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webbased contract management system with build in e-sign engine. SaaS and licence model. Close legal binding contracts over the internet. A recent browser is all you need to start managing your ...

webbased contract management system with build in e-sign engine. SaaS and licence model. Close legal binding contracts over the internet. A recent browser is all you need to start managing your contracts. More info at http://www.DocStation.be

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webbased contract management tool webbased contract management tool Presentation Transcript

  • A web based contract management tool
  • Agenda
    • Welcome
    • The paradox
    • The business case for automated contract management
    • - The issues
    • - The solutions
    • - ROI
    • DocStation – a walk through
    • DocStation offerings
    • Questions?
  • Paradox
    • Your contracts are your business
    • All business is based on contracts, whether verbal or written contract
    • Verbal agreements – problem of proof and evidence
    • Best written contract is worthless, if not managed properly
    • yet, little attention to tracking and managing contracts
  • 2. The business case for automated contract management
    • 90% of enterprises view effective creation, monitoring and management of contracts as either “very important” or “critical” to their overall success
    • ( Aberdeen Group Survey )
    • 81% of companies report that just locating a contract is problematic
    • ( IACCM Survey of 100 global 2000 companies)
  • The issue … Does this sound familiar?
    • I am not sure where all contracts are being stored
    • Contract templates are being recycled
    • Multiple versions of the company’s standard terms are spread all over the company
    • We don’t have paper contracts with all our customers/suppliers
    • In many cases, we don’t get back an original duly signed contract. A fax copy is the best we can get.
    • We are unable to efficiently retrieve important information out of our contracts
    • It is not excluded that deadlines and milestones have been or will be missed. We simply don’t know.
    • We are unable to track performance of our suppliers; our suppliers are managed through lunch in a decent restaurant
    • We don’t know how to verify or improve compliance
  • The issue … Ineffective contract management
    • Contract management remains a major or significant source of operational weakness amongst many SMEs and corporations . CM is a largely fragmented activity at most companies:
    • Why?
    • Lack of formalized contract management procedures
    • Inefficient, labour-intensive processes
    • Limited visibility into corporate contracts
    • Ineffective monitoring and management of contract compliance
    • Inadequate analysis of contract performance; difficult to obtain quantitative measurements since no tools exist
  • The issue … Ineffective contract management
    • Contractual “give aways”: watch out for:
      • evergreen renewals: auto-renewal implies missed savings opportunities
      • maverick buying: up to 30% of a typical company’s purchase occurs outside of a contractual agreement
      • missed discounts or pricing errors
      • milestone slippage and penalties
      • regulatory non-compliance
    • Multiple parties involved in negotiation and none of this knowledge is captured in a systematic way
    • Distributed ownership of contracts; each unit applies its own system or method before slinging it over the wall
    • Information is fragmented and inaccessible; dislocation of knowledge between islands of information
  • Islands of information
  • The issue … Obvious business risks
    • Contracts lacking critical documents or terms
    • Vendors may be overcharging
    • Customers may be undercharged
    • Loss of documents
    • Lack of visibility for timely analysis of new regulation
    • Critical contract events may be missed
    • Current tracking solution unreliable
    • Redundant contracts executed by separate divisions
    • Inefficient use of and wasted time for resources
    • Compromised customer loyalty
  • Solutions : contract optimization Six Steps to better contracts
    • Contract Optimization:
    • the process
    • of systematically and efficiently managing
    • contract creation, execution, compliance and analysis
    • for the purposes of maximizing operational and financial performance and minimizing risk
  • Solutions : contract optimization Six Steps to better contracts
    • Standardize your contracts
        • standard language minimizes inconsistencies
        • Pre defined contract options will streamline contract process, reduce approval process and ensure completeness
        • contract professionals can focus on more strategic activities; avoid repetitive legal review and save €
        • Define profitable contract templates that can be recycled in the future
        • Save and incorporate the “best of the best” templates
        • Analyze existing contracts and understand what works and what can be improved
  • Solutions : contract optimization Six Steps to better contracts
    • Develop and implement a company wide contract process
        • Define roles & responsibilities
        • Determine what approval processes can be standardized and automated
    • Develop a central repository for all your contracts
        • Provide easy access to users
        • facilitate leveraging
    • 4. “Activate” contract terms in transactional systems
        • Leverage collaboration; workflow based approval processing between buyer and seller;
        • E-mail with linkages to contract management applications
    • 5. Improve ability to analyse contract performance, compliance and risk
        • For the buy-side contracts, are we leveraging volume discounts?
