In a new study, Docusign and Statista examined “process digitization” in various industries. According to this, every second medium-sized company is still far from consistent digital processes without media breaks.
Half of the medium-sized companies surveyed in the manufacturing, finance, and healthcare sectors have not yet fully implemented end-to-end digital processes without media breaks. This is shown by the results of a study that DocuSign conducted with the market research company Statista on process digitization. A sector comparison shows that digital development in the financial sector is comparatively far advanced. In healthcare and manufacturing, on the other hand, there is still potential for implementation.
Process Digitization Is Rated Above Average By Companies
With advancing digitization, small and medium-sized companies are in the midst of profound changes. Information exchange and customer contacts are increasingly taking place virtually, and manual work processes are becoming electronic—Seventy-four percent of the medium-sized companies surveyed rate digitization in their own company as good to very good. And thus perceive themselves as more innovative than the economy in general. The financial sector rates its situation the most positively, which can be attributed to better digital infrastructure in the industry. On the other hand, there was a strikingly negative assessment in the healthcare sector. 13 percent of the medium-sized companies surveyed stated that.
How far digitization has progressed in SMEs can be seen from the use of digital contract management because contracts can be found in all areas and departments of a company. The study shows that the processes in companies with a so-called “media discontinuity” primarily include employee contracts and customer contracts. In manufacturing, over 80 percent of employment contracts are printed and scanned. Media break means a digital process is interrupted, data is printed out, and then digitally recorded.
Also Read: Why Digitization Is Unsuccessful Without Data Protection
There Is Still A Lot Of Untapped Potential For Digital Contract Management
As the results of the survey show, digital contract management is already part of the working reality of medium-sized companies. In many companies, it is already planned – but the implementation is often still pending. However, the high degree of planning in many cases indicates that it is part of the digitization strategy of many companies. The implementation should take place in the short term in the current quarter and the medium term by the end of the year.
The industry comparison shows that there is still a lot of untapped potential for digital contract management, especially in the manufacturing industry: only 40 percent confirmed that they already have a solution in use here. Despite the great need, concrete initiatives are often only in the early stages. The situation is different in the financial sector, which positions itself as a pioneer in using digital contract management with 57 percent. At 16 percent, there is a high short-term requirement, the implementation of which is planned for the same quarter in the healthcare sector.
Ease Of Work And Efficiency Versus Established Processes
The most crucial driver for purchasing digital contract management is efficient business processes, but industry-specific differences exist. The goal in the financial sector and health care is efficiency and in manufacturing, above all, the reduction of bureaucracy. The purchase also depends on the decision of different departments. After management, the IT departments come second, followed by the human resources and legal departments.
Fifty-three percent of those surveyed who rejected digital contract management or did not (yet) have it on their digital agenda justified this primarily with security concerns. Many also fear incompatibility with established processes, especially in the manufacturing and financial sectors. Twenty-eight percent could imagine that customers or employees would resist it.
Process Digitization: Companies Recognize The Need For Action
Existing paper-based processes are still hindering the overarching business processes and digital workflows. They lead to information silos and thus become a security risk”. “However, the results also show that the high importance of digital contract management is recognized across all sectors and that the need for action is recognized.”
“The present study by DocuSign clearly shows the potential we have not yet fully exploited. Only those who digitise can network and subsequently automate. Automated companies have a clear competitive advantage over their competitors in the market.
Also Read: Successfully Implementing Digital Processes In Companies – This Is How It Works