the future of accounts payable - iofm€¦ · accounts payable data across the ... 6 critical...

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

The Future of Accounts Payable Presented by: Mark Brousseau

May 7-9, 2017


Accounts Payable Automation Solutions

Transforming organizations through Digitization, Leading Technology,

and Experience.

Expertise in BOTH Digital Imaging and

Business Process Automation

May 7-9, 2017


3

May 7-9, 2017


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

May 7-9, 2017


WHERE WE STAND The Future of Accounts Payable

May 7-9, 2017


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%


May 7-9, 2017


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%


Simple - 3%

AP will make Major Progress Towards Becoming a Modern Finance Organization

Significant progress

- 75%

Slight Progress

- 22%

No Progress - 0% Little Progress - 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


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%


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


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%


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%


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%

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


AP Leaders Do Not Foresee A Significant Reduction in Staff

5.7%

20.4%

36.9%

26.1%

10.8%


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%


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%


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


May 7-9, 2017


6 CRITICAL TECHNOLOGIES The Future of Accounts Payable

Invoice Processing will be Digitized


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


More than 90 percent - 9%

81 percent to 90 percent - 6%




Less than 11 percent - 17%





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

May 7-9, 2017


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

May 7-9, 2017


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

Summary

May 7-9, 2017


THANK YOU!

May 7-9, 2017


Return the session survey and be entered to win a

$25 AMEX gift card*

*Gift card will be mailed to the winner.

May 7-9, 2017


Drawing for three

$1,000 DISNEY GIFT CARDS

Eligibility • Those who responded to the IOFM

Future of Accounts Payable survey.