state and future of international business process automation · exploit the full saving potential...

The state and future of

international business

process automation

Copenhagen, April 2017

Bruno Koch

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

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


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


Mandates for clearance model

page 423.05.2017

Supplier Buyer

Tax Authorities

Solution/Service Provider


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

E-Mail

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…

E-Mail

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

http://www.elektronische-rechnungsabwicklung.de/



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



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


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




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




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


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


• 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)


Future Markets RadarMarket demand & challenges for business networks

page 1523.05.2017

E-Invoicing


Questions?

Bruno Koch

www.billentis.com | Twitter | LinkedIn | XING

http://www.billentis.com/

http://twitter.com/kochbillentis

http://www.linkedin.com/groups/ERechnung-elektronische-Rechnungsverarbeitung-4419364?home=&gid=4419364&trk=anet_ug_hm

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state and future of international business process automation · exploit the full saving potential...

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