In the last two issues in this series, we explored contract lifecycle management challenges and how to choose the right solution for your organization. In this blog post, we will discuss how to calculate savings metrics for a solution and highlight a company that has won multiple awards for their contract lifecycle management transformation.
ROI for Contract Lifecycle Management Solutions
Contract lifecycle management solutions drive efficiencies and savings in many areas of the business – so much so that experts say the right solution will compress time to revenue, mitigate risks by having fewer contractual exceptions and increase customer satisfaction.
However, the question on everyone’s mind is this: What’s the return on investment?
To accurately assess the potential for ROI, we developed the Onit Savings Calculator for contract lifecycle management. The calculator factors in time spent on contracts, missed renewals, obligation management needs, sales cycles and realization, rogue spending and expanding spend under contract.
For example, consider a company with more than $850 million a year in legal spend. The calculator determined that the company could save almost $6 million in the first year after deployment and close to $12 million by the third year of use.
Overall, we find that companies have an average cost savings of 9% and a 20% reduction in hours spent on contract review with a contract lifecycle management solution.
The numbers are generally the biggest persuader in whether or not your organization should invest in a contract lifecycle management solution. The savings calculator can help you build the business case and determine which cost-saving or revenue-generating projects to prioritize.
Our industry experts will help you pinpoint your ROI. Visit here to request your evaluation.
An Award-Winning Success Story
Pearson, a global learning company and an Onit customer, created a new way of delivering legal services. This initiative so transformed the company’s contract processes that it landed them multiple recognitions including:
- 2019 Process Improvement Award from the Legal Procurement Awards
- 2020 Association of Corporate Counsel (ACC) Value Champion Award
- Shortlisted for the Legal Innovation Awards 2020in the category of “Future of Legal Services Innovation – In-House Legal Operations.” (Winners will be announced on October 2, 2020)
Pearson, along with Onit partner Morae Global Corporation, developed, implemented and operated an innovative, highly efficient Transaction Service Center as an extension of Pearson’s legal team in support of the company’s businesses worldwide. This included the creation of playbooks, templates, workflows and standardized processes from intake on through drafting, redlining, negotiating, execution and post-execution support, as well as leading training and change management processes.
Morae partnered with Onit to deploy the Onit Apptitude platform that included a web-based “legal front door” for incoming service requests and a contract lifecycle management system for end-to-end processing of contracts. With Onit’s technology, Pearson gained a platform to drive automation, greater standardization, ease of access to information and increased process transparency.
The result: Pearson launched an innovative shared service center that supported commercial transactions worldwide for more than 10,000 users. Its ROI included a 35% cost reduction and 30% improved contract turnaround time.
Bob Mignanelli, senior vice president, chief operating officer, legal, and associate general counsel for technology, strategy and operations for Pearson plc, discusses the project in this on-demand webinar.
We have information to help you through every stage of considering a contract lifecycle management solution.
To start, visit the previous two blog posts in this series on contract lifecycle management:
- Five Signs Your Company Needs a New Way to Manage Contracts
- How to Select a Contract Lifecycle Management Solution
Next, download our white paper that outlines what to look for in a solution:
Hear what other customers have achieved with Onit contract lifecycle management solutions:
Finally, contact us to: