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Transcript of September 2–3, 2004 Royal Sonesta Hotel New Orleans New Orleans, LA NCMA 4th Annual Commercial...
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 2
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Moderator:
Lenn Vincent, Vice President, CACI, International
Panelists:
Dennie Norman, Principal Strategist, SAS Supply Chain Intelligence
Nick Bomba, Contract Management Director, Lucent Technologies
Peter Murley, Senior Manager, Global Contract Management, Avaya
Contract Management Tools:Transformation in Action
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 3
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
CACI International Inc
A $1.5 billion international information technology solutions company
Experienced management team
A legacy of stability, earnings growth, and strong cash flow
Leading provider of IT services, communications and solutions, primarily to U.S. Government
Approximately 9,400 highly skilled employees; over 65% with security clearances
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 4
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
• World-Wide provider of professional services from concept definition through life cycle support including:– Designing, developing and integrating systems – Performance testing of systems – Workflow analysis and business process modeling &
simulation– Program management support – Integrated financial systems execution– Integrated logistics support– Interoperability analyses and interface design
• Acquisition/contracting support / e-procurement system design, development and consulting
Corporate Capabilities
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 5
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Technology Foundations
Transforming the Way We Create & Manage Contracts
• Computers: Paperless Contracting• Ubiquitous Networks: The World Wide Web• Common Meaning: Information Standards• Useful Meaning: the Semantic Web• Wireless: Freedom• Frictionless Information Exchange • Security: Safety in an Online World• Collaboration: the Collapse of Space and Time
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 6
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
But You Have to be Watchful of Technology
•Application costs• Licensing & maintenance fees
•Other Costs• Program & project management• Requirements scoping• Implementation• Digitization• Systems Integration• Change management• Contract rationalization• Process re-engineering• End-user training• Associated licensing
(e.g., document management tools)
* From Contract Life Cycle Management in the Real-Time Enterprise, Gartner Symposium ITXPO 2002; © 2002 GartnerG2
Gartner on the Hidden Costs*
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 7
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
General Session
Dennie Norman, WW Director
Supply Chain Intelligence
SAS Institute
Date September 2, 2004
Time 9 AM
Demand Driven Sourcing -
Manage Uncertainty
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 8
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Global Reach & Local PresenceConnecting with Customers
• 238 offices in 53 countries• 9,100 employees• 3.5 million users worldwide
– 40,200 sites – 113 countries– 90% of Fortune 500 – 97 of Forbes Super 100
• Hundreds of local user groups globally• Largest privately held software company
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 9
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
The Mandate …
...reach 5-10% cost savings and still satisfy our customers.
See our supplier base profile. What do we buy, from whom, how much?
Enhance our negotiating position. Financial, technical and performance information.
Reduce time to look for info. Standardized reports on the fly.
Leverage our buying power. Pool volumes and move to key suppliers.
Reduce inventory costs Optimize inventory levels and on time delivery
Target only the best suppliers. Profiles of successful/unsuccessful suppliers.
Reduce lead time for contracts. Access/reuse already legally approved contracts.
Better control our risks. Assessment reports and performance.
Reduce the number of suppliers. Availability of primary and secondary sources.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 10
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
The Strategy! (Enabled by an Analytical SRM Solution)
•Leverage total buying power– Commodity Segmentation– Pool and move volumes to fewer suppliers
•Partnership contracts, for critical commodities – Premium Partners, to receive 80% of total volume– Prices based on 2-year forecasted volume, no guarantees
•Management– Change program– Commodity teams– Cost savings metrics
•Goals for cost savings – 15% >10% >5%
Drive your future!
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 11
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Leverage demand to reduce price
Volume
Price/ Unit
$100/unit
$90/unit
$80/unit
1000 2000 3000
Contract Total Volume
Price/ unit ($)
Total Spend
Year 1 1000 $100 $100k
Year 2 2000 $90 $180k
Year 1 + 2 3000 $80 $240k
Leverage spend saves $40,000 (14%)
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 12
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
eSMART (ABB SRM) Functionalities
From whom ?From whom ?
What is purchased ?What is purchased ?
Who purchases (BAU) ?Who purchases (BAU) ?
