Opening keynote address: creating value through change - contract economics, ethics and innovation - IACCM APAC Conference 2019
The efficiency with which trading relationships are formed and the value they deliver are critical to business success. Commercial teams face unprecedented pressure to drive greater efficiency and value from their trading relationships - increase speed, reduce costs, raise effectiveness and contribution. At the same time, market and competitive pressures are driving the need for new commercial delivery models and forms of offering.
These demands can only be met through a structured change agenda, supported by the adoption of emerging technologies:
• Contract economics: leading businesses have started to address the overall cost of contracting and to understand its role in driving increased revenue and profit. Contract economics is about reducing the cost of contract creation; understanding the financial impacts of risk acceptance and allocation; and reducing the operational costs associated with managing contract performance, which includes tackling the sources of contract value erosion.
• Ethics: businesses today face not only growing regulatory demands, but also increased social expectations regarding corporate behaviour and values. Contracts - and those responsible for them - play a major role in maintaining ethical standards. The quality and integrity of commitments to the market, ease and clarity of understanding, the honesty and transparency of commercial practices are key areas that enhance or undermine an organization's reputation and ethical standing. Contract terms, processes and tools should be used to ensure business and supply chain integrity and to create a sustainable brand image.
• Commercial innovation: new approaches, new ideas, new forms of relationship and commitment are increasingly key to business survival. The potential for change is often driven by technical invention, but its success in the market depends on commercial innovation. Business strategies and goals depend upon the ability to develop effective and efficient commercial models and delivery capabilities, with recent examples including the expansion of as-a-service, performance and outcome-based, shared benefit and relational agreements. The change agenda requires regular re-evaluation of market and competitive demands and trends, with consequent challenge and update of required policies, practices, processes and skills.
New technologies are starting to enable fundamental changes in the capability of commercial teams - Legal, Procurement and Contract Management. They are transforming job roles and providing the time and the insights to create fresh sources of value and management information.
Our message: You can't afford to be left behind. Step into the future with the action leadership of the IACCM networked community - global, multi-industry, cross-functional, unique.
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Some Key Topics For 2019
- How does this affect the role of the function and individuals within it?
- How should the function and individuals be measured?
- What impact does this have on what and how we negotiate?
- What are the technologies we need, where do we get them and how do we use them?
- What new skills and knowledge are required and where do we get those?
- Practical tips, ideas and case studies on how to do things better / differently