There’s no such thing as an agile contract - Agile Slovenia 2014
Agile Management of Contract Obligations
Transcript of Agile Management of Contract Obligations
© 2020 Determine, a Corcentric company | All rights reserved.
Agile Management of
Contract Obligations
A joint webinar with IACCM
© 2020 Determine, a Corcentric company | All rights reserved.
• The growing impact of automation on
obligation management in raising efficiency and
performance standards.
• Implementing frictionless contract
management to evaluate a party’s compliance
during the lifecycle of the contract to make better
decisions as part of contract renewal, termination
and amendments.
• Addressing developing capabilities within CLM
technology to promote better visibility and
decision making for improving contract obligation
management.
Agile Management of
Contract Obligations
Webinar
© 2020 Determine, a Corcentric company | All rights reserved.4
Sally GuyerGlobal Chief Executive Officer
IACCM
Matt MarkhamVice President of Global Sales Engineering
Determine, a Corcentric Company
Constantine Limberakis Senior Director of Product Marketing
Corcentric | Determine
Speakers
© 2020 Determine, a Corcentric company | All rights reserved.
Sally GuyerGlobal Chief Executive Officer
IACCM
“Contracting is the least reformed business process in any organization”
IACCM Jurisdictional and Corporate Benchmarkof Procurement and Contracting Practices Report, February 2019
© 2020 Determine, a Corcentric company | All rights reserved.
Constantine LimberakisSenior Director of Product Marketing
Corcentric | Determine
© 2020 Determine, a Corcentric company | All rights reserved.
A shared strategic vision and
complementary product offering
Sourcing
Supplier Management
Contract Management
Procurement
Invoicing
Financial & Budget
Management
Analytics
Fleet management
Capital Equipment
Solutions
Warehouse Management
Services
Electronic Payments
Group Purchasing
Organization
...
“This acquisition enables the combined
organization to provide a holistic and
broad set of capabilities encompassing
strategic sourcing and procurement
consulting, a unified cloud platform for
source-to-pay and contract lifecycle
management, and comprehensive
payment and financing solutions to
improve working capital.”
Matt Clark
President and COO, Corcentric
Corcentric is a leading provider of procurement and finance solutions that transform how companies purchase, pay,
and get paid. Corcentric’s procurement, accounts payable, and accounts receivable solutions empower companies to
spend smarter, optimize cash flow, and drive profitability. Since 1996, more than 6,000 customers from the middle
market to the Fortune 1000 have used Corcentric to reduce costs and improve working capital.
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12
Comprehensive Solutions for
Procurement, Finance & Legal
Strategic sourcing
& Procurement Advisory,
Acquired 2018
Leading S2P and CLM
platform,
Acquired 2019
Fleet Procurement &
AP Automation
© 2020 Determine, a Corcentric company | All rights reserved.
One of the market’s richest features set
on our S2P & CLM Cloud Platform
Invoice Managemente-Invoicing
Invoice OCR
Automatic Reconciliation
Internal Re-Invoicing
AP Automation
Supplier ManagementSupplier Registration & Administration
Supplier Information & Certification
Management
Supplier Risk & Performance
Management
Free Supplier Portal
Contract Lifecycle
ManagementContract Repository
Templates & Approval
Authoring & Negotiation
Clause Library & Self-Service
Lifecycle Management
Obligation & Compliance
SourcingRFx Management
e-Auction
Bid Analysis & Awards
Integration with Contract & Procurement
ProcurementPurchase Requisition
Catalog Management
Request for Quote
Purchase Order Automation
Procurement Contract
AnalyticsBuilt-in Dashboards
Report Generator
KPIs & Forecast
Financial ManagementCost Allocation
Budget Management
Compliance
Time Tracking
Receipt & Dispute Management
Asset Management
Inventory Management
Travel & Expenses
© 2020 Determine, a Corcentric company | All rights reserved.
Extending value across business processes
in CLM and Source to Pay
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Suppliers
Analysis
Sourcing
MASTER DATA | WORKFLOW | DASHBOARDS | SECURITY | NOTIFICATIONS & ALERTS | UI / UX DESIGN | INTEGRATION | AUDIT PlatformCore
Contracts
Procure
Pay
Finance
RFP
Pay
SPEND ANALYSIS | SUPPLIER COMPLIANCE | CONTRACT ANALYSIS | PROCUREMENT ANALYSIS | KPIS | FINANCIAL ANALYSIS
trigger
Receipt
RFI
Create
Invite Certify
Optimize Award
On-Board
Approve
Catalog Request Order
Comply Expire
Invoice
Allocate Cost
Certify Survey Off-board
validate
trigger
trigger
Match
Survey
Amend
trigger
triggervalidate
track
trigger
Budget
Project
Asset/
Inventory Asset
track
Inventory
validate
RFQ
validateNDA MSA
Definition of Demand
© 2020 Determine, a Corcentric company | All rights reserved.
