Why Investing in a CLM Solution is More Important Than Ever

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Tom Dunlop, CEO at Summize, discusses the importance of CLM in business today and shares tips for anyone looking to start their CLM journey this year.
January 3, 2024

Transcript

I think there's probably two reasons why it's really important to invest in CLM at the minute. The first is more just generally for efficiency in the pre-signature process, so procurement. In the sort of environment we're in, a recession, everyone cares about cash. And I think the quicker people can get to cash by negotiating contracts faster, cutting all of the manual process out is absolutely key. I also think in terms of the post-signature side of it, extracting key information, so understanding what are the payment terms, understanding ways that you can terminate contracts that might also save money in this environment are massively important. So, considering contracts are the pretty much the center of every business. Speeding up how they get created in the pre-signature process, and then also be understanding what's in those signed contracts is just of paramount importance.

They need to set out their use cases. It's usual, existing processes. What is the benefits that they see, but also really think about the wider business. So for me, contracts touch pretty much every department in a business. So, don't just think of it from a legal perspective about what might make legal more efficient or what's important to legal team. Get those are the stakeholders involved, understand how would a sales team want to interact with the contract, how could they perhaps be more self-sufficient. Once you get the buy-in from the rest of the business, and also understand your existing processes, in which areas of that you can automate, actually the CLM almost picks itself.

I think a lot of GCs are very busy being busy and they don't feel like they have the time to be more efficient. So I think take the time to write down the existing process, and understand what roles people have in their team. And then from there, start to understand where automation can ultimately play a part. Fill in the requirements, and then go to market and buy some ice.

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About the author

Tom Dunlop

As an accomplished commercial and technology lawyer, Tom's experience with reviewing contracts was the catalyst that led to Summize. Prior to this, he worked as a Global Legal Director for several fast-growth technology companies.
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