What is contract lifecycle management software?
Definition: CLM software is a digital platform that manages contracts from creation to renewal, automating workflows and providing analytics.
Key components of Concord’s CLM software:
- Contract creation & templates
- Negotiation & redlining
- E-signature & execution
- Obligation tracking
- Renewal management
- Analytics & reporting
Concord CLM includes all these components in one platform starting at $399/month.
Case Study: Standardized Workflows Save Time and Money at Yates Construction
$15k/monthsaved in admin costs
25%reduction in costs
Weeks → Hourscontract turnaround
Key Benefits:
- • Centralized repository
- • Automated workflows
- • Version control
With 5,000 employees across 15 divisions, Yates Construction struggled with decentralized contract processes that created delays and compliance risks.
How Concord helped:
- • Concord unified all 15 divisions on one platform
- • Automated sending replaced manual email chains
- • Clear audit trails prevent unauthorized edits
"A lot of subcontractors refuse to go to work until they have a signed contract, so Concord gets our projects moving much faster. It provides tools that enable you to use it the way you need to."— Jenny McMullen, Corporate Contract Administrator
Case Study: Cross-Platform Integrations Unify Contract Workflows at Navarino
1-Clickautomated archiving
Zeromanual uploads
100%centralized data
Key Benefits:
- • Zapier integration
- • SharePoint sync
- • Instant data access
Navarino’s manual contract archiving across local drives and SharePoint created a fragmented data landscape, hindering efficient retrieval and reporting for their finance team.
How Concord helped:
- • Concord’s Zapier integration automates SharePoint uploads
- • Signed contracts sync automatically to designated folders
- • Finance gets instant access to all contract data
“Once the contract is signed in Concord, I get a notification and just do one click in Zapier to feed it through to SharePoint. It’s made it much easier for finance to access contract information.”— Nikos Anthopoulos, Efficiency Manager
Core capabilities of modern CLM software
Modern CLM software offers a comprehensive suite of capabilities designed to address each phase of the contract lifecycle. Understanding these core functionalities is essential for organizations evaluating potential solutions:
1. Contract creation and authoring
Modern CLM platforms streamline the contract creation process through:
Template libraries: Standardized, pre-approved templates for common agreement types that ensure consistency and compliance
Clause libraries: Collections of approved clauses that can be dynamically inserted based on specific contract parameters
Dynamic assembly: Rules-based document generation that automatically customizes agreements based on transaction details
Collaborative drafting: Tools that enable multiple stakeholders to contribute to document creation while maintaining version control
Research by Wolters Kluwer indicates that automated workflows in contract creation can lead to time savings of 20-50%, allowing legal professionals to focus on more strategic matters rather than routine document assembly.
2. Negotiation and approval
The negotiation phase often creates significant bottlenecks in contract processes. CLM software addresses these challenges through:
Redlining and version control: Tracking changes and maintaining a clear history of revisions throughout negotiations
Comparison tools: Side-by-side analysis of contract versions to quickly identify changes
Approval workflows: Configurable routing rules that ensure appropriate stakeholder review based on contract type, value, or risk profile
Negotiation playbooks: Guidance on acceptable fallback positions for commonly negotiated terms
According to Summize, implementing a CLM solution can achieve 45% operational efficiency gains in the negotiation and supplier contract creation process, with AI-powered contract review saving up to 85% of manual review time.
3. Execution and signature
Once terms are finalized, CLM systems facilitate efficient execution through:
Electronic signature integration: Seamless connections to e-signature providers for legally binding digital execution
Signatory management: Automatic routing to required signatories in the correct sequence
Status tracking: Real-time visibility into the signature process
Execution records: Complete audit trails of the signature process for compliance and record-keeping
4. Obligation management
After execution, CLM software ensures that contractual commitments are fulfilled through:
Obligation extraction: Automated identification of key responsibilities and deadlines
Task assignment: Delegation of specific obligations to appropriate owners
Proactive alerts: Automated notifications for upcoming deadlines or required actions
Performance tracking: Monitoring and reporting on obligation fulfillment status
Wolters Kluwer notes that proactive alerts for significant milestones like contract expiry or renewal provide essential insights into the business impact of these events, preventing organizations from being caught off guard by critical deadlines.
