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2012-2016 E-Invoicing Market in Europe 2012-2016 E-Invoicing Market in Europe
01. Executive Summary.................................................1 02. Scope of the Report.................................................3 02.1 Market Overview ........................................................................ 3 02.2 Product Offerings ........................................................................ 3 03. Market Research Methodology ............................4 03.1 Market Research Process ........................................................ 4 03.2 Research Design ......................................................................... 4 03.3 Research Methodology ............................................................ 5 04. List of Abbreviations ................................................6 05. Introduction ..............................................................7 06. Market Landscape ..................................................9 06.1 E-invoicing Market in Europe as a Segment of the Global E-invoicing Market ............................................... 9 06.2 Market Size and Forecast....................................................... 11 06.3 Five Forces Analysi s ................................................................. 13 07. End-user Segmentation by Company Size ...... 14 08. Key Leading Countries......................................... 15 08.1 UK .................................................................................................. 15 08.2 Germany ..................................................................................... 15 08.3 Denmark ..................................................................................... 16 09. Buying Criteria ....................................................... 17 CONTENTS ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe 2012-2016 E-Invoicing Market in Europe 10. Market Growth Drivers ......................................... 18 11. Drivers and their Impact ...................................... 20 12. Market Challenges ............................................... 21 13. Impact of Drivers and Challenges ..................... 23 14. Market Trends ........................................................ 24 15. Trends and their Impact....................................... 26 16. Vendor Landscape............................................... 27 16.1 Competitive Scenario ............................................................. 27 16.2 Market Share Analysi s 2012 .................................................. 27 16.3 Other Prominent Vendors....................................................... 29 17. Key Vendor Analysis ............................................ 31 17.1 Ariba Inc. .................................................................................... 31 17.1.1 Business Overview.......................................................................... 31 17.1.2 Business Segmentation .................................................................. 32 17.1.3 Product Portfolio ............................................................................ 33 17.1.4 Key Information ............................................................................. 33 17.1.5 SWOT Analysis ................................................................................ 34 17.2 Basware Corp. ........................................................................... 35 17.2.1 Business Overview.......................................................................... 35 17.2.2 Business Segmentation .................................................................. 36 17.2.3 Key Information ............................................................................. 37 17.2.4 SWOT Analysis ................................................................................ 38 17.3 Esker SA ....................................................................................... 39 17.3.1 Business Overview.......................................................................... 39 17.3.2 Business Segmentation .................................................................. 41 ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe 2012-2016 E-Invoicing Market in Europe 17.3.3 Key Information ............................................................................. 42 17.3.4 SWOT Analysis ................................................................................ 43 17.4 Tieto Oyj ...................................................................................... 44 17.4.1 Business Overview.......................................................................... 44 17.4.2 Business Segmentation .................................................................. 45 17.4.3 Key Information ............................................................................. 46 17.4.4 Sales by Industry Segment ............................................................. 46 17.4.5 Sales by Service Segment.............................................................. 47 17.4.6 SWOT Analysis ................................................................................ 48 18. Other Reports in this Series .................................. 49
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2012-2016 E-Invoicing Market in Europe 2012-2016 E-Invoicing Market in Europe
Exhibit 1: Market Research Methodology..........................................4 Exhibit 2: E-invoicing Market in Europe as a Segment of the Global E-invoicing Market 2012 ..................................9 Exhibit 3: E-invoicing Market in Europe 2012-2016 (US$ billion)...................................................................................11 Exhibit 4: E-invoicing Market in Europe by End-user Segmentation Based on Company Size 2012 ................14 Exhibit 5: E-invoicing Market in Europe by Vendor Segmentation 2012.............................................................28 Exhibit 6: Business Segmentation of Ariba Inc.................................32 Exhibit 7: Product Portfolio of Ariba Inc. ...........................................33 Exhibit 8: Business Segmentation of Basware Corp. .......................36 Exhibit 9: Product Portfolio of Esker SA..............................................40 Exhibit 10: Business Segmentation of Esker SA ..................................41 Exhibit 12: Business Segmentation of Tieto Oyj .................................45 Exhibit 13: Sales of Tieto by Industry Segment...................................46 Exhibit 14: Sales of Tieto by Service Segment ...................................47
EXHIBITS ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 1 01. Executive Summary Market Revenue (US$ billion) Market Growth Rate (%) CAGR (%) 2012 2016 2012 2016 2012-2016 1.56 2.82 15.00 16.53 15.95
Key Leading Countries 2012 (%) UK 12-14 Germany 9-11 Denmark 6-8
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 2 Key Market Drivers Key Market Challenges Key Market Trends Need to Automate Invoicing Process and Reduce Operational Costs Complexity Involved in Electronic Purchasing Process Emergence of Cloud Computing Need for Improved Business Productivity Lack of Internal Cross- functional Collaboration Increasing Demand from Several Sectors Increased Adoption of E- invoicing by SMEs Lack of Employee Training Need to Converge Vendor Capabilities Need to Reduce Overall Time to Market Data Security Concerns Stringent E-invoicing Regulations Language Barrier
Competitive Landscape Key Vendors 2012 Market Share (%) Basware Corp. 7-9 Ariba Inc. 4-6 Esker SA 3-5 Tieto Oyj 2-3
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 3 02. Scope of the Report 02.1 Market Overview This report covers the present scenario and the growth prospects of the E-invoicing market in Europe for the period 2012-2016. To calculate the market size, the report considers revenue generated by e-invoicing service providers in Europe. The report also presents the vendor landscape and a corresponding detailed analysis of t he top four vendors in the market. In addition, it discusses the major drivers that influence the growth of the E-invoicing market in Europe. It also outlines the challenges faced by the vendors and the market at large, as well as the key trends that are emerging in the market. 02.2 Product Offerings Some of the products offered by the major vendors in the E-invoicing market in Europe are listed below: Company Products Offered Ariba Inc. Ariba Invoice Presentment and Payment Basware Corp. Basware E-invoicing Basware Invoice Automation Esker SA Esker DeliveryWare Tieto Oyj Tieto E-invoicing
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 4 03. Market Research Methodology 03.1 Market Research Process TechNavio identifies the key opportunities in leading markets and develops various methodologies for data collection and analysis. The micro, meso, and macroeconomic indicators of the market are studied to ascertain the dynamics of the market.
