What is Contract Analytics?
Contract analytics is the process of reviewing an organization’s contracts to identify and extract data from them leading to better risk management. With Contract Analytics, transforming your legal documents which also includes legacy agreements and hard copies into structured data and insight drives value, reduces risk, and improves the efficiency of legal operation teams.
”Research consistently shows that commercial and contracting issues lie at the heart of 70-75% of failing projects, resulting in an average of 9.2% of annual revenue leakage.”
What does Contract Analytics Technology include?
In simpler terms, contract analytics technology is a software that leverages AI and Machine Learning capabilities enabling companies to analyze contracts more accurately, and effectively.
What are the benefits of Contract Analytics?
Contract analytics improves the business performance of organizations by providing visibility of risks, obligations, and opportunities in their contracts. It gives a clearer picture of contract hotspots. It is the responsibility of In-house Counsels and Legal Operations to manage and quantify risk and compliance.
Contract Analytics allows In-house Counsels and legal Operations to oversee hundreds of thousands of contracts and agreements in your company to ensure they aren’t hiding any obligations, service level agreement metrics, or other liabilities that could expose the company to risk. By providing quick and easy access to your contractual provisions data, it allows you to respond to an audit request or an organizational change quickly and efficiently.
1. RISK MANAGEMENT
Scans the CLM repository for risk-prone clauses, text, or data. It can identify contracts with suppliers in high-risk zones-due to changing regulatory compliances in an uncertain economy. It ensures that the contracts enforce and operate on the latest terms, conditions, controls, and policies.
2. FINANCIAL MANAGEMENT
Assists in reducing legal fees, eliminating renewals of unwanted services, and identifying untapped revenue opportunities. It also provides complete spend visibility, a high-value benefit that ensures cost-effective contract management.
3. IMPROVES BUSINESS PERFORMANCE
Enhances the business performance by providing visibility of risks, obligations, and opportunities in the contracts. It’s advanced AI technologies help in identifying trends and opportunities for performance improvement, cost recovery, savings, and loss mitigation.
4. PRODUCTIVITY/OPERATIONAL EFFECTIVENESS
Tracks important data such as dates, and offers automated reminders and tools that let users schedule notifications as needed. By eliminating manual processes and centralizing the document repository it allows greater control and improves efficiency.
What does iContract’s Advanced Analytics offer?
The Merlin AI algorithm harnesses the capabilities of AI technologies like NLP, Machine Learning, Semantic, and Text Analysis to recognize patterns & extracts key variables like clauses, dates, parties, etc. across hundreds of thousands of contracts. It maps and understands the intent of the terms and clauses to analyze risks in contracts, providing better visibility into the semantic structure of each contract.
Why should you adopt iContract for Contract Analytics?
iContract coupled with Merlin can extract meta-data elements with its advanced search capabilities and provides proactive insights and intuitive visualization on all performance KPIs with a customizable dashboard.
How does iContract’s Advanced Analytics mitigate risk?
iContract is a powerful solution that ensures all mandatory and new regulatory compliances are covered by identifying compliance gaps, modifying existing contracts, and updating stakeholders. It streamlines clause-level tracking for environmental, state, federal, and international regulations. Merlin AI also provides real-time monitoring of contracts to analyze risks associated with financial factors like payments, currency exchange rates, and price variations and thus guarantees better returns when it comes to identifying and mitigating risk.
Merlin Contract Discovery and Insta Review assist with:
How can iContract support your business?
Reduces organizational risks by analyzing and flagging missing contract elements and outliers
Identifies cost savings by analyzing third-party and legacy contracts to get insights into purchase commitments, milestones, and obligations.
Improves compliance and regulatory mandates by monitoring and responding to regulatory audit requests.