Presented by:David W. Puckett, Founder & Principal of Rezoud, Inc.

Cyber Week 2012

Make a case for ODR Adoption - Case-Study: Customer Relationship Management (CRM)

Business Transformation Model, Technology Acceptance Curve, Consulting Life-Cycle Implementation Processes

What is ODR, or is it ADR Online? Elements of an ODR System, Research Trends & Our Survey

Questions and Discussion

Additional Considerations

ODR Evolution Projections, SaaS Model & ODR Case Study Examples

Needed Changes & Considerations

Presentation Outline

1

2

3

4

5

6

7

What is it?ADR Online or ODR?

On-Line ADR(oADR)

Internet Dispute Resolution

(iDR)

On-Line Dispute Resolution

(ODR)

4th Party or Technology

Layer in Dispute Resolution

Electronic Dispute

Resolution(eDR)

Electronic Dispute

Resolution(eDR)

OR

We advocate you call it what you want. We see it as a technology layer that should be leveraged to resolve disputes in a timely, efficient, positive, cost reduction in an

effort to better serve your clients and improve your corporate reputation

ODR should not be associated

only with Internet based

Video Conferencing for

Mediations & Arbitration!

Source – The term 4th Party related to ODR, Ethan Katsh, 2001.

Actual Mediation - On-Line via Video Conferencing or Traditional In-Person including case disposition and settlement recording/filing functionality

Neutral Registration & Marketing – central place to promote and find neutrals Promotion (Social Network for Neutrals nationally)

Traditional Case Management - (after Neutral is selected (they take control of the case) and you must have traditional legal case management functions including contact management, time tracking and billing

Communication System and Log - Scheduling, email, instant messaging and recording of all communication related to the case and the mediation/arbitration process.

Neutral Selection - (by both parties need to find neutral-neutrals) a process of selection is the biggest industry challenge today related to massive or mainstream acceptance

Data & Case Information Repository - Contracts, Background of Parties, Discovery and all documentation related to the case

Case/Business Intelligence - a modern system should have business intelligence capabilities or linkage to precedence history of settlement of similar cases and even advance algorithms for helping suggest solutions

Elements of an (ODR)System

1

2

3

4

5

6

7

Current ODR Research & Trends

“ODR is not in itself a distinct field but more like a support

system for mediators and arbitrators addressing individual disputes”

Ethan Katsh, 2012

The internet is a culture, “what appears to be

happening in the world of international e-commerce is

the development of an online culture”

Daniel Rainey, 2012

The field of Dispute System Design (DSD) is based on the

theory: “Distinguish three major ways for resolving

disputes: underlying interests, determine who is right and determine who has more

power”Ury, Brett & Goldberg, 1988

”ODR needs to orient itself to systems and well as tools and ADR needs to incorporate new technologies into the theory

and practice of Dispute System Design”

Ethan Katsh, 2012

Source:On-Line Dispute Resolution: Theory & Practice, Eleven International Publishing, 2012

Our Survey TemplateOver the summer we developed a collaborative ADR/ODR survey, that we intent to have performed annually for the next

10+ years. The goal is to survey key C-Level Executives, Government/Court System officials on their attitudes, awareness of ADR & ODR and it uses in their respective businesses and courts

We are seeking industry partners, universities and survey participants, and anyone who participates will have access to the results of the survey. The results

will not be used for marketing purposes.

What are the barriers for ADR/ODR?Business Transformation Model

The standard model of technology adoption has to start with changing Culture and Governance. 95+% of all business contracts have Mediation & Arbitration clauses, however the challenge remains, what actually happens internally when a conflict arises?

Culture & Governance is

the largest obstacle

The Technology is actually the

easist part

Processes and Human Factors

follow

Graphic Source: AlignedManagement.com

Mapped to ODR IndustryStandard Technology Adoption Curve

Innovation Phase – term ODR emerges, video compression improves and SaaS emerges in general technology

2000-2010

Early Adopters - Enterprise capable & SaaS architected solutions merge from small start-up ISV’s. Technology standards and improvements emerge. Expect acquisitions by major ISV’s, emergence of consulting industry

2010-2015

3Early Majority – Tier 1 Consulting and leading Industry ISV’s in the market. Companies are issuing RFP’s and mass adoption by the Fortune 500 & Governments

2016-Future

2

1

We are here

Graphic Source: FreeLancer Consulting

Today

DEFINE OBJECTIVES – define issues, opportunities, apply measurements and metrics, define what success would be (money saved, process improvement opportunities, new services & new markets)

MAINTAIN & UPGRADE – train, train and train, likely have to make new job descriptions for hiring and train all new hires. Once a technology investment is made, you have to upgrade every few years

DESIGN – it begins with design of new business processes, workflow, developing detail functional and technical requirements, data modeling and database design. You must have detailed requirements before moving forward!

