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Achieve Higher ROI on Your Enterprise Contract
Lifecycle Management Solution
facebook.com/perficient twitter.com/Perficientlinkedin.com/company/perficient
2
Perficient is a leading information technology consulting firm serving clients throughout
North America.
We help clients implement business-driven technology solutions that integrate business
processes, improve worker productivity, increase customer loyalty and create a more agile
enterprise to better respond to new business opportunities.
About Perficient
3
• Founded in 1997
• Public, NASDAQ: PRFT
• 2013 revenue ~$375 million
• Major market locations throughout North America
• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Columbus,
Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los
Angeles, Minneapolis, New Orleans, New York City,
Northern California, Philadelphia, Southern California, St.
Louis, Toronto and Washington, D.C.
• Global delivery centers in China, Europe and India
• >2,100 colleagues
• Dedicated solution practices
• ~90% repeat business rate
• Alliance partnerships with major technology vendors
• Multiple vendor/industry technology and growth awards
Perficient Profile
4
BUSINESS SOLUTIONS
Business Intelligence
Business Process Management
Customer Experience and CRM
Enterprise Performance Management
Enterprise Resource Planning
Experience Design (XD)
Management Consulting
TECHNOLOGY SOLUTIONS
Business Integration/SOA
Cloud Services
Commerce
Content Management
Custom Application Development
Education
Information Management
Mobile Platforms
Platform Integration
Portal & Social
Our Solutions Expertise
Introduction
5
Amish Shah
Solution Director, Enterprise Contract Lifecycle Management
Amish has ten years of experience as an operations and
information technology consultant. His primary
responsibilities include managing enterprise-level contract
management implementations and providing thought
leadership around each aspect of the solution
development lifecycle.
Placeholder Slide for Polling Questions
• Polling Questions (Yes/No):
1. For most organizations, a new contract gets created no more
than every 6 minutes
2. The cost of implementing contract improvements per contract
over 5 years is less than the cost of a brand new iPhone
6
Agenda
I. Enterprise Contract Lifecycle Management 30 min.
(ECLM) and ROI Fundamentals
II. Perficient’s ROI Calculator for ECLM 20 min.
III. Summary and Next Steps 10 min.
7
Objectives
 Discuss the business value of contracting efficiencies and maximizing
“return on contracts”
 Provide a tool, literature, and references for getting started on
establishing the business case for ECLM
8
Perficient’s ECLM Experience
Services
 Current State Operations Assessment &
“Blueprinting’
 ROI Business Case Development and
Implementation Planning
 Contract Inventorying, and Template
Rationalization
 Requirements Definition and Software
Selection
 ECLM Systems Design &
Implementation
• Project Management
• Configuration/Customization
• Integration
• Data Migration
• Testing
• Training & Change Management
Case Studies & White Papers
 Best Practices for Authoring a Contract
through an Enterprise Contract
Management System
When choosing a contract management
system, it is important for the company
evaluating different solution offerings to
consider software that provides flexibility in
authoring a contract. This flexibility allows an
organization to reduce the time and cost of
creating contracts and increase throughput
of contracts with external parties.
 Enterprise Contract Lifecycle
Management for Healthcare Systems
Led the client in training all hospitals on how
to author contracts through a best-of-breed
ECLM solution. Rollout included
approximately 300 users and 3000
contracts.
9
Our Qualifications
Value Proposition
 Dedicated practice with more than two
dozen practitioners and experience with a
vast number of customers and industries.
 Understand “nuances” of the IBM Emptoris
solution minimizing “surprises” / risks
 Relationships with IBM Emptoris senior
management, with influence on product
roadmap strategy
 Library of solution accelerators for planning
and implementation (e.g., future state
blueprints, requirements, software selection,
roadmaps)
Select ECLM Clients
10
ECLM Maturity Levels
11
• Contracts are created
using MS Word and
tracked using Excel or in
Spreadsheet format.
• Contracts are stored in
white paper format in
filing cabinets.
• Contracts are not easily
visible and
search/sort/retrieval
takes a long time
• Contracts are created
using MS Word and
tracked using Excel or in
Spreadsheet format.
