As businesses evolve, it is vital that their ability to forge partnerships, work with suppliers, gauge risk, and accelerate processes also grows in tandem. Unfortunately, that is often not the case in contracting and commercials management. This is due to the persistent reliance on manual efforts, and therefore process silos when reviewing and analyzing contracts. There is very little inter-connectivity with surrounding systems, which complicates processes, causes errors, and holds back an enterprise’s potential to scale its capabilities. The answer to this lies in a next-gen CLM tool, leveraging an AI-powered e-signature and approvals solution that enables a single pane of glass by integrating with the entire enterprise landscape.
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A typical organization tackling volume-intensive contractual processes will run into a number of roadblocks. For example, historical information residing in your CLM may not be synced with the contractual terms themselves, which are housed in a different third-party application.
This results in the following pain-points:
Admittedly, enterprises are aware of these issues and are keen to prioritize digital solutions that could introduce a new way of doing things.
In a recent survey by Deloitte, commissioned by World Commerce & Contracting, 68% said that digitizing CLM is a medium-high priority. Particularly on the buy side, 93% plan on shifting to a centralized contract and commercial management model that necessitates deeper integrations between systems.
A greater degree of connectivity, centralization, and integration (replacing erstwhile silos), also opens up a new possibility: transforming age-old contract processes through AI.
AI maximizes the power of enterprise data and workflow automation by enabling contextualized and interconnected decision-making.
Gartner estimates that this capability could create over $3.2 trillion in business value by 2022. Given that only 11% of organizations feel that their end-to-end contracting process is “very effective” at the current time (according to KPMG research), AI could prove to be a revolutionary force for CLM.
Writing for Harvard Business Review, Beverly Rich, J.D. from the University of Southern California Marshall School of Business, explains why: “While software for legal document review has existed for years, it typically only helps companies store and organize their contracts. Contracting software that uses AI raises the bar for what these tools can accomplish.”
AI-powered CLM drives contracting agility by:
Enterprises can now gain from best-in-class contracting agility without uprooting systems, thanks to integration-friendly CLM and AI tools. Instead of working in silos, at best, using a point automation tool, you can now achieve a streamlined user journey geared for faster approvals. This journey would look as follows:
The above workflow completely reimagines contracting processes as they exist today. It focuses on speed, efficiency, and rich insights, rather than getting bogged down by process minutiae and individual stakeholder agendas. This helps you derive the following benefits:
Certinal leverages the power of a tightly integrated and AI-enabled e-signature tool to transform the contracting function for modern enterprises. It connects with Zycus iRequest, Zycus iContract, and third-party business applications to provide enterprises with a seamless contracting landscape. Certinal’s secure and authenticated APIs allow you to establish a single pane of glass across third-party and homegrown applications so that enterprises can preserve their existing investments.
We recognize that contracting is no longer limited to the legal purview, and has the potential to elevate your end-to-end business capabilities by strengthening supplier relationships, saving effort hours, smartly detecting risk, and facilitating business agility.
Research suggests that more than half of enterprises believe AI to be crucial in contract and document management, and we are at the forefront of this transformation.
AI and integration technologies can be instrumental in helping organizations overcome long-standing pain points in their contracting processes. On the other side, lie greater profitability, sustained compliance, and the ability to reach for growth.