Contract migration often stirs up a mix of reactions. Does the thought of transferring all contractual data and documents from an old system (or NO system!) to a new one sound overwhelming? It doesn’t have to be. This blog will explore what contract migration entails, why it’s necessary, and how it functions.
Understanding this process can alleviate many headaches for midsize to large organizations seeking scalable and secure contract management solutions. You may wonder if your current system can handle growing demands and keep your data safe. Contract migration offers a pathway to more robust platforms capable of supporting your organization’s evolving needs. We’ll break down these concepts into straightforward terms and guide you through the mechanisms of effective contract migration, ensuring you grasp every step.
What Is Contract Migration?
Defining Contract Migration
Contract migration is the process of transferring existing contracts and their associated data from one system to another, typically into an advanced Contract Lifecycle Management (CLM) platform. This process involves moving documents from older systems or varied storage solutions such as Google Drive, Dropbox, or simple local shared drives.
Purpose of Contract Migration
The main aims of contract migration is to centralize all business contracts in one secure, accessible location and to set up for the new integrated contract management environment. This centralization helps organizations avoid the risks and inefficiencies of scattered storage systems. By consolidating contracts into a single CLM platform, businesses can ensure better compliance, easier access to documents, and enhanced security.
By understanding contract migration, organizations can better prepare for and execute this vital transition, ensuring their contract management processes are both efficient and up-to-date. This migration not only supports current operational needs but also scales to meet future demands.
Why Contract Migration Is Essential
Contract migration to a modern contract management platform streamlines operations and enhances compliance for businesses of all sizes. This process is vital for adapting to the growing demands of modern contract management.
When deciding what contracts to migrate, it is important to be practical. The process is a serious effort. Migrating all contracts–if you can find them–may be counter-productive. Does including contracts that are 10 years old and no longer, for instance, add value to your management of your business? Not likely. So, reducing the volume of contracts to be migrated helps to accelerate the process and keeps your contract database clean and focused. On the other hand, if you do not migrate your existing live contract base, there will likely be negative consequences.
Centralization of Contracts
Contract migration consolidates all contractual agreements into a single platform. This central repository is the key to the overwhelming success of contract management systems. The contracting process and ongoing contract management become easier to manage, track, and access, ensuring all data and obligations are in one accessible location. The collaborative nature of modern CLM systems helps to ensure transparency and cooperation.
Greater Visibility for Strategic Planning
With all contract data in one system, businesses gain a comprehensive view of their contractual landscape–a great improvement over older methods. This visibility is invaluable for strategic planning and revenue forecasting, enabling decision-makers to assess contract performance, identify trends, and make informed decisions.
Enhanced Compliance
Moving contracts to a centralized system ensures compliance with regulatory and contract requirements. Regulations such as the Sarbanes-Oxley Act and the HIPAA Act require security, access control, audit trails, and appropriate visibility of contracts.
This is particularly crucial for businesses facing audits, or those involved in mergers, acquisitions, or public offerings. A unified system simplifies compliance management by maintaining stringent control over document access and safeguarding sensitive information.
Reduction in Administrative Burden
Automated contract management systems minimize the administrative load on teams. Tools that support contract analysis and automated reporting streamline operations and reduce the need for manual intervention, allowing staff to concentrate on higher-value activities and strategic engagement.
Improved Efficiency
Contract migration reduces the time teams spend managing contract details. Automated tools and centralized systems allow quick access to important contract information like terms, expiration and renewal deadlines, and financial details. This efficiency frees up staff to focus on more strategic tasks rather than administrative duties.
How Contract Migration Operates
1. Identifying Contract Storage Locations
Contract migration begins by pinpointing where contracts currently reside. This includes physical files, shared drives, and existing Contract Lifecycle Management (CLM) systems. The challenge often lies in locating all contracts, especially when they are not centrally stored.
2. Deciding Which Contracts to Migrate
The next step involves a thorough review of all contracts to determine which are still relevant and require migration. Consultations with key business stakeholders help in deciding which contracts and specific data points are essential for the business moving forward.
