Automating%20Accounts%20Payable

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Automating Accounts Payable
March 15, 2001
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Automating Accounts Payable
objectives
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Meeting Objectives
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Provide Thorough Understanding Of
- Direct Commerce - Solution - Architecture
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Demonstrate Direct Commerce Application In The
Form Of Prototype
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CISCO Participation In Direct Commerce Pilot
Program
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Automating Accounts Payable
company team
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Company Team
Mission
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To provide a web-based service that automates the
delivery, management, approval, and workflow
routing of A/P transactions.
Executive Team
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Bruce Hanavan, CEO Billy Williams, CTO Jim
Uffelman, VP of Sales and Marketing David
Bernard, VP of Engineering
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Executive Team
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Chris Beckstead, EVP Visa Gregg Seo, Director
Inuit Paul Dumas, Director Remedy Colleen
Brandon, COO CFO Access Communications Daniel
Dean, VP CTO Medical Logic
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web-based transaction and workflow applications
,,
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Automating Accounts Payable
achievements
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Goals Achievements
(1/1/01)
0 mo.
(6/1/01)
(12/1/01)
6 mo.
12 mo.
18 mo. gt
Beta Testing Initial Rollout
Nationwide Growth
Product Design Development
10M B Round
1M Seed Round
2M - 5M A round
Business Expansion
Business Milestones
Business Milestones
Product Development
On-going Core Development
?
Architectural Platform
UI Integration with Backend
?
Technical Prototype
?
Product Specifications/UI Design
Application Testing
?
Customer Focus Groups
Beta Implementations
?
Standards Participation
2nd Generation Products
Corporate Organization
?
Core Management Team (3/26) Software Dev. Team
Complete
Management Team Technical Support
Org. Professional Services Org. Operations Team
Sales Marketing Team Customer Support
Group Finance/Acct. Group
?
Advisory Board
?
Seed Round Funding
?
Corporate Infrastructure
Sales Marketing
?
Pilot Customers (Sun Micro, VWR) Affiliate
Customers
Strategic Alliances
Beta Contracts Signed
?
Web Site Collaterals
3rd Party Licensing
National Marketing Rollout
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Trade Show Participation
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Automating Accounts Payable
a/p problems
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Pains in Accounts Payable
Large buying organizations
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Manual process
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High volume of paper-based transactions
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Excessive vendor phone calls
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Workflow inefficiencies

• routing
• approvals
• document

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Increased department demands/ flat headcount
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Too much time spent on low value tasks

• mail handling
• invoice entry
• filing

too much time spent on low value tasks
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Automating Accounts Payable
solution
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Solution
The Direct Commerce solution
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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 transac
tions
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Automating Accounts Payable
a/p automation
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Accounts Payable Automation
PURCHASE ORDERS INVOICES
Vendors
DCI Customer
SAP Great Plains QuickBooks
Oracle Financials
WEB XML FILE
CUSTOM

• AUTOMATION
• Electronic delivery
• Document matching
• Workflow routing
• AP mgmt console
• Reporting

Direct Commerce
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Automating Accounts Payable
a/p automation
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Accounts Payable Automation
PURCHASE ORDERS INVOICES
Vendors
DCI Customer
SAP Great Plains QuickBooks
Oracle Financials
WEB XML FILE
CUSTOM

• AUTOMATION
• Electronic delivery
• Document matching
• Workflow routing
• AP mgmt console
• Reporting

Direct Commerce
Vendors
Vertical Market Exchange
XML
Oracle Sage Generic Financials
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Automating Accounts Payable
a/p automation
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Accounts Payable Automation
PURCHASE ORDERS INVOICES
Vendors
DCI Customer
SAP Great Plains QuickBooks
Oracle Financials
WEB XML FILE
CUSTOM

• AUTOMATION
• Electronic delivery
• Document matching
• Workflow routing
• AP mgmt console
• Reporting

Direct Commerce
Vendors
Vertical Market Exchange
XML
Oracle Sage Generic Financials
EDI VAN
EDI Vendor

• AUTOMATION
• Customer interface
• Status information
• Fee based services

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Automating Accounts Payable
a/p automation
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Accounts Payable Automation
PURCHASE ORDERS INVOICES
Vendors
DCI Customer
SAP Great Plains QuickBooks
Oracle Financials
WEB XML FILE
CUSTOM

• AUTOMATION
• Electronic delivery
• Document matching
• Workflow routing
• AP mgmt console
• Reporting

Direct Commerce
Vendors
Vertical Market Exchange
XML
Oracle Sage Generic Financials
XML
EDI VAN
Non-DCI Customer Automated A/P
EDI Vendor
Oracle SAP JD Edwards

• AUTOMATION
• Customer interface
• Status information
• Fee based services

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Automating Accounts Payable
a/p automation
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Accounts Payable Automation
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Automating Accounts Payable
proposition
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Value Proposition
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Cost Savings
- increase productivity while maintaining
headcount
- exercise vendor discounts
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IT Impact
- accessible from any browser
- quick and low cost implementation
- minimal IT support
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Scalable solution supporting company growth
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Elimination of low value tasks
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Improved workflow options
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Availability of information
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Automating Accounts Payable
proposition
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Value Proposition
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Automating Accounts Payable
company building
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How to Build a Billion Dollar Company
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Automating Accounts Payable
marketplace
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The Competitive Marketplace
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Automating Accounts Payable
competition
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Competitive Landscape
Strengths
Weaknesses
Company
Comments
iPayables Optika SPS Commerce Ariba

• Accepts invoice via any technology
• Focuses on backend of the process

• Does not publish out POs

• Solution focuses on invoice processing

• Heavy customization and consulting work
• Imaging is part of their solution
• EDI based
• Does not support non-PO invoices

• Strong Retail presence

• E-Procurement
• Established market presence

• No focus on the settlement side

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Automating Accounts Payable
strategies
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Strategies
The Direct Commerce business strategies
Sales
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Direct sales force 9 regional sites
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Indirect sales through
- strategic alliances
- co-branding
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Pilot and affiliate partner referrals
Marketing
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Targeted marketing approach
- industry tradeshow presentations
(IOMA,IAPPltBAAPMA)
- standard boards participation (Sandia Labs)
- trade journal advertising
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Automating Accounts Payable
strategies
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Strategies
The Direct Commerce business strategies
Pricing Model
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• Fee based implementation (50,000)

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Two options
- (A) - 3 per invoice/month (includes all
modules)
- (B) monthly subscription per module (3,000
minimum)
- tiered based on invoice volume
Implementation
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Demo to close of sale 2 3 weeks
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Close to purchase order 2-4 weeks
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Implementation 3 weeks
- outsourced vs. professional services
- 24 x 7 tech support included
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Automating Accounts Payable
profitability
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Path to Profitability

• Q1-01 Q2-01 Q3-01 Q4-01 Yr.-02 Yr.-03
• Sales (000) 114 8,297 29,376
• Expenses [phone] 699 1,139 5,900 19,096
• Net Profit (000) -305 -835 -699 -1,025 2,397 10,28
  0
• Assumptions
• of customers
• Price/invoice
• Avg. volume/customer

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Automating Accounts Payable
application
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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

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Automating Accounts Payable
architecture
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Architecture
The Direct Commerce architecture
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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

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Industry Standards Certifications Compliance
- suntone
- security reviews

• standards setting bodies