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The New Standard in Enterprise Content Management

Best Practices in Contract Management

Tim Cummins, President/CEO of IACCM

Chris Ryan, VP Marketing at SpringCM

IACCM Webinar March 25th at 12pm central time

(10am PT, 1pm ET)

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Speakers

Tim Cummins

In his role as President/CEO of IACCM, Tim works with leading corporations, public and

academic bodies, supporting executive awareness and understanding of the role that

Commitment Management increasingly play in 21st century business performance and public

policy. Prior to IACCM, Tim's business career included executive roles at IBM and a period on

the Chairman's staff, leading studies on the impacts of globalization and the reengineering of

IBM's global contracting processes. His earlier career involved the banking, automotive and

aerospace industries, initially in Corporate Finance and later in commercial and business

development. He led negotiations up to $1.5bn in value and his work has taken him to over 40

countries. Tim’s work has been extensively published and he has acted in an advisory

capacity to government bodies in countries that include the US, UK, Australia, Canada and

Japan.

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Speakers

Chris Ryan

Chris Ryan is a certified Business Process Management and Records Management expert. For the past three years, Chris has served on the board of directors for AIIM, an ECM association, and is a frequent speaker at technology and content management conferences. He is the author of three leading books on marketing and information technology. Chris Ryan joined SpringCM after serving as chief marketing officer at Inmon Data Systems (IDS), where he was responsible for all aspects of branding, alliances, product marketing and sales development. Prior to IDS, Chris was vice president of marketing for Stellent, Inc. (acquired by Oracle), one of the world's leading suppliers of ECM software and services, and Optika, an ECM company specializing in document management, imaging and workflow. Chris previously held senior marketing positions at PeopleSoft, Sybase and Group 1 Software.

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Agenda

1. Why it is critical to manage contracts effectively

2. Common challenges in managing contracts

3. Best practices in contract management

4. Selecting the appropriate technology

5. Q&A

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Managing contracts is a critical competency

Executive strategies are increasing the need for greater efficiency and greater effectiveness

Complexity is increasing and must be handled through change

Compliance issues and scope continue to grow – regulation, reputation, business integrity, records retention

Market volatility demands flexibility – new markets, new relationships, acquisitions, rapid economic changes that impact credit risks

Workload is increasing (up 14% in last 3 years) yet resources remain constrained

Impact of not managing contracts effectively Declining efficiency: Review and approval times increasingContracted outcomes not achieved in >40% of contracts

Increasing frequency of disputes, terminations – estimated increase 22% in 2007

Absence of contract management competency & control = Poor risk management and low added value

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The Anticipated challenges with CM Adoption

IACCM Member Survey July 2007

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Actual Issues With CM AdoptionIACCM Member Survey July 2007

“Other functions support” is anticipated lower, but turns out to be in the Top 2 factors.

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Contract Management Automation: The State Of The Market2007 / 2008 is seeing buoyant growth in sales as top corporations recognize the strategic importance of contracting

While procurement-driven adoption continues to outpace sales contracting (approx. 3:1 worldwide and 4:1 in US), the strongest trend is towards an enterprise solution (53% worldwide, 48% US)

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Focus on process, desired outcomes and collaboration

Find a contract process coordinator

Measure improvements in key metrics and benchmark against “best-in-class” companies

Communicate improvements regularly

At this stage, process is much more important than technology

If you don’t lead the change, someone else will!

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Motivation for Those Planning Acquisition This YearTop priority : Standardizing process: this aligns with strategic goals of cost

control, efficiency and service quality

Source: IACCM Market Sizing Study for CM Software

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FunctionalityHousekeeping and basic control are key goals and come before strategic efforts such as performance measurement or continuous improvement.

Source: IACCM Market Sizing Study for CM Software

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Best Practice: Collaborate with other functions to build a case

SalesSell them on the value of quicker turnaround to close business faster18% of Sales cycle is being spent in contract management and reducing it will increase sales, and improve customer and employee satisfaction

FinanceImprove cash-flow. Best in class companies achieved 21% improvement in DSOImprove efficiency and avoid penalties by closing more deals as per standard termsReduce audit cost

ProcurementCapitalize on opportunities to renegotiate or cancelTrack % of contract and off-contract expenditures to convert off-contract spend into contracted spend and improve margins

LegalReduce company’s exposure to risk by standardizing languageReduce risk of penalties

IACCM has many resources to help persuade department heads to champion systematic contract management

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Electronic Contracting & Process Phase I - III

CONTROL EFFICIENCY EFFECTIVENESS

Performance & Compliance Monitoring

Metrics & Reporting

Electronic Signature

Repository

Templates

Version Control

Contract Creation

Review / Approval Workflow

Bid / Proposal

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Who is SpringCM

The acknowledged leader in delivering Enterprise Content Management as an on-demand service

Only company in the space with:– Proven experienced management– Enterprise-class product– Leadership positioning / partners

Early market leader – over 170 customers

Key strategic partners

“Is SpringCM the Salesforce.com of ECM? It's hard not to take a positive view of SpringCM, given the enterprise content management (ECM) experience of its executive team and the relative dearth of true SaaS offerings addressing core document management processes, including capture and BPM.”

Kathleen Reidy, 451 Group

“Is SpringCM the Salesforce.com of ECM? It's hard not to take a positive view of SpringCM, given the enterprise content management (ECM) experience of its executive team and the relative dearth of true SaaS offerings addressing core document management processes, including capture and BPM.”

