Question

What are the implications of the new information technologies (ERP, e-procurement, e-commerce, Online transactions, etc) on contract management?

Answer 1

Contract management involves creation, execution and analysis of contracts thereby enabling enterprises to maximize the performance of the company, while also reducing the risks involved. The new information technologies (ERP, e-procurement, e-commerce, Online transactions, etc) on contract management have over time become indispensable for conduct of businesses. The implication of the new information technologies are.

· Reduces the process time in creation and execution of contracts.

· Removes the necessity of physical interactions, thereby reducing cost.

· Information is available online and improves the transparency of operations.

· The payments are electronically secure and hence reliable.

· Access to data, high volume storage and retrieval of data help in decision making.

· Real time information is available and hence better monitoring and control

· More structure and visibility to the operations and hence easy execution of works.

· Changes to contracts can be made easily and approvals are quick

· There is a wide range of options available to both the parties.

· Helps in automation of processes thereby reducing manpower required.