Automating Accounts Payable March 15, 2001. 2 - Direct Commerce - Solution - Architecture Automating...
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Transcript of Automating Accounts Payable March 15, 2001. 2 - Direct Commerce - Solution - Architecture Automating...
Automating Accounts Payable
March 15, 2001
2
- Direct Commerce
- Solution
- Architecture
Automating Accounts Payable
Meeting Objectives
> Provide Thorough Understanding Of:
objectives<< >>
>
> Demonstrate Direct Commerce Application InThe Form Of Prototype
CISCO Participation In Direct CommercePilot Program
3
Chris Beckstead, EVP Visa
Gregg Seo, Director Inuit
Paul Dumas, Director Remedy
Colleen Brandon, COO & CFO Access Communications
Daniel Dean, VP & CTO Medical Logic
Bruce Hanavan, CEO
Billy Williams, CTO
Jim Uffelman, VP of Sales and Marketing
David Bernard, VP of Engineering
To provide a web-based service that automates the delivery, management, approval, and workflow routing of A/P transactions.
Automating Accounts Payable
Company & Team
>Mission
>>>>
web-based transactionand workflow applications
company & team<< >>
,,‘‘
Executive Team
>>>>
Executive Team
>
4
Automating Accounts Payable
<< >>achievementsGoals & Achievements
0 mo. 6 mo. 12 mo.(1/1/01) (6/1/01) (12/1/01)
Product Design & Development
$1M Seed Round
Business Milestones
Beta Testing & Initial Rollout
$2M - $5M “A” round
Business Milestones
Nationwide Growth
$10M “B” Round
Business Expansion
Product Development
Corporate Organization
Sales & Marketing
Architectural PlatformTechnical PrototypeProduct Specifications/UI DesignCustomer Focus GroupsStandards Participation
Core Management Team(3/26) Software Dev. TeamAdvisory BoardSeed Round Funding
Corporate Infrastructure
Pilot Customers (Sun Micro, VW&R)Affiliate Customers
Web Site & Collaterals
Trade Show Participation
On-going Core DevelopmentUI Integration with Backend
Application TestingBeta Implementations
2nd Generation Products
Strategic AlliancesBeta Contracts Signed3rd Party LicensingNational Marketing Rollout
Complete:Management TeamTechnical Support Org.Professional Services Org.Operations Team
Sales & Marketing TeamCustomer Support GroupFinance/Acct. Group
18 mo. >
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Manual process
Automating Accounts Payable
“Pains” in Accounts Payable
>
Large buying organizations
too much timespent on lowvalue tasks
a/p problems<< >>
,,
High volume of paper-based transactions>
Excessive vendor phone calls>
Workflow inefficiencies >- routing- approvals- document
Increased department demands/ flat headcount>
Too much time spent on low value tasks>- mail handling- invoice entry- filing
‘‘
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Provide one URL to solve multiple exchanges through:
Automating Accounts Payable
Solution
>
The Direct Commerce solution
automation andmaintenance of paper-basedtransactions
solution<< >>
,,
- electronic invoice delivery
- configurable workflow routing
- document matching
- infohub – self service vendor status with dialog functionality
- A/P manager console – summary tool
- reporting
‘‘
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PURCHASE ORDERS
INVOICES
DCI Customer SAP
Great Plains
QuickBooks
Direct Commerce
OracleFinancials
Vendors
AUTOMATION• Electronic delivery• Document matching• Workflow routing• AP mgmt “console”• Reporting
CUSTOM
WEB XML FILE
Accounts Payable Automation
Automating Accounts Payable
a/p automation<< >>
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PURCHASE ORDERS
INVOICES
DCI Customer
Oracle
Sage
Generic Financials
Vertical Market
Exchange
SAP
Great Plains
QuickBooks
Direct Commerce
OracleFinancials
Vendors
Vendors
AUTOMATION• Electronic delivery• Document matching• Workflow routing• AP mgmt “console”• Reporting
CUSTOM
XML
WEB XML FILE
Accounts Payable Automation
Automating Accounts Payable
a/p automation<< >>
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PURCHASE ORDERS
INVOICES
DCI Customer
Oracle
Sage
Generic Financials
Vertical Market
Exchange
EDI Vendor
SAP
Great Plains
QuickBooks
AUTOMATION• Customer interface• Status information• Fee based services
Direct Commerce
OracleFinancials
Vendors
Vendors
AUTOMATION• Electronic delivery• Document matching• Workflow routing• AP mgmt “console”• Reporting
CUSTOM
EDIVAN
XML
WEB XML FILE
Accounts Payable Automation
Automating Accounts Payable
a/p automation<< >>
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PURCHASE ORDERS
INVOICES
Non-DCI CustomerAutomated A/P
DCI Customer
Oracle
Sage
Generic Financials
Vertical Market
Exchange
EDI Vendor
SAP
Great Plains
QuickBooks
AUTOMATION• Customer interface• Status information• Fee based services
Direct Commerce
OracleFinancials
OracleSAP
JD Edwards
Vendors
Vendors
AUTOMATION• Electronic delivery• Document matching• Workflow routing• AP mgmt “console”• Reporting
CUSTOM
EDIVAN
XML
WEB XML FILE
XML
Accounts Payable Automation
