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webbased contract management tool


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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 contracts. More info at

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webbased contract management tool

  1. 1. A web based contract management tool
  2. 2. Agenda <ul><li>Welcome </li></ul><ul><li>The paradox </li></ul><ul><li>The business case for automated contract management </li></ul><ul><li>- The issues </li></ul><ul><li>- The solutions </li></ul><ul><li>- ROI </li></ul><ul><li>DocStation – a walk through </li></ul><ul><li>DocStation offerings </li></ul><ul><li>Questions? </li></ul>
  3. 3. Paradox <ul><li>Your contracts are your business </li></ul><ul><li>All business is based on contracts, whether verbal or written contract </li></ul><ul><li>Verbal agreements – problem of proof and evidence </li></ul><ul><li>Best written contract is worthless, if not managed properly </li></ul><ul><li>yet, little attention to tracking and managing contracts </li></ul>
  4. 4. 2. The business case for automated contract management <ul><li>90% of enterprises view effective creation, monitoring and management of contracts as either “very important” or “critical” to their overall success </li></ul><ul><li>( Aberdeen Group Survey ) </li></ul><ul><li>81% of companies report that just locating a contract is problematic </li></ul><ul><li>( IACCM Survey of 100 global 2000 companies) </li></ul>
  5. 5. The issue … Does this sound familiar? <ul><li>I am not sure where all contracts are being stored </li></ul><ul><li>Contract templates are being recycled </li></ul><ul><li>Multiple versions of the company’s standard terms are spread all over the company </li></ul><ul><li>We don’t have paper contracts with all our customers/suppliers </li></ul><ul><li>In many cases, we don’t get back an original duly signed contract. A fax copy is the best we can get. </li></ul><ul><li>We are unable to efficiently retrieve important information out of our contracts </li></ul><ul><li>It is not excluded that deadlines and milestones have been or will be missed. We simply don’t know. </li></ul><ul><li>We are unable to track performance of our suppliers; our suppliers are managed through lunch in a decent restaurant </li></ul><ul><li>We don’t know how to verify or improve compliance </li></ul>
  6. 6. The issue … Ineffective contract management <ul><li>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: </li></ul><ul><li>Why? </li></ul><ul><li>Lack of formalized contract management procedures </li></ul><ul><li>Inefficient, labour-intensive processes </li></ul><ul><li>Limited visibility into corporate contracts </li></ul><ul><li>Ineffective monitoring and management of contract compliance </li></ul><ul><li>Inadequate analysis of contract performance; difficult to obtain quantitative measurements since no tools exist </li></ul>
  7. 7. The issue … Ineffective contract management <ul><li>Contractual “give aways”: watch out for: </li></ul><ul><ul><li>evergreen renewals: auto-renewal implies missed savings opportunities </li></ul></ul><ul><ul><li>maverick buying: up to 30% of a typical company’s purchase occurs outside of a contractual agreement </li></ul></ul><ul><ul><li>missed discounts or pricing errors </li></ul></ul><ul><ul><li>milestone slippage and penalties </li></ul></ul><ul><ul><li>regulatory non-compliance </li></ul></ul><ul><li>Multiple parties involved in negotiation and none of this knowledge is captured in a systematic way </li></ul><ul><li>Distributed ownership of contracts; each unit applies its own system or method before slinging it over the wall </li></ul><ul><li>Information is fragmented and inaccessible; dislocation of knowledge between islands of information </li></ul>
  8. 8. Islands of information
  9. 9. The issue … Obvious business risks <ul><li>Contracts lacking critical documents or terms </li></ul><ul><li>Vendors may be overcharging </li></ul><ul><li>Customers may be undercharged </li></ul><ul><li>Loss of documents </li></ul><ul><li>Lack of visibility for timely analysis of new regulation </li></ul><ul><li>Critical contract events may be missed </li></ul><ul><li>Current tracking solution unreliable </li></ul><ul><li>Redundant contracts executed by separate divisions </li></ul><ul><li>Inefficient use of and wasted time for resources </li></ul><ul><li>Compromised customer loyalty </li></ul>
  10. 10. Solutions : contract optimization Six Steps to better contracts <ul><li>Contract Optimization: </li></ul><ul><li>the process </li></ul><ul><li>of systematically and efficiently managing </li></ul><ul><li>contract creation, execution, compliance and analysis </li></ul><ul><li>for the purposes of maximizing operational and financial performance and minimizing risk </li></ul>
