[SirionLabs Webinar] How Vodafone is Building the Future of Commercial Contract Management
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The document details a webinar hosted by Vodafone and Sirion Labs discussing advancements in commercial contract management. It highlights key speakers and their expertise, outlines Vodafone's efforts to transform its supply chain through improved contract management practices, and emphasizes the value of technology in fostering better collaboration and performance monitoring. The presentation concludes with insights on optimizing relationships and operational efficiencies in contract engagements.
[SirionLabs Webinar] How Vodafone is Building the Future of Commercial Contract Management
- 1. 1© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Organized by Featuring How Vodafone is Building the Future of Commercial Contract Management Webinar Feb 7, 2017
- 2. 2© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Agenda How Vodafone is Building the Future of Commercial Contract Management • Vodafone and VPC Overview • Key Supplier Management Challenges for VPC • VPC’s Response: CCM – Overview, Objectives, Implementation • Role of Technology (Sirion) within CCM • Key Successes and the Road Ahead Q & A Reinhard Plaza-Bartsch, Group Head of Commercial Contract Management, Vodafone Overview of SirionLabs and its Transformative Contract and Supplier Management Technology Ajay Agrawal, Founder and CEO SirionLabs Introduction and Insights Tim Cummins, President and CEO IACCM
- 3. 3© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Today’s Speakers Reinhard Plaza-Bartsch, Group Head of Commercial Contract Management, Vodafone Reinhard’s core principle is to develop in teams a culture of creating value by transforming traditional ways of operating. With over 15 years in Supply Chain, Procurement and Operations Management roles, Reinhard has led global complex transformation programmes and has provided companies with a competitive advantage by consistently delivering double digit operational efficiencies through innovation. At Vodafone, he has been pivotal in the transformation of the global supply chain function and has been a key contributor to the establishment of the Vodafone Procurement Company which centralizes +70% of Vodafone’s global spend. He currently serves as Group Head of Commercial Contract Management, where he is transforming how Vodafone is managing its relationship with its strategic partners by driving stronger collaboration and transparency through best practices and automation. Reinhard holds an MBA from Purdue University – Krannert School of Management, and a B.Sc in Industrial Engineering from Universidad de Lima.
- 4. 4© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Today’s Speakers Ajay Agrawal, Founder and CEO, SirionLabs Ajay has been a product visionary in the strategic legal technology space for more than 20 years. He founded UnitedLex Corporation in 2006 – a global leader in legal process outsourcing and strategic legal technology – leading the company through a period of profitable growth creating over $100mn in enterprise value in 4 years. Ajay has worked as a securities law expert in some of the world's leading firms and investment banks. He serves as an entrepreneur-in-residence at CodeX, the Center for Legal Informatics at Stanford University. Ajay holds an LL.M. from Columbia University, LL.B. from Trinity College, Cambridge and a B.A. in Semiotics from Brown University. Tim Cummins, President and CEO, IACCM As CEO of IACCM, Tim works with leading corporations, public and academic bodies, supporting executive awareness and understanding of the role that procurement, contracting and relationship management increasingly play in 21st century business performance and public policy. Prior to IACCM, Tim's business career has involved multiple industries and included executive roles at IBM. Tim's writing is extensively published and he has acted in an advisory capacity to government bodies as well as many of the world's largest companies.
