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Emptoris – UX Redesign
§ Leveraging IBM Design Thinking team, developing simplified use cases, personas, and
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§ Working closely with sponsored users in driving the new design
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IBM and IACCM: Emerging Contract Management Strategies
The document discusses emerging contract management strategies, highlighting the shift from traditional compliance towards a focus on principles, capabilities, and collaborative relationships in commercial management. It emphasizes the importance of integrity, risk management, and sustainability while outlining IBM's procurement transformation, which aims for centralized control and efficiency in contract management. Key features include the use of technology for improved visibility, reduced contracting cycles, and a commitment to best practices in contract lifecycle management.
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- 1. Growing into theFuture: Emerging Contract Management Strategies Presentation Materials
- 2. 20/01/15 | Contract& Commercial Management | What Lies Ahead? Dependency on supply networks – 70% of revenueFrom managing enterprise efficiency to managing market and relationship outcomes The Environment Relationships changing – attitudes to risk and collaboration“Honesty and integrity’ key as business attributesQuality of trading relationships – selection and managementSo what does this mean for ‘commercial management’?
- 3. 20/01/15 | Contract& Commercial Management | What Lies Ahead? What Lies Ahead? Trends we are observing at IACCM 2015 and beyond
- 4. 20/01/15 | Contract& Commercial Management | What Lies Ahead? As Markets And Supply Networks Fragment And Diversify From ‘rules and compliance’ to principles, capabilities and needs 1 Business enablement: right suppliers, right customers, right outcomes
- 5. 20/01/15 | Contract& Commercial Management | What Lies Ahead? Selection criteria will adjust to measure integrity, agility and to ensure greater cultural fit Risk And Sustainability Continue To Evolve 5 Trading partners will become more integrated
- 6. 20/01/15 | Contract& Commercial Management | What Lies Ahead? Commercial Excellence & Contract Management Commercial Excellence: Understanding markets and segmentation; sources of value and differentiation; management information; revenue and profit impacts Contract Management: Management of change; oversee integrity and performance; deliver commercial outcomes
- 7. © 2015 IBMCorporation IACCM Conference Procurement Contracts Transformation and Technology March 5, 2015 Bob Murphy V.P., Supply Chain & Chief Procurement Officer
- 8. © 2015 IBMCorporation8 Agenda § IBM Strategy and Global Procurement § Global Procurement Transformation § Global Procurement Contracts Transformation § Technology Support
- 9. © 2014 IBMCorporation9 Global Procurement is an integral part of IBM’s Strategy Deliver integration and innovation to clients Focus on open technologies and high- value solutions IBM Strategy Data / Analytics Engagement: Mobile Social Security GLOBAL PROCUREMENT Cloud
- 10. © 2014 IBMCorporation10 Agenda § IBM Strategy and Global Procurement § Global Procurement Transformation § Global Procurement Contracts Transformation § Technology Support
- 11. © 2015 IBMCorporation11 Functional, Geographic “Silos” IBM Global Procurement Transformation Horizontal and Integrated Broad and Deep T-Shape Skills Common and Distributed Global and Smarter Generalists Inconsistent and Fragmented Tactical and Administrative All tied together by a strong Governance Model! ORGANIZATION PEOPLE BEFORE TODAY PROCESS TECHNOLOGY
- 12. © 2015 IBMCorporation12 IBM Global Procurement Profile $52.1B Managed spend 17K Countries100 $6.9B Annual Cost Savings Contribution Global Procurement Operations centers5 Suppliers
- 13. © 2015 IBMCorporation13 Agenda § IBM Strategy and Global Procurement § Global Procurement Transformation § Global Procurement Contracts Transformation § Technology Support
- 14. © 2015 IBMCorporation14 Decentralized Global Procurement Contracts Transformation Centralized Global Master Agreement with Supplier Pre-approved Contract Templates Shorter contracting cycle Multiple Agreements with same Supplier Extensive legal review required Long contracting cycle THEN NOW Short-term Supplier relationships with multiple Suppliers No central repository Long-term evergreen Supplier relationships with fewer Suppliers Contracts Management Tool
