TOP-5 CLM Software Tools 2022 Not to Miss
CLM (contract lifecycle management) software is booming in popularity as of 2021, and it’s really no surprise why; the need for contract lifecycle management software has always been present, but COVID-19 has forced many businesses to switch to digital.
Not only are contracts becoming more complex but the volume of contracts has given birth to new trends in CLM software tools as well.
CLM Solutions: Trends
Online contract management was once a widely unknown genre of software that was little-used yet greatly appreciated by businesses who were quick to incorporate it into their business operations.
Now, it appears as though the majority of modern businesses use CLM solutions to help manage the copious amount of contracts they must manage every single day.
The benefits of CLM software solutions are endless; contracts are safer than ever before, no longer stored in file cabinets but now hidden in password-protected software. No more packed-full file cabinets are necessary, either – now, thousands of contracts can be saved within a ‘cloud’.
CLM software solutions improve the efficiency of contract workflows, automate processes that were once done manually, and reduce (or completely eliminate) most human-caused errors thus cutting costs down and saving precious time to focus on more important tasks at hand.
This year has seen new trends in CLM systems that help with the complete contract lifecycle, from start to finish. Before, many CLM software solutions offered tools focused on particular stages in the contract lifecycle; now, however, because of the pandemic, these CLM solutions support the entire contract process.
Here are some of the top five tools that are trending in CLM software:
Easy Contract Requests & Approvals
The request and approval stages of the contract lifecycle can be difficult; dealing with multiple parties, different teams, and various business locations is a process in and of itself.
Many of the problems associated with the contract request and approval process are fixed by the best CLM software solutions.
With CLM solutions, there is no question as to what needs to be approved and by whom it needs to be approved – the guessing game is eliminated, and every involved party in a contract is instructed as to exactly what action is required of them.
Notifications and alerts streamline the process of contract approvals, as well as updates about any changes in the chain of approval.
Automated Contract Assembly
Automated contract assembly is another major trend in CLM software solutions.
With this tool, contracts are generated and created automatically; no more manual drafting, thus decreasing labor hours and freeing up time.
With CLM systems, contract assembly helps businesses create compliant and accurate contracts from templates and past versions of contracts. These templates can be modified in order to stay up to date, making the contract lifecycle stage of contract creation as easy as possible.
AI in contract management.
Currently, a contract’s lifecycle is incredibly complex — there are stipulations, licensing deals, renewals, clauses, deadlines, etc. In some cases, contract management might mean companies need to create whole departments whose only objective is to oversee these agreements. Thankfully, thanks to CLM software, and platform, as well as applications, companies can now edit out some of the costs associated with this pivotal task.
Today’s contract lifecycle management software software is evolving, and one of its biggest changes is the incorporation of AI — leveraging machine learning principles, key algorithms, and artificial intelligence in order to have more efficient control over their contracts.
AI in contract management has been dynamically created to allow professionals to focus solely on making informed decisions and strategizing on priorities and goals with a better understanding of the inherent risks, vulnerabilities, dangers, and pitfalls of a contract. AI helps professionals negotiate terms better by giving them a more comprehensive POV on the relationships they are signing up on, or signing others into.
AI contract review allows organizations to tackle difficult problems, more effectively and efficiently thanks to complex, flexible, smart algorithms. Currently, the AI revolution is taking the business world by storm, allowing automation to become something natural, and permitting companies to make more informed decisions. AI can be found in just about every business software application available and has become commonplace in contact management and analysis. Not only that but with the advent of smart contracts – particularly those that take advantage of blockchain tech and protocols – AI tech will stop being something optional for companies to become something mandatory and compulsory.
Contract Negotiation Automation
Thanks to the trending CLM software tool of ‘contract negotiation automation’, constant back-and-forth communication between departments is no longer necessary.
With this CLM system tool, collaboration is made simple; tracking is automatically logged so that all edits and modified contracts are available for recall at all times. What this means is that less time has to be spent focusing on the meticulous details of negotiating contracts and more time spent on actually negotiating.
Relevant contracts and documents are also able to be viewed by all involved parties; also, approval collaboration can occur in a centralized location in order to reduce delays.
Urgency and speed
Today, everything is happening at lightning-fast speed — The slightest delay might end up costing a company millions in revenue. This is true for almost every aspect of modern business. If you fumble the ball, you either lose the game or watch in amazement as someone poaches it right out of your hands. Urgent contract reviews, urgent contract editing, urgent contract signing, urgent contract everything is right now a major trend. Companies are fighting tooth and nail for whoever has the fastest and most reliable process.
Due to the advent of apps, and open-source software, as well as top-shelf API, and premier coding, the best contract lifecycle management software has become a one-stop shop for all your contract needs. Modern applications are all about precision, speed, and incorporating as many doodads and features as humanly possible into one all-encompassing software.
Everything is meant to work in unison with everything else. Sort of like your cellphone, full of apps that can connect to one another and provide a perfect suite of highly synchronized experiences — and each every one of them, from that dashboard, with one goal in mind, speed.
Edit, conclude, renew, sign, payout, and even do taxes, from a dynamic quick as a whip CLM software interface.
Digital contracts transformation
If you’re still working with pen and paper, then you might as well start taking survival advice from the dodo. If it’s not digitized, if you haven’t taken the leap and embraced the digital contract transformation trend, then you’re just asking for a world of hurt.
Digital contract transformation permits corporations, firms, businesses, and boutique mom-and-pop shops to digitize their contracts and have more efficient control over their lifecycle. They allow companies to manage every single bit of data when it comes to their contracts. Digital transformation has slowly become the pillar of most business — and contract management is just a smidgen of that whole roll-out.
Why is a digital transformation of a contract’s process fundamental?
Aside from the fact that it will give you better and faster access to contracts over multiple channels, a digital makeover also allows you to automate your contract’s overall workflow. This makes it possible for parties to track changes, and input features, and have more control over every aspect of the contract in a seamless manner. Without the need for constant hand-holding.
If your contracts are still on paper, then you’re missing out on ways to grow your business. On ways to get great metrics on your expenses and your contract’s demands. On ways to better your practice. Ultimately, a digital transformation of your contracts and all they entail is needed because everyone is doing it and reaping the rewards. This includes your competition.
Contract Obligation Fulfillment Observance
The tool of contract obligation observance is included in the best CLM software solutions.
Automated alerts, approval routing, task escalation, and notifications all help teams fulfill their specific contractual obligations – this workflow makes it easier for teams to keep up with their side of the contract specifics.
Compliance & Auditing
Compliance and auditing tools are very useful features found in CLM software, and it makes sense why they are becoming increasingly common.
These tools give teams the ability to look at their contracts throughout the entire business – this means compliance standards are more easily met.
Renewals and key dates are more easily monitored, and metrics can be summed up in a report with only a few clicks.
Why Your Business Should Use CLM Systems
CLM software solutions are no longer a bonus but are now a necessity for any business that deals with contracts throughout daily operations.
These CLM systems streamline the entire contract lifecycle process and allow businesses the ability to manage contracts much more efficiently, preventing legal complications and missed deadlines; the benefits of this software can take your business to the next level and grow exponentially, as it has done for many around the world.
Before investing in software, make sure to conduct diligent research on CLM software vendors and reviews.