What is digital transaction management (DTM), where’s it going and where does online contract management fit in this space?
Aragon Research recently released a report on DTM and content management which can be accessed here - http://ow.ly/Qiz1300YFZ2 .
This report defines “Advanced DTM” as a technology category that “involves complex document processes, including, but not limited to, document assembly, routing, integration into other applications, and workflow both upstream and downstream from the decision, approval, or signature”. It describes DTM as “a business application that focuses on fully digital document transactions” - “DTM business processes involve people, documents, data, and transactions both inside and outside the enterprise”.
According to Aragon Research - “Digital Transaction Management (DTM) has emerged to become one of the fastest ways to transform an enterprise by getting rid of paper processes...The push to make business processes completely digital has both transformative and disruptive business potential, and DTM is one of the enablers to make this happen.” Aragon Research predicts that by 2017, 65 percent of enterprises will retire legacy paper-based processes in favor of those based on DTM, and that the market will grow to $30 billion by 2020.
Roger Kay, writing for Forbes online in his article “Digital Transaction Management Standard Begins to Take Shape” takes a high level overview of where this space is going in relation to adoption by the mainstream market. He notes it’s now well understood what are the benefits of DTM - with DTM, transactions are faster, easier, more pleasant, less fallible, more accurate, more secure, and more auditable than manual processes involving paper, which introduces error-prone steps and notes the industries using DTM have got together to create a set of standards for DTM. These address hesitations adopters and potential adopters may have about DTM. The standards together are called xDTM and it covers the eight main areas - security, privacy, compliance, enforceability, availability, openness, scalability, and universality. Details of xDTM can be found here - http://www.xdtm.org/ .
Some of the categories of DTM considered in this report include platforms which allow for:
- Automated Mortgages - guiding the process of applying for and getting approved for a mortgage and can make this whole process almost instantaneous;
- Electronic Signatures - allowing for people to sign and approve documents from wherever they are in the world.
Contract Management Software, sometimes called Contract Lifecycle Management Software (or CLM software) or online contract management software, falls under this overarching category of DTM. Online contracting involves many digital transactions. Good contract management systems provide end-to-end guidance throughout the contracting process.
What are your thoughts? Do you use DTM software? What has your experience been like? Do you agree with Roger Kay’s assessment of its benefits?
ContractRoom, being a contract lifecycle management software, is also a digital transaction management software. It was named by Aragon Research in its report on DTM and content management as having the potential to transform the marketspace. To find out more about how ContractRoom can transform the market, book a demo by clicking here: