Harvard Business Review cites that inefficient contract management is causing organizations to lose up to forty percent of the value of a given deal owing to the challenges encountered. Inefficiencies of traditional contract management technology have led to several issues like missed deadlines, compliance and regulations violations, missed renewal dates and renegotiation terms, difficulty in finding and retrieving contracts, liability of errors due to paper-based processing of contracts.

For example, organizations will not be able to see how complex outsourcing agreements were written in the past or view how a certain clause was written across different divisions without a central base of contracts. It takes an enormous amount of manpower for businesses to create, edit and finalize contracts. Organizations also face difficulty in organizing, managing, and updating their numerous contracts.

By leveraging contract management technology, businesses can overcome challenges related to contracting. In the near future, it is extremely important for businesses to have effective and efficient contract management. Contract Management Software Gartner reports 2019 states that manual effort for contract review will be reduced by 50% by 2024, due to the adoption of AI-based contract analytics solutions. Ninety percent of multinational global enterprises will have contract lifecycle management solutions implemented by 2023.

In this article, we will see how 3 major trends technologies are helping the world of contract management and the evolutionary stages of ECM (Enterprise Contract Management Software).

  1. Trend # 1 – Digital Transformation

    Many organizations had implemented a CLM (Contract Lifecycle Management) solution to automate their current contracting processes. However, this CLM solution was specific to their respective departments – procurement, legal, sales, etc. The fragmented approach frequently results in inefficient process workflows and deployment of multiple Contract Lifecycle Management tools creating frustration among users.

    This challenge was overcome with ECM software technology that helps manage all contracts on a single technology.

  2. Trend # 2 – Enterprise – Level CLM Software deployment

    Enterprise contract management allows organizations to put all of their contracts into a single system for holistic development —sales, procurement, HR, legal, corporate, etc. With enterprise contract management, automated systems replace the inefficient methods of manual contract management systems and streamline the process. By managing all contracts on a single contract management technology, different teams can gain a holistic view across all the company’s contracts for improved analytics, better workflows, and reduced risk.

    By implementing enterprise-wide, cloud contract management software like DocuCollab, businesses can dramatically improve contract management processes. This software automates workflows to speed up cycle times and alerts to ensure commitments and milestones aren’t missed.

    Enterprise-level CLM tools gained popularity as it helped cut costs, generate substantial revenues and minimize business risks.

    Click here to read 5 sure ways to convince your boss to invest in a Contract Management System

  3. Trend # 3 – AI (Artificial Intelligence) in CLM

    AI is increasingly seen to dominate the future of contract lifecycle management technology, where automation could significantly improve security, reduce risk, and streamline workflows. ECM software enabled with AI will become evolved from being a simple repository to a system that is live and making sure contracts are created properly, executed properly, managed properly.

    According to `Global Enterprise Contract Management Market – Trends Analysis Product Usability Profiles & Forecasts to 2023’ report`, CLM is estimated to triple in value within the next six years and AI will be the key factor for this development. AI-powered CLM systems are changing the way businesses function.

    In conclusion, the future of contract management looks productive, where the aid of technology and expertise is expected to reshape processes. Specifically, cloud based contract management software is slowly yet steadily occupying the center stage. Such advances in the contract management field are adding value and importance to a process that was previously considered laborious and expensive. Soon, we can expect a world where tech-aided contract management processes are common, cost-effective and beneficial for the company.

    The future for AI and machine automation in CLM is bright and businesses need to clearly understand the value of optimized processes across the contract lifecycle and should be more prepared to use emerging AI capabilities to their full advantage.

    Click here to read How Contract Automation is changing the Business World?

    We at DocuCollab are focused on developing software that helps companies transform their contract management processes. Many enterprises have used cloud-based DocuCollab contract management platform to gain better insight into and control over their contracts. Now with AI, these contracting abilities will rise to a new level of efficiency, insights, and productivity.

    By taking advantage of DocuCollab`s CLM Solution powered by AI, customers can start optimizing, organizing, and customizing CLM today so they are ready for the AI technology of tomorrow.