1© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Organized by Featuring
How Vodafone is Building the Future of Commercial Contract Management
Webinar
Feb 7, 2017
2© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Agenda
How Vodafone is Building the Future of Commercial ContractManagement
• Vodafone and VPC Overview
• Key Supplier Management Challenges for VPC
• VPC’s Response: CCM – Overview, Objectives, Implementation
• Role of Technology (Sirion) within CCM
• Key Successes and the Road Ahead
Q & A
Reinhard Plaza-Bartsch, Group Head of Commercial Contract Management,
Vodafone
Overview of SirionLabs and its Transformative Contract and Supplier Management Technology
Ajay Agrawal, Founder and CEO SirionLabs
Introduction and Insights Tim Cummins, President and CEOIACCM
3© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Today’s Speakers
Reinhard Plaza-Bartsch, Group Head of Commercial Contract Management, Vodafone
Reinhard’s core principle is to develop in teams a culture of creating value by transforming traditional ways ofoperating. With over 15 years in Supply Chain, Procurement and Operations Management roles, Reinhardhas led global complex transformation programmes and has provided companies with a competitiveadvantage by consistently delivering double digit operational efficiencies through innovation. At Vodafone,he has been pivotal in the transformation of the global supply chain function and has been a key contributorto the establishment of the Vodafone Procurement Company which centralizes +70% of Vodafone’s globalspend.
He currently serves as Group Head of Commercial Contract Management, where he is transforming howVodafone is managing its relationship with its strategic partners by driving stronger collaboration andtransparency through best practices and automation. Reinhard holds an MBA from Purdue University –Krannert School of Management, and a B.Sc in Industrial Engineering from Universidad de Lima.
4© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Today’s Speakers
Ajay Agrawal, Founder and CEO, SirionLabs
Ajay has been a product visionary in the strategic legal technology space for more than 20 years. He foundedUnitedLex Corporation in 2006 – a global leader in legal process outsourcing and strategic legal technology –leading the company through a period of profitable growth creating over $100mn in enterprise value in 4 years.Ajay has worked as a securities law expert in some of the world's leading firms and investment banks. He servesas an entrepreneur-in-residence at CodeX, the Center for Legal Informatics at Stanford University. Ajay holds anLL.M. from Columbia University, LL.B. from Trinity College, Cambridge and a B.A. in Semiotics from BrownUniversity.
Tim Cummins, President and CEO, IACCM
As CEO of IACCM, Tim works with leading corporations, public and academic bodies, supporting executiveawareness and understanding of the role that procurement, contracting and relationship managementincreasingly play in 21st century business performance and public policy. Prior to IACCM, Tim's business careerhas involved multiple industries and included executive roles at IBM. Tim's writing is extensively published andhe has acted in an advisory capacity to government bodies as well as many of the world's largest companies.
5© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
About the Organizers
The International Association for Contract & Commercial Management enables organizations and professionals toachieve world-class standards in their contracting and relationship management process and skills.
For more information, visit www.iaccm.com
SirionLabs is transforming the way buyers and suppliers of complex services engage with eachother using its SaaS platform – Sirion. Leveraging automation and advanced analytics, Sirionhelps buyers and suppliers create higher value and more successful relationships, whileeffectively managing cost and risk in strategic services engagements.
For more information, visit www.sirionlabs.com
PORTFOLIO COMPANY
UK Government G-Cloud Supplier
Key demands and pressure points
• Commercial innovation – a critical source of growth and competitive advantage
• Agility – the need to move fast in unpredictable and rapidly changing geopolitical and economic conditions
• Demonstrate an ROI – functions as business units, not cost centers
6
What it means – emerging trends
• New contract and commercial models
• Focus on enabling
• A focus on ‘outsights’ and performance data
• Collaborative networks
• Leadership and influencing skills
7
What it means – the critical enabler
• Technology and adaptive standards
• Transformational technologies are no longer 2 years away
8
9© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Building the Future of
Commercial Contract
Management
Local markets
Partner markets and affiliates
Revenue
Mobile subscribers
Fixed Broadband customers
TV customers
IoT connections
26
58
£41bn
464m
13.7m
9.5m
38m
10
Vodafone Overview
We connect everybody to live a better today and build a better tomorrow
Vodafone Proprietary
Vodafone Supply Chain at a Glance
11
Terminals
Technology
Commercial & Services
Travel/Fleet
Merchandising
Property
HR Services
Value Added Services
Paper & Print
Media
Customer Operations
Radio Equipment
Access Transmission
Core Switching
IT Professional Services
Fibre
Energy
Enterprise Applications/Software
Handsets & Devices
SIM Cards & Software
Pre-pay Vouchers
Datacards/Dongles
Accessories
Gateway Boxes
Cloud & Hosting
Network Services
Servers/Storage/IT Infrastructure
Backbone Transmission
Network Infrastructure
Laptops/Desktops
Vodafone Proprietary
Are We Really Getting the Full Value of Our Contracts?
