Presented by: David W. Puckett, Founder & Principal of Rezoud, Inc .

1. Cyber Week 2012 Presented by: David W. Puckett, Founder & Principal of Rezoud, Inc.

2. Presentation Outline What is ODR, or is it ADR Online? Elements of an ODR System, Research Trends & Our Survey 1 Business Transformation Model, Technology Acceptance Curve, Consulting Life-Cycle Implementation Processes 2 Make a case for ODR Adoption - Case-Study: Customer Relationship Management (CRM) 3 ODR Evolution Projections, SaaS Model & ODR Case Study Examples 4 Additional Considerations 5 Needed Changes & Considerations 6 Questions and Discussion 7

3. What is it? ADR Online or ODR? 4th Party or Technology Layer in Dispute Resolution ODR should not be associated only with Internet based Video Conferencing for Mediations & Arbitration! On-Line ADR (oADR) OR On-Line Dispute Resolution (ODR) Electronic Dispute Resolution (eDR) Electronic Dispute Resolution (eDR) Internet Dispute Resolution (iDR) We advocate you call it what you want. We see it as a technology layer that should be leveraged to resolve disputes in a timely, efficient, positive, cost reduction in an effort to better serve your clients and improve your corporate reputation Source – The term 4th Party related to ODR, Ethan Katsh, 2001.

4. Elements of an (ODR)System Neutral Registration & Marketing – central place to promote and find neutrals Promotion (Social Network for Neutrals nationally) 1 Neutral Selection - (by both parties need to find neutral-neutrals) a process of selection is the biggest industry challenge today related to massive or mainstream acceptance 2 Traditional Case Management - (after Neutral is selected (they take control of the case) and you must have traditional legal case management functions including contact management, time tracking and billing 3 Data & Case Information Repository - Contracts, Background of Parties, Discovery and all documentation related to the case 4 Communication System and Log - Scheduling, email, instant messaging and recording of all communication related to the case and the mediation/arbitration process. 5 Case/Business Intelligence - a modern system should have business intelligence capabilities or linkage to precedence history of settlement of similar cases and even advance algorithms for helping suggest solutions 6 Actual Mediation - On-Line via Video Conferencing or Traditional In-Person including case disposition and settlement recording/filing functionality 7

5. Current ODR Research & Trends Source:On-Line Dispute Resolution: Theory & Practice, Eleven International Publishing, 2012

6. Our Survey Template Over the summer we developed a collaborative ADR/ODR survey, that we intent to have performed annually for the next 10+ years. The goal is to survey key C-Level Executives, Government/Court System officials on their attitudes, awareness of ADR & ODR and it uses in their respective businesses and courts We are seeking industry partners, universities and survey participants, and anyone who participates will have access to the results of the survey. The results will not be used for marketing purposes.

7. Business Transformation Model What are the barriers for ADR/ODR? Culture & Governance is the largest obstacle Processes and Human Factors follow The Technology is actually the easist part The standard model of technology adoption has to start with changing Culture and Governance. 95+% of all business contracts have Mediation & Arbitration clauses, however the challenge remains, what actually happens internally when a conflict arises? Graphic Source: AlignedManagement.com

8. Standard Technology Adoption Curve Mapped to ODR Industry 2000-2010 3 Innovation Phase – term ODR emerges, video compression improves and SaaS emerges in general technology 1 2010-2015 Today Early Adopters - Enterprise capable & SaaS architected solutions merge from small start-up ISV’s. Technology standards and improvements emerge. Expect acquisitions by major ISV’s, emergence of consulting industry We are here 2 2016-Future Early Majority – Tier 1 Consulting and leading Industry ISV’s in the market. Companies are issuing RFP’s and mass adoption by the Fortune 500 & Governments Graphic Source: FreeLancer Consulting

9. Standard Consulting Life-Cycle steps: The single biggest reason for a technology project failure is the lack of Executive Sponsorship and a strong company wide mandate to embrace the new technology DEFINE OBJECTIVES – define issues, opportunities, apply measurements and metrics, define what success would be (money saved, process improvement opportunities, new services & new markets) 1 ANALYSIS – document current business processes, observe, look for opportunities for improvement, define risks and establish a base-line. Remember technology projects require corporate cultural changes! 2 DESIGN – it begins with design of new business processes, workflow, developing detail functional and technical requirements, data modeling and database design. You must have detailed requirements before moving forward! 3 REQUEST FOR PROPOSAL (RFP) & VENDOR SELECTION – of course sometimes the 3 previous steps result in the project being an internal IT development project, but in most cases it involves an outside vendor(s). This is a very important step and requires multi-considerations 4 IMPLEMENT, ACTIVATE & INTERGRATE – SaaS software requires less physical implementation but often requires integration with other systems. Very important to know your user count and types before entering a SaaS contract 5 EVALUTE –following implementation you need to review and evaluate against your original requirements and baseline. You also need to do a risk analysis 6 MAINTAIN & UPGRADE – train, train and train, likely have to make new job descriptions for hiring and train all new hires. Once a technology investment is made, you have to upgrade every few years 7

10. Comparative Technology Adoption – Analogy Customer Relationship Management (CRM) & Online Dispute Resolution (ODR)

11. Customer Relationship Management Technology Adoption CRM Explodes, SaaS CRM arrives, Salesforce.com, many industry experts predicted it would not be adopted, they were WRONG! Micro Computers were introduced, customer information was moved to various remote systems and 2nd generation contact managers. There was little or no intergation with sales history or inventory Introduction of CRM software, adoption, consoldation, mass adoption & systems moved to intergate into ERP systems Custumer Relationship were manual processes and at best recorded in ledgers. Personal relationships were primarly interactions in business 6 Mainframe Computers were introduction (timeshare applications). Client information and sales data were stored in various systems, early contact management evolves The citizens of early civilizations likely invented CRM, when they keep records of sales transitions on tablets! Corporate Adoption of CRM 5 Saas CRM everywhere, further extends to devices including moblie devices 4 1 2 3 AD - 1970 1980 - 1990 1990 - 2000 1960 - 1980 2000 - 2010 2010 - Future

