ap invoice processing for the smb & mid-market at #abbyysummit16

The New Golden Age of Invoice Automation

© ABBYY Confidential

Daneen StorcSr. Product Marketing ManagerABBYYdstorc@abbyy.com

© ABBYY Confidential

The New Golden Age

Giants ill-suited to meet the needs of the specialty market

Technological advancements make it accessible

Disruption from consolidation

2

© ABBYY Confidential

The New Golden Age

Giants ill-suited to meet the needs of the specialty market

Technological advancements make it accessible

Disruption from consolidation

3

© ABBYY Confidential 4

Brief History of Invoice Automation

1998

• Early Adoption by Best in Class Enterprises

2006

• Golden Age for Enterprise

2016

• New Golden Age for Middle Market

2014

• Enterprise Market begins to Mature

Agenda

The Accounts Payable Invoice Automation Market

5

The North American Middle Market

Seizing the Opportunity

1

2

3

The New Golden Age of Invoice Automation

© ABBYY Confidential

© ABBYY Confidential 6

The Accounts Payable Invoice Automation (APIA) Market

© ABBYY Confidential 7

The APIA Market

$3.7 billion > 11.6% CAGR

Procure-to-Pay Suites

Gartner IT Clock for B2B Solutions, 2015

Financial Management Applications

Gartner IT Clock for Financial Management Applications, 2016

© ABBYY Confidential 8

The APIA Market

$830 million > 9%

Forrester Research, Vendor Landscape: ePurchasing Software, 2015 To 2016

ePurchasing Software

© ABBYY Confidential 9

The APIA Market

$1.9 billion > 14% CAGR PayStream Advisors, 2015

AP Automation

$960 million > 5.4% CAGR

Harvey Spencer Associates, The 2016-17 Worldwide Market for Document Capture Software, 2016

Capture for Accounting

© ABBYY Confidential 10

An Opportunity Accounting applications are far from saturated and there is still growth in Accounting that is slightly above capture market growth

.…growth will come from mid-market company adoption of accounts receivable and accounts payable solutions

Buyers with revenue between $500 million and $2 billion are later adopters for P2P suites;

most are greenfield opportunities

No single vendor dominates the ePurchasing market, leaving buyers with many choices among vendors that are hungry for business.

Forrester ePurchasing Sotware, 2015 To 2016

Gartner Magic Quadrant for P2P Suites, 2016We expect to see high-end capture functionality democratized over the coming

years, enabling midmarket customers to reap the benefits from capture that have required large enterprise budgets in the past.

Smaller buyers have less volume to deliver cost savings based on compliance to negotiated contracts, but still

benefit strongly from getting rid of paper and improving P2P process cycle times

IDC Worldwide Enterprise Capture Software Forecast, 2016 To 2020

HSA The 2016-17 Worldwide Market for Document Capture Software

HSA The 2016-17 Worldwide Market for Document Capture Software

Gartner Magic Quadrant for P2P Suites, 2016

[The market] for standalone capture continues to be a viable opportunity. IDC Enterprise Capture Vendor Landscape, 2016

The North American Middle Market

© ABBYY Confidential

The Market that MovesAnnual Revenue

12

Revenue Growth > 7.2%

Employee Growth > 4.4%

Plans to Invest > 62%

$10MM - $1BNumber of Businesses

200,000Contribution to Global Economy

Third Largest© ABBYY Confidential

National Center for the Middle Market, Middle Market Indicator, Q2 2016

© ABBYY Confidential 13

Ready to InvestRelative to Other Business Priorities Change in Spending Allocation

National Center for the Middle Market, How Digital Are You?, 2015

© ABBYY Confidential

The Middle Market Warms Up to APIA Becoming educated about the benefits of

automating invoice processing

Organization may be growing which forces finance/AP leaders to make the unappealing decision to hire additional employees

May have pressure from competition

Increased complexity of AP processes

14

© ABBYY Confidential 15

Invoice Automation By Company Size

SMB

Midsize

Enterprise

0% 10% 20% 30% 40% 50% 60%

Percentage of companies that have digitized and automated invoice processing

AIIM, 2016

© ABBYY Confidential 16

Average Invoice VolumesAverage Monthly Invoice Volume

Percentage Across All Sites

0-249 16.3%

250-499 11.9%

500-999 14.7%

1,000-4,999 21.4%

5,000-9,999 14.7%

10,000-19,999 8.3%

20,000-34,999 2.4%

35,000+ 10.3%

Seventy-nine percent (79%) of organizations process less than 10,000 invoices per month

Institute of Finance & Management, 2016

© ABBYY Confidential

Seizing the Blue

© ABBYY Confidential

APIA Objectives of the Middle Market

1. Better Control of the Process

2. Shorter Cycle Times

3. Reduce Costs

4. Prevent Additional Costs

5. Reduce Errors

18AIIM, 2016

FCI Midsize Market Momentum Company Partner Situation Why we won

60K invoices Growing business Complex invoices Microsoft Access

DBMS

Ability to handle invoice complexity Greater Value

40K invoices Growing business Home grown

accounting system

Responsiveness Accuracy and flexibility of technology Part of larger solution with DocuWare Professional Server Greater Value

48K invoices Growing business Sage 100

Responsiveness Integration with Sage 100 Part of larger solution with SharePoint Online Scalability, breadth and accuracy of technology Greater Value

100K invoices Growing business Custom ERP

Easy to get up and running, and to maintain Robust solution Azure cloud

© ABBYY Confidential

ABBYY/Valued Partner Middle Market Differentiation

21

Easy to deal with

Ease of deployment/TCO

Robust technology Accurate Scalable Breadth Customizable Cloud option

Greater value

© ABBYY Confidential 22

Seizing Wins in the Middle Market

Engage customers before they have defined their requirements

Lead generation investment by ABBYY

Make automation look simple, smart, safe, secure and scalable

Product demo by ABBYY Sales enablement by ABBYY

Help the inner-champion gain executive buy-in

Illustrate how ROI can be achieved even with low invoice volume

ROI calculator and case studies by ABBYY

© ABBYY Confidential 23

A Note About ERPs

24© ABBYY Confidential

© ABBYY Confidential 25

Thank You!