Let’s say you missed a delivery deadline, or an early settlement discount, or an opportunity for a bonus – all of which were specified in the contract. Any of these errors could hurt the bottom line in business. Could you justify leaving money on the table, because someone in the organization was not aware of a contract clause? Of course not!
Nevertheless, too many organizations still retain thousands of active contracts they cannot readily access or retrieve often because contracts are scattered in several locations. And the danger of this risk remains invisible until it leads to an embarrassing loss. Not having the ability retrieve critical data from your contract documents can easily result in lost opportunity, value leakage and loss of revenues.
It’s so easy to avoid if you simply migrate contracts from ordinary storage – both paper and electronic – into a structured, searchable database that a new Contract Lifecycle Management (CLM) system can provide. CLM allows all empowered staff concurrent access to leverage the contract attributes and optimize business advantage. The key benefit is the ability to get information quickly when you need it from your CLM database.
SEVEN BENEFITS OF MIGRATING
Accessing information successfully is vital to avoiding risks and taking advantage of opportunities for gaining revenue and controlling cost. Normally, staff looking for
At one time storing data and retrieving it was difficult because every contract was different. Obligations and language varied from contract to contract and the contract content too often did not fit into the computer formats easily.
But that changed when modern data extraction technologies emerged. Data from dissimilar contracts can now be extracted and distilled into searchable files with 99.99% accuracy, a reliability factor never before reasonably achieved. These technologies, when married into a retrieval and migrating process, provide untold benefits to organizations that use a systematized structure of managing contracts.
Having a CLM in place is critical, but, again, it must contain all the essential contract data you need in an accessible format. Your present CLM might need updating to ensure you get the following benefits:
- Single and unified repository
- Insight into key provisions at fingertips
- Identification and mitigation of risks
- Management Reporting
- Access to all financials in one place from multiple concurrent locations
- Better informed decisions
1 - Single and unified repository
The first and foremost advantage of systematic management of contracts is obtaining visibility and access to all contracts in one single platform from multiple locations. This enables organizations to locate any contract in
2 - Insight into key provisions at fingertips
As part of this process, contracts are first structured in a pre-defined pattern before they are uploaded onto a CLM. This structure involves mining key provisions from all contracts – which are put on a “short list” based on needs of the organizations and members referring to these systems. This enables users to gain insight into
3 - Compliance
A contract consists of many commitments made by the parties to each other. Having key provisions shortlisted makes it relatively easy to satisfy compliance requirements quickly and efficiently. Being aware of contractual obligations is
4 - Identifying risks
With visibility and access
5 - Reporting
Another major advantage of this system is its ability to program triggers for actions that are critical to business and thereby require urgent attention. These triggers could vary from industry to industry, but some which are common to most include – upcoming renewals, milestones
6 - Access to all financials under one roof
One of the most essential elements which invariably forms part of this structuring process is mining financial data from contracts. Unsurprisingly, revenues are often lost to industries simply because they are unaware of the exposures to loss, or to an opportunity for revenue. Proper mining
7 - Better decisions
Being better informed through accessible, organized information means having the ability to make
Good business sense
Migrating all your contracts is essential if the risks are to be mitigated and the opportunities optimized. The legacy contracts hold essential attributes in the same way as the new
ABOUT OUR AUTHOR
Samir Bhatia, Founder of Brightleaf Solutions, is an experienced entrepreneur with a strong
ABOUT BRIGHTLEAF SOLUTIONS, INC.
Brightleaf delivers Artificial Intelligence (AI) powered solutions for data extraction from contracts using their own proprietary semantic intelligence and natural language processing technology.
Brightleaf was voted one of the top five data mining companies, and the only one in the legal space.
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- This article is an edited version of the original piece titled 7 Reasons to Load Your Legacy Contracts into a New Contract Lifecycle Management System has Copyright © 2017 by Brightleaf Solutions, Inc. Brightleaf and the tri-page leaf logo are trademarks of Brightleaf Solutions, Inc. Other marks are the property of their respective owners.
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