News & Views
New process for modern contracts
An independent study has revealed that three out of our business must adapt to keep up with the demand of modern contracts.
The typical business creates, manages and executes more than 1,100 contracts every year – 78% of which are customized. To understand more about how businesses manage the volume and velocity of their contracts, Conga (https://conga.com/) commissioned Forrester Consulting to evaluate organizations’ contract lifecycle management (CLM) approaches, challenges and future plans.
“Contracts are the glue that binds the business world together – they define who does what, when they do it and how much they do it for,” said Ben Allen, SVP of corporate development, Conga. “And yet even in this digital world, we believe the results of the Forrester Consulting study verifies that too many businesses still rely on outdated ad hoc, manual or homegrown systems to manage their organisations’ agreements. Conga is dedicated to helping our clients digitally transform their contracts – and the processes that surround them – to achieve commercial excellence.”
The study ‘Reduce risk and improve your contract velocity with a CLM technology solution’ reveals that while respondents believe it should take 1.2 days to execute a contract, yet businesses on average spend 2.6 days on average, and for nearly one in five businesses, the process takes five or more days.
Close to half (47%) of business leaders point to a lack of visibility across contract creation and management processes with nearly two in five saying that their current process requires time from too many employees to complete creating bottlenecks and exposes the business to new risks.
Organizations are investing in next-generation Contract Lifecycle Management (CLM) technology with study revealing that 60% of respondents are interested in implementing AI-enabled wizards to guide users to the right contract templates and clauses, while 68% are looking to semantic analysis AI to identify issues in contracts and 59% are planning to implement bots for voice or IM user interaction.
The maturity of an organisation’s CLM strategy explains how effectively their contracts are processed, managed and leveraged. To help organizations measure the maturity of their CLM strategies, Conga introduced the Conga CLM Maturity Assessment (https://tools.marketimpacttools.com/go/Conga/CLM-Assessment/index.html?lang=en-us) that provides an interactive, online quiz that delivers results in less than two minutes.