With growing customer demands & expectations, changing standards & compliance requirements, shortening product innovation cycles, ever-evolving commercial landscape etc, it’s time for the Healthcare industry to step up and re-evaluate their game plan. To thrive in an ultra-competitive business ecosystem and gain a first-mover advantage, it’s important for them to be early adopters of technological transformations. One of the key areas that merit such a transformation is the management of contracts, considering the number of contractual deals, complex approval cycles involved and strict adherence that these contracts demand.
Contracts Lifecycle Management (CLM), seeks to make all the key processes associated with a contract, from initiation to renewal, effective by technological enablement. Thus, the entire chain of contracts of a Healthcare firm – commercial dealings, procurements, product licensing, R&D etc are managed with improved processing efficiency, increased compliance and reduced errors and amendments after signatures. According to a Customer Study 2011 by Apttus, there has been a 42% increase in contract processing speed and a 43% improvement in compliance adherence among the firms, who implemented CLM.
CLM broadly involves building a central data warehouse to capture & store all the data created, authoring new contracts in accordance with the compliances and contracts approved in the past, tracking all the necessary actions, creating collaborative workflows for accelerated approval cycles & improved ability to make amendments, simplified integration to all the internal systems & workflows to ensure adherence to contractual obligations. Above all, an end-to-end view into the entire lifecycle to analyze, find lapses and devise actions to improve the efficiency of the entire chain.
As this process gradually seeps in and takes over the company’s work architecture, some of the evident results that have a positive business impact are: –
- With the complete data stored in a central warehouse, it provides a single point-of-view into every relevant information. Quick fingertip access to the data, helps companies better prepare for or adapt quickly to unprecedented scenarios and risks
- Data, now centrally present and visible to everyone involved when paired with collaborative workflows in authoring and approval implies clarity, accessibility and transparency
- Tracking ensures the marking up of all the important time milestones. With a properly laid out timeline and data access at fingertips, every department has the opportunity to maximize its efficiency
- Collaborative workflows for contract authoring and approval expedite amendment inception processes & approval cycles. Also, it ensures the proactive involvement of all the stakeholders
- Integrations to the internal systems help prepare all the teams to meet the obligations committed in the contract
- Legal teams are empowered to analyze critical terms & conditions, understand the risks involved and take pre-emptive actions to protect the firm from any legal dispute
Apart from the above-mentioned functionalities, Renewal Management is another important practice of a CLM implementation. It involves devising mechanisms to push reminder notifications to concerned teams when a contract is nearing renewal and automated actions to scrutinize & renew pivotal contracts.
At a time when Blockhain is slowly becoming a norm in the business world, the moment for companies, seeking to establish themselves as global leaders, to revamp their contract management with technology is here.