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Breakout Session #1212 Mike Kaul, President & CEO, diCarta, Inc. Date: Wednesday, April 28,

Putting Teeth in Corporate Contract Standards to Minimize Operational and Regulatory Risk. Breakout Session #1212 Mike Kaul, President & CEO, diCarta, Inc. Date: Wednesday, April 28, Time: 3:00 pm - 4:00 pm. Agenda. The sources of operational & regulatory risk

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Breakout Session #1212 Mike Kaul, President & CEO, diCarta, Inc. Date: Wednesday, April 28,

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  1. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  2. Putting Teeth in Corporate Contract Standards to Minimize Operational and Regulatory Risk Breakout Session #1212 Mike Kaul, President & CEO, diCarta, Inc. Date: Wednesday, April 28, Time: 3:00 pm - 4:00 pm NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  3. Agenda • The sources of operational & regulatory risk • Quantifying the business problem • Strategies for putting teeth in corporate standards • Real-life case studies NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  4. No Shortage of Regulations • Sarbanes-Oxley • HIPAA • Gramm-Leach Bliley Act • Revenue recognition • These regulations demand: • Business controls and oversight • More documentation and frequent audits • Proactive and timely notifications NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  5. Gramm-LeachBlileyAct BUSINESS CONDITIONS CALENDAR HIPAA Sarbanes-Oxley SAB 101 BusinessStandards Policies ? Immense Challenges in Regulatory Compliance Business Unit 1 Business Unit 2 ERP Controls ? Too Late Pro-ActiveNotifications Audits MaterialEvents ? Controls Environment? NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  6. Operational Compliance is a Multi-Faceted Goal Corporate Policy Compliance ContractDeliverablesManagement BusinessOversight NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  7. RESELLER AGREEMENT X BUSINESS CONDITIONS CALENDAR Un-enforcedPolicies Limited Oversight& Review Missed Deliverables RESELLER AGREEMENT X AMENDMENTC TERM SHEET TERM SHEET AMENDMENTE AMENDMENTD AMENDMENTB AMENDMENTA SOW SOW LOA LOA SLA SLA X X X X X X X X Sources of Operational Non-Compliance NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  8. "It seems like there is the world as understood by ERP, and the real world where contracts are negotiated and executed. These worlds have been drifting further and further apart, and a lot of time and money is disappearing into the void between them.” Andy Kyte Vice President, Research NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle” *Source: diCarta Launches Packaged Solution for ERP Integration Press Release - May 7, 2003

  9. Agenda • The source of operational & regulatory risk • Quantifying the business problem • Strategies for minimizing risk • Real-life case studies NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  10. (1) Independent Survey Poor Processes Impact the Bottom Line NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  11. The Savings Opportunity is Impressive (1) Independent Survey NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  12. Agenda • The source of operational & regulatory risk • Quantifying the business problem • Strategies for minimizing risk • Real-life case studies NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  13. Stronger Standards Throughout the Contract Lifecycle Contract Authoring Contract Negotiation Contract Reporting & Analytics Obligations, Compliance, & Renewals Management NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  14. Clause Library Suppliers Negotiate Author & Collaborate Review & Approve Partners Mfg. Finance Customers Procurement / SCM Operations Systems Eliminating Operational and Regulatory Risk in Contract Creation Templates Enforced Policies Guidelines NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  15. x PROFESSIONAL SERVICES CAPITAL EQUIPMENT LEASE Discounts & Rebates SLA Performance x Milestones x Quality Delivery Right Products CALENDAR Mfg. Finance AMENDMENTC AMENDMENTE AMENDMENTD AMENDMENTB AMENDMENTA Procurement / SCM Operations Systems Eliminating Operational and Regulatory Risk in Contract Administration Manage Amendments Manage Compliance Manage Obligations, Deliverables Renewals,Terminations, Consolidation NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  16. BUSINESS CONDITIONS CALENDAR CALENDAR BUSINESS CONDITIONS Eliminating Operational and Regulatory Risk through Effective Analysis & Reporting + - Contract Analysis Operational Efficiencies Contract Audit & Research Workload Planning Business Trend Analysis NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  17. Agenda • The source of operational & regulatory risk • Quantifying the business problem • Strategies for minimizing risk • Real-life case studies NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  18. Reduced Cost, Mitigated Risk • 16 billion in purchasing contracts, 30,000 suppliers • Standard contract templates, language, terms, fall-back language • Structured approvals • Alerts for key milestones and dates • Pull data from Ariba and other operational systems NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  19. NBC Established Contract Standards, Improved Efficiency, Faster Negotiation • Six sigma initiative • $1.3B in spending • Accelerated contract creation process while standardizing language and terms NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  20. “Self-Service” Sales Contracts • Standard terms, language, templates • Reduced days sales outstanding • Administer 100,000 contracts • Greater predictability and profitability of contracts NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

  21. There has to be some questions…. Mike Kaul, President & CEO, diCarta, Inc. Mkaul@dicarta.com (650) 474-3800 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

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