- 5. 5© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. About the Organizers The International Association for Contract & Commercial Management enables organizations and professionals to achieve world-class standards in their contracting and relationship management process and skills. For more information, visit www.iaccm.com SirionLabs is transforming the way buyers and suppliers of complex services engage with each other using its SaaS platform – Sirion. Leveraging automation and advanced analytics, Sirion helps buyers and suppliers create higher value and more successful relationships, while effectively managing cost and risk in strategic services engagements. For more information, visit www.sirionlabs.com PORTFOLIO COMPANY UK Government G-Cloud Supplier
- 6. Key demands and pressure points • Commercial innovation – a critical source of growth and competitive advantage • Agility – the need to move fast in unpredictable and rapidly changing geopolitical and economic conditions • Demonstrate an ROI – functions as business units, not cost centers 6
- 7. What it means – emerging trends • New contract and commercial models • Focus on enabling • A focus on ‘outsights’ and performance data • Collaborative networks • Leadership and influencing skills 7
- 8. What it means – the critical enabler • Technology and adaptive standards • Transformational technologies are no longer 2 years away 8
- 9. 9© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Building the Future of Commercial Contract Management
- 10. Local markets Partner markets and affiliates Revenue Mobile subscribers Fixed Broadband customers TV customers IoT connections 26 58 £41bn 464m 13.7m 9.5m 38m 10 Vodafone Overview We connect everybody to live a better today and build a better tomorrow Vodafone Proprietary
- 11. Vodafone Supply Chain at a Glance 11 Terminals Technology Commercial & Services Travel/Fleet Merchandising Property HR Services Value Added Services Paper & Print Media Customer Operations Radio Equipment Access Transmission Core Switching IT Professional Services Fibre Energy Enterprise Applications/Software Handsets & Devices SIM Cards & Software Pre-pay Vouchers Datacards/Dongles Accessories Gateway Boxes Cloud & Hosting Network Services Servers/Storage/IT Infrastructure Backbone Transmission Network Infrastructure Laptops/Desktops Vodafone Proprietary
- 12. Are We Really Getting the Full Value of Our Contracts? Vodafone Proprietary 12 How well are we managing our contracts? Contract Communication Change Management Operational Leakage Relationship Damage Risk Exposure Contract Leakage People & Processes Performance Management Systems & Tools Reporting & Governance Implications Contract Communication Change Management People & Processes Performance Management Systems & Tools Reporting & Governance
- 13. Commercial Contract Management | The Beginning of our Business Transformation Vodafone Proprietary 13
- 14. Supplier Governance Technology Backbone Exit/RenewalIn-Life Contract ManagementHandoverSourcing 9. Exit and Renewal 4. Compliance Monitoring 6. Contract Governance 5. Transaction Monitoring 7. Change Management 8. Dispute Management 2. KPI / SLA Monitoring 3. Risk Monitoring Exceptions Management Performance Monitoring Formal Governance 1. Handover & Comms Transition to contract management Upon reaching contract milestones Designing the Future of CCM | Our Blueprint Pre-Requisites CM leads CM & CCM team up CCM leads Contract Management Cycle Vodafone Proprietary 14
- 15. Designing the Future of CCM | Our People 15 Global Category Manager Global / Local Business Contract Manager (e.g. Vendor Manager, Delivery Manager, Partner Manager) New - Global / Local Commercial Contract Manager • Complementary during In-Life management stages (CCM on the commercial side and BCM on the technical/operational side) • Supplier Governance • Technical solution • Supported by the CCM CoE • Supplier Governance • Contract handover • Supported by the CCM CoE Vodafone Proprietary
- 16. Designing the Future of CCM | Setting the Priorities 16 Highest Least Degree of Effort and Focus for CCM Top 40% Segmentation % Market Spend Characteristics Remaining 60% Full Partial Light-Touch Top 40% Contracts which form part of the top 40% of market spend, but do not demonstrate all characteristics for Full segmentation Global Governance New commercial models Strategic Relevance Global footprint (>3 markets) Vodafone Proprietary
- 17. Designing the Future of CCM | Leveraging on Technology Data Normalization SERVICE PERFORMANCE TRANSACTIONAL DATA CONTRACTSSUPPLIERS +25bn€ spend +15k +20k +100 other CRM and Network systems +820K POs per year COMPLIANCE MANAGEMENT OBLIGATION MANAGEMENT RISK MANAGEMENT PERFORMANCE MANAGEMENT RELATIONSHIP MANAGEMENT Business Insights Vodafone Proprietary 17 Simple & User-friendly Enables Collaboration Provides Data Insights Scalable (End-to-End Lifecycle)
- 18. 18 Driving Business Transformation Year-on-Year Vodafone Proprietary 15% 69% 81% 0 20 40 60 80 100 120 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2014-2015 2015-2016 2016-2017 Value % Compliance with Blueprint
- 19. Sirion Functionality and Implementation 19Vodafone Proprietary Jan 2016 POC kick-off Migration of Suppliers and Contracts Extraction of Service Levels and KPIs July 2016 Go-live with 300+ users, 60+ contracts Integration with SAP Expansion to 650+ users, 100+ contracts Nov 2016 Dynamic contract repository with comprehensive obligation and service levels capture Automated performance validation against contractual obligations Data-backed relationship management Functionality Highlights Implementation Onboarded suppliers start reporting performance on Sirion
- 20. Analytics and Insights | Dashboards Vodafone Proprietary Dummy Data for Illustration Purposes 20
- 21. Analytics and Insights | Dashboards 21Vodafone Proprietary 90 110.4 66.1 39.6 102.5 53.4 15.4 86.8 Project X Dummy Data for Illustration Purposes
- 22. Driving Awareness and Adoption Vodafone Proprietary 22 CCM Knowledge Portal Onsite & online training + Webinars and onsite forums….
