Companies Struggle with Revenue and Cost Management
Many companies experience unnecessarily high costs and mismanage revenue due to inefficient contract management operations.
According to Model N's 2020 State of Revenue Report:
- 82% of executives say revenue management is an increasing challenge
- 98% of executives say they face some sort of revenue management challenge
According to World Commerce & Contracting (WCC, formerly IACCM):
- Poor contract management costs companies 9% when it comes to their bottom line
According to the Harvard Business Review:
- Ultimately, inefficient contracts lead to a 5-40% loss of value on any given deal
Most Companies Don't Take Full Advantage of CLM Platforms
Even when companies have implemented CLM software, they often don't take advantage of its full capabilities and likely use a vendor that doesn't give them a complete repertoire of functions.
According to Deloitte:
- 65% of companies use some form of contract management solutions, including applications or home-grown variations
According to CLOC:
- 45% of companies indicate that they are looking into AI solutions to reduce legal workload and improve performance
While most companies use their contract management solution in similar ways, there are a few features of a CLM system of which most companies do not take advantage:
- Defined and automated workflows
- Functionality to search for key terms, dates, and clauses
- Assembling contracts from a clause library
According to Forrester:
- Only 43% of CLM vendors allow you to use metadata tagging of clauses in imported or third-party contracts
- Only 29% of CLM vendors contain robotic process automation to streamline approval of changes to standard contract language
- Only 25% of vendors have advanced analytics to identify new risks, opportunities, and obligations within their contracts
Key Indicators that AI and Automation Reduce Costs
By using an intelligent CLM platform that includes automation and AI, the opportunities to save time and reduce costs are exponential and endless.
According to Deloitte: With an intelligent contract management solution, you can realize a...
- 50% reduction in the necessary legal resources, leading to increased efficiency
- 40% reduction in delivery turnaround of your contracts
- 60% cost reduction when it comes to implementation of your solution
Are you ready to take the leap to using AI and automation to streamline your contract management process? Schedule a demo with IntelAgree to learn how.