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Reduce Risk And Deliver Efficiency In Managing Contracts
 

Reduce Risk And Deliver Efficiency In Managing Contracts

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    Reduce Risk And Deliver Efficiency In Managing Contracts Reduce Risk And Deliver Efficiency In Managing Contracts Presentation Transcript

    • Reduce Risk and Deliver Increased Efficiency for Managing Contracts © Copyright 2009 EMC Corporation. All rights reserved. 1
    • We Live in Challenging Times… © Copyright 2009 EMC Corporation. All rights reserved. 2
    • The Impact of Contracts IMPORTANCE OF CLM IN THE AVERAGE PERCENTAGE OF QUOTE-TO-CASH CYCLE REVENUES BASED ON CONTRACTS Not important 2% 21% Somewhat important 15% Essential 68% 52% 56% Important 31% Currently In two years  Ineffective control and management of contracts costs businesses more than $153 billion per year  The average percentage of a company’s revenue from contracts is expected to increase from 56% to 68% over the next two years  43% of enterprises face challenges with standardization of the language used in proposals, contracts, service agreements Source: AderbeenGroup © Copyright 2009 EMC Corporation. All rights reserved. 3
    • Contracts Effects All Industries Wholesalers, Institutions; Ultra, DCAs Distributors, High Net Worth GOVPs DSAs Broker-Dealers Individuals MEDAs ‘Sell-Side’ IMAs and Retail ‘Off-Invoice’ Discounts FFS Chains ‘Customers’ Trading Partner WSAs PBM Price Intermediaries PDAs ‘Grids’ Performance Based Rebates Sample Company RCAs Service Providers, Direct/Indirect Clinical Supply NDAs Agreements Business Partners, Goods/Materials GPAs SAs Employees Suppliers SOWs CTRAs/ MTAs CTMAs IP ‘Buy-Side’ ‘Raw’ Material Consulting; Research; Licensing SWLAs Suppliers, Agreement Technology Vendors, MSAs ‘Finished Goods’ Facilities, etc. EAs Suppliers, etc. © Copyright 2009 EMC Corporation. All rights reserved. 4
    • Contract Lifecycle Management © Copyright 2009 EMC Corporation. All rights reserved. 5
    • Benefits of CLM automation 6 to 11 month ROI Improvement Area Performance Impact Compliance management Improve compliance by 55% Material/service costs Reduce by 2%-7% Contract renewal rates Improve by 25% Revenue Improve by 1%-2% Evergreen contracts Eliminate auto-renewal items Contracting cycles Cut contracting cycles by 50% Procedures and terms Standardize processes and terms to mitigate risks, ensure proper approvals, and enforce policies Documentation and reporting Cut reporting cycles from days to minutes Contract analysis Analyze and maximize performance Administrative costs Reduce by 25%-30% Source: Aberdeen study, The Contract Management Solution Selection Report: Handbook for CLM Strategy & Solution Selection. © Copyright 2009 EMC Corporation. All rights reserved. 6
    • Contract Lifecycle Management  Comprehensive solution for managing the entire contract lifecycle: from contract authoring through renewal  The solution combines – single, enterprise-wide contract repository – flexible workflow engine – user-friendly interface – multi channel distribution – compliance – tightly integrates with Microsoft Word © Copyright 2009 EMC Corporation. All rights reserved. 7
    • EMC’s Contract Lifecycle Management Product Suite Contract Life Management Creation / Assessment Review / Analysis and Negotiations Auditing authoring of risk approval reporting Customer Communications Management Business Process Management Content Management Centralized Repository with Compliance EMC Contract Lifecycle Management © Copyright 2009 EMC Corporation. All rights reserved. 8
    • Anatomy of a Contract Automated assembly and workflow eliminates manual processes Clauses reused from searchable, preapproved library Logos, signatures, and branding images automatically merged Changes are tracked with complete version history Final contracts are archived with appropriate metadata © Copyright 2009 EMC Corporation. All rights reserved. 9
    • Automated, paperless contract process Improve efficiency – Easily update standard contracts all within the familiar Microsoft® Word – Automatically leverage and reuse approved content – Apply new updates using a searchable library of customized text and attributes Increase accuracy and automation – Automate without affecting quality and compliance Effectively monitor work in progress – Manage individual workload and reassign work from one central location to track accountability © Copyright 2009 EMC Corporation. All rights reserved. 10
    • Paperless Review and Approval Create initial contract Package Batch Print E-mail Final Changes Negotiating party reviews and modifies contract Archive with Word Legal reviews and approves the final contract © Copyright 2009 EMC Corporation. All rights reserved. 11
    • Customer Communications Management Contract Life Management Creation / Assessment Review / Analysis and Negotiations Auditing authoring of risk approval reporting Customer Communications Management Business Process Management Content Management Centralized Repository with Compliance EMC Contract Lifecycle Management © Copyright 2009 EMC Corporation. All rights reserved. 12
