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eInvoicing Trends &
Truths
Henry Ijams – Managing Director of PayStream Advisors, Inc.
Bob Cohen – VP of Marketing Basware, Inc
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Webcast Agenda• PayStream Advisors Overview
• Presenters Intro
• Electronic Invoicing 101
• Domestic & Global Trends
• Lessons from the Innovators
• Planning for Adoption
• Q&A
Who is PayStream
Advisors?
Research and Advisory Services for
Financial Operations:
- E-Invoicing- AP Automation- P2P Peer
Benchmarking - Electronic Payments- T&E Expense
Management
- Receivables Document Management
- eBilling- Treasury Management- PayStream P2P
Summit
Some of PayStream Advisors
Current Clients Include:
Today’s PresentersHenry IjamsMr. Ijams' 25 years of experience focuses on trends and technologies in financial operations automation including strategies regarding the automation and benchmarking of Purchasing and Payables processes.
Through PayStream Advisors, Mr. Ijams consults with domestic and international organizations that want to take advantage of leading practices and automation solutions.
Bob CohenBob Cohen is Vice President of North American Marketing and is responsible for Basware’s North American press and analyst relations.
Because of his extensive work in purchase to pay for the past 10 years Bob has become an expert in global eInvoicing. Bob received his Bachelor of Science degree in Marketing from Bryant University and his Masters of Business Administration in Finance from the University of Connecticut.
What is a eInvoice?
What is an Electronic
Invoice?
An electronic invoice is an invoice
that moves from the sellers billing
system to the buyer’s Account
Payable (AP) system without any
data entry
True
einvoice
Not
eInvoice• Structured invoice
data issued in
Electronic Data
Interchange (EDI) or
XML formats
• Structured invoice
data issued using
standard Internet-
based web forms
• Paper invoices sent
via fax machines
• Scanned paper
invoices
• Invoices issued in
PDF or Word
formats
Poll Question #1
What percent of your invoice are truly electronic?
< 10 Percent11 – 40 Percent40 – 60 Percent
More than 60 Percent
Basware in NumbersScale, performance and established leadership credentials
on an international scale.
OurHistory
Founded 1985
Publicly listed 2000
Ranked #1/#2 by analysts across P2P and e-invoicing
Offices in Europe, North America
CorporatePerformance
Net sales > $160min 2013
Millions of business usersin 1 000 000 organizations
in >100 countries
Basware Commerce Network
>80m e-invoices/POS
$500b total annualspend across network
170+ partners
>60 e-invoice formats
Basware Commerce Network
>80m eInvoices/POS
$500b total annual spend across
Network
170+ Partners
True eInvoice
• Structured invoice data issued in
Electronic Data Interchange (EDI) or XML
formats
• Structured invoice data issued
using standard Internet-based web forms
What is Structured Data?ISA*00* *00* *01*043645501 *01*67607572 *141121*1800*U*00401*123456789*0*P*>~
GS*IN*043645501*67607572*20141121*1800*18*X*004010~
ST*810*449229013~
BIG*20141107*1430676*****26~
REF*ZA*HECM~
REF*IID*021144492292014111802080400013~
REF*8N*3600~
N1*BT*SANTA ROSA MEMORIAL HOSPITAL*91*3600~
N1*SE*PROTOCOL AGENCY INC*91*V037481~
N3*27001 AGOURA RD STE 210~
N4*CALABASAS*CA*91301~
ITD~
Unstructured invoice data – Sample is EDIStructured invoice data – Sample XML Invoice
Why is eInvoicing
Growing Globally?
Broad Electronic Invoice
Trends
• Finance is getting out of the paper business
– Continued drive for paperless processing is pushing more
managed services
– What is your organizations competency?
• Touchless processing is driving Electronic
– Electronic processing to optimize invoice management
• 2015 is the year of collaborative commerce
– Suppliers want to submit invoices electronically
– 2015 will be about collaboration and self-service
Business Benefitsof eInvoicing going global.
For Buyers For Suppliers For Managers
Reduced Cost Faster payments Improved visibility
Increased Accuracy Reduced costs Optimized working capital
Increased AP Productivity Fewer rejected invoices Improved compliance
Faster processing and payment cycles
Increased productivityImprove supplier/customer
relationships
Focus in higher value activities Enhanced accounts reconciliation Enhanced IT system optimization
Enhanced accounts reconciliation Improved customer relationships Meeting green initiatives
Improved cash management Improved cash management
Reduced fraud, duplicates and late payment fees
Alternative finance options
Improved dispute handling
Improved supplier relationships
Optimized Community Management
In addition to cost savings, the ability to automate
invoice processes, and integrate with other business
systems provides business efficiency and revenue
generating opportunities.