Vodafone Proprietary 12
How well are we managing our contracts?
Contract Communication
Change Management
Operational
Leakage
Relationship
Damage
Risk
Exposure
Contract
Leakage
People & Processes
Performance Management
Systems &
ToolsReporting & Governance
Implications
Contract
Communication
Change
Management
People &
Processes
Performance
Management
Systems &
Tools
Reporting &
Governance
Commercial Contract Management | The Beginning of our Business
Transformation
Vodafone Proprietary 13
Supplier Governance
Technology Backbone
Exit/RenewalIn-Life Contract ManagementHandoverSourcing
9. Exit and
Renewal
4. Compliance
Monitoring
6. Contract
Governance
5. Transaction
Monitoring
7. Change
Management
8. Dispute
Management
2. KPI / SLA
Monitoring
3. Risk
Monitoring
Exceptions
Management
Performance
Monitoring
Formal
Governance
1. Handover &
Comms
Transition to contract
management
Upon reaching
contract
milestones
Designing the Future of CCM | Our Blueprint
Pre-Requisites
CM leads
CM & CCM
team up
CCM leads
Contract Management Cycle
Vodafone Proprietary 14
Designing the Future of CCM | Our People
15
Global Category Manager
Global / Local Business Contract Manager
(e.g. Vendor Manager, Delivery
Manager, Partner Manager)
New - Global / Local Commercial Contract Manager
• Complementary during In-Life management stages (CCM on the commercial side and BCM
on the technical/operational side)
• Supplier Governance
• Technical solution
• Supported by the CCM CoE
• Supplier Governance
• Contract handover
• Supported by the CCM CoE
Vodafone Proprietary
Designing the Future of CCM | Setting the Priorities
16
Highest
Least
Degree of
Effort and
Focus for
CCM
Top 40%
Segmentation % Market Spend Characteristics
Remaining 60%
Full
Partial
Light-Touch
Top 40%
Contracts which form part of the top 40% of market spend, but do
not demonstrate all characteristics for Full
segmentation
Global Governance
New commercial models
Strategic Relevance
Global footprint (>3 markets)
Vodafone Proprietary
Designing the Future of CCM | Leveraging on Technology
Data Normalization
SERVICE PERFORMANCE
TRANSACTIONAL DATA
CONTRACTSSUPPLIERS
+25bn€ spend
+15k +20k
+100 other CRM and
Network systems
+820K POs per year
COMPLIANCE MANAGEMENT
OBLIGATION MANAGEMENT
RISK MANAGEMENT
PERFORMANCE MANAGEMENT
RELATIONSHIP MANAGEMENT
Business Insights
Vodafone Proprietary 17
Simple & User-friendly
Enables Collaboration
Provides Data Insights
Scalable (End-to-End
Lifecycle)
18
Driving Business Transformation Year-on-Year
Vodafone Proprietary
15%
69%
81%
0
20
40
60
80
100
120
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2014-2015 2015-2016 2016-2017
Value
% Compliance with Blueprint
Sirion Functionality and Implementation
19Vodafone Proprietary
Jan 2016
POC
kick-off
Migration of
Suppliers and
Contracts
Extraction of
Service Levels
and KPIs
July 2016
Go-live with
300+ users,
60+ contracts
Integration with
SAP
Expansion to
650+ users,
100+ contracts
Nov 2016
Dynamic contract repository with
comprehensive obligation and service
levels capture
Automated performance validation
against contractual obligations
Data-backed relationship
management
Functionality
Highlights
Implementation
Onboarded suppliers
start reporting
performance on
Sirion
Analytics and Insights | Dashboards
Vodafone Proprietary
Dummy Data for Illustration Purposes
20
Analytics and Insights | Dashboards
21Vodafone Proprietary
90
110.4
66.1
39.6
102.5
53.4 15.4
86.8
Project X
Dummy Data for Illustration Purposes
Driving Awareness and Adoption
Vodafone Proprietary 22
CCM Knowledge Portal
Onsite & online training
+ Webinars and onsite forums….
