These days I’m getting pretty hooked on e-signing, digital transactions management or electronic signatures (many names!) – there’s a very particular reason for it, that I’ll get back to. To kick off this area I figured a business outlook on things would be a nice first dive into the topic. After all, it’s all about costs savings, efficiency and living digital. Oh – and saving the planet 🙂
What’s the gain? let’s look at what some industry results:
- LinkedIn reduced their time to invoice from 25 to 5 days
- Salesforce.com saves an average of 19.31$ per contract
- Kia Motors cut their contract processing time with 50%
- Nordic Choice Hotels reduced their admin time by 100% to 0 minutes
The most natural place to start exploring Digital Transaction Management is within sales – namely contracts. However, I’ve recently become acquainted with how much you can move into the area of Digital Transaction Management, will I’ll cover in later posts.
Now let start this exploration by focusing on the traditional paper based contracts. The process starts with somebody generating the document, then someone prints it, then it is tucked away in an envelope, it is sent with the traditional snail mail, somebody signs it, tucks in into the a new envelope, sends it back, somebody receives it (often a central mailing department), it is then distributed to the correct department, they process it and only after that is the process complete.
Whew. The process – when I think about it and the alternatives – it is staggering. From a cost side, you should be able to at least save in these areas:
- Internal Processing Time
- Time saved hunting for contracts
In addition to these, your company might spend excess time trying to retrieve missing information from clients, because whoever filled out the contract, didn’t fill out everything the billing department or another internal unit needs.
The Process of E-Signing You wouldn’t believe how simple it actually is, if you haven’t already tried it.
- A sales rep generates the contract in PDF or upload the file to the provider
- The contract is send out electronically – via email or to mobile device
- The receiver can approve the contract directly from whatever device
- The contract is signed
That’s it. It is so dead simple. If you are wondering about the legality of it all, this process have passed the checks of legal departments such as Salesforce.com, LinkedIn, Groupon, Hewlett-Packard etc.
The Benefits With the risk of repeating myself, I cannot emphasize enough how much you gain from this. HP’s John Hinshaw (EVP of Technology and Operations) stated that it was the most impactful system he had ever implemented. What you (can) get is:
- Faster time to close
- Faster time to invoice
- Automatic filing of contracts
- Auto-Generated, Secure contracts from templates
John Hinshaw, HP on implementing DocuSign
Mark Brennan, Pandora on Legal Compliance with EchoSign