03.2 Research Design TechNavios reports are based on in-depth qualitative and quantitative analyses of several markets. The qualitative analysis involves the application of a variety of projection and sampling techniques, whereas the quantitative analysis involves primary interviews, surveys, and vendor briefings. The data thus gathered is validated through experts' opinions. Based on research results and technical insights, TechNavio analysts refine the existing methodologies to analyze the individual aspects of the market. Exhibit 1: Market Research Methodology
Source: TechNavio Analysis E-inv oicing Market in Europe 2012-2016 ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 5 TechNavio analysts gather inputs from vendors and industry experts and verify the information collected with databases, financial reports, industry papers, and other secondary sources. The impact of global economic conditions and other macroeconomic indicators are also considered while assessing the market. 03.3 Research Methodology TechNavio analysts have adopted primary as well as secondary research techniques to ascertain the size and vendor landscape of the E-invoicing market in Europe. The information has been obtained using a combination of the bottom-up and top-down approaches and in- house market modeling tools. The data has then been corroborated with data obtained from market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 6 04. List of Abbreviations APAC - Asia Pacific EMEA - Europe, Middle East, and Africa MEA - Middle East and Africa PDA - Personal Digital Assistant SaaS - Software as a Service SMEs - Small and Medium-sized Enterprises
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 7 05. Introduction E-invoicing is the exchange of bills and related invoice documents between enterprises and their clients in an integrated electronic format, usually using the internet. Also known as e-billing, e-invoicing is a part of electronic data interchange transactions that include data from the enterprise in a format that can be integrated into the client's financial system without the interference of a financial administrator. Enterprises are increasingly using e-invoicing solutions to simplify and automate the process of creating, sending, and receiving invoices. E-invoicing offers a cost-effective solution that eliminates paper-based manual invoicing and replaces it with a more reliable and faster invoicing system. The E-invoicing market in Europe was the largest market in the Global E-invoicing market in 2012. The key leading countries in the market are the UK, Germany, and Denmark. The market is highly fragmented with just a few dominant players. Some of the leading players in this market are Ariba Inc., Basware Corp., Esker SA, and Tieto Oyj. The E-invoicing market in Europe is expected to grow at a CAGR of 15.95 percent during the period 2012-2016. The growth of the E-invoicing market in Europe is driven by many factors. One of the major drivers in the market is the need to automate the invoicing process and reduce operational costs. E-invoicing enables companies to automate invoice generation and enhance the overall business process. It also reduces the total operational cost s and the time spent on the purchasing process. Another key driver in the market is the need for improved business productivity. Despite the presence of strong drivers, the growth of the E-invoicing market in Europe is curtailed by some serious growth inhibitors. The complexity involved in an electronic purchasing process is one of the major challenges confronting the market. The integration of e-invoicing solutions with existing business systems such as accounting and human resources systems can be more complex than anticipated. Another major challenge in the market is the lack of internal cross- functional collaboration. Despite the presence of serious challenges, the E-invoicing market in Europe is expected to grow moderately due to the presence of certain emerging trends that could negate the effect of the challenges to some extent. One such trend is the emergence of cloud computing. Enterprises across the globe are increasingly adopting cloud computing for their requirements. Enterprises have discovered the cost benefits associated with adopting cloud-based services, as they offer various advantages such as rapid scalability, easy access, uninterrupted service, and flexibility. These factors are responsible for the higher adoption of cloud services, and organizations are ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 8 slowly moving their products and services into cloud storage systems. Another major trend in the market is the increasing demand from several sectors. Thus, the combined effect of various emerging trends is expected to have a positive impact on the E-invoicing market in Europe during the forecast period.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 9 06. Market Landscape 06.1 E-invoicing Market in Europe as a Segment of the Global E-invoicing Market The Global E-invoicing market was valued at US$3.4 billion in 2012. Europe dominated the Global E-invoicing market with a share of 45.88 percent. The main reason for the increased adoption of e-invoicing solutions in Europe is the need for improved business productivity. Enterprises in Europe are not only archiving their traditional accounting, human resources, sales, and production records, but they are also storing web pages, e-mails, interactive and collaboration records, images, presentations, documents, and spreadsheets. Content that was previously recorded in hard copies is increasingly being scanned, digitized, and stored in digital content storage and archival systems to reduce paperwork and improve workflow. E-invoicing has gained importance because organizations can organize and reuse customer -related information across their business to increase productivity and efficiency and ensure secure record retention. Exhibit 2: E-invoicing Market in Europe as a Segment of the Global E-invoicing Market 2012