Kathleen Reidy, 451 Group

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Enterprise-Class Platform for CM

*

Configuration/BPM Design Adm

inistration Services

Web S

ervices

FTP/SFTPFTP/SFTP

MS OfficeMS Office

Email/FaxEmail/Fax

Installed SWInstalled SW

Scan/eFaxScan/eFax

WebExWebEx

Web ClientWeb Client

SalesforceSalesforce

Partner Apps

Partner Apps

Database Search Documents Backup

Core Services

Routing Approval

Records management*SearchDocument

security

User contactsFax/print/mailCapture scan/faxView/mark-up

Electronic SignatureOCR/Zone OCRAuditingDocument

conversion

E-mail managementBPM/eForms*Document

classificationDocument versioning

SpringCM Core

Product

Contract Management Solution

Solutions customizationSolutions

*Available in 2008

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Choosing the Right Solution: Focus on Simplicity and Adoption

A SaaS solution helps you focus on contract management and not on technology

Easy to ConsiderReduces risk of deployment failure by allowing you to try within daysHelps you focus energies on process and improvements

Easy to BuyCosts significantly less than on-premise solutionsAllows you to pay as you use

Easy to UseEasily integrated with CRM and ERPUser interface is designed for business users

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Key Benefits of a SaaS solutionHighly Secure

SpringCM’s SaaS solution is housed in a SAS-70, Type II certified data center that is compliant to stringent security standards. National Institute of Standards and Technology (NIST) 800-53 controlsAudit trails throughout the application and infrastructureQuarterly and annual audits, yearly 3rd party application security assessmentsIn most cases our security is equal or better than what your IT can afford

High Availability24/7/365 online data center redundancyDisaster recovery capabilitiesInfrastructure redundancy at all levels of the architecture

High Quality and rapid innovationNew capabilities released every 12 weeks via transparent and free upgrades. You are always on the latest versionImportant defects are judged by their severity and not by how big or small the customer is

No CAPEX, No Infrastructure, No lock-inIf your business needs change and there is a better solution out there in future you will not have a huge investment to write-off

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Revisiting the Issues With CM AdoptionIACCM Member Survey July 2007

“Other functions support” is anticipated lower, but turns out to be in the Top 2 factors.

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How to Choose the Right Technology Solution – Five Things to

Focus On1. Creating and publishing standard language

2. Tracking % of contracts created from standard language

3. CRM and ERP integration to improve adoption

4. Single repository to find contracts based on how departments think of them – e.g. finance may search for contracts with Net 60 or longer payment terms

5. Focus on collaboration via automatic routing and approval and tracking how long contracts take in each step and department

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Solution

Case Study – Contract ManagementProvider of high availability computers

Contracts automatically selected from library based on SF.com opportunity data; e-mailed to contactContract folder created automatically with sent contractContract returned by e mail and uploaded by administratorRouting for approval establishedAttorneys access directly from MS WordContract workflow and status visible to all Sales through SF.comIntegrated reporting shows value of outstanding contracts and next steps to improve end of quarter close

Business challenges:Coordinating contract edits between Sales, Finance and LegalGreater visibility to contract status and steps to finalize

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Solution

Case Study – Contract ApprovalLeading Cable and Communications Company

Signed contracts are faxed directly into Spring CM folderGroup of 3 administrators is notified of contract receiptAdmin pulls contract, classifies with metadata; moves to dept. folderDepartment is notified of new contract automatically of new contractDepartment checks out document; performs its tasksCheck in and move to completed folderContract is available for searchNo downloads and no deletes permitted

Business challenge: Reducing paper / manual faxes; automate approval process and search of signed contracts; security

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Customer Testimonials

“"Before we implemented SpringCM, some contracts were slipping through the

cracks — sometimes almost getting lost. Now, we receive

alerts as needed and the process status is easy to

track."

“Closing contracts efficiently and on time is a major concern for

us. . . SpringCM [is] important for

improving our contract management

process.”

Joe Graves, CIO: Jonathan Charles, Sales:

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Source: IACCM Benchmarking Studies – Contract Management Organization and Process – 2001 - 2007

Benefits Without CM With CM

Workload 100% 84%

Innovation 37% 57%

Risk Management 48% 63%

Benefits seen with Contract Management

Key Performance Indicator Best in Class Others

% Contracts stored in a repository 82% 33%

% Contracts with non-standard language 17% 35%

% Reduction in Days Sales Outstanding 21% 13%

Compliance to service agreements 73% 58%

Source: Aberdeen Group: Sell-Side Contract Management December 2007

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Summary

Contracts must be managed systematically – to improve sales productivity, compliance and cash flow

Contract Management challenges are process-centric. You need a solution that will help you focus on the process and improvements

The best way to implement a Contract Management solution is to use a SaaS solution that has comprehensive Contract Management capabilities – from contract creation to signing and reporting

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Q&AThank you for attending SpringCM and IACCM’s ‘Best Practices in Contract

Management’ Webinar

Booth # 19, IACCM AmericaVenue: Scottsdale ArizonaDates: April 7-9thBooth Contact: Ajay Dawar (adawar@springcm.com)

Ph: 877.362.7273

E-mail: sales@springcm.com