pulse2014 1074

Proprietary & Confidential 8/9/11

Service Contracts in Maximo “A study of contract management integration with Emptoris”

Presented by: DeeDee Washington – Maximo Business Systems Analyst, Supply Chain Services Norris Minnis – Contract Agent, Supply Chain Services


• Headquartered in Tucker, GA • Established in 1974 • Owned by and serve its 38 EMCs • One of the nation's largest power

supply cooperatives • Has more than $8 billion in assets • Provide electricity to over 4.1 million

Georgians • Portfolio includes natural gas,

hydroelectric, coal and nuclear generating plants

• Combined capacity of ~7,059 MWH and purchased power

Our Company


Maximo Configuration

Hartwell Energy Facility Doyle Generating Plant

Sewell Creek Energy Facility

Hawk Road Energy Facility

Thomas A. Smith Plant OPC Headquarters

Smarr Energy Facility Talbot Energy Facility

Rocky Mountain Hydroelectric Plant

Single Organization - Multi-Site (9) - ~165 End Users


Maximo Evolution

Year Major Project/Initiative 2003 Initial Maximo 5.1 Implementation (replaces MPAC)

2004 Maximo 5.2.2 Upgrade

2005 Labor Reporting Lawson Payroll Interface

2006 Maximo 5.2.5 Patch Add-on Desktop Requisition app Maximo 5.2.6 Patch

2007 Maximo 6.2.1 Upgrade

2008 Contracts Assessment

2009 Contracts Implementation Maximo Integration – Hawk Road Plant

2010 Maximo Integration – Hartwell Plant Add-on Visual Planner

2011 Maximo Integration – Doyle Plant

2012 Maximo Integration – T.A. Smith Plant

2013 Maximo v7.5.0.4 Upgrade Add-On IBM Scheduler and IBM Calibration Add-On Interloc Informer and Interloc Mailer


Core Business Usage

MODULE APPLICATION Assets Assets, Asset Templates, Locations, Failure

Codes Contracts Terms and Conditions, Master Contracts*,

Purchase Contracts* Financial Chart of Accounts

Inventory Inventory, Inventory Usage, Shipment Receiving, Condition Codes, Item Master*, Service Items, Storerooms

Planning Job Plans*, Routes

Preventive Maintenance

Preventive Maintenance

Purchasing Company Master*, Companies, Purchase Requisitions*, Purchase Orders*, Request for Quotations, Receiving*, Invoices*

Resources Crafts, Labor, People, Person Groups, Calendars

Self Service/Service Desk

Desktop Requisitions, Service Requests* * Workflow enabled


Service Contracts Process - Creation


Service Contracts Process - Payment


Insurance Administration

• Company Insurance requirements documentation • New Insurance application • Worker’s Compensation notation • Insurance Expiration escalation


GSA Setup – T&Cs

• Communication Templates • Legal requirement security and enforcement

• Standard T&Cs auto populated • Merge fields used


GSA Setup - Document

Maximo Strengths: - Merge fields - Document formatting - Dynamic Page

Breaking Emptoris Strengths: - Process Integration - Supplier

Management - Sourcing - Contract

Management


GSA Setup – Document

Maximo Strengths: - Based on Company Insurance & GSA Properties Emptoris Strengths: - Supplier Life cycle Mgmt - Spend Analysis - Compliance Mgmt


Task Release Creation – T&Cs

• Communication Templates • Merge fields used


Task Release Creation - Document

Maximo Strengths: - Merge fields - Document formatting Emptoris Strengths: - Vendor Management - Process Integration


Key Benefits

• Automated Process • Time Improvements • Enforceable Security • Improved Controls • Enhanced Communications • Process Transparency


Contracts Metrics


Next Steps

• eSourcing Assessment • Scheduled Invoice Payments • Labor Rate Contracts • Different Contract Types • Extension Beyond Plant Operations

© 2013 IBM Corporation

Maximo Enrichment with Emptoris Solutions K Merrill February 25, 2014

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Maximo with Emptoris Enabling Organization’s To:

Refine Maximo Strategy ~ Granular Visibility

Identify Volatility & Maximize Predictability

Support Maximo Users by Enriching the Functionality Internally & Externally

Enhance the Corporate Backbone Investment by Improving Compliance & Mitigating Risk Gaps

1

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Maximize and lock in savings with advanced sourcing and enterprise contract management capabilities

Analyze enterprise spend across systems and effectively source and manage complex categories

Strategic Supply Management Goals Maximo with Emptoris

Effectively manage supplier information, relationships and processes to ensure compliance and mitigate risk

