Opportunities for Digital Transformation in Contract Management
We have covered the reasons why digital transformation is crucial for corporate growth in previous infographics. This week, we'll talk about how contract management can benefit from digital transformation.
Most organizations place a high priority on contracts. Each contract's establishment brings individuals, goods, and services into an organization that is then distributed to its clients. Contract management typically involves a lot of manual tasks, which means that the workforce must visit the office of their employer to access the tools and data required to handle the relevant contracts.
Companies may encounter shortages due to illness or travel limitations brought on by the pandemic due to the increased demand for the number of workers managing the contracts. Digital transformation can help in this situation.
To reduce the workload of these high-level tasks and eliminate the need for human involvement during contract development, digital transformation can optimize and automate manual activities and processes. This is a tremendous assistance for legal teams that spend a lot of time on their NDAs.
In contract management, there are two key potentials for digital transformation.
- System Upgrades
The system of a contract management application can be continuously modified to add functionality and improve capabilities. As a result, the program offers its customers fewer activities that require manual labor and more automated operations.
The following capabilities can be found in the contract management platform's system:
- AI for contract data classification, analysis, and discovery
- Automation of processes via workflow and Robotic Process Automation
- Centralized repository for contract documents
- Template and clause libraries
- Electronic signatures
- Critical date alerting
- Online contract negotiation
- Self-service facilities for suppliers and system users
- System Integrations With Key Partners
When pertinent data is required, the contract management system can also be used by interacting with other systems. Since this eliminates the need for manual data collection and entry, the ability to link with other software systems and organizations will be a big benefit.
The company's platform for managing contracts can collaborate with other software companies that have the following characteristics:
- Financial system
- Risk management system
- Supplier management system
- Customer management system
- Enterprise resource planning system
- Third-party services provided as an external platform or a direct data feed, like:
- AI services, like clause detection, contract analysis, and obligation discovery
- Regulations tracking, showing changes to regulations applying to a contract
- Supplier risk advice, showing the financial situation and operational concerns
- Supply chain transparency, showing details of a supplier’s suppliers.
