The Ultimate CLM Implementation Guide 2024

An AI-enabled CLM (Contract Lifecycle Management) solution has become 'a must-have' software for businesses today to manage operational, financial, legal and regulatory risks that could arise out of a poor contract management, or limited oversight of massive contracts lying in multiple repositories. The AI-CLM software solution help to streamline contract lifecycle negotiations, save legal teams' time, and improve efficiency and transparency for all parties involved. Likewise, the software helps procurement teams and other functions enhance contracting processes, control spend leakages, reduce contract cycle times while maximizing returns. Thus, CLM software helps businesses manage the entire contract lifecycle efficiently, from creation and negotiation to execution and analysis. This CLM implementation guide 2024 will walk you through everything you need to know to successfully implement CLM and optimize your contract management processes.

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What is CLM Implementation?

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CLM implementation refers to the process of deploying a Contract Lifecycle Management (CLM) solution to manage an organization’s contracts throughout their entire lifecycle. This includes stages such as contract initiation, creation, execution, management, and renewal.

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CLM implementation guide 2024 suggests the following key steps:

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1. Defining Goals & Objectives‍

Start by assessing your current contract workflow, identifying areas for improvement, and setting clear objectives for the CLM implementation. Clearly define what you aim to achieve with the CLM system. This includes identifying specific challenges in your current contract management process and setting measurable goals to address them. For example, you might want to improve contract visibility, ensure compliance, or streamline approval processes. Once the objectives are defined, provide relevant datapoints and metrics, figures to measure the impact of current CLM and then portray a better argument to justify why you need a better AI- enabled CLM software for your system.

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2. Conduct a Needs Assessment

Evaluate your current contract management processes to identify gaps and areas for improvement. This involves gathering input from all stakeholders to understand their needs and expectations from the CLM system.  

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3. Need-Based Evaluation ‍

Research and compare different CLM software solutions based on your needs assessment. Consider factors such as ease of use, integration capabilities, scalability, and cost. It’s crucial to choose a solution that aligns with your business requirements and goals.

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4. Choosing the Right CLM Solution

Select a CLM platform that fits your organization’s needs, considering factors like integration with existing systems, user-friendliness, and scalability. Look for CLM software that provides you with the maximum capabilities, support throughout your contract lifecycle, from creation, authoring to execution, obligation management. Important considerations such as integration capabilities, whether the CLMCLM solution can integrate with your existing CLM platform, or with other enterprise solutions like vendor management, sourcing, billing, etc.

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5. Developing Implementation Plan

This step involves various activities towards rolling out your CLM solution. Here you are creating a structure/blueprint for your implementation team that consists of internal and external stakeholders, developing the entire project timeline and milestones. For instance, creating a 24-week project plan with milestones for configuration, data migration, training, and go-live. You’d also identify stakeholders and their roles, their pain points and customize the CLM software as per your specific requirements. All under the implementation planning stage.

Example #1: Determine that the procurement, legal, and IT teams will be involved in the implementation.

Example #2: Decide to automate contract workflows, track key performance indicators (KPIs), and integrate with existing ERP and CRM systems.

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6. Configuration of the CLM Software Solution

Set up and configure the CLM software according to your organization’s needs. This includes customizing workflows, templates, and user roles. Ensure that the system is tailored to support your specific contract management processes. An AI-CLM implementation guide would suggest that as per your unique needs, you can set up contract templates for procurement, sales, finance operations, or IT, setting up their workflows, assigning each of them with specific tasks (this could be as simple as a mere drag-and-drop editor, reordering widgets or dashboards). Also, your chosen CLM solution should integrate with the existing sales, procurement, legal and finance stacks like SAP ERP, Salesforce CRM and others.

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7. Data Migration

Prioritize Data Preparation. Gather and organize all existing contract data to ensure a smooth transition to the new system. This step involves:

• Identifying and collecting existing contract data. For example, gather contracts from shared drives, email attachments, and physical files.