Where We are Today with Our System Deployment
Vodafone Proprietary 23
Effective supplier governance to streamline supplier performance monitoring, reporting, and in-life contract
management through:
• Centralization of contracts in a structured format to enable quick computation, validation, comparison, and analytics
• Automated obligations management, SL management, invoice auditing, and value tracking against contracted
business case
• Effective management of supplier risks and issues on a single platform
• Enhanced compliance through automated compliance tracking
+1000
Users Across the
Enterprise
20,000+
Service Levels and Obligations
Under Management
Strategic Suppliers
Under Management
+75
The Road Ahead
Vodafone Proprietary 24
25© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Company Overview
PORTFOLIO COMPANY
USA
INDIA
GERMANY
DENMARK
UK
SINGAPORE
UK Government G-Cloud Supplier
Sirion is transforming the way buyers and services suppliers engage with each other
26© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
How are Services Engagements Managed Today? | Largely Manual, Performed in Silos
Traditional, manual, disjointed approach for managing the buyer-supplier engagement
Legal / Contracts
Compliance Management
Project Management
Financial Management
Service Delivery
Corporate Risk
Legal / Contracts
Relationship Management
Procurement
What was promised? What actually happened?What was invoiced?
SalesFinancial
ManagementPerformance Management
BUYER ORGANIZATION
SUPPLIERORGANIZATION
Ente
rpri
se
Silo
sTe
chn
olo
gy
& T
oo
lsEn
terp
rise
Si
los
Tech
no
logy
&
To
ols
27© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
How are Services Engagements Managed Today? | Largely Manual, Performed in Silos
Traditional, manual, disjointed approach for managing the buyer-supplier engagement
Legal / Contracts
Compliance Management
Project Management
Financial Management
Service Delivery
Corporate Risk
Legal / Contracts
Relationship Management
Procurement
What was promised? What actually happened?What was invoiced?
SalesFinancial
ManagementPerformance Management
BUYER ORGANIZATION
SUPPLIERORGANIZATION
Ente
rpri
se
Silo
sTe
chn
olo
gy
& T
oo
lsEn
terp
rise
Si
los
Tech
no
logy
&
To
ols
$
$
Value Leakage
equivalent to
15-20% of ACV
Revenue Leakage
equivalent to
3.8-10% of ACV
28© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
How are Services Engagements Managed Today? | Largely Manual, Performed in Silos
Financial Management
Service Delivery
Corporate Risk
Legal / Contracts
Relationship Management
Procurement
What was promised? What actually happened?What was invoiced?
BUYER ORGANIZATION
Ente
rpri
se
Silo
sTe
chn
olo
gy
& T
oo
ls
Sirion’s Integrated Solution for Commercial Engagements
FINANCIAL MANAGEMENT
PERFORMANCE MANAGEMENT
RISK MANAGEMENT
CONTRACT MANAGEMENT
RELATIONSHIP MANAGEMENT
CONTRACT AUTHORING
Legal / Contracts
Compliance Management
Project Management
SalesFinancial
ManagementPerformance Management
SUPPLIERORGANIZATION
Ente
rpri
se
Silo
sTe
chn
olo
gy
& T
oo
ls
29© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
The Impact of Technology | Reducing Governance Effort and Cost
44%reduction in manual effort
POST-SIRION GOVERNANCE MODE
Reduction in manual effort through technology delivers significant reduction in cost of supplier governance
MANUAL GOVERNANCE MODE
30© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Sirion | Customers and Type of Strategic Services Managed
17 FORTUNE 500 AND GLOBAL2000 CLIENTS
Banking and Financial Services
Oil and Gas
Healthcare Wind Energy
Insurance Telecommunications
Information Technology
Aerospace andDefence
Airport Operations
Food & Beverage
TYPES OF IT SERVICES MANAGED
ADM
IT Infrastructuremanagement
IT Helpdesk
SIAM
Network Management
Data Center Management
Telecommunications Services
OTHER COMPLEX SERVICES MANAGED
BPO
Facilities Management
Third Party Logistics
Complex Manufacturing
Construction Projects
Contingent Workforce
Healthcare Services
31© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Summary and Key Takeaways
Focusing exclusively on front-end procurement processes and ignoring in-life
management of contracts leads to significant loss of value in commercial engagements
Ensure alignment between the contract, supplier performance and the invoice to drive
higher value in supplier engagements
Besides enhancing business outcomes and value, technology can help improve
collaboration, transparency and trust in the buyer-supplier relationship
32© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Q&A
33© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary.
Thank You!
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