Scaling the e-Financial Supply Chain Mountain

May 10, 2004

Abstract

San Francisco, CA, USA May 10, 2004

Part II of III: A Review of Solution Providers Facilitating the Ascent

The trek to the electronic summit for B2B transactions is a long but not impossible one. Celent predicts that adoption of buyer and seller-driven applications will grow from an estimated 34% of the top 1000 North American companies in 2004 to 54% by 2008.

In a new report, , Celent examines e-financial supply chain solutions and their prospects. Celent finds that there are signs that demand is picking up and that earlier slow adoption reflected the market’s immaturity, not its irrelevance. Several critical factors will propel adoption: continued enhancements that improve the value proposition, financial pressure on companies to become more efficient, regulations demanding financial transaction transparency and integrity, and pricing more in line with companies’ cost-value equation.

According to Alenka Grealish, author of the report and manager of the banking group at Celent, "In the late 1990s, adoption of an e-invoicing and e-payables solution was legitimately viewed as entering risky territory, akin to the first ascent of a mountain. The software was relatively unproven and vendor viability was in question. Today, with blue chip companies such as Honeywell, Payless, and Verizon singing praises and behemoths such as Oracle, SAP, and FDC pursuing market share, e-financial supply chain solutions are gaining legitimacy and staying power."

Long-run staying power requires a minimum level of standardization and interfaces across solutions and networks for buyers and sellers alike. Celent believes that is highly unlikely, however, that there ever will be a single solution or network. Instead, multiple models and solutions will co-exist and in-roads into interoperability will be made. Already, there are budding signs of interconnectivity.

The report compares and contrasts ten vendors: Avolent, BCE Emergis, Bottomline Technologies, Deutsche Bank, edocs, Oracle, PowerTrack, SAP, Velosant, and Xign.

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

 

San Francisco, CA, USA May 10, 2004

Scaling the e-Financial  Supply Chain

Return to report Abstract

 

EXECUTIVE SUMMARY 3
WHY SCALE THE E-FINANCIAL SUPPLY CHAIN MOUNTAIN? 5
  Processing Efficiency 6
  Financial Efficiency 8
  Regulatory Drivers 9
APPROACHES TO THE MOUNTAIN 12
  Peaceful Co-Existence Across Models 12
  A Tale of Two Companies 13
LAY OF THE VENDOR LANDSCAPE 16
  Vendor Overview 16
  Market Presence 19
  Features Overview and Vendor Comparison 20
  Features - Vendor Details 25
VENDOR SPOTLIGHTS 28
  Buyer-Driven Solutions 28
  Bottomline Technologies 28
  PowerTrack 30
  Xign 35
  Seller-Driven Solutions 37
  Avolent 37
  BCE Emergis 40
  Deutsche Bank 43
  edocs 46
  Velosant 49
  ERP Vendors 52
  Oracle 52
  SAP 55
CONCLUSION: GRADUAL TREK TO THE SUMMIT 57
APPENDIX I: FEATURES QUESTIONNAIRE 61
APPENDIX II: DSO AND DPO ARBITRAGE 66

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