Source: TechNavio Analysis The E-invoicing market in the Americas accounted for 37.00 percent of the global market in 2012. The Americas contributed US$1.26 billion to the market in 2012. The Americas was followed ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 10 by the APAC region with a market share of 9.00 percent. Although the E-invoicing market in the APAC region is still in its nascent stage, it is growing at a rapid pace and is expected to dominate the Global E-invoicing market in the next few years. In 2012, the APAC region accounted for a 9.00 percent share of the market and generated US$0.31 billion from sales of e- invoicing solutions. Some of the factors that are propelling the growth of the E-invoicing market in the APAC region are the need for organizations to reduce the cost of invoicing, the increasing number of acquisitions by existing e-invoicing vendors, the increased awareness about e- invoicing, and the increasing demand for these solutions in emerging markets such as China and India. The MEA region accounted for an 8.12 percent share of the global market in 2012.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 11 06.2 Market Size and Forecast The E-invoicing market in Europe was valued at US$1.56 billion in 2012 and is expected to reach US$2.82 billion by 2016, growing at a CAGR of 15.95 percent during the period 2012-2016. In 2012, the market grew at an annual rate of 15.00 percent. The increased focus on reducing carbon footprints and increased use of green technologies are the drivers in the current business environment. E-invoicing caters to these factors by significantly reducing the usage of natural resources such as paper and increasing the efficiency of business processes. However, the market is expected to witness an increase in its growth rate. The market will grow at a rate of 15.38 percent in 2013 and 15.56 percent in 2014, and it is expected to witness an improvement in its growth rate and grow at a rate of 16.35 percent in 2015 and 16.53 percent in 2016. Exhibit 3: E-invoicing Market in Europe 2012-2016 (US$ billion)
Source: TechNavio Analysis Many enterprises are realizing the importance of using e-invoicing in their business operations. Enterprises are discovering that they need e-invoicing to enhance the overall purchasing and payment processes. SMEs, large enterprises, and government organizations are the major end- users in the market. E-invoicing helps enterprises reduce the costs associated with, and improve the efficiency of, the invoicing process. While some of the vendors in the market are offering standalone software products, others are offering embedded solutions as part of their business suites. ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 12 In addition, there has been an increase in awareness among consumers about the various products and services available in the market, and consumers are becoming more sophisticated than ever. Customers are also increasingly using the internet not only for entertainment and information, but also to make purchases online. Hence, to meet the requirements of these customers, companies are shifting their marketing focus from a product- centric approach to a consumer-centric approach. This encourages companies to adopt e- invoicing solutions to provide their target audience with a more sophisticated purchasing experience in real time.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 13 06.3 Five Forces Analysis
Threat of Rivalry (High) There is intense competition among the existing players to provide better services based on the needs of end- users. Bargaining Power of Suppliers (Low) The consolidation trend among e-invoicing vendors has reduced the bargaining power of suppliers. Bargaining Power of Buyers (High) As the market is fragmented, buyers have a number of options to choose from. Threat of New Entrants (Medium) New vendors offering innovative additional features within the e-invoicing platform represent a threat to the existing vendors in the market. Threat of Substitutes (Medium) There is no direct substitute for e-invoicing services. However, companies can opt for traditional paper- based invoicing services. ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 14 07. End-user Segmentation by Company Size Large enterprises are the major end-users of e-invoicing solutions in Europe. The Large Enterprises segment accounts for the majority of the revenue in the E-invoicing market in Europe. In 2012, this segment accounted for 76.58 percent of the market. The need to reduce carbon footprints has increased the usage of e-invoicing among large enterprises. Further, e-invoicing enhances the collaboration among the different business processes and helps in compiling data to obtain the desired outcome. As a result, the carbon footprint of enterprises is reduced. A slight increase in the adoption of e-invoicing reduces the usage of approximately 700,000 trees, which in turn reduces carbon dioxide emissions. Such environmental benefits boost the corporate social responsibility programs of user organizations. Exhibit 4: E-invoicing Market in Europe by End-user Segmentation Based on Company Size 2012
Source: TechNavio Analysis The SMEs segment held a significant share in this market in 2012 and is growing at a high rate. In 2012, this segment accounted for 23.42 percent of the E-invoicing market in Europe. With the advent of cloud computing technology that offers huge storage space for structured invoice data, cloud-based e-invoicing solutions are increasingly being deployed by SMEs.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 15 08. Key Leading Countries The leading countries in the E-invoicing market in Europe 2012 are shown below:
08.1 UK The stringent e-invoicing regulations of the government are the major factors that drive the E- invoicing market in the UK. However, the complexity involved in the e-invoicing process is a major hindrance to the growth of this market.
08.2 Germany The need to enhance the invoicing process drives the E-invoicing market in the Germany. However, the increased competition among the vendors in this market poses a significant challenge to its growth. Major Driver Stringent E-invoicing Regulations of the Government Major Challenge Complexity Involved in E-invoicing Process Major Trend Increased Adoption by SMEs UK 12-14 percent Germany 9-11 percent Denmark 6-8 percent ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 16
08.3 Denmark The fact that e-invoicing has been made mandatory by the government drives the E-invoicing market in Denmark. However, difficulty in selecting the right solution from a wide variety of options hampers the growth of this market considerably.