• Contracts are stored in
electronic format in a
single data repository.
• Contracts are visible to
a larger group of people
and can be
searched/sorted/
retrieved
• Contracts are created
using standard clause
templates and contract
templates.
• Contract Authoring
process makes use of
approval rules and
workflow events
• Contracts are stored in
electronic format in a
single data repository.
• Contracts are created
using standard clause
& contract templates,
approval rules,
workflow events and
triggers etc.
• Contracts are stored in
electronic format in a
single data repository
that allows reporting.
• KPIs are defined and
used in analysis
• Contracts are created
using standard clause &
contract templates,
approval rules, workflow
events and triggers etc.
• Contracts are stored in
electronic format in a
single data repository that
allows searching, sorting,
analysis & reporting.
• ECLM solution is
integrated with the ERP
system & other backend
systems
Level I Level II Level III Level IV Level V
Filing
Cabinets
Data
Repository
Templates
& Workflow
Analysis,
Monitoring &
Reporting
Integration
& Executive
Dashboard
RiskMitigation
Standardization, Compliance, Efficiency High
High
Low
The ROI of ECLM: Getting Started
12
Medical AffairsEurope SS&P RDQ
Corp.
Law
Europe
• CDA
• MSA
• GPA
• SWL
• SET
• CDA
• CSA
• MSA
• GPA
• SWL
• CSA
• HON
• QUA
• GPA
• IML
• CDA
• RGA
• CTA
• CTS
• TER
• RzEC
• DCA
• QUA
• MTA
• GPA
• LIC
• CDA
• QUA
• MTA
• CSA
• AAA
• CSA
• M&A
• CTA
• CTS
• HOT
• MUE
• NAS
• PRE
• CDA
• CSA
• LOG
• CTA?
• GOV
• MED
• COM
• CDA
• PTU
• Consulting Service Agreements
• Master Service Agreements
• Goods Purchase Agreements
• SW License Agreements
• Service Agreements
• Consulting Service
Agreements
• Master Service
Agreements
• Termination of
CSA Letter
• Data Purchase
Agreement
• Advertising Agency
Agreement
• Acknowledgement &
Agreement Letter
• CDA
• RCA
• FUA
• CSA• CSA
• MSA
• MLS
• SER
• SWL
• SVC
• TEA
• PRA
• MOA
• CDA
• SPA
• VCA
Addition: Stock
Administration
• SPO
• ABA
• PRE
• STA
• CSA (Health Care Pros)
• TCL
Law
Dept.
Legal’s
Clients
Contract Types
Enterprise View of Contracting (20K-40K Contracts/Year)
Buy-side
Procurement of
all goods and
services (less
dev.)
ECLM: On the Critical Path for Closed-Loop
Business Processing
13
Use segmentation and market intelligence derived from contract data to move from
 Spend Analysis to Spend Management
 Sales Analysis to Revenue Management
Sample ECLM Benefits
14
 Cost Reduction
– Vendor Compliance/Contract Coverage
– T&C Adjustments
– Improved Renewal Management
– Payment Penalty Reductions
– Application Rationalization
– Contracting Process Efficiencies
 Revenue Enhancement
– Increased Renewal Rate
– Automatic Rate Increases
– Increased Effectiveness (Proactive Negotiations; Analytics)
 Risk Mitigation
– Deal
– Supplier/Customer
– Supply/Product/Service
– Enterprise/Regulatory
Become a value producer
and not just a cost reducer
through ECLM!
