Technologies like the internet, smartphones and cloud have become business as usual within our working lives. But why is that? What has moved them beyond the tipping point and driven their mass business adoption?
We’ve identified five core factors that we at Basware think make it possible for a technology to reach mass adoption among businesses:
- Cost. It should be both affordable and have a clear cost benefit for the company.
- Ease of use. Installation and user experience should be straightforward and intuitive.
- Proven. It needs to have a proven track record of making a significant positive impact with minimal risk.
- Network. The fact that customers and suppliers start using a technology often provides the momentum needed for others to adopt.
- Innovation. The technology should promise further innovation and incremental benefits with time.
So where does e-invoicing stand?
Well, the immediate benefits in terms of operational efficiency and financial control are well understood. They’ve been enough to encourage 46% of companies in the US to begin evaluating the prospect of moving to e-invoicing. Another 36% have already adopted, or plan to within the next 6 months.1 In Europe, there’s been a 19% rise e-invoices processed by EESPA members over the last year.2
In fact across the globe, research shows that 55% of private companies plan to move to e-invoicing in the next 12-24 months.3 And in the Public Sector, governing bodies are driving adoption too—the European commission has published a directive for shifting away from paper, and many individual governments across the world are making similar moves.4
But these are just projections. Will e-invoicing get past the tipping point and become business as usual? I think so. We at Basware think so. We believe e-invoicing fits all the criteria mentioned above and more, and for that reason is likely to see mass adoption within two years.
Cost. The cost benefits of e-invoicing are already widely understood. 60-80% savings when compared to traditional paper-based systems are hard to argue with.
Ease of use. E-invoicing today is now a broad landscape of targeted solutions, which means organizations of different sizes and maturity can pick the solution that fits their requirements best.
Proven. New success stories are emerging every day. Companies of all sizes like SITA, Philips, The Co-operative Group and Heineken are already benefiting, and their positive experiences are beginning to have a ripple effect across the global economy.
Network. E-invoicing helps organisations build stronger, more transparent relationships with their partners. So the faster companies can become connected, the faster results can be realised. Which is why the open approach of the Basware Network and our focus on supplier activation are key to success.
Innovation. In many ways e-invoicing is just the start of the story. The connectivity it is creating between businesses means new financing services have emerged with others on the horizon. We like the analogy of mobile phones—they started as a way to have a voice conversation on the move. Now, as the networks are in place, they enable us to do so much more.
We’re confident that, as more and more companies start to realise the benefits of e-invoicing, it won’t be long before they wonder what they ever did without it. We also see the benefits of e-invoicing extending well beyond the transactional cost savings and process efficiency gains – but that’s a topic for another blog post.
For a more in-depth look at what we’re seeing in the e-invoicing adoption landscape, download out whitepaper here »
1Bruno Koch (Billentis), E-Invoicing and E-Billing—Key Stakeholders as Game-Changers, 2014
2The Paypers, ‘19% growth of e-invoices processed by EESPA in 2013’, 2014
3Ardent Partners, ‘ePayables 2014: The Quest’, 2014
4EESPA, ‘Accelerating the Adoption of E-Invoicing’, 2014