November 19 by Michael Dunne
Learn from the Experts on How to Prepare
As a Gartner analyst I covered the sell-side segment of Enterprise Contract Lifecycle Management (CLM) in the late 2000s, as part of a research agenda that encompassed advanced sales technologies like Configure Price Quote, Price Optimization, Sales Performance Management and Sales Analytics. At that time contract management was viewed as offering the potential to yield high business benefits, but that the market overall was in the doldrums.
More specifically, this sector that, back then Gartner called Enterprise Contract Management, was characterized as being in the Trough of Disillusionment, because of unmet expectations and market fragmentation. Legacy tools proved inadequate for supporting functionality – like redlining/version control, managing multiple contract types, handling third party paper, ease-of-use and more; many implementations required too much custom work; and the viability of many vendor organizations was questionable. The sell-side market was also fragmented and immature, as well as underserved and diminutive, comprising just 30% of total Enterprise Contract Management sales. That is 30% of an overall market that only “approached an estimated $230 million in revenue in 2010 (including license, service, subscription and maintenance fees captured by software providers).”
But times have markedly changed. Gartner now sees modern Enterprise CLM as moving from a nice-to-have to a priority, noting that “effective contract management is important for the commercial success of any business.” Meanwhile, Forrester expects this software market “to grow by 18% in 2018 to more than $1 billion in revenues,” with Cloud the dominant deployment model (Cloud deployments are increasing at a rate of 30% year-over-year).
Some leading factors that the analyst community has identified as driving adoption, market growth and innovation include:
• Rising interest in accelerating contracting processes, especially in support of sales processes
• The need to negotiate unique contracts and exceptions, to address demands of customers, partners and suppliers
• Increasing regulation, with escalating requirements for greater rigor in governance, risk management and compliance practices
• The adoption of business models involving diverse product types (like subscriptions), approaches to licensing, incentives (like rebates) and payment types
• Burgeoning interest in self-service to reduce the cost-to-serve and to scale contracting processes
• The need to handle post-signature changes, changed orders and changes to terms more effectively
• Concern with reducing revenue leakage and costs incurred from ineffectual terms, poorly constructed and poorly administered contracts
• Moves towards digitalization of corporate assets to increase efficiencies, including contracts, sales documents and sourcing documentation
To help decision makers, executives and professionals in the legal and sourcing communities prepare for and capitalize on these trends over the next few years, Apttus published an e-book on “The Future of Contracts.” This e-book brings together in one document, the perspectives of 15 leaders in law, business and technology, tackling disruptive issues ranging from the impact of artificial intelligence (AI) and Blockchain to optimizing critical processes and managing risks more effectively.
But there is more. Along with reading about these important insights, you can hear directly from the experts themselves, from a recent webinar, “Predict and Prepare for the Future of Contracting” – that was held on Tuesday, November 13th.
This is the first in a series of Predict and Prepare webinars sponsored by Apttus to enable enterprises to prepare for disruption to their businesses from emerging trends in Enterprise CLM, Quote-to-Cash, AI, Digital Commerce and Middle Office solutions.
Leading industry analyst, Ari Kaplan, hosted this session with Linda Chuan, a seasoned global technology sourcing executive, and Dennis Garcia, an assistant general counsel with Microsoft. This session explored how innovations in contract management will impact businesses in 2019, including AI and blockchain for contracting, CLM self-service as well as effectively managing big data. Best practices were provided on encouraging a learning organization among teams handling contracts, responding to increasing regulation, like GDPR, as well as on putting in place a technology-enabled program for managing contracting activities across an organization.
So much has been going on in the world of contracting. The Enterprise CLM market has been, and will continue to experience dramatic change, innovation and even disruption based on substantive business trends. As a result, Apttus is leveraging a community of unmatched domain expertise that it has been building for over a decade, to prepare leaders and professionals for modernizing contracting processes and technologies in 2019. Please take advantage of these resources – both the e-book and Predict and Prepare webinar series – as your company undertakes planning for next year.