Major Driver Need to Enhance Invoicing Process Major Challenge Intense Competition among Vendors Major Trend Increase in Mergers and Acquisitions Major Driver E-invoicing Made Mandatory by the Government Major Challenge Difficulty in Selecting the Right Solution from a Wide Variety of Options Major Trend Entry of New Vendors ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 17 09. Buying Criteria Parameter Details End-user Segments Significance Attached Affordability The price of the solutions and their associated services should be affordable SMEs
Large Enterprises
Government Organizations
Usability
The solutions should be easy to use and have self- explanatory applications and interfaces SMEs
Large Enterprises
Government Organizations
Reliability The integrity and the consistency of the solutions and all their transactions SMEs
Large Enterprises
Government Organizations
Security The ability of the solutions to provide a secure and safe infrastructure environment SMEs
Large Enterprises
Government Organizations
Key The impact of the buying criteria is graded on the basis of the intensity and the duration of their impact on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Medium - Medium-level impact on the market High - Very high impact with radical influence on the growth of the market Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 18 10. Market Growth Drivers The growth of the E-invoicing market in Europe is driven by many factors. One of the major drivers in the market is the need to automate the invoicing process and reduce operational costs. E-invoicing enables companies within or across organizations to automate invoice generation and enhance the overall business process. It also reduces the total operational cost s and the time spent on the purchasing process. Another key driver in the market is the need for improved business productivity. Some of the major drivers in the E-invoicing market in Europe are discussed below: Need to Automate Invoicing Process and Reduce Operational Cost s Need for Improved Business Productivity Increased Adoption of E-invoicing by SMEs Need to Reduce Overall Time to Market Need to Automate Invoicing Process and Reduce Operational Cost s One of the main drivers of the E-invoicing market in Europe is the need to automate the invoicing process. E-invoicing enables companies within or across organizations to automate invoice generation and enhance the overall business process. It eliminates paper processing, reduces failed payments and processing errors, accelerates the purchasing process, and improves customer relations. Hence, e-invoicing reduces the total operational cost s and the time spent on the purchasing process. This indirectly helps in increasing the production rate. Need for Improved Business Productivity The increased need to improve business productivity and gain competitive advantages such as optimization of capacity, reduction of lead time and cost, and increased profit through developing IT infrastructure are the major factors propelling the market forward. E-invoicing solutions improve an organizations processes by improving quality control and inventory control; this in turn improves the productivity and efficiency of the firm. As a result of the increased importance of scalable IT systems, enterprises are looking for business solutions that can accelerate the growth of an organization. In the last few years, some companies have deployed e-invoicing solutions that integrate with the organization's enterprise resource planning systems and help them improve efficiency and productivity, which in turn helps them meet their business demands very quickly and remain competitive. ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 19 Increased Adoption of E-invoicing by SMEs Earlier, SMEs had limited options when seeking to adopt a system that would ensure optimal business performance. This was because they did not require or could not afford all the features of enterprise-class systems. Their options were limited to freeware, low-end or open-source solutions that mainly focused on server or network monitoring. In the last few years, many SMEs have become increasingly aware of the significance of having a solution that preserves their brand reputation and enhances the business process. Some new vendors in the e-invoicing space are aware of this opportunity, and they have recently entered t he market with offerings that are positioned to capitalize on this trend. The combination of these new vendors' pricing models and the capabilities and ease of management that their solutions offer makes these products appealing, especially to SMEs. Need to Reduce Overall Time to Market In the modern business environment, the delivery of a product or a service by an organization involves the interaction of several internal departments, which consumes a lot of time. An effective e-invoicing solution can help organizations reduce the time required for service delivery. Moreover, improving the time to market necessitates the streamlining of critical business processes which involve communication and collaboration among employees, customers, suppliers, and partners. An e-invoicing solution enables companies to get a comprehensive view of documents in real time, thereby helping them share information, discuss issues, and provide solutions in much less time.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 20 11. Drivers and their Impact Driver Impact on End-user Category SMEs Large Enterprises Government Organizations Need to Automate Invoicing Process and Reduce Operational Costs
Need for Improved Business Productivity
Increased Adoption of E- invoicing by SMEs
Need to Reduce Overall Time to Market
Drivers Impact on Geography UK Germany Denmark Need to Automate Invoicing Process and Reduce Operational Costs
Need for Improved Business Productivity
Increased Adoption of E- invoicing by SMEs
Need to Reduce Overall Time to Market
Key The impact of the drivers is graded on the basis of the intensity and duration of their impact on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Medium - Medium-level impact on the market High - Very high impact with radical influence on the growth of the market Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 Low High 1 2 3 4 5 ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 21 12. Market Challenges Despite the presence of strong drivers, the growth of the E-invoicing market in Europe is curtailed by some serious growth inhibitors. The complexity involved in an electronic purchasing process is one of the major challenges confronting the market. The integration of e-invoicing solutions with existing business systems such as accounting and human resources systems can be more complex than anticipated. Another major challenge in the market is the lack of internal cross- functional collaboration. Some of the major challenges in the E-invoicing market in Europe are discussed below: Complexity Involved in Electronic Purchasing Process Lack of Internal Cross-functional Collaboration Lack of Employee Training Data Security Concerns Language Barrier Complexity Involved in Electronic Purchasing Process Creating and maintaining product data electronically and enabling suppliers to support electronic transactions increase the complexity of the purchasing process. Generally, there is a limitation in the ability of e-invoicing to address various types and ranges of purchasing activities. Organizations are facing difficulty in managing electronic catalogs with thousands of products and providing employees with the right mix of products and sufficient information about them. The process of providing employees with access to product -related information can be complicated because it necessitates the use of additional tools. In addition, the integration of e- invoicing solutions with existing business systems such as accounting and human resources systems can be more complex than anticipated. Lack of Internal Cross-functional Collaboration In order for an e-invoicing solution to be effective, various departments in an organization such as IT, finance, marketing, and human resources need to work in collaboration with each other and contribute equally to e-invoicing. The inability of various departments to cooperate with each other results in decreased visibility of operations. This leads to poor business results. This lack of internal collaboration is a challenge for organizations when there is increased need to maintain good collaboration among cross-functional departments for business success. ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 22 Lack of Employee Training Many companies do not opt for e-invoicing because of the constant need to train employees. Several organizations do not budget for training as a part of their process of adopting e- invoicing solutions. In some cases, systems have gone unused as employees continue work ing on their older systems, including paper-based systems. Thus, proper training of employees is required to ensure the efficient utilization of e-invoicing solutions. In addition, the market vendors are coming up with value additions; although this may increase the efficiency of the solutions, it also necessitates additional training of staff. Hence, thorough training requirements sometimes deter end-users from opting for e-invoicing. Data Security Concerns The security of customer data in e-invoicing is a key component. It is necessary to assign access permission to specific groups so that alteration and modification of access to customers ' documents in the system is restricted. Enterprises are always concerned about their data security and related issues when using e-invoicing solutions. This concern is greater when the tool is installed using SaaS-based solutions. During the deployment of SaaS-based e-invoicing solutions, the customer data resides in the cloud servers of vendors, which increases the security concerns. In a multi-tenant model, there is always a risk of information leakage, which could result in the misuse or manipulation of data. For organizations, the security of customer data is a vital aspect of cloud infrastructure and applications. In addition, many enterprises are concerned about data loss and misuse by IT professionals who install the tools. Data security and privacy are a big concern for many organizations. Hence, it is very important for SaaS-based e-invoicing vendors to provide strong security solutions for storing and managing the confidential data related to customers. Language Barrier Language is the most obvious element of cultural diversity. There are 23 languages in Europe. Therefore, the business language of organizations in Europe is different. For instance, some European countries such as Switzerland, France, and Germany find difficulty in using English as a business language. In Europe, the business language of many large enterprises is English, while their suppliers find it difficult to embrace English because of the diversity in language used on invoices. Therefore, this is one of the major challenges confronting the E-invoicing market in Europe.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 23 13. Impact of Drivers and Challenges
Key The impact of the drivers and challenges is graded on the basis of the intensity and duration of their impact on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Medium - Medium-level impact on the market Moderately High - Significant impact on the growth of the market High - Very high impact with radical influence on the growth of the market
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 24 14. Market Trends Despite the presence of serious challenges, the E-invoicing market in Europe is expected to grow moderately due to the presence of certain emerging trends that could negate the effect of the challenges to some extent. One such trend is the emergence of cloud computing. Enterprises across the globe are increasingly adopting cloud computing for their requirements. Enterprises have discovered the cost benefits associated with adopting cloud-based services, as they offer various advantages such as rapid scalability, easy access, uninterrupted service, and flexibility. These factors are responsible for the higher adoption of cloud services, and organizations are slowly moving their products and services into cloud storage systems. Another major trend in the market is the increasing demand from several sectors. Some of the major trends emerging in the E-invoicing market in Europe are discussed below: Emergence of Cloud Computing Increasing Demand from Several Sectors Need to Converge Vendor Capabilities Stringent E-invoicing Regulations Emergence of Cloud Computing The emergence of cloud-based solutions has enabled organizations to increase their efficiency and reduce the cost of setting up valuable IT infrastructure. However, many organizations are still analyzing the feasibility and relevance of cloud computing solutions in their IT operations. The cloud-based model for e-invoicing offers a pay-per-use model, which provides cost-effective access to the e-invoicing solution at any time and from any place by multiple users. Although many enterprises have increased understanding of the benefits of cloud-based e-invoicing, a number of concerns and risks, particularly in relation to data sharing and data security, are affecting the adoption of such solutions. However, the E-invoicing market in Europe is witnessing a trend where many vendors in the market have begun to offer their solutions through cloud- based models to expand their services and enter new markets. Increasing Demand from Several Sectors Though large sectors such as Retail, Telecom, Government, and Financial Services are the major end-users of e-invoicing solutions, the E-invoicing market in Europe is witnessing increasing demand from different sectors such as Healthcare, Logistics, Utilities, and Manufacturing. Many enterprises in these sectors have realized the importance of e-invoicing and they are increasingly adopting it. However, the Retail sector is considered as an early adopter of this technology and is known for investing heavily in IT. Additionally, the Telecom sector follows the ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 25 Retail sector very closely in terms of market penetration and technology development. The Financial Services sector is growing at a higher rate and is expected to increase its market share in the near future. Moreover, this sector is demanding high-end technology to provide advanced services to its clients. Need to Converge Vendor Capabilities The E-invoicing market in Europe has become very competitive as a result of the evolution of technological innovations and the varying needs of end-users. This has led to increased adoption of open-source software by enterprises and the emergence of small vendors, because of which the market is expected to remain dynamic in the near future. This results in intense competition among the vendors, thereby forcing them to consolidate their capabilities to remain competitive and to serve organizations that require comprehensive e-invoicing solutions. This is acting as a short-term challenge for the E-invoicing market in Europe. Stringent E-invoicing Regulations In several European countries, e-invoicing has become mandatory as a measure to reduce the usage of paper. E-invoicing also helps in cost reduction as it eliminates the cost of buying paper. Therefore, governments in Europe have made it mandatory to receive invoices electronically. Several European companies have accepted the mandate of adopting e-invoicing solutions. For instance, most of the organizations in Finland utilize e-invoicing solutions instead of using paper invoices. This is one of the major trends which will further increase the adoption of e- invoicing in Europe.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 26 15. Trends and their Impact
Key The impact of the trends is graded on the basis of the intensity and duration of their impact on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Medium - Medium-level impact on the market High - Very high impact with radical influence on the growth of the market ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 27 16. Vendor Landscape 16.1 Competitive Scenario The E-invoicing market in Europe is highly fragmented, which creates opportunities for mergers and acquisitions. The vendors in the market provide innovative e-invoicing solutions with a multi - channel integration capability that connects users through a variety of devices such as laptops, mobile devices, and PDAs. The market is dominated by four vendors that together accounted for 19-21 percent of the market in 2012. In addition, the market is witnessing the entry of many pure-play SaaS-based e-invoicing solutions providers that are competing with the large open-source solutions providers. As a result, the market is getting more fragmented, leading to the presence of a large number of vendors. Moreover, organizations are assessing the vendors based on their technical knowhow about e- invoicing solutions and the degree of superiority in their product offerings. This enables them to compete more effectively with the larger vendors, resulting in intense competition in the market. However, consolidation and attrition are anticipated in the near future, which will increase the complexity for organizations wishing to select the right e-invoicing solutions to meet their requirements. The top four vendors in the E-invoicing market in Europe are described below: Company Description Ariba Inc. Global spend management solutions provider Basware Corp. Global enterprise purchase-to-pay and financial management solutions provider Esker SA France-based document process automation software applications provider Tieto Oyj Global provider of IT consulting and IT services 16.2 Market Share Analysis 2012 Basware Corp. is also a major vendor in the E-invoicing market in Europe and it had a share of 7- 9 percent in 2012. The company offers SaaS-based e-invoicing and purchase-to-pay solutions. Its business operations are divided into four major segments: License Sales, Maintenance, Professional Services, and Automation Services. It has operations in more than 50 countries and ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 28 markets its products in a number of countries in Europe, Russia, North America, and the APAC region. The company has acquired several vendors in the past to establish itself in the E-invoicing market. Some of the notable mergers and acquisitions are listed below: Date Company Name Description January 18, 2012 First Businesspost GmbH Leading provider of e-invoicing in Germany October 5, 2012 Certipost NV Leading provider of electronic document exchange solutions in Europe
Ariba Inc. is a major vendor in the E-invoicing market in Europe and it had a share of 4-6 percent in 2012. The company is a subsidiary of SAP AG. It offers a wide range of solutions such as spend management solutions, procurement solutions, financial solutions, supplier solutions, and contract management solutions. It has business operations in more than 20 countries. It employs more than 2,500 customers in more than 40 offices operating across the globe.
