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Title : standard furniture showroom
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but thank you, thank you verymuch for joining us today. i am samir bodas, ceo and co-founder of icertis. before this event,before you start preparing for this event,my suspicion is not many of you knew what icertis did orwho icertis was. how many of you actually knewwhat we did about a month ago? that's what i thought. and that's why i thought iwill start with this slide and
then move into telling you alittle bit about who we are and what we do. and while we are veryexcited to be here and to be in this space, who cantell me what city this is? wait, that's a layout. anyone seen frasier? frasier is from seattle, right? the iconic space needle,of course. and on the bottom right thereis the experience music project,
which actually isan amazing museum to music built by paul allen. in the back there ismount rainier, and how many of you know what is thehighest peak in the lower 48? well, in the us, it's easy. mckinley, right? denali. so what about in the lower 48? and it's it's mount ranier.
it's mount whitney down incalifornia in the sierra nevada. and interestingly, mount rainieractually is 14,400 feet tall, and mount whitney is14,500 feet tall. but between mount rainier andmount whitney, there are 3 other peaks between14,400 and 14,500 feet, which i think is an amazing nationalgeographic trivia question. [laugh] butthe reason i show this is we are based out of seattle, right very close towhere microsoft is,
and we are the leadingcontract management platform in microsoft azure. so we are fully builton microsoft azure. we actually shows azure veryearly in our life cycle. being from seattle, you arefortunate enough actually to be in a city which has two ofthe four public cloud renders. the four public cloud vendors,of course, are microsoft with azure, amazonwith aws, google with the google cloud platform is called gcp,and salesforce with force.com.
so those are the four major, iwould say, public cloud vendors. we happen to be in a city,seattle luckily, where two of the cloud, public cloud [inaudible],blah blah blah, but i won't bore you with that. and because of that, we got a heads up thatthe cloud way was coming. and we bet on azure asopposed to the others, because we really feel that tobe an amazing cloud vendor,
you have to havevery deep pockets. guess how much microsoftspends per year building out its data centers? and be wild in your guess. $100 million? $5 billion a year tobuild data centers. and so does google. i'm not exactly surewhat amazon spends, but not as much as my suspicion.
so we do believe that to bea viable and substantial public cloud vendor, you have to spendin the billions for many years. and only a few companies havethat commercial strength to do that. as well as microsoft is amazingwith respect to innovation and with respect to partners, so we are lucky that we chose them,and now we are the leading provider ofcontent management in the cloud. we are of course reasonably
large for the number ofcontracts we manage, about 2 million plus,about half a million plus users. i don't know how many of you are interested inmultiple languages, but we are in 40 different languageand deployed in 90 plus, i shouldn't say deployed,used in 90 plus countries. because we're in the cloud,we are deployed everywhere. and really, the platformdoes everything, and we'll talk about it a littlebit from, essentially,
clauses to assembling a contractand managing a contract and obligations, etc., etc. again, i showed this slidenot necessarily, though it's a nice side effect of tellingyou what cool customers we have. but really, why i'm tellingis just to set a context for where we come from or how we have developed our viewof what contract management is. so this is a list ofsome of our customers. microsoft being a greatpartner of ours.
we are a great vendor of them. we're actually microsoft'stop ten managed isps so with respect to going to market,but microsoft is also a verywonderful customer of ours. in fact, we manage allof microsoft's ndas, non-disclosure agreementsglobally. we manage all their retaillease contracts for all the retail stores thatbuilding around the world. we manage all their partnerincentive contracts.
how many of you here aremicrosoft partners as opposed to costumers? we have one partner andthe rest are customers. anybody who's not a partner ora customer? so we manage all of the partnerincentive contracts. so incentive,i'm not sure which ones. all these contracts runaround our platform. we manage microsoft's all mcs orservices contracts, consulting as well as premieresupport, and we just started,
and which is where youwill enjoy our platform. we just started deployment ofour platform to manage all of microsoft's volume licenses. how many of you?you probably all have es. so all the volume licensesas well as all licenses will be run on our platform. so it's really a lot ofcontracts, microsoft contracts, flow through our system. cognizant, which isa very large si,
about $10 billion systemsintegrator has all it's msasow customer facingcontracts that we manage. airtel is very interesting, it's actually the third largestmobile operator in the world. it's based out of india,but it's the largest. in india,if you are the largest, you're probablythe largest in the world. it's like china and india,the numbers are very large. but interestingly, they use ourplatform to manage all their
tower leasings around the world,and it's very interesting. and since it's a cozy crowd, i will tell you somestories if you don't mind. [laugh] they've managetheir leases at our leases in africa as well as in indiaand other place that are there. and one of the leaserequirements with our maintenance is a check box, which expected actually thatthe tower actually still exist. that somebody hasn't torn itdown and sold it for scrap,
which can happen in someparts of the world, but we help then manage that. we, of course,also help skullcandy. you probably noticed that downthere, which is the second largest producer of headphones,the first is beat. i guess beat and boss mightbe similar, but skullcandy, we manage all their contracts on our platform as wellas the becton dickinson, which is the $20 billionmedical equipment manufacturer.
