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ROIContract management software
An executive’s guide to assessing value
Contract Analyst
10260 SW Greenburg Road, 4th floor
Portland OR 97223
United States
!
1 (855) 517-2193 North America
+1 (503) 517-4293 Worldwide
!
www.ContractAnalyst.com
info@contractanalyst.com
ROIContract management software
3 myths about contract management
A better method for return on investment evaluation
The ROI for Contract Analyst
TM
Mythsabout contract management
1. Administrative task
This myth views contracts as paperwork, necessary only for record retention in the event of
litigation. Organizations struggle to keep contract documents together over the entire lifecycle:
amendments, exhibits, correspondence. There is little tracking of important provisions.
!
2. Process problem
This myth focuses on reducing the cost of the contracting authoring and negotiating process. To
improve financial performance organization attempt to optimize the speed of contracting, often
with poor results.
!
3. Document management
This myth makes the understandable assumption that contracts are documents, so its a
document management problem. Document management is a small part of contract
management. Businesses need data more than documents to manage the
Facts
1. Improve financial performance
Businesses operate on a network of contracts for revenue, expenses, assets, and liabilities.
Careful management improves financial performance. Software designed to expose the financial
structure of contracts and to identify risks can help grow the business.
!
2. Demand expertise
To extract more value from contracts, requires a thorough understanding of the risks and
opportunities embedded in the terms of a contract. Reports that show performance obligations,
insurance requirements, and indemnification provisions add more financial value than processing
a language change more quickly.
!
3. Use data to gain insight
When contracts are managed as data, instead of words, they can provide insight into the
business, especially for the entire contract portfolio.
about contract management
MethodBENEFITS COSTS
Direct
financial
Protect revenue: prevent revenue contract
expirations; structure revenue contracts for
best revenue recognition
!
Expense control: prevent unexpected auto
renewals
Licensing: fees, users, documents
!
Subscription or maintenance: annual fee,
escalations
!
Services: third party services, internal services
Risk
management
Identify and prevent breach of contract, by
either party
!
Manage legal policy exceptions, like choice of
law and indemnification
!
Insurance coverage tracking
Unexpected losses: adverse legal rulings with
unknown scope
!
Loss of remedies: lack of data prevents timely
use of contractual remedies
!
Uncovered risks: lapsed insurance
Compliance
Avoid or mitigate regulatory violations with
compliance reviews based on external legal
requirements
Government regulatory reviews
!
Third party enforcement: private
enforcement rights
ROIBENEFITS COSTS
Direct
financial
Protect revenue: prevent revenue contracts
expirations; structure revenue contracts for
best revenue recognition
!
Expense control: prevent unexpected auto
renewals
Contract Analyst provides fixed price licensing
model. The Enterprise Edition allows unlimited
users and unlimited documents.
!
Services are defined with a firm price
Risk
management
Identify and prevent breach of contract, by
either party
!
Manage legal policy exceptions, like choice of
law and indemnification
!
Insurance coverage tracking
Contract Analyst supports risk management
with detailed tracking of legal provisions and
policies.
Compliance
Avoid or mitigate regulatory violations with
compliance reviews based on external legal
requirements
Contract Analyst supports improved
compliance programs with regulatory tracking
and compliance reviews
ROIContract management software
An executive’s guide to assessing value
Contract Analyst
10260 SW Greenburg Road, 4th floor
Portland OR 97223
United States
!
1 (855) 517-2193 North America
+1 (503) 517-4293 Worldwide
!
www.ContractAnalyst.com
info@contractanalyst.com

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ROI for Contract Management Software

  • 1. ROIContract management software An executive’s guide to assessing value Contract Analyst 10260 SW Greenburg Road, 4th floor Portland OR 97223 United States ! 1 (855) 517-2193 North America +1 (503) 517-4293 Worldwide ! www.ContractAnalyst.com info@contractanalyst.com
  • 2. ROIContract management software 3 myths about contract management A better method for return on investment evaluation The ROI for Contract Analyst TM
  • 3. Mythsabout contract management 1. Administrative task This myth views contracts as paperwork, necessary only for record retention in the event of litigation. Organizations struggle to keep contract documents together over the entire lifecycle: amendments, exhibits, correspondence. There is little tracking of important provisions. ! 2. Process problem This myth focuses on reducing the cost of the contracting authoring and negotiating process. To improve financial performance organization attempt to optimize the speed of contracting, often with poor results. ! 3. Document management This myth makes the understandable assumption that contracts are documents, so its a document management problem. Document management is a small part of contract management. Businesses need data more than documents to manage the
  • 4. Facts 1. Improve financial performance Businesses operate on a network of contracts for revenue, expenses, assets, and liabilities. Careful management improves financial performance. Software designed to expose the financial structure of contracts and to identify risks can help grow the business. ! 2. Demand expertise To extract more value from contracts, requires a thorough understanding of the risks and opportunities embedded in the terms of a contract. Reports that show performance obligations, insurance requirements, and indemnification provisions add more financial value than processing a language change more quickly. ! 3. Use data to gain insight When contracts are managed as data, instead of words, they can provide insight into the business, especially for the entire contract portfolio. about contract management
  • 5. MethodBENEFITS COSTS Direct financial Protect revenue: prevent revenue contract expirations; structure revenue contracts for best revenue recognition ! Expense control: prevent unexpected auto renewals Licensing: fees, users, documents ! Subscription or maintenance: annual fee, escalations ! Services: third party services, internal services Risk management Identify and prevent breach of contract, by either party ! Manage legal policy exceptions, like choice of law and indemnification ! Insurance coverage tracking Unexpected losses: adverse legal rulings with unknown scope ! Loss of remedies: lack of data prevents timely use of contractual remedies ! Uncovered risks: lapsed insurance Compliance Avoid or mitigate regulatory violations with compliance reviews based on external legal requirements Government regulatory reviews ! Third party enforcement: private enforcement rights
  • 6. ROIBENEFITS COSTS Direct financial Protect revenue: prevent revenue contracts expirations; structure revenue contracts for best revenue recognition ! Expense control: prevent unexpected auto renewals Contract Analyst provides fixed price licensing model. The Enterprise Edition allows unlimited users and unlimited documents. ! Services are defined with a firm price Risk management Identify and prevent breach of contract, by either party ! Manage legal policy exceptions, like choice of law and indemnification ! Insurance coverage tracking Contract Analyst supports risk management with detailed tracking of legal provisions and policies. Compliance Avoid or mitigate regulatory violations with compliance reviews based on external legal requirements Contract Analyst supports improved compliance programs with regulatory tracking and compliance reviews
  • 7. ROIContract management software An executive’s guide to assessing value Contract Analyst 10260 SW Greenburg Road, 4th floor Portland OR 97223 United States ! 1 (855) 517-2193 North America +1 (503) 517-4293 Worldwide ! www.ContractAnalyst.com info@contractanalyst.com