Enterprise and Category Spend Management Source to Contract Supplier Management,

Risk and Compliance

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Leading Utility Company Integrated Maximo and Emptoris

Create P/O’s

Demand Mgt

Requisitions

Requisitions eSourcing

Contract Management

Competitive Bidding

Workflow: RFI RFP

Auction

Decision Support

Contract Negotiation Workflow

Master Clause library

Supplier Profiles

Event Awards

MSF

T - B

izTa

lk S

erve

r

Browz Suppliers of Record

Adds, updates

Bids for POs

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360 degree supplier view, including Maximo services suppliers, for effective supplier management and risk management

Supplier Lifecycle

Management Manage Supplier

Performance

Contracts Management

Automate Process Improve Control

Maximo Continued

Compliance & Risk

Mitigation

Standardized, best practices SOW – Contract creation & optimization & visibility that responds to business needs

‘True’ Asset Management Complete management of Maximo services SOW & external resources, including large project management

Maximo Compliance &

Risk

Spend Analytics Mining Maximo data to

detect leakage

Sourcing Improve Productivity

& Build Self-Reliance

Flexible Marrying Maximo & Emptoris

Services Procurement

Centralized SOW & External Resource

Management

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Plan

+ +

Corporate Governance and Compliance =

Improve Productivity

Increase Savings

Mitigate

Risk

Program & Request Management

Centralized Data Management

360 Dashboard Reporting and Visibility

Negotiate Manage

Source Qualify Suppliers

Analyze Spend Contract Execute

Orders

Evaluate Supplier Risk & Perf.

Track Compliance

IBM Emptoris Strategic Supply Management

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Supplier Qualification Supplier Discovery Web based, logic driven supplier registration Detailed category assessments Automated approval workflow

Value Maintain one portal for all suppliers

Quickly identify and onboard new suppliers

Enforce compliance with corporate standards

Conduct market analysis to find the best suppliers

IBM Emptoris Strategic Supply Management Supplier Qualification



Orders


Track Compliance

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Sourcing Capabilities Buyer Survey, RFI, RFQ, RFP, Auctions Best Practice Category Templates Automated scoring & ranking Easy to use online and offline bidding interface What-if bid comparison & savings analysis reporting Value Streamline RFx creation – run more events

Analyze RFx results faster and more efficiently

Track savings by category, business unit and RFx type across organization

IBM Emptoris Strategic Supply Management Sourcing



Orders


Track Compliance

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IBM Emptoris Strategic Supply Management Contract Management


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Contract Management Logic driven “Interview Wizards” Standard Template library & Pre-Approved clauses MS Word Integration with real-time data sync Conditional and clause level workflows Proactive alerts and automatic task creation Value Reduce contract cycle times

Identify and eliminate process bottlenecks

Realize negotiated benefits to capture more savings



Orders


Track Compliance

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Contract Creation

Microsoft Word

Workflow

Alerts & Renewals

Searching & Analytics

The Solution to Solve Key Issues Maximo & IBM Emptoris Contract Lifecycle Management

IBM Confidential 11 of 42

Complete management

dashboard Contract status overview Risk assessment Search functionality

Renewing notification Termination alert

Approval workflows for different scenarios

Execution of approvals Approvals on the Go

Creation by Template Creation by Wizard Creation by RFx

Contract authoring

process

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IBM Emptoris Strategic Supply Management Services Procurement

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Services Procurement Automate order creation from contract Negotiated prices utilized with contract match Contract terms enforced at line level Collaborate with vendors at the order/project level Automatic invoice creation

Value Standardize Master and Work Order creation

Streamline process to reduce cycle time

Enforce compliance to contracted rates to improve savings




Orders


Track Compliance

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IBM Emptoris Strategic Supply Management Spend Analysis




Orders


Track Compliance

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Spend Analysis Superior data enrichment with guaranteed accuracy Cognos powered dashboard views and reporting Analytics to source and rationalize supply case Compliance Management to track contracted vs. actual

Value Increase global spend visibility

Drive more business to preferred suppliers

Improve compliance & reduce leakage spend

Identify more opportunities for savings and rationalization

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IBM Emptoris Strategic Supply Management Virtual Supply Master


Value

Single integrated source of procurement data

Improve information sharing between systems

Improve visibility of relationships between spend, suppliers, categories, organizations

Virtual Supply Master (VSM) Centralized data management for supplier, category, organization and user data across the suite Supplier master links ERP, procurement and supplier entered data into a single repository Enhance supplier data from external 3rd party sources

Virtual Supply Master – Centralized Data Management



Orders


Track Compliance

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e360 Cognos Dashboards and Reporting Cross suite analytics

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IBM Confidential

Graphs: - Insightful - Crisp - Drillable

Tables: - Detailed - Drillable

Drilling into next level detail

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IBM Confidential

Contract Analysis - Visibility into off contract vendors

Graphs: -Spend by category -Spend by contract status

Drill in to focus on opportunity: -category -region -performance -

31 31

IBM Confidential 31

Highlight spend by vendor to prioritize

Understand vendor performance Drill into vendor performance Link to Contract


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Maximo and Emptoris: An update from the lab February 2014

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Please note:

IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

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Where to next?

