Challenge
With a network of more than 1.5 million healthcare providers, clinics, and facilities, third-party relationships are vital to this U.S. healthcare leader. These relationships are defined by contracts, and it was essential for their global procurement and legal teams to effectively draw insight from past agreements to guide future transactions. The organization also needed a way to surface compliance information when new risks emerged.
However, the organization struggled to effectively extract and centralize its contract data. Without a central repository, teams had to first locate the contracts — in e-mails, on desktops, or living as hard copies filed away — before they could begin to extract data. Once the right contracts were located, teams had to manually pull the necessary information and upload it to the appropriate systems.
The organization quickly saw the opportunity that would come from investing in a contract management solution that could automate all these processes while pulling the necessary data from their agreements. That began their search for contract intelligence.
Solution
The organization selected the Icertis Contract Intelligence (ICI) platform to standardize and automate contract operations while turning contract data into enterprise insights. Working alongside Icertis, it developed a two-phase plan, ensuring the success of the project that would spearhead their digital transformation efforts.
Phase 1 began with the creation of a centralized repository. This supported the migration of all legacy agreements into ICI. Icertis AI, trained on millions of contracts to recognize language patterns and identify contract attributes, extracted this highly varied contract information, which became the structured contract data that provided unprecedented insight into thousands of contractual relationships.
The integration with SAP Ariba helps to ensure the intent of every sourcing event is correctly captured in the contract, and then carried out.
Phase 2 revolved around the creation of new procurement agreements. With SAP Ariba as the primary system for the procurement team, the organization needed to ensure a flow of data between the systems. As the only contract lifecycle management (CLM) solution certified as an SAP Endorsed App, Icertis allows information captured by Ariba during sourcing flows seamlessly into ICI for contract creation. Once executed, the contract data is then pushed back to Ariba, where the procurement team can utilize contract terms moving forward. This integration helps to ensure the intent of every sourcing event is correctly captured in the contract, and then carried out.
With this solid foundation set, the healthcare leader is now implementing more advanced solutions such as NegotiateAI, which provides AI-powered insights to maximize the value of every agreement.
Benefits
With Icertis, the organization has seen a substantial decrease in manual effort and benefits from improved efficiency across the enterprise. More than 60,000 agreements have been migrated to ICI, and the health services giant is utilizing Icertis AI to extract the critical data and information it needs to optimize both operations and business decisions.
Its centralized, searchable contract repository alone was a huge win. It has increased visibility into every agreement, letting the organization create amendments as needed that quickly — and accurately —respond to changes in the global and economic environment. Meanwhile, the centralized repository has improved version control – making certain that each agreement is correctly memorialized, up-to-date, and fully realized.
