Future terms/concepts in Contract Lifecycle Management (CLM) systems software and contract management software
I recently considered the features CLM systems are likely to have in the next 5 - 10 years. In this article I consider terms that are likely to be used in 5 - 10 years time in the context of CLM systems. Below I outline a few after reviewing Gartner’s CLM Maturity Model (as well as adding one or two of my own predictions).
- Predictive Agreement - Data will be captured, analysed and synthesized in real-time to provide suggested options for arriving at an agreement for contractual terms, such as price, while in negotiation.
- Predictive compliance - CLM systems will collect data and analyse trends across the organization to anticipate and address compliance risks i.e. compliance will become less reactive. For example, a contract management software system could determine a particular contract manager’s workload was too high and redistribute workflow to reduce risk of error. An option would be available for making compliance metrics visible to stakeholders. CLM systems will be connected to and assess data from social media streams about issues related to an organization’s contracts, vendors and customers so this information could be considered in relation to compliance strategy. Also, alerts for contractual obligations will be sent to relevant people at appropriate times to assist with compliance.
- Interdependent amendment guidance - If an amendment is made to a contract, negotiators will be alerted to how this will affect interdependent terms in the same contract or related contracts. If there are any issues that need to be addressed negotiators will be prompted on the steps required to do so.
- Contextualized predictive dispute monitoring - If a dispute arises in relation to a contract, the CLM system will capture data about this dispute and details of how resolution is sought and achieved so this data may be leveraged for future disputes and faster dispute resolution.
- Automatically triggered auditing - Audits will be automatically triggered by certain events and at certain points in time for better quality control. A CLM system could automatically assess real-time collected data and provide reports about contractual metrics that are determined relevant.
- Cross system analytics - Reports can be created from not only data and analytics residing in the CLM system but also reports can also integrate data and analytics from other systems such as ERPs and CRMs. Such analytics allow for things such as Predictive Revenue Modeling and Automated Modeling and tuning of Service Level Agreements. Predicting future revenue will allow for decisions involving such things as the purchase of goods and services to be made with this information and presumably, in relation to this, allow for better business outcomes. Terms of Service Level Agreements could also be amended with this future revenue modeling information and the CLM system could also be set up in such a way as to automate this process.
So there you have some terms which are likely to rise to the forefront of CLM practice in the next while. What are your thoughts? What are your predictions?
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