Collaborative Business Commerce considers how you buy, how you sell, and how you manage cash not just within the four walls of your business but with your trading partners. At the heart of business commerce is the contract, representing the relationship between those trading partners. In this session, learn from thought leaders on how automation has helped them make contract management a key imperative and strategic differentiator for their company in not only containing costs, but in adding bottom-line business value.

1. Drive Compliance, Mitigate Risk and
Prevent Savings Leakage through
Collaborative Contract Management
© 2013 Ariba, Inc. All rights reserved.
Moderator:
Sundar Kamakshisundaram, Ariba, an SAP Company
Guest Speaker:
Helle Kierbye, Nordea

2. Agenda
• Introduction
• Importance of Collaborative Contract
Management
• Customer Panel Presentation
Collaborative Contract Management at Nordea
• Q & A
© 2013 Ariba, Inc. All rights reserved.2

3. 60% of corporate
litigations are
related to
contract disputes
Source: Fulbright & Jarowski
2010 Annual Litigation Survey© 2013 Ariba, Inc. All rights reserved.

4. Sourcing and Contracting Today
Requires the ability to deliver savings results quickly
Are my Buyers
meeting
savings
targets?
What
information do
we have on the
supplier?
Where is the
latest contract
template?
Where is the
supplier’s
contract?
I must
increase my
spend under
management!
Am I missing
opportunities to
re-source or
renew contracts?
How do I
deliver a rapid
time-to-value?
I need to
maximize cost
savings!

5. Contract Management
© 2013 Ariba, Inc. All rights reserved.5
eCONTRACTS – THE GLUE to Drive Compliance!
Contract terms
and
Consumption
Catalog items

6. Aberdeen Report: The 2010 Guide to Driving Savings and Procurement Performance
Contract compliance – key to
minimizing savings leakage

7. The Benefits of Collaboration
Source: McKinsey & Company, “The rise of the networked enterprise,
Web 2.0 finds it’s payday.” Survey of 4,394 executives. Spring 2011
“ Networked enterprises are 50% more likely to
have increased sales, higher profit margins, gain
market share, and be a market leader. ”
41%
improved
collaboration
across
silos
55%
better
information
sharing
24%
increased
revenue
77%
increased
access to
knowledge
63%
increased
marketing
effectiveness
43%
greater
market
share
8%
higher
margins
“Increasingly companies are
embracing collaboration as part
of their strategy to grow.”
© 2013 Ariba, Inc. All rights reserved.7

8. Contract Management: Typical
Adoption Stages
Stage 1:
Central
Repository
 Easy to search
 Good access
controls
 Contains header/
structured data and
all documents
 Automated alerts
 Reporting
Stage 2:
Contract
Authoring
 Use of clause and
template libraries
 Integration with
Microsoft Word
 and external
collaboration tools/
workflows
 Associated
reporting
Stage 3:
Integrated
Compliance
 Structured item/
pricing data
 Automated back
end establishment/
call-off
 Usage-based
alerting
 Advanced usage
reporting

9. Determining Contract Management
Priorities
Repository
• Contract portfolio assessment (active, expired; spend coverage)
• Reporting and visibility needs (for manual compliance as well)
Authoring
• Streamlining contract creation processes
• Minimizing risk relating to contract language
Compliance management
• Employee usage of the right contracts
• Automating pricing structure compliance
What is your company’s top priority today?

10. Agenda
• Introduction
• Panel Discussion
• Key Takeaways
• Q & A
© 2013 Ariba, Inc. All rights reserved.10

11. The Panel Team
Guest Speaker: Helle Kierbye
Head of Sourcing Development & Projects , Nordea
© 2013 Ariba, Inc. All rights reserved.11
Moderator : Sundar Kamakshisundaram,
Sr. Director – Solutions Marketing, Ariba, Inc

12. Collaborative Contract
Management

13. From static repository to collaboration
HBR: To build collaborative communities, companies must master a new set of
skills:
• Define and build shared purpose
• Cultivate an ethic of contribution
• Develop scalable processes for coordinating people’s efforts
• Create an infrastructure in which collaboration is valued and rewarded
13

14. Repository
14
Current state
Challenges Milestones / Deliveries
• Two Sourcing organizations with different reporting lines
• Category management area of responsibility do not always follow
organizational structure
• Five category mgt. teams and two contract mgt. teams reporting
into two different organizations
• Contract owners and budget owners not always identical
• Lack of clear guidelines and contract structure
• Lack of clear change procedures
• Data mismatch
Creation of Business process ownership
forum/Change body
Using ”Payment forms” to allocate contract spend
All savings registered in Ariba
Creation of Operational Handbook
Contract naming convention
Creation of supplier workspaces
Learnings Master Data Project
• Business Process Ownership
• One operating model
• Clear guidelines

15. Status on CM Repository
• Number of active suppliers: 1053
• Number of active contracts: 2053
15

16. Authoring
16
Current state
Challenges Milestones / Deliveries
• Negotiating changes to our contract template require access to
scarce legal resources
Creation of a clause library (Low tech)
Ariba integrated Clause Library?
E-signing?
Learnings
• The business case for authoring Contracts in Ariba Contract
Management is still a work in progress since most of our
contracts are based on our internal Master Contract template

17. Compliance management
17
Current state
Challenges Milestones / Deliveries
• Lack of knowledge about “Global” agreements and terms
• Lack of good service descriptions lead to “double buying” of
same services
• Not able to capture spend per contract
• Not able to follow up on compliance and perform discount
management on all contracts
Develop tailor-made dashboards on IPhone app
Capture contract on invoice
Using payment forms to allocate spend
E-auctions as a call-off method in “falling” markets
Better service descriptions on contracts
Enrichment of the UNSPSC structure to better suit
our needs
Learnings
• Communication, communication, communication….
• Reliable data is a prerequisite for managing compliance
• Good processes are a prerequisite for reliable data

18. Demo
18

19. © 2013 Ariba, Inc. All rights reserved.
Define Goals Clear definition of Goals and Priorities
Obtain Executive Sponsorship from senior leadership
(e.g., CPO, Chief Counsel, CMO, Business unit GM)
When implementing solution, balance system
capabilities with trying to meet business need
Executive
Sponsorships
Balance Need &
Requirements
Collaborate Be willing to collaborate with key stakeholders including legal
and marketing on rollout and adoption
Prepare clear documentation, design simple process and
define strict compliance policies to drive adoption
Drive Adoption
Summary and Key Take-aways

20. © 2013 Ariba, Inc. All rights reserved.20
Q&A
Contact info:
Sundar Kamakshisundaram: sundar@ariba.com

21. © 2013 Ariba, Inc. All rights reserved.21
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