    • Document Sciences xPression  Use familiar Microsoft Word for contract authoring and revision  Rapidly search for and reuse preapproved base contracts and clauses to avoid a lengthy review process  Maintain a complete history of all changes during the negotiation process  Streamline approval processes through an intuitive automated workflow  Archive contracts to meet regulatory requirements © Copyright 2009 EMC Corporation. All rights reserved. 13
    • xPression for Contracts Design Generation Channels Batch Print Contracts Initiated Design Tools Email XML Policies Workflow Web Data Agreements Interactive Mobile ECM Documentum Declarations, Endorsements High-volume Batch Archive © Copyright 2009 EMC Corporation. All rights reserved. 14
    • Rule-based Document Templates Key Points  Easily turn existing documents into dynamic document templates using familiar content authoring tools  Maintains a complete history of all changes during the negotiation process © Copyright 2009 EMC Corporation. All rights reserved. 15
    • Business Process Management Contract Life Management Creation / Assessment Review / Analysis and Negotiations Auditing authoring of risk approval reporting Customer Communications Management Business Process Management Content Management Centralized Repository with Compliance EMC Contract Lifecycle Management © Copyright 2009 EMC Corporation. All rights reserved. 16
    • Documentum Process Suite  Business process management (BPM) is a technology-based approach for understanding, automating, and optimizing your processes… – Understand: Complete view of processes across the organization – Automate: Execute and automate processes in a production environment – Optimize: Continuous process performance improvement  Technologies – Business process analysis – Process execution – Business activity monitoring – Systems-based integration – Forms management © Copyright 2009 EMC Corporation. All rights reserved. 17
    • Real-Time Process Performance at Your Fingertips Documentum Business Activity Monitor  Web 2.0 Flex-based  Dynamic KPI tracking  Interactive charts and drilldowns  Graphical dashboard builder  Active alerts and response  Documentum Process Reporting Services  TaskSpace components  Quickly identify and react to situations before they become problems – reducing risk and improving business agility. Rich user experience for managing dynamic business processes – sense, assess, respond © Copyright 2009 EMC Corporation. All rights reserved. 18
    • Investment Management Group Of A Large Custodial Bank Reduces 53% of Their Manual Steps Business Pain: Process of preparing, reviewing and executing of major contracts is not managed well and creates high reputational and financial risk to the firm – Over 50 step process with over 10 different rolesgroups involved – Document management & signoff process is manual and not uniform – No sign-off audit trail – No formal accountability for delays, lack of information or progress – No transparency for management on process status Data Point Solution As Is To Be Change Number of Documentum Process Suite  EMC Steps 78 61 18% reduction Number of Handoffs 39 22 44% reduction Number of Manual Steps 51 24 53% reduction Touch Time 102 hours 88 hours 15% reduction Total Time 408 hours 302 hours 25% reduction Control Points 5 12 160% increase © Copyright 2009 EMC Corporation. All rights reserved. 19
    • Content Management and Centralized Repository with Compliance Contract Life Management Creation / Assessment Review / Analysis and Negotiations Auditing authoring of risk approval reporting Customer Communications Management Business Process Management Content Management Centralized Repository with Compliance EMC Contract Lifecycle Management © Copyright 2009 EMC Corporation. All rights reserved. 20
    • Managed Content  Share text, images, and business rules across documents – Pull from a content repository at design time – Reference for use during production  Comprehensive version control, security, and search  Custom attributes for archive Key Points  Centralized, federated repository to manage all content  Version control, access, search, security © Copyright 2009 EMC Corporation. All rights reserved. 21
    • Secure Document Archiving Metadata Author Date Terms Contract # Customer Key Points Contracts  All contracts retained to ensure compliance (agreements, policies) reducing risk  Includes records management, retention policies, audit trails, search and archive © Copyright 2009 EMC Corporation. All rights reserved. 22
    • Benefits Revenue Enhancements The average percentage • Increased win rate by 15% of a company’s revenue • Reduced solution cycle time by 20-40% from contracts is expected • Reduced non-std contracts by 15-40% to increase from 56 percent to 68 percent over Cost Reduction the next two years. • Resource efficiencies between 1–5% Aberdeen Group • Application rationalization savings ($1 M/year) Risk Mitigation • Undisclosed reduction in risk of fines, penalties, fees and interest © Copyright 2009 EMC Corporation. All rights reserved. 23
    • Expand Your EMC Investment….. • Leverage Your Existing Infrastructure - Capitalize on the investment you’ve already made and save money • Standardize on a Common Platform - Simplify your architecture • Minimize Risk - Go with a proven solution, backed by industry leaders • Faster Time-to-Value - With your EMC Documentum investment, you’re already half-way there © Copyright 2009 EMC Corporation. All rights reserved. 24