duke energy,the largest provider or trader of energy in the us,etc., etc. two logos that are not here, because of its late breakingnews, one is johnson & johnson. so johnson & johnsonmanages $17 billion of their indirect spendusing our platform. and in working with others,of course, our platform and otherthings that they are doing, which is with business processand software, they're gonna save
about $850 million in theindirect spend using our system. so after i heard that, i thought we hadn't pricedit right, but that's okay. no, butwe're very proud of that. and the second logo thatisn't here is google. we just signedan agreement with google. and you're probably one ofthe first people to hear it. so because it reallyhappened on the 31st or almost at the end of the lastmonth, we are gonna manage
all of the alphabet, whichis google's parent company, all of the contractsthat alphabet has. so we're really excited. it's a large footprint,it's a complex footprint. we do sell site contracts, we dobuy site procurement contracts, we do leases, we do corporatecontracts like ndas. so all sorts of contracts for all sorts of companiesfrom skullcandy. at the bottom on the list there,which is a $300 million company
all the way up to google,johnson & johnson, microsoft, which are of course $100 billionapproximately or plus or minus. and that's our background. so whatever sort of the nextslides that follow, really abouta perspective from here. from 300 million tomulti-billion across the board. so keep that in mind as we pivotto really why you are here for. so what are the fundamentalcontracting needs? that any enterprise has.
pretty simple. it's about spend management. make sure thatwhatever you procure, whether it's indirect spend,like it services or lawn services orleases or electricity. anything that you buy foryour indirect, as well as your direct, which is your supplychain, the materials that you get, you manage that, youwanna have contracts for that. you have revenue contracts anduse contract management for
revenue enhancement, or anysorts of revenue for licenses, product, maintenance,warranty, etc., etc. and of course, then you havecorporate contract with the nda. but really it's about spend andrevenue. and then, the other two thingsthat you use your contract management for is to make sure that whatever contracting yourenterprise does is compliant. compliant withthe company's policies or compliant with regulation.
and that you don't take on asmuch risk as you should or the person is permitted to. and then, of course,usage and satisfaction. make sure that the contractmanagement system doesn't come in the way of doing business. it collaborates withthe business user and the business useractually uses it. as opposed to go around thecontract management system and do what is calledmaverick contracting.
and it satisfy, we findthat 80% of legacy contract management implementationshave either failed or not given the full roibecause of lack of adoption. and then, that lack of adoptionshappens because it's not an easy to use system. people say contracting comes inthe way of me doing business. so that's a big need, how doyou get the system adopted and make sure it is easy to use and there's high satisfaction withrespect to compliance and risk?
this is getting to be a majorissue in the cxo suite. especially with the chiefcompliance after the cfo, the clo. i was reading somewhere that, how many of youare familiar with fcpa? so foreign kinda practice,practice act or the uk bribery act. what i read somewhere wasin the last seven years and change the obamaadministration has enforced or
brought more suitsunder the fcpa. then they were ever been brought since the passingof the act in 1973. so it's a very aggressiveposture that the government is taking with respectto current practices, which i think is wonderful. but at the same time,the company is at risk because if they don't havethe right policies in place, the right systems in place,right procedures in place,
audits in place, the company hasto prove to the government that this is really somebody whois maverick who did it. as opposed to the companybeing complacent in not looking the other way,and that's a contracting need. so these are the contractingneeds that we see. and there are challengeswith current it systems and i've touched withsome of them and i'm sure you've seen thisin your own organizations. one, there's multiple ownersin contract management.
who gets involved? the actual group that doesthe buying and selling. which is sales or procurement. then there's legal,there's finance, there's compliance, there's it. and it's almost like a hydra. right? contract management is weird. it's not in any one owner. and if there is one olderthan the other person
feels unempowered. and [cough] not onlythat things change. so how many of you are inprocurement on the buy side of things? none of the above. one. how many of you were onthe sale side of things? how many of you are in other? [laugh] are you from it?
