2016 Purchase-to-Pay for Mobile Report


Presentation Description

The 2016 Purchase-to-Pay for Mobile Report by PayStream Advisors and GEP, highlights the ways in which mobile P2P technology solution providers ensure security and control over company data. This report also explores how mobile P2P solutions improve back-office processes, modernize the workforce and help tighten up lax company policies. Learn more about procure-to-pay software at https://www.smartbygep.com/procurement-software/procure-to-pay?utm_source=authorstream&utm_medium=pdf&utm_campaign=purchase+to+pay+mobile


Presentation Transcript

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© 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com Underwritten in part by 2016 Purchase-to-Pay for Mobile Report Unlocking the Power of Mobile Purchase-to-Pay P2P for an Efcient and Empowered Workforce Q2 2016 | Featuring insights on... » Current Trends in Today’s Mobile Workforce » The Benefts of Mobile Applications for P2P Processes » Types and Features of Mobile P2P Applications » A Leading Mobile P2P Software Provider

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 2 Introduction 3 Today’s Mobile Workforce 4 P2P Applications 7 Conclusion 12 GEP 13 About PayStream Advisors 15 Contents

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 3 Introduction When automating Purchase-to-Pay P2P processes many organizations implement electronic procurement invoice management and electronic payment tools. This streamlines the P2P cycle reduces processing costs and improves company control over spend. One of the most advanced features of today’s advanced P2P solutions is their mobile capability which allows back-ofce professionals to access business software tools from anywhere at any time. Using mobile technology for P2P activities is a best practice for increasing efciency and a strategic tool for organizations that want to improve employee productivity in back-ofce processes. However concerns about the security of mobile technology are becoming increasingly relevant as organizations rely more heavily on cloud-based solutions and allowing employees to access company data via their personal devices can be problematic. When faced with the potential challenges of mobile solutions some organizations choose to forego using the tool altogether. Today’s mobile P2P technology providers work to create more fexible back-ofce processes without sacrifcing company security or employee efciency. These solutions can be used both to modernize a workforce more comfortable with manual methods and to tighten up lax company policies around the use of mobile devices for business activity. This report explores the benefts of P2P solutions for improving back-ofce processes as well as the strategic value of leveraging a solution with advanced mobile technology. It also highlights the ways in which mobile applications are deployed and the diferent methods that solution providers use to ensure security and control over company data.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 4 Today’s Mobile Workforce In order to gauge the use of mobile devices for business activity in the current North American B2B environment PayStream Advisors conducted a survey of over 200 back-ofce employees from organizations across several industries and market segments. When asked to describe the nature of their company’s mobile workforce most organizations described the use of mobile devices as moderate see Figure 1. Over one-third of organizations report having a highly mobile workforce. According to a 2016 Business Travel Trends survey conducted by the Travel Leaders Group business travel will increase in the coming years as survey results show that most North American businesses expect their business travel to either remain the same or increase in 2016. 1 With the rise in business travel the use of mobile devices for business activity will also grow. Mobile devices are not used solely by travelling employees but are becoming increasingly important for employees in all roles. The International Data Corporation IDC predicts that the U.S. mobile worker population will grow at a steady rate over the next fve years increasing from 96.2 million in 2015 to 105.4 million mobile workers in 2020. 2 By that time IDC forecasts that mobile workers will account for nearly three quarters 72.3 percent of the total U.S. workforce. Figure 1 Most Organizations Have a Moderately Mobile Workforce “Which best describes the nature of your mobile workforce” We have a moderately mobile workforce some of our employees travel extensively but they are still a minority We have a significant mobile workforce a significant portion of our employees travel most of the time to conduct business We have a farily stationary workforce the large majority of employees rarely travel for business 44 41 16 1 Travel Leaders Group. “Business Travel Poised for Growth in 2016 According to Latest ‘Travel Leaders Group’ Survey.” News release December 22 2015. Travel Leaders Group. 2 International Data Corporation. “IDC Forecasts U.S. Mobile Worker Population to Surpass 105 Million by 2020.” News release June 23 2015. IDC.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 5 Several factors contribute to increases in mobile activity including a push for greater employee productivity more remote employees and large numbers of millennials entering the workforce. However increasing mobility in the workforce is not due only to necessity and cultural progression. Organizations’ executives are promoting mobile device use for work-related activity both in and out of the ofce because it improves workplace relationships and encourages knowledge sharing and employee autonomy—all of which also result in increased efciency. 3 In addition when using a Bring Your Own Device BYOD strategy ofces save money on purchasing and maintaining hardware. PayStream has found that Purchase-to-Pay departments are also adopting a mobile strategy to improve process efciency. When asked which business functions they perform on their mobile devices most respondents reported using them for expense reporting functions purchasing and invoice approval see Figure 2. However over one-third of respondents reported that they do not use their mobile device for any P2P activities. 3 Pitichat Thiraput. “Smartphones in the Workplace: Changing Organizational Behavior Transforming the Future.” Lux 3 no. 1 2013: 1-10. I do not use my phone for any of these busines activities Expense reporting 42 15 15 Expense report approval Purchasing Invoice approval Payment approval Invoice routing 10 9 5 4 Figure 2 Organizations Use Mobile Devices for Expense Reporting Purchasing and Invoice Approvals “Do you perform any of the following functions via your mobile device”

