EDITOR’S NOTE: As I usually do, I shared my last post, Dr. Epstein’s Five Solution Providers To Watch, on LinkedIn, in which I discussed her prediction that CLMs are done—over. As a side note, Dr. E sent the following text to Sarah Scudder last evening emphasizing that previous point: “CLMs are mostly terrible anyway, so I definitely see them becoming less relevant. CLMs are just tables with a bunch of metadata. Not really innovative.“
That said, in the discussion stream—which is quite active—I was asked the following question: “Jon, what are you seeing in the way of an evolution for CLM vs. “dying off”? I have the same question regarding Risk Management platforms. Thoughts, Mike O’Brien?”
In this post, I will share my response.
Let’s examine a case study of a big player with a CLM offering promoting AI capability: Salesforce
1) Their website states, “Using Vlocity Contract Lifecycle Management (CLM), you can create and maintain the entire life cycle of contracts associated with opportunities, orders, quotes, or other Salesforce custom objects.” In short, Vlocity CLM enables you to “Manage the complete life cycle of multiple contract types.”
2) Now, see the Forbes image below showing SalesForce’s inability to fulfill its “rosy artificial intelligence dreams” to support the “blue chip stock index’s record highs.”It is reported that this is the company’s worst loss since 2004.
3) One final point to add: Gartner predicts that by 2024, 50% of first-time CLM implementations will fail to deliver the expected benefits. The complexities of implementing a CLM can be enough to deter organizations from trying one for the first time or moving to a new one.
What do the above three points tell you?
Here is my simple formula for success:
– People-process-technology – agent-based model (success)
– Technology-process-people – equation-based model (failure)
The fact is that tech, no matter how great, will not overcome poor processes and a lack of people’s buy-in.
What’s the biggest question you have about AI? Let us know with a comment below. We read every single one and may just choose yours as the subject for a future newsletter.
There was also the following added note:
5,181,245 followers
Not getting the best results from your generative AI queries? The difference between useful and useless AI outputs is metadata, a labeling system that provides added context and information about your data. 🗞️ Read all about it in the latest edition of our hashtag#AskMoreOfAI newsletter.
So, here is my question – what do you think of this evening’s post by SalesForce after reading the Forbes article earlier today?
Conversely, what if you read this evening SalesForce post but hadn’t read the Forbes article?
Procurement Insights
A Lot Can Happen in 24-Hours (Late Night Edition)
Posted on May 31, 2024
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EDITOR’S NOTE: As I usually do, I shared my last post, Dr. Epstein’s Five Solution Providers To Watch, on LinkedIn, in which I discussed her prediction that CLMs are done—over. As a side note, Dr. E sent the following text to Sarah Scudder last evening emphasizing that previous point: “CLMs are mostly terrible anyway, so I definitely see them becoming less relevant. CLMs are just tables with a bunch of metadata. Not really innovative.“
That said, in the discussion stream—which is quite active—I was asked the following question: “Jon, what are you seeing in the way of an evolution for CLM vs. “dying off”? I have the same question regarding Risk Management platforms. Thoughts, Mike O’Brien?”
In this post, I will share my response.
Let’s examine a case study of a big player with a CLM offering promoting AI capability: Salesforce
1) Their website states, “Using Vlocity Contract Lifecycle Management (CLM), you can create and maintain the entire life cycle of contracts associated with opportunities, orders, quotes, or other Salesforce custom objects.” In short, Vlocity CLM enables you to “Manage the complete life cycle of multiple contract types.”
2) Now, see the Forbes image below showing SalesForce’s inability to fulfill its “rosy artificial intelligence dreams” to support the “blue chip stock index’s record highs.”It is reported that this is the company’s worst loss since 2004.
3) One final point to add: Gartner predicts that by 2024, 50% of first-time CLM implementations will fail to deliver the expected benefits. The complexities of implementing a CLM can be enough to deter organizations from trying one for the first time or moving to a new one.
What do the above three points tell you?
Here is my simple formula for success:
– People-process-technology – agent-based model (success)
– Technology-process-people – equation-based model (failure)
The fact is that tech, no matter how great, will not overcome poor processes and a lack of people’s buy-in.
Now, you may think the story ends here – I did.
Before closing shop for the night, the following LinkedIn headline post popped up in my feed: Are you missing the key to awesome AI outputs?
The post then closed with the following:
What’s the biggest question you have about AI? Let us know with a comment below. We read every single one and may just choose yours as the subject for a future newsletter.
There was also the following added note:
5,181,245 followers
Not getting the best results from your generative AI queries? The difference between useful and useless AI outputs is metadata, a labeling system that provides added context and information about your data. 🗞️ Read all about it in the latest edition of our hashtag#AskMoreOfAI newsletter.
So, here is my question – what do you think of this evening’s post by SalesForce after reading the Forbes article earlier today?
Conversely, what if you read this evening SalesForce post but hadn’t read the Forbes article?
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