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Oracle

Contract
Management

Know More. Do More. Spend Less.

January 24, 2006


Monica Loomis, Senior Sales Consultant
Oracle Contracts Overview Agenda

 Business Challenges
 Solution Overview
 Sales Contracts
 Customer Success
 Demo
 Q&A

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Business Challenges
Increased Volumes
• Identify & eliminate Customer Expectations
redundant processes
• Accelerate contract negotiations
• Eliminate manual work and
• Meet agreed upon deliverable
administrative tasks
deadlines

Trading Trading
Partner Partner

Revenue Protection
and Generation
• Prevent contract leakage
Compliance
• Adherence to tighter
• Identify best opportunities to regulatory requirements
generate new revenue • Avoidance of costly penalties

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Management Challenges

 Collaborative contract development


 Increasing contract volume and complexity
 Secure, global access to electronic contracts
 Compliance with contract terms
 Performance analysis for re-negotiations
 Risk management and mitigation strategies
“Managing contracts is nothing new – what is new is their complexity.
Fortune 1000 companies have [on average] 20,000 to 40,000 contracts.
Companies spend approximately 50 basis points of their revenues to
manage their contracts, which can be reduced 20-50% using contract
management software.
- Jamie Friedman, Global Equity Research

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Why Contract Management Matters

Operating & Processing Costs 10-30%


Contract Negotiation Cycle Time 50%
Volume of Erroneous Payments 75-90%

Additional (New) Contract Revenue 1-2%


Renewal Revenue 30%
Compliance with Regulatory Guidelines 90-100%

Source: Goldman Sachs, Global Equity Research

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Management Best Practices
Leading Business Trends

• Corporate governance and global contract policies

• 100% electronic document management

• Embed contracting in sales & procurement processes

• Flexible options for consolidated billing

• Proactive renewal and termination management

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
How Oracle
Delivers
Oracle’s Contract Management Solution

 Standardize contract
processes
Contract
Administration
Tracking
Performance  Fulfill contractual
& Renewal
obligations

 Ensure contract
Contract Contracts compliance
Execution & Repository
Compliance

Establish
 Assess performance and
Corporate
Contract Policies
risk
Legal &
Business
Approval
Standards based
Authoring and  Identify new recurring
Negotiation
revenue opportunities

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Oracle Contract Management Products

Procurement Contracts* Maintain Finance HR


Projects
Sales Contracts* Service
All Product,
Service Contracts Fulfill Customer,
& Supplier
Information
DBI for Service Contracts Develop
Make
Project Contracts Procure Market
Plan
Order Sell

* New in 11i.10

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Terms Library
Establish Organization-Wide Contract Standards

Contract Terms Library

Legal

Sales
Organizations Implement • Standard Clauses Enforce
• Best Practices • Adopt as-is
• Legal Requirements • Contract Templates • Localize
• Regulatory Policies
Business
Government • Contract Policy Rules Units
Regulations

Rich text formatting – bold, indent, bullet list


Manage global and country specific standards
Revision control and approval management

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Negotiate and Author Contracts
Integrate Your Sales and Contracting Processes

Contracts embedded in ‘Quote-to-Cash’ business flow


One-time Orders Author contract terms on quote, iStore
cart or sales order

Sales Agreements Author contract terms on blanket sales


agreement

Releases Against Enforce contract terms on sales orders


Sales Agreement released against a sales agreement

Deploy organization-wide best practices Templates

Authoring assistance for complex terms Contract Expert


Contract Templates
Proactively Enforce Policies and Business Practices

Standard Licensing Template: Standard formatted terms and conditions


Agreement
Payment Terms Section: Topical grouping of terms and conditions
Fees & Taxes
Non-payment Penalties Clauses: Legal terms and conditions text
Early Payment Discounts

Shipping
• Standard contract templates by sales type
International Shipping
Damages & Recovery
• Full revision control
Limitation of Liability • Workflow based approvals
.
.
.

