Time waits for no man. As technology advances, you need to keep up with the pace. Businesses are the most affected. They are in constant motion to meet the ever-evolving consumer demands. And, at the center of all this is contract lifecycle management.
Contract management has changed a lot in the recent past. It has notably shifted from back-office conversation to a competitive edge determiner. Here are the top trends shaping the contract management space.
Top trends in Contract Management
These are the trends shaping contract management in 2021 and beyond:
At the forefront of these trends is digital transformation. Many organizations implemented contract lifecycle management solutions (CLM) to automate the contracting process.
Despite the CLM solution targeting legal, procurement, and sales, the disjointed approach caused inefficiency. The deployment and workflow of multiple CLM tools resulted in frustration among users.
Luckily, there is a solution. Enterprise contract management software such as that offered by ContractSafe.com comes in handy. The software enables the secure handling of all contacts on a single platform.
In the wake of the COVID-19 pandemic, many people found themselves under lockdown. However, work had to continue; this situation led to working from home. During this period, the business world acknowledged the essence of end-to-end automation.
And with continued vaccination and slow resumption to normalcy, this trend will continue beyond 2021. Furthermore, employees have adopted remote working. The ease of accessing everything they need without leaving the comfort of their home has proved advantageous to many businesses.
With contract management software, all the information and contracts are safely available to these employees. To cap it up, they can all access the data with advanced search functionality.
Another notable trend is the use of digital identification. The shift in remote working has influenced the use of e-signature software. This trend is a new normal that won’t end anytime soon. The main reason for this is its security efficiency and data privacy.
The use of e-signature tools for identification has a positive impact on the contract management process. The authentication of the involved parties is swift and secure since no one can forge an e-signature.
Many businesses will embrace this technology due to the constantly changing regulations and the sensitivity of information passing through employees: some are still at home.
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AI and Machine Learning
I bet you have heard of Artificial Intelligence (AI) and machine learning technology. It is the next big thing, and it is an emerging trend in contract lifecycle management. The automation coming from machine learning improves security and streamlines workflows.
According to Global Enterprise Contract Management Market’s trend analysis report, CLM will triple in value by 2023, and AI will be the driving force. With AI, the contract management software transforms into an alive system. This transformation enables the software to create, execute, and manage contracts properly.
For a competitive edge over their competitors, any serious business needs to adopt this technology. The future of AI-powered CLM systems is bright. The company needs to understand the value of optimized processes in the contract life cycle and embrace contract management software.
2020 was a turning point for many businesses. Many of them found out the need for automation. And that trend of preparing for business continuity will continue. Enterprises are adapting and finding means to remain operational even in the face of adversity.
Contract management systems gave many businesses the framework to continue conducting their businesses even at the height of the pandemic.
Data privacy and compliance
When clients trust your business to handle their contract needs, you should take their data privacy and compliance seriously. Companies are taking precautions in handling data privacy and compliance. This trend is worldwide and will keep growing as long as cybercriminals target firms that handle private data.
The EU set the General Data Protection Regulation (GDPR) to protect its citizens’ data privacy. Placing measures to curb data breaches and ensuring compliance should be any company’s priority. This act enhances client/customer trust.
If your business wants to protect data and comply with the policies, you should use Contract management software. This software provides the following:
- An interface that uses permission-based access like ContractSafe. With this, you only issue access permission when deemed necessary.
- Two-factor authentication that offers the company secure data encryption.
- The automation ensures minimum accidental data breaches.
The trends mentioned above have affected contract management so far. And as you have seen how automation came in handy during the pandemic and is still predicted to give a competitive edge in the coming years, every business needs this software. To be safe and profitable in the days to come, why don’t you grab a free demo here.
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