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1© Copyright 2009 EMC Corporation. All rights reserved.
Reduce Risk and Deliver Increased Efficiency for Managing Contracts
2© Copyright 2009 EMC Corporation. All rights reserved.
We Live in Challenging Times…
3© Copyright 2009 EMC Corporation. All rights reserved.
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%
4© Copyright 2009 EMC Corporation. All rights reserved.
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
5© Copyright 2009 EMC Corporation. All rights reserved.
Contract Lifecycle Management
6© Copyright 2009 EMC Corporation. All rights reserved.
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.
7© Copyright 2009 EMC Corporation. All rights reserved.
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
8© Copyright 2009 EMC Corporation. All rights reserved.
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
9© Copyright 2009 EMC Corporation. All rights reserved.
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
10© Copyright 2009 EMC Corporation. All rights reserved.
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
11© Copyright 2009 EMC Corporation. All rights reserved.
Legal reviews and approves the final contract
Create initial contract
Paperless Review and Approval
Package
ChangesFinal
Archive
Batch Print
Negotiating party reviews and modifies contract with Word
12© Copyright 2009 EMC Corporation. All rights reserved.
Customer Communications Management
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
13© Copyright 2009 EMC Corporation. All rights reserved.
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
14© Copyright 2009 EMC Corporation. All rights reserved.
Generation
Declarations,Endorsements
Agreements
Contracts
Policies
Channels
Batch Print
Archive
Web
Mobile
High-volume Batch
Workflow
Interactive
Initiated
xPression for Contracts
Design
Data
ECM Documentum
Design Tools
XML
15© Copyright 2009 EMC Corporation. All rights reserved.
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
16© Copyright 2009 EMC Corporation. All rights reserved.
Business Process Management
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
17© Copyright 2009 EMC Corporation. All rights reserved.
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
18© Copyright 2009 EMC Corporation. All rights reserved.
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.
19© Copyright 2009 EMC Corporation. All rights reserved.
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
20© Copyright 2009 EMC Corporation. All rights reserved.
Content Management and Centralized Repository with Compliance
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
21© Copyright 2009 EMC Corporation. All rights reserved.
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
22© Copyright 2009 EMC Corporation. All rights reserved.
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
23© Copyright 2009 EMC Corporation. All rights reserved.
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
24© Copyright 2009 EMC Corporation. All rights reserved.
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
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