The Future of Accounts Payable

Transcription

1 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas The Future of Accounts Payable Presented by: Mark Brousseau

2 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas Accounts Payable Automation Solutions Transforming organizations through Digitization, Leading Technology, and Experience. Expertise in BOTH Digital Imaging and Business Process Automation

3 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas

4 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas About the Survey Online survey conducted during Spring 2017 Only IOFM AP & P2P Conference registrants were invited to participate in the survey 181 respondents All industries represented All revenue segments represented All respondents received an incentive

5 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas The Future of Accounts Payable WHERE WE STAND

6 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas

7 AP Departments are Investing in Process Standardization & Automation No Investments 13.1% Compliance and Security 45.7% Finance Talent 20.0% Process Standardization 61.1% Innovation 24.0% Automation 59.4% Source: IOFM Future of Accounts Payable Survey

8 3/4 of AP Departments are Moving Towards Becoming a Modern Finance Organization Little Progress 17.1% No Progress 4.6% Significant Progress 28% Slight Progress 50.3% Source: IOFM Future of Accounts Payable Survey

9 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas The Future of Accounts Payable THE FUTURE

10 Respondents Want AP to Become: Simple, Transparent & Seamless None of the above - 2% Simple - 3% Transparent - 6% Seamless - 10% All of the above - 79% Source: IOFM Future of Accounts Payable Survey

11 APAP Will Become More Strategic Slightly lower strategic importance Unchanged we are of low strategic importance Unchanged we are of high strategic importance 0.6% 15.3% 20.4% Slightly higher strategic importance 51.0% Significantly higher strategic importance 12.7% Source: IOFM Future of Accounts Payable Survey

12 AP Will Make Major Progress towards Becoming a Modern Finance Organization Little Progress - 3% No Progress - 0% Slight Progress - 22% Significant progress - 75% Source: IOFM Future of Accounts Payable Survey

13 3/4 Expect Greater Enterprise Demand of Accounts Payable Information 19.7% 1.3% Significantly greater use of accounts payable data across the enterprise 25.5% 25.5% Slightly greater use of accounts payable data across the enterprise 53.5% No change 19.7% 53.5% Slightly less use of accounts payable data across the enterprise 1.3% Source: IOFM Future of Accounts Payable Survey

14 Where AP Will Have Greater Influence None of the above 20.4% Financial data governance 26.1% Financial technology purchase 29.3% Financial decision-making 33.1% Procurement 56.1% Source: IOFM Future of Accounts Payable Survey

15 AP Will Become More Collaborative with Enterprise Functions None of the respondents believe that AP will be less collaborative with other functions. Unchanged - 19% Significantly more collaborative - 29% Slightly more collaborative - 52% Source: IOFM Future of Accounts Payable Survey

16 Cost-Related Metrics Will Become More Important to Senior Mgmt. 51.0% 46.5% 35.7% 36.9% 38.2% 39.5% 39.5% 36.3% 28.0% 20.4% 17.2% 18.5% 22.3% 7.0% 1.3% Source: IOFM Future of Accounts Payable Survey

17 Nearly 60% of AP Departments will Become More Centralized As part of a global shared services organization - 9% As part of a regional shared services organization - 10% In a more centralized environment - 40% Neither more centralized nor decentralized compared to today - 40% In a more decentralized environment - 1% Source: IOFM Future of Accounts Payable Survey

18 Respondents are Split on How AP Complexity Will Change in 5 Years Significantly less complex 14.6% Slightly less complex 31.8% Unchanged 8.3% Slightly more complex 37.6% Significantly more complex 7.6% Source: IOFM Future of Accounts Payable Survey

19 AP Leaders Do Not Foresee A Significant Reduction in Staff Significant decrease more than 10% decrease 10.8% Slight decrease up to 10% decrease 26.1% Unchanged 36.9% Slight decrease up to 10% increase 20.4% Significant increase more than 10% increase 5.7% Source: IOFM Future of Accounts Payable Survey

20 AP Leaders Want their Departments to Become Focused on New Technology Other Please specify 1.9% Data analysis Managing the supplier database Collaborating with other departments Training/upskilling programs Implementation and training on new technology Optimizing the procure-to-pay process 38.9% 29.3% 50.3% 45.2% 60.5% 52.2% Source: IOFM Future of Accounts Payable Survey

21 75.2% Automation Tops the Budgetary Priorities of AP Leaders 38.9% 24.8% 15.9% 50.3% 8.3% 34.4% 24.8% 3.2% Source: IOFM Future of Accounts Payable Survey

22 AP Leaders say they Must Champion their Dept. s Automation Initiatives IT leadership Treasury leadership Finance leadership 4.6% 1.7% 2.3% AP leadership 41.1% Director or vice president of finance Controller CFO 11.4% 16.6% 22.3% Source: IOFM Future of Accounts Payable Survey

23 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas The Future of Accounts Payable 6 CRITICAL TECHNOLOGIES

24 Invoice Processing will be Digitized Supplier/Buyer Network - 5% Cloud - 11% e-invoicing - 17% Mobile - 12% Fraud alerts - 5% Blockchain - 0% Business analytics - 7% Intelligent data capture - 14% Online collaboration - 4% Source-to-Pay automation - 4% Procure-to-Pay automation - 15% Artificial intelligence - 3% Robotics - 2% Contextual exception resolution - 1% Source: IOFM Future of Accounts Payable Survey

