Introduction When automating Purchase-to-Pay (P2P) processes, many organizations implement electronic procurement, invoice management, and electronic payment tools. This streamlines the P2P cycle, reduces processing costs, and improves company control over spend. One of the most advanced features of today’s advanced P2P solutions is their mobile capability, which allows back-office professionals to access business software tools from anywhere, at any time. Using mobile technology for P2P activities is a best practice for increasing efficiency, and a strategic tool for organizations that want to improve employee productivity in back-office processes.
However, concerns about the security of mobile technology are becoming increasingly relevant as organizations rely more heavily on cloud-based solutions, and allowing employees to access company data via their personal devices can be problematic. When faced with the potential challenges of mobile solutions, some organizations choose to forego using the tool altogether.
Today’s mobile P2P technology providers work to create more flexible back-office processes without sacrificing company security or employee efficiency. These solutions can be used both to modernize a workforce more comfortable with manual methods, and to tighten up lax company policies around the use of mobile devices for business activity. This report explores the benefits of P2P solutions for improving back-office processes, as well as the strategic value of leveraging a solution with advanced mobile technology. It also highlights the ways in which mobile applications are deployed, and the different methods that solution providers use to ensure security and control over company data.
Today’s Mobile Workforce In order to gauge the use of mobile devices for business activity in the current North American B2B environment, PayStream Advisors conducted a survey of over 200 back-office employees from organizations across several industries and market segments. When asked to describe the nature of their company’s mobile workforce, most organizations described the use of mobile devices as moderate, see Figure 1.
Over one-third of organizations report having a highly mobile workforce. According to a 2016 Business Travel Trends survey conducted by the Travel Leaders Group, business travel will increase in the coming years, as survey results show that most North American businesses expect their business travel to either remain the same or increase in 2016.1 With the rise in business travel, the use of mobile devices for business activity will also grow.
Mobile devices are not used solely by travelling employees, but are becoming increasingly important for employees in all roles. The International Data Corporation (IDC) predicts that the U.S. mobile worker population will grow at a steady rate over the next five years, increasing from 96.2 million in 2015 to 105.4 million mobile workers in 2020.2 By that time, IDC forecasts that mobile workers will account for nearly three quarters (72.3 percent) of the total U.S. workforce.
Figure 1
Most Organizations Have a Moderately Mobile Workforce
“Which best describes the nature of your mobile
workforce?”
We have a moderately mobileworkforce, some of our employees travel
extensively, but they are still a minority
We have a significant mobile workforcea significant portion of our employees
travel most of the time to conduct business
We have a farily stationary workforce,the large majority of employees
rarely travel for business
44%
41%
16%
1 Travel Leaders Group. “Business Travel Poised for Growth in 2016 According to Latest ‘Travel Leaders Group’ Survey.” News release, December 22, 2015. Travel Leaders Group.2 International Data Corporation. “IDC Forecasts U.S. Mobile Worker Population to Surpass 105 Million by 2020.” News release, June 23, 2015. IDC.
Several factors contribute to increases in mobile activity, including a push for greater employee productivity, more remote employees, and large numbers of millennials entering the workforce. However, increasing mobility in the workforce is not due only to necessity and cultural progression. Organizations’ executives are promoting mobile device use for work-related activity both in and out of the office because it improves workplace relationships and encourages knowledge sharing and employee autonomy—all of which also result in increased efficiency.3 In addition, when using a Bring Your Own Device (BYOD) strategy, offices save money on purchasing and maintaining hardware.
PayStream has found that Purchase-to-Pay departments are also adopting a mobile strategy to improve process efficiency. When asked which business functions they perform on their mobile devices, most respondents reported using them for expense reporting functions, purchasing, and invoice approval, see Figure 2. However, over one-third of respondents reported that they do not use their mobile device for any P2P activities.
3 Pitichat, Thiraput. “Smartphones in the Workplace: Changing Organizational Behavior, Transforming the Future.” Lux 3, no. 1 (2013): 1-10.
I do not use my phone for any of these busines activities
Expense reporting
42%
15%
15%Expense report approval
Purchasing
Invoice approval
Payment approval
Invoice routing
10%
9%
5%
4%
Figure 2
Organizations Use Mobile Devices for
Expense Reporting, Purchasing, and Invoice
Approvals
“Do you perform any of the following functions via your
PayStream attributes the low use of mobile solutions in the surveyed organizations partially to the fact that most organizations in North America are not using P2P automation at all. Only 34 percent of organizations are using eProcurement software, 41 percent are using invoice workflow automation, 22 percent are using eInvoicing, and most businesses (63 percent) are using checks for over 50 percent of their payments. When organizations do move toward P2P automation, mobility is often not their top consideration; when asked about their top improvement goals in 2015, most organizations reported mobility as the least important concern, see Figure 3.
PayStream Advisors believes this low focus on mobility is due to the conception that mobile business applications do not greatly increase P2P efficiency. However, organizations should not consider mobile applications as an add-on feature of procurement, invoice automation, and payments software. Instead, organizations should proactively consider P2P solutions’ mobile offerings when selecting a system. This will combine P2P automation’s process improvement and cost reduction with the collaboration and flexibility offered with a mobile workforce.
