November 12-14, 2017 Bellagio Resort & Casino, Las Vegas The Future of Accounts Payable Presented by: Mark Brousseau
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
The Future of Accounts Payable Presented by: Mark Brousseau
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
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
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
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
WHERE WE STAND
The Future of Accounts Payable
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
AP Departments are Investing in Process Standardization & Automation
59.4%
24.0%
61.1%
20.0%
45.7%
13.1%
Automation
Innovation
Process Standardization
Finance Talent
Compliance and Security
No Investments
Source: IOFM Future of Accounts Payable Survey
3/4 of AP Departments are Moving Towards Becoming a Modern Finance Organization
Little Progress
17.1% Significant Progress
28%
Slight Progress
50.3%
No Progress 4.6%
Source: IOFM Future of Accounts Payable Survey
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
THE FUTURE
The Future of Accounts Payable
Respondents Want AP to Become: Simple, Transparent & Seamless
None of the above - 2% Transparent - 6%
Seamless - 10%
All of the above - 79%
Source: IOFM Future of Accounts Payable Survey
Simple - 3%
APAP Will Become More Strategic
12.7%
51.0%
20.4%
15.3%
0.6% Slightly lower strategic importance
Unchanged
we are of low strategic importance
Unchanged
we are of high strategic importance
Slightly higher strategic importance
Significantly higher strategic importance
Source: IOFM Future of Accounts Payable Survey
AP Will Make Major Progress towards Becoming a Modern Finance Organization
Significant progress
- 75%
Slight Progress
- 22%
No Progress - 0% Little Progress - 3%
Source: IOFM Future of Accounts Payable Survey
3/4 Expect Greater Enterprise Demand of Accounts Payable Information
25.5%
53.5%
19.7%
1.3% Significantly greater use of accounts payable data across the enterprise – 25.5% Slightly greater use of accounts payable data across the enterprise – 53.5% No change – 19.7% Slightly less use of accounts payable data across the enterprise – 1.3%
Source: IOFM Future of Accounts Payable Survey
Where AP Will Have Greater Influence
56.1%
33.1%
29.3%
26.1%
20.4% None of the above
Financial data governance
Financial technology purchase
Financial decision-making
Procurement
Source: IOFM Future of Accounts Payable Survey
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
Cost-Related Metrics Will Become More Important to Senior Mgmt.
35.7%
28.0%
36.9% 38.2% 39.5%
20.4% 17.2%
39.5%
51.0% 46.5%
36.3%
18.5% 22.3%
7.0% 1.3%
Source: IOFM Future of Accounts Payable Survey
Nearly 60% of AP Departments will Become More Centralized
Source: IOFM Future of Accounts Payable Survey
As part of a global shared services organization - 9%
As part of a regional shared services organization - 10%
Neither more centralized nor
decentralized compared to today - 40%
In a more centralized environment - 40%
In a more decentralized environment - 1%
Respondents are Split on How AP Complexity Will Change in 5 Years
7.6%
37.6%
8.3%
31.8%
14.6%
Significantly more complex
Slightly more complex
Unchanged
Slightly less complex
Significantly less complex
Source: IOFM Future of Accounts Payable Survey
AP Leaders Do Not Foresee A Significant Reduction in Staff
5.7%
20.4%
36.9%
26.1%
10.8%
Source: IOFM Future of Accounts Payable Survey
Significant decrease more than 10% decrease
Slight decrease up to 10% decrease
Unchanged
Slight decrease up to 10% increase
Significant increase more than 10% increase
AP Leaders Want their Departments to Become Focused on New Technology
52.2%
60.5%
45.2%
50.3%
29.3%
38.9%
1.9%
Source: IOFM Future of Accounts Payable Survey
Other Please specify
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
Automation Tops the Budgetary Priorities of AP Leaders
75.2%
38.9%
24.8% 15.9%
50.3%
8.3%
34.4% 24.8%
3.2%
Source: IOFM Future of Accounts Payable Survey
AP Leaders say they Must Champion their Dept.’s Automation Initiatives
22.3%
11.4%
16.6%
41.1%
2.3%
1.7%
4.6%
CFO
Controller
Director or vice president of finance
AP leadership
Finance leadership
Treasury leadership
IT leadership
Source: IOFM Future of Accounts Payable Survey
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
6 CRITICAL TECHNOLOGIES
The Future of Accounts Payable
Invoice Processing will be Digitized
Source: IOFM Future of Accounts Payable Survey
Intelligent data capture - 14%
Supplier/Buyer Network - 5%
Artificial intelligence - 3%
Robotics - 2%
Contextual exception resolution - 1% Procure-to-Pay
automation - 15%
e-Invoicing - 17%
Fraud alerts - 5%
Blockchain - 0%
Business analytics - 7%
Online collaboration - 4%
Source-to-Pay automation - 4%
Cloud - 11%
Mobile - 12%
6 Most Critical Technologies
1. Intelligent invoice capture
2. Cloud & mobile
3. Artificial intelligence & robotics
4. Business analytics
5. Online collaboration
6. Fraud alerts
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
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
Majority of Invoices will be Approved via a Mobile Device
Source: IOFM Future of Accounts Payable Survey
More than 90 percent - 9%
81 percent to 90 percent - 6%
71 percent to 80 percent - 10%
61 percent to 70 percent - 11%
51 percent to 60 percent - 16%
Less than 11 percent - 17%
11 percent to 20 percent - 7%
21 percent to 30 percent - 9%
31 percent to 40 percent - 7%
41 percent to 50 percent - 8%
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 semi-structured 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
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)
5. 360-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
Business Analytics
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
Online Collaboration
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)
Fraud Alerts
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
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
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
November 12-14, 2017
Bellagio Resort & Casino, Las Vegas
THANK YOU!