Exhibit 5: E-invoicing Market in Europe by Vendor Segmentation 2012
Source: TechNavio Analysis ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 29 Esker SA is another major vendor in the E-invoicing market in Europe and it had a share of 3-5 percent in 2012. The company started as a software consulting company that designed software applications in order to eliminate the usage of paper from business management processes such as accounts payable, accounts receivable, and sales order processing. The company serves the Manufacturing, Life Sciences, Financial, Retail, IT, Telecom, Public, Utilities and Energy, and Travel and Transportation sectors. Tieto Oyj is another major vendor in the E-invoicing market in Europe and it had a share of 2-3 percent in 2012. The company is a leading provider of IT and product engineering services. It has operations in more than 20 countries. The company has a strong presence in Europe. Its service offerings have been developed to meet the requirements of customers across the globe. 16.3 Other Prominent Vendors Some of the other major vendors in the E-invoicing market in Europe are described below: Company Description Fundtech FSC Ltd. Global electronic invoicing and payment solutions provider GXS Corp. Global provider of business-to-business cloud integration services IBM Corp. Global technology and consulting company Itella Corp. Global financial administration process and logistics services provider Swiss Post Solutions Global information process solutions provider TradeShift Inc. Global e-invoicing solutions provider
Fundtech FSC Ltd. was another vendor in the E-invoicing market in Europe in 2012. The company was founded in 1993 and is headquartered in the Bangor, UK. It offers payment solutions and e- invoicing solutions to the Financial Services sector. The company's product portfolio includes payments, cash management, financial messaging, and merchant services. It has business operations in the Americas, the EMEA region, and the APAC region. IBM Corp. is another vendor in the E-invoicing market in Europe. In 2010, the company acquired Sterling Commerce from AT&T Corp. for US$1.4 billion and obtained strong business-to-business ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 30 integration capabilities as a result of the acquisition. It has the advantages of an ext ensive geographical spread, partner relationships with re-sellers, and technological partner relationships with giant players. Being a major enterprise resource planning software provider, its e-invoicing solution is expected to have the ability to integrate better with the existing systems. Additionally, its extensive geographical reach, financial strength, and partnership network s have helped it gain a significant market share and a strong position in the E-invoicing market. Itella Corp. was another vendor in the E-invoicing market in Europe in 2012. The company was founded in 1638 and is headquartered in Helsinki, Finland. It offers a wide range of solutions such as customer relationship marketing, invoice management, logistics, and e-mail communications. The company's operations are divided into three business divisions: Itella Mail Communications Itella Information Itella Logistics. GXS Corp. was another vendor in the E-invoicing market in Europe in 2012. The company was founded in 2002 and is headquartered in Gaithersburg, Maryland, US. It is a global leader in business-to-business cloud integration services. It has operations worldwide, including the US, the EMEA region, and the APAC region. The company offers cloud computing platforms for automating and monitoring business processes. It also provides messaging services for business documents such as purchase orders, images, invoices, and other files. Swiss Post Solutions is another vendor in the E-invoicing market in Europe. The company was founded in 1849 and is headquartered in Bern, Switzerland. It serves the Financial, Media, Travel, Logistics, Transport and Distribution, and Publishing sectors. It has operations across the US, the EMEA region, and the APAC region; however, it generates a significant amount of revenue from the UK, the Netherlands, and Scandinavia. TradeShift Inc. was another vendor in the E-invoicing market in Europe in 2012. The company was founded in 2009 and is headquartered in San Francisco, California ,US. It serves small companies and enterprises. It has additional offices in Copenhagen, Denmark, and London, England, UK. In March 2012, the company released an invoice processing product called CloudScan.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 31 17. Key Vendor Analysis 17.1 Ariba Inc. 17.1.1 Business Overview
Together with its subsidiaries, Ariba Inc. provides collaborative business commerce solutions that facilitate the buying and selling of goods and services. The company started its business with the innovative idea of using the internet to facilitate and improve the procurement processes of organizations. It combines various technologies to optimize the commerce lifecycle with web- based community technology in its solutions. Using these solutions, customers can connect and collaborate with a global network of trading partners. It also helps organizations enhance their cash flow and operations in a cloud-based environment. The company was acquired by SAP AG, a German business software provider, for US$4.3 billion in October 2012. The company also offers invoice management services, invoice conversion services, payment management services, and global invoicing and compliance services. It provides its services to the Financial sector for procurement functions, treasury-related operations, and sales and marketing operations. It is the only vendor that combines leading spend management and contract management solutions with global consulting and category expertise. In 2007, it acquired Procuri Inc., a privately-held provider of SaaS sourcing and contract management solutions, to broaden its cloud offering. The company serves the Automotive, Banking, Parameter Description Type Public Industry IT Services & Consulting Founded 1996 Headquarters Sunnyvale ,California, US Revenue US$517 million (FY2012) Employees 2,432 (2011) ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 32 Construction, Chemicals, Energy, Education, Manufacturing, Healthcare, Media and Entertainment, Retail, and Telecom sectors. 17.1.2 Business Segmentation Exhibit 6: Business Segmentation of Ariba I nc.