25 6 Most Critical Technologies 1. Intelligent invoice capture 2. Cloud & mobile 3. Artificial intelligence & robotics 4. Business analytics 5. Online collaboration 6. Fraud alerts

26 Intelligent Invoice Capture 1. The majority of businesses report that their AP processes are more complex compared to two years ago (IFO) 2. The biggest contributors to AP complexity are related to the way businesses receive and process invoices (IFO): High paper volumes Managing multiple invoice delivery channels Complex supplier invoices 3. A single platform for ingesting and processing invoices in any format, from any source All invoices digitized All processes standardized 4. Eliminates manual processes 5. No need for siloed invoice processing systems 6. Extends the value of supplier portals with robust workflows 7. No impact on suppliers

27 Cloud & Mobile 1. The top barriers to AP automation are (IOFM): Limited capital Limited IT resources Limited dept. resources 2. Remote approvers are a top AP challenge (IFO) 3. Accelerating invoice approval cycles is a top concern for AP (IOFM) 4. Shifts AP from a capital expense to an operating expense 5. Ensures AP always has the newest software features and functionality, with the highest security controls 6. Facilitates PO and invoice approvals on-the-go via mobile device 7. Customer can choose either cloud, on premise or hybrid, depending on the need

28 Majority of Invoices will be Approved via a Mobile Device Less than 11 percent - 17% More than 90 percent - 9% 81 percent to 90 percent - 6% 11 percent to 20 percent - 7% 71 percent to 80 percent - 10% 21 percent to 30 percent - 9% 31 percent to 40 percent - 7% 41 percent to 50 percent - 8% 61 percent to 70 percent - 11% 51 percent to 60 percent - 16% Source: IOFM Future of Accounts Payable Survey

29 Artificial Intelligence & Robotics 1. 27% of an AP department s time is spent on waste and activities that could be automated (PwC) 2. AP staff spend 86% of time on transaction processing (IOFM) 3. Controllers believe that AP is the most labor-intensive F&A function (IOFM) 4. AP operations frequently rely on their prior knowledge and experience (user dependent) 5. Analyzes unstructured and semistructured data Identifies patterns & data sets Automates repetitive manual tasks and aid decision-making Staff only reviews invoice variances and exceptions 6. Documents related to an invoice exception are automatically retrieved in a contextual workspace, regardless of the system in which they reside 7. Staff can focus on value-added tasks such as data analysis

30 Business Analytics 1. 38% of finance orgs are struggling with increased data analysis demands (KPMG) 2. Most AP depts. say demand for real-time visibility is higher than 2 years ago (IFO) 3. Best-in-class organizations spend 20% more time on data analysis than peers (PwC) 4. 60% of finance depts. rely on spreadsheet manipulation for reporting (PwC) degree visibility into transactions Analysis of data inside and outside the ERP Identifies correlations of data and drivers Shows trends, exceptions and predictions 6. Modeling of future performance 7. Building of scenarios 8. Dynamic cash forecasting 9. Configurable, roles-based dashboards 10. Personalized information on any device 11. Real-time visibility into tightly managed and unmanaged project spending 12. AP positioned as a strategic partner

31 Online Collaboration 1. 17% of invoices result in an exception (Ardent Partners) 2. 41% of AP depts. cite resolving exceptions as their top pain point (IOFM) 3. Paper processes make it nearly impossible for stakeholders to collaborate 4. 40% of U.S. B2B commerce is conducted through online channels (Forrester) 5. One clear communications method for all suppliers, regardless of their method of invoice submission 6. Self-service status of purchase orders, invoices and payments 7. Online exceptions resolution Everyone looks at the same information (invoice image) to resolve issues Faster and more precise resolution Improved trading partner relationships 8. Assists in onboarding suppliers Submission of tax documents

32 Fraud Alerts 1. Fraud losses cost U.S. businesses an average of 5% of their total annual revenues (ACFE) A median loss of $100,000 per incident Bogus company Different address than vendor master Different account # than vendor master 2. Billing schemes make up 24% of all fraud cases (ACFE) 3. 16% of AP depts. have suffered fraud losses in the past 2 years (IOFM) Large businesses suffer the greatest losses 4. Controllers cite mitigating fraud among their top AP challenges (IOFM) 5. Combines business rules and artificial intelligence to flag suspicious payments: Amount/payment history Payee address Approver Invoice delivery method Vendor authentication 6. 86% of businesses say investments in digital technology helps mitigate fraud (Accenture)

33 Why These 6 Technologies are Critical to the Future of Accounts Payable Simple? Transparent? Seamless? Intelligent invoice capture YES YES YES Cloud & mobile YES YES YES Artificial intelligence & robotics YES YES YES Business analytics YES YES YES Online collaboration YES YES YES Fraud alerts YES YES YES

34 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas Summary 1. AP departments are investing in process standardization and automation The goal: Becoming a modern finance org. 2. The AP department of the future will be: Simple, transparent & seamless 3. As a result, AP will become: Digitized Strategic Collaborative Better able to deliver strategic information

35 November 12-14, 2017 Bellagio Resort & Casino, Las Vegas Summary 6 technologies will drive this transformation 1. Intelligent invoice capture 2. Cloud & mobile 3. Artificial intelligence & robotics 4. Business analytics 5. Online collaboration 6. Fraud alerts

36 THANK YOU! November 12-14, 2017 Bellagio Resort & Casino, Las Vegas