Technology has brought expediency and efficiency to a myriad of business processes. However, some contract management solutions fall short in this regard (that is, they fall short of true digital contracting). Pushing web-based contract documents between resources and enhancing collaboration is a start, but true digital contracting moves beyond the status quo of a document-first approach that is untraceable, unactionable, and slow. But how do organizations move on from the disjointed movement of digital documents and embrace a data-first, data-driven, and truly integrated approach to contract lifecycle management (CLM) designed for the modern contract management professional? Read on to discover the benefits of digital contracting for legal teams and anyone else involved in the contracting process.
What Is Digital Contracting?
Digital contracting offers a centralized process outside of simply reviewing contract documents, signing them, and executing them. Digital contracting supports browser-based contract collaboration while transforming static contract documents into structured data pipelines that can be searched, reported on, used for no-code workflow automation, and integrated across business platforms and departments.
Basic Contract Management Software is Not Enough
Sure, basic contract management software is great compared to traditional contract management methods. The ability to pass around contract documents internally and with external parties on a central system is preferable to email-based collaboration. Having a repository of contract documents within one contract management system is better than using shared drives, emails, and folders. Electronic signatures are preferable to ink-and-pen signing and other more outdated methods.
HOWEVER, these basic features are not enough.
Contract managers in search of efficient contracting are still left wondering:
- How do I search within my list of contract documents? What if my search is based only on some section of - or even term within - a contract?
- What's the negotiation and review history of this contract document? Whose hands have touched it?
- Which version of this MS Word or PDF file is the correct, most up-to-date one?
- What task or variable is holding up my contract from execution?
- Why can't I drill down on contract trends or broader info about my contract repository?
- How come I can't integrate this contract's lifecycle with other tools, such as ERP or CRM?
These questions only become more pressing as organizations scale. As contracts become more complex and voluminous, the absence of digital contracting becomes clearer and more detrimental.
6 Digital Contracting Features
A digital contracting platform systematically answers the questions listed above with AI-powered features for contract automation and data-driven CLM success. Here's how.
1. Generative-AI-Powered Data Extraction
Contract documents introduced to digital contracting software have key information extracted as structured metadata to be quickly navigated and leveraged. AI (artificial intelligence) can spot common clauses and categorize them with unprecedented accuracy. Generative AI can generate clauses, answer questions, analyze risk variables, and provide insights into contract sentiment and positive, negative, and neutral aspects for both sides of the contract.
2. Highly-Searchable Repository
Digital contracting software includes a secure and searchable contract repository. Contract managers can search through an organized database of contract documents and contract metadata down to the section, phrase, or even word level. What's more, advanced digital contracting solutions include search history, saved searches, and "Did you mean...?" functionality.
3. No-Code Contract Workflow Automation & Collaboration
Contract managers can set up workflows for contract creation, negotiation, approval, execution, signature, and post-signature contract management (including obligations and renewals) without needing any technical expertise or input. Workflow tasks can be escalated if they are not completed in a timely manner - virtually ensuring that the contract lifecycle keeps moving. A central collaboration portal facilitates communication between organizations, counterparties, and whoever else needs to be in the mix! Sign contracts faster with electronic signatures that can cut send to sign time by up to twenty percent.
4. Version Tracking & Audit Trails
Numbered version control keeps contract collaborators on the same page with the latest document version. See every stage of the contract lifecycle with comprehensive audit trails.
5. Reports & Dashboards
Report on your contract repository with ad-hoc reports (out-of-the-box or easily configured) - such as Active Contracts Expiring Within the Next 90 Days. See contract data analytics at a glance with executive graphical dashboards for Legal, Contract KPIs, Financials, and many others.
6. Seamless Integrated With Other Systems
Easily integrate with existing systems, such as CRM, ERP, and financial systems. Leverage digital contracting software's API integration for the seamless flow of structured contract data.
These are just some of the various helpful and future-minded features within a leading digital contracting platform.
The Results for Legal Teams & Contract Managers
The positive effects of leveraging digital contracting for legal teams include:
- Contract management is an enabler of new business, not a bottleneck.
- Thanks to the automation of more tedious tasks, contract managers can spend more time on strategic decision-making and negotiation strategy.
- Everything is centralized and expedited with a uniform contract data pipeline.
- Contract managers can deliver a low-friction, self-serve workflow while retaining governance.
- Teams can experience cost savings.
- Client relationships are improved as stress diminishes, and scalability is more sustainable.
- Organizations can manage a variety of contract types across departments to consolidate process flow.
- The contract lifecycle management process is agile and adaptable - with leading solutions offering user training and optimization.
Finding the Right Digital Contracting Software
The features above are just a scratch at the surface of all that digital contracting solutions can do to increase revenue, decrease risk, and support efficient, top-down contract lifecycle management. To get started with CLM digital transformation, you need to select a solution that has all the features above and more while continuing to develop more and more future-minded features with industry demands. That solution is CobbleStone Contract Insight®. In fact, CobbleStone Software was recently named a Leader (the highest designation possible) by Quadrant Knowledge Solutions in its SPARK Matrix™ report.
Book a free demo with a CobbleStone® expert today! Do you want to dive right in? Enjoy a free trial!
*Legal Disclaimer: This article is not legal advice. The content of this article is for general informational and educational purposes only. The information on this website may not present the most up-to-date legal information. Readers should contact their attorney for legal advice regarding any particular legal matter.
