Building a better business case for E-invoicing by Chris Talliss, guest writer.
Common consensus has it that building a business case/RoI for E-invoicing is a purely financial and metric-driven endeavour. It tells us that the best place to start is to detail the current and future state, set out a series of financial KPIs and then showcase the benefits of e-invoicing through the lens of “cost reduction”, numerical efficiency etc.
Whilst there is nothing wrong with this approach, it is intrinsically narrowing in its lens and perspective. Although the arrival of electronic invoicing and “digital business” is often focused on evolving financial business processes (and is therefore seen as purely a sale to a finance team) this approach has a consequence. Very few organisations have accurate knowledge (or the ability to acquire it) to evaluate the As-Is To-be aspect of this puzzle. This creates either an over-commitment by the service provider to hit overly ambitious targets, or a business case which drifts into irrelevance as the reality of implementation sets in. As the market continues to evolve, customers then start to seek benefits which are outside the traditional financial automation benefits. This is what presents our opportunity.
There is a lot of talk in the market about aspects such as “alignment to strategy goals” for the company who are considering making the investment in e-invoicing. But what does this actually mean and how do I translate this into customer conversations???? In our opinion, the answer is simple. Rather than myopically focusing on trying to drive down cost (and risk triggering a race to the bottom with a competitor) instead spend a little more time with the customer trying to uncover the pain, gain and opportunity associated with what you are proposing.
- What is causing pain and friction in the process as it stands today? Does the company trust its financial processes or are they viewed as laborious, time consuming and error prone. Should these be automated (at any cost/price) or re-imagined with an automation bias? (Pain)
- Do the financial processes support the business with its endeavours? Are they capable and flexible enough to be able to keep pace with the rate the business wants to move? (Gain)
- If an investment was made into the current “mandrolic” financial process, what opportunities would this uncover? Could cash be deployed more effectively and efficiently? Could reduced friction/increased transparency in the supply chain provide a competitive edge?
In some cases, no matter how hard you try and “torture a business case” it wont add up if its basis is purely financial, and hinges on the automation of 20th Century process. Instead try focusing on what the customer is trying to achieve and be proud to offer a premium service.
(Chris was an early employee at Tungsten Network, one of the largest global E-invoicing Networks)