Importance of Electronic Signature in Modern Business

All organizations have now embarked on a process of corporate digitalization, and each one is at a different point on its itinerary. For some, it was just a matter of complying with new rules (just think of the obligation of electronic invoicing to give one example), while for others, it is proceeding with greater adoption of technologies to optimize the development of workflows and take advantage of the competitive advantage due to technology. Making an entire process or part of it completely digital, however, entails the need to sign contracts digitally: only in this way is it possible to assume the complete abandonment of paper and optimize the time for carrying out activities. And you need to know how to create an e-signature and where you can use it.

What Is an E-signature?

In general, the concept itself is interpreted as a signature obtained by the cryptographic transformation of a set of electronic data. Implementation is not with the help of graphics but mathematical transformations over the content of the document. The so-called mathematics guarantees security because it is almost impossible to forge an electronic signature, so services like SignNow are secured. A digital signature not only provides information about the person who signed the document. It also makes sure that the document itself was not altered or forged after signing.

Why Is eSignature Popular in the Business World?

In the modern world, companies, immediately after the introduction of electronic invoicing between individuals, experienced how useful it is to have digital data flows and how they can be integrated into digital systems to optimize and rationalize processes. In practice, a new approach to administrative management has been inaugurated and then in other areas, with all the positive repercussions that this is entailing.

To broaden the scope of change and proceed with the digitization of more complete business processes, it is inevitable to look also at the creation of digital native contracts signed electronically.

The usefulness of digitally signing contracts is evident in many business processes that can be made faster and more efficient when the traditional handwritten signature is skipped. To give just one example, thanks to the electronic signature, it is possible to proceed with the complete digitization of the order cycle from the signing of the order to the preparation of the accompanying documents for the delivery of goods.

Types of eSignatures

Simple electronic signature

A simple electronic signature (otherwise called weak) consists of data in an electronic form connected by logical association to other data that are used by the person who signs the signature. It is used only to give authenticity to the electronic document.

Advanced electronic signature

An advanced electronic signature, on the other hand, guarantees greater security since it is exclusively connected to the signatory that, among other things, has full control of the means necessary to affix the signature. This signature makes it possible to identify, among other things, any modification of the signed document.

Among the different types of advanced signatures, there is a qualified electronic signature created by a special device (usually a smart card, USB key, token, or even OTP – one-time password mobile authentication codes) as well as based on a qualified certificate to associate the identification of the holder in a unique way.

Graphometric Signature vs. Remote Digital Signature

There are several types of advanced signatures. In particular, a graphometric signature and a remote digital signature are characterized by being very different from each other.

Specifically, a graphometric signature requires the signer to write on a specific device with a stylus as if they were signing on paper. The software used for a graphometric signature verifies the correspondence of the signature with the one previously deposited by the signer and proceeds with the validation. It is a signature similar to a traditional one; so, if necessary, a graphologist could intervene to verify its authenticity.

On the contrary, a remote digital signature does not require the use of hardware and is particularly appreciated by companies as it is a procedure that can be used wherever you are; you just need to have access to the Web. To use the remote digital signature procedure, the signer must authenticate using digital certificates residing on secure servers of the HSM certifier. With the OTP or PIN, a signature is sent on various types of devices, including smartphones and tablets. In this case, the guarantee of data protection is given by advanced encryption techniques.

Where Can I Use an E-signature?

You can use electronic signature certificates to organize electronic document management, registration, and user identification on a variety of information resources. Moreover, they are used for encryption of information, signing of any electronic documents, etc. This means that enhanced certificates can be used in various areas of electronic information exchange.  It is necessary to identify the signatory, confirm the integrity of the data, and also record the time of signing the document.