automating accounts payable

Automating Accounts Payable

March 15, 2001

2

- Direct Commerce

- Solution

- Architecture


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.


Company & Team

>Mission

>>>>

web-based transactionand workflow applications

company & team<< >>

,,‘‘

Executive Team

>>>>

Executive Team

>

4


<< >>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. >

5

Manual process


“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

‘‘

6

Provide one URL to solve multiple exchanges through:


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

‘‘

7

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


a/p automation<< >>

8

PURCHASE ORDERS

INVOICES

DCI Customer

Oracle

Sage

Generic Financials

Vertical Market

Exchange

SAP

Great Plains

QuickBooks

Direct Commerce

OracleFinancials

Vendors

Vendors


CUSTOM

XML

WEB XML FILE



a/p automation<< >>

9

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


CUSTOM

EDIVAN

XML

WEB XML FILE



a/p automation<< >>

10

PURCHASE ORDERS

INVOICES

Non-DCI CustomerAutomated A/P

DCI Customer

Oracle

Sage

Generic Financials

Vertical Market

Exchange

EDI Vendor

SAP

Great Plains

QuickBooks


Direct Commerce

OracleFinancials

OracleSAP

JD Edwards

Vendors

Vendors


CUSTOM

EDIVAN

XML

WEB XML FILE

XML



a/p automation<< >>

11


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


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


12


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

13


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

14


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

15


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

16


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

17


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

18

Demo to close of sale 2– 3 weeks


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


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

20


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

>

>

>

>

21


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

automating accounts payable

Documents