1. ARIBA KNOWLEDGE NUGGETS
Contract Management
eSignatures: Go ink- and paper-free with electronic signatures,
and watch your savings, revenue, and productivity grow.
You put a lot of effort into developing each trading partner deal, and into the contract that will seal it.
You've also put a lot on the line by relying on wet-ink signatures for execution. Any delay can put even
the best deal in jeopardy. Copying, distributing, and overnighting cost time and money. And signing
mistakes can really slow things down, or cause problems later on if not caught now.
Incorporating electronic signatures into your contract management process is a step toward more
control and a completely paperless contract lifecycle. Copying and shipping costs will be a thing of the
past. You'll cut the time it takes to execute a contract from days - or weeks - to mere minutes. And the
process easily meets audit and regulatory requirements.
The results you can achieve are compelling: A 50% higher probability of closing a deal. Up to 90%
greater workflow efficiency. Lower paper costs of more than $170 per transaction. And by eliminating all
that paper, toner, packaging, and shipping, just think how much greener you'll be.
Definition of an The legality of an
electronic signature electronic signature
An electronic signature is Yes. They carry the same
a fast, secure, and easy Ariba has partnered
legal effect as physical sig-
way to sign a contract. It with electronic natures while raising the
can be defined as a proc- signature leader standard for authentication
ess that attaches an en- and security. The enforce-
coded signature to an DocuSign to ability of e-signatures in the
electronic document, veri- design a low-touch, U.S. was ensured in 2000.
fying the identity of the That's when the Electronic
signer and signifying an high-value solution.
Signatures in Global and
approval to terms. An National Commerce Act
electronic signature need- (ESIGN) was signed into
n't resemble what would law, establishing that the
commonly be recognized use of electronic means to
as a signature. It can be create and sign documents
any sound, symbol, or would not jeopardize their
process adopted with the validity or enforceability.
intent to sign a document.

2. ARIBA KNOWLEDGE NUGGETS
How do electronic signatures work?
It's easy. First, each system user is identified and provided with a unique and secure elec-
tronic signature. Then, when you're a requestor, you use a simple drag-and-drop tool to
identify the signers needed on a given contract, and where they need to sign. With one
more click, you send the contract and signer list to Ariba's partner, DocuSign. DocuSign
sends emails to ask signers for their signatures. Automated triggers, set to the update inter-
val of your choice, keep you informed about process status. Once everyone has signed, a
final PDF version of the contract is secured, returned, and uploaded.
When you're a signer, you open the DocuSign email, review the contract, and follow the
guides to see where you need to sign. Just click on each location to e-sign your name.
When finished, click "done" to send the contract back to the requestor. Fully executed cop-
ies are automatically stored in the Ariba system, and a tamper-proof master copy is stored
in DocuSign's SAS70-compliant datacenter. Each signer receives a notification and a link to
the signed document, as well as a Certificate of Signing as evidence of the process.
50% higher But….what about security?
probability of Yes, electronic signatures are far more secure than any paper-based
closing a process. Leveraging the latest application security, infrastructure protec-
tion, and DocuSign's unique contract execution process, you have the
deal
peace of mind that documents and customer data are secure and safe
during and after the signing process. Documents are digitally sealed and
Up to 90% all communication is transmitted over SSL 128 bit encryption. Plus, the
greater service includes a 100% audit trail of the entire process, ensuring compli-
ance and reducing the risk of fraud or lost records.
workflow
efficiency
See what all the excitement is about…..
visit Ariba Exchange to learn how other companies are using eSignatures!
Ken Miklos, Ariba Contracts Sr. Solutions Marketing Manager says on Ariba Exchange:
I had an interesting conversation this week with Bob DeSantis, the VP of Sales at DocuSign. His company has now exe-
cuted just short of 50 million signature events electronically on behalf of their customers which include many large, global
organizations like Cisco Systems, BP, and Expedia. Of these, exactly zero have been successfully challenged (or chal-
lenged at all for that matter) in court. Bob went on to explain that eSignatures are actually more safe and secure than
traditionally wet ink signatures since the signature process takes place in a completely secure environment vs. by fax,
mail or email...all of which are very much not secure channels.
Yet, while all acknowledge the value, legality and the response that, "our legal group won't accept an electronic signature"
is still the most common retort when I talk to folks about eSignatures...although this is changing.
What is your company's viewpoint? Educate stakeholders with the white papers, case studies, and a savings calculator
at www.ariba.com/esignatures.