- 15. © 2015 IBMCorporation15 Established Contract Templates Work Authorization Participation Agreement Statement of Work Master/ Base Partnered with Legal
- 16. © 2015 IBMCorporation16 Established Center of Excellence to Support Select Agreements Routine Agmts CoE One Process - One Global Team Centralized Support by Geo Centralized Legal Network AM – AP - EMEA Pre-CoE Many processes - Many Teams - Many Owners Ad hoc support of routine agreements by Sourcing Teams, Hubs, Ops, and CSP Center of Excellence One Process – One Global Team Centralized Support Pre – Center of Excellence Many processes – Many Teams – Many Owners
- 17. © 2015 IBMCorporation17 Managing Contract Risk throughout the Lifecycle Contract Management Solutions Contract Initiation and Assembly Negotiation and Approvals Commitment and Obligation Compliance Contract Discovery and Analytics Audit-ability / Accountability Manage Mitigate Monitor
- 18. © 2015 IBMCorporation18 Agenda § IBM Strategy and Global Procurement § Global Procurement Transformation § Global Procurement Contracts Transformation § Technology Support
- 19. © 2015 IBMCorporation Technology Transformation 19 Leverage volume of annual spend Global visibility to Supplier Contracts Reporting & Search capabilities Reduce Interaction with Legal Reduce Contracting cycle time
- 20. © 2015 IBMCorporation20 Implementation of Contract Management Tool Global Tool for a Global Organiza:on Template Library Global Owners 1000s of Records
- 21. © 2015 IBMCorporation21 IBM Procurement Contract Management Fact Sheet 148K Agreements Active 28K Countries deployed100 200 Legal Templates 4K Users Internal Attachments migrated625K Agreements / Amendments Executed 2014 59K Supplier records 40 Languages 100%utilization
- 22. © 2015 IBMCorporation22 Value Realized from Transformation Data Analytics Benefits Opportunities Contract Management Tool Leverage Spending Continuous Transformation Category Strategy Strong Governance Model Consistent Processes Contract Templates GLOBAL PROCUREMENT
- 23. © 2015 IBMCorporation23 DEFINE YOUR STRATEGY DEFINE YOUR PROCESSES CLARITY IN GOVERNANCE LEGAL IS A KEY PARTNER Lessons Learned TECHNOLOGY CONTINUOUS IMPROVEMENTS
- 24. © 2015 IBMCorporation24 Contracts becoming Social….
- 25. © 2015 IBMCorporation25 People Talent ACrac:on Innova:on Technology Compe::ve Advantage Business Impact Security of Supply Reputa:onal Risk Sustainable Cost Management Regula:on & Audit Where are we heading to?
- 26. © 2015 IBMCorporation26 Questions?
- 27. © 2014 IBMCorporation27
- 28. State of FluxPresentation Contract Management
- 29. © 2012 IBMCorporation Agenda § About State of Flux § 2014 global SRM research – contract and performance management results § Contract lifecycle management (CLM) overview § State of Flux CLM diagnostic tool 29
- 30. © 2012 IBMCorporation State of Flux is a global procurement and supply chain consultancy Headquartered in London, UK, State of Flux works closely with its multinational clients to help upgrade their procurement and supply chain capabilities, drive best practice and deliver superior business performance. Our service offerings include: § Supplier management § Category management and strategic sourcing § Contract lifecycle management We have an extensive list of multinational clients, including Unilever, Barclays and McLaren Automotive. As well as our consulting services, we offer training and an award-winning Supplier Management Platform. 30
- 31. © 2012 IBMCorporation Six years of research into supplier relationship management (SRM) 2014 2014 GLOBAL SRM RESEARCH REPORT (Publication November 2014)
- 32. © 2012 IBMCorporation Increasing number of survey respondents over the years 314 companies 224 companies 2012 2013 505 companies 2014
- 33. © 2012 IBMCorporation Still room for improvement in performance and contract management For what proportion of your key supplier group would you consider you have robust performance management in place? For what proportion of your key supplier group would you consider you have robust contract management in place? 33 10% 31% 18% 21% 19% 0% 5% 10% 15% 20% 25% 30% 35% Don’t know 0 - 25% 26% - 50% 51% - 75% 76% - 100% 10% 22% 18% 23% 28% 0% 5% 10% 15% 20% 25% 30% Don’t know 0 - 25% 26% - 50% 51% - 75% 76% - 100% Very similar figures to 2013
