Exploring the Future of Contract Management with Icertis

⇨ Businesses must do everything in their power to execute their contractual agreements in a timely manager while minimizing compliance risks

⇨ As the number of contracts stack up, it is becoming increasingly difficult to manage them manually.

⇨ Icertis recently conducted a comprehensive study to help shed some light on some of the emerging trends in the CLM space and highlight best practices.

AI has proven to be an effective tool in many different aspects of daily workflows for SAP organizations. One of the most effective areas where AI can be deployed is in contract lifecycle management (CLM). As companies grow in size and change operating locations, their contracts can stack up and become cumbersome. Finding the right CLM platform can help execute contracts more accurately and efficiently.

The CLM experts at Icertis recently conducted a comprehensive study to help shed some light on some of the emerging trends in the CLM space and highlight best practices. The State of Contract Lifecycle Management (CLM) Report offers readers dozens of key findings and looks ahead into the future of contract technology.

“Investing in the right platform is critical for enterprises to stay ahead in their industries. This vital resource is designed to guide organizations at various stages of their CLM journey by synthesizing crucial trends, insights, and challenges from the last year that have shaped business-wide transformation in today’s dynamic landscape,” said Bernadette Bulacan, Chief Evangelist at Icertis.

Exploring the Future of CLM

Icertis found that one of the main challenges in the CLM space is how widely spread the responsibility for a given contract is across an organization. The report found that 29% of an organization plays a role in contract management, whether that is send the statement of work to a vendor, executing the contract’s stipulations, or reviewing the contract for compliance issues.

If contracts are not stored in a centralized environment, this can lead to miscommunication and essential provisions of an agreement can slip through the cracks. The CLM space certainly has room for improvement, as over 80% of survey respondents rated their CLM maturity at a 3 or lower on a 5-point scale.

Improving CLM is often easier said than done. Dealing with the sheer volume of contracts, particularly at larger companies, provides a significant barrier to improving CLM practices. With such a large share of the organization involved with contracts, any initiative to improve contract management requires resetting expectations and workflows from nearly one-third of workers.

To overcome these challenges, AI is becoming an increasingly important piece of the CLM puzzle. The vast majority of contracting leaders are positive about the opportunity of AI to help analyze contracts for risk and compliance issues, not to mention the time it will likely save them.

Conclusion

Businesses must do everything in their power to execute their contractual agreements in a timely manager while minimizing compliance risks. As the number of contracts stack up, it is becoming increasingly difficult to manage them manually. Many SAP organizations are turning to contract management platforms like Icertis to leverage AI, develop a centralized source of truth, and mitigate compliance risks.