P2P Applications The following items outline the different features of today’s P2P applications, and how P2P departments can use these solutions.
Application Deployment
Mobile solutions come in two forms: native applications and responsive web design (RWD). While there are advantages to each type, there are also differences in accessibility and security.
Native apps offer downloadable software that is directly accessed from the user’s mobile phone or tablet. Solutions offered via a native application can be accessed without an internet connection, allowing the user to add information into the system even when they are offline. Native apps must be updated regularly so that the technology and security features are up-to-date and effective, and the app must be installed on every device an employee uses for work activities.
Responsive web design applications are hosted in the cloud and are built to deliver a single application that offers a user interface that is scalable across any device. As travelling employees work across varying environments and multiple electronic devices, RWD allows them to move from smartphone to tablet to laptop—all without sacrificing speed or efficiency. RWD apps require an internet connection, but when online, they are always connected to the parent system and its real-time, updated data and features. Because users are accessing the main system instead of a modified mobile version, RWD apps do not require any additional user training.
Each of the two delivery methods is more suitable for some organizations’ business structures and culture than others, and the type that a provider offers may affect its appeal to a business. Depending on the P2P software, some native applications do not give the user complete access to all of the solution’s features. For example, procurement software often provides companies with access to catalogs containing large amounts of real-time purchasing data, such as catalog item details, vendor contracts, or purchase order statuses. In most cases, the user must log on to the main system to access this part of the procurement solution, even if the provider offers a native application. In this situation, it is most beneficial when the provider offers both kinds of application to ensure that the user has consistent access to the system.
Security controls are a primary focus for P2P mobile solution providers, as they realize the risk of enabling an employee to access company information from a personal device. Native applications are more likely to raise security concerns regarding employees’ personal devices and company data, as a mobile device is subject to the risk of loss, theft, or compromise, and data in an installed app can be easier to access by an outside party. With responsive design, sensitive data remains on secure servers in the cloud, leaving the responsibility of security and control to providers and their advanced firewalls. However, providers of native applications have implemented controls to combat security risks, including passwords, SSL encryption, and timeout sessions. In addition, most providers do not store authentication information or company credit card information on users’ phones, and the majority of mobile apps are PCI-compliant. Providers also prepare for the possibilities of a lost device or an employee leaving the company by implementing deactivation settings, which allow the employer to automatically remove access to the solution—even from a native application.
Even with the extensive security measures offered by solution providers, it is important for organizations to establish internal controls regarding employees’ mobile device use. According to survey results, most organizations do not enforce mobile security controls, see Figure 4.
» only allowing the user to access the system through a corporate security server.
» requiring the user to set up email through company-installed software, and to use a six-digit security code when logging into a mobile device.
» giving IT complete access to personal phones, which can be wiped by the company.
» limited user access based on hierarchy, role, etc.
» the use of a specialized third-party security service.
» requiring the user to sign security policy agreements
PayStream encourages organizations that are not using security controls to consult with both their potential P2P solution provider and a mobile security expert before implementing a company-wide mobile initiative.
Purchase-to-Pay automation greatly increases cost control and savings, reduces processing times, improves supplier relationships, and builds competitive advantage. When an organization leverages these solutions with mobile applications, it increases the versatility, productivity, and collaboration of the workforce—both in and out of the office. These solutions feature unique features for each of the components of P2P automation shown in Figure 5.
P2P
PROCUREMENT
ACCOUNTS PAYABLE
SUPPLIERMANAGEMENT
SPEND MANAGEMENT
ORDERMANAGEMENT
EPAYMENTS
One of the greatest benefits of mobile applications is the speed they bring to approval processes, including for requisitions, purchase orders, invoices, and payments. Most solutions allow users to approve requests directly from their phones through the native application or an email client. In addition, many solutions also feature the ability to take pictures of invoices, receipts, and other important business documents and upload them directly to the P2P solution. Some solutions even include built-in Optical Character Recognition (OCR) software that extracts data from these documents. Other mobile P2P features may include:
» eProcurement & Order Management – The main features in procurement technology include requisition creation and workflow, in-house and punch-out catalogs featuring product information
from thousands of suppliers, PO creation, and an order management interface that allows for full visibility into all order activity. eProcurement solutions often support PO flip to invoice and integration with AP as well. Mobile applications provide real-time access to vendor information and catalogs, allow managers to quickly approve requisitions, streamline purchase order creation, and give real-time access to order status, from shipment to receiving and reconciliation.
» Accounts Payable and Electronic Payments – Most eProcurement solutions integrate with AP software, facilitating seamless movement from requisition to payment. AP automation involves paperless invoice processing through electronic invoicing and/or OCR data capture, invoice matching and exception management, and approval workflow capabilities. Many AP solutions also offer in-house payment capabilities or directly integrate with leading payment solution providers. Leading electronic payments (ePayments) strategies include ACH, wire, and commercial card payments. Among other features, mobile solutions allow users to scan and upload invoices, approve invoices, check payment status, and communicate directly with suppliers on invoice and payment discrepancies.