Sample ECLM Costs
15
 Hardware & Software
– Software Licenses
• Internally Hosted
• Externally Hosted
• SAAS
– Hardware (App & Web Servers)
– Software Maintenance
– Ongoing Operations/Support
 Implementation
– Template Rationalization
– Application Installation & Configuration
– Application Integration
– Data Migration
– Testing
– Operational Readiness
– Program/Project Management
Sample ECLM ROI Calculation
16
ECLM ROI = $5-10M over 5 years
Client Examples of Tangible Business Value
17
Poor Visibility into Contractual Obligations and Liabilities Resulted in…
$10MM of IP royalty payments not collected because contract was not entered
into any system – i.e., zero visibility
• An internal audit found the contract which was on the desk of an employee who left the
organization 6 months prior
$20MM of penalties paid due to late payment (6 months) of contractual obligations
• 10-20% of company annual profit at risk due to underestimating
contractual obligations
• A/P understated
• Underestimated budgets for future liabilities
$4MM overpayment for a service procured without being aware of an existing preferred supplier
contract with lower prices
Polling Question Answers
18
1. For most organizations, a new contract is created no more than every 7
minutes
YES. Most organizations create between 20,000 - 40,000 contracts annually which amounts to a
new contract being created every 3 – 6 minutes.
2. The cost of implementing contract improvements per contract over 5 years
is less than the cost of a brand new iPhone
YES. The cost for implementing and support an ECLM solution over 5 years is roughly $5.6M,
divided by 40,000 contracts = $140 per contract (vs. $199 for the new iPhone 5S).
Enterprise Contract Management Implementation
Customer Profile:
Leading provider of information
technology solutions
Challenges/Situation
 Locating executed contracts and determining expiration dates for existing contracts
 Lack of a contract request process for over 300 sales individuals to easily enter contract
metadata and terms to generate a contract.
 Inability to track whether/not bid assurance has properly reviewed contract and if
appropriate approvals have been received on SOW before being presented to Customer.
 Contract execution (receiving Customer signature and internal counter-signed signatures)
taking too long.
Delivered Solution
 Integration between Onit (contract request system which also holds External Party
information) and Emptoris.
 Ability to draft, negotiate, review, approve, and execute Statement of Works and Change
Orders through Emptoris.
 Internal signatory clauses can be inserted into contract (only by individuals with the correct
security) in lieu of e-signature functionality.
Business Benefits/Results
 Better success in end-user compliance with internal policy guidelines
 Retirement of SOW Central (legacy SharePoint directory holding contracts)
 Reduced drafting, review, approval, and execution time for contracts
 Ability to present contract via email directly to external party rather than having to send
contract offline (through Outlook)
 Template governance in place allowing appropriate individuals from Program Sales and
Legal to make legal/business language updates.
ECLM Framework
Where Do ECLM Opportunities Exist?
.
ECLM Stakeholders ECLM Business Drivers
Procurement, Sales &
Marketing, IT
 VP, Sales
 VP, Marketing
 Chief Procurement Officer
 CIO
 Contract Administrators
 Enterprise Cost Reduction, Expense Management, Vendor
Consolidation Programs
 Missed Revenue/Spend Targets and/or Leaving $$ on the Table
 Extensive Lead Times for Obtaining Contractual Commitments
 Inadequate Infrastructure, Scalability, and Internal Service and
Support
Legal and Compliance
 General Counsel
 Assoc GC
 Chief Compliance Officer
 Cost Reduction of Law Department; Downsizing of Legal staff
 Improve Corporate Compliance with Government Regulations
 Unfavorable Judgments and Heavy Fines Levied Due to Missing
Contracts or Rogue Contracting
 Due Diligence due to M&A Activities
Perficient’s ECLM Value Proposition
 Dedicated ECLM consulting practice
– Approx. dozen practitioners
– Experience with approx. 20 customers
 Solid ECLM implementation experience
– Understand “nuances” of best-of-breed ECLM solutions
– Minimizes “surprises” and risks for implementation planning
 Recognized as “thought leaders” of ECLM
– Relationships with ECLM vendors ranging from senior management to line staff
– Actively influence product roadmap strategy
 Extensive library of solution accelerators for ECLM planning
– Future state blueprints, requirements, roadmaps, documentation
– Minimizes risk, work effort and duration for planning and implementation
Additional ECLM Resources
Resources
 International Association for Contract & Commercial
Management (IACCM)
 National Contract Management Association (NCMA)
 Analyst Reports (Gartner, Forrester)
Links
www.iaccm.com
www.ncma.com
Perficient’s Literature & ROI Tool**
 Perficient Literature
 ECLM Overview
 ECLM Assessment
 White Papers
 “Best Practices for Authoring a Contract through an Enterprise Contract Management System”
 ECLM ROI Calculator
** Denotes thought leadership material that Perficient will provide participants of 
Perficient’s Roundtable Discussion for ECLM ROI 
Questions
24
Thank You!
