In today’s highly competitive business environment, companies must do everything possible to stay ahead of the curve. A part of doing so means utilizing breakthrough software and technology to achieve their bottom line. While CRM and database management software are staples for most businesses, not many businesses are familiar with legal technology.
Legal technology can handle everything from e-signatures to contract reviews and other legal aspects of running a business. Despite their utility, most legal teams have trouble choosing between contract review software and contract lifecycle management software.
Choosing the right piece of software requires knowing what role it plays in the contracting process.
Today, we’ll be comparing contract review software and contract lifecycle management software so you can pick what’s best solves your contracting problem.
Contract review software is a tool used to streamline the contract review and negotiation process. This type of software is typically used by in-house counsel or contract managers. It helps businesses save time and money by automating repetitive tasks associated with contract reviews, such as markups and redlining.
Some key features of contract review software include:-
- The ability to track changes made to contract drafts
- Version control
- Automated contract review workflows
- Redlining of words, phrases, codes, and figures that breach convention
- Data analytics like
- Automatic text correction based on predefined parameters
- Risk analysis
Top-tier contract review software may utilize artificial language and predictive technology to make the contract review process even faster and simpler. This engenders unmatched speed and accuracy throughout the entire exercise.
Standard contract review software will only cover the review aspect of the contracting process. However, more capable software handles both the review and the negotiation process with advanced suggestions and natural language processing technology.
Contract review software is immensely beneficial for businesses large and small. Some of its benefits include:
- Significantly reduces legal costs
- Produces high-quality drafts
- Mitigates legal risks
- identifies and eliminates bottlenecks throughout the entire process
Some contract review software platforms will have you up and running in as little as five minutes, while others may take a few hours to get the hang of. All you have to do is issue the software with various contract parameters and integrate it with past agreements. After that, it’s only a matter of uploading your drafts and waiting a few minutes for the full review.
Contract lifecycle management software is a contract management tool that helps businesses automate and streamline their contract processes from start to finish. This type of contract software typically covers the entire contract lifecycle, from contract creation to storage and retrieval. Users can clamp down on one particular aspect of the contract lifecycle, or the entire process.
The key features of CLM software include:
- Contract and document management
- Versioning automation
- Dashboards for reporting
- Extended search capabilities
- Reminders and alerts
- Workflow automation
- Analytics and reporting
- Centralized data repository
Contract lifecycle management software covers the entire contract process, from contract creation to storage and retrieval. This makes it the most comprehensive and complete software type for both contract reviewing and negotiation.
Some CLM software programs even handle preliminary tasks like vetting vendors, authorizing requests, and template creation. Later on, the contract software will deal with approval, signing, and post-agreement tracking.
Proper CLM software helps businesses to:
- Accelerate the contract approval process
- Provide crucial insights into
- Optimize revenue forecasting with better visibility
- Eliminate discrepancies and avoid contract breaches
- Get a competitive advantage over the competition
The first step is to get contract lifecycle management software that integrates with your business’s existing systems. After that, it’s a matter of training your employees on how to use the software and setting up workflows. However, sophisticated CLM software might require expert hands-on assistance to set up.
For a fair comparison, we’ll examine a few crucial touchpoints of a successful contract review and how each type of software performs in that regard.
Contract review software is typically cheaper than contract lifecycle management software. This is because CLM software offers a lot more features and functionality, making it the more expensive option. Some businesses find the extended capabilities of CLM software unnecessary. In such cases, content management software is the better option.
As we mentioned before, contract lifecycle management software covers the entire contract process from start to finish. This makes it the better option for businesses that want a comprehensive solution. Contract review software, on the other hand, is more limited in scope and only covers contract review and negotiation.
Contract review software is generally easier to use than contract lifecycle management software. CLM software can be quite complex, with tons of features and extensive functionality. The former is more straightforward and user-friendly, making it a viable option for small businesses with limited staff.
The bottom line is that contract lifecycle management software is the better option for businesses that want a comprehensive solution. Contract review software, on the other hand, is a more affordable and user-friendly option for small to medium-sized businesses.
There‘s no one-size-fits-all answer when it comes to contract software. The type of software you choose depends on the specific needs of your business. If you’re looking for a comprehensive solution that covers the entire contract process, then contract lifecycle management software is the way to go.
On the other hand, if you’re looking for a more affordable and user-friendly option, contract review software is the better choice. No matter which type of contract software you choose, make sure to do your research and select a program that integrates with your business’s existing systems.
With the right contract software in place, you’ll be well on your way to streamlining your contract process and improving your bottom line. Our state-of-the-art contract review software will help you do just that. Request a demo today and refine your contract review process.