Contract Management. Larry Johnson IT Service Management. January 2018
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1 Contract Management Larry Johnson IT Service Management January 2018
2 Course Agenda Lesson 1: Contract Management Introduction Lesson 2: Managing an Existing Contracts Lesson 3: Creating a New Contracts Lesson 4: Cancelling Contracts Lesson 5: Terms and Conditions (Optional) Lesson 6: Wrap-Up 2
3 Lesson 1: Contract Management Introduction After this lesson, you will be able to understand: Contract Management Defined Contract Management Process Contract Management Application
4 Contract Management - Defined Contract Management is the process of managing contract creation, execution and analysis to maximize operational and financial performance at an organization, all while reducing financial risk.* The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle and contains information such as: Contract number Contract start and end dates Active status Terms and conditions statements Documents Renewal information Financial terms Contract Management integrates with Cost Management to associate contracts with costs and determine the total cost of ownership. * Best Practices in Contract Management Strategies for Optimizing Business Relationships (2004), Aberdeen Group
5 Contract Management - Process The Contract Management application is a centralized repository to create and manage contract data. Contract Management Procedures Renew / Extend Create Contract Approve Contract Contract Notifications Contract Notifications Cancel Contract Contract ITAM Activities Model Management Procurement Receipt Deployment Management / Tracking Retire / Dispose Product Catalog Procurement Procurement Asset Management Software Asset Management Asset Management Service Request Asset Management Inventory Management Contract Management Software Asset Management Software Asset Management Contract Management Service Request Contract Management Contract Management
6 Contract Management - Application The Contract Management Application is a centralized repository for contract data. It can be used to navigate to various forms, records, and key data. Key Contract Modules* Overview Software Maintenance Hardware Maintenance Subscriptions Services All Description A type of homepage that include gauges and charts to manage contracts. View all software maintenance contracts or create a contract for a software maintenance model. View all hardware maintenance contracts or create a contract for a hardware maintenance model. View all subscription contracts or create a contract for a subscription model. View all service contracts or create a contract for a services contract model. View all contracts or create any type of contract. *Administration section visible only to ServiceNow administrators
7 Contract Lifecycle From creation until closure, contracts follow a lifecycle that determines which fields can be edited. When a contract is in Draft state, almost all fields on the contract record can be edited. After a contract moves past the Draft state, certain date, renewal, extension, and financial fields become read-only. Only users listed in the contract administrator, approving manger, approving director, financial analyst, finance director and watch list fields will have access to view the contract. State Draft Active Expired Cancelled Under Review Description User adds information about the contract and specifies an approver. Contract was approved and has reached the specified Start date. Contract reached the specified End date. Contract was discontinued and is no longer active. Contract is under review by the Contract Administrator
8 Lesson 2: Managing an Existing Contract After this lesson, you will be able to: View and update a contract Understand the contract notifications Renew a contract Extend a contract
9 Contract Dashboard For existing contracts, you can view information about your contract status in the Contract Management Overview module. It displays various contract management reports.
10 Extend Contract For existing contracts, you can extend the end date, if necessary. Extending the end date retains contract information and history.
11 Contract Reporting Users will have access to Contract report.
12 Contract Notifications The Contract application has several notifications that assist users with managing and checking the status of contracts during their life cycle. NOTE: If the contract has a dollar amount greater then $250,000 or more, notifications will being 120 days from the contract end date.
13 Add Documents to a Contract Contracts can be associated with documents. Linking a contract with related documents helps keep all relevant information about a contract together and easily accessible. Attach a document to a contract by clicking the Paper Clip icon in the upper right hand corner. Once the document is attached, it is displayed in the upper left hand corner of the contract record.
14 Add Assets to a Contract Contracts can be associated with specific assets, including software licenses. Linking a contract with assets clarifies what the contract legally covers.
15 Add Configuration Items to a Contract Contracts can be associated with specific configuration items or CIs. Linking a contract with CIs clarifies what the contract legally covers.
16 Add Users to a Contract A contract can cover specific users. For example, you may use a contract to hire a group of temporary workers.
17 Lesson 3: Creating a Contract After this lesson, you will be able to: Understand the lifecycle of a contract Create a new contract Enforcing A Contract
18 Create a Contract Create a variety of contract models for Software Maintenance, Hardware Maintenance, Subscriptions, and Services.
19 Create a Contract Example Software Maintenance One example of Contract Management is managing software licenses. For Software Maintenance contracts, a License type field is available. License type: Enterprise Enterprise licenses are typically for large customers and provide some flexibility, an agreed upon discount price, and a mechanism for easy administration. SaaS Software-as-a-Service solutions are becoming more prevalent and cost effective for many organizations. Tracking the contracts associated with these solutions is key for software asset management. Subscription - You can create subscription licenses, and manage the information as it changes.
20 Enforcing A Contract The contract can be submitted for review using the button on the form.
21 Lesson 4: Cancel a Contract After this lesson, you will be able to: Cancel a Contract
22 Cancel a Contract A contract can be cancelled when it is in the Active State.
23 Lesson 5: Terms and Conditions (Optional) After this lesson, you will be able to: Terms and Conditions
24 Terms and Conditions Adding terms and conditions to a contract helps keep all documentation relevant to a contract in one location: the contract record. There are three procedures to add Terms and Conditions to a Contract. First, create a Terms and Conditions record. Second, add the Terms and Conditions record to a contract. Then, build a Terms and Conditions document within the contract.
25 Create a Terms and Conditions Record The first procedure in adding terms and conditions to a contract is to create a terms and conditions record.
26 Add Terms and Conditions Record to Contract After creating a terms and conditions record, it needs to be added to a contract.
27 Build Terms and Conditions within a Contract After adding one or more terms and conditions records to a contract, build a terms and conditions document within the contract. The terms and conditions records are added in the sequence specified in the Order field.
28 Lesson 6: Wrap-Up After this lesson, you will be able to: Terms and Conditions
29 Summary Contract Management Intro Contract Management is the process responsible for monitoring contracts and associated IT assets, defining warranty, terms and conditions, assisting in vendor / manufacturer selection, and producing vendor performance feedback. The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle and contains information such as: Create a Contract A contract is a binding agreement between two parties. In ServiceNow, you can create a variety of contract models The contract record goes through a lifecycle which include the following States: Draft Active Expired Cancelled Under Review Manage a Contract Once a contract has been created and approved, it can be updated by adding documents, users, assets, adding configuration items and contract term and conditions. Contracts dates can also be adjusted. Contracts can be renewed and extended as well. Cancel a Contract A contract can be cancelled when it is in the Active state. After a contract is cancelled, the contract state changes to Cancelled, but it can be reactive if it was cancelled in error. Contract number Contract start and end dates Active status Terms and conditions statements Documents Renewal information Financial terms
30 Test Your Knowledge! 1. The ServiceNow Contract Management Application provides management and tracking of contracts through their lifecycle with which items on the ServiceNow Record? 2. What are the four procedures within the contract management process? 3. What determines what fields can be edited on a contract record? 4. Can a Contract be reactive if cancelled in error?
31 Congratulations!
32
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