  11. 11. Solutions : contract optimization Six Steps to better contracts <ul><li>Standardize your contracts </li></ul><ul><ul><ul><li>standard language minimizes inconsistencies </li></ul></ul></ul><ul><ul><ul><li>Pre defined contract options will streamline contract process, reduce approval process and ensure completeness </li></ul></ul></ul><ul><ul><ul><li>contract professionals can focus on more strategic activities; avoid repetitive legal review and save € </li></ul></ul></ul><ul><ul><ul><li>Define profitable contract templates that can be recycled in the future </li></ul></ul></ul><ul><ul><ul><li>Save and incorporate the “best of the best” templates </li></ul></ul></ul><ul><ul><ul><li>Analyze existing contracts and understand what works and what can be improved </li></ul></ul></ul>
  12. 12. Solutions : contract optimization Six Steps to better contracts <ul><li>Develop and implement a company wide contract process </li></ul><ul><ul><ul><li>Define roles & responsibilities </li></ul></ul></ul><ul><ul><ul><li>Determine what approval processes can be standardized and automated </li></ul></ul></ul><ul><li>Develop a central repository for all your contracts </li></ul><ul><ul><ul><li>Provide easy access to users </li></ul></ul></ul><ul><ul><ul><li>facilitate leveraging </li></ul></ul></ul><ul><li>4. “Activate” contract terms in transactional systems </li></ul><ul><ul><ul><li>Leverage collaboration; workflow based approval processing between buyer and seller; </li></ul></ul></ul><ul><ul><ul><li>E-mail with linkages to contract management applications </li></ul></ul></ul><ul><li>5. Improve ability to analyse contract performance, compliance and risk </li></ul><ul><ul><ul><li>For the buy-side contracts, are we leveraging volume discounts? </li></ul></ul></ul><ul><ul><ul><li>For the sell-side contracts, are we billing at the right price based on volumes? Are deductions being handled properly? </li></ul></ul></ul><ul><li>6. Improve automation of contract management life cycle </li></ul>
  13. 13. Integrated approach
  14. 14. No thanks …Reasons for not automating contracts <ul><li>We don’t have enough contracts … </li></ul><ul><li>We don’t have resources to enter all those contracts … </li></ul><ul><li>We don’t want to share information with other departments … </li></ul><ul><li>We only work with standard terms … </li></ul><ul><li>We’ve never had serious contract issues … </li></ul><ul><li>We are not in charge of the contracts or the tools … </li></ul><ul><li>We don’t have the budget; it’s too expensive … </li></ul><ul><li>We wait for next generation software … </li></ul><ul><li>My self made spreadsheet (access – excel) will do the job … </li></ul><ul><li>We want to avoid transparency and work load visibility … </li></ul><ul><li>Yet another system … </li></ul><ul><li>IT is too busy. </li></ul>
  15. 15. ROI Obvious and Quick <ul><li>Improved compliance with procurement terms (e.g. discounts) </li></ul><ul><li>Reconciliation of procurement and sales orders to the contracts </li></ul><ul><li>Reduced legal support for the identification of alternate acceptable terms and conditions </li></ul><ul><li>Reduced time to contract and contract research time </li></ul><ul><li>Potential for more efficient external and internal audit review of contract financial exposures </li></ul><ul><li>Visibility and transparency on work load and work flow. </li></ul>
  16. 16. ROI Obvious and Quick <ul><li>Reduced risk associated with potential contract exposures </li></ul><ul><ul><li>Contract terms in compliance with policies </li></ul></ul><ul><ul><li>Visibility of exposure to external events </li></ul></ul><ul><ul><li>Reduced reliance upon key personnel, electronic spreadsheets and manual procedures to track contracts </li></ul></ul><ul><ul><li>Visibility into all documents (e.g. amendments, schedules, etc.) for a contract </li></ul></ul><ul><li>Improved information and insight into customer or vendor relationships </li></ul><ul><li>Risks of “evergreen renewals”; “maverick buying”; pricing errors; milestone slippage and penalties are avoided </li></ul><ul><li>Platform for customer profitability and vendor performance </li></ul><ul><li>Support for automated disaster recovery </li></ul>
  17. 17. The solution
  18. 18. DocStation: a walk through <ul><li>What do you need to work with DocStation? </li></ul><ul><li>Internetconnection (webbased) </li></ul><ul><li>Recent MS internet explorer browser </li></ul><ul><li>DocStation Account (credentials) </li></ul><ul><li>What do you need to e-sign a pdf-contract? </li></ul><ul><li>Email address + internet connection </li></ul><ul><li>Adobe acrobat reader (free) </li></ul><ul><li>A qualified digital certificate (e-ID or other qualified certificate) </li></ul>
