Essential strategies for successful contract management software implementation

Essential strategies for successful contract management software implementation

Rule 1: Plan for your Legacy and Existing Contracts For a successful contract management software implementation strategy, it is important to drive user adoption into a new contract software. It is important to communicate the benefits of driving contract migration and how it will help contract teams readily focus on real actions and obligations instead of doing paper-keeping. Due to a longer lifespan, legacy contracts pose a different challenge altogether. Let’s say you missed a renewal deadline, or an early settlement benefit, or a bonus opportunity – all of which were specified in the contract long ago. But it was signed, allowed to rest and long forgotten. Any of these errors compromise the bottom line in business. This is why we feel strategizing contract migration for legacy contracts is of utmost importance. However, strategizing Contract migration for an improved contract management process is not a standalone option. One has to do thorough market research and comprehend all sorts of requirements from the contract software standpoint. Next, understand different solutions available in the market to shortlist the ones, matching your requirements. For example: Understand whether the solution provider only sells a CLM system or they can provide additional support for extraction and migration of contract information from your legacy storage medium into the CLM. “When Legacy Contracts are likely to form? Merger & Acquisition of two organizations Consolidation and Diversification of departments or legal entities Long term Renewal after liquidation or Insolvency of any long-term contractual relationship” Why is it important to import legacy contracts? Eliminating silos for contracts – Single-point storage and repository having centralized data control and access...
Why Corporate Legal Teams Need to Own CLM?

Why Corporate Legal Teams Need to Own CLM?

Contract lifecycle management is a very intricate process that requires attention to detail and a substantial understanding of the risks involved. We like to think of the activity as a combination of two sequential processes – pre-signature contract management and post-signature contract management. Today, we take a closer look at these processes to explain why corporate legal teams should own CLM. Contracts essentially exist to define business relationships between parties and allocate risks between them. During the drafting of a contract, there may occur shortcomings like lack of enforceable contract process controls or use of non-standard contract language, terms and conditions. Miswording or omissions during this stage can later cause major budgetary mishaps or serious conflicts. With their advantage of being able to see the clearer picture, legal professionals are more adept at assessing business risks that are innate to drafting of legal agreements. Negotiations require that the risks inherent to the business relationship are competently addressed during the process. Active involvement of the legal department in such matters help in allocating risks to the contracting parties by inclusion of appropriate clauses for the same. Standard practices of having the final draft of the contract reviewed by the office of the General Counsel stand relevant even today. Contracts should be reviewed periodically to check if any changes are required, or if they should be ceased. Contracts that need to adapt to constantly changing regulations place greater importance on contract governance. The team administering contracts needs to alert the involving parties on any new compliance requirements that arise. Stakeholders need to be involved in the process wherever appropriate. Problem resolution...
2020 Roadmap for AI in Contract Management

2020 Roadmap for AI in Contract Management

Artificial intelligence is the latest technological innovation taking place in the contract management world. With artificial intelligence most of the task is automated and the contract data is used in generating bulk opportunities for profit increment, savings etc. The outcome of a research conducted by Accenture says that by 2035, the successful implementation of AI can fetch 38% of the revenue. As per Forrester research $47 billion will increase in profitability by 2020. This would indirectly enhance the complete performance efficiency of the organisation. Technology can cost effectively enhance the productivity. With the involvement of artificial intelligence in contract management the complete user experience will be enhanced as it would ease and explore new areas of scope to build up strategies. Today AI technology is still too young to be effectively used in contract lifecycle management. The recent developments in contract discovery and analytics have shown the potential of AI and raises the bar for what the contract management solutions should accomplish. As the technology develops it is clear that AI can be utilized for not just contract management, but also, in identifying risk involvement, anomalies in contracts and suggestions, task prioritization, third party contracts, auditing and many more areas. Following points show how algorithms use contract data to enable better decision making Data in the Contracts Genetic and statistical algorithms can be used to describe the data in the contracts. This will help in deriving out useful information from a particular type of contract. This will also lead to enhancement in better decision-making. Predictive models By digitizing the complete data including terms and clauses in the contracts, predictive...
How does an Enterprise CLM bring changes to your organisation?

How does an Enterprise CLM bring changes to your organisation?

In many organisations, managing contracts is looked at as an additional activity that employees need to do. Contracts, instead, should exist to serve organisations by helping them plan for business proceedings and transactions in the drafting stage and fulfill their duties or obligations towards subjects in the contract in the post-award stage. However, for enterprises, it’s impractical to screen thousands of contracts when there’s real need to act on the critical information that contracts possess. Contract lifecycle management (CLM) systems are designed to help companies store and act on critical information that contracts have. They store metadata and actionable information in a way that prioritizes proactiveness, visibility and organisation. Not only do they allow for a single place to securely store contracts, they assist greatly by facilitating collaboration between different functional teams to ensure integrity and thoroughness of your contracts. Read on to learn about the several ways organizations benefit from an Enterprise CLM. Organizational agility Taking advantage of the cloud, Enterprise CLMs make it possible for contract managers to take their work with them, wherever they go. Apart from being highly scalable, the contract repository has uptimes of 99.9% if services like Azure are used, making them highly reliable for enterprises. CLMs that come with Contract Discovery enable organisations to extract key data from contracts without manual reading. When integrated with CRM and ERP, users are able to obtain customer and counterparty data without changing applications, thus creating a seamless experience. Security to your contracts Enterprise CLMs have built in measures for disaster recovery that ensure security to the organization’s contractual assets. Integration with your organisation’s Active Directory...
5 Major Benefits of Contract Discovery for an Enterprise

5 Major Benefits of Contract Discovery for an Enterprise

Contract Discovery in Contract Management Organisations have to deal with huge volumes of contracts and no way to know exactly what obligations, milestones, renewals each one has. This is where “Contract Discovery” comes in to the picture. How will one find out how many of the contracts comes under GDPR jurisdiction? Contract discovery is the answer for this. Searching relevant information kept hidden in the contracts and analysing it for generating revenue for the organisation is the goal of having contract discovery. One of the biggest issue which contract management software users comes across is “searching” through the contracts/documents various drives, repositories etc. Contract discovery is the most wanted features in these aspects today. As to manually search across thousands of contracts for a single metadata or phase or clause is just not possible. This would also decrease the chances of missing out a very important date, milestone etc. Contract discovery cannot be ignored as it will help you find out hidden revenues within the contract to generate opportunities to save them. For example policies saying about pre-renewal benefits cannot be remembered for thousands of contracts, this is resolved in a much more efficient and simpler way using contract discovery and analytics. Benefits of contract discovery & analytics 1. Extracting contract from multiple sources and bringing it to centralized repository Contracts kept at various locations and in various formats, it can be searched through a keyword/phrase. Which can further be moved to one repository for tracking obligations, milestones etc. 2. Extracting essential metadata from contracts The extracted information can be categorised based on clauses, combination of clauses etc. Which...
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