5. Amendment and renewal management
Throughout the contract term, CLM systems facilitate changes and renewals via:
Amendment workflows: Streamlined processes for modifying existing agreements
Renewal forecasting: Advance visibility into upcoming renewal opportunities
Auto-renewal alerts: Notifications for contracts with automatic renewal provisions
Term optimization: Analysis of renewal opportunities to improve contractual terms
6. Analytics and reporting
Perhaps most importantly, modern CLM systems transform contract data into actionable business intelligence through:
Performance dashboards: Visual representations of key contract metrics
Custom reporting: Configurable reports on contract types, values, terms, and status
Risk analysis: Identification of potential contractual risks across the portfolio
Spend analysis: Insights into contract-related expenditures and opportunities for optimization
CLM software capabilities comparison
When evaluating CLM solutions, organizations should consider how different offerings address their specific requirements. The following table compares key capabilities across different types of CLM solutions:
Key benefits of CLM software implementation
Organizations that successfully implement contract management software realize numerous benefits that extend well beyond basic operational efficiency:
Operational efficiency
Contract automation software significantly streamlines contract processes, reducing manual effort and accelerating cycle times:
Reduced cycle time: According to Aberdeen Group, CLM platforms can reduce contract approval times by 82%, decreasing the timeline from an average of 3.4 weeks to just days.
Administrative savings: CLM systems can save organizations an estimated 9.4% in administrative costs related to contract management.
Increased throughput: Automation of routine tasks enables teams to handle higher contract volumes without adding headcount.
Risk mitigation
Effective contract management is essential for identifying and addressing potential risks:
Compliance enforcement: Ensuring adherence to regulatory requirements and internal policies through standardized processes and proactive monitoring.
Obligation fulfillment: Reducing the risk of missed deadlines or commitments through automated tracking and alerts.
Consistency improvement: Standardizing contract language to eliminate problematic variations that could create unintended liabilities.
Financial optimization
Beyond operational and risk benefits, legal contract management software delivers measurable financial improvements:
Revenue acceleration: Faster contract cycles translate directly to quicker revenue recognition.
Spend management: Greater visibility into supplier agreements enables more effective vendor management and cost control.
Discount capture: Timely awareness of early payment discount opportunities increases savings.
Leakage prevention: Systematic tracking of contract terms prevents revenue leakage from pricing errors, missed renewals, or overlooked obligations.
CLM customers achieved ROI between 121% and 356% from their implementations, demonstrating the substantial financial benefits of effective contract management.
Strategic insights
Advanced CLM platforms transform contract data into valuable business intelligence:
Performance analytics: Measuring and comparing supplier or customer performance against contractual commitments.
Market benchmarking: Comparing internal contract terms against industry standards to identify optimization opportunities.
Negotiation leverage: Using historical contract data to strengthen future negotiating positions.
Relationship management: Identifying opportunities to strengthen key business relationships through proactive contract management.
CLM market landscape: key providers and differentiation
The CLM software market features a diverse ecosystem of providers, ranging from specialized contract management vendors to broader enterprise software companies that include CLM capabilities within their suites. Understanding this landscape is essential for organizations evaluating potential solutions.
Enterprise CLM providers
Enterprise-focused CLM providers offer comprehensive platforms designed for large organizations with complex contract ecosystems:
Icertis: Known for its AI-driven contract intelligence platform that extends beyond basic management to provide deeper insights and integration capabilities.
DocuSign CLM: Builds on DocuSign’s e-signature foundation to offer end-to-end contract management capabilities with strong execution features.
Coupa CLM: Integrates contract management with broader procurement and spend management functionality for a unified approach to supplier relationships.
SAP Ariba Contract Management: Provides CLM capabilities within SAP’s broader procurement and supply chain ecosystem.
Mid-market CLM solutions
Several providers focus on the mid-market segment, offering robust functionality with more streamlined implementation approaches:
Concord: Delivers an intuitive platform that emphasizes ease of use and quick time-to-value for growing organizations.
Agiloft: Offers a highly configurable solution that can be customized to diverse business requirements without custom coding.
ContractWorks: Focuses on simplifying contract management with straightforward repository and tracking capabilities.
PandaDoc: Combines document creation, workflow, and e-signature capabilities in an integrated platform.
Specialized and emerging players
The market also includes specialized providers that focus on specific industries or contract types:
JAGGAER: Targets complex sourcing and procurement contracts with specialized capabilities for these use cases.
Conga CLM: Emphasizes integration with Salesforce for organizations heavily invested in that ecosystem.
Sirion: Specializes in complex service contracts and supplier relationship management.
Evisort: Leverages AI for contract analysis and data extraction with a focus on rapid implementation.
