AI-Enabled Contract Life-Cycle Management Software Drives Significant Performance Improvements Over Traditional Methods
The Hackett Group (NASDAQ: HCKT) has released its first Digital World Class Matrix™ for contract life-cycle management (CLM) software. The report highlights the transformative potential of AI-enabled CLM solutions for large enterprises. Key findings include:
- 45% operational efficiency gains in negotiation and contract creation
- 35% reduction in contract cycle times
- 5x decrease in noncompliance-related losses
- 63% improvement in contracting efficiency and automation
- 89% customer satisfaction with CLM solutions
The CLM market is projected to grow by 11% in 2024, with 28% of companies planning to pilot CLM technology. The report analyzes 21 AI-enabled providers across 18 criteria, offering insights for both buyers and vendors in the rapidly evolving CLM landscape.
Il Hackett Group (NASDAQ: HCKT) ha pubblicato il suo primo Digital World Class Matrix™ per il software di gestione del ciclo di vita dei contratti (CLM). Il rapporto mette in evidenza il potenziale trasformativo delle soluzioni CLM abilitate dall'IA per le grandi imprese. I risultati chiave includono:
- 45% di guadagni in efficienza operativa nella negoziazione e creazione di contratti
- 35% di riduzione dei tempi del ciclo di contratto
- 5x diminuzione delle perdite dovute a non conformità
- 63% di miglioramento nell'efficienza e automazione dei contratti
- 89% di soddisfazione dei clienti con le soluzioni CLM
Si prevede che il mercato del CLM crescerà dell'11% nel 2024, con il 28% delle aziende che pianificano di testare la tecnologia CLM. Il rapporto analizza 21 fornitori abilitati all'IA su 18 criteri, offrendo approfondimenti sia per gli acquirenti che per i fornitori nel paesaggio in rapida evoluzione del CLM.
El Hackett Group (NASDAQ: HCKT) ha lanzado su primer Digital World Class Matrix™ para software de gestión del ciclo de vida de contratos (CLM). El informe destaca el potencial transformador de las soluciones CLM habilitadas por IA para las grandes empresas. Los hallazgos clave incluyen:
- 45% de ganancias en eficiencia operativa en negociación y creación de contratos
- 35% de reducción en los tiempos del ciclo del contrato
- 5x disminución en las pérdidas relacionadas con el incumplimiento
- 63% de mejora en eficiencia y automatización de contratos
- 89% de satisfacción del cliente con las soluciones CLM
Se proyecta que el mercado de CLM crecerá un 11% en 2024, con un 28% de las empresas planeando pilotear tecnología CLM. El informe analiza a 21 proveedores habilitados por IA en 18 criterios, ofreciendo información tanto para compradores como para proveedores en el paisaje de CLM en rápida evolución.
해켓 그룹 (NASDAQ: HCKT)이 계약 생애 주기 관리 (CLM) 소프트웨어에 대한 첫 번째 디지털 월드 클래스 매트릭스™를 발표했습니다. 이 보고서는 대기업을 위한 AI 기반 CLM 솔루션의 변혁적인 잠재력을 강조합니다. 주요 발견 사항은 다음과 같습니다:
- 협상 및 계약 작성에서 45% 운영 효율성 향상
- 계약 주기 시간 35% 단축
- 비준수 관련 손실 5배 감소
- 계약 효율성 및 자동화 63% 향상
- CLM 솔루션에 대한 고객 만족도 89%
CLM 시장은 2024년에 11% 성장할 것으로 예상되며, 28%의 기업이 CLM 기술을 시험 운영할 계획입니다. 이 보고서는 18개 기준에 따라 AI가 지원하는 21개의 공급업체를 분석하여 급변하는 CLM 환경에서 구매자와 공급자 모두를 위한 통찰력을 제공합니다.
Le Hackett Group (NASDAQ: HCKT) a publié sa première matrice numérique de classe mondiale™ pour le logiciel de gestion du cycle de vie des contrats (CLM). Le rapport met en lumière le potentiel transformateur des solutions CLM activées par l'IA pour les grandes entreprises. Les principales conclusions comprennent :
- 45% de gains en efficacité opérationnelle lors de la négociation et de la création de contrats
- 35% de réduction des délais des contrats
- Diminution de 5x des pertes liées à la non-conformité
- Amélioration de 63% de l'efficacité et de l'automatisation des contrats
- 89% de satisfaction client avec les solutions CLM
Le marché du CLM devrait croître de 11 % en 2024, avec 28 % des entreprises prévoyant de tester la technologie CLM. Le rapport analyse 21 fournisseurs activés par l'IA selon 18 critères, offrant des éclairages tant pour les acheteurs que pour les fournisseurs dans le paysage en rapide évolution du CLM.
Die Hackett Group (NASDAQ: HCKT) hat ihr erstes Digital World Class Matrix™ für Software zur Verwaltung des Lebenszyklus von Verträgen (CLM) veröffentlicht. Der Bericht hebt das transformierende Potenzial von KI-gestützten CLM-Lösungen für große Unternehmen hervor. Zu den wichtigsten Ergebnissen gehören:
- 45% Effizienzgewinne in der Verhandlung und Vertragserstellung
- 35% Reduktion der Vertragslaufzeiten
- 5-fache Verringerung der verlustbedingten Nichteinhaltung
- 63% Verbesserung bei der Vertragsabwicklung und Automatisierung
- 89% Kundenzufriedenheit mit CLM-Lösungen
Der CLM-Markt wird für 2024 auf ein Wachstum von 11% geschätzt, wobei 28% der Unternehmen planen, CLM-Technologie zu testen. Der Bericht analysiert 21 KI-gestützte Anbieter anhand von 18 Kriterien und bietet Einblicke für Käufer und Anbieter im sich schnell entwickelnden CLM-Markt.