• Cleanse and standardize contract data. For example, removing duplicates, correct formatting, and standardizing metadata.

• Migrating data to CLM solution. For example, import 600 contracts into the CLM system.

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Things to Know

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_{Master Data Management – It consists of information related to contracting party such as customer data, vendor data, item master, product master, entity information, material group and so on. During the phase of contract set-up, master data must be cleaner, availability of ‘clean master data’ is important. If not done, then the poor quality of data might pose serious obstacles post implementation phase, and that’d result in poor adoption of the chosen CLM software solution.}

_{Legacy Data Migration – This step, too, takes place before the actual CLM implementation starts. Enterprises should devise specific strategies to transfer their legacy contract data on time (before starting the actual implementation). This’d ensure the monitoring of the active contracts that are immediately available in the CLM system post go-live.}

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8.  Testing the CLM Solution‍

Before rolling out the CLM system, conduct thorough testing to identify and resolve any issues. This includes functional testing, user acceptance testing, and performance testing to ensure the system works as expected. You can get external QA testers to test/evaluate CLM features and that they exactly match and work like they’re designed. You could also go ahead with the sandbox release of the CLM wherein a few of your company’s stakeholders are involved. This stage is significant to flag issues in features, if any, fix them accordingly.

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9. Training and Support‍

Provide comprehensive training and ongoing support to users to maximize the benefits of the new system. Ensure they understand how to use the CLM system effectively. This can include in-app guidance, training sessions, and user manuals. Training is crucial for driving user adoption and maximizing the benefits of the CLM system.

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10. Go-Live and Deployment‍

This step involves rolling out the solution. Implement the CLM system in phases, starting with a pilot group before a full-scale rollout. This phased approach allows you to address any issues and make necessary adjustments before the system is fully deployed.

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11. Monitor and Optimize‍

After the CLM software system is live, continuously monitor its performance and user adoption feedback. Use AI-enabled contract analytics to track key metrics, performance data and analysis, and identify areas for improvement. For instance, tracking user logins, contract uploads, system errors, etc.

Regularly update and optimize the system to ensure it continues to meet your organization’s needs. Refine workflows and configurations as needed. For instance, adjusting approval workflows to reduce bottlenecks.

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CLM Implementation Benefits

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A successful CLM implementation involves strategic planning, clear goals, and end-user training. Implementing a Contract Lifecycle Management (CLM) system in enterprises can yield several benefits.

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‍ Here are some key advantages:

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• Improved Security and Compliance: GenAI-enabled CLM platforms adhere to high data protection standards (such as ISO 27001 and SOC 2), ensuring secure storage and transit of agreements.

• Enhanced Visibility: NextGen AI-CLM provides a centralized repository for contracts, making it easier to track and manage them throughout their lifecycle.

• Reduced Risks: By automating processes, CLM software minimizes human errors and ensures adherence to legal and regulatory requirements.

• Cost Savings: Streamlined contract processes lead to operational efficiencies and cost reductions

• Improved Collaboration: AI-enabled CLM platform facilitates collaboration among stakeholders, allowing efficient negotiation and approval workflows.

• Faster Contract Execution: Automated workflows accelerate contract creation, approval, and execution.

• Increased Contract Value: CLM helps optimize contract terms, leading to better outcomes and increased value.

• Better Customer and Supplier Relationships: Efficient contract management enhances relationships with both customers and suppliers.

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CLM Implementation Challenges

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_{Implementing Contract Lifecycle Management (CLM) systems can be quite challenging. Common obstacles organizations face:}

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Complexity of Deployment: Setting up a CLM system can be complicated and time-consuming, often requiring significant IT resources and expertise.

Integration Issues: Integrating the CLM system with existing software like CRM, ERP, and e-signature tools can be difficult.

User Adoption: Ensuring that all stakeholders are trained and comfortable using the new system is crucial. Poor adoption can lead to underutilization of the system.

