Pay stream and basware einvoicing trends and truths 12.11.14 final

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.

Henry Ijams - Managing Director PayStream Advisorshenry.ijams@paystreamadvisors.com

Questions

22

?

Thank Youfor spending your time with us.

www.paystreamadvisors.com