Automating Accounts Payable
a/p automation<< >>
11
Automating Accounts Payable
a/p automation<< >>
PURCHASE ORDERS
INVOICES
PAYMENT
Non-DCI CustomerAutomated A/P
DCI Customer
Oracle
Sage
Generic Financials
Vertical Market
Exchange
EDI Vendor
SAP
Great Plains
QuickBooks
AUTOMATION• Customer interface• Status information• Fee based services
Direct Commerce
OracleFinancials
OracleSAP
JD Edwards
Vendors
Vendors
AUTOMATION• Electronic delivery• Workflow routing• Document matching• Infohub• AP mgmt “console”• Reporting
CUSTOM
EDIVAN
XML
WEB XML FILE
XML
Accounts Payable Automation
12
Automating Accounts Payable
proposition<< >>
Value Proposition
>
>
- increase productivity while maintaining headcount
- exercise vendor discounts
- minimal IT support
Cost Savings
Scalable solution supporting company growth
IT Impact >
- accessible from any browser
- quick and low cost implementation
> Elimination of low value tasks
> Improved workflow options
> Availability of information
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Automating Accounts Payable
proposition<< >>
Value Proposition
Work process improvements
With low impact implementationIntangible
> $420,000Benefit to customer
1% to 3% additional timing discounts on $400M
Productivity increases in payment, outbound, receiving …
Other savings
$180,000
$300,000
60,000 x $ 3 (DCI)
60,000 x $ 5 (Internal)
Automated Invoice costs
( $900,000 )60,000 x $15Un-automated Invoices
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Automating Accounts Payable
company building<< >>
How to Build a Billion Dollar Company
200 Buyers
$120M/Year
Additional Products:Payment, outbound, receiving, timely payments, vendor relationships
$600,000/yr.
X
Not includedInstallation fees
$300,000/yr.10,000 per Buyer, 5% penetration = 1,000 @ $50
Vendor Subscription fees
$300,000/yr.Revenues X 1Buying organization
DCI REVENUECUSTOMERS
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Automating Accounts Payable
marketplace<< >>
Corporate Financial System
E-ProcurementAriba, Comm1, Claris,
Rightworks, etc.
EAI VendorsActive, Vitria,
Tibco, Weblogic
Reporting ToolsBrio
CRM VendorsOracle, Siebel,Vantive, Clarify
WorkforceAutomation
Travel & ExpenseOracle, Extensity,
Concur
The Competitive Marketplace
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Automating Accounts Payable
competition<< >>
Company Strengths Comments
iPayables
Optika
SPS Commerce
Ariba
Weaknesses
•Accepts invoice via any technology
•Focuses on backend of the process
•Does not publish out PO’s
Competitive Landscape
•E-Procurement
•Established market presence
•Solution focuses on invoice processing
•Strong Retail presence
•No focus on the settlement side
•Heavy customization and consulting work
•Imaging is part of their solution
•EDI based
•Does not support non-PO invoices
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Automating Accounts Payable
strategies<< >>
StrategiesThe Direct Commerce business strategies
>
>
Direct sales force – 9 regional sites
- strategic alliances
- co-branding
Targeted marketing approach- industry tradeshow presentations (IOMA,IAPP<BAAPMA)
- standard boards participation (Sandia Labs)
> Indirect sales through:
> Pilot and affiliate partner referrals
Sales
Marketing
- trade journal advertising
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Demo to close of sale 2– 3 weeks
Automating Accounts Payable
strategies<< >>
StrategiesThe Direct Commerce business strategies
>
>
Fee based implementation ($50,000)
- (A) - $3 per invoice/month (includes all modules)
- (B) – monthly subscription per module ($3,000 minimum)
- outsourced vs. professional services
> Two options:
- tiered based on invoice volume
Pricing Model
Implementation
- 24 x 7 tech support included
Close to purchase order 2-4 weeks>
Implementation 3 weeks>
19
Automating Accounts Payable
profitability<< >>
Path to Profitability
Q1-01 Q2-01 Q3-01 Q4-01 Yr.-02 Yr.-03
Sales (000) 114 8,297 29,376
Expenses (000) 305 853 699 1,139 5,900 19,096
Net Profit (000) -305 -835 -699 -1,025 2,397 10,280
Assumptions:– # of customers– Price/invoice– Avg. volume/customer
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Automating Accounts Payable
application<< >>
Application
The Direct Commerce application
Accessible from any Browser
Direct ERP Interconnection for data Import & Export
Applications Accessible for Programmatic Access
We maintain formats, protocols, and registrations
>
>
>
>
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Automating Accounts Payable
architecture<< >>
Architecture
The Direct Commerce architecture
>
>
Building a secure, scalable, reliable, highly
functional application
- use of leading technologies
- Java, XML/XSL, EJB, Message Queuing, RDBMS
- best of breed components deliver affordability to a
wide range of companies
Industry Standards & Certifications Compliance
- suntone
- security reviews
- standards setting bodies