Data Migration: Migrating legacy contracts into the new system can be costly and error prone.

Customization Needs: Tailoring the CLM system to meet specific organizational needs can be challenging and may require ongoing adjustments.

Cost Management: The initial and ongoing costs of implementing and maintaining a CLM system can be high.

Regulatory Compliance: Ensuring that the CLM system complies with various legal and regulatory requirements can be complex.

Despite these challenges, a well-implemented CLM system can significantly streamline contract management processes and improve overall efficiency. Are you considering implementing a CLM system for your organization? This comprehensive CLM Implementation guide 2024 is designed to guide you from scratch.

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Why SimpliContract for your CLM Implementation

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Enterprise customers need a CLM that is easy to configure and can be implemented quickly. A successful CLM implementation can centralize contract data, streamline workflows, improve legal compliance, and enhance collaboration across departments.  Normally, enterprises face significant challenges with long implementation cycles. Companies often remain stuck in implementation for over two years, with the process still being a ‘Work in Progress’. Making changes on an ongoing basis is a nightmare because the process often requires extensive re-coding. Also, outdated CLMs struggle to scale across an organization’s varied needs and complex rollouts. For instance, they can’t manage multiple organizational entities, regions, buy and sell sides, or user personas other than legal.

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1. Highly Scalable & Configurable Platform Architecture

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Our platform is designed with a shared entity-based microservices architecture, consisting of 18 microservices. Every component, from form fields to templates and workflows, is configurable through metadata, eliminating the need for code changes.  

Example: We go live within 7-8 weeks from contract signing, including requirement gathering, configuration, and UAT. Our configuration timeline for new projects is under two weeks (e.g., Coke SIMA, Basspro Shops, Cyient, Walmart India).

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‍2. Modular & End-to-End CLM

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Our platform was designed to be enterprise-ready from day one. Thanks to its scalable architecture and configurability, we can seamlessly roll out a variety of use cases, whether it's a simple intelligent repository or an end-to-end platform rollout.

Examples:  

- Cyient: End-to-end platform (Authoring + Repository + Obligation Management)

- Basspro/Marlabs/TVS Motors: Authoring + Repository

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3. Integrations & Connected Platforms

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Our platform supports REST API-based integrations for all components, enabling seamless integration with various systems.

Examples:  

- SAP Ariba P2P integration at Flipkart

- Native embedded apps for Salesforce and Dynamics 365 at Labvantage, Brillio, and Marlabs

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4. AI-Powered & Future-Ready

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‍Three key levers keep us future-ready:  

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‍- AI-Powered from Day One: Backed by our in-house teams.

- Plug-and-Play Architecture: Easily integrates best-in-class tech stacks with our AI layer.

- Domain Expertise: Our legal teams accelerate time-to-market and enhance functional expertise.

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5. Simplicity & Usability

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Our platform, developed with input from lawyers, sales, and procurement specialists, prioritizes user experience.

‍Key features include:

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‍- Contract 360 View: All contract-related information in one pane.

- Inbuilt Collaboration: Seamless collaboration within the platform, no user IDs or passwords required.

- Native Word Editor: Real-time document collaboration without manual uploads/downloads.

- Template Builder: UI-based for legal teams to manage clauses.

- Mobile App: For on-the-go reviews and approvals.

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6. Commitment to Data Security

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- SOC 2 Type II certified

- ISO 27001 certified

- Biannual VAPT audits with reports shared for transparency

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Final Thought

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The value of a particular contract is determined by contract performance. To make the best of each contract, enterprises need to not only improve performance by increasing speed and reducing costs but also make data-driven decisions that help determine risks, monitor financial implications and enhance goal effectiveness. Undoubtedly, with SimpliContract’s competitive AI-powered CLM solution, you can comfortably achieve the aforementioned goals.

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‍Dive deep into the topic and know the best route to your CLM implementation software process. Reach SimpliContract’s solution experts to get you started.

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