In the recent LawInsider webinar, “Unbundling CLM: The Rise of Contract Management Point Solutions,” industry experts Preston Clark, Zach Abramowitz, and Daniel Lewis explored the shifting dynamics of contract lifecycle management (CLM) and contract technology. The discussion offered a clear view of the current challenges and the evolving future of contract management.
Here are the five key takeaways from the session.
1. Distinguishing CLM from Contract Tech
A critical point of the webinar was understanding the difference between CLM and contract tech. While CLM systems are designed to manage the entire contract lifecycle—from initiation to renewal or termination—contract tech refers to standalone point solutions that tackle specific issues within the contracting process. These tools offer a more focused approach, enabling organizations to address particular pain points without the need for a comprehensive CLM system.
2. Overcoming CLM Implementation Challenges
The webinar also highlighted the difficulties many organizations encounter when implementing CLM systems. Long and complex deployment processes, coupled with misaligned incentives from consultants, often lead to high costs and fragmented solutions that don’t fully resolve key contracting issues. The speakers referenced Gartner’s prediction that half of all CLM implementations in 2024 will fail, emphasizing the need for more practical, manageable solutions.
3. Prioritizing Point Solutions for Quick Wins
A significant trend discussed was the move towards unbundling CLM into specific point solutions. By targeting immediate pain points, organizations can achieve quicker results and gradually develop a more robust contract management system. This approach allows for faster realization of value compared to the traditional, often cumbersome, CLM implementations.
4. Evaluating Contract Needs and Leveraging AI
The importance of assessing the most frequently negotiated contracts was another key takeaway. Organizations must ensure their contract strategies align with current operational needs. Additionally, the role of AI in contract management was discussed, particularly how newer technologies are deconstructing traditional CLM models. AI tools are increasingly being used for tasks like contract review and legal research, making contract management systems more adaptable and future-ready.
5. Cost Considerations and Strategic Implementation
Cost is a significant barrier to CLM adoption, with high expenses and seat-level pricing often deterring organizations. The webinar stressed the importance of having a clear strategy before investing in a CLM system. By focusing on specific, targeted solutions, organizations can avoid the lengthy and costly process associated with full-scale CLM implementations.
The insights from this webinar provide a valuable roadmap for navigating the complexities of contract management. By distinguishing between CLM and contract tech, understanding the challenges of implementation, prioritizing point solutions, evaluating contract needs, and considering cost implications, organizations can make more informed decisions and optimize their contract management processes.
Missed The Webinar? You can watch it now via IHC On-Demand!
