If you were to guess how much revenue you lose every year due to poor contract management, what would you say? 1 percent? Maybe 5 percent? Or maybe you don’t think that your contract management is costing you any money — after all, contracts are designed to make you money.
If you were to calculate the amount of time that your legal team spends on contracting, you might be astounded at the number of hours they devote to generating contracts, gathering approvals, and chasing signatures — not to mention, the time they spend searching contracts for specific language or tracking renewals and expirations. Or, if you needed insight into your existing contract portfolio, how long it would take your team to analyze every contract to find and report on the required information. All of those hours represent big money to your company — and in many ways, a waste of resources.
Contracts form the heart of your business. They determine how your company will generate revenue, outlining the obligations of both you and your customers — and the consequences should either party fail to follow through.
Whether you like it or not, Artificial Intelligence (AI) is here — and not only here to stay, here to thrive. A recent HubSpot-led survey of more than 1,400 global consumers found that 63 percent of people who use artificial intelligence software and technology don't even realize they are using it. AI has become a vital part of our daily lives, both at home and in the office. Now, imagine the doors you could open (quite literally in some cases, in fact) with the conscious and purpose-driven use of Artificial Intelligence software.
You are the chief underwriting officer of a multinational reinsurance firm. Your business leadership has just asked you to quantify your organization's global property and excess liabilities as part of an across-the-board evaluation of brokering standards, exposures, and underwriting guidelines. You send your staff off to crunch the numbers from contract data in your data mart, yet you know that any analysis you do is skewed to the point of being useless in its predictive capabilities.
The definition of a contract is simple: It’s an agreement between multiple parties in which one or more parties has an obligation (or several) to the others. The physical contract itself is just a record of that agreement, outlining all of the pertinent details.
Companies make enormous investments in CRM and enterprise systems. So, it’s only natural that they would look to stretch their investment by using those systems for as many functions as possible. The more you use it, the higher the ROI.
Every modern business must deal with contracts. From internal employment contracts to external contracts with vendors and clients, they are an integral part of the operation of any business. Yet for all of the importance that contracts hold to companies, in most cases, contract management is often an afterthought — if it’s even considered at all. Unfortunately, this “out of sight, out of mind” approach to the contract management process often means missed milestones and opportunities — not to mention, a good chance that a business could be out of compliance with federal and industry guidelines related to contract management.
Contract management is much more than simply drafting an agreement between two parties, gathering signatures, and moving ahead with a relationship — and sticking the document in a filing cabinet somewhere, only to be seen again when an issue arises.
Today, the legal arm of PricewaterhouseCoopers (PwC) in Switzerland started selling automated legal documents to the public. That’s what LegalZoom pioneered in the US, and now PwC Legal is bringing it to B2B. That’s big news and it didn’t stop there. They’re also selling their Swiss law docs on PartnerVine, which is an open platform for law firms to sell their legal documents. Together, that’s a revolution.