Contract Lifecycle Management Software Trends And Features To Look For In 2022
Contract management has been quickly evolving in recent years, meaning that businesses need a comprehensive solution to keep up with the complexities of today’s agreements. If you want to truly benefit from contract lifecycle management software, your company must understand the latest trends, functions, and features of an all-in-one CLM software and choose the right one.
What is contract lifecycle management (CLM)?
Contract Lifecycle Management (CLM) tracks and controls every aspect of a contract’s performance, compliance, and other milestones. The contract management process begins with the proposal or request for a contract and continues through the delivery of the specified good or service and renewal. A robust CLM process helps firms maintain a disciplined approach to managing agreements, reducing risk and increasing the likelihood that critical contracts work as intended.
What is contract lifecycle management (CLM) software?
CLM software automates the process of contract management by creating a workflow to digitize, distribute, and deliver agreements on a single platform. Some CLM solutions address every aspect of the contract lifecycle, while others provide a cost-effective approach to influence select aspects of the process. There is no one-size-fits-all CLM solution because every company faces various issues, has different goals, and has varied budgets. Therefore it’s essential to choose software that meets your needs.
What does all-in-one CLM software mean?
All-in-one contract lifecycle management software is a system that handles every stage of the contract management process in one place. This means that your documents are created, stored, and managed on the CLM interface so that you don’t have to search for specific contracts and send them back and forth between various business solutions.
Key CLM software trends for 2022
This year has brought great technological advancements to the modern business world. One of the most beneficial changes is improved contracting through all-in-one CLM solutions.
Here are some of the key contract management trends to keep an eye on:
Using Web-Based Contract Management Software for Remote Legal Operations
Today it is essential for organizations to be able to operate remotely. Therefore, a business’s contract management practices must constantly develop and grow to handle more remote legal procedures.
Fortunately, top contract management software solutions have greatly aided firms in various industries, both public and commercial, with remote operations.
Remote contract management solutions provide:
- A secure contract repository that stores and protects contracts, essential papers, and contract data in one place.
- Smart contract workflow automation.
- Software procedures for contract lifecycle management, vendor management, eProcurement, and eSourcing.
- Seamless electronic signature software for signing quickly online. Mobile applications for managing contracts on the go.
Adopting and implementing web-enabled CLM is the ideal option to facilitate remote contract cooperation.
Fast Web-Based Document Editing
Contract collaboration and contract document editing have been profoundly impacted by the necessity for enterprises to provide remote contract management activities. Fortunately, firms may use innovative contract management software to collaborate on agreements online.
With web-based document editing, businesses can:
- Create new documents from agreement record pages.
- Import new.docx and.pdf documents directly to the contract record information page.
- Edit documents inside a contract record information page seamlessly.
Organizations may simply introduce clauses from their pre-approved clause library throughout the document editing process. Files are then attached to the relevant contract record information page, and further document revisions are logged as updated versions.
Building CLM software on AI with machine learning
A straightforward way to modernize your company is by using new AI business solutions. Natural language processing software, for example, allows you to quickly examine huge numbers of current agreements, allowing you to identify and improve obsolete or hazardous text with little to no manual work.
Contracts will need to be reassessed and reconfigured more frequently as the corporate world becomes increasingly diverse. Enhancing your capacity to adapt rapidly to a changing regulatory environment reduces risks and improves visibility throughout even the most complicated sales, mergers and acquisitions, or procurement procedures.
Improved data privacy
Organizations must understand that the benefits of data privacy extend beyond the legislative context, given varying standards across borders and a rising number of cyber assaults each year. Organizations require a simple approach to remain on top of developing (national or regional) trends so that existing policies may be promptly adapted or changed.
Compliance with data privacy requirements ensures legal conformity, and it creates consumer trust while protecting your company from internal and external security risks. Contract management AI, electronic signatures, and other digital contract lifecycle management (CLM) capabilities may enable contact management experts to address data protection problems in any business efficiently.
Environmentally friendly contract lifecycle management
Climate-aware contracting is increasingly becoming a popular way to address businesses’ rising environmental effects. Part of the battle here is figuring out what’s in your present agreements—finding contracts and provisions that deal with (or don’t deal with) climate-driven rules.
Legacy contract administration systems rely on paper-intensive processes, which are eliminated by digital contract technology. The environmental effect of the agreement process is decreased when paper is removed from the equation.
The most beneficial contract lifecycle management software features
There are countless CLM companies on today’s market since its recent surge in popularity. However, many businesses looking to invest in a CLM solution rarely know what features they need from the software.
Here are some of the best contract lifecycle management software tools to look for:
All relevant users have quick and simple access to crucial papers and data using cloud-based contract administration software. Teams can see contracts, organize information, maintain contacts, initiate contract processes, collaborate on documents, and track contract progress on one platform.
