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Digital Contract Lifecycle Management- 5 Myths

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When businesses consider using contract management software, they frequently do so with preconceived notions. These “myths” aren’t necessarily completely false, but they may lead to misinformation.

Here are five software fallacies about contract management that need to be dispelled.

1. There’s nothing wrong with using Excel spreadsheets and shared folders to manage contracts.

It’s challenging to stay on top of the data in the storage with contracts dispersed everywhere. However, it will be simpler to get that data into the system and run if contracts are managed using contract management software.

2. It’s not a big deal to miss important contract dates.

An organization may find itself in a difficult position if contracts are not reviewed promptly. The business will lose money if it doesn’t comply with regulations or misses a deadline for renewing a contract that was supposed to be canceled. Set email and in-system alerts to keep track of your deadlines to prevent this.

3. Online cloud storage isn’t safe.

It is a reality that contracts can be safely managed on the cloud or on a company’s internal server network. Both systems’ security relies on skilled, reliable IT personnel using the most recent information. Your IT staff is trained to prevent system vulnerabilities, fix bugs, and keep software current on both the servers and individual devices in the case of your own on-premise servers (and most likely you are backing up your systems with cloud-based servers).

4. Electronic signatures are neither safe nor legal.

Federally and at the state level, electronic signatures have been recognized as having the same legal status as “wet signatures.” Electronic signatures are the best option for integration since they are tamper-proof and record each stage of the signing process in a thorough audit trail. Additionally, they are much easier for your signatories to use. 

5. Legacy contracts can be automatically migrated.

The purpose of investing in a contract management system is for many organizations to consolidate legacy contracts into a single electronic repository. They believe this will be a straightforward drag-and-drop process or, at most, involve scanning paper contracts. Final executed contracts will be in one location, eliminating the need to go through several file cabinets and shared drives to find them.

Professionals can save time and handle contracts more successfully with the use of contract management software. You can assess CLM software and dispel preconceptions about it by learning how it has been successfully used in actual corporate settings.

We at DOQFY aim to enable transformation for businesses towards a paperless environment leveraging technology for documentation, legal ancillary, and registration services.

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