What is Contract Data?

Contract data refers to all the information contained within a legal agreement. This can include a wide range of details, from basic information such as names of the parties involved, dates, dollar value of the contract and the contract type (e.g., employment, non-disclosure agreement), to harder-to-find embedded information. Embedded contract information can include specific clauses, signatures, as well as facts and figures from included tables and charts.

Traditionally, contracts were seen as purely legal documents, only referred to if there were issues. But increasingly, companies are recognizing the value of contract data. By extracting and analyzing this data, businesses can gain valuable insights that would otherwise remain buried within the documents. 

The Value of Contract Data

Contract data can be used to track a number of different things, including the number of contracts that are active at any given time, the total value of all contracts, and the average length of time that a contract is active. This data can be used to identify trends within the organization and make decisions about future contract negotiations.

Organizations can use contract data to improve their overall performance by understanding where they are spending money and what kinds of contracts are providing the most value. Specifically, contract data can help organizations with:

1. Identifying trends in contract negotiations

2. Improving the efficiency of the contracting process

3. Managing risk and ensuring compliance with regulations

By tracking this data, organizations can make informed decisions about where to allocate their resources to get the best return on investment.

Many businesses don't realize how important it is to track contract data. Organizing and tracking contract data can be a daunting task, but businesses must do it to maintain compliance with agreements. By structuring data and implementing a contract data management system, businesses can more easily keep track of their contract obligations. In this article, we will discuss how to best track contract data so that businesses can stay compliant. Contract management software can help organizations track and manage contract data for the entire organization. The software can provide a centralized location for the company's contracts and structured data. This will allow organizations to see the big picture regarding their contractual obligations.

How should businesses track contract data efficiently?

Businesses should have a plan for tracking contract data. This data can be stored in several places, but it is important to keep it organized and accessible.

Contract lifecycle management software like Icertis Contract Intelligence can help businesses track contract data. The Icertis Platform is designed specifically for this purpose, while others are more general document management programs. It is important to find one that will work well for the specific needs of your business.

The most important thing is to have a system that works well and that all employees are familiar with. This will make it much easier to keep track of contracts and ensure they are properly managed. Some best practices include:

1. Data is organized and structured, making it easier to track and manage.

2. Data is easily accessible and searchable.

3. Contract data is stored correctly.

4. Data is easy to understand and use.

5. Contract is available to everyone who needs it when they need it

The importance of tracking contract data

To streamline business functions and make informed decisions, it is important to track contract data. This data can be used to identify trends, optimize performance, and predict future needs. By tracking key data fields such as contract value, start and end dates, and payment terms, businesses can gain a better understanding of their contracting process and make improvements where necessary.

In addition to improving business efficiency, tracking contract data can help protect against legal risks. By having a clear record of all contracts entered into, businesses can avoid disputes and ensure that they comply with applicable laws. Tracking contract data is, therefore, an essential part of running a successful business. By tracking key contract data, businesses can protect themselves against legal risks and avoid disputes. Organizations increasingly rely on contract lifecycle management (CLM) systems to track and manage contract data. A CLM system can provide a centralized repository for an organization's entire contract portfolio, as well as automate key contract management processes. This can help organizations save time and money and improve compliance with contractual obligations. In this article, we will discuss how to select and implement a CLM system that is right for your organization.

In short, tracking contract data can help businesses gain insights into these important areas:

1. Identify trends

2. Predict future needs

3. Streamline contract management processes

4. Protect against legal risks

5. Improve compliance with contractual obligations and regulations

What type of data should your business be tracking?

To manage contract data effectively, it is important to know what data to track. Here are the three main data types that should be tracked:

Structured data

Structured data is the most important type of data to track. This data includes information such as the contract term, start and end dates, pricing, and any special terms or conditions. This data should be stored in a database to be easily accessed and analyzed.

Unstructured data

Unstructured data is also important to track. This type of data includes emails, PDFs, and Word documents. This data can be harder to track because it is not stored in a central location. However, some tools can help with this, such as document management systems.

Metadata

Metadata is the third type of data that should be tracked. This data includes information about the document that can be used to find and share it. Metadata is important because it helps you understand what a document is, who created or last modified it, when it was created and modified, and where it came from.

What are some difficulties with tracking contract data?

Contract data is notoriously difficult to track. This is because contract data is often unstructured and siloed across different departments and systems with no central system connecting them. World Commerce and Contracting reports that on average, a company has contracts stored in 24 different repositories across the business! Put another way, departments are left to their own devices when managing their business agreements. As a result, it can be difficult to get a complete and accurate picture of all the contract data that an organization has.

This can lead to problems when managing contracts, as it can be difficult to track changes or identify which contracts are due for renewal. It can also make it difficult to spot trends or understand how well a company performs against its contractual obligations.

Solving the Challenges of Siloed Contract Data

There are various ways to try and address this problem, such as implementing a contract data management system, which can help to structure and consolidate contract data. However, even with these solutions in place, tracking contract data can still be a challenge. Contract data can be difficult to keep track of, especially if there are multiple versions of a single contract. Here are some tips on how to track contract data:

1. Keep a central repository for all contracts.

2. Make sure each contract has a unique identifier.

3. Track changes to contracts over time.

4. Use software to manage contract data.

5. Keep communication open between the parties involved in a contract.

The Icertis Platform

As this article has demonstrated, contracts are too critical to a business to leave in fragmented repositories across an organization. By starting a conversation with your company about unlocking contract data value with a CLM solution can look like, you can set it on a path to better commercial outcomes and less risk.

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