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 6 PayStream attributes the low use of mobile solutions in the surveyed organizations partially to the fact that most organizations in North America are not using P2P automation at all. Only 34 percent of organizations are using eProcurement software 41 percent are using invoice workfow automation 22 percent are using eInvoicing and most businesses 63 percent are using checks for over 50 percent of their payments. When organizations do move toward P2P automation mobility is often not their top consideration when asked about their top improvement goals in 2015 most organizations reported mobility as the least important concern see Figure 3. PayStream Advisors believes this low focus on mobility is due to the conception that mobile business applications do not greatly increase P2P efciency. However organizations should not consider mobile applications as an add-on feature of procurement invoice automation and payments software. Instead organizations should proactively consider P2P solutions’ mobile oferings when selecting a system. This will combine P2P automation’s process improvement and cost reduction with the collaboration and fexibility ofered with a mobile workforce. Mobility Business Intelligence and Reporting Process Automation Cost Reduction 14 31 35 59 Figure 3 Mobility Is the Least Important Process- Improvement Goal for Organizations “Which of the following improvements is your organization focusing on the most in 2015”

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 7 P2P Applications The following items outline the diferent features of today’s P2P applications and how P2P departments can use these solutions. Application Deployment Mobile solutions come in two forms: native applications and responsive web design RWD. While there are advantages to each type there are also diferences in accessibility and security. Native apps ofer downloadable software that is directly accessed from the user’s mobile phone or tablet. Solutions ofered via a native application can be accessed without an internet connection allowing the user to add information into the system even when they are ofine. Native apps must be updated regularly so that the technology and security features are up-to-date and efective and the app must be installed on every device an employee uses for work activities. Responsive web design applications are hosted in the cloud and are built to deliver a single application that ofers a user interface that is scalable across any device. As travelling employees work across varying environments and multiple electronic devices RWD allows them to move from smartphone to tablet to laptop—all without sacrifcing speed or efciency. RWD apps require an internet connection but when online they are always connected to the parent system and its real-time updated data and features. Because users are accessing the main system instead of a modifed mobile version RWD apps do not require any additional user training. Each of the two delivery methods is more suitable for some organizations’ business structures and culture than others and the type that a provider ofers may afect its appeal to a business. Depending on the P2P software some native applications do not give the user complete access to all of the solution’s features. For example procurement software often provides companies with access to catalogs containing large amounts of real-time purchasing data such as catalog item details vendor contracts or purchase order statuses. In most cases the user must log on to the main system to access this part of the procurement solution even if the provider ofers a native application. In this situation it is most benefcial when the provider ofers both kinds of application to ensure that the user has consistent access to the system.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 8 Security Security controls are a primary focus for P2P mobile solution providers as they realize the risk of enabling an employee to access company information from a personal device. Native applications are more likely to raise security concerns regarding employees’ personal devices and company data as a mobile device is subject to the risk of loss theft or compromise and data in an installed app can be easier to access by an outside party. With responsive design sensitive data remains on secure servers in the cloud leaving the responsibility of security and control to providers and their advanced frewalls. However providers of native applications have implemented controls to combat security risks including passwords SSL encryption and timeout sessions. In addition most providers do not store authentication information or company credit card information on users’ phones and the majority of mobile apps are PCI-compliant. Providers also prepare for the possibilities of a lost device or an employee leaving the company by implementing deactivation settings which allow the employer to automatically remove access to the solution—even from a native application. Even with the extensive security measures ofered by solution providers it is important for organizations to establish internal controls regarding employees’ mobile device use. According to survey results most organizations do not enforce mobile security controls see Figure 4. NO YES 34 66 Figure 4 Most Organizations Do Not Enforce Security Controls for Mobile Device Use “Does your organization enforce any security controls on your use of mobile devices for work- related activities”

