Contract Management Software myths

1. Contract Management Software Debunking the myths

2. Contract Management Software • Contract management software (CMS) is a centralized system to house all contract-related activities. • User training is needed to efficiently operate a CMS solution. If not trained well, or if a CMS user does some silly mistakes in the process of entering contracts into CMS, costly errors can occur.

3. 10 Contract Management Software Myths • AI (artificial intelligence) does all the work for you. • eSignature is AI. • Contract templates are all the same. • Contracts are not legal unless created by a lawyer. • Only a full-time employee can represent their employer in a contract. • Every breach of contract costs a company thousands of dollars in court fees. • CMS that is free offers the same features as an expensive CMS. • Every CMS is the same. • Only managers should manage CMS. • All companies that offer CMS offer encryption for contracts stored in the CMS.

4. Debunk the Myths • How AI Really Works • AI is a programming code, or a series of codes, within an enormous program (code base). Imagine how your town is part of your country. AI is not artificial. It is not futuristic or from outer space. AI is a programmed “to do” list, based on circumstances predicted during the programming process. • eSignature • AI triggers the eSignature process, but AI and eSignature are two different features of a CMS. To initiate the eSignature process, a CMS trigger can be setup in advance to occur at a specific progress point in the contract life cycle, at the end of the last approval workflow stage, or another customized time.

5. Debunk the Myths • Contract Templates • Contract templates provide the structure of a contract and about 95% of the contents of a contract. Then, only about 5% of a contract is completed with subjective data that pertains only to the contract parties and terms. • Contract Parties • Anyone that is a valid representative to an organization can enter into a contract, complete the subjective data of a contract template, perform tasks in the workflow process of contract, and sign a contract on behalf of their organization.

6. Debunk the Myths • Breach of Contract Costs • The more that a lawyer charges for their time, and the more legal counsel used, and the more complex the breach of contract lawsuit, the higher the cost of a breach of contract. Then, of course, there are court fees per day spent in the courtroom. • CMS Pricing Options • Many CMS brands offer a free trial, or a limited number of users or data. This is more of a marketing strategy than an enterprise-level CMS. To get the full experience of a CMS, not only should you expect to pay for the service, but the experience will be a better one.

7. Debunk the Myths • CMS Brands and Optical Character Recognition • CMS brands will state nearly identical language in their demos and sales pitches and marketing materials for the features they offer being better than the competition. There are hundreds of CMS brands. • Managing a CMS • The more employees given access to the CMS in your organization, the less time that the CMS content manager will spend hunting down a contract, or worse, a portion of a contract to read the details of the obligations of the organization.

8. Debunk the Myths • Encryption • Encryption can occur at the software level or at the tenant level. Tenant level refers to the platform in which the software operates. For example, Microsoft SharePoint is a tenant that offers off-the-shelf (OTS) software with an API (application programming interface) offered to separate software brands.

9. Conclusion • Debunk the myths about contract management solution. Study the facts and statistics, not the opinions and wishes. The right CMS for your organization will match your list of priorities. Do your research to learn which features are offered by which CMS. Purchase the CMS that fits your priorities first. Be trained by the CMS provider to use the software efficiently.