The adequate management of contracts is essential for the smooth running of any company. But contracts are too important to be processed and stored manually. This is why lots of companies are now going digital. In recent years, Contract lifecycle management software has transformed how businesses manage their contracts. Now, we’re looking towards the next step in contract digitalization. Today, we look into how to set up Contract lifecycle management (CLM) with the help of Smart contracts.
The use of CLM software is the first step in automating and properly managing contracts inside an organization. What follows next is true automation in the face of Smart contracts.
But to understand why Smart contracts-enabled lifecycle management is the way to go, we must first look at the shortcomings of traditional CLM software.
A great deal of existing CLM solutions are basically just a glorified search engine
It often takes hours of training to teach employees how to use CLM software tedious tagging of any relevant detail to use it effectively. Difference in contract formats and standards can also lead to mislabelling vital information and requiring hours of manual verification and correction, rendering the system practically unfunctional for the company.
Medium and large enterprises are particularly dependent on CLM. As there is no product without contracts and contract life cycle management is vital. However, traditional CLM offers very few options for customization. It comes with a time-consuming onboarding process, and few automated features.
Trakti achieves much more with far less. Trakti is the first automatic contract negotiation and management platform integrated in Blockchain. We automate your templating, negotiation and obligation management processes supporting the entire contract life cycle management with a unique and compliant platform.
Setting up contract life cycle management at the design stage
With CLM, there’s precision in timing for each stage of the contract. The time saved can be allocated to more productive tasks and activities. These new smart contracts are far more functional than their inanimate paper-based ancestors. No use of artificial intelligence is implied. A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises.
The flexibility and automation of smart contracts means that CLM can be applied earlier at the design stage. The concept design stage is concerned with preparing a concept design for the preferred option and developing and then deciding on the project. It may also include making an outline of the planning application or a detailed planning application.
The contract management process is a series of actions that guides you through the stages of the entire contract life cycle. When you look into how to setup contract life cycle management, you see the ways it helps you develop an effective way to handle company agreements. You can also see them through to their conclusion from the design stage onward.
It’s important that you understand each stage of the contract management process to know what to expect. This way,you can ensure optimal contract management. Businesses that align CLM parameters to contract parameters achieve better results in streamlining their processes.
Appointing a CLM management system at the stage of concept design gives companies greater level of control. It provides control and efficiency across the entire contract lifecycle if you set it up early on. The design stage is the time to gain visibility into the terms of all types of contracts. This includes deep T&C insights and comprehensive risk-scoring for pre- and post-execution risk management.
You can seamlessly connect contracts with all aspects of spend management to shorten the time-to-realize benefits, ensure compliance, and realize maximum value. By leveraging smart contracts, you can further enable self-service contracting for parties. This includes having customizable smart templates and clause libraries that power an intuitive, dynamic “interview” for fast and secure creation of any agreement type.
Trakti does more than cover the authoring process of a contract, giving your line manager the possibility to create, edit, and mark-up custom templates. It also involves the legal representative. They are both asked to approve the deal before it gets advertised and counterparts are notified.
That’s why we talk about smart legal contracts and using them to automate provisions and manage obligations.