How much ?How much ?
Volume ?Volume ?
Business Intelligence
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 13
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Future with eSMART
• Data is available on mouse click
• Data is combined for all locations of a supplier
• Data is supplied by all ABB locations on eSMART
• Profiles can be supplied by Division, by BA, by BAU, or by region
• By click you get a bar chart profile
Supplier Base Profile Today without eSMART
• Must send out surveys to otherBAUs to obtain information
• Must follow up with eMails andtelephone calls to obtain data
• Must manually assemble into spreadsheet for analysis
Issues
• Time & resource consuming
• Data incomplete
• No common supplier number
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 14
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Click the “Reach-through” button
in the Viewer. A new window will be opened.
Reuse of Contracts
Future with eSMART
Reach through functionality from eSMART to CAFÉ SCM where contracts are stored
Today without eSMART
• Must request information from other ABB locations using e-mails & telephone calls
• Time & resource consuming
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 15
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Contract
A
C
B
TodayTime (yr)
$/Volume
Demand driven strategic sourcing
Increase negotiated volume Long term contracts Form strategic partnerships Maximize volume for fixed price
Understand demand drivers Leverage market demand Increase forecast accuracy Become a predictable customer
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
You need to see what is behind you, but…
Current forecasting situation…
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
This is what “true” analytics can do for your forecasting process – see it all!
Challenges Are Ahead…
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 18
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Analytics Drive the Power of Information
RO
I
Raw data
Data Cleansing & Classification
Reports & OLAP
Descriptive modeling
Predictive modeling
Data Information Knowledge Intelligence
Optimization
Insight Vs. Hindsight
What will happen ? What will happen ?
What is the best What is the best that could happen ?that could happen ?
En
terp
rise
Per
form
ance
Why did it happen ?Why did it happen ?
Scenario modeling & root cause analysis
What happened (hindsight)?What happened (hindsight)?
How can I act on How can I act on this insight?this insight?
RROI
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 19
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
An SRM system will make you the most informed person at the negotiating table able to deliver sustainable growth under control
Supply Manager Benefits• Ad-hoc reporting that answers the five basic questions:
– What? How Much? From Whom? By Whom? From Where? • Provides intelligence, “one version of the truth”, for decision-making
– Links to Contracts– Dependency Ratios– Supplier Performance Monitoring– Risk exposure
• Ensure corporate governance for contracts, compliance and spend• Improve quality and quantity of information • Move from awareness to knowledge in a repeatable process• More accurately forecast actual demand
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 20
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Contract
A
C
B
Today
Time (yr)
$/Volume
Why demand driven strategic sourcing
Consider the impact of the following on your organization? 10% better forecasting accuracy Advance knowledge of peaks & valleys Accurate long term cash flow predictions True insight to demand drivers Supplier partnerships directly supporting your business goals
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 21
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
ForecastingProblems
SimplisticErroneousMissing
The impact of poor forecasting…
Profit Margin erosion
Bad Inventory Policy
OverstocksOut-of-StocksObsolescence
Distributor
Leads to…
Purchasing
Poor Sourcing
Higher pricesHigher riskUnreliable
Poor Planning
Dissatisfied Cust.Unsynch. Capac.Low OTD
Management
Leads to…
Forecaster
Leads to
Forecaster
Leads to…
Missed expectations > Contract disputes
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 22
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Who said risk is good - Where is Lady Luck when I need her?
Make uncertainty your friend
“Gambling is the fastest growing industry in the world”New York Times – September 25, 1995
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 23
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Nick Bomba
Contract Management Director
SBC Customer Team
Lucent Technologies Inc.
September 2, 2004
System Tools & Processes Facilitating Contract Management
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 24
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Lucent Quote To Cash (QTC) Initiative
• What is Quote to Cash?
- Quote to Cash (QTC) is a globally deployed end-to-end process & associated tool sets by which Lucent receives a customer's request for a quote or proposal for a solution and ends with the cash payments for delivery of that solution.
• Benefits
- Reduces operating costs through streamlined business processes & tool sets.
