According to Aragon Research, enterprise businesses today have many reasons and motivations to begin the movement towards digital transactions. In the 2015 research report, Moving Beyond Paper, Aragon provides solid industry data for three major reasons that any enterprise should be considering electronic signature technology as an integral part of its digital transformation.
At a high level, those reasons are time, money, and risk. More specifically, Aragon cites certain business process that are dramatically improved by the introduction of electronic signatures as a replacement for paper transactions.
Sales is a process bound by time. Just as the retail shopping experience was sped up dramatically by ecommerce, so the enterprise sales process – more accurately, the time it takes to complete the sales process with an agreement – can be decreased significantly with the use of e-signature technology. From Aragon, “Sales contracts that are signed electronically can have a dramatic effect on time to sign and as a result accounts receivables.” Speed is always an advantage in any competition, and enterprise sales is no different. If your sales force can decrease the time it takes to close deals, your organization’s effectiveness improves.
Enterprises use paper. Lots of paper. Paper is part of the line item of “office supplies” to small and even medium sized businesses; however, paper is a cost center to the enterprise. According to Aragon, enterprise businesses spend approximately 1-2% of total revenues on paper. Most enterprises see this trend, and are taking steps to change it. Aragon predicts “By YE 2017, 65 percent of enterprises will retire legacy paper-based processes in favor of those based on digital transaction management.”
The other word we associate with risk is “compliance”. Every enterprise faces certain levels of regulation and financial compliance, and bringing digital technology into the contractual process means mitigating the risk of putting sensitive documents in the cloud. That means content replication, which is far more efficient and cost-effective with electronic signatures than with paper.
There are far more than three things to consider when you face the decision of when to transition to electronic signatures. These three considerations – time, money, and risk – level the playing field in the enterprise. Every executive has to consider these items for any strategic decision, and e-signatures is no exception. In all three cases, e-signatures add to your bottom line.