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Maximo Supply Chain - Dedicated to delivering value

Maximo 3.x – 4.x – Refinement of basic supply chain backbone

•Item/Inventory Management •Purchasing •‘Basic’ purchase agreement functionality

Maximo 5.x – Java Internet Architecture

•‘Web-enabled’ Supply Chain Maximo 6.x

– Refinement of Multi-site/Multi-org functionality: •Item set

– Robust feature enhancements: •Materials Management:

– Condition Codes – Item Kits – Measure Unit Conversion

•Full-featured contract usage functionality. Maximo 7.1.x

– Incremental feature enhancements: •Item Status •Item Images

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Maximo 7.5 Supply Chain Materials Management

– Item Master – Add ‘true’ stocked/non-stocked item support – Inventory Usage – Add a ‘statusable’ document for issuing and transferring items – Issues and Transfers – Transfer via Shipment – Issues and Transfers – Hard/Soft material reservations – Inventory Costing Enhancements (LIFO, FIFO, Consignment)

Purchasing – PO Revisioning – PR/PO/RFQ/RECEIPTS/INVOICE – View entire supply chain – Item Master, PO – Tax exempt items – RFQ: Allow item comparison in base currency

Receiving – Receipt Tolerances – Add functionality for returning received services – Support for voiding a receipt. (ie: cancelling a receipt line) – Returning Assets - User can select which assets to return, check for Move and Cost consistency

Invoicing – Ability to create invoice reversals – Centralized Invoice (single invoice for PO’s in different sites) – Add functionality for setting the date to derive the financial period – Default Table for Invoice Lines

Chart of Accounts – Date ranges for account validity – Different GL account structures per Organization

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Looking Ahead - …time to think outside ‘the box’ Maximo Supply Chain Framework

– ‘Complimentary’ to the needs of Enterprise Asset Management

– Scenario-specific extensions to supply chain functionality delivered via industry solutions

Core Maximo supply chain functionality

delivers the bulk of supply chain capabilities for ~75% of our customers.

Addressing the business requirements of the remaining 25% is best-suited by IBM’s in-house best of breed capabilities….just not necessarily in Maximo’s box. – Enter Emptoris

Purchase & Pay

Materials Management

Contract Execution

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Looking Ahead – Maximo and Emptoris Synergy Emptoris is a provider of strategic supply and contract

management software including the following applications.

Emptoris Capabilities Include:

Contract Mgmt Sourcing Spend

Analysis

Supplier Lifecycle

Mgmt Services

Procurement Compliance

Mgmt

Telco Expense

Mgmt

44

Plan to Contract

A combination of Emptoris and Maximo extend supply chain capabilities to Planning and Contract mgmt

+

Execute to Settle

Analyze

Spend Supplier

Selection

Supplier

Sourcing

Manage

Supplier

Contracts

Activate

Suppliers

Automate

the order

process

Logistics

Management

Supplier Compliance,

Risk & Performance

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Looking Ahead – Maximo and Emptoris Synergy

Areas of consideration for tighter fit between Emptoris and Maximo:

Contract Mgmt Sourcing Spend

Analysis

Supplier Lifecycle

Mgmt Services

Procurement Compliance

Mgmt

Telco Expense

Mgmt

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+

Companies

Item Master

Storerooms

Inventory

Contracts

PR

WO Demand

Supplier Lifecycle

Management Sourcing -

RFQ

Maximo

EMPTORIS

Individual Demand

PO

Receipt

Invoice

RFQ Contracts

Spend Analysis

Maximo / Emptoris Footprint

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Takeaways

The Maximo and Emptoris product teams are researching new ways to get the best value from a combined solution.

– The charter of any ensuing strategy will be to ensure that current Maximo and Emptoris customers will be able to transition to any future solution with the least effort.

Play your part. – Consider participating in this endeavor by:

• Submitting requirements ‘wish lists’ (RFEs) • Joining a customer user group such as the Maximo Supply Chain User

Group • Applying to be a development partner for this area

This ‘future’ is now. – Maximo and Emptoris customers can realize the benefits of the

combined solution right now and be positioned for future gains in this area.

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Questions?

