CoSign by ARX | July 2014

An ALM survey conducted on behalf of CoSign by ARX

Signature-Dependent Processes & the Use of Digital Signatures in the Legal Market

Background

In May 2014, CoSign by ARX teamed up with ALM to conduct a survey targeted at corporate legal departments, law firms and government agencies to understand how signature-dependent processes and digital signatures play a role in their day-to-day operations. Particularly, we sought to uncover legal professionals’ perspectives on:

Use of digital signatures and usage readiness

The efficiency impact of using digital signatures versus physical signatures

The benefits and concerns about digital signatures

The departments most interested in digital signatures and most reluctant

Objectives

Summary

202 respondents participated in the survey. Nearly half of them (47%) work in a corporate law department while 33% work in a law firm. By position, the three largest groups were managing partners/partners (22%), in-house corporate counsel (17%) and CLO/general counsel (16%).

Respondent profile

Key findings

40% are already using digital signatures. Another 39% are ready or near ready to adopt them.

49% of documents are printed for the sole purpose of collecting a signature.

47% sign at least four times a week; 31% sign 8 or more times per week.

An average of 1.24 days are added to processes due to paper-based signatures.

87% cited ‘security and integrity of sensitive data’ as the most important factor in a digital signature solution.

The top response for biggest benefit of digital signatures was ‘increased efficiency’ (62%).

64% cited ‘security, control, integrity and location of sensitive data’ as the top concern about digital signatures.

In which of the following ways are you involved in processes/documents that require a signature?

Detailed Findings (1 of 10)

Other involvement

Not involved/knowledgeable ofsignature processes

Sign documents 4-7 times/wk

Sign documents 0-3 times/wk

Responsible for signature processes inorganization

Sign documents 8+ times/wk

4%

5%

16%

21%

23%

31%

Total responses: 202

Describe your firm/department

Detailed Findings (2 of 10)

Other - 15% Government agency - 5%

Medium (11 to 99 attorneys) - 6%

Large (100+ attorneys) - 6%

Small (1 to 10 attorneys) - 21%

Law department - 47%

Total responses: 189

What is your position?

Detailed Findings (3 of 10)

Other

HR Management

Marketing Staff

IT Management

Marketing Management

Admin Staff (paralegal, legal assistant,…

Of counsel/other attorney

Finance Management

Sr. Associate/associate

Administrator

Dep/Asst General Counsel

CLO/General Counsel

In-house corporate counsel

Managing partner/partner

6%

1%

1%

2%

2%

2%

3%

4%

5%

7%

12%

16%

17%

22%

Total responses: 189

Does your firm or company currently use digital/electronic signatures?

Detailed Findings (4 of 10)

Yes, currently using them 40%

Plan to implement in next 12 months

12%

See the need but no plans at present

27%

Don't see the need 19%

Other 2%

Total responses: 187

In the areas you are responsible for, what percentage of documents is currently or used to be printed out for the sole purpose of adding one or more signatures?

Detailed Findings (5 of 10)

25% or less 29%

26% to 50% 13%

51% to 75% 17%

76% to 100% 34%

I'm not sure/I don't recall

7%

Total responses: 173 *Calculated from ranges Average % Documents Printed*: 49%

On average, how much time is currently or used to be added to a document requiring two or more signatures as a result of requiring physical signatures?

Detailed Findings (6 of 10)

A few hours 39%

1 day 17%

2 to 5 days 24%

More than 5 days 2%

I'm not sure/not aware of timing

18%

Average Time Added*: 1.24 days Total responses: 173 *Calculated from ranges

Which of these factors are/would be important for you in a digital/electronic signature solution? Please rate each factor on a scale of 1 to 5 where 1 is least important and 5 is most important.

Detailed Findings (7 of 10)

7%

35%

60%

68%

69%

70%

78%

81%

86%

87%

0% 20% 40% 60% 80% 100%

Other

References from outside legal counsel or legalservices providers

Vendor reputation

Integration with existing document managementsystems

Pricing

Control over user management/governance policies

Acceptance by the courts

Ease of implementation

Ease of use

Security and integrity of sensitive data

Total 2 Top Boxes

5 - Most important

4

3

2

1 - Least important

Total responses: 167

What would you say are the biggest benefits of implementing digital/electronic signatures? Please select up to 3 benefits.

Detailed Findings (8 of 10)

Other

Improved user satisfaction & trust (employees, partners, clients)

Environmental considerations (reduce paper waste, transportationimpacts, etc.)

Enabling mobile signing (for remote/traveling employees)

Lower costs (eliminating paper-related expenses)

Establishing a paperless office/full digital automation

Complying with legal, retention, audit requirements

Shortened turnaround time on signature approvals

Increased efficiency (saving time on printing, etc.)

1%

10%

17%

35%

36%

39%

39%

50%

62%

Total responses: 165

What would you say are the main reasons for concern regarding implementing a digital/electronic signature solution? Please select up to 3 main concerns.

Detailed Findings (9 of 10)

Total responses: 163

We don't see the business benefits

Resistance from employees

Management doesn't consider it a worthwhile investment

Don't require enough signatures to make it worthwhile

Have higher priority IT projects

Concerns of compliance with regulations/audit requirements

Concerns with acceptance/legality of digital signatures

Concerns of security, control, integrity, location of sensitivedata

8%

13%

20%

22%

27%

50%

56%

64%

Who in your organization would you say was/is the most interested in adopting digital/electronic signatures? Who was/is the most reluctant? Please pick up to three groups in each row.

Detailed Findings (10 of 10)

Total responses: 164

41%

25% 25%

20% 19%

16%

12%

7%

4%

28%

15%

7%

11%

15%

22% 20%

15% 12%

Most interested Most reluctant

Check out the infographic of survey results:

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