Why Choose Concord Over Other CLM Solutions
Concord’s Unique Advantages:14-day implementation vs. 4-6 months for enterprise CLMNo per-user pricing – unlimited users includedAI-powered data extraction with zero data retention policyNative e-signature included (no DocuSign fees)5,000+ integrations via Zapier (vs. limited enterprise APIs)
Trusted by 500+ companies who previously used: Ironclad (32%), DocuSign CLM (28%), Manual processes (40%)
CLM Software Comparison: Concord vs. Enterprise Solutions |
Concord CLM Performance Data (2024 Analysis)
Based on analysis of 500+ Concord customers:
Average contract cycle time: 3.2 days (vs. industry average 20 days)
Contract value retained through better renewal management: $2.3M average
Time to first executed contract: 48 hours after setup
Methodology: Analysis of 50,000+ contracts processed through Concord in 2024
Implementation best practices: ensuring CLM success
While CLM software offers significant potential benefits, successful implementation requires careful planning and execution. Industry experiences and expert recommendations highlight several best practices:
1. Define clear objectives and success metrics
Before selecting a CLM solution, organizations should clearly articulate what they hope to achieve and how they will measure success. According to World Commerce & Contracting, setting clear goals and defining discrete milestones for your CLM journey is essential for demonstrating early value.
Key considerations include:
Specific pain points: Identifying the most pressing contract management challenges that need immediate attention
Priority processes: Determining which contract types or departments will be addressed first
Measurable outcomes: Establishing concrete metrics to evaluate implementation success, such as cycle time reduction, cost savings, or compliance improvement
Timeline expectations: Setting realistic expectations for implementation phases and value realization
2. Secure cross-functional alignment
Contract management inherently spans multiple business functions. Successful CLM implementations require buy-in from diverse stakeholders:
Legal teams: Typically the primary users and often the champions of CLM initiatives
Procurement: Major stakeholders for supplier agreements and purchasing contracts
Sales: Concerned with customer agreements and revenue-generating contracts
Finance: Invested in financial terms, obligations, and revenue recognition
IT: Essential for system integration, data security, and technical implementation
Business units: End users who initiate contracts and manage relationships
KPMG emphasizes the importance of stakeholder involvement and understanding how each business function interacts with contracts throughout the organization.
3. Take a phased implementation approach
Rather than attempting a “big bang” implementation across all contract types and departments, organizations should consider a phased approach:
This incremental approach delivers value more quickly while allowing for learning and adaptation throughout the implementation process.
4. Prioritize data quality and migration
The value of a CLM system depends significantly on the quality of contract data it contains. Organizations should:
Cleanse existing data: Review and standardize contract metadata before migration
Prioritize active agreements: Focus initial migration efforts on current contracts with ongoing obligations
Establish data governance: Define standards for contract data quality and maintenance
Leverage AI for extraction: Use automated tools to extract key terms from legacy contracts
McKinsey & Company notes that effective data preparation and migration are critical first steps in any CLM implementation project.
5. Focus on user adoption
Even the most sophisticated CLM system will fail to deliver value if users don’t embrace it. Successful implementations include:
Intuitive user experience: Choosing solutions that align with existing workflows and minimize learning curves
Comprehensive training: Providing role-specific education on system capabilities and processes
Change management: Communicating benefits and addressing resistance to new processes
Ongoing support: Ensuring users have access to assistance as they adapt to the new system
Concord’s research highlights the importance of user adoption, noting that implementation success depends heavily on selecting tools that help teams move faster without complicating their jobs.
See Concord’s contract lifecycle management software in action.
Common implementation challenges and solutions
Despite careful planning, organizations often encounter challenges during CLM implementation. Understanding these common obstacles and how to address them can improve the likelihood of success:
Data migration complexities
Challenge: Many organizations struggle with migrating existing contracts into new CLM systems, particularly when dealing with poor legacy data quality or inconsistent formats.
Solution:
Conduct thorough data assessment before migration
Implement automated data extraction tools to facilitate the process
Consider a progressive migration strategy focusing on the most important contracts first
Establish clear data quality standards for newly created contracts
Integration with existing systems
Challenge: CLM software must connect with multiple business systems, from CRM and ERP to e-signature and payment processing platforms.
Solution:
Prioritize integrations based on business value and technical feasibility
Validate integration capabilities during the vendor selection process
Leverage pre-built connectors where available
Ensure IT involvement in integration planning and execution
Resistance to process changes
Challenge: Users accustomed to existing contract processes may resist adopting new workflows and technologies.
Solution:
Involve end users in the selection and implementation process
Emphasize benefits specific to each user group
Provide comprehensive training tailored to different roles
Start with quick wins that demonstrate immediate value
Secure visible executive sponsorship for the initiative
Scope creep
Challenge: As implementation progresses, stakeholders often identify additional requirements or desire more complex functionality than initially planned.
