Although the digital revolution has changed how companies handle communications, approvals and documents, it has also greatly impacted the efficiency of how knowledge workers do their jobs through Digital Signatures and Workflow Automation. The day-to-day activities of knowledge workers center around processing information, collaborating with others and making decisions, making smooth workflows essential. One of the biggest advances has been the adoption of electronic signature technologies combined with automated processes.
Both of these technologies significantly reduce manual steps required to complete certain tasks, lower the chances of delays in completing those same tasks, and create a level of transparency within departments. Although many companies have grown to the point where they are utilizing teams to accomplish tasks, whether they are local, national, or international, they are now forced to adopt digital document management as a structural necessity, rather than just a nice to have.
Role of Digital Signature Technology in Today’s Workflows
Digital signature technologies play a significant role in today’s workflows. The primary advantage of using digital signatures is that they represent a valid, legally binding alternative to traditional handwritten signatures. The eIDAS Regulation (European Union) and the ESIGN Act (United States) both validate the legality of digital signatures.
In terms of reducing the number of friction points in a workflow, the elimination of several common manual steps is possible with Digital Signatures and Workflow Automation. Most organizations have traditionally used printed documents, which were then signed manually. After the signature was applied, the document was scanned and then sent via email to other parties involved in the process. With each of these steps, there existed opportunities for delays to occur and/or potential errors in the transmission or reception of the document. However, with the utilization of digital signatures, the entire process is consolidated into one single process, allowing for easier tracking.
When considering what platform to use to implement digital signatures, organizations should take into account various factors such as cost, integration, and scalability. If the organization is looking to utilize a replacement for Docusign, they should carefully review their specific needs before selecting a product.
Workflow Automation as a Method of Increasing Productivity
Workflow automation is not simply limited to digital signatures; it involves automating the process of assigning tasks, obtaining approvals, and sending notifications through multiple systems. For knowledge workers, this equates to performing fewer repetitive tasks, and therefore, having more time to perform analytical or strategic type tasks.
Examples of typical automated workflows include:
- Contract approval
- Onboarding documents
- Procurement processes
- Compliance audits and trail records
Automated workflows allow organizations to route documents to the correct stakeholders, send reminders, and provide notification that deadlines are approaching. All of these features help to reduce the need for the employee to spend time performing manual follow-up tasks or sending emails.
McKinsey estimates that automation technologies could result in an annual increase in global productivity of up to 1.4%. Even though not all of the increased productivity is due to document workflows, the improvement in productivity is clearly linked to process automation.
Integration with Business Systems
The success of digital signature technologies is highly dependent on their ability to interface with the organizations’ current business systems. Common examples of interfaces include:
- CRM (Customer Relationship Management)
- ERP (Enterprise Resource Planning) Systems
- Cloud Storage Solutions
- Collaboration Tools
These interfaces allow for the seamless exchange of data and reduce redundant effort through Digital Signatures and Workflow Automation. An example of how this works is if a company signs a contract electronically, it can automatically update the customer’s file in their CRM or automatically generate an invoice in their ERP system.
Many companies utilize APIs (Application Programming Interface), and standardized protocols to connect their digital signature tools to their business systems. Companies who design their systems to be as open as possible, can create the most flexible and scalable workflows.
Security and Compliance Considerations
Security is a major concern with regards to digital document management. Digital signature solutions generally incorporate security measures such as encryption, authentication methods, and auditing capabilities to ensure the security of the data.
There are a variety of compliance laws and regulations that govern how companies can conduct business, and Digital Signatures and Workflow Automation help address these requirements. Depending on the country, state, or industry, there may be additional compliance regulations that must be adhered to. Some examples include identity verification requirements and secure storage of signed documents. Audit trails are especially important. They provide a detailed record of all actions performed, including the timestamp of when the action occurred, the identity of the person who initiated the action, and the version of the document at the time the action was performed. Both of these details support the enforceability of contracts, as well as accountability for employees who access sensitive documents.
Effect on Remote and Hybrid Work Models
Remote and hybrid work models have created a need for Digital tools across all organizations of any size. Knowledge workers are now more than ever operating from remote and hybrid work models, and these knowledge workers may be working in different time zones. Physical movements of documents between locations become unreasonable in these environments and can greatly impact process times.