Replaced local financial platforms for one global financial platform, resulting in faster reporting, increased reliability of information and smaller and flexible organization.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 25
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
System Tools
1. B&P/Contracts Tool
2. Pricing Database
3. Pricing Engine
4. Enterprise Resource Planning (ERP) Platform
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 26
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
System Interaction
PricingEngine
PricingEngine
ERPPlatformERP
Platform
When a quote is priced and committed in Surround:Records Total Dollar amount of quote, Date quote was priced in Pricing Engine, Expiration date of quote.
Whe
n pr
iced
and
com
mitt
ed in
Pric
ing
Engin
e:•Q
uote
Hea
der i
nfo
•Pric
ing
(Ord
erab
le It
ems,
Com
code
s, e
tc.)
When a Quote is entered in B&P/Contracts TOOL Quotes:Quote Number, Quote Created Date, Customer Request Number, Quote Due Date, Customer Name, ERP sold to Number, Type of Service (engineering, installation, etc)
B&P/CONTRACTS
TOOL
B&P/CONTRACTS
TOOL
Quotes
When a Purchase Order is entered into SAP:
•Lucent Order Number
•Customer PO Number
•PO Received Date
•PO Amount•Project Number
PricingDB
PricingDB
For Hybrid Quotes (uncontracted items are present),
nothing automatically transferred. Enter Quote #, etc.
directly in Price Database
•Agreement N
ame &
Description, Effective &
Expiration Date, Item
Codes
and Price.
•Can add to existing
Agreement or create new
.
•Pricing Pools Need to be
UPD
ATED in Pricing Engine.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 27
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&P/Contracts Tools Summary
13© Lucent Technologies Proprietary 2004 -All Rights Reserved
Global SalesGlobal Sales
End-to-End Quote, Proposal, Contract Management
The globally supported B&P tool for Lucent
Manages the end-to-end quote and proposal request management process
A central repository and archive for all Quotes, Proposals
Automates workflow and routing of information (between AE, TC, SE, proposal team and other key stakeholders)
Provides Electronic Document Management (incl. Search capabilities) for all bid and quote opportunity-related information
On-line reporting and analysis of bid and quote opportunity information, including bid and quoted opportunity status and process metrics
Provided through a user’s web-browser and e-mail systems utilizing a relational database
Lucent’s has a single globally supported B&P/Contracts tool Lucent’s has a single globally supported B&P/Contracts tool
Charter:One Global system for B&P and quoting activity that supports the users by being flexible, efficient, easy to use and available as part of the approved Lucent-CIO architecture..
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 28
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&P/Contracts Tool Functions
14© Lucent Technologies Proprietary 2004 - All Rights Reserved
Global SalesGlobal Sales
Contracts and eApprovals
Contracts
Repository of customer contract and agreement information
Contract manager inputs summary information
Visibility for others who require access
Ability to attach contract-related documents
Query capability on summary information and/or full-text of attachments
Excel export capability
e-Approvals
Electronic approvals of business cases, Advance Authorizations, Telephone Equipment Orders (TEOs) and ARMS Reservation Request Forms (ARRFs).
Reduces delays in circulating hard copies and eliminates the expense of sending documents via overnight carriers.
Provides multiple levels of approvers and automatic email notification through MS Exchange.
Excel export capability
Contract Repository and Electronic Authorizations Contract Repository and Electronic Authorizations
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 29
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&P/Contracts Tool (Features)
Lucent’s global B&P Tool for entering, tracking, archiving quotes. End-to-end quote and proposal management.
Used by sales force, project mgrs, contract managers for:• Quote generation• Electronic document storing & management• Win/Loss Statistics• Track B&P expenses to opportunity level
The Contracts module of B&P/Contracts Tool is used primarily by Contract Managers as Lucent’s central repository for customer contract and agreement information. Information is captured in summary form, as well as, attachments of actual contracts.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 30
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&P/Contracts ToolContract Manager Responsibilities
For each new contract the CM populates the module by answering 30 questions:
Fields: Contract No., Eff. Date, term, payment terms, title/ROLSpecial Provisions:
-Most Preferred Customer (MPC)-Liquidated Damages-Non-standard acceptance terms
• Separate questionnaire for MPC.- Frequency of reporting- Prospective or retroactive remedy
Upon completion of questionaire(s) attach contract files and related attachments.