Solution:
Clearly define minimum viable product (MVP) criteria at the outset
Implement a formal change control process for new requirements
Maintain focus on core objectives and success metrics
Plan for future enhancements in subsequent project phases
CLM implementation ROI: measuring success
Quantifying the return on investment from CLM implementation is essential for justifying the initial investment and securing resources for ongoing optimization. Organizations should consider multiple dimensions of value:
Efficiency metrics
Cycle time reduction: Average time from contract request to execution
Administrative time savings: Hours saved through automation of routine tasks
Self-service adoption: Percentage of contracts initiated through self-service channels
Process exception rate: Frequency of deviations from standard workflows
Risk and compliance metrics
Contract risk score improvement: Reduction in aggregate risk ratings across the portfolio
Compliance rate: Percentage of contracts adhering to required standards and terms
Obligation fulfillment: Rate of on-time completion of contractual commitments
Audit findings: Reduction in contract-related audit issues
Financial metrics
Cost avoidance: Savings from improved contract terms or avoided penalties
Revenue acceleration: Additional revenue recognized through faster contract processes
Resource optimization: Ability to handle increased contract volume without adding headcount
Direct savings: Reduction in external legal spend for routine contract matters
According to a 2019 Forrester analysis highlighted by Aberdeen Group, organizations implementing CLM software achieved a remarkable 356% ROI over three years, saved $4 million on contract processing costs, and grew revenues by almost $339,000 within the same timeframe.
Similarly, Cottrill Research found that companies implementing CLM platforms achieved a 1% larger average deal size, 2.5% higher annual renewal rate, and 24% shorter sales cycles—demonstrating substantial financial benefits beyond simple operational improvements.
The future of CLM software: emerging trends
As technology continues to evolve, several trends are shaping the future of contract lifecycle management software:
1. Advanced AI capabilities
Artificial intelligence is revolutionizing contract management beyond basic data extraction:
Generative AI for drafting: Using large language models to generate contract language based on specific parameters
Risk prediction: Identifying potential issues before they materialize based on contract language and historical performance
Negotiation intelligence: Providing guidance on negotiation strategies based on historical outcomes
Automated summarization: Creating plain-language summaries of complex legal documents
2. Blockchain for contract execution
Blockchain technology offers promising applications for contract management:
Smart contracts: Self-executing agreements that automatically enforce terms when conditions are met
Immutable audit trails: Tamper-proof records of contract history and changes
Decentralized verification: Distributed validation of contract authenticity and status
Automated payments: Trigger-based financial transactions linked to contract milestones
3. Extended ecosystem integration
CLM platforms are expanding their integration capabilities to connect with broader business ecosystems:
Supply chain visibility: Linking contract terms with supply chain performance and logistics data
Financial planning integration: Connecting contract obligations to budgeting and forecasting systems
Customer success alignment: Coordinating contract terms with customer health and success metrics
Regulatory compliance systems: Ensuring contracts remain aligned with evolving regulatory requirements
4. Enhanced collaboration capabilities
Future CLM systems will further streamline collaboration across complex stakeholder networks:
In-context communication: Discussion and negotiation capabilities embedded directly within contract documents
External collaboration portals: Secure environments for negotiation with external parties
Knowledge management integration: Connecting contract insights with organizational knowledge bases
Mobile optimization: Fully-featured mobile experiences for contract review and approval
Need to know
Frequently Asked Questions
Conclusion: strategic importance of CLM software
Contract lifecycle management software has evolved from a legal department convenience to a mission-critical business application with enterprise-wide impact. As organizations face growing contract volumes, increasing regulatory requirements, and the need for greater operational efficiency, CLM software provides the foundation for transforming contract management from an administrative burden into a strategic advantage.
The substantial market growth—projected to reach $6.4 billion by 2032—reflects this shifting perspective, as does the impressive ROI figures reported by organizations that have successfully implemented the best contract lifecycle management software solutions. With potential returns ranging from 121% to 356%, CLM software represents one of the most compelling technology investments available to modern enterprises.
Beyond these quantifiable benefits, effective contract management enables organizations to make better decisions, build stronger relationships, and operate with greater agility in an increasingly dynamic business environment. By providing visibility, automation, and intelligence throughout the contract lifecycle, CLM software empowers organizations to unlock the full value of their commercial relationships.
For organizations contemplating CLM implementation, the key to success lies in clear objectives, cross-functional alignment, phased implementation, data quality focus, and user adoption. By addressing these critical factors, businesses can navigate the complexities of implementation and realize the substantial benefits that effective contract management delivers.
The problem Concord solves
Managing contracts is difficult because they can be scattered across different places: emails, cloud drives, personal drives, and even paper copies.
Many companies rely on spreadsheets to store contract details like lifecycle dates and total contract value, but these spreadsheets don’t provide a full view of the contract, and it’s tedious to keep updated.
When contracts are saved on personal drives, critical information—like renewal dates and deadlines—is hidden from the rest of the team. This can cause headaches for audits.
Before Concord
If a renewal date is missed, contracts may auto-renew without the chance to renegotiate terms, potentially locking the company into bad deals.
Worse, important contracts could expire without notice, leading to service disruptions, penalties, or lost business opportunities.
Concord solves these problems with its AI-powered full contract lifecycle management platform.
