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The Case

A Case Study – Migrating to Effective Contracts Management Luis Huix Global Contracts Ops Group Mgr. The Case. The Case: Background.

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The Case

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  1. A Case Study – Migrating to Effective Contracts Management Luis Huix Global Contracts Ops Group Mgr

  2. The Case

  3. The Case: Background • The pre-systems approach • Each ‘their own’ • Still some manual processes • Still paper-based • No central repository • No control over documents and processes • Development of eCommerce - e Procurement • e Sourcing/RFP • e Contracts • e Travel • e Assets IACCM European Conference 2003

  4. The Case: Why Invest Now • Why invest in e-Contracts and automate Contracts Management? • Contracts central to many other processes • Streamline operations, reduce manual processes • Provide better response and visibility to stakeholders IACCM European Conference 2003

  5. About Hewlett-Packard

  6. HP Overview: Did you know? • HP is the industry's largest supply chain, extending to 10 percent of all retail shelf space. • Every day, more than 167 million pictures are taken using HP cameras. • HP is the No. 1 consumer IT company in the world, the No.1 supplier to small and medium-size businesses and a leader in enterprise computing, with market leadership positions in virtually every technology category and region in which we compete. • HP occupies 1,347 buildings at 939 sites in 70 countries. IACCM European Conference 2003

  7. HP Overview: Did you know? • More than 100 million mobile subscribers worldwide depend on HP's prepaid billing solutions. • Network operators in 32 countries use HP technology to protect more than 200 million customers. • HP’s employee population includes 50 percent of its employees in the Americas, 29 percent in EMEA and 21 percent in Asia Pacific. • HP is a leading technology company in some of the world’s fastest-growing IT markets, including Russia, China, India, Brazil, Mexico, Eastern Europe and the Middle East. IACCM European Conference 2003

  8. HP Overview: Did you know? • HP has more than 100 million consumer customers, and we touch 45 million consumers a month. • HP ranked fifth on the National Association for Female Executives' (NAFE) annual list of the Top 30 Companies for Executive Women. NAFE is the largest women's professional association and the largest women business owners' org in USA. • HP is one of the leading suppliers of technology for small and medium-size businesses, by Gartner, Inc., in its first vendor rating of the most powerful global technology providers to SMBs. IACCM European Conference 2003

  9. HP Overview: Did you know? • HP introduced more than 665 new products in FY03. • By bundling large PC orders in bulk packages, we reduced waste by 86 percent in 2003. • January 1, 2003, marked the 65-year anniversary of the founding of HP. • When the merger integration began, it took HP nearly five weeks to add a new supply chain partner. Today it takes us less than two hours. • HP has annual revenues in Europe of nearly $30 Bill,almost 75 percent of Dell’s total worldwide revenue. IACCM European Conference 2003

  10. HP - IPG • In 2003, HP sold 43 million products – excluding supplies -- to consumers. • Prices for the HP DeskJet printer series have dropped 75 percent since the series was launched in 1991. • IPG has some 7,000 patents, and more than 3,000 of those are in supplies. • In Q1 FY04, Imaging and Printing had record first-quarter revenues and profit. • In Q1 FY04, the Imaging and Printing Group shipped 14.4 million hardware units, or more than 1 million units a week. We now have shipped more than 300 million printers. Dell has shipped 2 million. IACCM European Conference 2003

  11. HP - PSG • According to 2003 shipment figures released by IDC, HP continued its recent market momentum by regaining the top global PC spot in the fourth qtr. • Although Dell claims that international expansion is their next big thing, based on the latest market share data we have (for calendar quarter ending December) HP gained nearly one point of share in PCs in Europe and more than two points of share in PC servers (both year-over-year). This allowed us to further extend our lead on Dell in these markets. • In Q1 FY04, and for the second quarter in a row, we grew both desktop and notebook revenue almost twice as fast as Dell while continuing to improve our profitability. IACCM European Conference 2003

  12. HP - ESG • HP is No. 1 in fault-tolerant systems (systems that always continue to operate without any interruption or loss of data - despite failures in hardware or system software). • HP systems make up 57 of the top 100 high-end computing installations in China. • In 2003, HP Linux services and solutions business grew 40 percent. • In Q1 FY04, the Enterprise Systems Group had an operating profit of $108 million, a year-over-year improvement of $190 million. IACCM European Conference 2003

  13. HP - ESG • The HP ProLiant Servers set a world record Transaction Processing Council TPC-C benchmark with the lowest price-to-performance ratio of $1.91 per-tpmC (transactions per minute), marking the first time that a server has broken the $2 per-tpmC barrier. The HP ProLiant ML350 price-to-performance ratio beat all competing platform results, including those from Dell and IBM. • Sales of market-leading HP Proliant servers surpassed 8 million servers in Q1 – the product’s 10th anniversary. IACCM European Conference 2003