Customers
using CLM 15
Clients using Contract Management
Clients come from a range of industries including: financial services, education, media, entertainment, life sciences, hospitality,
healthcare, manufacturing, and technology
© 2020 Determine, a Corcentric company | All rights reserved.
Analyst recognition across the
Source-to-Pay & Contract Management
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Determine, a Corcentric company, ranked as Customer Leader across Procure-to-Pay and Invoice-to-Pay in Q4 2019 Spend Matters SolutionMaps
Determine, a Corcentric company, ranked as a Leader in 2019 Ardent Partner ePayables Technology Advisor research report
Determine, a Corcentric company, achieved outstanding performance scores in Savings, Control and Compliance for 2018 Strategic Sourcing Application Suites by Gartner
Supply and Demand Chain Executive recognize Source One, a Corcentric company, Spend Analysis tool Top 100 list for the past 12 years
Corcentric recognized as a leader by IDC MarketScape: Worldwide SaaS and Cloud-Enabled Accounts Payable Automations 2019
Determine, a Corcentric company, ranked a Customer Leader across Spend Analytics, Sourcing and CLM in Q4 2019 Spend Matters SolutionMaps
Determine, a Corcentric company, named in Forrester’s Now Tech: Spend Analytics Solutions, Q3 2019, consolidated list of leading spend analysis providers
Determine, a Corcentric company, named in Gartner’s Magic Quadrant for Procure-to-Pay Suites 2019 as a Niche Provider, noted for above the average project-related spending P2P capabilities compared to peers.
Strong Performer, The Forrester WaveTM : Source-to-Contract Suites, Q4 2019 states that Determine, a Corcentric company, above average usability and implementation support attracts clients.
© 2020 Determine, a Corcentric company | All rights reserved.
Challenges of
Commercial & Contract Management
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Poor Contract Obligation
Management
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Contract obligations management means ensuring that contracting parties fulfill the
commitments laid out in the contract. To get the full value out of your contracts, it is imperative
to manage these obligations well… why?
Prevention of Revenue Loss - Average company leaks over 9% of its revenues annually due to contract related issues –
IACCM
Improving off-contract spend – Market average 54% of spend is contract compliant; 66% transactions are contract
compliant – Ardent Partners
Tracking of Compliance – Only 29% of organizations regularly collect data on the compliance with standards/scorecards
by other part of the business or trading partners - IACCM
Avoidance of Fraud – 49% of respondents to PwC Global Economic Crime and Fraud Survey said their companies had
been victims of fraud or economic crime, up from 36% in 2016
© 2020 Determine, a Corcentric company | All rights reserved.
Contract management silos
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Business Requirements
Selection Purchase
Transition
Manage Value
Exit / Renew
Commercial Strategy
Market
Sell
Transition
Deliver Obligation
Exit / Transition
Solution Development
Lack of an enterprise
view of contracts
prevents actionable
insights across the
business
- No common repository
- No common templates
- No common workflow
- Lack of meta-data
- No alerting mechanisms
The left does not know
what the right has or
needs
Sales Contract Silo Procurement Contract Silo
Sell-Side
Contracts Buy-Side
Contracts
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Business platforms prevent silos
contract and other business data
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Contact Lifecyle Management
Meta-Data Core Engine & Repository
Master-Data Repository
• Meta-data is shared across the entire platform– Including data review, life-cycle
mngt, ratings, certifications• Master Data is set only once
– No multiple entries, consistency, simple integration
• Business Processes can be defined across the suite– Full compliance can be enforced
and checked with complete visibility
Business Documents
Sell-Side
Contracts Buy-Side
Contracts Contract Repository
Templates & Approval
Authoring & Negotiation
Clause Library & Self-Service
Lifecycle Management
Obligation & Compliance
© 2020 Determine, a Corcentric company | All rights reserved.
Finding contract obligations with AI
AI as one approach• Learnings gained
from contracts
driving the AI
algorithms to parse
contracts into their
building blocks.
