Valerianne Chargualaf Stephenson Teresa (Terry) Durbin
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1 Contract Management: Integration, Customization and Compliance Valerianne Chargualaf Stephenson Teresa (Terry) Durbin Contract Management: Integration, Customization and Compliance
2 Agenda Sempra Energy at a Glance Emptoris Implementation Customization Integration Audit & Controls Q&A 2
3 Sempra Energy at a Glance
4 Sempra Energy Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2015 revenues of more than $10 billion. The Sempra Energy companies' 17,000 employees serve more than 32 million consumers worldwide. Overview of Sempra 4
5 Sempra Energy s California utilities, San Diego Gas & Electric and SoCalGas, serve more than 20 million consumers. Its other businesses Sempra U.S. Gas & Power and Sempra International develop and operate critical energy infrastructure and provide gas and electricity services in North America and South America. 5
6 Sempra Energy - Utilities San Diego Gas & Electric SDG&E lit its first lamp on San Diego streets in Today the fullservice utility provides electricity and natural gas to 3.5 million consumers across 4,100 square miles from Orange County to the Mexican border. Southern California Gas Co. SoCalGas lit its first street lamp in Los Angeles in 1867 years before Thomas Edison made his biggest discovery. Since then, the company has grown into the nation's largest natural gas distribution utility. SoCalGas serves more than 20 million consumers across 20,000 square miles throughout central and Southern California.
7 Emptoris Contract Management (ECM) Implementation
8 Why choose IBM ECM System? Integrate with existing applications ERP System SAP 3 rd party insurance tracking HR System Able to migrate from legacy system Template controls Reporting in Existing BI Met compliance controls Met Agreement process needs User Friendly!!!
9 Agreement Process Overview Budget Approval Requestor Creates Requisition Submits SAP to Launch Page In the Launch Page, AC launches from Requisition and initiate Agreement Creation Process Launch Page to Wizard Agreement Creator Delegate/Agent Approved Requisition assigned to Delegate/Agent in Launch Page ECM Wizard ECM Contract Submit Approved SAP Agreement is amended in SAP ACTIVATE Agreement Creator Delegate/Agent
10 Emptoris Implementation Process Updates x?
11 Customization
12 Culture drove customization Approximately 50 User Exits Over 300 btvs Reporting requirements Agreements only created via Wizard Largest Wizard is almost 200 pages External Launch Page that initiates Wizard
13 Launch Page Built in SAP Real time validation Less onerous wizard maintenance 13
14 Integrations
15 Web Service Overview Web services are modular enterprise applications that can be published, discovered, and invoked dynamically across the web. These services use open, XML-based standards and transport protocols to achieve data transfer and integration between different applications. Web services are platform- and language-independent. A Web Service is an open programmatic interface that allows you to perform a standard UI task or action, without accessing the UI. It can be expressed and accessed using XML and XML messaging. Each web service has a service, input type, output type, and exceptions or "faults", and comprises some content, a process, or both.
16 ECM Web Services IBM Emptoris Web Services allow you to access various contract management and administration functionality across the Emptoris Contract Management object model, which are otherwise accessible through the UI. The web services operations perform security permission checks similar to that performed by the Emptoris Contract Management application. You can use the web services to retrieve, query, create, add, update, or delete information from the Emptoris Contract Management Repository. The operations you can perform depend on your security permissions within Emptoris Contract Management.
17 Architecture LDAP + Web Services User Management Standard Reports & Extracts Contract Management Access to EAMS Agreements Clause library BTV s -Robust Security Model -Process Management -Workflow -Reporting and Output -User Administration -Simple and Advanced Search Metadata & Content XML Web Services SQL Integration Server (Webmethods, XI, etc) API Web Services SQL Vendor and Material Master Configuration Data Purchasing Group Payment Terms Unit of Measure Plant Purchase Requisition/ Purchase Order Header Info Item Info 17
18 Integrations Approx. 20 SAP Integrations Real Time Create/Change Agreements in SAP Contract Approvals Accounting Validation Single/Mass Update Batch Jobs Insurance Compliance Employee Updates Vendor Updates
19 Compliance & Controls
20 Why so customized? Risk-adverse culture Over 120 years old Utilities are regulated by both state and federal agencies Regulated utilities are inherently conservative SOx requirements Efficiencies-based Delegate program Need for controls drives embedded requirements Embedding requirements greater than out-of-the box system lead to customizations
21 Why embed in ECM? Enforces policy Ensures compliance Reportable which aids analysis User group security Saves time and $$$$$ 21
22 User Group Security Contract Agents ~20% of all contracting is Low Dollar and Low Impact - tactical Tactical contracts take away from the Contract Agents focus on strategic value Delegates located in Business Units Very different permissions Low dollar, tactical contracting Delegate model provides contracting authority to the areas receiving the goods and services while ensuring compliance and aggregated contracting data
23 Why Not Have Controls Outside ECM Consistent Agreements and Predictable Audit Results Delegates only have access to enter information in the interview Interview entries affect the final Agreement language No surprises or hunting for information/documents
24 Balancing Act Controls versus Flexibility Centralized versus Decentralized Costs versus Efficiencies Easily upgradable versus lengthy implementations 24
25 Enduring Priorities Compliance with multiple primacies Transparency to all levels of the organization Optimal performance to audits Business Units understanding of their contractual obligations and budget dollars Analytics spend, KPI s, resource needs
26 Q & A
27 Transform your enterprise contract management processes to create stronger contracts, gain global contract visibility and optimize legal and contracting resources IBM
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