IMPLEMENT, ACTIVATE & INTERGRATE – SaaS software requires less physical implementation but often requires integration with other systems. Very important to know your user count and types before entering a SaaS contract

ANALYSIS – document current business processes, observe, look for opportunities for improvement, define risks and establish a base-line. Remember technology projects require corporate cultural changes!

REQUEST FOR PROPOSAL (RFP) & VENDOR SELECTION – of course sometimes the 3 previous steps result in the project being an internal IT development project, but in most cases it involves an outside vendor(s). This is a very important step and requires multi-considerations

EVALUTE – following implementation you need to review and evaluate against your original requirements and baseline. You also need to do a risk analysis

Standard Consulting Life-Cycle steps:

1

2

3

4

5

6

7

The single biggest reason for a technology project failure is the lack of Executive Sponsorship and a strong company wide mandate to embrace the new technology

Customer Relationship Management (CRM)& Online Dispute Resolution (ODR)

Comparative Technology Adoption – Analogy

Customer Relationship Management Technology Adoption

AD - 1970

3

5

1 24

6

Custumer Relationship were manual processes and at best recorded in ledgers. Personal relationships were primarly interactions in business

Cor

pora

te A

dopt

ion

of C

RM

Saas

1960 - 1980

Mainframe Computers were introduction (timeshare applications). Client information and sales data were stored in various systems, early contact management evolves

1980 - 1990

Micro Computers were introduced, customer information was moved to various remote systems and 2nd generation contact managers. There was little or no intergation with sales history or inventory

1990 - 2000

Introduction of CRM software, adoption, consoldation, mass adoption & systems moved to intergate into ERP systems

2000 - 2010 2010 - Future

CRM everywhere, further extends to devices including moblie devices

CRM Explodes, SaaS CRM arrives, Salesforce.com, many industry experts predicted it would not be adopted, they were WRONG!

The citizens of early

civilizations likely invented

CRM, when they keep records of

sales transitions on

tablets!

ADR/ODRTechnology Adoption

AD - 1960

3

5

1 24

6

Mediation and other forms of Dispute Resolution have been around in various forms across most socities throughout history

Cor

pora

te A

dopt

ion

of A

DR

/OD

R

1960 – 1990

Most agree modern ADR started to take form as a result of the of the Civil Right movements and mediation and arbiratation methodologies were formed and began to be taught and used in the US

1990 - 2000

Futher advancement in ADR methodologies, more professional standards and more wide spread use in business, consumers and the courts. Internet use started and exploded

2000 - 2010

The term ODR was introduced, ODR applications were built, Video Conferencing comes to PC’s. The use of ADR methods continued to expand, more attorneys and law firms began offering mediation services

2010 - 2015 2015 - Future

Expect large ISV’s to enter, along with Tier 1 Consultacies, economics will drive further growth by Fortune 500 and the Courts. everywhere, further extends & on mobile devices

New ODR solutions come to market, new industry standards are developed, video compression increases video conferencing and ODR growth starts!

Early citizens likely used

ADR to resolve

disputes, did not have today’s

attorneys!

ODR Evolution Projections

• Challenge of change of how we have done it for 2+ centuries, centered around legal industry processes

• Lack of Senior Management Sponsorship (no RFP’s on the street)

• Lack of Upper/Middle/Departmental Managers ADR process knowledge

• Lack of Industry Leading ISV’s offering solutions

• Lack of Process/Technology standards• Lack of Tier-1 Consultancies offering ODR

related Consulting to generate understanding, value justifications and desire for ODR Solutions

Implementation & Adoption:• Not likely to begin until the items above are

addressed, and then follow the same issues as CRM Adoption

ObstaclesComponents

1• Flexible components for resovling all types of

disputes (C2C, P2P (marital or other),B2C, B2B)

• On-Line Automated or Assisted Aribration, Mediation, Facilitation or Restorative Justice

• Access and selecting Neutrals• Scheduling, Case Discovery Repository• Time Keeping and Billing• Marketing Services• Case Precedent Intelligence• Case Information with Intelligent Agorthrims• Integration with Social Media• Integration to Accounting System and Court

