Transcript Headline Goes Here

Automating Accounts Payable
March 15, 2001
Automating Accounts Payable
<< objectives >>
Meeting Objectives
> Provide Thorough Understanding Of:
- Direct Commerce
- Solution
- Architecture
> Demonstrate Direct Commerce Application In
The Form Of Prototype
> CISCO Participation In Direct Commerce
Pilot Program
2
Automating Accounts Payable
<< company & team >>
Company & Team
Mission
> To provide a web-based service that automates the delivery,
management, approval, and workflow routing of A/P
transactions.
Executive Team
> Bruce Hanavan, CEO
> Billy Williams, CTO
> Jim Uffelman, VP of Sales and Marketing
> David Bernard, VP of Engineering
Executive Team
> Chris Beckstead, EVP Visa
> Gregg Seo, Director Inuit
> Paul Dumas, Director Remedy
> Colleen Brandon, COO & CFO Access Communications
> Daniel Dean, VP & CTO Medical Logic
3
web-based transaction
‘‘ and
workflow
applications ,,
Automating Accounts Payable
<< achievements
Goals & Achievements
0 mo. (1/1/01)
Product Design & Development
$1M Seed Round
Business Milestones
Product Development
 Architectural Platform
 Technical Prototype
 Product Specifications/UI Design
 Customer Focus Groups
 Standards Participation
Corporate Organization
 Core Management Team
(3/26) Software Dev. Team
Advisory
Board

 Seed Round Funding
 Corporate Infrastructure
Sales & Marketing
 Pilot Customers (Sun Micro, VW&R)
Affiliate Customers
Web
Site & Collaterals

