Reduce Risk And Deliver Efficiency In Managing Contracts

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Reduce Risk and Deliver Increased Efficiency for Managing Contracts


We Live in Challenging Times…

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-101708.aspx


The Impact of Contracts

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

IMPORTANCE OF CLM IN THE QUOTE-TO-CASH CYCLE

Essential52%

Important31%

Not important2%

Somewhatimportant

15%

AVERAGE PERCENTAGE OF REVENUES BASED ON CONTRACTS

56% 68%

Currently In two years

21%


Contracts Effects All Industries

‘Sell-Side’

‘Buy-Side’

Institutions; Ultra, High Net Worth

Individuals

Trading Partner Intermediaries

‘Customers’

Wholesalers, Distributors,

Broker-Dealers and Retail

Chains

Service Providers, Business Partners,

Employees

Direct/Indirect Goods/Materials

Suppliers

IMAs

FFS

CTRAs/ CTMAs

IP Licensing

Agreement

SOWs

NDAs

MSAs

MTAs

Performance Based

Rebates

‘Off-Invoice’ Discounts

MEDAs

PBM Price ‘Grids’

Consulting; Research; Technology Vendors,

Facilities, etc.

‘Raw’ Material Suppliers,

‘Finished Goods’ Suppliers, etc.

GPAs

SWLAs

RCAs

GOVPs

DCAs

SAs

EAs

Sample Company

Clinical Supply Agreements

WSAs

PDAs

DSAs


Contract Lifecycle Management


Benefits of CLM automation 6 to 11 month ROI

Improvement Area Performance ImpactCompliance 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 itemsContracting 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 minutesContract analysis Analyze and maximize performanceAdministrative costs Reduce by 25%-30%

Source: Aberdeen study, The Contract Management Solution Selection Report: Handbook for CLM Strategy & Solution Selection.


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


EMC’s Contract Lifecycle Management Product Suite

Contract Life ManagementContract Life Management

EMC Contract Lifecycle ManagementEMC Contract Lifecycle Management

Business Process ManagementBusiness Process Management

Customer Communications ManagementCustomer Communications Management

Centralized Repository with ComplianceCentralized Repository with Compliance

Creation / authoring

Assessment of risk Negotiations Review /

approvalAnalysis and

reporting Auditing

Content ManagementContent Management


Anatomy of a Contract

Logos, signatures, and branding images automatically merged

Clauses reused from searchable, preapproved library

Changes are tracked with complete version history

Automated assembly and workflow eliminates manual processes

Final contracts are archived with appropriate metadata


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


Legal reviews and approves the final contract

Create initial contract

Paperless Review and Approval

Package

ChangesFinal

Archive

Batch Print

E-mail

Negotiating party reviews and modifies contract with Word


Customer Communications Management









reporting Auditing



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


Generation

Declarations,Endorsements

Agreements

Contracts

Policies

Channels

Batch Print

Email

Archive

Web

Mobile

High-volume Batch

Workflow

Interactive

Initiated

xPression for Contracts

Design

Data

ECM Documentum

Design Tools

XML


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


Business Process Management









reporting Auditing



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


Real-Time Process Performance at Your Fingertips

Rich user experience for managing dynamic business processes – sense, assess, respond

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.


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 roles\groups 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

Solution

EMC Documentum Process Suite

Data Point As Is To Be ChangeNumber of Steps 78 61 18% reductionNumber of Handoffs 39 22 44% reductionNumber of Manual Steps 51 24 53% reductionTouch Time 102 hours 88 hours 15% reductionTotal Time 408 hours 302 hours 25% reductionControl Points 5 12 160% increase


Content Management and Centralized Repository with Compliance









reporting Auditing



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


Secure Document Archiving

Key Points All contracts retained to ensure compliance

reducing risk Includes records management, retention

policies, audit trails, search and archive

Contracts(agreements, policies)

MetadataAuthorDateTermsContract #Customer


Benefits

Revenue Enhancements• Increased win rate by 15%

• Reduced solution cycle time by 20-40%

• Reduced non-std contracts by 15-40%

Cost Reduction• Resource efficiencies between 1–5%

• Application rationalization savings ($1 M/year)

Risk Mitigation• Undisclosed reduction in risk of fines, penalties,

fees and interest

The average percentage of a company’s revenue

from contracts is expected to increase from 56

percent to 68 percent over the next two years.

Aberdeen Group


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

Reduce Risk And Deliver Efficiency In Managing Contracts

Technology

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