Negotiating and executing contracts are standard practice for high technology companies. Whether it’s a contract to govern software licenses, professional implementation services, or hardware and infrastructure assets, the sale is not officially completed until the contract has been approved internally and signed by the customer.
In addition, many companies face revenue recognition challenges in order to comply with FASB accounting practices for claiming revenue based upon the terms and conditions that govern how the product can be used. These contractual negotiations often involve stakeholders from Sales, Legal, Finance and Product Management for the most complex contracts that typically drive the largest percentage of quarterly revenue.
CLM Matrix pioneered our Matrix Software solutions to standardize, streamline and automate the collaborative conversations and ad-hoc approvals that accompany these transactional negotiations. Sales executives have the ability to interact electronically to approve aspects of the deal that are required to satisfy the customer’s request while not exposing the company to potential legal and financial risk. In addition, the solution allows financial accountants to have proactive visibility into the sales pipeline to create a more accurate forecast for the revenue that will be recorded in that particular quarterly business cycle.
Legal and contract administrators leverage the software clause library to dynamically create contracts based upon pre-defined business rules and requested terms that fall within defined business practices and delegations of authority.
Collectively, hardware and software manufacturers see accelerated revenue velocity and improved DSO via the process efficiencies and cycle time improvements.
Download our Industry Profile document here: CLM for High Tech
For more information on how CLM Matrix can help you achieve similar results, please contact us.