» Supplier Management – Most solutions offer some level of supplier management, either through multi-level supplier self-service platforms or a searchable supplier directory. Other features include supplier data management, supplier risk assessment, and supplier analytics and reporting tools for insights and auditing. Many providers offer mobile access to these tools, as well as a separate supplier-side application for their clients’ supplier base.
» Spend Management – Reporting and analytics tools allow purchasing, AP, and legal departments to pinpoint inefficient spend activity and identify areas for improvement. Features include out-of-the-box and/or ad-hoc reporting, interactive reporting dashboards with drill-down capabilities, integration with Excel and other analytics tools, and industry benchmarking for data analysis. Mobile applications enable users to access simplified analytics dashboards so that they can gain insights on spend and process data on the go.
ConclusionAs organization search for a P2P solution, they should not overlook the increasing relevance of mobile P2P applications. The capabilities of these applications are very important for today’s global businesses and travelling professionals, especially as workforces become more mobile and reliant upon advanced mobile technology. Mobile P2P solutions are valuable and strategic tools for bringing an organization to the next level of efficiency and competitive advantage. The following profile details the offerings of a P2P software provider and its advanced mobile applications.
SciQuest SciQuest is a provider of cloud-based business process solutions that enable organizations to streamline their Source-to-Settle and Purchase-to-Pay lifecycles, capturing all spend in one platform. SciQuest’s Spend Management Suite covers spend analysis, supplier management, sourcing, contracting, eProcurement, inventory management, and accounts payable automation. SciQuest’s solutions can address any vertical market by offering flexible industry-specific functionality, content, and supplier connections. SciQuest leverages two decades of procurement solution experience to deliver value beyond savings in the form of streamlined workflows, transformed business processes, and better connected organizations.
Founded 1995Headquarters Research Triangle Park, NCOther Locations Pittsburgh, PA; Edmonton, AB; London,
England; Hamburg, GermanyNumber of Employees 500+Number of Customers 550+Target Verticals Retail, Financial Services, Manufacturing,
Petroleum, Pharmaceuticals, Utilities, Higher Education, Healthcare, and others
of the Year; 2015 Spend Matters 50 Providers to Know; 2015 Inbound Logistics Top 100 IT Provider; 2016 World Procurement Awards Finalist
Purchase to Pay and Mobile Capability
SciQuest’s P2P solutions operate on one platform, providing a common user experience and a shared data model that eliminates up to 90 percent of data entry errors. This unified platform helps increase user adoption rates, the amount of spend under management, and purchasing compliance among clients’ internal teams.
The SciQuest Mobile App uses both native code and responsive application technologies. In addition to the shopping functionality, management users can perform approval actions such as reviewing contracts, supplier applications, requisitions, invoices, and purchase
orders. Any required documents are sent to the device and can be reviewed within the app. The app uses push notifications to alert management to impending approval needs. In addition, the RWD app also allows users to access supplier catalog interfaces and other procurement features via web browsers on any device.
SciQuest Mobile App users get a full shopping experience with the premium shopping and approval features of the web-based Spend Director. They also receive full access to hosted catalog items, non-catalog contract items and internal catalog items, and a fully functional catalog search with on-screen vendor comparison. Users can access real-time pricing with Mobile LivePrice, and receive important time-saving features, such as draft carts, a favorites folder, and requisitioner assignment. The solution’s Mobile Budget Check allows purchasers to ensure that they have sufficient budget prior to placing an order, and its Mobile Budget Impact delivers pre- and post-order reports for a specific orders.
SciQuest uses an OAuth2 token exchange to register users’ mobile devices. In order to maintain security, all communication is SSL-encrypted and the app is PCI compliant. Authentication and credit card information is never exposed or stored on the mobile device. Users must enter a password to access the app, and timeout sessions set on the desktop are respected in the mobile app.
Since the app mirrors all critical procurement features, there is no need for additional user training for mobile users. Major software updates occur three times per year, synchronized with SciQuest’s web solution updates. Minor updates are pushed to the App Store(s) as they become ready for customer use.
Implementation and Pricing
The mobile application requires no extra installation or training time during solution enablement and implementation. For new customers, typical implementation time is 4 to 12 weeks, depending on the functionality requested. SciQuest delivers standardized training to customers’ internal trainers, who then train their entire user community. SciQuest can deliver additional on-site training as needed.
The SciQuest fee structure is set up with renewable SaaS licenses and initial implementation and integration services. The fee structure allows customers to pay only for the software and services they need. The mobile app is provided free of charge for current SciQuest solution subscribers.
About PayStream AdvisorsPayStream Advisors is a technology research and consulting firm that improves the way companies plan, evaluate, and select emerging technologies to achieve their business objectives. PayStream Advisors assists clients in sorting through the growing complexities of IT applications related to business process automation with the goal of making objective, analytical, and actionable recommendations. Wherever business process automation technology is an issue, PayStream Advisors is there to help. For more information, call (704) 523-7357 or visit us on the web at www.paystreamadvisors.com
