Accelerate your business with API integration! How to master electronic contracts

What is API integration in electronic contracts?

First, it is important to understand the basic mechanisms and background of electronic contracts and API integration.

API integration for electronic contracts is a mechanism that calls up the functions and data of electronic contract services from external systems, automating the entire process of contract conclusion and management. For example, a series of operations such as creating contracts, requesting signatures, and approval flows can be performed directly from existing in-house systems or other cloud services.

The background to this is that companies and organizations use a wide variety of systems, and contract-related data tends to be scattered. API integration allows for seamless integration of electronic contract services with data from other systems, eliminating unnecessary manual work and enabling centralized management of contract document creation, contract information tracking, and storage. Electronic contracts smoothly integrated into business flows not only improve costs, but also contribute to faster decision-making through the use of accurate data.

Understanding API integration

An API is an interface that allows software to exchange data and functions. Electronic contract services expose functions such as contract creation, sending, and signing through APIs, and external systems can use these functions to automatically issue and send documents. This significantly reduces the need for personnel to individually log in to contract services and process things manually, improving operational efficiency.

Background of the use of API integration in electronic contracts

Contract work is a cornerstone of corporate activities, but traditional paper-based contract management has presented challenges in terms of speed and management. In recent years, the trend toward digital transformation (DX) has accelerated, and diverse working styles such as remote work and satellite offices have become established. In this environment, electronic contracts are essential for quickly concluding contracts, and APIs that can be integrated with existing internal systems andSaaSproducts are also essential. A major advantage of utilizing API integration is that it allows contract processes to proceed smoothly, regardless of location, while still meeting legal requirements.

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⇒ API｜Glossary

Key benefits of API integration

There are a wide range of benefits that can be expected from API integration. Here we will explain some of the major benefits.

By introducing API integration for electronic contracts, you can automate most of the contract processing, reducing human error and speeding up operations. In particular, since there is no need to enter the same data repeatedly across multiple systems, the risk of data omissions and errors is significantly reduced. In addition, the ability to centrally manage approval flows and signature processes also leads to reduced operational costs.

Another attractive feature is the scalability that only API integration can provide. It makes it easy to add new systems and services as your business grows or your organizational structure changes, and it also allows for flexible customization to meet specific requirements. From a security perspective, APIs also allow for enhanced management functions such as access permissions and log audits, allowing you to operate electronic contracts with peace of mind.

Improved work efficiency and productivity

Introducing API integration for electronic contracts automates much of the contract signing process, minimizing confirmation and data entry work for personnel. This speeds up contract procedures, allowing sales and administrative departments to focus on their primary tasks. Furthermore, by centralizing everything from creating contract documents to sending them and managing progress, it is also effective in significantly reducing the effort required to check each step and miscommunication.

Flexible customization and extensibility

Using API integration allows for flexible integration with internal systems and external cloud services. For example, it's easy to link with your own in-house workflow applications and develop additional functions as needed. Flexibility allows you to respond to changing circumstances and new business requirements, allowing you to efficiently create a contract management flow that suits your company.

Maintaining and strengthening security

In electronic contracts, it is important not only to meet legal requirements but also to strengthen security to prevent unauthorized access and tampering. When integrating with APIs, by establishing a system for authentication using API keys and tokens, and for recording and auditing operation logs, it is possible to maintain the speed and convenience of electronic contracts while minimizing security risks.

Examples of using electronic contracts and API integration

Let's look at some specific examples to see what kind of systems can actually be linked to gain benefits.

When combined with a variety of business systems, electronic contracts can have an effect that goes beyond simply digitizing documents. Various benefits can be obtained for each linked system or service, such as automating order processing, improving document management efficiency, and speeding up accounting processing. When combined with customer management or financial management, a particular advantage is that it makes it easier to grasp important business indicators based on contract information.

In addition to the examples below, there is also room for consideration of linking with project management tools, electronic catalogs, e-commerce platforms, etc. You can achieve the most effective efficiency by identifying your company's business flow and promoting electronic contracts and API integration, focusing on the parts that take time or require a lot of manual work.

Integration with CRM and SFA

API integration allows you to create a system where a contract is automatically generated and a request for an electronic signature is sent at the same time as a sales representative registers project information in CRM or SFA. When a deal is concluded, the contract status is automatically updated, allowing for smooth centralized management of customer and contract management. This can significantly reduce the lead time until contract conclusion and is expected to have the effect of accelerating order-taking activities.

