com’sSales Cloud<br />
My Role as Corporate Counsel<br />Draft company agreements<br />Sales<br /> NDA’s<br />Employee agreements<br />Other transactions<br />Report out on contract activity<br />Review and negotiate vendor agreements<br />
What Are Our Challenges?<br />Scope<br />We manage a large volume of contracts<br />Speed<br />Constant demand for quick turnaround times<br />Agility<br />Need to customize a variety of agreements<br />Need to immediately report on a variety of contract attributes<br />Bottlenecks<br />Currently inefficient in approval process<br />
Sales Opportunity<br />Contract <br />Manage<br />Faster contracting cycle times<br />Close deals more quickly<br />Why We Are Excited About Ariba Contracts on Force.com<br />
Why We Are Excited About Ariba Contracts on Force.com<br />Better reporting capabilities<br />Real-time contract status updates<br />
Why We Are Excited About Ariba Contracts on Force.com<br />Proactive alerts for streamlined approvals<br />More disciplined approach<br />
Get StartedToday<br />Establish sponsorship of the sales contracting function<br />Define and agree upon KPIs and benefits<br />Analyze business segments / needs and strategies<br />Start small developing templates<br />Document processes<br />Start Now<br />
See Us at Booth #409 for a Chance to Win an iPad2!<br />https://www.ariba.com/solutions/ACF<br />Go to AppExchange and search:‘Ariba Contracts’<br />Contact details:<br />email@example.com<br />1.877.476.5783<br />