Source: TechNavio Analysis
Ariba Inc. Discount Management Payment Management Invoice Management Receivables Financing Supply Chain Finance Scanning and Workflow Systems ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 33 17.1.3 Product Portfolio Exhibit 7: Product Portfolio of Ariba I nc. Source: TechNavio Analysis 17.1.4 Key I nformation Company Details Description Product Portfolio Ariba Invoice Presentment and Payment Key Acquisition May 2012: Acquired by SAP AG, the leader in the Global Enterprise Applications market, for US$4.3 billion Key Customers Bajaj Auto Ltd. Dabur India Ltd. eBay Inc. Procter & Gamble Co. Ariba Inc. Contract Management Ariba Buyer Application Ariba Category Procurement Ariba Travel and Expense Ariba Procure-to- Pay Procurement and Expense Ariba Contract Workbench Ariba Contract Compliance Ariba Contract Management Invoice and Payment Ariba Invoice Presentment Ariba Payment Supplier Management Ariba Supplier Connectivity Ariba Supplier Network Spend Analysis Ariba Analysis Ariba Data Enrichment Ariba Spend Visibility Sourcing Ariba Sourcing Ariba Supplier Performance Management Ariba Category Management Ariba Sourcing On- demand ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 34 17.1.5 SWOT Analysis
Strengths Ariba is one of the leading vendors in the E-invoicing market in Europe. The company has seven business segments, with a strong position in each segment. It provides a strong goods procurement and supplier network through its cloud model. Its products offer the most functional and best user experience. It has a dedicated R&D division of more than 330 employees.
Weaknesses The company lacks an in-house Management Consulting division. It is highly dependent on the market in North America; it receives more than 50 percent of its revenue from North American enterprises.
Opportunities The company can focus on the emerging markets, particularly those in Brazil, Russia, India, and China, to enhance its business presence. The economic slowdown has increased the demand for technology-enabled efficiency solutions.
Threats The company faces a threat to its market share because of the intense competition among the top vendors.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 35 17.2 Basware Corp. 17.2.1 Business Overview
Basware Corp. is a leading provider of enterprise purchase-to-pay and financial management solutions in Europe. With more than 1,500 clients and 1 million users in more than 60 countries, it is one of the leading providers of purchase-to-pay solutions. Its enterprise purchase-to-pay solution automates procurement, accounts payable, and travel and expense management processes. It also offers a solution for invoice automation, including invoice data capture, invoice matching, review and approval, and payment transfer and archiving. The company's procurement solutions include purchase management solutions, sourcing and procurement solutions, contract lifecycle management solutions, and supplier portals. In addition, it provides data capture solutions, including enterprise imaging and mailroom automation solutions. The company also offers consulting services, customer support services, and training services.
Parameter Description Type Public Industry Accounting and Finance Software Founded 1985 Headquarters Espoo, Finland Revenue US$149.7 million (FY2012) Employees Approximately 1,423 (2012) ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 36 17.2.2 Business Segmentation Exhibit 8: Business Segmentation of Basware Corp.
Source: TechNavio Analysis
B a s w a r e
C o r p .
Purchase-to- Pay Procurement Invoice Automation Travel and Expense E-invoicing Virtual Printer E-mail Invoice Basic Supplier Portal Customer Activation Supplier Activation CloudScan Archiving ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 37 17.2.3 Key I nformation Company Details Description Product Portfolio Basware E-invoicing Basware Invoice Automation Key Acquisition October 5, 2012: Acquired the E-invoicing business and network of Cetipost N.V., a global electronic document exchange solutions provider, for US$23.98 million Key Customers ABB Ltd. Europcar SA Metso Oyj Toshiba Corp. UniCredit Group
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 38 17.2.4 SWOT Analysis
Strengths Basware is the leader in the E-invoicing market in Europe. The company is well known for its supplier management and its integration capability with other applications. It provides invoice automation even for purchases without commercial documents. Its open network strategy enables customers to connect more quickly with their supplier base. The major part of its revenue is generated from the Scandinavian region.
Weaknesses The company lacks a product strategy in developing and promoting its solutions.
Opportunities The company can expand its business to the emerging markets in the APAC region. The increasing demand for e-invoicing in the Government sector provides an opportunity for it to increase its market share.
Threats The increased competition might force the company to reduce the price of its e-invoicing offerings to retain its market share.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 39 17.3 Esker SA 17.3.1 Business Overview
Esker SA is one of the leading providers of document process automation solutions that enable organizations to eliminate paper-based business processes. The company has operations in a number of countries such as the US, the UK, Germany, Spain, Australia, Malaysia, and Singapore. Its product categories include document process automation solutions, fax server and fax services, and host access solutions. Its document process automation solutions include Esker DeliveryWare and Esker on Demand, which simplify paper-based processes. The company also offers fax server products, including Esker Fax, Esker Fax for Notes, and VSI -Fax software and services, which automate the sending and receiving of facsimile documents. Its host access portfolio of products includes Tun Plus and SmarTerm software and services, which enable personal computers and internet users to communicate with host computers and access shared data. It also provides mail services, which include production mailing and desktop mailing. The company offers a wide range of solutions such as cash conversion cycles, fax servers, fax services, and mail services.