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⇒ Electronic signature | Glossary

Linking with document management and storage systems

Another popular use case is the integration of automatically uploading contracts to cloud storage and enhancing folder management and search functions. This allows for centralized management of contract versioning and update history, and everything, including company-wide sharing and access permission control, is completed online. The benefits are that you no longer have to search for paper contracts and can search and reference documents in real time.

Integration with accounting and invoicing systems

Automatically issuing invoices based on contract information and linking payment data will greatly improve the efficiency of accounting work. By automatically linking the amounts and payment schedules reflected in contracts to the accounting system, errors caused by duplicate input will be reduced and sales and expenses can be grasped in a timely manner. As a result, it will contribute to reducing management costs and speeding up management decisions.

Linking with HR management systems

Electronic contracts and API integration are also extremely useful for human resources departments, which generate numerous documents such as employment contracts and employee consent forms. Establishing a workflow that automatically retrieves employee personal information from the human resources management system and creates and sends employment contracts allows for smooth, integrated processing of everything from job offers to post-employment procedures. This ultimately leads to more efficient communication within an organization and improved information consistency.

Electronic contract integration with iPaaS HULFT Square

HULFT Square allows you to build a GUI-based data integration flow that utilizes APIs. Secure integration allows you to implement any process, including incorporating error handling, and supports further streamlining of electronic contract processing.

Points to note when integrating with APIs and things to check before implementation

While API integration has many advantages, there are also some points to be aware of when implementing it.

While API integration promises significant efficiency gains, security management must be strengthened when it is implemented. Authentication methods, access permissions, log handling policies, and other aspects must be clearly designed, and a system must be put in place to prevent unauthorized access from both inside and outside the company and information leaks. It's also important to consider implementation costs and development man-hours in advance, and strike a balance with long-term operational benefits.

In addition, because electronic contracts require legal effect and identity verification, it is necessary to confirm whether the APIs provided by the service and your company's operational flow comply with legal regulations. By taking these points into consideration when planning and implementing the implementation, you will be able to create a safe and efficient environment that makes the most of API integration.

Permission settings and security measures

With API integration, incorrect permission settings pose a major risk of information leaks and unauthorized operations. It is important to enhance security by introducing multiple mechanisms, such as finely dividing permissions based on roles and combining IP address restrictions and multi-factor authentication. Also, by regularly monitoring login and operation histories, you should establish a system that can detect abnormal access early.

Cost of use and need for expertise

To fully utilize API integration functions, specialized system development expertise is often required. If your company does not have the engineering resources, you will need to consider the cost of outsourcing to an external partner. Furthermore, if there are multiple integrated systems, maintenance costs and the establishment of a maintenance system are also important factors to consider. You should weigh these costs against the benefits to be gained and determine the appropriate scale of implementation and scope of integration. Another option is to use an integration service like HULFT Square, which allows you to build processes while reducing development and maintenance costs.

Legal Risk and Literacy

Electronic contracts have the same legal effect as paper contracts, but regulations may differ depending on the country or region. If the contracting parties include overseas bases, it is important to check international regulations and electronic signature requirements. Furthermore, if personnel and users do not have basic knowledge of electronic contracts and API integration, it can lead to operational errors and problems, so it is essential to provide in-house training and establish guidelines.

summary

Introducing electronic contracts using API integration is a major step in accelerating the digitalization of your business. Choose a service with efficiency and risk management in mind, and build the optimal workflow for your business.

Combining electronic contracts with API integration makes it possible to automate and centralize the entire contract-related process between systems. This goes beyond simply going paperless; it also leads to a variety of operational efficiencies, such as information sharing between departments and strengthening audit functions. When implementing this system, it is necessary to select the optimal service and implementation method to suit your company's needs, while carefully considering security, legal requirements, and costs.

As the wave of remote work and digitalization continues to spread, it seems that the shift to online contract work is an inevitable trend. By utilizing API integration, you can simultaneously achieve greater efficiency and accuracy in contract work, regardless of the size or industry of your organization. While reexamining your company's business processes, create a workflow that makes full use of electronic contracts and APIs, and build a flexible and robust business foundation.

The person who wrote the article

Affiliation: Marketing Department

Yoko Tsushima

After joining Appresso (now Saison Technology), he worked as a technical sales representative, in charge of technical sales, training, and technical events. After leaving the company to return to his hometown, he rejoined the company in April 2023 under the remote work system. After gaining experience in the product planning department, he is currently in charge of creating digital content in the marketing department.
(Affiliations are as of the time of publication)

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