CLM is the New MS-DOS

Tech history is littered with examples of products that solved pressing problems and achieved widespread popularity, but were eventually superseded by technologies that offered broader, more flexible and updated capabilities. A classic example is the demise of the old command line interfaces that dominated the early days of consumer computing (Remember MS-DOS? Anybody?)

In the long run, MS-DOS could no longer compete with the rise of graphical user interfaces (GUIs), with their more user-friendly functionality, support for multi-tasking, and more intuitive presentation of information via windows and icons.

Contract lifecycle management (CLM) software may be heading in the same direction. CLM solutions have certainly served an important function and thus, achieved some impressive market penetration. But CLM solutions’ limitations are becoming more obvious to companies as they realize that the true value of managing their contracts effectively (i.e. driving incremental revenue) lies in the data buried within their contracts, not the process by which they’re put in place. 

As Lloyd Alexander, our VP of Strategic Solutions, who has worked 15 years in the CLM space, noted:

“CLM solutions have never found a simple, cost-effective, accurate way to import legacy contracts, handle the nuances and complexities of highly negotiated contracts, or effectively (and elegantly) manage contracts using third-party paper. All three of which leave a tremendous amount of revenue and risk on the table if left unaddressed.”

To do those things and provide value, a new and more powerful approach is needed. One that gives users a more comprehensive view of important customer data, and, helps them to make the best use of it, quickly and easily.

Even in Business, Creativity Leads to Value

Psychologists who study the dynamics of creativity tell us that if you want to generate a brilliant new insight or idea, you have to put some time into it—do the research and collect the data—but then follow it up with some time to incubate. For me the challenge is always to not get too caught up in analysis that you forget to take a simple approach.

After six months at Pramata, I have learned that big businesses have the same problem when they’re searching for new ways to drive revenue and productivity. They know intuitively that enterprise data, especially contract data, is an important part of generating new revenue. But the longer they look at the tangle of information flows among sales, finance and compliance operations, the harder it is to solve the problems that are at all helpful to their bottom lines. The best solutions often seem simple, intuitive, almost obvious, once you’ve achieved that “aha!” moment. But it’s getting there that seems to stifle people.

After working with big business and seeing them spend time and money to fix their enterprise data challenges, and then being here at Pramata who has already helped some of the biggest enterprises on earth—it seems straightforward and obvious that if and enterprise’s contract information is out-of-date (which it often is), companies need a way to consistently refresh it. If it’s fragmented (which it often is), they need a way to consolidate it. And if they can do those two things, easier said than done, they can enjoy great value from their commercial relationships.

{ }