Automation and customization
Businesses may develop standardized templates they can update and tweak according to their needs using contract automation. These templates can also be used as parent formats, allowing for the production of comparable but distinct variants. This assures uniformity and streamlines the process so that contract formation is a quick and error-free procedure.
A contract management system is not smart enough to construct contracts from fewer data points unless it can intelligently apply provisions to distinct contracts. As a result, search for applications that can integrate with clause library programs or come with one built-in for even more convenience and versatility.
Centralized negotiation and collaboration
Negotiations use the most energy and time during the contract management lifecycle. It’s a never-ending search for a happy medium where all sides can share a sense of accomplishment. A contract management system makes this process simple, quick, and efficient. With increased contract and clause visibility, all teams can negotiate on the same system, resulting in faster approvals and implementation.
Live edit tracking
Every little tweak and change counts when it comes to critical commercial or legal papers. A crucial element of the contract lifecycle is ensuring that all changes are made correctly by the appropriate authority. When looking for a contract management platform to subscribe to, seek one that provides transparent, real-time, and cross-platform visibility of contract modifications to ensure your contracts are not tampered with.
Why choose CLM software that matches these trends and features?
Organizations must pick a CLM solution that they have the capabilities for 2022 and beyond to handle the increasing difficulties of the COVID-19 pandemic, the evolution of digital transformation, the demand for remote work, and any other changes that may come down the road.
Some benefits of choosing a CLM software that matches 2022’s top trends and features include:
Shorten approval times
Contract management software automates your contracting procedure fully. You may rapidly scan all contracts to get a better picture of the current state of things at your firm by establishing a dynamic workflow to-do list. Based on this information, you can email relevant parties to remind them of upcoming steps or build escalation processes.
Increase contract visibility
You may ensure that your team is working with the most up-to-date contract templates and provisions by centralizing the contract repository. You may also empower your mobile workforce by providing them with a password-protected website where they can access the platform. As a result, all authorized staff members have access to the most recent contract templates and terms from anywhere.
Contract accountability is provided via a simplified business procedure. Every contract is subjected to compliance requirements from request to approval. Because contract management tools like our Express and Premium packages integrate natively with Microsoft Word, you can track changes by user and keep track of version control. This guarantees that no crucial provisions are left out and that the document has been amended appropriately, giving you the control you need over your contracts.
How to tell if you need contract management lifecycle software
Even if you think your business has a lock-tight management process, the chances are that you still aren’t realizing the full potential of your contracts without CLM software.
If any of these issues sound familiar, it is time for your business to automate its contracting process:
Expiring contracts can cost your business a lot of money. When a contract expires and a client transfers to a new vendor, not only is there the risk of losing revenue but expired contracts can also prompt renegotiation, which may result in less favourable terms. By proactively reaching out to clients to renew their contracts with the correct contract management technology, you can drastically enhance contract renewal rates and avoid contract expirations.
Lengthened contract lifecycles
While it is critical to ensure that contracts are proper and that all relevant departments have approved the language and terms, you may not always have the luxury of time. If you require an NDA for a possible client or investor, for example, you may miss the chance if you have to wait ten business days for it. Using a contract management platform with self-service contracting via a template library may speed up the procedure.
Errors in the contracting process
It’s normal for mistakes to occur when contracts are shared by email or on a shared disk. Imagine pulling the wrong version of an agreement and making changes before sending it out — only to realize your error and have to start over. Such scenarios are time-consuming and raise the risk of faulty contracts, which might be costly to your business. A contract management solution guarantees that everyone is working on the same document version and that any modifications and redlines are tracked for a complete and current audit trail.
Lack of insight and visibility
Often, examining contracts for particular information takes weeks or months of laborious labor, in which your legal team looks at each relevant contract to extract the information required. This is time-consuming, expensive, and prone to mistakes and omissions. You can simply evaluate your contracts and gather critical data with just a few clicks with a contract management platform that incorporates AI-driven insights, allowing you to gain the most value from your contracts.
How to choose the top contract lifecycle management software in 2022
Finding the proper contract management system is increasingly becoming the easiest way to cut operating expenses, enhance productivity, and remain one step ahead of client expectations as technology—and your clients’ expectations—evolve.
When choosing the best CLM for your business, there are many factors to consider.
Here are a few essential ones:
- End-to-end automation.
- A centralized contract repository with search capabilities.
- Smart analytics and data insights.
- Fits your needs in terms of future growth.
- Robust security measures to protect your sensitive information.
- Fits in your business’s budget while still providing beneficial features.
Even though contract administration is an important aspect of every business, many organizations still use old, inefficient paper-based contract management or a substandard digital version. However, when your company implements a comprehensive contract management solution, it can minimize risks, streamline administrative procedures, and pave the way for growth via a single platform.