Join Europe’s leading einvoicing expert Bruno Koch of Billentis for his view on the status and trends in the einvoicing market at both a country and company level. Learn what many companies see as the major barriers to einvoicing and how to overcome them, the value added services that increase acceptance by training partners and finally the encouraging business case to take the next step.

1. #AribaLIVE
Pave the Way for a Broad-scale Adoption
of E-Invoicing
Bruno Koch, CEO, Billentis
@kochbillentis
April 10, 2014
© 2014 Ariba – an SAP company. All rights reserved.
@ariba

2. “The European Commission has today proposed a draft
directive on E-Invoicing in public procurement, accompanied
by a communication setting out its vision for the full
digitisation of the public procurement process, so-called
'end-to-end e-procurement”.
European Commission, 26 June 2013
In Italy, about 11,000 Public Administrations and 2 to 2.5
million companies will be affected by the
E-Invoicing obligation coming in place step by step from
June 2014.
Quaderno del FARE - Fatturazione Elettronica verso la PA, Politecnico di Milano, 27 May 2013 & Umberto Zanini
2 © 2014 Ariba – an SAP company. All rights reserved.

3. >40%
15-40%
<15%
Expected market
penetration in 2014
Electronic share 2009 2010 2011 2012 2013 (E) 2014 (E)
B2B/B2G/G2B 7% 10% 13% 15% 20%*
24%
*) Jump due to new EU legislation considering also unsigned PDF invoices in the statistic
Market Penetration
(Electronic share of total invoice volume in B2B/B2G/G2B segment)
3 © 2014 Ariba – an SAP company. All rights reserved.

4. E-Invoicing Users in Europe
(issue and/or receive)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1-9 10-49 >250
%ofallenterprises
Number of Employees
4 © 2014 Ariba – an SAP company. All rights reserved.

5. • Electronic invoice exchange among larger companies  mass
market, easy-to-use services
• Domestic  International
• Standards and technology  process optimization
Some Trends in Europe (1)
5 © 2014 Ariba – an SAP company. All rights reserved.

6. • Developing beyond pure E-Invoicing:
 Multi-message and multi-format services required
 Pure E-Invoicing  support the entire O2C and P2P process
 Spend analysis
 Trade Finance / Supply Chain Finance
 Some countries in progress to push (near) real-time-auditing
instruments based on electronic invoicing and payment
transactions (similarities with the Latam model)
Some Trends in Europe (2)
6 © 2014 Ariba – an SAP company. All rights reserved.

7. Success Factors in E-Invoicing Projects (1)
• Awareness by senior executives about the potential of
E-invoicing in a broader sense
• Management support
• One very active project owner
• Implementing it step-by-step including a quick-win result
• Internal and external communication to key persons affected
7 © 2014 Ariba – an SAP company. All rights reserved.

8. Success Factors in E-Invoicing Projects (2)
• Being realistic regarding mid- and long-term technical capabilities
in your organisation including workflow and archiving  right
decision for make/buy and direct or network model
• Don’t re-invent and develop solutions which are already available
8 © 2014 Ariba – an SAP company. All rights reserved.

9. Success Factors in E-Invoicing Projects (3)
• Being realistic regarding technical capability of your counterparts
to send, receive and archive E-Invoices
• Being a rollout champion
9 © 2014 Ariba – an SAP company. All rights reserved.

10. Success Rates Dependent on
Used Method
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10
%E-Invoices
Year after starting the rollout process
Loop E-Order
+ E-Invoice
Powerplay
Pressing
Classic
approach
10 © 2014 Ariba – an SAP company. All rights reserved.

11. Two Different Implementation Strategies
Low High
Degree of process automation
PortionofE-Invoices
LowHigh
Status 2014
Objective
11 © 2014 Ariba – an SAP company. All rights reserved.

12. Major Barriers and How to Overcome
Them (1)
• Legal requirements are unknown or confusing
 Involve experienced network operators supporting you with
tax-compliant cross-border E-Invoicing services
• Change/adoption of internal organisation processes
 Ensure sufficient management attention and involve key
persons in the project in an early stage
12 © 2014 Ariba – an SAP company. All rights reserved.

13. Major Barriers and How to Overcome
Them (2)
• Divergent requirements of trading partners regarding
formats, methods and processes
 Involve network operators with the capability to address all
sizes of trading partners with various requirements
• Trading partners do not support the electronic invoice
 Contact them. Often the trading partners just need
inspiration to do it now and some guidance on how to do it.
Higher acceptance if value-added services are offered.
13 © 2014 Ariba – an SAP company. All rights reserved.

14. Major Barriers and How to Overcome
Them (3)
• Lack of budget
 In-house developments cause high initial and follow-up
costs. Field-tested applications and services from third parties
are typically significantly cheaper. If services on demand or
SaaS are preferred, the initial investments are moderate.
• Lack of resources to manage automation
 Shift E-Invoicing to the enterprise’s number 1 priority.
14 © 2014 Ariba – an SAP company. All rights reserved.

15. Major Barriers and How to Overcome
Them (4)
• Lack of understanding of current available solutions
 Independent market reports are available; involve market
analyst or experienced consultant
15 © 2014 Ariba – an SAP company. All rights reserved.

16. Main Drivers for Optimisation
Reduce costs
Optimisation of corporate finance
with E-Invoicing
Improve
Working Capital
Increase
elasticity of costs
16 © 2014 Ariba – an SAP company. All rights reserved.

17. Receive
1.10€
Entering
Codification
3.00€
Validat./Matching
Exceptionhandling
4.00€
Dispute
Management
2.50€
Archiving
2.20€
Payment&Cash
Management
4.80€
Real business case of consulting customer
Full-
Costs
17.60€
6.70€*
Paper
Electronic,
automated
0 0 1.20€ 2.00€ 0.80€2.00€
Saving per Invoice 10.90€ = 62% *) considered is 0.70 € processing cost
by third party service provider
Process Costs for Recipient
17 © 2014 Ariba – an SAP company. All rights reserved.

18. Key Findings and Conclusions (1)
• E-Invoicing is a strong and global trend.
• The business case especially for larger recipients is excellent.
• Your trading parties are anticipating E-Invoicing.
• The market maturity meanwhile achieved an advanced level.
• Appropriate solutions for any size of businesses are available.
18 © 2014 Ariba – an SAP company. All rights reserved.

19. Key Findings and Conclusions (2)
• Divergent requirements of trading partners regarding formats,
methods, processes, added-value services and tax
compliance however still build major barriers. Even for large
multinational companies is this hard to overcome without third
party assistance.
• For good luck, there is already a rich offering of some
experienced and international service providers.
19 © 2014 Ariba – an SAP company. All rights reserved.

20. Why still thinking about it
until you have to react?
Better do the next step now
and in a proactive manner!
20 © 2014 Ariba – an SAP company. All rights reserved.

21. About Billentis
• Highly specialized consulting company: E-Invoicing, optimisation
of Purchase-to-Pay and Financial Supply Chain; More than 150
customers in 50 countries: Federal administrations, large invoice
issuers and recipients, solution providers
• Market analyst; issuer of market reports and newsletters
• Company founded in June 1999
• www.billentis.com
21 © 2014 Ariba – an SAP company. All rights reserved.