In our last blog we spoke about the various factors demanding the use of the technology for managing contracts. (Click here to read part 1 and part 2 for the series)

So what are the spokes in the contract management wheel and the possible solutions?

Problem no. 1:

Until the advent of suitable technology to manage contracts, organizations often used Word and its features, like track changes, to write and review contracts. Contract locations were fragmented, sometimes with scanned copies of contracts which are not searchable. The biggest challenge organizations face while transitioning to a contract management technology is the loading of historical data into the new system.

Solution:

For the new system to be able to handle different types of historical contracts, it needs to have different Meta data.

Problem no. 2:

Procurement executives may fear confidential contracts being accessible to all with centralized contract repository. Thus they may opt out of the technology and choose to save the contract on their system.

Solution:

The contracting technology should have a strong security feature that keeps confidential contracts secured from unauthorized use. This can be done by incorporating user or folder-based access.

Problem no. 3:

Different users, like legal, procurement, business etc., have different needs. For instance, legal may need to check if the new contract has any legal ramifications, or senior management needs to check IT contracts utilization reports. If the technology is unable to provide users what they need, then the adoption is bound to decline.

Solution:

Technology should be able to cater to the needs of different users.  For instance, senior management would like to get a top view of the contract performance and not get into the nitty-gritty. For such users the technology should be able to provide access only to the relevant reports and dashboard.

Problem no. 4:

Difficult user interface scares away users who then eventually opt out of the contract technology.

Solution:

The user interface of the solution should be easy and smooth so that users require minimal training on “How to use”. It should be modeled after e- portal websites that have amazing interfaces.

Stay tuned as we talk about the benefits of contract management automation in the next blog.