Data analytics

Intelligent Contract Management

Data buried in your contracts is meaningless if it's not put to use.

Intelligent contract optimization through data analytics empowers businesses to make more informed decisions on key areas like supplier performance, cost recovery and overall profits.

Intelligent decisions require intelligent information. Analytics is the source of this information.

Business analytics refer to the skills, technologies and practices for continuous exploration and investigation of past business performance to gain insight and drive business planning. Business analytics focus on developing new insights and understanding of business performance—based on data and statistical methods.

- Beller, Michael J., and Alan Barnett (2009)

Analytics

What’s all the fuss about?

Let’s be honest: businesses overlook their contracts. The truth is, they are a key source of business intelligence with a strong impact on a company’s bottom line.

With analytics, organizations get insights across the supply chain: enhancing their knowledge of suppliers and customers, resulting in informed, intelligent business decisions.

Additionally, firms that successfully integrate analytics into their contracts can optimize their inventories, customize buying options for their customers and support innovation in their supply chains.1

QUESTION 1

TEST YOUR KNOWLEDGE

How much additional net income can you secure if you make data in your contracts 10% more accessible?


Oops!

According to Forbes, a 10% increase in data accessibility results in more than $65 million additional net income for a Fortune 1000 company.

More on this in our blog, Why Data Matters

Correct!

According to Forbes, for a typical Fortune 1000 company, just a 10% increase in data accessibility will result in more than $65 million additional net income.

More on this in our blog, Why Data Matters

Who benefits from contract optimization and data analytics?

The short answer: everyone.

Analytics help stakeholders within organizations to unravel large data sets from different sources and variables to improve performance. Managing suppliers is easier if you have access to data that shows their performance according to specific areas, like for example conformance reports, point of sale analytics, customer complaints and deliveries.

Ultimately, analytics support organizations to design better strategies to manage their contracts.

QUESTION 2

TEST YOUR KNOWLEDGE

What percentage of organizations use data in their contracts to improve performance?

Oops!

Only 19% of attendees of a recent webinar, 'Moneyball' Meets Contracts, said they use analytics in their contracts.

Watch the webinar

Correct!

A straw poll from the Exigent webinar, 'Moneyball' Meets Contracts, revealed only 19% of attendees use analytics.

Watch the webinar


Big data, big achievements

Using data analytics, organizations can:

build stronger relationships with customers, suppliers, strategic partners and investors

identify trends and opportunities for performance improvement, cost recovery, savings and loss mitigation

make intelligent procurement decisions: from choice of payment to payment terms with existing customers

improve contract drafting to take advantage of cost recovery opportunities

QUESTION 3

TEST YOUR KNOWLEDGE

What is the cost of poor contract management to an organization's bottom line?

Oops!

An average of 9.2% can be written off your bottom-line due to poor contract management—can you afford not to understand your contracts better?

More on this topic in our white paper,
Building your contract strategy for bottom-line benefit

Correct!

An average of 9.2% can be written off your bottom-line due to poor contract management—surprised?

More on this topic in our white paper,
Building your contract strategy for bottom-line benefit


The future of contract management depends on data

Advanced data analytics offer major opportunities to businesses as a whole.

To capitalize on future technological advancements while mitigating the risks of a changing world, the c-suite and other stakeholders within the organization will need a new set of skills.

For example, the development of artificial intelligence (AI) and 'predictive' analytics will automate real-time data: businesses will make decisions on the spot based on prior experience, eliminating guesswork and reducing costs.

Analytics will give firms unprecedented access to valuable data about both their suppliers' businesses and their customers' priorities. Future teams will begin to integrate the supply chains of both their suppliers and customers.

- EY (2016)

QUESTION 4

TEST YOUR KNOWLEDGE

The amount of data we produce is doubling every two years, but how much of this data gets analyzed?

Oops!

Research company IDC discovered only 0.5% of data is ever analyzed. For the legal profession, it is arguably even less than that.

Read more about the impact of big data in the legal industry in our blog post, Debunking the Data Myths part 1.

Correct!

According to research company IDC, only 0.5% of data is ever analyzed. For the legal profession, it is arguably even less than that.

Read more about the impact of big data in the legal industry in our blog post, Debunking the Data Myths part 1.


Baseball and contract analytics?

What’s the link?

If you're a sports fan, you might have heard of the film 'Moneyball': the story of how a not-so-worthy US baseball team applied sabermetrics to win the Major League Baseball World Series.

What's the connection with contract optimization? Find out in our white paper, 'Moneyball' Meets Contracts. The paper expands on some of the ideas mentioned in this infographic and is essential for anyone looking to optimize their contracts with analytics.

Collecting data is only half the job—having true, actionable insight into the data you’ve collected allows that data to work for your business.

We believe your contracts can take you to a better place, commercially, financially and legally.

Exigent's Contract Optimization and Data Analytics is an advisory service that combines contract management with artificial intelligence, finance, audit, data analytics and commercial awareness to help the c-suite to make smarter business decisions.

Click here to contact us for free consultation