Technology has become a critical measure of organisational effectiveness, efficiency, and performance. Today any company that does not match the emerging trends might risk being phased out by its competitors. 

Any business should focus on innovative technologies whose implementation will aid in streamlining organisational processes, cutting on inefficiencies that might result from a blunder in operations management and process automation. Through automation technology, complex business processes can be automated to remove human inputs, decrease errors and increase the speed of delivery, boost quality, and minimise costs. 

The Challenges and Benefits of Contract Lifecycle Management

Process automation can bring the following benefits to an organisation:

• Transparency in Management
• Improve Productivity
• Increase Compliance
• Cut Costs
• Reduce Errors

Contracts are certainly the most important component in the business process as they establish the foundation of all business relationships. However, due to the growing number of contracts, complexity increases, and the ongoing need for amendments makes it challenging to manage the valuable information in the contracts.

Contract management is the process that enables both parties to a contract to meet their obligations in order to deliver the objectives required from the contract.
It contributes significantly to a company’s financial health and is seen as a strategic weapon in optimising contract performance and improving the return on investments.

An important report by World Commerce & Contracting stated that an average of 9.2% of annual revenue is lost due to ineffective contract management, such as slow negotiations and missed milestones. This percentage gets even higher for larger organisations, where it reaches 15%.

The main challenge a business might meet when setting an efficient contract lifecycle process is that contract creation, negotiation and execution can involve many stakeholders, multiple departments, and hundreds of hours of work.

Poor management of contracts can increase risks. Traditional contracts can take weeks or even months to initiate, and there have been numerous instances of infringements and a lack of trust in contracts, in the private and public sectors.
Contract management is the process of generating, managing, and storing contracts digitally to create a more efficacious contract workflow.

Automating contracts will help to remain compliant and to automatically extract key data to increase productivity and avoid human errors.

The Rise of Smart Contracts in Business

Contract automation is changing how we do business in the future through Smart contract: a piece of software code that resides in the blockchain.
It is an immutable, transparent, and automated code.

Everyone can see it, no one can change it, and there is no need for third-party intervention, as it can execute by itself.

Smart contracts act as agreements between parties, and the terms can be programmable.
Let’s see which are the benefits that a business can achieve by adopting Smart contracts

• Transparency: As Smart contracts run on an open blockchain, the code is available for anyone to see. This openness eliminates the chance of disputes and issues arising at a later stage and the risk of miscommunication.
• Precision: With Smart contracts, there are no chances of error or misinterpretation of the legal jargon.
• Time-efficient: The speed of completing a transaction with Smart contracts is way faster than with traditional contracts.
• Safety and Efficiency: Smart contracts meet the highest standards of safety and efficiency as the execution and validation of transactions are based on cryptographic verification.
• Data Storage: With Smart contracts, all transaction details are stored on the blockchain, immutable storage for any dispute regarding the contract terms in the future.
• Savings: Running Smart contracts can save up a lot of money, by removing intermediaries, and paper-based documents.
• Trust: The transparency and security of Smart contracts make them reliable.

The Smart contracts of Trakti, running on blockchain, can remove the intermediary through code, automate the process, and all the information can be stored in a location accessible by all parties at all times. Once settled in the blockchain, the transaction becomes an irreversible truth, creating a ledger where anyone, with authorised access, can check the records.

Our Smart contracts offer a set of advantages for automated, effective, and safe contract management:

• Integration with eIDAS compliant e-signature
• Integration with KYC and AML for identity verification and counterparty rating
• Automatic execution of rules and payments
• Deadline alert to automatically receive updates on status and deadlines that affect contracts
• Set-up and negotiation customization to personalise the proposal
• Management of negotiation authorizations to ask for permits and approval before the negotiation is published and made known to the counterparties
• Notarization of contracts to increase the level of security and verifiability of negotiations

Trakti is a no-code platform, accessible to everyone, that automates your templating, negotiation and obligation management process supporting the entire contract life cycle management.

With our platform, you can centralise contract storage, strengthen compliance, and automate the creation, execution, and management of any type of contractual agreement by increasing the efficiency of your contract life cycle management, all in one, user-friendly, compliant, and automated platform!

Ready to find more about Trakti?