{"id":11125,"date":"2017-06-16T12:22:44","date_gmt":"2017-06-16T19:22:44","guid":{"rendered":"https:\/\/www.microsoft.com\/insidetrack\/blog\/?p=11125"},"modified":"2023-06-16T16:04:11","modified_gmt":"2023-06-16T23:04:11","slug":"beyond-crm-extending-dynamics-365-to-manage-contracts","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/insidetrack\/blog\/beyond-crm-extending-dynamics-365-to-manage-contracts\/","title":{"rendered":"Beyond CRM: Extending Dynamics 365 to manage contracts"},"content":{"rendered":"
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This content has been archived, and while it was correct at time of publication, it may no longer be accurate or reflect the current situation at Microsoft.<\/p>\n<\/div>\n<\/div>\n
When managing advertising agreements became complex and error-prone, Microsoft Digital turned to Microsoft Dynamics 365 to create a contract life cycle solution. The system streamlined contract creation, approval, and management\u2014and moved Dynamics 365 beyond customer relationship management. It integrates with external systems like SAP and DocuSign to automate, digitize, and simplify contracts and transactions. The system set the standard for hybrid cloud configurations at Microsoft.<\/p>\n
Managing advertising operations\u2014specifically, selling or buying ad space\u2014became unwieldy at Microsoft. Complex, nonstandard advertising agreements resulted in a manual, inconsistent, and highly segmented system that was sometimes prone to errors. The Advertising Operations team needed a consolidated system to streamline and manage online advertising agreements, end-to-end, so they approached Microsoft Digital for a new solution.<\/p>\n
Our Agreement Management Tool (AMT) has evolved into a cloud-based managed service that uses Microsoft\u00a0Dynamics 365 to push the limits of what customer relationship management (CRM) can be. AMT started as an on-premises, customized version of Dynamics CRM that improved our advertising contracts system. Today, AMT delivers a global, cloud-based, feature-rich system that manages the entire life cycle of online advertising agreements by automating, digitizing, and simplifying processes. AMT is a pioneering example of how we extended CRM to manage not just relationships\u2014but contracts and transactions too\u2014and it set the standard for hybrid cloud configuration systems at Microsoft.<\/p>\n
Managing complex advertising contracts<\/h2>\n
Managing advertising operations is complex. Contracts for buying, publishing, and managing advertising incentives and partnerships all have their own rules and come with their own sets of obligations. Microsoft sells advertising space on its own websites, like MSN.com. They also buy advertising space on other companies\u2019 websites. It\u2019s a big business\u2014they recognize hundreds of millions of dollars from advertising.<\/p>\n
Advertising agreements are nuanced, often non-standard, and they contain unique negotiated terms\u2014like revenue incentives. As Microsoft grew, Advertising Operations had to coordinate across multiple systems and tools. For example, to process an end-of-year payment, staff had to:<\/p>\n
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Find the contract and get contract details.<\/li>\n
Calculate the payout by inputting data from a custom Excel spreadsheet into another system.<\/li>\n
Enter data into our expenditure tracking tool.<\/li>\n
Enter data into SAP for reconciliation.<\/li>\n<\/ol>\n
It was hard to consistently apply business rules across multiple tools and processes. And analyzing data across multiple repositories was challenging.<\/p>\n
As you can imagine, navigating though complex and disjointed processes needed deep institutional knowledge. The system was labor intensive and exposed opportunities for error. Something as simple as searching for a contract meant emailing the Advertising Operations team and then pulling the data. And end-of-contract financial obligations were sometimes affected by contract unavailability, data extraction issues, or data entry errors.<\/p>\n
As the business grew, using separate tools such as Excel and Outlook made it difficult\u2014and sometimes impossible\u2014to enforce business rules, track processes, and analyze data. The original, internally developed system was highly customized, which made it both time- and resource-intensive.<\/p>\n
Ultimately, the need to reduce compliance risks triggered Advertising Operations ask us for a new solution that would give them a new level of control over how they manage contracts. The business needed a solution that used fewer tools, offered greater control, and had the ability to automate workflows.<\/p>\n