well, how? mostly it, i gotcha. so you're on both buy andsell side of things. so that's actually, i should have seena myopic in my questions. a and b, and none of the above. i've missed a and b. so great, so [cough]it's very interesting that it, especially,feels the brunt of it,
and definitely procurement andsales. because as policies changein different departments, you have to adjust your system. and certainly compliance mightsay the policy has changed that procurement has to adhere to andit has to react to. or legal might say here are anew set of contracts that we have because we had a audit orwhatever, and now it has to react to it orsales has to react to it. so it's multiple orders,fragmented data.
data is all over the place. whether it's transaction data,whether it is contracting data. your sales contracts are inone place, your is in another, hr contracts in third,procurement is in fourth. somewhere in filing cabinet,somewhere in somebody's hard drive, and that fragmentationis a big challenge. from not recognizing sort ofthe maximum value of your contracts with respectableadvisers are just risk in compliance point of view.
then, this diversity of userbase, this is the contract management system weirdly, it'salmost like microsoft office. you may not use it as often but lot of very differentdiversity of users use it. it might be somebody in it,really it savvy. it might be a paralegal orlawyer. it might be somebodywho is in procurement, a contracting specialist. it might be an admin oran assistant or an executive
who wants a report, oran executive himself or herself. so the diversityis substantial and that means you have tomake the system easy. and appealing fora diverse set of users. it's a big challenge forthese systems. and then,the diversity of form factors. it has to work on the phone,it has to work on the tablet, it has on the surface,it has to work on the ipad, it has to work on my desktop,it has to work really everywhere
because the scenario thatwe hear about is, hey, a manager and a sales repare going to meet a customer. and they want to know, hey,does the customer have an nda? and the sales rep goes, letme check, or i don't know, so they have to go and look atit right away on a phone. or they might say, hey,have we sold this contract? or what does this clause say? so it might be accessed thatway, or it might be accessed by an executive on vacation whohas to approve something.
and now they wanna lookat the contract lease. the net of the contract iswhat they're approving. so the diversity of form factoris key, and the weird part is you have these needs whichpull in all sorts of direction, you have these challenges yetit is such a critical system. it is contracting atthe bedrock of all commerce. very few companies justdo business purely on purchase orders. very few companies.
you have to have some contractas you become larger. and then, you have srw or you might do a pro, butcertain terms and conditions, especially liability, insurance,neck terms, etc., etc. and the top chevron is really,so the sales, so lead to cash,as we call it, chevron. and contract managementtouches really everywhere. so when a lead comes in, andthe rep really should be able to know what have wesold to this customer before.
or what proposal. proposal probablyin the crm system. but the contract beforeyou even actually go talk to the customer. when it's an opportunity, reallythe negotiation is happening. wouldn't it be wonderfulif the contracting system could serve up how didthe negotiations go for the last contract theydiscussed the last time around? did they push on term's x?
did they push on term's y? what did we give as a companyto the customer and what do we expect in return for them inthe next contract that we do? wouldn't that beamazing intelligence? as you're negotiating the dealwith all the emails and powerpoints and etc., that wereexchanged back and forth and then of course you go into theactual contracting of the whole workflow etc., etc.,with respect to approvals and putting the right contracttogether, all the terms and
conditions, allthe contract terms. then you have tofulfill an invoice. many time it's justnot the product. but you have committedto other things. some service level agreements. some things with respect to, let's say, background checksif you're a services company. or a manufacturing company forthat matter. that hey you will, you willactually go and do drug testing.
let's say, of your staff everysix months if it's required. do you do that? and how do you manage allthose obligations and commitments beyondthe commercials? then collection, right? one of the mcdonaldthey're paying on time, it's in the contract, right? it may change with theamendment, does that bubble up? and then of course optimize, howdo you think about this whole
body of information anddo better? how do you get, is an aggregateacross the country or globally the vendor givingyou the discounts he or she is supposed to give you? and really the contentmanagement system has that information. it may be in manyother systems but the single sourceof truth is it's only in one placein the contract.
same thing on the procured topay site which is the lower chevron, or source to settle,as some people call it. when you're sourcing,you put out an rfb. you would like to put inthe standard data fee, with the standard nda, maybeyou'll send out the standard msa that people have to look at. and it should come froma standard contract management system as opposed towhatever the last version was in somebody's hard drive orwherever it is stored.