3. Benefits of Electronic Signature
• Increased Revenue – The ability to close a contract in real time increases the probability that
it will close by 50 percent, resulting in incremental business.
• Improved Efficiency – Physically moving contracts for signature through a workflow greatly
increases cycle times. Electronic signatures reduce this cycle time by up to 90 percent, from
days or weeks to minutes— resulting in higher transaction volumes.
• Reduced Cost – It costs more than $170 to process a paper transaction. An electronic signa-
ture solution can reduce this cost by up to 90 percent.
• Security and Compliance – Electronic signatures carry the same legal effect as physical sig-
natures and since approval workflows, signature limits, and verifications are built-in authenti-
cation and security are actually improved. Audit expense is also reduced because all con-
tracts are securely stored.
• Go Green – A fully paperless process that does not involve paper, toner, packaging, shipping,
and fuel makes a terrific contribution to reducing your carbon footprint.
Who should be using eSignatures in your organization?
Ensuring these
• Legal – Largely responsible for contract execution and risk management, elements are in
legal is often the primary beneficiary of electronic signature programs. place with an audit
log that collects
• Sales – Numerous studies have shown a direct correlation between re- evidence of the
duced contract cycle time and increased revenue and close rates. identification of the
signers and the
• Procurement – Reduced cycle times and electronic, searchable con- actions they take
tracts result in improved visibility and better supplier relationships. creates a very
• Finance – Contracts stored electronically means better audit trails, re- powerful
alternative to the
cords retention, and reduced regulatory and audit risk.
paper process, and
• Administration – No longer a need to store and archive paper contracts actually reduces
as they are stored electronically. the legal contract
risk.
Door Opener
The Uniform Electronic Transactions Act (UETA) of 1999 and the Electronic Signa-
tures in Global and National Commerce Act (ESIGN) of 2000 for foreign commerce
clearly and uniformly made the act of an electronic signature legal and binding.
These acts opened the door for widespread electronic signature adoption.
• Contracts executed with electronic signature carry the same weight and legal effect as traditional
paper documents and handwritten signatures.
• A document or signature cannot be denied legal effect or enforceability solely because it is in elec-
tronic form.
• The electronic signature must demonstrate the signer’s intent to sign, and must be the act of the
signer.
• The signature must be affixed to the agreement in a tamper-evident manner, and the document con-
tent itself must also be tamper evident.
• In order to qualify as an electronic signature, the system used to capture the electronic transaction
must maintain an associated record or note reflecting the fact that it was executed with an electronic
signature.

4. If you don’t have it (but now you want it!)…...contact me today for more information!!
Ariba Contract Management™ has partnered with DocuSign, a leading eSignature provider, to pro-
vide the leading enterprise-class electronic contracting solution. Tight integration permits users to
electronically sign documents while never leaving the Ariba Contract Management solution. The solu-
tion also provides PDF generation capabilities if necessary, allowing concatenation of many docu-
ments into a single PDF. Finally, the functionality is fully configurable and can be turned on or off
where required—allowing you to effectively perform change management and assure a successful
rollout.
The basic process that users follow to electronically sign a document in Ariba
Contract Management starts with a task that prompts the user to identify the In some cases,
appropriate signers for the contract. This task sends the document and signer turnaround time
list to DocuSign automatically. Subsequently, DocuSign sends notification
for document
emails to the signers to invite them to sign. When the document is fully signed,
the PDF is secured, and sent back to Ariba and automatically uploaded as a signing has gone
new version. This lightweight solution does not require the user to have login from 24 days to
outside of Ariba Contract Management or perform any activities or tasks in 24 hours. When
DocuSign. documents need
to signed before
THE BUSINESS CASE FOR CONTRACT MANAGEMENT AUTOMATION checks can be
If you are using Ariba Contract management….you know why it is important. cut, that can
If not, here are some great reasons to consider this for your next organizational initiative.
make a pretty big
difference.
The Aberdeen Group cited the following savings benchmarks for organizations
implementing contract management solutions:
• 55 percent additional spend brought into compliance
• One to two percent increase in revenues
• Reduce contract negotiation cycle time up to 50 percent
• Reduce administrative costs of contract creation and negotiation 25 to 30 percent
• 25 percent improvement in timely contract renewals
• 25 to 30 percent improvement in realizing rebates and discounts
• Significant reduction in auto-renewing (evergreen) contracts
What’s next ???
Electronic Signatures represent a quantum leap opportunity.
Significantly improve the efficiency and speed at which your contracts
are executed with a 100 percent electronic document repository for
improved visibility and storage. Roll out the functionality improving
security and authentication when you are ready to assure adoption
and success. Contact me for more information !!!