- 23. Where We are Today with Our System Deployment Vodafone Proprietary 23 Effective supplier governance to streamline supplier performance monitoring, reporting, and in-life contract management through: • Centralization of contracts in a structured format to enable quick computation, validation, comparison, and analytics • Automated obligations management, SL management, invoice auditing, and value tracking against contracted business case • Effective management of supplier risks and issues on a single platform • Enhanced compliance through automated compliance tracking +1000 Users Across the Enterprise 20,000+ Service Levels and Obligations Under Management Strategic Suppliers Under Management +75
- 24. The Road Ahead Vodafone Proprietary 24
- 25. 25© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Company Overview PORTFOLIO COMPANY USA INDIA GERMANY DENMARK UK SINGAPORE UK Government G-Cloud Supplier Sirion is transforming the way buyers and services suppliers engage with each other
- 26. 26© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. How are Services Engagements Managed Today? | Largely Manual, Performed in Silos Traditional, manual, disjointed approach for managing the buyer-supplier engagement Legal / Contracts Compliance Management Project Management Financial Management Service Delivery Corporate Risk Legal / Contracts Relationship Management Procurement What was promised? What actually happened? What was invoiced? Sales Financial Management Performance Management BUYER ORGANIZATION SUPPLIER ORGANIZATION Enterprise Silos Technology &Tools Enterprise Silos Technology &Tools
- 27. 27© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. How are Services Engagements Managed Today? | Largely Manual, Performed in Silos Traditional, manual, disjointed approach for managing the buyer-supplier engagement Legal / Contracts Compliance Management Project Management Financial Management Service Delivery Corporate Risk Legal / Contracts Relationship Management Procurement What was promised? What actually happened? What was invoiced? Sales Financial Management Performance Management BUYER ORGANIZATION SUPPLIER ORGANIZATION Enterprise Silos Technology &Tools Enterprise Silos Technology &Tools $ $ Value Leakage equivalent to 15-20% of ACV Revenue Leakage equivalent to 3.8-10% of ACV
- 28. 28© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. How are Services Engagements Managed Today? | Largely Manual, Performed in Silos Financial Management Service Delivery Corporate Risk Legal / Contracts Relationship Management Procurement What was promised? What actually happened? What was invoiced? BUYER ORGANIZATION Enterprise Silos Technology &Tools Sirion’s Integrated Solution for Commercial Engagements FINANCIAL MANAGEMENT PERFORMANCE MANAGEMENT RISK MANAGEMENT CONTRACT MANAGEMENT RELATIONSHIP MANAGEMENT CONTRACT AUTHORING Legal / Contracts Compliance Management Project Management Sales Financial Management Performance Management SUPPLIER ORGANIZATION Enterprise Silos Technology &Tools
- 29. 29© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. The Impact of Technology | Reducing Governance Effort and Cost 44% reduction in manual effort POST-SIRION GOVERNANCE MODE Reduction in manual effort through technology delivers significant reduction in cost of supplier governance MANUAL GOVERNANCE MODE
- 30. 30© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Sirion | Customers and Type of Strategic Services Managed 17 FORTUNE 500 AND GLOBAL 2000 CLIENTS Banking and Financial Services Oil and Gas Healthcare Wind Energy Insurance Telecommunications Information Technology Aerospace and Defence Airport Operations Food & Beverage TYPES OF IT SERVICES MANAGED ADM IT Infrastructure management IT Helpdesk SIAM Network Management Data Center Management Telecommunications Services OTHER COMPLEX SERVICES MANAGED BPO Facilities Management Third Party Logistics Complex Manufacturing Construction Projects Contingent Workforce Healthcare Services
- 31. 31© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Summary and Key Takeaways Focusing exclusively on front-end procurement processes and ignoring in-life management of contracts leads to significant loss of value in commercial engagements Ensure alignment between the contract, supplier performance and the invoice to drive higher value in supplier engagements Besides enhancing business outcomes and value, technology can help improve collaboration, transparency and trust in the buyer-supplier relationship
- 32. 32© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Q&A
- 33. 33© 2012-17 SirionLabs Pte. Ltd. The contents of this presentation are proprietary. Thank You!