In recent years, the realm of contract lifecycle management has changed immensely. Organisations of all sizes are faced with the challenge of juggling many contracts at the same time, each at a different point of the contract lifecycle. They must constantly analyze and enhance their contract-related operations to keep up with evolving business needs and the digital landscape.
In order to overcome these challenges, organisations are now adopting automated contract workflows that facilitate virtual contract collaboration and intelligent workflow. The best practices of contract lifecycle management are always evolving with innovations at its centre. Here are 7 contract lifecycle management trends to observe in 2022 and beyond.
1. Digital transformation at a faster pace
Businesses now have the framework and tools they need to effectively manage their operations and ensure compliance. This allows them to respond faster to the challenges and issues that have arisen in regards to contracts, from its creation to final execution.
Automated contract workflows are equipped with eSign integrations to execute contracts conveniently. Several businesses, for example, have on boarded an e-signature solution to make working remotely easier. This largely helps businesses to reduce time-consuming, paper-based contract management procedures.
2. Organisation wide expansion of automated drafting
One of the main pain points for managing contracts is the amount of manual involvement needed for smooth functioning. Automated contract workflows are a significant improvement on manual contracting processes. The Smart Clause Suggestion function is an expansion of automated drafting that allows more than just boilerplate legal contracts to be prepared instantly by analysing consumer behaviour patterns.
Incorporating smart clauses in contract workflows can enable businesses to reduce risk, tighten regulatory compliance, and increase productivity for organisations when it comes to contract management.
3. Contract analytics to enhance business performance
70% of company operations are governed by contracts. As the business world becomes more dynamic, contracts will need to be evaluated and changed more frequently. Smart contract analytics can boost the company’s ability to react rapidly to a changing regulatory environment. It helps reduce risks and improves transparency throughout the most complicated business transactions and procedures.
Executives use smart contract analytics to anticipate gaps or obstacles in contract performance, allowing teams to interact more seamlessly and strengthening corporate relations.
4. Using artificial intelligence to analyse legal risk
Companies may use smart algorithms to assess contract risk, as well as gain insights that help them manage risks and make better decisions. Failure to meet contractual obligations is risky and prevents a company from taking advantage of opportunities coming its way. Furthermore, it causes loss of business and reputation.
Artificial intelligence (AI) enabled tools can be deployed to track contractual performance and enhance predictability in business operations. CLM’s automated solutions assist companies in identifying contractual obligations and tracking any resulting deviations.
The contract status is immediately updated, digitally signed, and eStamped with SignDesk’s CLM software.The complete contracting process is streamlined in real-time, which cuts the time – to – market from days to minutes.
5. Creation of a smart audit trail for automated compliance
Smart contract lifecycle management produces a digital audit trail for all contract activities, allowing for frictionless compliance. Contract compliance audits can help streamline all verticals across a company, from purchasing to accounting to operations.
CLM’s solution for centralised storage of contracts makes it easier for companies to keep a track on all their paperwork. This system not only aids in the preservation of activity records and versions but also the creation of more intelligent audit trails.
Furthermore, it significantly reduces a company’s risk exposure by expediting processes and executing contracts with greater accuracy.
6. Refined visibility on contract performance
Contract managers are continuously in search of technology that can detect variances in contractual performance.
AI-driven solutions that can detect deviations from stipulated agreements and commitments will be highly sought after. CLM solutions enabled by AI are expected to result in improved ability to manage renewals and stronger, more productive collaboration amongst stakeholders.
7. Effortless integrations and customisations
Companies often face challenges to integrate additional technologies that help streamline their business workflow. Companies will gain an advantage by onboarding a user-friendly and well-integrated CLM solution that is compatible with other in-house apps and software solutions of the company.
The need for automated contract workflows is being fueled by growing demands for agile solutions that are easy to integrate and equipped with AI enabled tools such as e-signatures, smart contract analytics and clauses. The use of automated contracts can result in better compliance monitoring, greater transparency, and reduced turnaround time and resources. Investing in automated contract workflows to facilitate faster digitalization and execution of contracts, should be at the top of every business’ priority list for 2022.
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