Maximizing Revenue with AI Powered CLM
AI and NLP powered CLM solutions, along with automated, centralized templates, workflows, and processes, help in cutting costs and ensuring revenue resiliency. Organizations can mitigate losses and capitalize on revenue opportunities by streamlining contracting processes. The presentation by Arthur Raguette, Ultria's Co-founder & EVP, covers revenue recognition, smarter negotiations, upselling, cost savings, and more.
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Presentation Transcript
ROI for Revenue - Multiply Contract Revenue with AI powered CLM Presented by Arthur Raguette, Co-founder & EVP, Ultria June 12th, 2020
Speaker Info - Arthur Raguette, Co-Founder and EVP, Ultria Mr. Raguette is very passionate about the application of innovative technologies to solve real-world business problems with a strong emphasis on enterprise solutions. Arthur has more than two decades of experience in working in Information Governance domains across industries. Arthur s prior technology passions included high-performance B2B middleware, SaaS deployed master data governance platforms and hybridized SaaS applications for HR, and Employee domains.
AGENDA Introduction Revenue Recognition 5 Steps of Revenue Recognition Model Recognizing Revenue with AI powered CLM Revenue Resiliency and Revenue Growth Smarter, timely negotiations for better deals during renewals Effective upselling and cross selling with supporting key data at your disposal Effective realization of contract entitlements Structured payments to meet the required cash flows Increasing net new revenue through quick and efficient contract turnaround Ultria Cost Savings Calculator About Ultria Q & A
Poll Question Q. Which of the following contracting tasks have been extra difficult during the COVID-19 lockdown? A. Reviewing contracts for Force Majeure clauses B. Requesting for new contract intakes C. Accessing all ongoing and legacy contracts D. Monitoring contract performances E. Closing contract deals F. All of the above
Revenue & Efficiency AI and NLP powered CLM solutions along with automated, centralized templates, workflows, and processes help in cutting costs and ensuring revenue resiliency. On an average, corporations are losing the equivalent of 9.2% of annual revenue through weaknesses in their contracting process. These losses arise from a combination of missed savings and cost reduction on the one hand, and lost revenue opportunities on the other. While the average cost of a simple contract has risen by $1900 (38%) in six years, for the most efficient organizations this price has risen by only $300 (9%). - IACCM - IACCM
AGENDA Introduction Revenue Recognition 5 Steps of Revenue Recognition Model Recognizing Revenue with AI powered CLM Revenue Resiliency and Revenue Growth Smarter, timely negotiations for better deals during renewals Effective upselling and cross selling with supporting key data at your disposal Effective realization of contract entitlements Structured payments to meet the required cash flows Increasing net new revenue through quick and efficient contract turnaround Ultria Cost Savings Calculator About Ultria Q & A
Revenue Recognition Two key inquiries for recognizing revenue The central rule of revenue recognition model is to "delineate the exchange of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in return for those products or services." This rule was set up by both the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) and is the foundation of the whole revenue system, answering the two most central inquiries identified with revenue. When may an entity recognize revenue? What amount of revenue may an entity perceive? The entity may recognize revenue when it fulfills its commitments under an agreement by providing goods or services to its client. The entity may perceive the sum to which it hopes to be entitled under the agreement. (Estimates might be required considering this is an "expected" sum.)
Revenue Recognition Five steps of the Revenue Recognition Model Step: 1 Identify the contract with the customer
Revenue Recognition Five steps of the Revenue Recognition Model Step: 1 Step: 2 Identify the contract with the customer Separate performance obligations in the contract
Revenue Recognition Five steps of the Revenue Recognition Model Step: 1 Step: 2 Step: 3 Determine the transaction price which the entity expects to be entitled to Identify the contract with the customer Separate performance obligations in the contract
Revenue Recognition Five steps of the Revenue Recognition Model Step: 1 Step: 2 Step: 3 Step: 4 Determine the transaction price which the entity expects to be entitled to Allocate the transaction price to the individual performance obligation Separate performance obligations in the contract Identify the contract with the customer
Revenue Recognition Five steps of the Revenue Recognition Model Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract
Revenue Recognition An efficient Contract Management Solution can help with the 5 steps of the revenue recognition process by extracting the information of contracts into usable data. Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract CLM with cloud storage and smart search capabilities lets you manage and find all your contracts and documents in a single centralized repository.
