Contract Analytics

What is Contract Analytics?

Contract analytics is the process of reviewing an organization’s contracts to identify and extract data from them leading to better risk management. With Contract Analytics, transforming your legal documents which also includes legacy agreements and hard copies into structured data and insight drives value, reduces risk, and improves the efficiency of legal operation teams.

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Research consistently shows that commercial and contracting issues lie at the heart of 70-75% of failing projects, resulting in an average of 9.2% of annual revenue leakage.

IACCM

What does Contract Analytics Technology include?

In simpler terms, contract analytics technology is a software that leverages AI and Machine Learning capabilities enabling companies to analyze contracts more accurately, and effectively.

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What are the benefits of Contract Analytics?

 

Contract analytics improves the business performance of organizations by providing visibility of risks, obligations, and opportunities in their contracts. It gives a clearer picture of contract hotspots. It is the responsibility of In-house Counsels and Legal Operations to manage and quantify risk and compliance.

 

Contract Analytics allows In-house Counsels and legal Operations to oversee hundreds of thousands of contracts and agreements in your company to ensure they aren’t hiding any obligations, service level agreement metrics, or other liabilities that could expose the company to risk. By providing quick and easy access to your contractual provisions data, it allows you to respond to an audit request or an organizational change quickly and efficiently.

1. RISK MANAGEMENT

Scans the CLM repository for risk-prone clauses, text, or data. It can identify contracts with suppliers in high-risk zones-due to changing regulatory compliances in an uncertain economy. It ensures that the contracts enforce and operate on the latest terms, conditions, controls, and policies.

 

2. FINANCIAL MANAGEMENT

Assists in reducing legal fees, eliminating renewals of unwanted services, and identifying untapped revenue opportunities. It also provides complete spend visibility, a high-value benefit that ensures cost-effective contract management.

 

3. IMPROVES BUSINESS PERFORMANCE

Enhances the business performance by providing visibility of risks, obligations, and opportunities in the contracts. It’s advanced AI technologies help in identifying trends and opportunities for performance improvement, cost recovery, savings, and loss mitigation.

 

4. PRODUCTIVITY/OPERATIONAL EFFECTIVENESS

Tracks important data such as dates, and offers automated reminders and tools that let users schedule notifications as needed. By eliminating manual processes and centralizing the document repository it allows greater control and improves efficiency.

What does Ultria’s Contract Analytics offer?

Ultria Orbit is a free-standing solution that can bolt onto any existing CLM or Document Management System. The Ultria AI Orbit algorithm harnesses the capabilities of AI technologies like NLP, Machine Learning, Semantic, and Text Analysis to recognize patterns & extracts key variables like clauses, dates, parties, etc. across hundreds of thousands of contracts. It maps and understands the intent of the terms and clauses to analyze risks in contracts, providing better visibility into the semantic structure of each contract.

Why should you adopt Ultria Orbit for Contract Analytics?

 Ultria Orbit for Contract Analytics can extract meta-data elements with its advanced search capabilities and provides proactive insights and intuitive visualization on all performance KPIs with a customizable dashboard.

  • Provides a deeper understanding of end-to-end contract lifecycle management across enterprise contracts from requests to post-award analytics.
  • Contains advanced training algorithms built in-house as against using generic 3rd party AI tools – specially designed keeping contracts in mind.
  • Supports every department in your organization – equally adept at buy-side as well as sell-side contracts.
  • Tested and proven ROI, driven by the focus for minimal change management during implementation.
  • Guarantees seamless integration across multiple applications, providing unmatched flexibility and data visibility, and can also be used as a free-standing solution.
  • An early adopter of bleeding-edge technologies that are specifically tweaked to meet the needs of the corporate legal function.
  • How does Ultria’s Contract Analytics mitigate risk?

    Ultria’s Orbit AI is a powerful free-standing solution that ensures all mandatory and new regulatory compliances are covered by identifying compliance gaps, modifying existing contracts, and updating stakeholders. It streamlines clause-level tracking for environmental, state, federal, and international regulations. Ultria’s Orbit AI provides real-time monitoring of contracts to analyze risks associated with financial factors like payments, currency exchange rates, and price variations and thus guarantees better returns when it comes to identifying and mitigating risk. Its Explorer and Protector personas provide an edge.

    Orbit Explorer and Protector Capabilities assist in –

    • Converts volumes of contracts from different formats simultaneously into searchable documents using OCR/NLP
    • Classifiesmetadata into categories and performs​ full-text indexing to make contract data portable for decision making
    • Extracts standard clauses and metadata elements like effective dates, counterparty names
    • Normalizes extracted data associated with individual contracts if required
    • Recognizes patterns and extracts key variables like clauses, dates, parties based on metadata elements
    • Speeds the review process by sending individual or bulk contracts for review to the appropriate reviewers
    • Analyzes risk in contracts by identifying sub-optimal terms, highlighting missing clauses and deviations between standard and outside contracts
    • Identifies compliance gaps, modifies existing contracts and updates the stakeholders
    • Maps trends in key metadata elements like effective dates, average contract terms, payment terms, liabilities caps, etc.
    • Alarms and notifies stakeholders to monitor key contract performance data
    • Provides insights on performance KPIs, milestones, and obligations that can be transported to visualization tools

    How does Ultria Orbit’s contract analytics support your business?

    •  Drives better business outcomes by providing improved visibility and cross-team collaborations.
    • Reduces organizational risks by analyzing and flagging missing contract elements and outliers
    • Identifies cost savings by analyzing third-party and legacy contracts to get insights into purchase commitments, milestones, and obligations.
    • Improves compliance and regulatory mandates by monitoring and responding to regulatory audit requests.
    • See How Ultria’s Contract Analytics Optimizes Operations And Drives Continuous Improvement

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