  19. 19. Web-based! <ul><li>Advantages WEBBASED +SAAS: </li></ul><ul><li>No infrastructure costs </li></ul><ul><li>No need of tech-profile employee </li></ul><ul><li>No worries about : </li></ul><ul><ul><ul><li>backups </li></ul></ul></ul><ul><ul><ul><li>security issues </li></ul></ul></ul><ul><ul><ul><li>Updates </li></ul></ul></ul><ul><ul><ul><li>Uptime (SLA) </li></ul></ul></ul><ul><ul><ul><li>Budget (fixed price) </li></ul></ul></ul><ul><li>- Everywhere & anytime </li></ul><ul><li>Only need of IE 7.0 + internet </li></ul><ul><li>* firefox = ok , but d2s-client : Q3 2009 **d2s-client = detection of valid certificate stored on your PC </li></ul>
  20. 20. Simple configuration
  21. 21. 1 Account & # Domains
  22. 22. Users <ul><li>External persons : can be invited to sign a pdf-contract. They can download the signed pdf-contract </li></ul><ul><li>Users of DocStation have different roles / rights : </li></ul><ul><ul><li>read-only </li></ul></ul><ul><ul><li>make drafts </li></ul></ul><ul><ul><li>send out sign-invitations </li></ul></ul><ul><ul><li>create users </li></ul></ul><ul><ul><li>set notifications </li></ul></ul><ul><ul><li>delete or archive contracts </li></ul></ul><ul><ul><li>Etc ... </li></ul></ul>
  23. 23. 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
  24. 24. How to create a contract-draft: <ul><li>5 ways: </li></ul><ul><li>Template </li></ul><ul><li>Webform : fill in empty fields (customization) </li></ul><ul><li>Clause library : “x” + “y” + “z” </li></ul><ul><li>Copy of an existing sign-item </li></ul><ul><li>Uploaded document </li></ul><ul><li>End result is always a PDF contract generated from your contract and his attachments. </li></ul>
  25. 25. Security <ul><li>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, ... </li></ul><ul><li>Servers : no single point of failure (hdd, nic, power supply , ...) + A brand server </li></ul><ul><li>Backup : daily incremental + weekly full back ups + store backup on different locations ... </li></ul><ul><li>Passwords of users : are not and can not be known to anybody but the owner of that password </li></ul><ul><li>Delete is not really deleted : data can’t be “destroyed” </li></ul><ul><li>Dump of your contracts on request + webservices: real time </li></ul><ul><li>Virusscan of uploaded documents </li></ul>
  26. 26. How to catalogue a contract <ul><li>Pick right DOMAIN </li></ul><ul><li>Pick right FOLDER </li></ul><ul><li>Create sign-item & pick TYPE of contract </li></ul><ul><li>Upload attachments of sign-item </li></ul><ul><li>Create meta-data on contract </li></ul><ul><li>Set notifications if needed </li></ul>
  27. 27. Status of contract <ul><li>Contract LifeCycle </li></ul><ul><li>Draft : first development stage </li></ul><ul><li>Locked : contract is being altered by person x </li></ul><ul><li>Ready to Sign : invitation to sign + PDF transform </li></ul><ul><li>Signed : PDF is e-signed by ALL parties </li></ul><ul><li>Ended : termination date is reached </li></ul><ul><li>Declined : contract is declined by 1 party ... => Clone it, alter source files (lock / unlock) and start sign-procedure again. </li></ul>
  28. 28. Notifications <ul><li>A contract can trigger an e-mail notification </li></ul><ul><li>The trigger is date-driven ... </li></ul><ul><li>Event-driven notification = customization </li></ul><ul><li>(eg : if contract reaches a certain value then person X needs to be notified ...) </li></ul><ul><li>sms notification is optional </li></ul>
  29. 29. Metadata <ul><li>METADATA </li></ul><ul><li>Name tag on luggage = extra data about your contracts … eg: rating of supplier. </li></ul><ul><li>Can be DYNAMICALLY added or altered </li></ul><ul><li>Mandatory or optional meta-data => you decide </li></ul><ul><li>Adds extra value to your CMS </li></ul><ul><li>Meta-data set can be determined per contract-type </li></ul><ul><li>Extract Business Intelligence : eg: rating of suppliers, risks, value of contract, penalties, renewal date, renegotiation date … </li></ul><ul><li>INTERACTION WITH OTHER SYTEMS (CRM, ERP) </li></ul><ul><li>Web service : mass import of data, export of data ( extraction, analysis and reporting of info) , functionality sharing (eg: trigger notification function) IN REAL TIME!!! </li></ul><ul><li>To be discussed between your IT and our IT, customization </li></ul>
  30. 30. Business Information about contracts <ul><li>Without DocStation With DocStation </li></ul>