Digital signatures provide knowledge workers with the ability to collaborate asynchronously and more efficiently. The review and signature of documents by stakeholders does not require them to be available simultaneously. This flexibility enabling faster decision making and reduces the bottleneck that is produced by sequential approval processes.
Workflow automation also provides structured support for remote and hybrid work models, and Digital Signatures and Workflow Automation strengthen coordination across distributed teams. Workflow automation provides coordination of tasks among distributed teams and guarantees that processes will continue without interruption. It also provides real-time notifications and status updates to all stakeholders regardless of where they reside, which enhances transparency and accountability.
Measuring Gains in Efficiency
Companies that implement digital signature solutions usually measure their success through a series of Key Performance Indicators (KPI). Many KPI’s measured by companies that implement digital signature solutions include:
- Turnaround time for approval of documents
- Error rate in documentation
- Administrative workload
- Cost savings associated with reduction in paper consumption
Studies have shown that digital workflows can decrease the amount of time it takes to approve documents from days to hours, or even minutes. Document turnaround times are a direct reflection of the speed of business, and therefore, the quicker the business can respond, the better equipped the organization will be to compete in today’s fast-paced markets.
Barriers to Implementation
Digital signatures are an effective tool for many organizations, and Digital Signatures and Workflow Automation offer a number of advantages. However, some organizations are unable to implement a successful system due to barriers. These barriers typically occur during the transition to using digital solutions rather than continuing traditional workflow methods. Some common barriers include:
- Resistance to change. Employees may be resistant to changing the way they perform their job duties by using a new technology. They may be comfortable with traditional ways of completing job duties.
- Legacy Systems. Older legacy systems can create integration challenges when trying to move to newer digital technologies.
- Technical Expertise. Employees may lack the technical skill needed to effectively use digital signature software as part of their job duties.
Overcoming barriers requires providing user training for Digital Signatures and Workflow Automation. Once employees know how to use digital signature software and how it integrates into their current workflow, there will likely be greater acceptance. Onboarding training, hands-on training sessions and easily accessible documentation can help reduce employee uncertainty and increase employee confidence. Also, ongoing support (i.e. Help Desk or Internal Champion) can help the process of adopting Digital Signatures and Workflow Automation become less cumbersome. Communication is just as important as training.
Communication regarding the reason for transitioning to a digital workflow and the benefits for each individual and the organization can help reduce employee resistance. If employees understand how the digital tool(s) can make their jobs easier and/or eliminate repetitive steps, the likelihood of them engaging with the digital tool will be increased. The selection process for a digital signature solution should be approached in a methodical manner.
Evaluation of the digital signature solution should consider features, security standards, regulatory compliance, pricing models and the potential for future scalability. Another area to evaluate is the ability of the digital signature solution to seamlessly connect to your existing systems. Smoother integration can decrease the amount of time spent performing tasks in your normal course of doing business. Pilot testing of a digital signature solution prior to a full rollout can provide value to an organization. Pilot testing allows you to test the digital signature solution in a controlled environment.
Pilot testing can help you identify any issues that could arise with the digital signature solution and allow you to make adjustments to your processes. Additionally, feedback from your employees during pilot testing can assist with optimizing the digital signature solution. With a well planned implementation strategy and adequate training and vendor evaluation, an organization’s likelihood of successfully implementing a digital signature solution and incorporating it into their business workflows will increase.
Future of Digital Workflows
Digital signature and workflow automation continue to evolve. New technologies such as AI and ML are being incorporated into document management systems. These new technologies can assist with document classification, data extraction, and predictive analysis.
Blockchain based solutions are also emerging to provide secure and verifiable transactions of documents. While blockchain solutions are still in development, they may provide greater assurance of authenticity and provide greater transparency to the transaction.
As the nature of knowledge work becomes increasingly digital, the integration of digital signature tools and automated workflows — Digital Signatures and Workflow Automation — will become a key factor in increasing the efficiency of the knowledge worker. Organizations that invest in digital signature tools and automated workflows will benefit by simplifying and reducing the complexity of their business processes, and enabling them to operate more efficiently and nimbly in today’s rapidly changing world.