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 9 Among those that do use security controls common measures include: » encryption password protection and/or antivirus/anti-malware apps. » only allowing the user to access the system through a corporate security server. » requiring the user to set up email through company-installed software and to use a six-digit security code when logging into a mobile device. » giving IT complete access to personal phones which can be wiped by the company. » limited user access based on hierarchy role etc. » the use of a specialized third-party security service. » requiring the user to sign security policy agreements PayStream encourages organizations that are not using security controls to consult with both their potential P2P solution provider and a mobile security expert before implementing a company-wide mobile initiative.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 10 Efciency Purchase-to-Pay automation greatly increases cost control and savings reduces processing times improves supplier relationships and builds competitive advantage. When an organization leverages these solutions with mobile applications it increases the versatility productivity and collaboration of the workforce—both in and out of the ofce. These solutions feature unique features for each of the components of P2P automation shown in Figure 5. P2P PROCUREMENT ACCOUNTS PAYABLE SUPPLIER MANAGEMENT SPEND MANAGEMENT ORDER MANAGEMENT EPAYMENTS One of the greatest benefts of mobile applications is the speed they bring to approval processes including for requisitions purchase orders invoices and payments. Most solutions allow users to approve requests directly from their phones through the native application or an email client. In addition many solutions also feature the ability to take pictures of invoices receipts and other important business documents and upload them directly to the P2P solution. Some solutions even include built-in Optical Character Recognition OCR software that extracts data from these documents. Other mobile P2P features may include: » eProcurement Order Management – The main features in procurement technology include requisition creation and workfow in-house and punch-out catalogs featuring product information Figure 5 The Purchase-to-Pay Platform