3. Defining Data Points and Smartfields
Once key contracts are identified, the next stage is to decide on the data points to capture. This depends largely on the types of contracts, such as Master Service Agreements (MSAs), employment contracts, and Non-Disclosure Agreements (NDAs). Setting fields at the template level for both legacy and future contracts is crucial for maintaining consistency. Each type of contract may have a different set of data fields, plus fields common to all contracts (parties, contacts, addresses, key dates, etc.)
4. Mass Uploading Contracts
The physical or digital contracts are then uploaded en masse to the new system. If contracts are in physical form, they must be digitized before upload. Modern CLM platforms often feature mass import capabilities, simplifying this process significantly. Importing documents as PDF files and inserting a text layer into the file using Optical Character Recognition (OCR) enables the CLM to index the documents and allow for full-text search.
5. Tagging Contracts With Data
After uploading, contracts need to be tagged with relevant data. This can be automated using CSV uploads or manually done if data was not previously tracked. Many CLM platforms provide support during this phase, including tagging services, to ensure data is accurately reflected in the new system. If the contract is written on your paper, the data is already likely in the CLM; if it is on the contracting party’s paper, data may exist if a contract request portal was used to start the contracting process. Artificial Intelligence (AI) tools can be used to extract data from contracts with varying levels of success.
6. Building Custom Queries, Reports and Dashboards
The final step in contract migration is to create customized queries, reports and dashboards. The CLM may already have an extensive set of queries or reports that you can use. In some CLM systems, you can publish or share queries and reports with other users. Dashboards can be customized by adding data or graphic widgets from a widget library.
These tools offer valuable insights into the contract portfolio and facilitate ongoing management.
Automation features in the CLM system can set reminders and track various stages of the contract lifecycle, enhancing visibility and control over the entire process.
Why Choose Our Software for Contract Migration?
At Great Minds Software, our Contract Advantage™ product suite is engineered to facilitate seamless contract migration, ensuring that your transition to a new system is both efficient and comprehensive.
Streamlined Document Management
Contract Advantage™ offers a robust document management system that enables you to get the most out of your migrated contracts. This feature allows you to organize, store, and retrieve all of your contract-related documents from one place.
Automated Workflow Solutions
Our Contract Advantage™ suite includes electronic workflow capabilities that automate many of the steps involved in managing your migrated contracts. From routing documents for approval to automating reminders for contract renewals, this feature ensures that each phase of the contract lifecycle is managed with precision and minimal manual intervention.
Customization at Your Fingertips
Understanding that no two businesses operate alike, Contract Advantage™ provides customizable fields and displays. This adaptability allows your organization to tailor the system to match your specific contractual needs and preferences, making the migration process more aligned with your operational requirements. In fact, all fields in Contract Advantage can be renamed so that the terminology aligns with your business.
Advanced Reporting and Tracking
With extensive searching, reporting, and user-defined reporting features, Contract Advantage™ enables you to generate insightful reports and keep track of all contract activities. These capabilities are essential during and after the contract migration process to ensure all data is correctly transferred and to maintain ongoing oversight of contract obligations and opportunities.
Comprehensive Contract Creation and Management
From generating new contracts with our document generation feature to managing financial and asset details linked to agreements, Contract Advantage™ supports every aspect of contract management. The clause library and contract templates further enhance efficiency by simplifying the creation of new contracts post-migration.
Why Trust Our Software for Contract Migration?
Unmatched Expertise
Since 1989, Great Minds Software has led over 600 implementations of contract management solutions across diverse industries. Our seasoned team understands the complexities and nuances of contract migration, ensuring a seamless transition for our clients.
Firm Commitment
Our mission is to enhance our client’s operational capabilities. We continually innovate and improve our processes, tailoring solutions to meet the unique challenges of each sector we serve. Our client-centric approach ensures we are responsive to your needs and always looking for ways to help you manage complex workloads more effectively.
Goal-Oriented Partnership
We believe in growing with our clients and our people. By fostering a positive, growth-oriented environment, we ensure our team is motivated and equipped to support your contract migration needs. Our commitment to expanding contract management excellence translates into tools that directly benefit your organization.
Start your contract migration journey with a trusted partner. Contact us today to see how we can assist in transforming your contract management processes.
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