Our AMT evolution<\/h2>\n
When we started investigating a new solution, we were immediately drawn to Microsoft Dynamics CRM. Dynamics\u00a0CRM can be configured rapidly, and it integrates easily with other applications. An on-premises instance of Dynamics\u00a0CRM was quickly created by an external IT partner, which improved the contract-creation system.<\/p>\n
As our knowledge of Dynamics 365 capabilities matured, we recognized the opportunity for a much more sophisticated system. We knew that Dynamics 365 would improve the advertising contract process by:<\/p>\n
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Moving it to the cloud.<\/li>\n
Adding significant features continuously and incrementally.<\/li>\n
Addressing business complexities that are governed by agreements with companies such as Yahoo and AOL.<\/li>\n
Automating workflows.<\/li>\n
Integrating with other line-of-business apps and operations applications, such as SAP.<\/li>\n
Reducing support costs. Dynamics 365 eliminated most of our support costs.<\/li>\n<\/ul>\n
Extending CRM in new ways<\/h2>\n
AMT manages the end-to-end life cycle\u2014creation, approval, and management\u2014of online advertising agreements, plus the transactions associated with them.\u00a0AMT extends Dynamics CRM in unique and new ways. CRM systems are typically used to manage and analyze customer interactions and data throughout the customer life cycle, with the goal of improving business relationships, retaining customers, and driving sales growth. When we developed AMT, we adapted Dynamics CRM to:<\/p>\n
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Manage agreement and signature processes.<\/strong>\u00a0AMT uses readily available Dynamics CRM connectors, such as the DocuSign for Dynamics CRM Online Connector, to manage advertising contracts and transactions. DocuSign automates and tracks advertising contract signatures.<\/li>\n
Support compliance with a cohesive workflow.<\/strong>\u00a0AMT captures contract metadata and employs a standard, automated workflow for signing documents, including local storage for draft agreements, workflow initiation, and review with other business teams. The same stages and steps are followed for each customer interaction. Integrated business rules ensure that people complete all required steps and meet SLAs. The cohesive workflow ensures that our advertising operations transactions comply with Microsoft policies and controls.<\/li>\n
Integrate with internal and external systems.<\/strong>\u00a0AMT integrates with internal systems, like an internal data staging warehouse; external systems, like the Microsoft Records Center; and third-party solutions, such as DocuSign and SAP. A single repository provides business insight, aids in decision making, and facilitates reporting.<\/li>\n
Automate processes and reduce errors.<\/strong>\u00a0To make sure contract obligations are met, AMT guides people through activities when obligations are due, past due, and more. SAP integration automates and standardizes processes for sending and receiving invoices, and for accepting and making payments. SAP plus automation reduces error and business risk.<\/li>\n
Adapt to business security needs.<\/strong>\u00a0AMT offers a customized security model by segregating data within the system. For example, to limit possible exposure of highly strategic contracts. AMT selectively partitions data records, so that only a few people have access to certain contracts.<\/li>\n
Facilitate one-stop-shop decisions.<\/strong>\u00a0A single AMT repository simplifies queries and enhances business visibility. Contracts can be monitored at any point in the process. Visualizing data from a single repository supports better business decisions and simpler reporting.<\/li>\n<\/ul>\n
Digitizing the ad contract experience<\/h2>\n
AMT effectively digitized the creation and management of advertising contracts. Here\u2019s an example, using the old contract signature workflow:<\/p>\n
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Salesperson emails draft contract to customer for signature.<\/li>\n
Customer scans or faxes back.<\/li>\n
Salesperson gives to operations team.<\/li>\n
Operations team signs document.<\/li>\n
Operations team sends back to salesperson, then uploads to document repository.<\/li>\n<\/ol>\n
Today, AMT with integrated DocuSign eliminates these steps and digitizes every aspect of the transaction. AMT distributes the draft to relevant parties, such as Microsoft Corporate, External, and Legal Affairs or Microsoft Finance, and manages those signatures. The AMT workflow brings the document back into Dynamics 365 and routes it into the signing repository.<\/p>\n