Revenue Recognition An efficient Contract Management Solution can help with the 5 steps of the revenue recognition process by extracting the information of contracts into usable data. Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract CLM with cloud storage and smart search capabilities lets you manage and find all your contracts and documents in a single centralized repository. CLM helps connect contract components, milestones, obligations and entitlement data with the power of AI based metadata extraction post- sign off.
Revenue Recognition An efficient Contract Management Solution can help with the 5 steps of the revenue recognition process by extracting the information of contracts into usable data. Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract CLM with cloud storage and smart search capabilities lets you manage and find all your contracts and documents in a single centralized repository. CLM helps connect contract components, milestones, obligations and entitlement data with the power of AI based metadata extraction post- sign off. Simplifies identifying the transaction price with extracted metadata. One can quickly break down the components without spending hours on the document.
Revenue Recognition An efficient Contract Management Solution can help with the 5 steps of the revenue recognition process by extracting the information of contracts into usable data. Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract CLM with cloud storage and smart search capabilities lets you manage and find all your contracts and documents in a single centralized repository. CLM helps connect contract components, milestones, obligations and entitlement data with the power of AI based metadata extraction post- sign off. Simplifies identifying the transaction price with extracted metadata. One can quickly break down the components without spending hours on the document. Aligning obligations and entitlements is core to structured contract authoring.
Revenue Recognition An efficient Contract Management Solution can help with the 5 steps of the revenue recognition process by extracting the information of contracts into usable data. Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Determine the transaction price which the entity expects to be entitled to Recognize revenue as the entity satisfies the performance obligations Allocate the transaction price to the individual performance obligation Identify the contract with the customer Separate performance obligations in the contract CLM with cloud storage and smart search capabilities lets you manage and find all your contracts and documents in a single centralized repository. CLM helps connect contract components, milestones, obligations and entitlement data with the power of AI based metadata extraction post- sign off. CLM Post Award Management, when integrated with the payment/billing systems, tracks obligations and triggers entitlements.. Simplifies identifying the transaction price with extracted metadata. One can quickly break down the components without spending hours on the document. Aligning obligations and entitlements is core to structured contract authoring.
AGENDA Introduction Revenue Recognition 5 Steps of Revenue Recognition Model Recognizing Revenue with AI powered CLM Revenue Resiliency and Revenue Growth Smarter, timely negotiations for better deals during renewals Effective upselling and cross selling with supporting key data at your disposal Effective realization of contract entitlements Structured payments to meet the required cash flows Increasing net new revenue through quick and efficient contract turnaround Ultria Cost Savings Calculator About Ultria Q & A
Revenue Resiliency and Revenue Growth Smarter, timely negotiations for better deals during renewals Effective upselling and cross selling with supporting key data at your disposal Effective realization of contract entitlements Increasing net new revenue through quick and efficient contract turnaround
Smarter, timely Negotiations for better deals during Renewals For a deeper analysis go beyond a simple survey of your revenue teams. Look at contributory revenue a bit closer. Our findings show an average of 4.5% increase in revenue when the sales team had 30 days advance notice of an upcoming renewal Contributory Revenue: % increase in average revenue per contract when teams had advanced renewal notice vs when they DID NOT. Similarly, we saw a 5.3% increase in revenue for contracts renewed when the account team had 45 days advance notice of the upcoming renewal
Smarter, timely Negotiations for better deals during Renewals Effective renewals management using CLM solutions can lead to better contract deals through smart negotiations. Let s take an example: A customer is currently paying $10,000 for an annual subscription. After looking at all the change orders and amendments for services the customer has executed this year, you send the customer a renewal contract which includes a 10% uplift which includes extra services. Customer eagerly signs for a 10% increase in the cost, understanding that prepaying yields net savings everyone is happy..
