cloud-based contract management system

The majority of business operations are governed by contracts. Contracts play a vital role in the operation of every business. Even if yours is a small business or a massive corporation it is likely that you will be working with hundreds of contracts . These include partnership agreements non-disclosure agreements, general employment contracts, equipment and property contracts there are many more. How well are you managing them? Do you depend on paper in spreadsheets, documents, or other systems? Have you ever thought of moving to contract management systems? If yes, then this article is for YOU.

contract management

Before you invest in a system for managing contracts, ensure that you study the following seven questions to avoid pitfalls.

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Does the software have AI capabilities?

contract life cycle management

With the large number of contracts, maintaining uniformity of managing contracts as well as retrieving essential information poses a huge challenge. Organizations may not have a standardized method of organizing contracts databases. Think about it, your business is home to several contract types with different renewal dates and renegotiation dates. A group of people may be required to dedicate hours trying to track, review and analyze the data to make sure that there aren't any opportunities left unnoticed. If you opt on an AI powered contract management software, the task is completed in just a few minutes. With Doc.AI capabilities, important information such as contract titles, renewal dates contract terms, and renewal dates are extracted. This allows for easier reviews, approvals and signs offs.

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But that's not the only thing about it. Further, advanced contract administration systems equipped with AI capabilities can assist in reviewing contracts, compare clauses, and sort contracts according to the type of clauses. AI-powered CMS are also a great aid to maintaining compliance with evolving regulations. NLP analyzes every document and highlights the threats and opportunities.

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Are there standard templates for contract writing and editing?

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Writing contracts is among the most challenging tasks. Imagine how difficult it would be to write documents that contain similar clauses such as terms and conditions words, and basically identical content hundreds of times. This is the reason your CMS should have templates that are easy to use and clause libraries that cover a variety of areas. These templates, when approved by your editorial and legal teams, you are able to quickly draft contracts without any grammar or language issues. Additionally, the option to centralize and standardize contract templates means that you can have an all-round view of the contract, which allows you to track the contract's history using customizable filters. You can also interact with peers to discuss their edits, and to store.

What's the potential for ROI? How much money can my business reduce costs?

Savings figures are the biggest persuaders to help you decide whether you should make the investment in a management software or not. A study conducted by Goldman Sachs concluded that an automated contract management system can accelerate negotiations by up to 50 percent, reduce the amount of payment error by 75-90 percent, decrease the expense that managing contracts is between 10 and 30 percent and reduce the number of employees required for contract management up to 20 percent. Indeed, managing contracts can indeed be a cost-effective option, but only if it's chosen wisely.

Ideally, you must consider things like time spent in audits and tracking renewal dates decrease in disputes over contracts creating new opportunities reduced sales cycle.

Is the solution adaptable?

Virtually every vendor in industry claims to offer a solution that is tailored to meet the needs of each organization. But is that always true? Instead of spending money on customization, thoroughly describe the process, critical steps needing improvement, investigate options by asking specific questions.

A good example is: in a typical contract management workflow once the contract manager drafts the documents the system will automatically route the document to the person who approves. Without stopping at this basic function, a modification might be an email message of the document's URL that is sent to the person who approves. This link should be compatible or work on all devices- smartphones, tablets and computers.

But highly customizable software could also make the software difficult and difficult to use, and the simplicity could be too much. Hence, it's always a prudent idea to study the pros and cons and the level of sophistication of the team who will be using the software and then determine how you can customize it.

What are some special features or highlights that can speed up manual processes?

As part of a contract administration system, agreements are saved in a centralized, secure and searchable database with user-based access. This ensures optimal compliance and extensive reporting. For instance, contracts could be easily traced and the procedure of reviewing and signing can be automated through electronic signatures. Another example could be data and analytics. To get information on the time it took an agreement to be negotiated, customers can easily analyze the gaps, analyze the number of iterations needed and make comprehensive reports. This will aid by adding clause libraries, in getting insight into the past performance of the company and decreasing the duration of contract cycles.

Another crucial aspect to look for are contract redlining, also known as editing. Redlining is highlighting the text in order to mark changes, additions deleted, approvals and rejections. This feature is helpful particularly for situations where more than one person wish to work on the same document together. It provides a greater range of flexibility in reviewing and negotiating contracts.

How easy it is to deploy and use?

A contract management application with an intuitive user interface with easy-to-use features will be highly regarded by your customers. To achieve maximum benefit, in the process of deploying, it is best to connect it to existing systems , which will reduce the time spent on navigating between different platforms. For instance, integrating CRM with the new contract software might assist sales personnel to transmit customer information, develop contracts and route them for approval, in addition to being in charge of the expirations, renewals and other dates.

The next step would be to check for the onboarding process. It is ideal if it's an off-the-shelf solution that you are able to begin to live and operational within a short time. Remember that long deployment periods are no longer tenable.

7. Will the data and private information be safe?

Last but not the least most importantly, data security is top priority. Since contracts are highly confidential and sensitive data They must be secured from unauthorized access to earn the confidence of your friends whether they are partners, suppliers or customers. In addition, the increase of security threats and cyberattacks are making companies susceptible to risk of potential legal insolvencies, financial and brand risks. If you're planning to preserve the trust you have built with your most important business relationships be sure to confirm that the provider hasn't suffered any significant security breaches.

Get in touch with our experts via [email protected] to find out the details about our Contract Management Solution.