- CLM market projected to grow by 11% in 2024
- 45% operational efficiency gains in negotiation and contract creation process
- 35% reduction in contract cycle times
- 63% improvement in contracting efficiency and automation
- 89% customer satisfaction with CLM solutions
- 81% of contracts successfully managed through CLM systems
- 80% of companies achieved business improvement goals after implementing CLM
- None.
Insights
The Hackett Group's CLM Digital World Class Matrix™ report reveals significant potential for AI-enabled Contract Life-Cycle Management (CLM) solutions. For $5-10 billion organizations, implementing CLM can lead to
The report's findings, based on extensive research and interviews, highlight the transformative potential of AI in procurement processes. Key areas for Gen AI application include spend analytics, category management and CLM. The high customer satisfaction rate (
The integration of AI in CLM solutions marks a significant leap in procurement technology. Advanced features like AI-driven contract creation, risk management and intelligent obligation management are revolutionizing how businesses handle contracts. The
Notably, the emphasis on AI capabilities for enhanced search functionalities and data analysis suggests a shift towards more intelligent, data-driven decision-making in procurement. This aligns with the broader trend of digital transformation in enterprise operations. The potential for AI to assist in contract reviews, automated scoring and predictive analytics represents the next frontier in CLM technology, promising even greater efficiencies and strategic insights for businesses adopting these solutions.
The financial implications of implementing AI-enabled CLM solutions are substantial. For large enterprises in the
With an expected
Potential
CLM spans the life of a contract from initiation through award, compliance, tracking and renewal. Optimizing and aligning CLM with processes like sourcing and risk management is critical to the successful operation of businesses of all sizes. With
The potential value for a
“Contract life-cycle management offers an unparalleled opportunity for organizations to realize significant value through streamlined processes and better compliance,” said Chris Sawchuk, principal and Global Procurement Executive Advisory practice leader at The Hackett Group. “Selecting the right CLM partner can unlock substantial benefits – from reduced cycle times to improved risk management – ultimately strengthening their competitive position.”
The CLM Digital World Class Matrix™ is a comprehensive guide for understanding the evolving aspects of the CLM market, analyzing providers’ differentiated capabilities and the value that organizations can expect. Offering insights for buyers and vendors, the report draws on extensive interviews and 18 criteria to evaluate 21 AI-enabled providers, including S2P suites, CLM specialists, document automation specialists, and legal information solution suites.
The Hackett Group’s 2024 study of procurement executives found that generative artificial intelligence (Gen AI) has the most potential in three key areas: spend analytics, category management and CLM. Leading CLM solution providers differentiate themselves by integrating advanced AI capabilities across their platforms. From AI-driven contract creation, risk management and enhanced search functionalities, to data analysis and intelligent obligation management, these providers are leveraging AI to offer more robust and efficient contract management solutions.
The results from the CLM Digital World Class Matrix™ demonstrate the significant benefits of adopting or upgrading CLM systems:
-
Customer satisfaction:
89% of customers were very satisfied or extremely satisfied with their CLM solution and felt it was worth the investment.
-
Contract management: After implementing CLM solutions,
81% of contracts were successfully managed through the system.
-
Faster contracts: On average, contract completion times improved by
35% , thanks to smart automation, better workflows, and enhanced visibility into contract status, risks, and critical milestones.
-
Business improvements: About
80% of companies achieved their business improvement goals after implementing CLM and redesigning their processes.
-
Efficiency improvement: CLM implementations led to a
63% improvement in contracting efficiency and automation.
“As companies evolve, they quickly move beyond the basic needs of contract standardization, extraction, workflow automation, electronic signature and retrieval,” said Richard Gardner, senior director of Market Intelligence at The Hackett Group. “Companies are seeking and expecting AI-enabled capabilities such as contract interaction, assisted contract reviews, automated scoring of contracts, negotiation intelligence, obligation management and predictive analytics.”
By leveraging this comprehensive analysis and a deep understanding of stakeholders and requirements, procurement and legal professionals can make informed decisions to optimize operations, deliver competitive advantages, and fully realize the potential of next-generation CLM technologies. Service providers, in turn, can gain valuable insights into market trends and client needs, enabling them to enhance their offerings and strengthen their market position.
The CLM Digital World Class Matrix™ should be read in the context of the entire report. The Hackett Group’s full 78-page report is available to The Hackett Group’s Executive Advisory members on Hackett Connect™. A complimentary summary is also available for immediate download. Inquiries regarding purchase of the full research report can be made by visiting our Market Intelligence webpage.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ – our AI assessment platform – our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including
For more information on The Hackett Group, visit: https://www.thehackettgroup.com/ or email: media@thehackettgroup.com.
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The Hackett Group, quadrant logo, Quantum Leap and Digital World Class are the registered marks of The Hackett Group.
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This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its digital transformation, artificial intelligence, and other consulting services, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.
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Source: The Hackett Group, Inc.
FAQ
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