Document digitization and process automation

One of the most common reasons why documents leave the digital environment is the approval of their content by signing in a traditional form. This significantly slows down transformation and increases the risk of introducing errors through a manual processing process.

The answer to this problem is the digitization of signing. However, the company must decide which form of electronic signature it will choose. Factors entering the selection include requirements for integration, working with documents exclusively within its own infrastructure, as well as the segment in which the given company operates.

Selection of an electronic signature

In practice, three kinds of consent with digital content are used, which are defined by the European eIDAS Regulation (Regulation of the European Parliament and of the Council (EU) No. 910/2014), which is also valid in the territory of the Czech Republic:

• Simple electronic signature
• Advanced electronic signature
• Qualified electronic signature

A simple electronic signature does not have precisely defined criteria for format, nor for the level of security. Most often it is a signature in an email, or a scanned handwritten signature.

An advanced electronic signature must meet several criteria. According to eIDAS, Article 26:

1. a) it is uniquely linked to the signatory;
2. b) it is capable of identifying the signatory;
3. c) it is created using electronic signature creation data that the signatory can, with a high level of confidence, use under their sole control; and
4. d) it is linked to the data signed therewith in such a way that any subsequent change in the data is detectable.

An advanced signature therefore guarantees higher security and the possibility of determining the identity of the signer. This includes, for example, a handwritten electronic signature with signature characteristics (recording data such as stroke speed, pressure, etc.), signing documents in a secure zone (e.g., internet banking), where the client signs by entering a password from two-factor verification (e.g., a token from the bank’s application).

A qualified signature is also a form of an advanced signature, but in addition, additional requirements for identifying the signer must be met:

• the certificate for a qualified signature is issued by a certification authority
• the certificate is stored on a medium certified by the NBU (for example an ID card)

The main difference compared to a simple and advanced signature is the fact that a qualified signature contains the identity of the signer, which has been verified by a certification authority. In other forms of signature, the identity of the signer is captured, for example, in the unique characteristics of the signature or in other data from the signature (GPS, IP, delivery of the document to email, entry of a one-time password, login to the client zone/internet banking, etc.). With this data, handwriting experts and forensic experts in the field of information systems can subsequently work in court expert evidence.

Security and usability

A qualified signature contains the identity of the signer, but it is relatively complex to use and has very specific requirements for hardware as well as the applications used. A qualified signature can also pose a security risk for the certificate owner if they have to use it on a foreign device (e.g., an ID card with a chip). In scenarios of signing with a client or in internal documentation, where emphasis is placed on processes following the signature, a qualified signature brings several obstacles.

If it is not legislatively mandated (for example, filing a tax return may only be possible with a handwritten signature or a qualified certificate), it is possible to use any form of electronic signature. The most widespread type of signature is the advanced electronic signature, which represents a middle way between its usability options and its security. It creates a usable and integrable tool for processes inside the company as well as outward. For commercial practice, it is more suitable to digitize the common paper procedure with an advanced electronic signature.

How to prepare for the introduction of electronic signing

Before searching for a signing solution itself, the company should do an internal analysis and answer several related questions:

• Analysis of the current signing process

In which scenarios does the company sign on paper?
What can be improved in the paper process?

• Which types of documents does the company want to sign electronically?
• What does the approval of content with the client look like – in person or remotely?
• Where will the documents be signed – at branches, internally?
• Which form of electronic signature is suitable?
• Documents

Where are digital documents created?
Where are digital documents archived?
How to deliver electronic documents to the client?

• What are the impacts of new signing processes on internal systems?
• When to carry out a legal analysis and prepare consent for electronic signing?

Introducing an electronic signature does not only mean starting to sign digital documents, but also changing internal processes and habits. Risk factors are the company’s internal systems, which are also affected by electronic signing (e.g., document storage, CRM, client zone).

When introducing electronic signing, it is more suitable to choose only one type of document that has the simplest signing process and will bring an immediate benefit. Subsequently, it is necessary to evaluate how signing proceeded from the creation of the document up to stakeholder feedback, draw conclusions, propose improvements, and move on to digitizing another type of document.

Last but not least, it is important to also think about end clients and correctly communicate the change in signing and sufficiently explain how the new electronic signing process will proceed.

Implementation and costs

Currently, there is a relatively wide offer of ready-made signing solutions on the market, which can be used almost immediately. They offer basic integration options and pre-setting of processes. It depends on the company whether it can work with a ready-made solution or whether it needs to integrate the solution more into its infrastructure.

When implementing an electronic signature, depending on the complexity of processes and specific requirements, such an implementation can take 1 month to 1 year. It depends mainly on the number of integrated systems and also on the form of the electronic signature.

At the same time, the adjustment of internal systems (if necessary), which is usually covered by the suppliers of these systems, also enters the total implementation time.

The costs of implementing an electronic signature itself can be divided into:

• License fee for the electronic signature solution (depending on the licensing policy it may be a one-time fee, monthly, fee per transaction/signed document)
• Service level agreement (SLA)
• Fees for development/integration/deployment
• Cost of hardware needed for signing (tablets, signature pads, computers)
• Cost of modifications to the company’s internal systems
• Cost of the time of company employees who devoted themselves to the topic of electronic signature

If a company does not have high requirements for integration and customization, it can focus on cloud solutions, i.e., software as a service. In that case, costs are limited only to the selection of a specific package of functionalities defined by the service provider. This is usually the number of accounts, the volume of signed documents, or additional integration services (e.g., Google Drive). The implementation costs of such a service are lower, but at the same time they offer a much narrower range of personalization options. With this type of solution, it is also necessary to think about the fact that documents leave the company’s IT infrastructure.

Optimization of procedures and automation of processes

Digitization of documents and related workflows can significantly improve the efficiency of work operations, reduce costs, and increase customer satisfaction. But how to approach the optimization of digitized processes?

Mapping the document flow

A process map works as a flowchart that displays individual tasks in the process as well as responsible persons. It points to needed resources, responsible persons, and subsequent steps in the workflow with documents. The map will help the company identify areas that need to be optimized.

Comparing process performance for individual documents

The company identifies metrics that you will track when measuring process efficiency. Metrics can include processing speed, frequency and number of errors, employee time, or return on investment of the workflow.

Bottleneck analysis in processes

In this step, it is necessary to identify obstacles in workflows and focus on identifying problems. The company identifies key causes that slow down the process, where frequent errors occur, or unnecessary steps.

Modeling new processes for document management

After identifying critical processes, modeling the new process comes next. This is the visualization of each step in the new workflow, where documents will be directed and who must approve the given content.

Automation of document management

The goal of a digital workflow is a system that automatically determines the correct routing of documents. By integrating the approval process into the document workflow, space opens up for the use of electronic signatures. This removes the obligation to manually print, sign, and scan documents and also manually forward them to the next approver. It is also necessary to consider automating document generation and setting their automatic distribution to stakeholders.

By correctly introducing an electronic signature, a company becomes more efficient not only toward the client, but also internally. It eliminates errors that were part of the paper process and can deliver the product or service to the client/contracting party, invoice, or fulfill the contractual relationship faster.