Contract Simplification in Practice

2016 International Conference on Contract Simplification

March 2016Carol B. Savage

Contract Simplification in Practice

Global mission reporting to IBM Legal

Mission:

Collaborate with IBM lines of business to design, develop, and globally

deploy IBM standard relationship agreements and offering contract

terms and conditions that are competitive, legally binding and properly

document the business understanding while enhancing the client

experience.

Supporting all Brands (hardware, software & services offerings)

Key Focus:

Contract design (structure, format, look and feel), development, global

deployment, implementation, education, guidance, advice and counsel

to Offering Owners, field teams (Field Lawyers, Negotiators, Sellers,

Risk Management...) on relationship and offering contract terms.

Continuous Innovation and Simplification

MISSION

Focus

Contract Simplification in Practice - Radical Change to Contracting for IBM

Problem Statement

Emergence of IBM cloud offerings across Brands

Existing contract too complex

Brand centric approach to contracting

Concept, Design, Develop, Global Deploy and Implementation

Simplify contracts, one contract across Brands that is simple, concise and flexible

"Think outside the box" a new way of drafting contract language

Collaboration between two senior executive teams to meet a common objective shared by the CEO

Design based off three existing Cloud contract templates

Leverage existing "back-end" for agility

Agile practices used to develop the CSA (accelerated teaming...)

Leveraged cloud tools and technology to do interactive drafting to meet aggressive targets for reviews

and launch

Leveraged social media (videos, blogs, web cast) for full implementation and education

Success

Over 12,000 CSAs accepted and growing

IACCM 2014 America's Award Winner!

Catalyst for total transformation in IBM contracting across all Brands (Hardware, Software, and Services)

New Client Relationship Agreement developed, deployed globally in 2014

IBM e-Signature launched 2H 2015

Contract Simplification in Practice - eSignature creates a digital foundation for the client contracting experience

IBM eSignature Further simplify the Client Contracting Experience

Increase speed with agile capabilities

New way of working

Solution Design, Global Launch and Implementation

Composable enterprise service running on IBM SoftLayer public cloud

IBM white label, single sign-on for mobile device, integrated with Box

Simpler, faster and more convenient client experience

Eliminates the hassles of wet ink signatures

Creates a foundation for cognative client contracting

Success

Implemented in 58 countries

Mobile app launch, Feb. 2016

Focus on increased adoption through mobile app

Electronically sign any document any time, any

where, on any device

“Digitizing a business requires eliminating paper. A good initial project is removing any requirements for “wet signatures” Source: Craig Le Clair, Forrester Analyst, eSignature

Transactions Topped 210 Million in 2014, Forrester Brief, May 19, 2015

Contract Simplification in Practice - eSignature anywhere, anytime on any device

12/29/15 client signature from a bridge on the Storm’s River in South Africa: 4th quarter signing and family vacation!

• Streamlined "look and feel" for faster, easier signing

• Moving the service to where sellers work and driving adoption

• Electronic signing ceremony can be face to face, remote or a combination of both

• Electronic signing can be done using "click to sign" or "signature capture"

Contract Simplification in Practice - What did we learn?

Radical Contract Simplification Short simple contracts require less to review which shortens the cycle

fewer negotiations, less time to close

flexibility is key to address client unique requirements such as industry

regulations

Innovation and change can be hard for clients too

Governance is key to maintaining simplification

E-Signature Implementation

Most countries allow eSignature

Local customs and practices such as signing ceremonies, tax stamps, seals

key for adoption and implementation

Contract Simplification in Practice - What Next?

First CSA Refresh, 1H 2016

Follow-on CRA Refresh, 2H 2016

eSignature adoption

Leverage Watson cognitive capabilities for further

contract simplification innovations

Contract Simplification in Practice – Tips for Success

Agile practices can decrease

design, development and

deployment cycle time

Senior executive sponsorship is

key for rapid global

implementation

Use of social media can

accelerate adoption

Client (internal/external) closed-

loop feedback is essential to

maintaining simplified standards

ANY QUESTIONS?

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