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How to Choose the Best Contract Lifecycle Management Software

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There are basically 3 foolproof steps to choosing the best contract lifecycle management software no matter the type of business contract you are trying to seal.

The success of every business that extends to a mutual business relationship is largely dependent on how well the contracts were managed.

Where there’s no business contract in place, it becomes extremely difficult to fully manage the company’s activities in terms of marketing, legal, sales, finance, procurement, etc. The worst part is that you can’t be established when there’s a breach of contract and nobody can be held responsible for any action or inaction.

It’s super-easy to manage a contract if you are running a small business compared to when you are managing a big-brand company and you have active contracts with multiple companies across the globe.

Let’s take a big-brand company like Facebook as an example… They have partnership deals with PayPal over their LibraCoin project, they have shared customer’s data with Netflix, Spotify, etc.

As more and more companies are added, a new problem is created which is the difficulty in managing active contracts. To help solve this lucrative business challenge, a contract lifecycle management software (CLM) comes in handy.

But the question now is, how do you choose the best CLM software? What are the most important steps a business owner needs to take to choose the best integrated contract lifecycle management software?

1: Understand Why Automating Contract Management is Very Important

Automating contract management using software is quite important because it helps companies mitigate business risk, control expenditure, identify untapped opportunities and enforce compliance to contracts.

It will be one heck of a job for business executives when it comes to making business decisions if they dare to manage all the numerous contracts they are involved in without a contract lifecycle management software.

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Identify What Needs to Be Improved

How do you identify where improvement needs to be done without a contract lifecycle management system? It’s a gamble and there’s no guarantee.

However, when you gain an in-depth insight into how your business operates, you will be able to identify all the processes, bottlenecks, documents and frustrations necessary in reaching your company’s goals.

How Can CLM Software Be of Service?

The function of a contract lifecycle management (CLM) software solution is to dramatically improve the quality of information that business executives have access to so that they can minimize legal and financial risk.

To access contract information in real-time, there’s a need to automate contract management solutions.

A CLM software solution is best used to manage all areas of a contract’s lifecycle that are integrated with existing business systems for the purpose of managing negotiations, contract initiation, monitoring and renewals.

Using a contract lifecycle management software, you can import existing contracts, extract and analyse clauses and save some templates that you can make use of in your next contract deal.

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2: Evaluate Contract Lifecycle Management Solutions

Contract lifecycle management software

The first step to choosing the best contract lifecycle management software is knowing that your business needs a unique way to manage all your contracts from one dashboard so that you can make informed decisions every single time.

Strategic decision making will be a struggle if there’s no contract management automation system in place. That said, the next thing to evaluate the most accurate process in choosing the right contract lifecycle management software vendor near you.

Some of the high-level criteria that your business needs to consider before choosing a CLM software vendor include:

  • Support all contract types (procurement, sales, HR, legal)
  • Have a central repository with access defined for different user levels
  • Compliance management
  • Real-time notifications and alerts
  • Advanced security 
  • Easy integration with current systems
  • Automate contract creation with a flexible and user-friendly workflow

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3: Now You Can Choose the Best CLM Software Solution

The most tedious parts of your work when it comes to choosing the best contract lifecycle management software for your business are the areas of understanding how contract management automation works, evaluating your business needs and researching the CLM provider’s capacity to handle your needs.

If you are a reliable CLM software provider, one of the most effective ways to prove to your users that your product is the best is to do a live demo so that people can see the competence of your CLM system.

Conclusion

Before taking a stand on the CLM software solution provider to use, it is important that you crosscheck all the necessary factors when it comes to providing a profitable CLM partnership between a provider and a business owner:

  • Request a guarantee on services and fixing pricing to avoid unexpected costs during and after implementation.
  • For better user adoption, prioritize vendors with solid and responsive support, and request extensive free trials.
  • Flexibility, configurability, and scalability can be managed internally without dependence on the vendor.

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Once these things are put in place, you can be so sure of choosing the best CLM software solution provider near you.

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Emenike Emmanuel
I am a multiple Award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, Lead Coach of The Excellent Entrepreneurs' Network (TEEN) and Convenor of #NaijaSitUp. My business is to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. I have been featured and mentioned on platforms like, BloggingTips, StarterStory, StatusBrew, Realty Times, Emerald TV, SmartBCamp, Blogging from Paradise, Write Worldwide, Enterprise Boom, Atang Magazine, etc. In 2019, my blog won the Best Digital Media Award from AB Afrikpreneur. When you want to hire a professional to handle your online marketing, I'm your go-to-expert you can speak to. In 2019, I won the Blogger of the Year from the Global Excellence in Marketing Awards, USA and my brainchild, EBB won the Best Digital Media Award at the AB Afrikpreneur Awards. You can connect with me on Facebook, Twitter, Instagram, Pinterest and LinkedIn with this handle, @EmenikeNg

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