Gain Greater Returns for Your Business When You Invest in a Quality Contract Management Software
During an economic downturn, vendors expect to hear “It’s not within our budget right now,” or “We can’t afford the expense.” Still, some businesses or business executives seem to fall into the serial “It’s not within budget,” at any time category. The mindset that all spending equals expense is dangerous and detrimental to business growth. At what point then does an expense become an investment?
Simple. When the expense starts paying for itself.
An expense is defined as a cost or charge; a cause or occasion of spending; the act of expending. While an investment is defined as putting money to use by purchase or expenditure in order to gain profitable returns, as interest, income, or appreciation in value.
Unfortunately, technology often falls in with business expenses instead of in with investments. Many times new technologies that encourage growth are sat on the back burner because things seem to be moving along fine. It is only when processes are more closely examined that the actual need for the technology is realized.
When considering a contract management software (CMS), the focus should not be solely on the amount of money saved or earned. The traditional definition of return on investment (ROI) as past or potential financial gains is not enough. It’s necessary to look beyond convention to see contract management software’s valued ability to help a business grow. According to a 2011 HIMSS report, ROI has three phases that include enhanced efficiency, enhanced productivity, and performance that you cannot imagine today.
This first phase of ROI, enhanced efficiency, is easily achieved by CMS because of the convenience of automated workflows. Reducing paper usage saves resources and space as well as search time. The chances of lost or misplaced documents greatly decreases along with the chances of missed deadlines, clauses, or other terms. Contracts are effectively created, edited, and amended while securely shared and signed.
The second phase of enhanced productivity is advanced by the cloud. Secure access coupled with routes and notifications streamline the contract lifecycle through fulfillment. Edits and changes are made evident with time stamps and redlining. Approvals by inside and outside approvers are supported by e-signature. Reporting allows you to see today’s progress along with future desires for business growth. Contracts receive quicker approvals and oversights are reduced by systematic monitoring.
Performance beyond what you can imagine is the third phase. The capabilities to complete the contract lifecycle more efficiently and quickly allow time to be spent where it is most valuable. Client needs, expanding work for current clients and gaining new clients become the focus of your attention as you watch contract management software pay for itself.
Contract management software offers several ways to achieve these points and grow your business. The enhanced efficiency and productivity along with its surpassed performance yield an ROI of:
- Improved Customer Relationships
- Streamlined Internal Processes
- Other Qualitative Factors
Indirect returns are often difficult to measure but these aspects are necessary for achieving successful business growth. The value these returns add should be recognized and reported in the complete return on investment.
Why ROI is the King of Wealth Concepts
‘Soft’ ROI Holds Sway in Health IT, 2014
ROI Research in Healthcare: The Value Factor in Returns on Health IT Investments, HIMSS, 2011