and that is very critical. on supplier on boardingmake sure they sign all the right contracts. not only that, they have allthe right certifications and load them into the system. where there's insurancecertificates or some sort of regulation or whatever you mighthave when you onboard. and then, on ongoing basis,
make sure those certificatesare not expired or that whatever the commitments are not expiredand have alerts around it. and make sure the suppliercan actually upload hands by themselves in somemailing certificates and things like thatinto some portal. which is reallythe contract management but then you have the whole historyof their information in one place. then you procure of courseall their sorta views or
whatever you mightwant to procure. then you settle. when you settle youwant to make sure. really think of this asthe other side of the coin. so it is really the same thingwhere from a vendor perspective. so i think this slide reallycaptures how the contract management system is the bedrockof how people behave and how people, how conductbusiness with each other. and how to use this tooptimize what you have.
now let's move tothe new paradigm. i think these are reallycable sticks. so what is the requirement ofa contract management systems. right, contractassembly approval for employees signaturedepository microsoft office integration because most peoplehave world in accelerating of microsoft conference essentialbecause of you use office, word and excel an integrationwith all sorts of systems. integration with any crm.
very important. don't force me touse the crm that you think you buildyour platform on. let me use the crm i have. maybe it's siebel. maybe it's mscrm. maybe it's something else. maybe it's salesforce. any erp system.
maybe i like, maybe it'sa combination of crm with sap. or maybe it's salesforce anddax, could be anything. and it's table stakesnow that don't force me to do business the wayyou do business. let me do the businessmy own way, and you integrate with what i have,right? and those are kindof table stakes. but how are they changing? so here are some things we arehearing with respect to the new
paradigm. we touched on some of these. the first one is one platform. one platform forall contracts and all artifacts. artifacts are sort of what was the communicationbetween the vendor and you. or what was the communicationbetween the customer and you via email. whatever certificates they gave.
what on the sales side,what did we bid. and what did we do.? bid is in the contract. do is outside the contract. how does all ofthat come together. very important to havethat in the intelligent enterprise where competition andthe velocity at which businesses are goingis just astounding. as i was looking at some data,think about this, and
this is just fascinating data. ibm took about 50years to become a $100 billion market gap company,amazing. microsoft took 20, 22 years. google, i think it was 10 or15 years. facebook, 7 to 10 years. now people are creating $100billion of value in five years. imagine the velocityof business, and that's the environmentyou all are competing in,
we are competing in. and now the old wayof doing business, is really goingto start hurting. what happens is whenthe economy is growing rapidly inefficiencies get hidden,right? when competition increases orthe economy slows down, the inefficiencies bubble up andhalt. we are in a time when evenminute inefficiencies are going to begin to huirt because howrapidly change is happening.
contract management systems,i think, have to think businessthat is today and tomorrow which is a completelydifferent ball game. it's global, regulations change,speed is so fast, so mush risk in compliance thatyou have to worry about. and you need to have oneplatform that can wrap all this grc, governance risk incompliance in one place and that's very critical. secondly everywhere,every time, and every device.
we talked about that aboutaccessing a contract will going to a customer butthis is very very critical. and the third thingis in the cloud, i don't how many of you werethere at the debby talk, debby wilson who's a analystwho we had invited, and if anybody wants to talkto her, please let us know. and vicky will be happyto coordinate that. but she talked about this,where 90% of her requests for contract managementsystems are in the cloud.
now the first is,we want to be in the cloud. and the second sentenceout of the clos, chief legal officers, theprocurement person mount, but it has to be 100% compliant,100% of the time, right? and i think azure, i don't knowhow many of you are on global companies, but azure really withits data centers globally gives you that ability to keep yourdata in the right place. with disaster recovery,i don't know if you might have heard that the eustruck down the safe
harbor agreement betweenthe us and the eu. now all the european datalegally has to stay in europe. it cannot come to the us. otherwise it's a regulationthat you have breached. but microsoft has the cloudwhich is really everywhere. they have data centersaround the world. and you can make yourselfcompliant by being in azure, and of course,our app is on azure. and we make sure thatyou are in the cloud.
