Every business deals with the burden of processing paperwork. E-sign tools and CLM software are both useful aids to seamlessly conduct paperwork processes. However, they serve different yet equally important functions. Read more to know how to choose between e-sign tools and CLM software for your business needs.
What is an e-signature?
E-signatures, also known as digital signatures, are paperless alternatives to traditional wet ink signatures. You can draw your signature electronically or upload an image of it onto electronic documents to e-sign them. While the terms e-signature or digital signature are used interchangeably, when you digitally sign a document, a digital signature certificate unique to the signer is attested cryptographically onto the document. This is traceable and cannot be tampered with or forged, which makes it a more secure option.
What is CLM?
Contract lifecycle management (CLM) is a process that helps businesses manage contracts, right from creation to termination or renewal. The key components of CLM includes contract creation, negotiation and approval, execution (signatures), performance monitoring, and renewal or termination.
When should you choose e-sign or CLM?
| Feature | E-Sign software | CLM software |
|---|---|---|
| Primary function | Helps businesses electronically sign documents with automated workflows | Helps businesses execute an agreement from start to end |
| Complexity | Simple and easy to implement | Usually complex and requires more specialized resources |
| Users | All departments: sales, marketing, HR, finance, etc. | Specialized teams in a few departments like procurement, finance, and legal |
| Integration capabilities | Integrates well with everyday tools like CRM, HRMS, finance suite, email, and collaboration tools | Integration options are usually limited to CRM, ERP, and other specialized tools |
| Type of business | Businesses of all sizes | Medium to large Businesses with specialized teams |
| Cost | Generally lower cost | High initial investment that brings long-term value |
How to choose the
right platform?
Here’s a quick checklist to help you choose
E-signature options
- Does it provide QES, AES, and SES?
- Are there authentication and signer verification methods?
CLM capabilities
- Does it help manage contracts throughout their lifecycle?
- What aids do they offer - legal clause check, pre-built templates, collaboration support, renewal or termination tracker?
Acceleration and automation
- Does adopting this platform cut costs and save time for you?
- Are business operations automated, swift, and seamless?
Centralized management
- Can you track document and signer activity?
- Can you generate detailed audit logs and reports?
- Can you set roles and provide permission for limited access to users?
Integrations and APIs
- Does it support integrations with business suites and other integration platforms?
- How about APIs for integrating with your own apps?
Customizable
- How customizable are the email templates and signature workflows?
- Can you retain your brand identity?
Scalability
- Will it support your business needs as you expand?
- Is it compatible across all verticals in your company?
Affordable
- Will it burn a hole in your pocket or help you stack up profits?
User-friendly
- Can non tech-savvy users use it?
- Is it intuitive?
- Do they offer customer onboarding and migration support?
Security, legality, and compliance
- How safe are your documents with this product?
- Is the platform secure?
- Do they comply with strict international guidelines?
Resources
Zoho Sign checks all the boxes.
Don’t believe us? Try it for yourself using our 14-day free trial.
FAQs
Electronic signatures are just It depends on your needs. E-signature apps are better suited for companies who only need to send and collect signed documents in a highly secure manner. If a company wants to automate its contract lifecycle, CLM apps would be a better choice. Check out the comparison chart above for more clarity.
Yes, digital signatures are valid for most Yes, Zoho provides both functionalities via Zoho Sign and Zoho Contracts respectively. Zoho Sign is a comprehensive digital signature platform. Though there are no dedicated CLM functionalities, you can create and reuse templates, send and collect signed documents, monitor document and user activity, and download detailed reports about these activities using Zoho Sign. Zoho also offers CLM capabilities via Zoho Contracts. Learn more.
Zoho Sign uses Public Key Infrastructure Definitely! Zoho Sign is legally valid in most countries and regions worldwide. To learn about Zoho Sign's legality in your country or region, check out our legality guide.