• Each CM can access a list of their contracts or search for any archived contract.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 31
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
29Proposal Number: Enter the proposal number associated with the contract.30 Comments: Additional Comments / Notes
Contract Manager:NBOMBA (N. J. (Nick) J. Bomba) POST Entry
Additional Team Members:
Check
Attachments
Contract Documents: Related Documents:
Attach File Delete Attachment
Attach File Delete Attachment
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 32
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&P/Contracts Tool (In Search Of)
• Search CapabilitiesPerform either a Field or Full Text Search Fields: - Customer name- Contract Mgr.- Contract No.- Product Unit- Region
Editing capabilities Isolate the desired contract to make desired changes (e.g. correct entry previous entry errors; add/delete attachments)
Exporting Data• Under can Export this information to their PC.• Report Generation
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 33
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Pricing Database Tool
Business Functionality
• Used by Sales Personnel for the following:
Access Repository of Global List Prices Determine Market based pricing Perform “What If” Pricing Scenarios Create Volume Discount Schedules for Bid Opportunity
- Bundled Discounts - Multi-Tiered Pricing
- Configuration Level Pricing- Below Floor Pricing Flag
Ad-hoc Reporting (user defined criteria) & Analysis
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 34
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Pricing Engine
• Contains:
- Algorithms
- Pricing Pools
- Pricing logic and rules
• Interfaces with customer ordering systems
- Facilitates EDI
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 35
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Sarbanes-Oxley Compliance
• In order to comply with Sarbanes-Oxley, Lucent Contract Management is a designated control point for Contract Loading into Pricing Engine. This control is required in all contracts, amendments, Special offers, etc.
• CM provides notification and confirmation to the Contract Loading Teams (CLT) that:- Business case done & approved by Finance org.- Contract signed or offer accepted in writing- No “side-deals” are sanctioned
CM verifies appropriate pricing and terms and approves loading of contract/pricing into Pricing Engine
• After loading, Pricing Engine verifies that prices in customer PO match actual prices in the contract- This maintains business case integrity- Contract compliance; deters gaming
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 36
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
B&PProcess
ContractNegotiation
Contract HandoffDocument preparedand e-mailed to mtginvitees (includingContract Loading
Team)
Contract Handoffmeeting held with
stakeholders(including
Contract LoadingTeam)
Customer andLU signcontract
B&P/ContractsTool
PricingEngine
Contract isentered into
B&P/Contracts
Tool
Contract Loading Teamcollaborates with Contract
Mgmt and/or Sales todetermine how Pricingshould be presented in
Pricing Engine
ContractLoading Teampulls contract
from B&P/Contracts Tool
A
A
Completed Pricingtemplate loaded to
B&P/Contracts Tool forreference and retention
Contract LoadingTeam performstests to ensurepricing actions,rules, and pools
work as expected
Notify CM, CAM,AE, Order Mgmtand others with aneed to know thatpricing is loaded
A = Notification from Contract Mgmt of the signed contract is thetrigger to load and activate contract pricing. Contracts beingnegotiated with extensive or complex pricing terms may be loadedprior to signing but should not be activated.