100% compliant,100% of the time. next thing, intelligence andinsight, right? the connected clm, we talkedabout this earlier that hey, really, the clm, or the contractlifecycle management system, has to be connectedacross the board. it has to connect to your crm, it has to connect toyour sourcing system. it has to be connected toyour procurement system, your invoicing system, your erp.
it also has to be connectedwith external systems, right? when i'm negotiatingwith a vendor, give me information on thatvendor right in my dashboard. their dnb rating, right? system, which actually has,which we integrate with which actually hasall the foreign parties or even the us parties thatare banned or are risky. so has seen this where theyshowed us an individual who is a relative of thirdcousin of vladimir putin
who is running a company thatthey think is majority owned. at least some form of paper bysomebody who is nefarious, and they identify that. at least you know whatyou're doing as opposed to, and do business with,if that's your risk profile and you have the right controls. etcetera but at leat you know. or try a labor laws andthings like that. so integrate withexternal systems.
integrate withinternal systems and do deep analyticsto bubble up value. i'll give you another example. cto brilliant guy, big data. machine learning,natural language processing. [cough] to prove out that weactually can do deep analytics and contracts, he went tothe department of justice site. as you know,enron got in trouble and it was criminal prosecutionin that particular case and
they went out of business. but because the governmenthad a case against enron or took them to court,all their contracts and all those documentsare actually on a doj website. and you can go and downloadthem and entertain yourself and read those verycomplex contracts. what monish wanted to prove is, can i use natural languagerecognition big data and azure? and machine learning will findconnections between these
contracts withrespect to language, with respect to how they are,ownerships, trees, etcetera. to bubble up fraud. good, the chief complianceofficer of enron, let's assume that he was not,he was honest for a second. i don't know who he was, soi don't cast any aspersion. let's say somebody whoreally wanted to find out. could they have used a contractmanagement system with machine learning and
nlp etcetera to at least have aheads up something may by wrong. he actually did find linkages. so how can you, in all fairness,he knew what he was looking for, so he could've fine-tuned thealgorithm to actually do it, but what is interesting is. that is the area thatthe new contact management systems are going to. where you can do deepanalytics and bubble it up. standard analytics are given i,their reporting, that's given.
what's my spend? how can i spend? do you need a discount? can i up-sell? can i down-sell? my revenue. table stakes. what you should be thinkingabout that i recommend, when you're evaluating a contract,i mean what can you do here?
so, that you're preparing forthe future, right? and risk & compliance trackingthroughout the lifecycle. again, we talked about thompsonreuters, dun & bradstreet, liquifacts, etcetera. but throughout the lifecycle,there should be checks and balances on the contractmanagement system. so what we do is when somebodyactually creates a contract from your master data or new,if its a your master data sow, if it's a new customer themnew master development.
we actually run testsagainst all the background. if it's your policies youcannot do business with, let's say tobacco companies. some people have that policy. or the state department'sblack list, or whatever you might have. we ran those tests again,individuals and companies, to make just stop it. or, on the commercial side,you're been
business with somebody who,relationship is not that good. well we can actually block thatwith respect to risk management. or not block that. send it to compliance or makesure them additional approvals. but throughout the lifecycle,the beginning. while you're havinga relationship with the counter-party andas you're sun setting. what is going on? very, very critical.
user-centric. and this goes back to whati was saying earlier where the diversity of users is quitesubstantial in this space. right? you know what one question. how much time. this is 56 minutes. i have been target for56 minutes? >> [inaudible] just wantto make sure i'm not.
everybody's going. okay good thank you. [laugh] i'm misreading. coming back to user centric,right? the right user experience forevery user. that means [sound] ifi'm a sales person, let me go to what system i use. whether it's ms crm orsalesforce or seibel crm or arco or whatever it is.
and let me do my contracting inthat system don't make me change systems. so what's the requirementwhatever contract meeting platform you have it shouldshow that contracting information to the user inhis or her environment. legal like to use let's say. our system, icertist system. showed the whole power ofthe platform in our system. lets say in it services you have
delivery of projectmanagement platforms. should the contractinginformation and even the contract and where it is with respectto compliance etcetera. in the projectmanagement system. show it inthe procurement system. we integrate with ariba, with coupa with all sortsof procurement system, show it in that andthat is where this is going.
don't make me change how i work. because you want to be compliantand you want to be at risk, mr. corporation. i'm just a poor employee. help me help myselfbe compliant, then change the wayi do business. and that's a verycritical requirement that you have this userexperience nailed, right? the next is embracesour business process.
and this is actuallyslightly tricky. if you go, it's a balance. if you go too far onthe compliance and risk management site,you actually have to chain the darn business processof the whole company very hard. very hard to do it quickly,to take, it'll take some time, right? and if you have a veryloose system, then there'll be maverick contracting,what's the right way?
the right way is geta contract management system that embraces your workflow and your compliance mindset andyour risk profile. what does that mean? that means if my way ofdoing business is one to two to three to six to seven. the contract management systemis to, should be configured, configured not customized,configured to do this one to three,two to three to five to seven.