  14. HP - HPS • Managed Services posted revenue of 27 percent year-over-year – three times the rate of growth, outpacing IBM and EDS. • HP is the No. 3 IT Services company in the world. • HP is No. 1 in mission-critical services. • HP is No. 1 in service across open IT environments. • HP is No. 1 in enterprise-ready Microsoft services. IACCM European Conference 2003

  15. HP – Customer Respect Posted April 7, 2004International research and consulting firm The Customer Respect Group ranked HP No. 1 overall with a score of 9.5 out of 10 on its annual Customer Respect Index (CRI). Designed to judge how corporations treat their customers online, the CRI ranking of 61 high-tech companies was based on a number of factors, including simplicity, privacy, transparency and responsiveness. IACCM European Conference 2003

  16. The Sales & MarketingContracts Group: Global ContractsOperations

  17. HP - Global Contracts Operations about global contracts operations purpose is to provide added/value expertise, and to lead in the business design, development, implementation, and maintenance for global usage, regional localization and leverage of: • terms and conditions documents • sales & marketing contract programs • sales & marketing partners contract programs • agreement templates & exhibits • contracting processes • contracts tools IACCM European Conference 2003

  18. The Total Contracts Solution (TCS) Project

  19. HP - Total Contracts Solution Purpose- To establish better quality & consistency in sales & marketing contracts- To reduce the global cost of managing these contracts - To ensure stronger controls and visibility into hp’s overall worldwide contracting activities Objectives - One centralized contracts management approach - To upgrade hp overall contracts mgmt processes - To ensure addressing regulatory/reporting compliance - To leverage use of new contracts management solution IACCM European Conference 2003

  20. HP - Total Contracts Solution the project steps included • Requests for Information • Request for firm fixed price proposal • Identification of mandatory / optional requirements • Evaluation of potential solutions • Evaluation of potential vendor/partners • Installation and testing of vendor/partner software • Business workshops for screen configurations desired • Testing of configurations • Testing of regional and localization processes • Assignment of super users • Overall training program • Production go-live, and start of support • Obsolescence of sales & marketing contracts systems IACCM European Conference 2003

  21. HP - Total Contracts Solution the project requirements included • A centralized global approach • Regional localization and local language capability • Very easy access to contracts and related docs • Extensive document creation and management capabilities • Ability to include product lists/discount information in contracts • Extensive workflow support • Event management with user notifications • Advanced management functions including risk, compliance, and performance tracking IACCM European Conference 2003

  22. HP - TotalContracts Solution the search and evaluation of the partner/vendors proposed solutions was based on many elements- The quality product that met hp’s requirements - Total quality service and responsiveness- An available ‘off-the-shelf’ product- Fully comprehensive competitive bid- Vendor/Partner good track record- Product functionality upgrading IACCM European Conference 2003

  23. HP – Total Contracts Solution The solution choosen . . .- Met our defined requirements - Most robust and comprehensive functionality- Available ‘off-the-shelf’ product - Very competitive bid - Good track record/references- Flexible company to work with - Win-win and ‘customer first’ approach IACCM European Conference 2003

  24. The Challenges

  25. HP - Total Contracts Solution assuring success from the start pulling together a global ‘contracts ‘+ community- corporate/regional/local representation on the team - solid executive support at corporate and regional levels - regional users hands-on/early testing - understand the need to recognize business cultural diversity and working strategies within the company - constant and effective communications to all stakeholders - win-win relationship with all stakeholders IACCM European Conference 2003

  26. HP - Total Contracts Solution customize the ‘off-the-shelf’ software, or use as-is? - NO hp customization - Implemented the software ‘as-is’, constantly upgrading our contracts processes - Choose a product that is flexible and configurable while meeting our requirements NOT ALL requirements can be met… - Continuous work with Upside to incorporate HP’s future functionality into Upside’s next release  NO hp customization IACCM European Conference 2003

  27. HP – Total Contracts Solution reaping the benefitsdid the project go as expected?YES - the project is on time and under budget - demonstrating early value to stakeholders through increased visibility and access to contracts - seeing early value in various geographies through better contract controls and standardization - seeing expansion of the initiative to cover other contract management needs across hp IACCM European Conference 2003

  28. HP - Total Contracts Solution Total Contracts Solution (TCS) - contracts management solution implementation project success factors hp’s success in deployment can be attributed to • detailed focus on the objectives • involvement of all stakeholders – early and very often • significant backing of executive management • buy-in from all sales & marketing contracts user groups • consultation with external parties • active management of project scope and schedule • intense training and testing • team flexibility to resolve issues as they arise • Upside Software commitment and dedication to continuously help meet project objectives IACCM European Conference 2003

  29. The Future: ‘Leveraging TCSacross to all HP’

  30. For questions and more info:luis.huix@hp.comFor more about HP:www.hp.com

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