Content and Context Convergence in the Capture Process

1. Content and Context Convergence in the Capture Process Grant Laing Product Development Manager INPUT Session 609 Wednesday, April 27, 2004 10:30 – 11:30 a.m. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

2. Agenda • Introduction • The Capture Process • Challenges and Problems • The “Capture Maturity Model” • Business Impact of Content-Context Integration • Outlook for Content-Context Integration • Conclusions and Recommendations NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

3. Introduction • Complex sales require an organized capture management approach • Capture management is no longer just a human process • Successful capture management is best achieved through integration of content and software NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

4. What is Capture Management? Sell Side Capture Relationship (Contract) Buy Side NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

5. Why Does Capture Management Exist? • As size and complexity of a sales transaction grows: • Bid and proposal costs grow • Number of stakeholders grows • Level of communication and collaboration required grows • Risk grows NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

6. Capture Process Evolution Opportunity Size and Complexity NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

7. The Capture Process and Activities NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

8. Key Risks and Challenges in Capture Management • Knowledge drain • Inadequate process • Long sales cycle • Challenges in collaboration and communication • Opportunity costs and wasted B&P dollars NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

9. Knowledge Drain • Turnover in sales and business development • Undocumented capture process • Stove-piped knowledge • New systems rarely incorporate knowledge from replaced systems NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

10. Inadequate Process • Only the largest companies have a documented capture process • When undocumented, employee selects the process, not the company • Little or no technology to support or reinforce the process • Low executive visibility; lack of robust reporting NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

11. Long Sales Cycle • Public sector sales cycle is an average 180 days (6 months) • Turnover regularly occurs during the cycle • Environmental factors cause shifts in the capture process • Many activities must be completed to ensure solid results NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

12. Challenges in Collaboration and Communication • As opportunity grows, number of people involved in sale grows • Both internally and externally (partners and customers) • Each have different roles and information needs • All need to share information and work together • Collaboration and communication become as important as intelligence gathering NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

13. Opportunity Costs and Wasted B&P Dollars • Most procurements are multi-year, multi-million dollar efforts • Average size is over $50 million • Typical duration is 5 years • Potential for big wins, but also big losses • Effective pre-sale activities are key • Lots of money and time invested in bidding NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

14. The Capture Maturity ModelContext Complements Content • Software enables a more robust and mature process • Content enables a more informed decision • As company’s process matures: • Win rate increases • B&P operations become more efficient • Enables a company to bid on larger, more complex projects -- to Scale! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

15. The Capture Maturity ModelContext Complements Content Technology Maturity NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

16. Capture Internal Knowledge External Knowledge Process Technology Foundations of Capture NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

17. Solutions – Context/Content Convergence • Knowledge Drain • Technology: • Allows collaboration and promotes storage of critical information • Removes turnover as a factor by creating data warehouses independent of the individual • Facilitates the capture of data from both internal and external sources (partners) • Inadequate Process • Technology: • Can reinforce a defined process • Puts management controls in place to force compliance • Ensures a uniform capture approach NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

18. Solutions – Context/Content Convergence (cont.) • Long Sales Cycle • Technology mitigates risk from: • High turnover • Environmental changes • Duplication of effort • Challenges in collaboration and communication • Collaboration and data sharing is enabled • Activities can be worked in parallel, reducing cycle time • Allows partners or consultants to interface (extranet) NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

19. Solutions – Context/Content Convergence (cont.) • Opportunity costs and wasted B&P dollars • Technology enables effective planning and budgeting to maximize the effectiveness of corporate resources • Long term, the win rate increases NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

20. Solutions - Overall • Automated Capture • Allows for collaboration and data sharing, including external parties pertinent to the bid • Maps out a capture plan, including resource needs • Enables the sales and business development staff to remain engaged with prospects • Ensures accurate and credible data is collected • Provides detailed reporting at any step in the process • Capture KM • More evolved than just automated capture • Includes data warehousing, knowledge-bases to employ lessons learned • Includes fully-functional extranet capability – granting access but maintaining controls NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

21. Outlook – Long Term • Today, distinct solution domains: • For Sellers • Island solutions for partner organizations • For Buyers • Isolated ecosystems that are not integrated • The natural convergence of these domains, in an open market can deliver: • Transparency • Shorter cycles • More efficient processes NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

22. Conclusions • Capture can not succeed in stove-pipes • Capture is a set of activities; not phases – must be done in parallel; not series • Technology enables; does not just support – keeps individuals focused on the goal • Collaboration is key to success NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

23. Conclusions (cont.) • Automated Capture Management technology has reached maturity • Automated Capture Management delivers: • Predictability • Control • Efficiencies • Management Oversight NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

24. Recommendations • Companies must create the knowledge-base • Capture Management Systems in place today also add value in the long-term • Choose solutions that facilitate coherent analysis of at least 5 years of data • Plan for recompete business • Build a set of lessons learned • Content in Context is the true value criterion • Look for the highest quality of Opportunity Intelligence combined with the most innovative delivery applications • Be cognizant of all factors influencing successful capture: • External knowledge • Internal knowledge • Process • Technology NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”