In this era of digital transformation, businesses are incorporating modern technologies to simplify their processes and improve customer experience.
One key aspect of digital transformation is moving IT systems from legacy on-premise software to software-as-a-service (SaaS). Several businesses undergoing this process have already realized some promised benefits like revenue growth and increased collaboration across departments (see how retail eCommerce company Adore Me saw a 47% increase year-over-year in annual revenue and 2.3X growth in the number of active customers after implementing a clickthrough solution). Changing software offerings, however, also means changing the legal agreements that govern them and implementing a solution that is secure, scalable, and compliant.
What is digital transformation?
Digital transformation is not technology for technology’s sake. Rather, it is a technological and cultural shift that allows businesses to increase revenue, enhance operational processes, and improve customer experience. At the tail end of the 90s, Salesforce began to advocate the “end to software.” Marc Benioff, founder and CEO of Salesforce, believed that traditional, on-premise software was taking its dying breath, and that third-party cloud-based solutions were the future. Since then, Salesforce’s prediction has come true: consumers recognize that SaaS software is a more cost-effective and customer-serving way of delivering software.
In fact, International Data Corporation (IDC) predicts, digital transformation spending will increase 42% by the end of 2019, reaching $1.7 trillion worldwide. As 27% of executives believe digital transformation is a “matter of survival,” it’s becoming more widely understood that to not implement a digital transformation strategy is to flounder in today’s world.
High risk, high reward: 4 Benefits of a digital transformation strategy
Digital transformation is a strategy that will allow your company to improve and remain competitive. While a digital transformation strategy comes with high risk, it also comes with high rewards. These benefits include:
- Improved customer experience: the advancement of the "right now" economy often means customers expect their transactions to be not only convenient, but also instant. A digital transformation strategy will bring in technology that makes this possible. (See how eSignature is transforming for the "right now," consumer-driven economy.)
- Greater efficiency: A digital transformation strategy can bring together employees from various silos within the organization and the silos themselves, ensuring that all departments collaborate towards a common goal.
- Increased profitability: According to the International Data Group (IDG), "32% of IT decision-makers say digital business has already helped their organization achieve revenue growth, with an average increase of 23%."
- Data-driven insights: a company's digital shift now gives them greater access to analytics, which will allow them to optimize or change current business strategies.
Transitioning from on-premise software to SaaS delivery
One of the primary tactics of digital transformation is moving from on-premise software to subscription-based SaaS delivery.
There are significant benefits for companies who are switching their software offering from on-premise to SaaS. Although a customer may pay less upfront for traditional software, the subscription-based business model provides a regular stream of income. In fact, according to Stanford Graduate School of Business, this market has grown from $57 million in sales in 2011 to $2.6 billion in 2016. Additionally, providing cloud-based software for customers means making less device-specific customizations.
Further benefits include:
- Increased reliability of software, as it no longer depends on the well-being of in-house servers
- More customers and better customer experience because your web-based software can be accessed from anywhere they are, and partners can "plug in" to your solution easier
- Instant deployment of SaaS solution; no "installation" required
- Easier and more cost effective to maintain: SaaS tools don't require a team or dedicated resource to update
The part you always forget: Legal
Often, when the business changes from on-premise software to SaaS delivery, the agreements also transform: from EULA to Terms and Conditions/Terms of Service. (Quick definitions: A EULA is a contract whereby the software provider licenses customers’ access to and use of their software; a Terms of Service agreement is an agreement between users and providers of some internet service that governs how users’ use the software-as-a-service.)
The two are also traditionally delivered in different ways. EULAs are part of downloadable, installable, hard software. As a result, EULAs can be distributed haphazardly through various means: as downloads, through command lines, and via paper copies. Conversely, because SaaS products are almost always cloud-based, Terms of Service agreements are, too, and can be delivered through a single channel. And while the Terms of Service can manage a provider’s relationship with a user, none of it will be enforceable unless delivered via the right medium.
From both a business and a legal perspective, two conclusions have emerged:
- It's critical to manage, track, and disclose who has agreed to what and when, and what customers have agreed to over time.
- One particularly efficient way to deliver these contracts to users is by way of a clickthrough agreement.
Why you need a clickthrough solution as part of your digital transformation strategy
A clickthrough is a box or a button that users check or click to agree to a provider’s terms and policies. Clickthrough agreements have become an integral part of our increasingly digitalized life because of how quickly they can present legal terms the user must accept. Clickthroughs allow teams to implement whatever they need to remain legally compliant while providing users with a seamless experience. Even more, clickthroughs allow for a more self-service experience for customers, rather than the slower, more cumbersome experience of order forms, PDFs, and emails.
A clickthrough agreement, especially one that follows best practices, is the quickest way to get enforceable electronic signatures for contracts. Electronic signatures are perfectly valid and legally binding in most countries around the world according to established case law.
As the subscription economy explodes, so will the legal issues and customer disputes. It is imperative that businesses have a way to be able to track, manage, and update records of your web-based contract acceptance. Our contract management platform creates a legally enforceable audit trail and automates your record-keeping process. With our API-first app, you can capture acceptance directly on your website with just one click and integrate it directly into your website or mobile app, making it a seamless part of your user’s experience.
Learn more about how a clickthrough solution can arm your digital transformation.