Contract analytics entails much more than converting original data into figures and charts. It’s much more than just using typical reporting systems (like Excel), which have limitations regarding the strength of findings and insights. Contract analytics takes things a step higher; it’s the promise of advanced analytics, including visualization and deep search into massive amounts of data.
It highlights important provisions or data sets inside an agreement to make better-educated management decisions as an organization.
Why Contract Analysis?
Several companies employ contract analytics to achieve outstanding outcomes in a range of areas, from data extraction and procurement to financial services, compliance, and risk analysis. Implementing contract analytics tools offers considerable time and cost savings.
91% of Fortune 1000 businesses use contract analytics for risk assessment, sourcing, and contract management, according to an authoritative legal industry report on the present state of Artificial Intelligence (AI) in contract analysis and data extraction.
Due to the growing relevance of data privacy and protection, 55% of respondents are employing contract AI under GDPR and regulatory demands.
Advantages of Contract Analysis
A few advantages of incorporating contract analytics into your comprehensive data and business strategies are described below:
Increase Profitability by Gaining Important Insight into Business Performance
Contract analytics provides insight into numerous elements of your contracts that you may have previously missed. Cycle periods, variances, risks, purchasing, and overall business indicators, for example, can all be studied comprehensively.
Furthermore, a range of statistical categories allows dashboards to be configured to drill directly down into the critical data without wasting more time combing through irrelevant data.
Get 360º Insights Through OCR and Deep Learning
Contract analytics identifies and analyses sections and phrases that are written uniquely but share the common characteristics. Furthermore, the system compares and analyses regular and authorized clauses with those that have been rephrased, adding an effective layer of anomaly detection.
Large volumes of data may be extracted using a mixture of OCR and deep learning algorithms to extract contractual terms, sections, and conditions, providing a 360º perspective of the whole spectrum of agreements.
Furthermore, information and data visualization capacities allow users to drill down into discrete data sets using drag-and-drop functionality. It allows them to create adaptive dashboards, mashups, heat maps, and visualizations across multiple data aspects for quick and very well-informed decision-making.
For Each Business Case, Add Intelligence and Customize Your Reports
Contract analytics incorporates insight into customized reports, which only provide the most pertinent data. As the person utilizing the dashboard has a complete choice over what corporate information or analytics they wish to view, this removes extraneous and unwanted data from the final, aesthetically displayed report. In a better way, you get the benefit of personalization.
Contract analytics aims to give the company a comprehensive analysis of both previous and contemporary data to make management decisions that increase performance and revenues. This leads to predictive modeling and forecasting, which is the next step in the contract analytics process.
Many firms perform the majority of this analysis manually. Still, with contract analytics, they can go deeper, use analytical rather than heuristic approaches, and do it significantly cheaper.