For more information contact:
Amish Shah
amish.shah@perficient.com | 847-849-7424
www.facebook.com/perficient
www.perficient.com
www.twitter.com/perficient

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IBM Enterprise Contract Management ROI

  • 1. Achieve Higher ROI on Your Enterprise Contract Lifecycle Management Solution facebook.com/perficient twitter.com/Perficientlinkedin.com/company/perficient
  • 2. 2 Perficient is a leading information technology consulting firm serving clients throughout North America. We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities. About Perficient
  • 3. 3 • Founded in 1997 • Public, NASDAQ: PRFT • 2013 revenue ~$375 million • Major market locations throughout North America • Atlanta, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New Orleans, New York City, Northern California, Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C. • Global delivery centers in China, Europe and India • >2,100 colleagues • Dedicated solution practices • ~90% repeat business rate • Alliance partnerships with major technology vendors • Multiple vendor/industry technology and growth awards Perficient Profile
  • 4. 4 BUSINESS SOLUTIONS Business Intelligence Business Process Management Customer Experience and CRM Enterprise Performance Management Enterprise Resource Planning Experience Design (XD) Management Consulting TECHNOLOGY SOLUTIONS Business Integration/SOA Cloud Services Commerce Content Management Custom Application Development Education Information Management Mobile Platforms Platform Integration Portal & Social Our Solutions Expertise
  • 5. Introduction 5 Amish Shah Solution Director, Enterprise Contract Lifecycle Management Amish has ten years of experience as an operations and information technology consultant. His primary responsibilities include managing enterprise-level contract management implementations and providing thought leadership around each aspect of the solution development lifecycle.
  • 6. Placeholder Slide for Polling Questions • Polling Questions (Yes/No): 1. For most organizations, a new contract gets created no more than every 6 minutes 2. The cost of implementing contract improvements per contract over 5 years is less than the cost of a brand new iPhone 6
  • 7. Agenda I. Enterprise Contract Lifecycle Management 30 min. (ECLM) and ROI Fundamentals II. Perficient’s ROI Calculator for ECLM 20 min. III. Summary and Next Steps 10 min. 7
  • 8. Objectives  Discuss the business value of contracting efficiencies and maximizing “return on contracts”  Provide a tool, literature, and references for getting started on establishing the business case for ECLM 8
  • 9. Perficient’s ECLM Experience Services  Current State Operations Assessment & “Blueprinting’  ROI Business Case Development and Implementation Planning  Contract Inventorying, and Template Rationalization  Requirements Definition and Software Selection  ECLM Systems Design & Implementation • Project Management • Configuration/Customization • Integration • Data Migration • Testing • Training & Change Management Case Studies & White Papers  Best Practices for Authoring a Contract through an Enterprise Contract Management System When choosing a contract management system, it is important for the company evaluating different solution offerings to consider software that provides flexibility in authoring a contract. This flexibility allows an organization to reduce the time and cost of creating contracts and increase throughput of contracts with external parties.  Enterprise Contract Lifecycle Management for Healthcare Systems Led the client in training all hospitals on how to author contracts through a best-of-breed ECLM solution. Rollout included approximately 300 users and 3000 contracts. 9
  • 10. Our Qualifications Value Proposition  Dedicated practice with more than two dozen practitioners and experience with a vast number of customers and industries.  Understand “nuances” of the IBM Emptoris solution minimizing “surprises” / risks  Relationships with IBM Emptoris senior management, with influence on product roadmap strategy  Library of solution accelerators for planning and implementation (e.g., future state blueprints, requirements, software selection, roadmaps) Select ECLM Clients 10
