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The state and future of international business process automation Copenhagen, April 2017 Bruno Koch
The state and future of
international business
process automation
Copenhagen, April 2017
Bruno Koch
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Why digitalization/automation is a hot
topic right now
page 2
• Government mandates for real-time e-reporting, e-invoicing
and to some extend e-procurement (EU, US)
• …and in the more liberal world
DKK, $, €
Time: DSO, exploit early payment discounts
Quality improvement
Transparency, Cash Management
Availability of emerging technologies
Increasing maturity of the market
Increase business agility
Improve tax compliance23.05.2017
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International e-invoicing statusB2B, B2G, G2B and B2C
page 3
400 billion bills/invoices
globally (paper & electronic)
About 36 billion paperless
(2/3rd of it B2B, B2G & G2B)
Minor proportion =
true e-invoicing
Annual market growth 10-35%
depending on country
Low hanging fruits harvested
Main strategy was to increase
the proportion of e-invoices
23.05.2017
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Mandates for clearance model
page 423.05.2017
Supplier Buyer
Tax Authorities
Solution/Service Provider
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Two different implementation strategies
page 523.05.2017
What’s the preference
and strategy of your
organisation?
Latin America, Asia,
most parts of Europe
Anglo-Saxon countries,
some Nordics, public
sector in Portugal,
vertical industries,
multinationals
© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 6
2%
7%
2%
2%
5%
64%
79%
4%
9%
1%
10%
8%
62%
85%
11%
19%
5%
28%
5%
53%
88%
Others
Fax
DE-Mail/E-…
EDI
Via Website
Paper
Large Business
Mid-sized Business
Small Business 1%
22%
9%
0%
45%
92%
97%
3%
27%
6%
9%
32%
81%
93%
5%
45%
8%
38%
28%
78%
93%
Others
Fax
DE-Mail/E-…
EDI
Website…
Paper
Invoice exchange methods 2015 (Focus Germany)
Issue Receive
Source: ibi research, 2015, Link (Values of comparable survey in 2011)
(91%)(98%)(91%)
(20%)(23%)(48%)
(26%)(10%)(1%)
(100%)(99%)(99%)
(47%)(74%)(83%)
(28%)(7%)(0%)
Automation challenges for multinational
businesses (1)
23.05.2017
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Automation challenges for multinational
businesses (2)
page 7
“Main reasons for payment delays by domestic B2B customers”
Exception handlings cost 3-8 times more than processing invoices with
correct content.
Source: Atradius Payment Practices Barometer – November 2014
Incorrect
information on
invoice
Invoice sent to
wrong receiver
(internally)
Americas 26.3% 21.4%
Asia Pacific 25.7% 19.2%
Europe 15.1% 11.6%
23.05.2017
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Automation challenges for multinational
businesses (3)• Fully harmonized processes
• Multiple ERPs
• Maximum requirements due to broad geographic coverage
• Provide and operate everything in-house; operation and archive on soil of country x; archive online access for auditors
• Each country with individual requirements; documentation just for Brazil includes 1300 pages
• Multi-channel & format support
• Divergent message and process requirements
• No tax compliant long-term archive
• Change management
• Act in a tax compliant manner (formal and regarding content)
• No vendor with overall & global offering for multinational businesses
23.05.2017 page 8
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Achieve high proportion, tax compliant &
straight-through invoice processing (1)
page 923.05.2017
0102030405060708090
100
0 1 2 3 4 5 6 7 8 9 10
% E
-In
vo
ices
Year after starting the rollout process
Loop E-Order + E-Invoice
Powerplay
Pressing
Classic approach
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Achieve high proportion, tax compliant &
straight-through invoice processing (2)
page 10
• Convincing/engagement costs per trading partner: EUR 80-
120/supplier and EUR 20-60/customer
10,000 trading partner = EUR 0.2 – 1.2m
…and/or the alternatives
• Issue orders just electronically and require e-invoices
(electronic loop for both messages)
• Push trading partners: e-invoice = default; financial penalties
for resistant businesses as recipient: EUR 5 – 25 per paper
invoice; financial penalties for suppliers: EUR 10 – 20 per
paper invoice
23.05.2017
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Achieve high proportion, tax compliant &
straight-through invoice processing (3)
page 11
• Improve data accuracy and tax compliance
Cleansing & updating/synchronizing of master data
Synchronisation of product data
Validation
• Increase proportion of PO based invoices
• Deploy emerging technologies
• Define O2C and P2P strategy, considering internally
disruptive innovation and externally legal requirements for
e-invoicing & e-reporting
23.05.2017
© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 1223.05.2017
Procure2Pay & subset Purchase2Pay
Procure2Pay
• Identification of Requirement
• Authorization of Purchase Request
• Approval of Purchase Request
• Procurement
• Identification of Suppliers
• Inquiries
• Receipt of the Quotation
• Negotiation
• Selection of the Vendor
• P2P topics in the broader sense
• …and including Purchase2Pay
Purchase2Pay
• Purchase Order
• Purchase Order Acknowledgement
• Advance Shipment Notice
• Goods Receipt
• Invoice
• 3 Way Match
• Payment to Supplier
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Exploit the full saving potential (1)
page 1323.05.2017
Sustaining improvement withmanual paper processing
Digitisation
Automated E-Invoicing
Business Process AutomationDisruptive Innovation
Emerging Technologies
Invoice Processing Costs
De
gre
e o
f A
uto
ma
tio
n
© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 1423.05.2017
• Disruptive innovation
• Emerging next-generation technologies
Cloud Aggregation Platforms, Cloud Service Brokers
Robotic Process Automation, automate 50% of back-
office processes
Machine learning
Advanced Analytics
Exploit the full saving potential (2)
© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.
Future Markets RadarMarket demand & challenges for business networks
page 1523.05.2017
E-Invoicing
© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 1623.05.2017
Questions?
Bruno Koch
www.billentis.com | Twitter | LinkedIn | XING