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Acknowledgements and Disclaimers:

© Copyright IBM Corporation 2012. All rights reserved.

– U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp.

– Please update paragraph below for the particular product or family brand trademarks you mention such as WebSphere, DB2, Maximo, Clearcase, Lotus, etc

IBM, the IBM logo, ibm.com, [IBM Brand, if trademarked], and [IBM Product, if trademarked] are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml

f you have mentioned trademarks that are not from IBM, please update and add the following lines: [Insert any special 3rd party trademark names/attributions here] Other company, product, or service names may be trademarks or service marks of others.

Availability. References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates.

The workshops, sessions and materials have been prepared by IBM or the session speakers and reflect their own views. They are provided for informational purposes only, and are neither intended to, nor shall have the effect of being, legal or other guidance or advice to any participant. While efforts were made to verify the completeness and accuracy of the information contained in this presentation, it is provided AS-IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this presentation or any other materials. Nothing contained in this presentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results.

http://www.ibm.com/legal/copytrade.shtml

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Appendix

52 52

EchoSign Integration

•User Exit sends Contract and Party email addresses to EchoSign

•Parties are notified to sign the contract at EchoSign

•EchoSign will track signature process

•Emptoris will poll EchoSign for signature status

•Upon confirmation of Signature, Emptoris executes the contract

External Party

Internal Party

Internal Party Presents Contract for signature

EchoSign Sends Notification and Tracks

Signature Process

Emptoris Sends PDF and Party

email addresses

Emptoris Sends Notification of Executed

Contract

1

2

3

4

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Contract Automation

Contract Access Contract Creation

Contract Negotiation

Approval Management

Contract Execution

Obligation Management

Analysis and Audit

• Online Contract Editor • Tight Document Controls • Alternate Clauses • Checkout/Check-In • Version Control/Compare • Complete Audit Trails

• Conditional Approvals • Clause Controls and

Clause Approvals • Dynamic Executive

Summaries • Deviation Tracking

• Risk Management • Obligation Fulfillment • Contract Analytics • Mass Operations • Comprehensive

Amendments • TRx-to-Contract Links

• Configurable Best Practices

• Standard Contract & Clause Libraries

• Self-Service Wizard • Third Party Paper • ERP/RFx Integrations

• Bulk Legacy Import • Key Data Abstraction • Searchable Contract

Repository • User-Defined Folders • Enterprise Security

• Audit Tools • Revenue Compliance • Risk Analysis

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IBM Emptoris Strategic Supply Management Program & Request Management


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Program & Request Management Project management for all procurement related initiatives

Link to Spend, Sourcing, Contract, and Supplier activities Configurable request forms that can be routed across suite Centralized savings definition and measurement Graphical workflows, dynamic dashboards and reporting

Value Global cross suite visibility from a central workspace

Governance to enforce standard process

Increase resource utilization and efficiencies

Enhance savings realization from procurement projects



Orders


Track Compliance

55

IBM Emptoris Strategic Supply Management Supplier Evaluation & Risk


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Supplier Evaluation & Risk User defined scorecards and surveys with ability to link to contracts Risk modeling with sophisticated calculations Integrated KPIs, traffic light system graphics, and proactive alerting

Value Supplier risk data is centralized and easily accessed

Manage more suppliers with automated evaluation processes

Proactive alerting to identify risks earlier



Orders


Track Compliance

56

IBM Emptoris Strategic Supply Management Spend Analysis & Supplier Evaluation


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Spend Analysis Measure contracted prices and rates against actual spend data down to the item level

Value Identify leakage spend

Increase savings to contracted rates

Drive more business to preferred suppliers

Ensure suppliers deliver on SLAs

Supplier Evaluation Track supplier performance (KPIs) against contracted SLAs



Orders


Track Compliance

57 IBM Confidential

Virtual Supply Master - Centralized Data Management

360 Dashboard Reports & Analytics 360 view of cross suite supply chain activities from one interactive dashboard report Preassembled workspace content – drag and drop assembly Accessible online or on mobile tablets / iPad

Value Increase visibility to savings and rationalization opportunities, demand aggregation, compliance issues and supplier risk

Use supply chain intelligence to increase corporate competitiveness

IBM Emptoris Strategic Supply Management 360 Dashboards Reporting & Analytics


Source Analyze Spend Contract Execute

Orders


Track Compliance

Qualify Suppliers

360 Dashboard Reporting & Analytics

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Maximo Enrichment with Emptoris Solution (s)

pulse2014 1074

Technology

initial maximo

maximo v7

maximo strategy

maximo integration doyle

contract supplier management

master contracts

purchase contracts

contracts assessment