ap invoice processing for the smb & mid-market at #abbyysummit16
TRANSCRIPT
The New Golden Age of Invoice Automation
© ABBYY Confidential
Daneen StorcSr. Product Marketing [email protected]
© ABBYY Confidential
The New Golden Age
Giants ill-suited to meet the needs of the specialty market
Technological advancements make it accessible
Disruption from consolidation
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© ABBYY Confidential
The New Golden Age
Giants ill-suited to meet the needs of the specialty market
Technological advancements make it accessible
Disruption from consolidation
3
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Brief History of Invoice Automation
1998
• Early Adoption by Best in Class Enterprises
2006
• Golden Age for Enterprise
2016
• New Golden Age for Middle Market
2014
• Enterprise Market begins to Mature
Agenda
The Accounts Payable Invoice Automation Market
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The North American Middle Market
Seizing the Opportunity
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The New Golden Age of Invoice Automation
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The Accounts Payable Invoice Automation (APIA) Market
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The APIA Market
$3.7 billion > 11.6% CAGR
Procure-to-Pay Suites
Gartner IT Clock for B2B Solutions, 2015
Financial Management Applications
Gartner IT Clock for Financial Management Applications, 2016
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The APIA Market
$830 million > 9%
Forrester Research, Vendor Landscape: ePurchasing Software, 2015 To 2016
ePurchasing Software
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The APIA Market
$1.9 billion > 14% CAGR PayStream Advisors, 2015
AP Automation
$960 million > 5.4% CAGR
Harvey Spencer Associates, The 2016-17 Worldwide Market for Document Capture Software, 2016
Capture for Accounting
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An Opportunity Accounting applications are far from saturated and there is still growth in Accounting that is slightly above capture market growth
.…growth will come from mid-market company adoption of accounts receivable and accounts payable solutions
Buyers with revenue between $500 million and $2 billion are later adopters for P2P suites;
most are greenfield opportunities
No single vendor dominates the ePurchasing market, leaving buyers with many choices among vendors that are hungry for business.
Forrester ePurchasing Sotware, 2015 To 2016
Gartner Magic Quadrant for P2P Suites, 2016We expect to see high-end capture functionality democratized over the coming
years, enabling midmarket customers to reap the benefits from capture that have required large enterprise budgets in the past.
Smaller buyers have less volume to deliver cost savings based on compliance to negotiated contracts, but still
benefit strongly from getting rid of paper and improving P2P process cycle times
IDC Worldwide Enterprise Capture Software Forecast, 2016 To 2020
HSA The 2016-17 Worldwide Market for Document Capture Software
HSA The 2016-17 Worldwide Market for Document Capture Software
Gartner Magic Quadrant for P2P Suites, 2016
[The market] for standalone capture continues to be a viable opportunity. IDC Enterprise Capture Vendor Landscape, 2016
The North American Middle Market
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The Market that MovesAnnual Revenue
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Revenue Growth > 7.2%
Employee Growth > 4.4%
Plans to Invest > 62%
$10MM - $1BNumber of Businesses
200,000Contribution to Global Economy
Third Largest© ABBYY Confidential
National Center for the Middle Market, Middle Market Indicator, Q2 2016
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Ready to InvestRelative to Other Business Priorities Change in Spending Allocation
National Center for the Middle Market, How Digital Are You?, 2015
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The Middle Market Warms Up to APIA Becoming educated about the benefits of
automating invoice processing
Organization may be growing which forces finance/AP leaders to make the unappealing decision to hire additional employees
May have pressure from competition
Increased complexity of AP processes
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Invoice Automation By Company Size
SMB
Midsize
Enterprise
0% 10% 20% 30% 40% 50% 60%
Percentage of companies that have digitized and automated invoice processing
AIIM, 2016
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Average Invoice VolumesAverage Monthly Invoice Volume
Percentage Across All Sites
0-249 16.3%
250-499 11.9%
500-999 14.7%
1,000-4,999 21.4%
5,000-9,999 14.7%
10,000-19,999 8.3%
20,000-34,999 2.4%
35,000+ 10.3%
Seventy-nine percent (79%) of organizations process less than 10,000 invoices per month
Institute of Finance & Management, 2016
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Seizing the Blue
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APIA Objectives of the Middle Market
1. Better Control of the Process
2. Shorter Cycle Times
3. Reduce Costs
4. Prevent Additional Costs
5. Reduce Errors
18AIIM, 2016
FCI Midsize Market Momentum Company Partner Situation Why we won
60K invoices Growing business Complex invoices Microsoft Access
DBMS
Ability to handle invoice complexity Greater Value
40K invoices Growing business Home grown
accounting system
Responsiveness Accuracy and flexibility of technology Part of larger solution with DocuWare Professional Server Greater Value
48K invoices Growing business Sage 100
Responsiveness Integration with Sage 100 Part of larger solution with SharePoint Online Scalability, breadth and accuracy of technology Greater Value
100K invoices Growing business Custom ERP
Easy to get up and running, and to maintain Robust solution Azure cloud
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ABBYY/Valued Partner Middle Market Differentiation
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Easy to deal with
Ease of deployment/TCO
Robust technology Accurate Scalable Breadth Customizable Cloud option
Greater value
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Seizing Wins in the Middle Market
Engage customers before they have defined their requirements
Lead generation investment by ABBYY
Make automation look simple, smart, safe, secure and scalable
Product demo by ABBYY Sales enablement by ABBYY
Help the inner-champion gain executive buy-in
Illustrate how ROI can be achieved even with low invoice volume
ROI calculator and case studies by ABBYY
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A Note About ERPs
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Thank You!