Systems

Deployment Strategy:• Processes, People and Technology

ODR is a subset of Dispute Resolution and Alternative Dispute Resolution (ADR) and primarily involves allowing users to leverage technology to resolve disputes using traditional ADR

methodologies like Mediation, Arbitration and Standard & Principled Negotiation

ODR was born out of a synergy between ADR and Information & Communication Technology (ICT) which allows users to harness the power and reach of the

internet and communication technologies to resolve disputes

Expect ODR Solutions to be SaaS

Ready Made, Pay-as-you-Go, access immediately, pay-by-user, easy deployment

SaaS Highlights

No server hardware investment required, device agnostic, and regular S/W upgrade cycles

3Lower Cost overall, but ODR has other obstacles for adoption, but SaaS will be the model

2

1

Industry

Standard

Solutions

Pay-as-you go,Internet Accessible

Device AgnosticsEasy Collaboration

Automatic and regular upgradesFew Bugs, no coding required, easy integration

Lower Cost of OwnershipImmediate Deployment

Lower Training Costs

Graphic Source: Rezoud Corporation, 2012

Technology Adoption Challenges:1. Real Estate Industry – Realtor.com2. Car Industry - AutoNation Corporation

ODR Industry Adoption Examples:3. Major Airline - Large Airline4. Cereal Company - Large Food Packager5. Foreclosure Example - Graduate School Project

ODR Case Studies Examples:

Foreclosure 10-Step Process Example

Step # Description

1Mortgage Company files foreclosure within the proposed system

2Notification Provided to Homeowner

3Mortgage Company orders current property appraisal

4Homeowner completes online Comprehensive Financial Affidavit

5

Appraisal, Financial Affidavits are forwarded to Certified Financial Planner, they do analysis and prepare a recommended report and forwarded to both mortgage company and homeowner for consideration

6Bank and Homeowner selects 3 mediators from list and forwards to each other for selection process

7

Facilitator or Mediator is selected and they assume control of case management functions, reviews case and works with both parties to schedule 1st mediation

81st Facilitation and/or Mediation (if resolved, Facilitator or Mediator responsible for filing final resolution to the specific court jurisdiction)

9

2nd Facilitation or Mediation if required (if resolved, Facilitator or Mediator responsible for filing final resolve to the specific court jurisdiction)

10

Binding Arbitration, required if not resolved in mediation (Arbitrator responsible for filing final resolution to the specific court jurisdiction)

Additional Considerations

• We need to stop only associating ODR with only internet video conferencing for mediations and arbitrations, it is far more dimensional.

• eBay and PayPal are now handling over sixty million disputes annually, according to Ethan Katsh, “over 80% of the disputes are satisfactorily resolved through automated mechanism without a need for any human involvement:” (Katsh 2012)

• Dispute Resolution today, is not placing phone number or dispute/complaint buttons, in most cases that only increases complaints. eRetailers like Amazon, “can respond to grievances by technology and, by doing so, prevent a grievance from evolving into a dispute” (Katsh 2012)

• We are going to see vast technology improvements in the next few years especially in video compression, internet speed, mobility and this will fuel the growth of ODR

• Typical technology deployments like ODR have to follow the standard technology adoptions models as presented above, they take 12-24 months at least, so consider starting now?

Needed changes & considerations….

• Court Jurisditions need to consider dispute resolution ”a basic public service” or requirement, thus then embrace ODR as a lower cost mechinsm for delivery of this public service

• Contrained Court Budget, backlogged dockets will be the key driver toward ODR in the coming years

• ODR lacks financing and uniform procedures and prosedures across juristictions we can have hundreds of individual ODR systems

• Most courts today, allow electronic case filings & case management, so the natural next step would be ODR to reduce costs

• The 15” laptop monitor, with multiple parties in a video conference is not consider good, Theatre for attorney

Legal/ADR IndustryCorporate/Commercial ODR

1• ADR methods training and mandate by Top C-Level

Executives, including middle management training• Tier-1 Consultancies need to enter space to push

ODR• Aquistion and investment in ODR technology by

top tier technology vendors• Consulting engagement in Fortune 2000 to build

desire and justification• Not current top priority of CIO’s, has to be sold

from an economic value and process improvement justification

• Additionally Technology Standards required• The is no awarness of ODR in business today, and it

is going to require massive investment and a brand

Questions & Discussion

David W. Puckett, Rezoud CorporationEmail: dpuckett@rezoud.comPhone: 813.727.3583Skype: david.w.puckettTwitter: davepuckettWebsite: www.rezoud.com

Contract Information