Contracts are the instruments through which business relationships and commitments are defined and managed. Every year they grow more complex. In order to keep up, you need a CLM strategy to achieve visibility and control across all contracting processes.
An enterprise approach to Contract Lifecycle Management can help you improve bottom-line revenue through improved management of risk, compliance and process efficiency, and to stay ahead of constantly changing regulations. Gartner Research Director Nigel Montgomery has described Enterprise CLM (ECLM) as a key strategy that builds competitive advantage.
Narrowly implemented Contract Lifecycle Management (CLM) solutions focus on a single line of business. A holistic approach works across the enterprise — including procurement, legal and sales. Connecting departments to centralized data and analytics enables better governance of master contract data, terms, supplier relationships, customer obligations and contractual dependencies extending to all categories, suppliers and even between buy- and sell-side contracts.
According to Gartner, “CLM is evolving from an operational record-keeping system, primarily used for legal audit purposes, to an enterprise-level core system addressing business risk, costs and the pursuit of revenue maximization. CIOs and line-of-business management need to identify the right solution for their needs.”
Advanced CLM technology brings new insights into the contract lifecycle so that you can look beyond contracts as an entity or as a repository, to understand what is inside a contract and how that data relates to other critical business considerations. More and more companies are placing Enterprise CLM high on their corporate agendas to stay ahead of ever-increasing scrutiny on how organizations operate.
ECLM ultimately provides control of your business relationships. If you would like to learn more about recent ECLM insights from Gartner Research Director Nigel Montgomery, including how Enterprise CLM can be a key strategy that builds competitive advantage, read this newsletter.