- 34. © 2012 IBMCorporation Contract and performance management – most widely used areas in SRM technology For which areas do you currently have an IT system / software application? 34 58% 41% 36% 29% 28% 27% 23% 22% 20% 15% 9% 8% 6% 0% 10% 20% 30% 40% 50% 60% 70% Contract management Performance management Forecasting and planning Project management Risk management Benefits capture and reporting Quality management Category management Relationship management and collaboration CSR / sustainability management Product lifecycle management (PLM) Other (please specify) Innovation management
- 35. © 2012 IBMCorporation What is contract lifecycle management? The proactive management of external supplier contracts throughout their life, from initiation to execution, administration and analysis. 35
- 36. © 2012 IBMCorporation There are five stages to the State of Flux contract lifecycle 36
- 37. © 2012 IBMCorporation What does ‘best practice’ CLM look like? 37 Processes Creation Sign off Physical design Uploading Updating SPM / SRM TOM People Design + buildProcess 3 weeks Data model Reporting Fields to be tracked 6-8 weeks Technology Discovery collection (30,000) Segmentation Cleanse 12,500 WATSON WATSON People Job Design Description Training
- 38. © 2012 IBMCorporation What does ‘best practice’ CLM look like? Process § Complete process – covers entire contract lifecycle, from creation to renewal and analysis. § Clear communication – defined by clear flow charts and communicated to all impacted stakeholders. § Effective engagement – involves representatives from all appropriate functions. § Continuous improvement – regular process compliance audits fed into ongoing improvement programme. § Clear exception process – deviations from standard clauses and contract language are captured, reviewed and approved by appropriate personnel. 38
- 39. © 2012 IBMCorporation What does ‘best practice’ CLM look like? People § Clear roles and responsibilities – clearly defined roles communicated to all of those involved in the process. § Effective training – adequate, timely and up-to-date training for all impacted individuals on roles, policy, tools and systems. § Clear motive – all impacted individuals informed of why the process is important and valuable to their role and the wider business. § Suitable competencies – appropriate resources obtained for various roles within the process. § Compliance management – clear process owner accountable for reporting on process and policy compliance. 39
- 40. © 2015 IBMCorporation40 Contract Lifecycle Mgmt Business Insights User Experience Security & Configurability Post Contract Pre Contract External Party Qualification Contract Creation to Execution Obligations Management Relationship Management Contract Lifecycle Management – Enabling Technologies Compliance Management Administration Renewal Management IBM CONFIDENTIAL
- 41. © 2015 IBMCorporation Emptoris – UX Redesign § Leveraging IBM Design Thinking team, developing simplified use cases, personas, and “hills” for focused UX improvement [Who, What, WOW!] § Working closely with sponsored users in driving the new design 41 Before After IBM CONFIDENTIAL
- 42. © 2015 IBMCorporation Contract Management Dashboard and Editor Screen 42 IBM CONFIDENTIAL
- 43. © 2015 IBMCorporation Search and Preview 43 IBM CONFIDENTIAL
- 44. © 2015 IBMCorporation Responsive Design – identifies and formats based upon device type 44 Tablet Mobile IBM CONFIDENTIAL
- 45. © 2015 IBMCorporation45 IBM CONFIDENTIAL
- 46. © 2015 IBMCorporation46 IBM CONFIDENTIAL
- 47. © 2015 IBMCorporation47 Problem Impact Solution Missed Dates - Higher contracting costs - Penalties incurred Milestone Dates Late Payments - Missed discounts - Discount never received altogether Discount/Payment Schedule SLA’s Not Met - Delayed projects - Operational impact Deliverables & Commitments Late Renewals Added fees & penalties Expiration & Renewals Lack of Visibility Poor compliance to contracted terms Business Reviews Certifications Expire Increased risk and exposure Supplier Management Contract Obligation Management IBM CONFIDENTIAL
- 48. © 2015 IBMCorporation48 Contract Obligation Management Alerts Action: Review Action: Create/Update Author Review Approve NegotiateExecute Manage Amend Manage IBM CONFIDENTIAL