Top AP Benchmarking
Items
Average processing cost per
invoice (combination of paper and electronic)
$6.70
$15.00
$2.36
Innovators Mainstream Laggards
Tax Compliance BenefitseInvoicing going global.
• Governments receive as much as
30% of their Gross Domestic Product
(GDP) from VAT and sales tax
revenues.
• Government controlled systems in
Latin America
• EU has Explicit Guidelines
• Each country has its unique set of
regulations and maintaining
regulatory compliance on an ongoing
basis is one of the key challenges for
invoicing.
Tax Compliance Benefits (cont)
• Asian and Latin America (and increasingly
Southern and Eastern European countries) see
benefits of eInvoicing mandates
• Country-wide projects are being launched by
the tax authorities with the aim of reducing tax
evasion
• Suppliers and buyers have to send either
invoice data or at least reports in electronic
format for real-time validation and auditing
eInvoicing Growing Globally: Global AdoptionMarket maturity for eInvoices
e-Invoicing Growing Globally Global Adoption
• 500 billion invoices/bills globally
• 40 billion exchanged paperless (Latam 26 billion, NA 7 billion, Europe 6 billion)
Growth rates are impressive but potential is still tremendous
How Mature is eInvoicing?
11-60%
>60%
<10%
Stage 1 Stage 2 Stage 3
Maturity Stage 4
• No Data Keying
• Small Processing Staff
• Touchless Processing
• More then 60 percent of invoices are electronic
• Company goals are for 90+ percent electronic
Network vs. Portal
• PayStream Definition: A supplier portal is a
collaborative website that provides a single-
point access for suppliers to view and exchange
information such as invoices
• Network: Buyer/Supplier Networks connect
many buyers with many suppliers.
eInvoice Adoption
Supplier Adoption Strategy
Large Buyer
Small
Accounts Payable
Accounts Receivable
Large Supplier
Small
Who has the influence?
Goal: Make it easy
and desirable to use
electronic invoices.
Strategy:
Build campaigns to
meet the different
needs of your
diverse trading
partners
Mid Size
Mid Size
Strategy #2
Strategy #1
Audience Poll Question #2
What’s holding you back
from electronic invoicing?
- Nothing, we’re moving forward
- Lack of executive sponsorship/Not a top priority
- Limited Business Case/ROI
- Lack of IT Resources/ERP Upgrade
What are the Innovators
Doing?
Common Success Factors in
eInvoice Innovators
1. Long term paperless goals
2. Supplier engagement
strategy
3. Metrics to define success
4. Enabled by service partners,
not just technology solutions
Audience Poll Question #3
What is your focus for
2015?- Research eInvoicing
- Establish eInvoicing Project
- Expand existing eInvoicing program
- Replace an existing eInvoicing program
Innovation driven by the
pursuit of perfection
What is Perfect?
Perfect [adj., n. pur-fikt; v. per-fekt]
Definition: Entirely without any flaws, defects, or
shortcomings
2020 is about Perfect
Processing
1. Touchless Transactions
2. “First Pass” Processing
3. Stakeholder Collaboration
The Basware Commerce Network
The world’s largest open commerce network connecting buyers and suppliers,
improving relationships and ultimately enabling the flow of commerce.
> 1.2m end-users > 1m buyers & suppliers
170 interoperability partners
> 80m e-invoicesVAT compliance in
> 50 countries
> 60 e-invoice formats supported
> $500bn transactions
Users in >100 countries
How do I Get Started Today?
Document the metrics of invoicing• How it your process work today?
• What is your cost? Are you going to remain compliant with
government regulations?
• What should you do to improve the process?
Analyze the OptionsBuild the Business
CaseEstablish Long Term
Goals
Quick Tips to Stay in the
Loop
Tools and Education
• Stay tuned for PayStream’s Global Electronic Invoicing Trends Report
• Take advantage of complementary resources such as PayStream’s Cost Per Invoice Calculator
• Utilize PayStream’s Business Case Builder to get your project moving
• Get involved! PayStream’s 2015 INNOVATE Conference is September 13-16 in New Orleans.
Thank Youfor spending your time with us.
www.paystreamadvisors.com