Learn how companies across industry verticals are leveraging ECLM to improve the creation, administration and assessment of contracts.
Our industry and ECLM solution experts cover the keys to addressing critical contracting issues such as:
Minimizing potential legal/resource bottlenecks
Increasing contract visibility of upcoming payment milestones for finance
Minimizing change controls and amendments by incorporating typical scope revisions into standard templates
We look at real customer implementation stories and hold an interactive Q&A to show how your organization can achieve a considerable ROI on an ECLM solution.
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
IBM Enterprise Contract Management ROI
1. Achieve Higher ROI on Your Enterprise Contract
Lifecycle Management Solution
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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!
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
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www.perficient.com
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