Parameter Description Type Private Industry Technology Founded 1985 Headquarters Lyon, France Revenue US$47 million (FY2012) Employees Approximately 275 (2012) ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 40 Exhibit 9: Product Portfolio of Esker SA
Source: TechNavio Analysis
Esker SA Cash Conversion Cycles Order-to- Cash Procure-to- Pay Fax Servers Production Faxing Desktop Faxing Fax Services Esker Fax for Exchange Esker Fax for Notes Mail Services Production Mailing Desktop Mailing ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 41 17.3.2 Business Segmentation Exhibit 10: Business Segmentation of Esker SA
Source: TechNavio Analysis
Esker SA Esker DeliveryWare Esker on Demand Fax Servers Fax Services Mail Services Host Access ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 42 17.3.3 Key I nformation Company Details Description Product Portfolio Esker DeliveryWare Key Highlight 2012: Recognized as the world leader in automated sales order processing solutions for SAP systems Key Customers AGF Belgium Bank SA Allergan Inc. eFunds Corp. GE Healthcare Sallie Mae Inc. Vector Ltd.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 43 17.3.4 SWOT Analysis
Strengths Esker is one of the leading providers of e-invoicing solutions. The company's on-demand e-invoicing solution is well -recognized and it has a strong presence in the E-invoicing market in Europe. It is the worldwide leader in providing document process automation solutions. Its solutions offer ease of use and implementation benefits. It has a very clear pricing strategy for its solutions.
Weaknesses The company has fewer partnerships with system integrators than its peers such as Ariba.
Opportunities The company can increase its focus on cloud-based solutions and attract the SMEs segment. It can restructure its strategy regarding design to cut costs and make it leaner.
Threats Enhanced solutions from companies such as Basware and Ariba could pose a threat to the company's market share. It faces a threat from specialized e-invoicing vendors.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 44 17.4 Tieto Oyj 17.4.1 Business Overview
Tieto Oyj is an IT consulting and IT services company headquartered in Helsinki, Finland. The company serves the Financial, Manufacturing, Retail and Logistics, Public, Healthcare, Telecom, Media, and Energy sectors. It has a number of subsidiaries in countries such as Austria, Canada, Belgium, China, the Czech Republic, Denmark, Germany, Estonia, Lithuania, Italy, Norway, Spain, and Poland. It has operations in 23 countries with a strong position in Sweden and Finland. It offers a wide range of services to a large number of business segments such as Application Management, Business and IT Consulting, Business Process Services, Enterprise Applications, Information Management, and Infrastructure Solutions and Services. The company's operations are divided into four divisions: Managed Services Consulting and System Integration Industry Products Product Engineering Services.
Parameter Description Type Public Industry IT Services and Consulting Founded 1968 Headquarters Helsinki, Finland Revenue US$2.40 billion (FY2012) Employees 16,537 (2012) ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 45 17.4.2 Business Segmentation Exhibit 12: Business Segmentation of Tieto Oyj
Source: TechNavio Analysis
Tieto Oyj Industry Products Product Engineering Services Consulting and System Integration Managed Services ISIEmergingMarketsPDF ro-kpmg6 from 62.217.241.204 on 2013-11-19 04:19:12 EST. DownloadPDF. Downloaded by ro-kpmg6 from 62.217.241.204 at 2013-11-19 04:19:12 EST. ISI Emerging Markets. Unauthorized Distribution Prohibited.
2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 46 17.4.3 Key I nformation Company Details Description Product Portfolio Tieto E-invoicing Key Highlight December 18, 2012: Tieto launched cloud services for both the Enterprise sector and the Public sector in order to improve its operational efficiency Key Customers Apoteket AB Metsa Tissue Oyj Nordea Bank AB Outokumpu Oyj Pohjola Bank plc Wipak Oy
17.4.4 Sales by I ndustry Segment Exhibit 13: Sales of Tieto by I ndustry Segment
Source: TechNavio Analysis
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 47 17.4.5 Sales by Service Segment Exhibit 14: Sales of Tieto by Service Segment
Source: TechNavio Analysis
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 48 17.4.6 SWOT Analysis Strengths Tieto is a major vendor in the E-invoicing market in Europe. The company has a global presence and a good foothold in the Nordic markets such as Sweden and Finland. It has a large customer base in sectors such as Finance, Public, Retail, Healthcare, Telecom, and Media. It operates in four business segments: Industry Products, Consulting and System Integration, Managed Services, and Product Engineering Services.
Weaknesses The company lacks skilled staff for the implementation of e-invoicing solutions. It lacks a strong collaboration strategy for effective integration with related technologies.
Opportunities The company's branding and popularity in the market and its innovation-driven culture make it easy for it to approach its huge customer base. There is a huge opportunity for it to further increase its revenue in the E- invoicing market by entering emerging markets.
Threats The company faces a threat to its market share from niche players that are witnessing strong growth rates.
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2012-2016 E-Invoicing Market in Europe E-Invoicing Market in Europe 49 18. Other Reports in this Series Global Intelligent Systems Market 2012-2016 Advanced Analytics in the Social Gaming Industry 2012 Global Real-time Bidding-based Ad Display Market 2012-2016 Global Advanced Analytics Market 2012-2016 Global Cloud-based Gaming Market 2012-2016 Global E-invoicing Market 2012-2016 Global Game-based Learning Market 2012-2016 Global SMB Web Analytics Market 2012-2016 Global Platform-as-a-Service Market 2012-2016 (Anchor Report) Global Engineering Services Outsourcing Market 2012-2016 Global Online Video Platforms Market 2012-2016 Global Social TV Market 2012-2016 Global IT Asset Management Software Market 2012-2016 Customer Relationship Management (CRM) Software Market in China 2012-2016 Global Business Information Market 2012-2016 Global Systems Management Software Market 2012-2016
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2012-2016 E-Invoicing Market in Europe 2012-2016 E-Invoicing Market in Europe
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