eSignatures Part 2:
Benefits of Electronic Signature
- Increased Revenue – The ability to close a contract in real time increases the probability that it will close by 50 percent, resulting in incremental business.
- Improved Efficiency – Physically moving contracts for signature through a workflow greatly increases cycle times. Electronic signatures reduce this cycle time by up to 90 percent, from days or weeks to minutes— resulting in higher transaction volumes.
- Reduced Cost – It costs more than $170 to process a paper transaction. An electronic signature solution can reduce this cost by up to 90 percent.
- Security and Compliance – Electronic signatures carry the same legal effect as physical signatures and since approval workflows, signature limits, and verifications are built-in authentication and security are actually improved. Audit expense is also reduced because all contracts are securely stored.
- Go Green – A fully paperless process that does not involve paper, toner, packaging, shipping, and fuel makes a terrific contribution to reducing your carbon footprint.
Who should be using eSignatures in your organization?
- Legal – Largely responsible for contract execution and risk management, legal is often the primary beneficiary of electronic signature programs.
- Sales – Numerous studies have shown a direct correlation between reduced contract cycle time and increased revenue and close rates.
- Procurement – Reduced cycle times and electronic, searchable contracts result in improved visibility and better supplier relationships.
- Finance – Contracts stored electronically means better audit trails, records retention, and reduced regulatory and audit risk.
- Administration – No longer a need to store and archive paper contracts as they are stored electronically.
The Uniform Electronic Transactions Act (UETA) of 1999 and the Electronic Signatures in Global and National Commerce Act (ESIGN) of 2000 for foreign commerce clearly and uniformly made the act of an electronic signature legal and binding.
|Ensuring these elements are in place with an audit log that collects evidence of the|
identification of the signers and the actions they take creates a very powerful alternative to the paper process, and actually reduces the legal contract risk.
|These acts opened the door for widespread electronic signature adoption.|
If you don’t have it (but now you want it!)…...contact me today for more information!!
Ariba Contract Management™ has partnered with DocuSign, a leading eSignature provider, to provide the leading enterprise-class electronic contracting solution. Tight integration permits users to electronically sign documents while never leaving the Ariba Contract Management solution. The solution also provides PDF generation capabilities if necessary, allowing concatenation of many documents into a single PDF. Finally, the functionality is fully configurable and can be turned on or off where required—allowing you to effectively perform change management and assure a successful rollout.
The basic process that users follow to electronically sign a document in Ariba Contract Management starts with a task that prompts the user to identify the appropriate signers for the contract. This task sends the document and signer list to DocuSign automatically. Subsequently, DocuSign sends notification emails to the signers to invite them to sign. When the document is fully signed, the PDF is secured, and sent back to Ariba and automatically uploaded as a new version. This lightweight solution does not require the user to have login outside of Ariba Contract Management or perform any activities or tasks in DocuSign.
|THE BUSINESS CASE FOR CONTRACT MANAGEMENT AUTOMATION|
If you are using Ariba Contract management….you know why it is important.
If not, here are some great reasons to consider this for your next organizational initiative.
The Aberdeen Group cited the following savings benchmarks for organizations implementing contract management solutions:
In some cases, turnaround time for document signing has gone from 24 days to 24 hours.
When documents need to signed before checks can be cut, that can make a pretty big difference.
What’s next ???
Electronic Signatures represent a quantum leap opportunity. Significantly improve the efficiency and speed at which your contracts are executed with a 100 percent electronic document repository for improved visibility and storage. Roll out the functionality improving security and authentication when you are ready to assure adoption and success. Contact me for more information!!!
Part 1 of eSignatures:
This has been another Knowledge Nugget post brought to you by Beverly Dunn.
For more information or details please feel free to contact me!