ContractLoadingTeam
completesthe loading
Two Stage Selling - Contract Notification andPrice Loading Process
A
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 37
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Lucent.com (Made to Order)
• www.lucent.com portal • 7X24 access for Online ordering• Order status capabilities• Ability to track all orders (paper, fax, email, web)
- Completion dates- Drill down to view component level detail- Check shipping data
• Invoices link - Quantities ordered & shipped- Itemization (material, installation, engr., transportation charges)- Payment terms; due date; amounts due- Tax info.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 38
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Lucent.com (Support)
• Array of Customer Support Available
-Searchable knowledge database of products
-Comprehensive product index
Product Descriptions
Feature Sets
- Product Training
- Buying instructions
-Repair & Exchange Services
- Technical Support via email
- Helpdesk link
- Online trouble reporting, tracking, status
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 39
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
EDI
• Value Added Network (VANs) Utilized• Transaction Sets
-Purchase Orders-Functional Acknowledgment (Handshake)-Change Orders-Mechanized Order Acknowledgement (MOA)-Invoices-Advanced Ship Notices
• Lucent moved EDI functionality from legacy systems to an ERP platform- Enabled a consistent, standard format for all invoices.- Thousands of invoices are generated each month- 16% of orders placed using EDI - 1% of orders via lucent.com portal
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 40
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Peter Murley, Senior Manager
Strategic Accounts and Public Sector
Global Contract Management Organization
Internet Protocol (IP) Telephony
Linking a Global Contract Management
Organization
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 41
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
• Bullet point 1– Bullet point 2
• Bullet point 3
Who Is
A leading global provider of communications systems, applications and services – helping enterprises large tosmall to communicateand deliver superior business results
Enabling customers to efficiently, seamlessly and securely drive their business from where it is today to where it needs it to be.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 42
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Fast Facts• 15,000+ people worldwide with offices in 50 countries
• 75 Contract Professionals in 16 Countries
• Best-performing tech stock in the S&P 500 in 2003
• Market Leadership:No. 1 worldwide in IP TelephonyNo. 1 worldwide in Voice Messaging(Every day, people use 100 million of our mailboxes)No. 1 in Call Centers (The Americas, APAC and Western Europe)
• One of the most widely held stocks in Americawith more than 2 million shareholders
• More than 1 million customers, including 90% of the FORTUNE 500®
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 43
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
• Former Contracting Picture
• Current Organizational Structure
• How Did We Move From Old to New
• Tools We Employ
• Jewels We Enjoy
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 44
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Contract Management circa 2001
• CM’s Reported to Sales Organization With Regional Focus
• No Processes to Govern Negotiations• Lack of Organizational Identity• Unclear Risk Profile• No Central Document Generation or
Retrieval• Reinvent Every Deal
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 45
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Global Contract Management Organization Today
• Organization Reports Into Law Division
• Processes Developed and Documented
• Centralized Storage and Retrieval of Documents
• Standard Contract Templates
= Strong Global Organizational Focus
= Clear Risk Profile and Flexibility Defined
= Efficient Knowledge Transfer to the Business
= Transactional Efficiency
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 46
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Communications-Driven Results
Avaya Global Contract Management Organization achieves superior results: Reduce Costs, Lower Risk and Grow Revenue
Reduce Costs
Do more with less budget and fewer associates
Lower RiskLower Risk and Increase Control Through Early Involvement in Negotiations
Grow Revenue EVERYTHING We Do Aims to Drive Revenue to Closure and Serve Customers Better
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 47
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Benefits From Using its Own Technology and Services.
Global Contract Management Organization uses Avaya IP and Multimedia Messaging technology to reduce costs while supporting our ubiquitous community of contract managers deployed in virtual offices around the globe.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 48
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Tool Belt
Multimedia Messaging
Single Number Access
Virtual Office
Avaya VPN Gateway e-Enabled Applications
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 49
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Tools and Jewels
Virtual Office/Remote Worker
Single Number Access
= Deploy closer to our business clients.
= Increased accessibility through “frictionless” communication.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 50
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Tools and Jewels
• Multimedia Messaging with Speech Access
• Positive organizational image built through rapid responsiveness achieved using seamless messaging interfaces.
• CM’s are engaged earlier in the sales process.
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 51
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Tools and Jewels
• High Bandwidth Avaya VPN access with Web-Enabled Applications
• e-Document Generation and Storage Reduces Transactional Costs, Minimizes Corporate Risk and Provides the CM with “Brick Office” Capabilities.
Global Contract Platform
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 52
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
Future Plans Built On Flexible Platform
• Reorganizing to Maximize Impact on Revenue Growth
• Tools Remain Effective
• Fewer Associates Required to Support Revenue Growth
NCMA 4th Annual Commercial Contract Management ConferenceTools, Jewels, and Rules: Leveraging the Contract Management Process 53
September 2–3, 2004Royal Sonesta Hotel New OrleansNew Orleans, LA
The Challenge
• Is Your Organization Realizing Communication-Driven Results?
• Do You Employ Technology That Makes Your Mission More Effective?
• Does Your Technology Provide You Flexibility to Change With Your Clients?