 Trade Show Participation
4
6 mo. (6/1/01)
Beta Testing & Initial Rollout
$2M - $5M “A” round
Business Milestones
12 mo. (12/1/01)
Nationwide Growth
$10M “B” Round
Business Expansion
On-going Core Development
UI Integration with Backend
Application Testing
Beta Implementations
2nd Generation Products
Complete:
Management Team
Technical Support Org.
Professional Services Org.
Operations Team
Strategic Alliances
Beta Contracts Signed
3rd Party Licensing
National Marketing Rollout
Sales & Marketing Team
Customer Support Group
Finance/Acct. Group
>>
18 mo. >
Automating Accounts Payable
<< a/p problems >>
“Pains” in Accounts Payable
Large buying organizations
>
Manual process
>
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
5
‘‘
too much time
spent on low
value tasks
,,
Automating Accounts Payable
<< solution >>
Solution
The Direct Commerce solution
>
Provide one URL to solve multiple exchanges through:
- electronic invoice delivery
- configurable workflow routing
- document matching
- infohub – self service vendor status with dialog functionality
- A/P manager console – summary tool
- reporting
‘‘
automation and
maintenance of
paper-based
transactions
,,
6
Automating Accounts Payable
<< a/p automation >>
Accounts Payable Automation
PURCHASE ORDERS
Vendors
INVOICES
DCI Customer
SAP
Oracle
Financials
•
•
•
•
•
7
AUTOMATION
Electronic delivery
Document matching
Workflow routing
AP mgmt “console”
Reporting
WEB XML FILE
Great Plains
QuickBooks
CUSTOM
Direct
Commerce
Automating Accounts Payable
<< a/p automation >>
Accounts Payable Automation
PURCHASE ORDERS
Vendors
INVOICES
DCI Customer
SAP
Oracle
Financials
•
•
•
•
•
AUTOMATION
Electronic delivery
Document matching
Workflow routing
AP mgmt “console”
Reporting
WEB XML FILE
Great Plains
QuickBooks
CUSTOM
Direct
Commerce
XML
Vertical
Market
Exchange
Vendors
Oracle
Sage
Generic
Financials
8
Automating Accounts Payable
<< a/p automation >>
Accounts Payable Automation
PURCHASE ORDERS
Vendors
INVOICES
DCI Customer
SAP
Oracle
Financials
•
•
•
•
•
AUTOMATION
Electronic delivery
Document matching
Workflow routing
AP mgmt “console”
Reporting
WEB XML FILE
Great Plains
QuickBooks
CUSTOM
Direct
Commerce
XML
Vertical
Market
Exchange
Vendors
Oracle
Sage
EDI
VAN
EDI
Vendor
Generic
Financials
AUTOMATION
•
Customer interface
•
Status information
•
Fee based services
9
Automating Accounts Payable
<< a/p automation >>
Accounts Payable Automation
PURCHASE ORDERS
Vendors
INVOICES
DCI Customer
SAP
Oracle
Financials
•
•
•
•
•
AUTOMATION
Electronic delivery
Document matching
Workflow routing
AP mgmt “console”
Reporting
Non-DCI Customer
Automated A/P
Oracle
SAP
JD Edwards
10
WEB XML FILE
QuickBooks
CUSTOM
Direct
Commerce
XML
XML
Great Plains
Vertical
Market
Exchange
Vendors
Oracle
Sage
EDI
VAN
EDI
Vendor
Generic
Financials
AUTOMATION
•
Customer interface
•
Status information
•
Fee based services
Automating Accounts Payable
<< a/p automation >>
Accounts Payable Automation
PURCHASE ORDERS
Vendors
INVOICES
PAYMENT
DCI Customer
SAP
Oracle
Financials
•
•
•
•
•
•
AUTOMATION
Electronic delivery
Workflow routing
Document matching
Infohub
AP mgmt “console”
Reporting
Non-DCI Customer
Automated A/P
Oracle
SAP
JD Edwards
11
WEB XML FILE
QuickBooks
CUSTOM
Direct
Commerce
XML
XML
Great Plains
Vertical
Market
Exchange
Vendors
Oracle
Sage
EDI
VAN
EDI
Vendor
Generic
Financials
AUTOMATION
•
Customer interface
•
Status information
•
Fee based services
Automating Accounts Payable
<< proposition >>
Value Proposition
> Cost Savings
- increase productivity while maintaining headcount
- exercise vendor discounts
> IT Impact
- accessible from any browser
- quick and low cost implementation
- minimal IT support
> Scalable solution supporting company growth
> Elimination of low value tasks
> Improved workflow options
> Availability of information
12
Automating Accounts Payable
<< proposition >>
Value Proposition
Un-automated
Invoices
60,000 x $15
Automated Invoice
costs
60,000 x $ 3 (DCI)
60,000 x $ 5 (Internal)
Other savings
1% to 3% additional timing
discounts on $400M
Productivity increases in
payment, outbound, receiving …
Intangible
Benefit to customer
13
( $900,000 )
$180,000
$300,000
Work process improvements
With low impact implementation
> $420,000
Automating Accounts Payable
<< company building >>
How to Build a Billion Dollar Company
DCI REVENUE
CUSTOMERS
Buying organization
Revenues X 1
$300,000/yr.
Vendor
Subscription fees
10,000 per Buyer,
5% penetration =
1,000 @ $50
$300,000/yr.
Installation fees
Not included
$600,000/yr.
X
Additional Products:
Payment, outbound, receiving,
timely payments, vendor
relationships
14
200 Buyers
$120M/Year
Automating Accounts Payable
<< marketplace >>
The Competitive Marketplace
E-Procurement
Ariba, Comm1, Claris,
Rightworks, etc.
EAI Vendors
Active, Vitria,
Tibco, Weblogic
Reporting Tools
Brio
15
Travel & Expense
Oracle, Extensity,
Concur
Corporate
Financial
System
Workforce
Automation
CRM Vendors
Oracle, Siebel,
Vantive, Clarify
Automating Accounts Payable
<< competition >>
Competitive Landscape
Company
iPayables
Strengths
•Accepts invoice via
any technology
Weaknesses
•Does not publish out
PO’s
•Focuses on backend
of the process
Optika
•Solution focuses on
invoice processing
•Heavy customization
and consulting work
•Imaging is part of their
solution
SPS Commerce
Ariba
•Strong Retail
presence
•EDI based
•E-Procurement
•No focus on the
settlement side
•Established market
presence
16
•Does not support nonPO invoices
Comments
Automating Accounts Payable
<< strategies >>
Strategies
The Direct Commerce business strategies
Sales
> Direct sales force – 9 regional sites
> Indirect sales through:
- strategic alliances
- co-branding
> Pilot and affiliate partner referrals
Marketing
> Targeted marketing approach
- industry tradeshow presentations (IOMA,IAPP<BAAPMA)
- standard boards participation (Sandia Labs)
- trade journal advertising
17
Automating Accounts Payable
<<
Strategies
The Direct Commerce business strategies
Pricing Model
> Fee based implementation ($50,000)
> Two options:
- (A) - $3 per invoice/month (includes all modules)
- (B) – monthly subscription per module ($3,000 minimum)
- tiered based on invoice volume
Implementation
> Demo to close of sale 2– 3 weeks
> Close to purchase order 2-4 weeks
> Implementation 3 weeks
- outsourced vs. professional services
- 24 x 7 tech support included
18
strategies >>
Automating Accounts Payable
<< profitability >>
Path to Profitability
Q1-01
Q2-01
Q3-01
Sales (000)
Yr.-02
Yr.-03
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
19
Q4-01
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
20
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
21