now, if six months down the linecompliance changes their mind. that instead of five to seven,they only go to five to eight. the system should be ableto easily be configured to go from five to eight. because the system isembracing your way of doing business as opposed toenforcing a point of view. now, you could have a pointof view, that know why we're implementing this we wantto go to five to eight. and the system will say fine.
go from five to eight. and this configuration is very,very, very critical, by the way. the reason is a lot of peoplehave gone down this path of one contracting, this isour way of doing compliance, this is with notreally good results. because the philosophyhere is and this is again softwarephilosophy or maybe general. the philosophy in software is,or at least in erp software is if the tax,if you tax individual x.
and the benefit goesto individual y, or to the company,individual x will be unhappy. now, you can tell them hey, it'sgood of the company, etcetera. and they will accept it. but they will, you don'twant them to be taxed so much where hey,you're just changing my job. i'm used to doingmy job this way, don't make me change my job. enable me to helpyou be successful.
and so make the tool,the platform, the system embracewhat you do and then gradually change to takeit the way you wanted to go to. so kind of a tricky thing. and happy to talk to afterwardsif you wanna go deeper into it. lots of customers we have toconsult to them to do what we just recommended with verysuccessful result and very large companies. so happy to share that.
and then the lastpoint really is self-service and minimum touch. what this is,is again it's the consumer's side of the individualcoming into the enterprise. most of us buy things online. we procure, right? how do we do it? well 20, 30 years ago we used togo, let's say we were gonna buy a car,we used to go to dealership.
have that interactionwith the car salesperson, he will or she will tell youwhat it is about the car, you look at a brochure inthe showroom, you go for a drive, you negotiate,hopefully you buy or you go to another dealership and you dothis process and you come back. how do you buy things today? you really self serve,you go online, you go to the blue book or edmunds orsome sort of a car website. and you self help,self serve, right?
for everything,from furniture, to cars, even homes, or jewelry,whatever you have. that mindset of self service at home is now comingto the enterprise. where the employees are saying, why can't i selfserve contracting? put the guard rails around me oralong me, so i don't hurt the company. but if it's standard stuff,or within norms or
policies of the company,let me do it myself. and we believe that's where alot of saas companies have been really successful, wherebusiness has started making some of the decisions cuz they'resaying, i want to sell serve. it's a challenge forit of course. but, that's the worldwe live in. and the self service andcontracting with minimum touch and i think then i will show youa demo is becoming very big and contracting self service andminimum touch is becoming
almost a requirement forstandard contracting. or at least withinthe parameters of what your risk profile is. so that's the third thing. so i think this kind oflays out what we believe is the new paradigm forcontract management. at the end of the day it isall about easy to deploy, easy to adopt, andeasy to evolve. you don't see that many times.
that means the systemevolves with you. as your policies change,as you sell different things, as you procure different thingsthey will go into different geographies. the system evolves or is configured, can configure,with what your requirements are. so we'll do a quick demo now andi'll request in a minute niranjan to come up buti think some of you may or may not, probably not,have seen our press release and
there are so many pressreleases that came out. we just announceddeeper integration with microsoft dynamics crm andmicrosoft dynamics ax. where built on azure, you willreally be able to do self service, no touch contractingon the sell side. and on the buy sideat least in ax and you can use whatever sourcingsystem you might have. maybe it's ariba, maybe it'ssomething else attached to dax. all of that can be automated andone click.
and this wasn't there before. you couldn't do this before. where, from a lead to cash,there's a contract in the middle, nothing is onpaper, or it just happens. and that automation, i'llinvite niranjan umarane who is a general manager of productmanagement to come on stage and show a quick demo. niranjan. >> thanks samir. >> sure.
>> good afternoon. let me just switchthe screens real quick. just making sure myconnections are still working. all right, so you heard samirtalk about key valuable positions, key considerationsin contract management, a few of them were enterprisewide, single platform that allows you to manage contractsacross your sales sourcing etc. so how does account managerengage and participate in a contract lifecycle whilestaying inside the crm world?
and number three, while we goabout doing our business on a day to day basis, how do weensure we are managing our risk? and we're complyingwith our processes and policies that we put in place. so let's walkthrough an example, i'm john doe, i'm an accountmanager, i sell crm licenses. i'm sure some ofyou have already bought a few licenses from me. so, i'm in microsoft crm.