  • 11. ECLM Maturity Levels 11 • Contracts are created using MS Word and tracked using Excel or in Spreadsheet format. • Contracts are stored in white paper format in filing cabinets. • Contracts are not easily visible and search/sort/retrieval takes a long time • Contracts are created using MS Word and tracked using Excel or in Spreadsheet format. • Contracts are stored in electronic format in a single data repository. • Contracts are visible to a larger group of people and can be searched/sorted/ retrieved • Contracts are created using standard clause templates and contract templates. • Contract Authoring process makes use of approval rules and workflow events • Contracts are stored in electronic format in a single data repository. • Contracts are created using standard clause & contract templates, approval rules, workflow events and triggers etc. • Contracts are stored in electronic format in a single data repository that allows reporting. • KPIs are defined and used in analysis • Contracts are created using standard clause & contract templates, approval rules, workflow events and triggers etc. • Contracts are stored in electronic format in a single data repository that allows searching, sorting, analysis & reporting. • ECLM solution is integrated with the ERP system & other backend systems Level I Level II Level III Level IV Level V Filing Cabinets Data Repository Templates & Workflow Analysis, Monitoring & Reporting Integration & Executive Dashboard RiskMitigation Standardization, Compliance, Efficiency High High Low
  • 12. The ROI of ECLM: Getting Started 12 Medical AffairsEurope SS&P RDQ Corp. Law Europe • CDA • MSA • GPA • SWL • SET • CDA • CSA • MSA • GPA • SWL • CSA • HON • QUA • GPA • IML • CDA • RGA • CTA • CTS • TER • RzEC • DCA • QUA • MTA • GPA • LIC • CDA • QUA • MTA • CSA • AAA • CSA • M&A • CTA • CTS • HOT • MUE • NAS • PRE • CDA • CSA • LOG • CTA? • GOV • MED • COM • CDA • PTU • Consulting Service Agreements • Master Service Agreements • Goods Purchase Agreements • SW License Agreements • Service Agreements • Consulting Service Agreements • Master Service Agreements • Termination of CSA Letter • Data Purchase Agreement • Advertising Agency Agreement • Acknowledgement & Agreement Letter • CDA • RCA • FUA • CSA• CSA • MSA • MLS • SER • SWL • SVC • TEA • PRA • MOA • CDA • SPA • VCA Addition: Stock Administration • SPO • ABA • PRE • STA • CSA (Health Care Pros) • TCL Law Dept. Legal’s Clients Contract Types Enterprise View of Contracting (20K-40K Contracts/Year) Buy-side Procurement of all goods and services (less dev.)
  • 13. ECLM: On the Critical Path for Closed-Loop Business Processing 13 Use segmentation and market intelligence derived from contract data to move from  Spend Analysis to Spend Management  Sales Analysis to Revenue Management
  • 14. Sample ECLM Benefits 14  Cost Reduction – Vendor Compliance/Contract Coverage – T&C Adjustments – Improved Renewal Management – Payment Penalty Reductions – Application Rationalization – Contracting Process Efficiencies  Revenue Enhancement – Increased Renewal Rate – Automatic Rate Increases – Increased Effectiveness (Proactive Negotiations; Analytics)  Risk Mitigation – Deal – Supplier/Customer – Supply/Product/Service – Enterprise/Regulatory Become a value producer and not just a cost reducer through ECLM!
  • 15. Sample ECLM Costs 15  Hardware & Software – Software Licenses • Internally Hosted • Externally Hosted • SAAS – Hardware (App & Web Servers) – Software Maintenance – Ongoing Operations/Support  Implementation – Template Rationalization – Application Installation & Configuration – Application Integration – Data Migration – Testing – Operational Readiness – Program/Project Management
  • 16. Sample ECLM ROI Calculation 16 ECLM ROI = $5-10M over 5 years
  • 17. Client Examples of Tangible Business Value 17 Poor Visibility into Contractual Obligations and Liabilities Resulted in… $10MM of IP royalty payments not collected because contract was not entered into any system – i.e., zero visibility • An internal audit found the contract which was on the desk of an employee who left the organization 6 months prior $20MM of penalties paid due to late payment (6 months) of contractual obligations • 10-20% of company annual profit at risk due to underestimating contractual obligations • A/P understated • Underestimated budgets for future liabilities $4MM overpayment for a service procured without being aware of an existing preferred supplier contract with lower prices
  • 18. Polling Question Answers 18 1. For most organizations, a new contract is created no more than every 7 minutes YES. Most organizations create between 20,000 - 40,000 contracts annually which amounts to a new contract being created every 3 – 6 minutes. 2. The cost of implementing contract improvements per contract over 5 years is less than the cost of a brand new iPhone YES. The cost for implementing and support an ECLM solution over 5 years is roughly $5.6M, divided by 40,000 contracts = $140 per contract (vs. $199 for the new iPhone 5S).