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Expert
Guided Authoring of Complex T&Cs

Contract Expert  Configurable rules drive terms


Industry selection for complex contracts
Segment ?
 Clauses default based on product,
customer, contract value etc.
Government Commercial

.  Author high quality contracts with


.
Over $50,000?
minimal legal supervision
.

Customer Defined
Questions No Yes

Responses Drive Add Clauses


Article Selection •11234.687
•12342.333
•12231.998
This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Document Management

Enforce approval
Contract Approve rules, track
Admin versions
Scanned Contract
Images Documents
Generate PDF
Legal documents
Print

Finance Global
Sign Contract binding
Contract
Repository
Senior
Mgr
Store Global, secure
access

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contracts Benefits

Process
Reduce ‘negotiate-to-contract’ time
Standardization

Compliance
Ensure contractual obligations are met
Management

Contract
Provide secure, global access
Visibility

Risk
Manage contract exposure and risk
Assessment

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Oracle
Sales
Contracts
Oracle Sales Contracts
Manage Contractual Customer Relationships

Customer Contract Negotiation


Inquiry /
Opportunity Propose Negotiate Customer
Contract Pricing, T&C Acceptance
Sales Reps

Contract
Standards
Enforce Terms
T’s&C’s • Pricing
iStore Library • T’s&C’s Blanket Agreement
or Sales Order

Order against
Contract Sales Contract
Quote
Order Repository

Customers Order Automation

*New in 11i.10, Prerequisite: Order Management or Quoting

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Terms Library
Establish Organization-Wide Contract Standards

Contract Terms Library

Legal

Sales
Organizations Implement • Standard Clauses Enforce
• Best Practices • Adopt as-is
• Legal Requirements • Contract Templates • Localize
• Regulatory Policies
Business
Government • Contract Policy Rules Units
Regulations

Rich text formatting – bold, indent, bullet list


Manage global and country specific standards
Revision control and approval management

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Negotiate and Author Contracts
Integrate Your Sales and Contracting Processes

Contracts embedded in ‘Quote-to-Cash’ business flow


One-time Orders Author contract terms on quote, iStore
cart or sales order

Sales Agreements Author contract terms on blanket sales


agreement

Releases Against Enforce contract terms on sales orders


Sales Agreement released against a sales agreement

Deploy organization-wide best practices Templates

Authoring assistance for complex terms Contract Expert


Contract Templates
Proactively Enforce Policies and Business Practices

Standard Licensing Template: Standard formatted terms and conditions


Agreement
Payment Terms Section: Topical grouping of terms and conditions
Fees & Taxes
Non-payment Penalties Clauses: Legal terms and conditions text
Early Payment Discounts

Shipping
• Standard contract templates by sales type
International Shipping
Damages & Recovery
• Full revision control
Limitation of Liability • Workflow based approvals
.
.
.

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Contract Expert
Guided Authoring of Complex T&Cs
Contract Expert  Configurable rules drive terms
selection for complex contracts
Industry
Segment ?
 Clauses default based on
product, customer, contract
Government Commercial value etc.
.
.
 Author high quality contracts with
. Over $50,000? minimal legal supervision

Customer Defined
Questions No Yes

Add Articles
Responses Drive •11234.687
Article Selection •12342.333
•12231.998
Contract Document Management

Enforce approval
Contract Approve rules, track
Admin versions
Scanned Contract
Images Documents
Generate PDF
Legal documents
Print

Finance Global
Sign Contract binding
Contract
Repository
Senior
Mgr
Store Global, secure
access

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Sales Contracts Benefits

Process
Reduce ‘negotiate-to-contract’ time
Standardization

Compliance
Ensure contractual obligations are met
Management

Contract
Provide secure, global access
Visibility

Risk
Manage contract exposure and risk
Assessment

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Customer
Success
A Few Contract Mgmt Customers…

BAE SYSTEMS
Demo
Q U E S T I O N S
A N S W E R S

This presentation intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making a purchasing decision.
Know More. Do More. Spend Less.