Effective Contract Lifecycle Management Can Enhance Compliance and Reduce Costs, Says Info-Tech Research Group in New Resource

Info-Tech Research Group has published a new blueprint that breaks down how to improve an organization's contract lifecycle management (CLM) processes to efficiently and economically streamline operations. The firm's resource offers a roadmap for centralizing contract documents, establishing robust procedures, and selecting the right CLM tool.

TORONTO, June 14, 2024 /PRNewswire/ - As organizations grapple with the complexities of managing scattered contract documents and inefficient manual processes, they face significant compliance risks and missed opportunities. Advanced contract lifecycle management (CLM) tools can effectively mitigate these issues, but many organizations lack the maturity to fully leverage their benefits. Info-Tech Research Group's newly released blueprint, Design and Build an Effective Contract Lifecycle Management Process, provides a comprehensive roadmap for centralizing contract documents, establishing robust CLM procedures, and identifying essential tool requirements. This research empowers IT leaders and organizations to enhance operational efficiency, ensure regulatory adherence, and build a streamlined approach tailored to organizational goals and culture.

"Vendors in the CLM space are constantly modifying their features and functionality, and the industry's players are rapidly changing due to vendors entering, merging, and leaving," says Phil Bode, principal advisory director at Info-Tech Research Group. "Artificial intelligence is the latest innovation being leveraged by CLM providers, making the systems more sophisticated and easier to use. However, even with artificial intelligence, these systems won't run entirely by themselves, yet, and CLM still requires human participation, especially for validation."

Info-Tech's research shows that organizations are increasingly relying on vendors for non-core functions and services, underscoring the growing importance of effective contracting and CLM processes. However, the lack of maturity in many organizations prevents them from fully benefiting from advanced CLM processes and tools. When contracting CLM processes, these organizations can encounter various challenges, such as disparate systems, a lack of internal coordination, and inefficient processes.

"For the CLM system to be effective, a lot of work must occur before implementation," explains Donna Glidden, principal advisory director at Info-Tech Research Group. "Additionally, it's crucial for IT leaders to recognize the limitations of these tools, as they can't single-handedly resolve all issues. Even the top CLM systems on the market won't completely fix process and non-compliance issues. Therefore, organizations should view CLMs as an assistant tool rather than a remedy for all problems."

The firm emphasizes that CLM requires a flexible approach tailored to the organization's goals, culture, maturity level, scope, and other relevant factors. Organizations need a holistic framework to navigate the various stages of CLM, allowing them to progress at their own pace and according to their needs.

Info-Tech's blueprint outlines three key factors that organizations should consider when building their CLM process:

• Location: Many organizations struggle with contract management due to the absence of a central location for contract storage. The initial step to enhance CLM is to establish a central location where all contract documents are stored and easily accessible.
• Process: The CLM process is a crucial aspect of a holistic contract management approach. Organizations should document their current process, identify any gaps, and work toward improving deficient areas. This factor involves gathering requirements, performing gap analysis, and ensuring alignment with organizational needs before selecting a CLM tool.
• System: After establishing the process, it is essential to identify and select the most suitable CLM tool that meets the organization's specific requirements. Evaluate how well current processes can be automated and streamlined and choose a tool that centralizes agreements and enhances efficiency. Gather input from stakeholders, identify suitable vendors, and implement the chosen system with appropriate training.

The blueprint addresses the technical aspects of implementing a CLM system and emphasizes the strategic importance of human oversight in contract management. By leveraging Info-Tech's framework, organizations can transform their CLM processes to be more efficient and compliant. This transformation leads to better risk management, streamlined operations, and stronger alignment with business goals. By adopting this approach, IT leaders will be able to navigate contract management with agility and precision.

For exclusive and timely commentary from Phil Bode or Donna Glidden, experts in vendor management, and access to the complete Design and Build an Effective Contract Lifecycle Management Process blueprint, please contact [email protected].

Registration is now open for Info-Tech Research Group's annual IT conference, Info-Tech LIVE 2024, taking place September 17 to 19, 2024, at the iconic Bellagio in Las Vegas. This premier event offers journalists, podcasters, and media influencers access to exclusive content, the latest IT research and trends, and the opportunity to interview industry experts, analysts, and speakers. To apply for media passes to attend the event or gain access to research and expert insights on trending topics, please contact [email protected].

Info-Tech Research Group is one of the world's leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].

For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.

SOURCE Info-Tech Research Group