Do you belong to an industry which is heavily reliant on contracts?
In that case, are you finding it difficult to manage your contracts efficiently?
Indeed, contract management is highly critical and challenging.
Let us see the pain points
- Managing costs
- Managing time
- Managing manpower
- Lack of visibility
- Unstructured volumes of legal documents
- Manual processing
- Executing process
- Renewal process
- Expired Archived data
“Contracts govern over 80% of every transaction and value”
Whether it is a contract for a purchase order, mergers or acquisition, sales or service, an invoice, loan, insurance policy, rental lease agreement, mortgage, appointment letter, real-estate transaction, warranty or any other type of legal agreement, several organizations are finding it difficult to structure and organize contracts.
Expanding complexity in business and markets is driving a need for enhanced competency along with efficiently streamlined processes to support successful contracts.
Blockchain and Smart Contract are the latest fad in technology that has the capacity to address this niche and deliver a new way to manage contracts efficiently.
Step into a new Era of fully automated contracting lifecycle
Smart Contracts operates digitally. It consists of a set of codes that are bounded by contractual clauses and functional outcomes.
Smart Contracts can give you a generational shift to amend your gear and get going smoothly with the automation of the entire process in a secured and immutable way. Track, update, manage and secure all your contracts with Smart Contracts. Deployed on a Blockchain, it ensures that every transaction is handled and executed in a safe, secured and immutable way without any manipulation, delay and without any involvement of intermediaries.
Contract management becomes easier with cryptographically created and self-executing contracts. From quote to coin, choose to go the smart way… use smart contract.
10 Ways Smart Contracts Simplifies Your Business
- Cryptographically Secured
- Shared ledger
- No central authority
- Cannot flop
- Reduce legal spend
Traditional Contract Vs Smart Contract
Smart Contract works as a decentralized system which can self-execute and self-enforce with set algorithms. Offer acceptance is error free.
How does a smart contract work?
Applications of Smart Contract
A number of new projects have come up in the recent days that either uses the existing blockchain architecture or totally new blockchain as infrastructure to create efficient contract management lifecycles. Smart contracts can be applied for dissimilar purposes in different ways with varying goals.
- Financial Institutions
- Technology, media and telecom
- Energy and resource
- Public sector
- Real Estate
Innovative technologies along with the process upgrades have been driving the competition in the market creating the top slots for those who react and change quickly. Businesses are left with no choice but to re-evaluate their existing processes and performance with a strong emphasis on escalating efficiency, transparency and customer experience. Managing every contract towards a transaction can be efficiently managed with Smart Contracts.
Use Case – Vehicle Insurance
Have a look at the below image to understand the current state of normal contract and the future make-over state with Smart Contract.
Insurance claims facilitated by smart contracts offer automated, instantaneous processing thereby reducing time and cost to a greater extent. Moreover, verification, payments are also carried out instantly by assessing and validating when a certain condition is met and cleared.
Challenges in the current situation
- Multiple forms and reports and multiple data sources account for errors and waste of time, cost and resources.
- Possibilities of duplication due to manual verification
With Smart Contract
- Data of each policyholder is stored and managed via Blockchain Smart Contracts
- Accessing and verifying is easier
- Every transaction is traceable
- Every transaction is self-executable
- Time and cost saved for verifying and executing each policy
- Duplication free
Conclusion – Watch out
Businesses across the globe will continue to use contracts to either carry on their existing relationship or to add new connections with their customers, business partners, dealers, and suppliers, agencies, employees etc.
Blockchain and Smart Contract technologies can slowly take over as mainstream solutions, with well-demonstrated benefits irrespective of the contract size and volume.
To successfully leverage these innovative solutions and derive value from them, businesses need to move to Blockchain to digitally and smartly manage all contracts.
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Author: Meenakshi Krishnan