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 SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting

TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social

Our Solutions Expertise

Introduction

5

Amish ShahSolution 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 SystemWhen 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 SystemsLed 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 Emptorissolution 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& ExecutiveDashboard

Ris

k M

itiga

tion

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

LawDept.

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 enteredinto 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 underestimatingcontractual 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/perficientwww.perficient.com

www.twitter.com/perficient