• Extracting key
metadata and
clauses,
semantically
mapping them to
contract types,
standard clauses,
and clause
categories for further
analysis.
• Challenge – it
requires a lot of data
for systems to learn
and provide
accurate outcomes
Contracts
pdf, word
Natural Language
Processing
Machine Learning Meta-Data
ProvisionsMeta-Data
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Accept
Ensuring an obligation is met with
workflow
Create Meta-Variables
(e.g., Questions)
Create Questionnaire utilizing Meta-
Variables
Accepts/rejects Questionnaire
Create Certification Rule
to Assign Questionnaire
Obligation gets attached based
on rules
Party completes questionnaire
and assigned to a reviewer
Must Add Certification
Criteria, even if it is “All”
Marked as obligationaccepted
Reject
Create New Contract Record
Contract reaches active state
e.g., effective date
Email is sent to internal or
external party
Email is sent backfor Approval
© 2020 Determine, a Corcentric company | All rights reserved.
Contract Lifecycle Management
Making contracts automated, paperless and seamless across your organization.
Contract Repository
Full-Life Cycle Management ■ Configure your environment using rule sets designed to set default lifecycle
behavior for document coordination, collaboration, editing permissions etc.
■ Leverage contract request and approval workflow features expand the use
electronic contracts and documents.
■ Get everyone on the same page with collaborative authoring for internal and
external counterparties
■ Accelerate workflow with advanced contract redlining for managing new and
renegotiated contracts.
Obligation & Compliance Management
■ Manage obligations by leveraging internal and external questionnaires, workflow and certification rules
■ Certification rules are added to the contract
■ Questionnaires are answered and can be evaluated (by
defined reviewers)
Task Management
■ Manage obligations by leveraging internal and external questionnaires, workflow and certification rules
Alert Setup ■ Create questionnaires and certification rules
■ Centralize your contract into one
single repository for easy access in
discovering contracts, importing them
and managing expiry and renewals
■ Create multiple contract types based
on out of the box contract families and
extensions that are not just used for
procurement
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Matt MarkhamVice President of Global Sales Engineering
Determine, a Corcentric Company
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© 2020 Determine, a Corcentric company | All rights reserved.
Obligations- Business Benefits
● Definitions:
○ A contract is a set of obligations assigned to both sides. It can be a payment task, an
evaluation etc. They need to be completed before a contract expires.
○ These obligations need to be tracked so that we make sure both sides respect the agreement
signed.
● Goals
○ Ensure compliance with regulations with automated workflow
○ Evaluate a party’s compliance during the active lifecycle of the contract (influence on contract renewal)
○ Ensure that risks related to the non accomplishment of a task are measured
○ Assess and report on the compliance of a contract
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© 2020 Determine, a Corcentric company | All rights reserved.
Contract Management: Obligations
To track contract compliance, we have added the certification rules on contracts
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● Create questionnaires and
certification rules
● Certification rules are
added to the contract
● Questionnaires are
answered and can be
evaluated (by defined
reviewers)
● Can do this with internal
and external parties
© 2020 Determine, a Corcentric company | All rights reserved.
Task Management for contract
obligations
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■ Tasks can collect
information based
on type of task
■ Tasks can be
recurring
throughout the
duration of the
contract
© 2020 Determine, a Corcentric company | All rights reserved.
Setting up Alerts for managing
contract obligations
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■ Alerts are often based on a date in
the contract
■ Alerts can require acknowledgement
by a specific user
■ Alerts can have defined escalations
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Thank you for
joining us today
Web: determine.com
Call: US: 1.877.806.1932
Call: Europe: +44 20 3868 0216
© 2020 Determine, a Corcentric company | All rights reserved.
Obligations Management
Requestor
Request flow
Expert Mode
Start here
Contract
Authoring
Legal Review(skippable)
(optional)
Contract
manager
Doc Generation
Authors: read-write
Others: read-only
Rework
Collaboration
Meet Self-
Service
Criteria?
Requestor
Request flow
Rules
Legal Edits(owner role
changed to legal)Assigned
Legal Council
Approval
needed?Signature
Rules
Counterparty (checked out to
external)
Not Self-Service
Check outCheck in
Signature Rejected or Send Back
Final Approval (rule based)
Rejected
Approved
Managed
Contract
Contract
managers
Self-Service
All docs collaborative,
Access varies by doc type
Check-in/out and locking
rules apply
Docs locked during e-
signature phase
Can upload final doc for
manual signature
Create map of contract
obligations process based
on certifications??