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 11 from thousands of suppliers PO creation and an order management interface that allows for full visibility into all order activity. eProcurement solutions often support PO fip to invoice and integration with AP as well. Mobile applications provide real- time access to vendor information and catalogs allow managers to quickly approve requisitions streamline purchase order creation and give real-time access to order status from shipment to receiving and reconciliation. » Accounts Payable and Electronic Payments – Most eProcurement solutions integrate with AP software facilitating seamless movement from requisition to payment. AP automation involves paperless invoice processing through electronic invoicing and/or OCR data capture invoice matching and exception management and approval workfow capabilities. Many AP solutions also ofer in-house payment capabilities or directly integrate with leading payment solution providers. Leading electronic payments ePayments strategies include ACH wire and commercial card payments. Among other features mobile solutions allow users to scan and upload invoices approve invoices check payment status and communicate directly with suppliers on invoice and payment discrepancies. » Supplier Management – Most solutions ofer some level of supplier management either through multi-level supplier self- service platforms or a searchable supplier directory. Other features include supplier data management supplier risk assessment and supplier analytics and reporting tools for insights and auditing. Many providers ofer mobile access to these tools as well as a separate supplier-side application for their clients’ supplier base. » Spend Management – Reporting and analytics tools allow purchasing AP and legal departments to pinpoint inefcient spend activity and identify areas for improvement. Features include out-of-the-box and/or ad-hoc reporting interactive reporting dashboards with drill-down capabilities integration with Excel and other analytics tools and industry benchmarking for data analysis. Mobile applications enable users to access simplifed analytics dashboards so that they can gain insights on spend and process data on the go.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 12 Conclusion As organization search for a P2P solution they should not overlook the increasing relevance of mobile P2P applications. The capabilities of these applications are very important for today’s global businesses and travelling professionals especially as workforces become more mobile and reliant upon advanced mobile technology. Mobile P2P solutions are valuable and strategic tools for bringing an organization to the next level of efciency and competitive advantage. The following profle details the oferings of a P2P software provider and its advanced mobile applications.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 13 GEP GEP is a global procurement technology developer with over 15 years of experience in deploying Purchase-to-Pay and Source-to-Settle solutions. With its P2P/S2S platform SMART by GEP® GEP has made it possible for all tasks in the purchasing and payables processes to be carried out in one system and from any device. The SMART by GEP platform includes solutions for spend management procurement sourcing contract management order management supplier self- service and invoice processing. Each component of the platform can easily integrate with clients’ existing systems or can be deployed as a standalone product. Founded 1999 Headquarters Clark New Jersey Other Locations London Prague Mumbai Shanghai Number of Employees 1400 Number of Customers 180 Target Verticals All verticals Awards / Recognitions Top supplier 2015 EPIC Procurement Excellence Awards HfS Blueprint Winner’s Circle Supply Demand Chain Executive Magazine Top 100 Everest Group’s PEAK Matrix for Procurement Star Performer Purchase to Pay and Mobile Capability SMART by GEP includes full P2P functionality in a unifed platform that ensures natural and accelerated process fow from negotiation to contract to catalog to order to invoice. The single product platform provides full control and visibility into all spend activity and purchasing data and includes functionality for spend analysis opportunity development savings planning and management supplier information and relationship management and catalog optimization. SMART by GEP’s procurement ofering covers requisitioning PO management receiving and reconciliation. The solution features many types of purchasing catalogs including punch-out supplier-hosted managed and internal buyer-managed. The solution also includes multi-variable and multi-stage requisition approval workfows with

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 14 failover delegation and escalation controls. Purchase requisitions are fipped into orders upon approval and fulflled POs can be fipped to invoices later on. SMART by GEP natively accepts invoices originating from suppliers through the SMART by GEP portal and also integrates with supplier systems for order and invoice transmission using EDI and/or cXML standards. Upon invoice submission GEP’s platform conducts feld-level matching based on business rules automatic re- routing of incorrect invoices back to suppliers and PO fip on validated invoices. GEP’s responsive design mobile app approach ensures that the entire platform is usable on any device while the most commonly- used functions are available on a native application. GEP consistently works with customers to refne and develop new applications for the mobile solution and the current app suite was designed according to customer requirements. No additional training is necessary for client employees to learn the native app. The app is updated according to a quarterly major enhancement schedule. In order to ensure security all data exchanges between a user’s mobile device and the parent system are secured using Hypertext Transfer Protocols HTTPs and are encrypted with AES 256 encryption. In support of enterprise Single Sign-On login credentials authentication occurs at the respective enterprise servers. Discontinued users are automatically logged out from the app on their devices as soon as access is revoked in SMART by GEP. Implementation and Pricing Implementation of SMART by GEP includes confguration to the client’s business processes and robust customer support to drive end-user adoption. During the implementation and pre-production phases GEP provides detailed training divided into three parts: system overview training screen navigation and functionality training. These are ofered both on-site and remotely via web conferences. Post-implementation GEP provides phone and web-based support. GEP’s global customer support staf is based out of three regions US Europe and APAC and is available 24/5. SMART by GEP is an annual subscription-based service priced on a function-by-function basis largely according to the number of users of each function for each year of the contract. The diferent factors considered for pricing include number and type of users interface languages contract and template confguration requirement and support services.

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Q2 2016 © 2016 PayStream Advisors Inc | www.paystreamadvisors.com | infopaystreamadvisors.com 15 About PayStream Advisors PayStream Advisors is a technology research and consulting frm that improves the way companies plan evaluate and select emerging technologies to achieve their business objectives. PayStream Advisors assists clients in sorting through the growing complexities of IT applications related to business process automation with the goal of making objective analytical and actionable recommendations. Wherever business process automation technology is an issue PayStream Advisors is there to help. For more information call 704 523-7357 or visit us on the web at www.paystreamadvisors.com

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