        • For the sell-side contracts, are we billing at the right price based on volumes? Are deductions being handled properly?
    • 6. Improve automation of contract management life cycle
  • Integrated approach
  • No thanks …Reasons for not automating contracts
    • We don’t have enough contracts …
    • We don’t have resources to enter all those contracts …
    • We don’t want to share information with other departments …
    • We only work with standard terms …
    • We’ve never had serious contract issues …
    • We are not in charge of the contracts or the tools …
    • We don’t have the budget; it’s too expensive …
    • We wait for next generation software …
    • My self made spreadsheet (access – excel) will do the job …
    • We want to avoid transparency and work load visibility …
    • Yet another system …
    • IT is too busy.
  • ROI Obvious and Quick
    • Improved compliance with procurement terms (e.g. discounts)
    • Reconciliation of procurement and sales orders to the contracts
    • Reduced legal support for the identification of alternate acceptable terms and conditions
    • Reduced time to contract and contract research time
    • Potential for more efficient external and internal audit review of contract financial exposures
    • Visibility and transparency on work load and work flow.
  • ROI Obvious and Quick
    • Reduced risk associated with potential contract exposures
      • Contract terms in compliance with policies
      • Visibility of exposure to external events
      • Reduced reliance upon key personnel, electronic spreadsheets and manual procedures to track contracts
      • Visibility into all documents (e.g. amendments, schedules, etc.) for a contract
    • Improved information and insight into customer or vendor relationships
    • Risks of “evergreen renewals”; “maverick buying”; pricing errors; milestone slippage and penalties are avoided
    • Platform for customer profitability and vendor performance
    • Support for automated disaster recovery
  • The solution
  • DocStation: a walk through
    • What do you need to work with DocStation?
    • Internetconnection (webbased)
    • Recent MS internet explorer browser
    • DocStation Account (credentials)
    • What do you need to e-sign a pdf-contract?
    • Email address + internet connection
    • Adobe acrobat reader (free)
    • A qualified digital certificate (e-ID or other qualified certificate)
  • Web-based!
    • Advantages WEBBASED +SAAS:
    • No infrastructure costs
    • No need of tech-profile employee
    • No worries about :
        • backups
        • security issues
        • Updates
        • Uptime (SLA)
        • Budget (fixed price)
    • - Everywhere & anytime
    • Only need of IE 7.0 + internet
    • * firefox = ok , but d2s-client : Q3 2009 **d2s-client = detection of valid certificate stored on your PC
  • Simple configuration
  • 1 Account & # Domains
  • Users
    • External persons : can be invited to sign a pdf-contract. They can download the signed pdf-contract
    • Users of DocStation have different roles / rights :
      • read-only
      • make drafts
      • send out sign-invitations
      • create users
      • set notifications
      • delete or archive contracts
      • Etc ...
  • User-model Type users: Account manager: makes domains + contract-types per domain Domain manager : creates users + templates per domain Editor in chief : gives ok on drafts + sends sign-invitations Editor : drafts of contract , archiving … Viewer : read only External persons can get invitations by e-mail to sign PDF contract (but is not a user of DocStation) A USER CAN BE ANYBODY - ANYWHERE - ANYTIME
  • How to create a contract-draft:
    • 5 ways:
    • Template
    • Webform : fill in empty fields (customization)
    • Clause library : “x” + “y” + “z”
    • Copy of an existing sign-item
    • Uploaded document
    • End result is always a PDF contract generated from your contract and his attachments.
  • Security
    • A class data center : redundant internet-feed, access-security, right environment for servers: airco, dust free, fire protection, generators in case of electricity failures and major outages, ...
    • Servers : no single point of failure (hdd, nic, power supply , ...) + A brand server
    • Backup : daily incremental + weekly full back ups + store backup on different locations ...
    • Passwords of users : are not and can not be known to anybody but the owner of that password
    • Delete is not really deleted : data can’t be “destroyed”
    • Dump of your contracts on request + webservices: real time
    • Virusscan of uploaded documents
  • How to catalogue a contract
    • Pick right DOMAIN
    • Pick right FOLDER
    • Create sign-item & pick TYPE of contract
    • Upload attachments of sign-item
    • Create meta-data on contract
    • Set notifications if needed
  • Status of contract
    • Contract LifeCycle
    • Draft : first development stage
    • Locked : contract is being altered by person x
    • Ready to Sign : invitation to sign + PDF transform
    • Signed : PDF is e-signed by ALL parties
    • Ended : termination date is reached
    • Declined : contract is declined by 1 party ... => Clone it, alter source files (lock / unlock) and start sign-procedure again.
