Introduction
Traditional contracts face numerous challenges throughout their lifecycle. However, Zoho Contracts is a contract lifecycle management software that offers comprehensive solutions to streamline and optimise this process. The table below highlights the problems commonly faced in traditional contracts and the corresponding solutions offered by Zoho Contracts.
| Stages of Contract Lifecycle | Traditional Contracts (Problems) | Zoho Contracts (Solutions) |
| Authoring | In traditional contracts, a contract is drafted with pen and paper or created in a separate word processor. | In Zoho Contracts, Pre-built templates are available and Zoho Writer has all the features of a standard word processor. |
| Negotiation | During the negotiation stage, the drafted contract is sent via email to the counterparty for which separate email application is used. This process involves a back-and-forth exchange of numerous emails over multiple rounds, making it challenging to view and compare the original draft with the changes made throughout each round of negotiation. | With Zoho Contracts the draft contract is sent to the counterparty in a single click, using built in tools that simplify the back-and-forth negotiation process. A unique feature allows users to view and compare the contract through various rounds of negotiation, making it easy to track changes across multiple versions in one place |
| Signature | In Traditional contracts, a separate platform is used for e-signing, or the contract is printed and sent via post or courier for the counterparty to sign it physically. | In Zoho Contracts, the signing process is simplified with the integration of Zoho Sign, allowing contracts to be E-signed swiftly and seamlessly within the platform |
| Record of important dates | In case of Traditional Contracts, a separate spreadsheet application is used to record important dates such as renewal and expiration dates of contracts. | In Zoho Contracts, all important dates such as renewal and expiration of contracts are automatically recorded with the assistance of real time tools, which eliminates the need for a separate spreadsheet application |
| Document management | In Traditional Contract management, contracts can easily be lost or misplaced due to various factors such as time, physical handling and environmental circumstances. This risk increases with the reliance on paper documents which are susceptible to damage, misfiling or loss during transit leading to delays in execution of contracts and Legal disputes | Zoho Contracts has a unique feature of a single central repository where all the contracts can be stored, eliminating every possibility of missing or losing a contract due to any factors which pose a threat to the documents |
| Calendar | In Traditional Contracts, a separate calendar application is used to manage and remind users of renewal and expiration dates which requires manual setup of reminders. This often leads to missing the deadlines. | With the help of the inbuilt calendar important dates such as renewal, expiration and other deadlines are automatically tracked and sends timely reminders as the dates approach. |
| Reports and Analytics | There are no wide range of reports based on different aspects of contract management resulting in lack of clarity regarding the status of business contracts. | Zoho Contracts provides wide range of reports based on various aspectsof contract such as performance, obligations and milestone, as well as general, user and counterparty reports. |
| Post Execution Management | Post execution management such as amendments, renewals, extensions and terminations are not efficiently managed in Traditional contracts. For an instance, a termination letter is typed and sent through post leading to various issues such as misplacement, inaccurate tracking, delayed delivery and it is a time-consuming process. | Zoho Contracts has a unique feature of letter templates which facilitates the post execution management of contracts. Once the draft is completed the relevant letter is automatically generated and sent to the counterparty, simplifying the whole process. |
| Tracking Facility | Once the contract is sent to the counterparties either via email or post, there is no proper tracking facility to whether they have seen the mail or the physical document. | In Zoho Contracts we can track every small activity with exact timings. For an instance if the contract is sent for an approval, we can track whether the mail has been viewed/pending/ approved/rejected. |
| Dashboard | In case of traditional contracts there is no visual representation as a dashboard since the entire lifecycle of a contract is managed manually. | Dashboard of the Zoho Contracts is an overview of the entire business and it provides key information about the number of contracts in each stage of contract lifecycle, number of contracts and obligations pending. It also displays a calendar and visual representation of all other contractual activities and financial impact of contracts. |
| Risk of Human errors | In Traditional Contracts, from authoring till post execution of contracts, the risk of human errorsis high due to the entirely manual process and significant human intervention. | Zoho Contracts mitigate the risk of human errors to a large extent through automated processes and templates reducing the need for manual intervention and ensuring greater accuracy in contract management. |
| Data Protection | Unauthorised access or mishandling of contracts sent through post for negotiation or signing and an unauthorised access to sensitive personal information of the parties are a serious concern in traditional contract management. These issues arise due to poor compliance with data protection laws and regulations. | Data Protection is prioritised through high compliance with GDPR (General Data Protection Regulation), Digital Personal Data Protection Act,2023 and Information Technology Act,2000 and IT Rules,2021. |
| Cross Functional Integration | Throughout the lifecycle of a contract several platforms are used from authoring till execution and post execution. Dependence over several platforms results in various challenges like lack of visibility and administrative burden. | The Cross functional integration of Zoho CRM, Zoho Sign, Leegality and ChatGPT within Zoho Contracts simplifies the contract management process. In addition to this, features like Zoho Writer, calendar, document management, Contract templates are built in to further streamline workflows and improve the overall efficiency. |
| Accessibility to Critical Information | An extensive manual process of traditional contract management results in inability to access critical information. | Easy access to any critical information with the help of search and filter options which enables instant visibility and accessibility. |
| Time Consumption | Since the complete lifecycle of a contract is managed through several distinct platforms, each and every stage of contract is time consuming resulting in a slow process. | Zoho contracts has unique features of clause library and pre built templates which facilitates swift contract authoring. The other stages of Contract such as Negotiation, Approval, Signing and Post execution management are completed quickly emerging as a time saving platform. |
| Operational Costs | Traditional Contracts often incur high operational costs due to various expenses such as postal services, printing costs, in- person meetings that incurs travel costs, and stationery. | Zoho Contracts reduces operational costs by digitising the entire contract lifecycle eliminating the need for physical printing, in person meetings and other miscellaneous expenses. |
Conclusion
From the above tabulation it is evident that traditional contracts are often inefficient and prone to errors, While Zoho Contracts represents the future of contract management. As businesses are shifting towards digital solutions, Zoho Contracts will be essential for effective management.
