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Three Reasons Why the Buzz About CLM Software is Well-Deserved

, , , , , | August 3, 2023 | By | 2 min read
Gartner Legal Hype Cycle 2023 CLM

 

IntelAgree was named as a Sample Vendor for Contract Life Cycle Management in the Gartner® Hype Cycle for Legal and Compliance Technologies, 2023. The Contract Life Cycle Management space received a "high" benefit rating — which, according to the report means, “it enables new ways of performing horizontal or vertical processes that will result in significantly increased revenue or cost savings for an enterprise."

The Hype Cycle report, which is used to assess the maturity and value of emerging technologies, states: "CLM appeals to companies of all sizes in all industries and geographies. Implementing it can lead to significant improvements in revenue management, cost savings and efficiency. Understanding and automating CLM can also reduce an organization's liability, risk, and increase its compliance with legal requirements. Without a CLM solution in place, stakeholders commonly have to spend significant time extracting, managing, and reporting terms and pricing arrangements."

So, why are organizations of all sizes and across all sectors prioritizing CLM now more than ever? In this blog, we'll share our take on CLM software's rising popularity and shed light on the various ways it's transforming contract management as we know it. 

 

What's Driving the Hype?

Greater Internal & External Efficiency

CLM software brings an unmatched level of efficiency and accuracy to both internal and external contract processes of a company. Internally, it streamlines reviews between departments with automated workflows and real-time collaboration. Instead of a contract sitting idle in someone's inbox, notifications alert the next party that it's their turn for review or approval. Each stage is traceable, every action is accountable, and approval time is dramatically reduced. 

Externally, CLM software enhances your interactions with partners, clients, and vendors. Native eSignature functionality makes it possible to execute agreements immediately, from virtually any device, without juggling multiple platforms. And if someone doesn't sign within a set timeframe, the system sends an automatic reminder no more manual follow-ups, no more wondering if you've missed a signature, and no more stress-induced email checking.

 

Fewer Risks, More Compliance

AI-powered CLM software mitigates legal risks by actively learning from your contracts. It understands the language, terms, and conditions that are beneficial or detrimental to your organization, flagging potential issues before they escalate. For instance, if a contract contains a clause that has previously led to disputes or financial losses, machine learning algorithms can identify this and alert you so you can take quick corrective action. 

When CLM software identifies an unfavorable term, it can trigger a workflow, routing the contract to a specific team member for additional review and approval. Beyond ensuring individual contract compliance, CLM software also maintains compliance at a macro level by keeping track of all contracts, ensuring each one adheres to relevant laws, regulations, and internal policies. 

 

Turning Static Contracts into Searchable Assets

With CLM software, every agreement your company has ever signed is just a click away. Instead of sifting through physical documents or digital folders, you can easily search across all of your contracts, locate specific clauses, or find contracts related to a particular vendor or project. The software acts as a well-structured library of your contractual obligations, eliminating the risk of misplacing contracts and the headache that comes with it.

CLM software also simplifies tracking of contract stages: whether a contract is in negotiation, awaiting signature, or up for renewal, you can immediately see where each contract stands. This not only reduces confusion about the status of your contracts, but also helps you anticipate bottlenecks and strategize more effectively to prevent stalls.

Additionally, CLM software provides summarized dashboards for a bird's eye view of all your active contracts. You can track contract progress, spot renegotiation or renewal opportunities, and customize the dashboard to display the contract details that matter most to you. 

The rise of CLM software isn’t just a trend —it’s a strategic shift in how organizations manage their contractual obligations. An efficient, AI-powered CLM system like IntelAgree not only stores your contracts, but transforms them into actionable, searchable assets that drive efficiency, reduce risk, and enhance compliance.

Don't let manual processes slow you down — schedule a demo with IntelAgree to see how our CLM software automates the most costly, time-consuming aspects of contract management.

 

Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and HYPE CYCLE is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.