James Meads isn’t saying it in this LinkedIn post, but he’s hit the nail on the head with an old-school hammer. (Unlike the shiny new hammer, the old school hammer actually works.) For most small enterprises, they don’t need full contract lifecycle management, they need document centralization and visibility and time-based reminders. That’s it!
This is because they:
- do negotiations through phone and Word-redlining,
- use hand signatures through scans and emails,
- place orders through e-docs in standard format to receipt email addresses because they don’t have a fancy e-Procurement system which does integrated P2P
- don’t have a modern AP system that can ingest contract meta-data and they still need a clerk to enter the price tables manually
- still need to enter the non-order commitments manually into their project planning tool
- etc.
What they need is old-school document management built on a CMS (Content Management Solution) tailored for contract documents and Procurement needs. That’s it!
This is not a 50K to 250K solution, but a 5K solution … (especially since most CMS is essentially shareware these days)!
Now, once you hit the true mid-market, and start spending 50M to 100M a year or more, you need a lot more advanced capability across the board, and if you’re contract heavy, spending 50K to centralize all of the above and do true automated end-to-end lifecycle management efficiently is peanuts. However, when you’re less than 50M revenue, spending at most 20M externally, and only have a few categories large enough to negotiate significant discounts, you just don’t need advanced S2P solutions, or the price tag. Anything that enables a standard process is all you need. (Even if you are a F500/G1000, the reality is that just having a basic solution that enables a standard process will likely get you 90% of the “savings” the most advanced suites promise at 5X to 10X the price tag. At the end of the day, most firms only have a few [dozen] categories [at most] where a more advanced solution is needed to extract value.)
(And then, as you grow, there are great Mid-Market S2P suites that start in the 50K range, with the best/most extensive maxing out around 250K a year, meaning you don’t need to go to a mega suite and pay millions. But since Gartner, Forrester, etc. maps will never list them, you do have to look for them. But you have resources. James’ site. Sourcing Innovation. etc.)