  31. 31. <ul><li>Software Licensing model </li></ul><ul><li>SaaS model </li></ul><ul><li>BPO model </li></ul><ul><li>White label model </li></ul><ul><li>Modular approach </li></ul><ul><li> </li></ul>DocStation Offerings
  32. 32. <ul><li>Installation of DocStation at the customer’s premises (or a datacenter chosen by customer) </li></ul><ul><li>No limitations in terms of users </li></ul><ul><li>No limitations in terms of affiliated companies of the customer’s group that can make use of the system </li></ul><ul><li>Implementation time 3 à 6 weeks </li></ul><ul><li>Software license fee : 50K€ (VAT exclusive) </li></ul><ul><li>Set up and implementation services (10 à 20 days) or additional services, e.g. development of specific functionalities; integration with ERP; CRM; training; … </li></ul><ul><li>Maintenance fee (annual fee of 15% on the license fee and implementation cost). </li></ul>DocStation Offerings 1/ Software licensing model
  33. 33. <ul><li>No investments, no capex, no lead time </li></ul><ul><li>Only requirement = internet connection </li></ul><ul><li>All CM functionalities are provided as per license model </li></ul><ul><li>Set up fee including a training session at 950€ </li></ul><ul><li>Monthly recurring fee = 200 € for a 12 months contract term </li></ul><ul><li>No limitations in terms of number of users or affiliated companies </li></ul><ul><li>100 MB disk space included </li></ul><ul><li>Options : </li></ul><ul><ul><li>- extra disk space </li></ul></ul><ul><ul><li>- helpdesk </li></ul></ul><ul><ul><li>- contract support </li></ul></ul><ul><li>SLA included (e.g. availability; security; back up, etc) </li></ul>DocStation Offerings 2/ Software as a service model
  34. 34. <ul><li>BPO Business Concept </li></ul><ul><ul><li>Long term contracting out of non core business processes with a view to create added value to the business </li></ul></ul><ul><ul><li>Contract Handling Service - “the extended enterprise for transactional and legal work” </li></ul></ul><ul><li>Business Ratio </li></ul><ul><ul><li>Manage expertise and not size </li></ul></ul><ul><ul><li>Leverage networked model and replace integrated structure </li></ul></ul><ul><ul><li>Manage what to deliver rather than how to deliver </li></ul></ul><ul><ul><li>Manage results not resources </li></ul></ul><ul><ul><li>Decrease costs and increase efficiency </li></ul></ul><ul><li>How? </li></ul><ul><ul><li>Trusted partner in legal and transactional process needs </li></ul></ul><ul><ul><li>Introducing domain expertise </li></ul></ul><ul><ul><li>Introducing efficient contract management (people/functionalities) </li></ul></ul><ul><ul><li>Fixed and Transparent Pricing </li></ul></ul>DocStation Offerings 3/ BPO Model
  35. 35. DocStation Offerings 3/ BPO Model <ul><li>We offer “contracts as a service” </li></ul><ul><li>= </li></ul><ul><li>full Docstation functionalities with legal & contractual support services for a fixed monthly fee ! </li></ul><ul><li>Standard Contract Management solutions = a software vendor approach; we go beyond software … </li></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>great value of tracking and reporting – but how to get the detailed information into the system </li></ul></ul><ul><li>Legal process outsourcers = only provide the labour, but not an integrated technology platform </li></ul>
  36. 36. DocStation Offerings 3/ BPO Model <ul><li>Benefits for your business </li></ul><ul><li>hosted contracts management platform supported by a team of lawyers and IT specialist designed to take advantage of the technology and the team. </li></ul><ul><li>No capex; no hiring; no set up fee; no lead time; </li></ul><ul><li>Fixed monthly “all in” fee depending on the support level required as defined during the initial audit phase </li></ul><ul><li>Flexible support intra or extra muros </li></ul><ul><li>Integrated into the business processes and requirements </li></ul><ul><li>Transferability and service delivery continuity </li></ul>
  37. 37. <ul><li>DocStation functionalities can be integrated as part of a broader offering; </li></ul><ul><li>Implementation of your “house style / brand” </li></ul><ul><li>e.g., Ollygos [CM as additional tool for outsourced back office support] </li></ul>DocStation Offerings 4/ White label model
  38. 38. <ul><li>E-contracting tool as part of the business process: </li></ul><ul><li>e.g., web sales </li></ul><ul><li>Web based collaborative tools between buyer and seller to improve “time to contract”: </li></ul><ul><ul><li>outsourcing transactions </li></ul></ul><ul><ul><li>temporary company or consortium management. </li></ul></ul>DocStation Offerings 5/ Modular Approach
  39. 39. keybenefits
  40. 40. Q&A <ul><li>Questions? </li></ul>