EY has announced the launch of EY OpsChain Contract Manager (OCM), a transformative blockchain-enabled solution for contract management, to help enterprises with automatic adherence to agreed terms.
Companies often find themselves struggling to fully implement and capture value from their business agreements, with spend being fragmented across internal enterprise barriers, making it hard to track and qualify for agreed discounts and rebates. Smart contracts can enable this aggregation of spend across systems and external business partners by consistently applying contract terms.
Launched at the annual EY Global Blockchain Summit, EY OCM can help address the enterprise challenge of managing business agreements that run across internal and external operational and technology silos.
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EY OCM is poised to assist organizations in executing complex business agreements, supporting confidentiality, helping improve time efficiency and achieving cost reduction.
The solution works by synchronizing data across business partners and uniformly enforcing key business terms such as standardized pricing, volume discounts, rebates and strike prices.
EY OCM runs on the Ethereum public blockchain, enabling a decentralized operation in a trustworthy environment that helps avoid giving a strategic advantage to either a buyer or a seller. It also helps prevent the risks that come from sharing sensitive business information with a centralized industry portal. The system maintains enterprise privacy using Zero Knowledge Circuits.
Paul Brody, global blockchain leader of EY, said: “We’ve identified from past client work that contract automation can improve accuracy while cutting cycle times by more than 90 percent, and overall contract administration costs by nearly 40 percent. With our zero-knowledge privacy technology, we have industrialized this capability, and we can now get these benefits at a fraction of the up-front cost.
“Deploying on a public blockchain is not only cheaper, but also much more scalable, helping enable many-to-many integrations on an open platform with no one company having an unfair advantage by controlling the network.”
