Legal Process Outsourcing
How advanced contract management solutions prepare your business for the future?
From paper contract tracking and email negotiation to AI-enabled and analytics-based solutions, Contract Lifecycle Management (CLM) has come a long way. Technologies such as blockchain, predictive analytics, and Artificial Intelligence (AI) have become the cornerstone for future-proof contract management, along with contemporary contract management software that ensure security and compliance.
Digital contract management technology optimises workflows and processes, which prepares a business to negotiate faster, delight the client or vendor, and surpass the competition in speed and agility.
This article discusses the critical traits of advanced contract management software and how it prepares your business for the future.
Key characteristics of an advanced contract management solution
Businesses have to navigate complex regulations and market dynamics, and depending on legacy CLM technologies is no longer sufficient. The following CLM system characteristics prepare your business for the future:
Intuitive and user-friendly UI
A well-designed layout makes the contract lifecycle management software intuitive and user-friendly and smoothens the learning curve. They allow easy access to the tools required to draft, negotiate, approve, and finalise contracts. A dashboard provides the contract overview, execution milestones, and upcoming tasks for an exceptional user experience.
Robust CLM processes and outcomes
From new requests to creation, negotiation, approval, execution, and renewal, robust contract management software covers every stage of the process. It uses automated workflows and templates for different industry types and situations to reduce the time spent on data entry, analysis, and document generation. The ease of monitoring the contract’s performance using the system’s tracking and reporting features ensures you never miss a deadline or compliance requirement.
Scalability and configurability
The contracting requirements of a manufacturer could be different from those of a logistics business. Irrespective of the industry type, you can tailor the contract management software to suit your needs. This includes custom templates, pipelines, approval workflows, automated and AI-driven features, and reporting structures. A no-code system scales easily and future-proofs your business as it grows.
Analytics and reporting
Without advanced contract management that includes analytics and reporting, your business is at risk of running blind and may not be able to measure its success compared to the competition. Metrics such as contract cycle time, renewal rate, annualised contract value, contract statuses, etc., give you a winning edge against your competitors.
How does a CLM solution prepare your business for the future?
The right CLM solution with the essential characteristics mentioned above prepares your business for a future of growth through competitive pricing and faster execution. Here is how advanced contract management benefits your business:
Streamline the contracting process
Developing an effective contract lifecycle management system requires phasing out manual approvals, inefficient workflows, and information silos. Streamlining the process with contract management technologies reduces the number of lost contracts due to delays and errors that can directly impact business profits. Standard templates allow your team to quickly create initial drafts, track changes through version management, get faster approvals through automated workflows, elevate the client and vendor experience, and reduce the risk of losing business.
Get a higher visibility across contracts
A central repository with access control features gives the stakeholders across departments quick access to a single source of truth. You can monitor the contracts in real time and access critical data and metrics. Better communication and collaboration across departments and stakeholders drive better decision-making, negotiation, and contract performance.
Mitigate risks and comply with regulations
It is difficult for global businesses to monitor and comply with the regulations of each region without powerful contract management software. For example, the manufacturing laws in the EU could be different from those in Asia. To future-proof global contracting, businesses must dynamically adapt contract terms against industry regulations and standards. A CLM raises automatic alerts for pending actions and non-compliance and saves the company from legal disputes.
Lower costs and drive efficiency
Older contract management technology can cost a business valuable time and money. The contracts are prone to human errors and missed deadlines, resulting in lost business opportunities to competitors. Automated contracting systems and processes save dollars for the business in the long run.
Environmental, social, and governance considerations
Sustainability and corporate social responsibility are increasingly becoming an essential part of any business and influence the client’s decision. A CLM system ensures that your contracts reflect these values through specific and measurable actions you consistently take to make a positive economic, social, and environmental impact. This includes declaring and meeting sustainability targets, ethical sourcing, and promoting diversity and inclusion.
How can Infosys BPM augment contract management technology?
The next-generation enterprise-class contract lifecycle management solution from Infosys BPM enforces compliance, leverages volume discounts, manages obligations, and reduces legal risks.
Know more about the Infosys BPM contract management lifecycle solution.