Smarter, timely Negotiations for better deals during Renewals Effective renewals management using CLM solutions can lead to better contract deals through smart negotiations. Prior to Contract Expiry Start negotiations for extension before the contract expiry date with detailed analysis into the contract performance CONCLUSION Contract negotiations that start late can place a company in an inferior position with constrained time to analyze contract ROI. Milestones and Entitlement Review Review the defined milestones and payment terms to try to accompany changes in price, services, etc. with an extension GETTING AHEAD OF THINGS Timely and accurate notifications put you back in the driver s seat. Reassessment of internal needs Conduct an internal assessment of current and future requirements & ensure they reflect in the contract Market Analysis Conduct external supply market research to check for any significant changes since the contract was first implemented
Effective Upselling and Cross-selling One of the easiest ways to grow contract revenue is through effective cross sell and upsell to existing contract holders Generates Additional Revenue More Efficiently Than Selling to New Customers 90% of customer value for B2B businesses is obtained after the initial sale. Marketo Leads to increased Customer Lifetime Value (CLV) 70-95% of revenue comes from upsells and renewals on average Builds Stronger Customer Relationships How do you leverage your Contract Assets to make this happen?
Effective Upselling and Cross-selling Multiply revenue with key contract data using CLM smart analytics solution: Practice Active Contract Tracking With integrated contract management solution, sales teams can be informed in advance with automated alerts and reminders .Get to Know Your Audience Unified view of data with seamless integration across CLM and CRM platforms is important to develop clear understanding of customer requirements and expectations. Take a Journey-Based Approach Visibility into real, end-to-end customer journeys, past behavior and negotiation history is needed to present the best offer at any given moment Map Your Solution To Customer Journey With real time data such as upcoming renewals, current goods/services, number of users etc., identify how your offerings will help them grow. .
Effective Realization of Contract Entitlements Another example of improved contributory revenue is through effective mapping of contract entitlements: With easy access to customer contracts, accounts teams can take advantage of entitlements With CLM, entitlements from contracts can be mapped to milestones and metrics and the CLM provides reminders, tracking, and threshold triggers to the key stakeholders Contractual entitlements can be monitored throughout contract s operational lifespan Identify gaps between achieved and targeted results and develop measures to close the gaps - improving performance The amount and frequency of missed entitlements may vary, but on an average, we see between 5% to 7% revenue recapture is empowered by post-award compliance management
Increasing Net New Revenue Through Quick and Efficient Contract Turnaround With quicker sales and review cycles, close contracts faster to realize additional revenue: Automation across every stage of contract lifecycle Shortened cycle time for contract authoring, negotiation and approval Maintain centralized, secure storage with search capabilities Define and measure key performance indicators across contracts
Increasing Net New Revenue Through Quick and Efficient Contract Turnaround With quicker sales and review cycles, close contracts faster to realize additional revenue: Accelerated Contract Creation and Approval Automation across every stage of contract lifecycle Quick and easy contract creation using templates and clause Library Shortened cycle time for contract authoring, negotiation and approval Quick reviews through collaborative CLM platform, automated workflows Maintain centralized, secure storage with search capabilities E-signatures for quick sign offs - independent of physical presence Define and measure key performance indicators across contracts
Increasing Net New Revenue Through Quick and Efficient Contract Turnaround With quicker sales and review cycles, close contracts faster to realize additional revenue: Accelerated Contract Creation and Approval Automation across every stage of contract lifecycle Quick and easy contract creation using templates and clause Library Shortened cycle time for contract authoring, negotiation and approval Quick reviews through collaborative CLM platform, automated workflows Maintain centralized, secure storage with search capabilities E-signatures for quick sign offs - independent of physical presence Define and measure key performance indicators across contracts 360-degree view of key contract data Empower your negotiation capabilities Streamline end-to-end lifecycle management Actively track compliance and manage risk