and i have an opportunityhere for a license deal. and at a certain stage inmy opportunity lifecycle, i have submitted a proposal,it's accepted. i wanna initiatethe contract process, right? and typically,we heard samir mentioned, there's a lot of focus andinterest now in organizations as to how wecan enable sales service. so if i'm doing a standardlicense agreement right, that for crm, do i reallyneed to shoot out emails,
attachments to my legal to get acontact done, go back and forth, i have no idea wherethat email went through. then shoot it out or is thereany other better way to do it? right. so here i am on my opportunity. inside that, i get an option to,create a contract. so i'm john doe,i have an opportunity for crm license sales, andi am going ahead and initiating a creation of a contract fromwithin my crm tool, right.
and now, the deep integrationof the icert system inside crm, depending on the opportunity andits attributes, the system is gonna now drivea very self-service process, but a very stronggovernance around it. which means it's gonnaidentify what type of contracts do we need to do forthis particular deal, all right? what are the templates? what are the terms andconditions that we need to include forthis particular deal?
and as john, right? i'm just clicking through it,it's just preselected this. and i'm just walkingthrough this wizard. i'm going ahead andcreating this, right? all the data came through. i'm not doing anydata entry here. all my data from mycrm opportunity, my account details,my deal terms, commercials. whatever where you havestructured your crm depending on
whether you sell services,products, products and services, that datagets mapped and is auto-populated on mycontract transactions here. i'm not doing any double entryand i just walk through this to go ahead andcreate the contract. so, it's a very strongcompliance and governance process, you notice it haspicked up the license template. all right, so there's a licenseagreement for the crm license, which has identifiedwhat template to be used,
what are the terms andconditions, and think about ofglobal operations, think about subsidiaries allover different geographies, and account managers in the crmsystem selling licenses in us, in canada, in germany,in singapore, in china. and doing contracts in all ofthese different languages. so the intelligence is,the icert system will bring to the table is,depending on where john is. who is he selling to?
what type of deal is he doing? it'll go and pick the rightconstructs from the contracting rules which have been setby legal and compliance. to identify, i'm gonna do a license deal inchina in a chinese language, or in german with these terms and conditions with some localregulations being adhered to. local language and localizations, all of that comesthrough and identifies and
i can just go ahead andcreate this, right? now obviously i just walkedthrough the wizard and i created and submittedthis particular contract. i still don't know. i'm john, i don't know ifthis is gonna go through an approval process,if this is gonna be approved. what am i gonna do with it? so, here is where a lotof intelligence comes in, which is actuallyabstracted from john.
and as an account manager ireally don't wanna know what type of deal and how many layersin compliance do i need to walk through before i can geta deal approved, and all that. i just went through and used thewizard within my opportunity and created a contract. on my part of the screen, nowi'm getting real time visibility on what's going onwith this contract. what is the status, right? and i can see thatalso on my smartphone.
which is extremely important foraccount managers and sales on the field toget that visibility. notice here this isa contract that got created. and you notice the status, itis approved because that's what the compliance processis configured for. and once we havewalked through this, we'll now do another opportunityand a deal where we'll actually see how systemenforces a different process. but for now,it is a self-service.
sorry. >> [inaudible]>> you see what happened, there wasan opportunity in seattle and it was ready for contracting. you clicked on a button andit walked and a contract was created. it's a unique contract,it's not standard, it's unique. looking at the master data and the metadata fromthe deal itself.
the system actually assembleda whole agreement with addendum just like microsoft willassemble in the air for you. with all the costing,all the pricing, all the addendum, all everythingin a packet was created. then the system lookedat what was that packet. and says, is this standard? looks standard or at least looks withinthe parameters of approval. and the system approved it,with no person and
legal accountspecialist touching it. amazing forthis spectrum velocity and now you can just go ahead andsend it to the customer, right? >> yeah. so, i can actually go insidelook at this contract document and shoot it to be executedon electronically and signed right fromwithin my crm tool. so, i can look at this, i can get a preview of thatcontract document right here.
and i can just send this for signature right fromwithin the opportunity. so that's set of this low touch. and if we relate back to whatsamir was talking about, how business is changing,we need speed, so this significantly improvesour speed to market. you leverage the power ofcontracting system and enable a lot of self-service andoptimize it on the sales side. obviously you may notbe able to do that for
all your contracts orall your deals. but there are definitely a setof deals where you can enable this self-service. but what happens to thosedeals which are complex? so imagine i am selling servicesalong with the licenses, and i'm also gonna offer email support,along with the licenses. so complex deal, high value, i may not want toallow self-service. i'm gonna put some approval and
review processes in between,right? so, i have another opportunityhere for license and implementation. let's say about $800,000,high value opportunity and i still get the same capability. and again, john this is anotheropportunity, i still have the same capability to go in andinitiate a contract process. so what happens in this case iswe'll notice that depending on the attributes andthe characteristics of the deal.