12. ADR/ODR Technology Adoption New ODR solutions come to market, new industry standards are developed, video compression increases video conferencing and ODR growth starts! The term ODR was introduced, ODR applications were built, Video Conferencing comes to PC’s. The use of ADR methods continued to expand, more attorneys and law firms began offering mediation services Futher advancement in ADR methodologies, more professional standards and more wide spread use in business, consumers and the courts. Internet use started and exploded Mediation and other forms of Dispute Resolution have been around in various forms across most socities throughout history Most agree modern ADR started to take form as a result of the of the Civil Right movements and mediation and arbiratation methodologies were formed and began to be taught and used in the US 6 Early citizens likely used ADR to resolve disputes, did not have today’s attorneys! Expect large ISV’s to enter, along with Tier 1 Consultacies, economics will drive further growth by Fortune 500 and the Courts. everywhere, further extends & on mobile devices Corporate Adoption of ADR/ODR 5 4 1 2 3 AD - 1960 1990 - 2000 2000 - 2010 1960 – 1990 2010 - 2015 2015 - Future

13. ODR Evolution Projections ODR is a subset of Dispute Resolution and Alternative Dispute Resolution (ADR) and primarily involves allowing users to leverage technology to resolve disputes using traditional ADR methodologies like Mediation, Arbitration and Standard & Principled Negotiation Components Obstacles • Flexible components for resovling all types of disputes (C2C, P2P (marital or other),B2C, B2B) • On-Line Automated or Assisted Aribration, Mediation, Facilitation or Restorative Justice • Access and selecting Neutrals • Scheduling, Case Discovery Repository • Time Keeping and Billing • Marketing Services • Case Precedent Intelligence • Case Information with Intelligent Agorthrims • Integration with Social Media • Integration to Accounting System and Court Systems • Deployment Strategy: • Processes, People and Technology • Challenge of change of how we have done it for 2+ centuries, centered around legal industry processes • Lack of Senior Management Sponsorship (no RFP’s on the street) • Lack of Upper/Middle/Departmental Managers ADR process knowledge • Lack of Industry Leading ISV’s offering solutions • Lack of Process/Technology standards • Lack of Tier-1 Consultancies offering ODR related Consulting to generate understanding, value justifications and desire for ODR Solutions • Implementation & Adoption: • Not likely to begin until the items above are addressed, and then follow the same issues as CRM Adoption 1 ODR was born out of a synergy between ADR and Information & Communication Technology (ICT) which allows users to harness the power and reach of the internet and communication technologies to resolve disputes

14. Expect ODR Solutions to be SaaS SaaS Highlights 3 Ready Made, Pay-as-you-Go, access immediately, pay-by-user, easy deployment 1 No server hardware investment required, device agnostic, and regular S/W upgrade cycles 2 Lower Cost overall, but ODR has other obstacles for adoption, but SaaS will be the model Graphic Source: Rezoud Corporation, 2012

15. ODR Case Studies Examples: Technology Adoption Challenges: • Real Estate Industry – Realtor.com • Car Industry - AutoNation Corporation ODR Industry Adoption Examples: • Major Airline - Large Airline • Cereal Company - Large Food Packager • Foreclosure Example - Graduate School Project

16. Foreclosure 10-Step Process Example

17. Additional Considerations • We need to stop only associating ODR with only internet video conferencing for mediations and arbitrations, it is far more dimensional. • eBay and PayPal are now handling over sixty million disputes annually, according to Ethan Katsh, “over 80% of the disputes are satisfactorily resolved through automated mechanism without a need for any human involvement:” (Katsh 2012) • Dispute Resolution today, is not placing phone number or dispute/complaint buttons, in most cases that only increases complaints. eRetailers like Amazon, “can respond to grievances by technology and, by doing so, prevent a grievance from evolving into a dispute” (Katsh 2012) • We are going to see vast technology improvements in the next few years especially in video compression, internet speed, mobility and this will fuel the growth of ODR • Typical technology deployments like ODR have to follow the standard technology adoptions models as presented above, they take 12-24 months at least, so consider starting now?

18. Needed changes & considerations…. Corporate/Commercial ODR Legal/ADR Industry • ADR methods training and mandate by Top C-Level Executives, including middle management training • Tier-1 Consultancies need to enter space to push ODR • Aquistion and investment in ODR technology by top tier technology vendors • Consulting engagement in Fortune 2000 to build desire and justification • Not current top priority of CIO’s, has to be sold from an economic value and process improvement justification • Additionally Technology Standards required • The is no awarness of ODR in business today, and it is going to require massive investment and a brand • Court Jurisditions need to consider dispute resolution ”a basic public service” or requirement, thus then embrace ODR as a lower cost mechinsm for delivery of this public service • Contrained Court Budget, backlogged dockets will be the key driver toward ODR in the coming years • ODR lacks financing and uniform procedures and prosedures across juristictions we can have hundreds of individual ODR systems • Most courts today, allow electronic case filings & case management, so the natural next step would be ODR to reduce costs • The 15” laptop monitor, with multiple parties in a video conference is not consider good, Theatre for attorney 1

19. Questions & Discussion

20. Contract Information David W. Puckett, Rezoud Corporation Email: dpuckett@rezoud.com Phone: 813.727.3583 Skype: david.w.puckett Twitter: davepuckett Website: www.rezoud.com