  • 19. Enterprise Contract Management Implementation Customer Profile: Leading provider of information technology solutions Challenges/Situation  Locating executed contracts and determining expiration dates for existing contracts  Lack of a contract request process for over 300 sales individuals to easily enter contract metadata and terms to generate a contract.  Inability to track whether/not bid assurance has properly reviewed contract and if appropriate approvals have been received on SOW before being presented to Customer.  Contract execution (receiving Customer signature and internal counter-signed signatures) taking too long. Delivered Solution  Integration between Onit (contract request system which also holds External Party information) and Emptoris.  Ability to draft, negotiate, review, approve, and execute Statement of Works and Change Orders through Emptoris.  Internal signatory clauses can be inserted into contract (only by individuals with the correct security) in lieu of e-signature functionality. Business Benefits/Results  Better success in end-user compliance with internal policy guidelines  Retirement of SOW Central (legacy SharePoint directory holding contracts)  Reduced drafting, review, approval, and execution time for contracts  Ability to present contract via email directly to external party rather than having to send contract offline (through Outlook)  Template governance in place allowing appropriate individuals from Program Sales and Legal to make legal/business language updates.
  • 21. Where Do ECLM Opportunities Exist? . ECLM Stakeholders ECLM Business Drivers Procurement, Sales & Marketing, IT  VP, Sales  VP, Marketing  Chief Procurement Officer  CIO  Contract Administrators  Enterprise Cost Reduction, Expense Management, Vendor Consolidation Programs  Missed Revenue/Spend Targets and/or Leaving $$ on the Table  Extensive Lead Times for Obtaining Contractual Commitments  Inadequate Infrastructure, Scalability, and Internal Service and Support Legal and Compliance  General Counsel  Assoc GC  Chief Compliance Officer  Cost Reduction of Law Department; Downsizing of Legal staff  Improve Corporate Compliance with Government Regulations  Unfavorable Judgments and Heavy Fines Levied Due to Missing Contracts or Rogue Contracting  Due Diligence due to M&A Activities
  • 22. Perficient’s ECLM Value Proposition  Dedicated ECLM consulting practice – Approx. dozen practitioners – Experience with approx. 20 customers  Solid ECLM implementation experience – Understand “nuances” of best-of-breed ECLM solutions – Minimizes “surprises” and risks for implementation planning  Recognized as “thought leaders” of ECLM – Relationships with ECLM vendors ranging from senior management to line staff – Actively influence product roadmap strategy  Extensive library of solution accelerators for ECLM planning – Future state blueprints, requirements, roadmaps, documentation – Minimizes risk, work effort and duration for planning and implementation
  • 23. Additional ECLM Resources Resources  International Association for Contract & Commercial Management (IACCM)  National Contract Management Association (NCMA)  Analyst Reports (Gartner, Forrester) Links www.iaccm.com www.ncma.com Perficient’s Literature & ROI Tool**  Perficient Literature  ECLM Overview  ECLM Assessment  White Papers  “Best Practices for Authoring a Contract through an Enterprise Contract Management System”  ECLM ROI Calculator ** Denotes thought leadership material that Perficient will provide participants of  Perficient’s Roundtable Discussion for ECLM ROI 
  • 25. Thank You! For more information contact: Amish Shah amish.shah@perficient.com | 847-849-7424 www.facebook.com/perficient www.perficient.com www.twitter.com/perficient