Increasing Net New Revenue Through Quick and Efficient Contract Turnaround With quicker sales and review cycles, close contracts faster to realize additional revenue: Accelerated Contract Creation and Approval Automation across every stage of contract lifecycle Quick and easy contract creation using templates and clause Library Shortened cycle time for contract authoring, negotiation and approval Quick reviews through collaborative CLM platform, automated workflows Maintain centralized, secure storage with search capabilities E-signatures for quick sign offs - independent of physical presence Define and measure key performance indicators across contracts Automated Alerts and Reminders 360-degree view of key contract data Notify any inconsistencies or anomalies in payments or delivery Automate data exchange with key stakeholders Better deals with advanced expiry and renewal notice Empower your negotiation capabilities Streamline end-to-end lifecycle management Actively track compliance and manage risk
Poll Question Q. Which of the these activities would you prioritize implementing an intuitive, AI-driven CLM solution? A. Contract authoring B. Contract reviews and negotiations C. Contract expiries and renewals D. Post-award contract performance monitoring E. Contractual obligations and compliance management F. All of the above
AGENDA Introduction Revenue Recognition 5 Steps of Revenue Recognition Model Recognizing Revenue with AI powered CLM Revenue Resiliency and Revenue Growth Smarter, timely negotiations for better deals during renewals Effective upselling and cross selling with supporting key data at your disposal Effective realization of contract entitlements Structured payments to meet the required cash flows Increasing net new revenue through quick and efficient contract turnaround Ultria Cost Savings Calculator About Ultria Q & A
Ultria AI Powered Solutions Enterprise Contract Lifecycle Management System from Ultria - centralize contract storage, track compliance across multiple dimensions, and reduce creation cycle time. AI Metadata Extraction Analytics Contract Repository Software Secured contract storage, search and compliance tracking
Ultria AI Powered Solutions Contract Authoring Software Accelerated contract creation, negotiation and approval RPA Enabled Portals Intake Enterprise Contract Lifecycle Management System from Ultria - centralize contract storage, track compliance across multiple dimensions, and reduce creation cycle time. AI Metadata Extraction Analytics Contract Repository Software Secured contract storage, search and compliance tracking
Ultria AI Powered Solutions Contract Authoring Software Accelerated contract creation, negotiation and approval Contract Post-Award Analytics Software Optimum contract utilization and contract risk management RPA Enabled Portals Intake AI for Clause Identification Risk Management Enterprise Contract Lifecycle Management System from Ultria - centralize contract storage, track compliance across multiple dimensions, and reduce creation cycle time. AI Metadata Extraction Analytics Contract Repository Software Secured contract storage, search and compliance tracking
Ultria AI Powered Solutions Contract Authoring Software Accelerated contract creation, negotiation and approval Contract Post-Award Analytics Software Optimum contract utilization and contract risk management RPA Enabled Portals Intake AI for Clause Identification Risk Management Enterprise Contract Lifecycle Management System from Ultria - centralize contract storage, track compliance across multiple dimensions, and reduce creation cycle time. AI Metadata Extraction Analytics Orbit for Analytics And Migration Contract Repository Software Secured contract storage, search and compliance tracking Orbit Artificial Intelligence capabilities for metadata extraction and analysis / migration of legacy or external contracts. Also embedded within Ultria CLM across contract lifecycle
Ultria Orbit Ultria Intelligence capabilities, helping you streamline workflows across your through timely suggestions, diagnosis, and predictions for error-free and dynamic contracts. Orbit personifies Ultria s Artificial contract lifecycle, Orbit helps you navigate contracts with Speed & Control using Artificial Intelligence Increase visibility Reduce contract cycles Lower compliance risk With Applied AI !
June 12th, 2020 Q&A THANK YOU Carnegie Center, Suite 321, Princeton, NJ 08540 +1 609 799 5665 info@ultria.com
Join Us Next Time Session 1: A Business Case for Contract Management Software: Extending savings and ROI May 29th, 2020 | 11 AM ET Session 2: ROI for Revenue Multiply contract revenue with AI- powered CLM June 12th, 2020 | 11 AM ET Presented by: Arthur Raguette, Co-founder & EVP, Ultria Session 3: It s about the economy Cost Savings how to Leverage AI-powered CLM June 26th, 2020 | 11 AM ET