  • Notifications
    • A contract can trigger an e-mail notification
    • The trigger is date-driven ...
    • Event-driven notification = customization
    • (eg : if contract reaches a certain value then person X needs to be notified ...)
    • sms notification is optional
  • Metadata
    • METADATA
    • Name tag on luggage = extra data about your contracts … eg: rating of supplier.
    • Can be DYNAMICALLY added or altered
    • Mandatory or optional meta-data => you decide
    • Adds extra value to your CMS
    • Meta-data set can be determined per contract-type
    • Extract Business Intelligence : eg: rating of suppliers, risks, value of contract, penalties, renewal date, renegotiation date …
    • INTERACTION WITH OTHER SYTEMS (CRM, ERP)
    • Web service : mass import of data, export of data ( extraction, analysis and reporting of info) , functionality sharing (eg: trigger notification function) IN REAL TIME!!!
    • To be discussed between your IT and our IT, customization
  • Business Information about contracts
    • Without DocStation With DocStation
    • Software Licensing model
    • SaaS model
    • BPO model
    • White label model
    • Modular approach
    DocStation Offerings
    • Installation of DocStation at the customer’s premises (or a datacenter chosen by customer)
    • No limitations in terms of users
    • No limitations in terms of affiliated companies of the customer’s group that can make use of the system
    • Implementation time 3 à 6 weeks
    • Software license fee : 50K€ (VAT exclusive)
    • Set up and implementation services (10 à 20 days) or additional services, e.g. development of specific functionalities; integration with ERP; CRM; training; …
    • Maintenance fee (annual fee of 15% on the license fee and implementation cost).
    DocStation Offerings 1/ Software licensing model
    • No investments, no capex, no lead time
    • Only requirement = internet connection
    • All CM functionalities are provided as per license model
    • Set up fee including a training session at 950€
    • Monthly recurring fee = 200 € for a 12 months contract term
    • No limitations in terms of number of users or affiliated companies
    • 100 MB disk space included
    • Options :
      • - extra disk space
      • - helpdesk
      • - contract support
    • SLA included (e.g. availability; security; back up, etc)
    DocStation Offerings 2/ Software as a service model
    • BPO Business Concept
      • Long term contracting out of non core business processes with a view to create added value to the business
      • Contract Handling Service - “the extended enterprise for transactional and legal work”
    • Business Ratio
      • Manage expertise and not size
      • Leverage networked model and replace integrated structure
      • Manage what to deliver rather than how to deliver
      • Manage results not resources
      • Decrease costs and increase efficiency
    • How?
      • Trusted partner in legal and transactional process needs
      • Introducing domain expertise
      • Introducing efficient contract management (people/functionalities)
      • Fixed and Transparent Pricing
    DocStation Offerings 3/ BPO Model
  • DocStation Offerings 3/ BPO Model
    • We offer “contracts as a service”
    • =
    • full Docstation functionalities with legal & contractual support services for a fixed monthly fee !
    • Standard Contract Management solutions = a software vendor approach; we go beyond software …
      • expecting busy lawyer to adapt to technology that often causes the lawyers to feel that they have to do more work than without the technology
      • great value of tracking and reporting – but how to get the detailed information into the system
    • Legal process outsourcers = only provide the labour, but not an integrated technology platform
  • DocStation Offerings 3/ BPO Model
    • Benefits for your business
    • hosted contracts management platform supported by a team of lawyers and IT specialist designed to take advantage of the technology and the team.
    • No capex; no hiring; no set up fee; no lead time;
    • Fixed monthly “all in” fee depending on the support level required as defined during the initial audit phase
    • Flexible support intra or extra muros
    • Integrated into the business processes and requirements
    • Transferability and service delivery continuity
    • DocStation functionalities can be integrated as part of a broader offering;
    • Implementation of your “house style / brand”
    • e.g., Ollygos [CM as additional tool for outsourced back office support]
    DocStation Offerings 4/ White label model
    • E-contracting tool as part of the business process:
    • e.g., web sales
    • Web based collaborative tools between buyer and seller to improve “time to contract”:
      • outsourcing transactions
      • temporary company or consortium management.
    DocStation Offerings 5/ Modular Approach
  • keybenefits
  • Q&A
    • Questions?