the rules engine inthe contracting system is going to kick in and it is gonna not only assembledepending on what i'm selling. so it's not just a license, it is gonna pick upa different package. i heard somebody mention that'sactually build a package it's gonna pick a template that hasa license plus services, right? and build a contract, and then send it througha review process as well.
so let's go ahead and, create a contract. just give it a few dates here. >> so,this is a non-standard contract? >> this isnon-standard contract. so you notice the template ihave picked now is different. it is now actuallypicking up a license and services agreement as opposedto just a license agreement. as this process is takingplace in my crm system.
i can if i'm legal i'min my icertis system and in the icertis system, this is icertis contentmanagement system. i'm the compliance manager,i'm the legal manager. i just refreshedmy dashboard and i see the countincrease from 19 to 20. if i go in, i'll see the agreement that johnjust created in the crm system. come up here,800,000 for my review.
>> so this is very interesting. the agreement, the ui forthe salesperson is ms crm. the ui for legal,they prefer to be here. they could be in crmif they want, but they prefer to be in the icertissystem in this particular instance, they couldbe in anywhere. and now, they are acting on the same contractfrom a different ui. so if you notice here,this is license and services.
if i open this documentin word i can review it. i can make sure allour right terms and conditions are included. so the system assembled all ofthese content based on what john entered as his dealattributes in the crm system. and i can go ahead and approvethis particular contract and go through an approval workflow. so as it is goingthrough this process, now you'll notice in the firstscenario it was self-service,
standard deal, just cyclethrough within the crm system. legal didn't even get involved. if john had tried to edit it orthe customer rejected it, it will workflow to legal. but it is seamless assembled,approved, send to signature, deal done. but the second scenario,high value deal, a complex scenario you haveessentially bundling products plus services plus support.
and then based on the rulesthat are configured, the system kicked that contract,actually, for a legal review, before even john could get hishands on that contract to send it to a customer orwherever it gets, right? so you can actually configurefor the same sales user, same type of products, etc., different workflows andprocesses to handle scenarios depending onthe attributes of a deal. and when this is all done, whenthis is all done, what happens,
you're actually fulfilling it. you get sales orders,you're gonna do invoicing. and that's where the integrationwith the ax comes in. so here is mycustomer records and my customer adventure works,and the invoice, for example, which is generated foradventure works. what the compliancethat happens here is, i can just filter this through, we integrate deeplywith ax as well.
so we normally pushcontract terms, etc., that you can refer whenyou're generating invoices. but once you'vecompleted the cycle, we pull that data backinto the contract system. so on my agreementsactually have associations, which these are invoices thathave come through from ax. and when they come in, we domatching with the contract. we evaluate compliance. but more importantly, a lotof our contracts also involve
volume commitments, right. we do assumptions that we'll dox million dollars of business with this customer in a quarter. or we'll buy x million dollarsfrom this supplier this year. and these budgets actually arefoundational to how much savings we have projected, how revenue we are projectingin terms of our rate. so when this comes through,we do the evaluation and give you that insightthat we are complying and
adhering to you assumptions andplans. >> great. >> that's what i have to tell->> thank you. thank you very much. narayan appreciate. just one moment, i know weare running a little late. but i think what you essentiallysaw was no touch invoice. approval workflow invoice. and all depends on sort ofthe perimeters of the deal.
and this tremendouslyincreases and one thing it didn't show isthe salesperson will know exactly wherethe contract is held up. with compliance orwhich individual in legal or compliance and not only that, how long havethey been looking at it. the best way to getefficiency is transparency. that's the best wayto get efficiency. so jumping just to end, weare actually living in a amazing
time from the prospectof change. one more small story. this is the first time inthe history of the world. a kid in beijing in barcelona orbaton rouge. with a credit card had the powerof a super computer at his or her fingertips. never has not happened inthe history of this world. any kid, imagine how muchinnovation is going to happen. in the cloud and in the space.
i encourage you to embrace it. think about solutions like ours. and see if they can sort ofput you on track anyone and enhance your efficiency as thisworld moves faster, and really, look forward to seeingall of you in the cloud. thank you. >> [applause]