A lot of electronic document and contract management software has emerged these past years promising to help every business in automizing their workflows. However, what are the electronic document and contract management system requirements that are really important for the growth of your company? Check them out here in this article.
Not all electronic document and contract management software are created equally. Some of them have features that aren’t really that necessary. While some contain what is required in scaling your organization at a higher level. So without further ado, here are the electronic document and contract management system requirements your software must contain.
- Contract Creation workflow with different swimlanes triggered by requirements gathered in an intake form.
- Contract Clause Library with the ability to organize clauses in ascending/descending order of risk.
- Integration with other “source of truth” systems such as vendor masters, AP systems, configure-price-quote systems.
- Ability to create hierarchical approval workflows based on quantitative thresholds such as contract value, or qualitative thresholds such as data privacy addendum requirements triggered by a type of relationship with vendor/counter-party.
- E-signature integration with the ability to be implemented first on a standalone basis, then afterward integrated with the contracting workflow.
- Intake form that can integrate with single sign-on (SSO) environments such as company intranets, matter management systems and enterprise content management/knowledge management systems.
- Ability to define parent-child hierarchies in contracting relationships, with functionality for the entire contract family obligation status to be updated if the metadata for any document (i.e. amendment) is updated.
- Reporting on things such as contracting cycle time, the variance of end contract from starting template (negotiation intensity) and fluid reporting by every metadata field in the database.
- The ability to fluidly define metadata by contract type, with flexibility in articulating metadata field definitions and ease of updating fields as empirical knowledge of contracts is gained through review.
- The ability of the CLM system to represent complex counterparty relationships. For example, the ability to represent situations such as multiple contracting entities within one contracting party having relationships with the same counterparty, and the ability to easily identify if there are superseding relationships in other agreement records.