Invoice Delivery Service Competitive Landscape Revie · Invoice Delivery Service Competitive Landscape Review ... c u s. H o m e m ... and the opportunity to get paid faster

Invoice Delivery Service Competitive Landscape Review

Invoice Delivery Service Competitive Landscape Review

Marco de VriesDirector, Competitive & Market IntelligenceNovember 2007

Marco de VriesDirector, Competitive & Market IntelligenceNovember 2007

Discussion TopicsDiscussion Topics

Landscape Overview• Market Drivers• Competition From Many Angles• Pros-Cons Summary

Additional Resources • Gartner Magic Quadrant• Other Analyst Validation

Top Competitor Review

• Ariba• JPMC-Xign• TradeCard• BasWare• Bottomline Technologies

GXS Winning Strategy• Differentiators• Relative Positioning• Laying Landmines• Overcoming Competitor Myths

For Internal Verizon-GXS Use Only








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ngMarket Trends, Drivers & OpportunitiesMarket Trends, Drivers & Opportunities

Trends, Drivers Opportunities GXS Advantages

• Pressure to reduce IT costs, consolidate infrastructure• Larger push toward BPO of non-core functions,

increase strategic value of IT to the business• Increasing pace of M&A, divestiture activity• Pressure to reduce risk, ensure regulatory compliance

• Continued price pressure, but offset by accelerated SMB adoption, higher value services

• Growth in global sourcing, international trade broadens trading communities, supply chain touch points

• B2Bi becoming more strategic but also more complex (standards proliferation)

• Global sourcing, supply chain globalization• Increased demand variability and multi-tier production

chains hamper supply chain responsiveness• Pressure to reduce order-execution cycle fueling SCE

investments, linkage to SCP

• Pressure to reduce cost, drive bottom line impact; transformation of traditional back-office function, RCM

• Integrate stovepipe processes as part of larger source to settle strategy; comprehensive visibility, BI

• Competitive, regulatory pressures (e.g., VAT); cannot afford to rely on error-prone manual processing

• Deliver bottom-line benefits• Compliance/VAT requirements• Automation, outsourcing,

shared services• SME supplier enablement

• Enable global sourcing

• Merging physical and financial supply chains

• Extend SCM, ERP suites

• Global requirements

• Extend SCM, MDM, ERP

• Market consolidation

• Partner ubiquity, reach

• Global B2B consolidation

• Rapid growth companies

• Regulatory compliance

• ASPAC untapped

• Global platform

• HA/DR investments

• People and Process

• Customer reference base

• Broader B2B-SCM platform

• Global presence, reach

• Extend apps; not overlap

• TP integration, mgt. expertise

• Unified messaging + visibility• Fully on-demand service• Extends ERP, not compete• Global reach, scale esp. Asia• Flexible on-boarding

• Global presence, reach

• Market leadership

• HA/DR investments

• Flexible on-boarding, portal


Invoicing Landscape Is DiverseInvoicing Landscape Is Diverse

Software

Consulting

On-Demand

AP Specialist Generalist

BPO/SI EDS, Accenture, Wipro,

Tata Consulting

Financial Services TDN US Bank, JPMC, AMEX

ERP Infor, SAP,

Oracle

EIPP, OTC JP-Xign,

BasWare, b-process, Bottomline

Procurement, Spend Mgt.

Ariba, Emptoris,

PurchasingNet VerticalNet

expertise

delivery

GXS IDS EDI VAN, B2B Gateway

Sterling, Inovis, EasyLink,

nuBridges

GTM TradeCard, TradeBeam


Invoicing Landscape Is DiverseInvoicing Landscape Is Diverse

Software

Consulting

On-Demand

AP Specialist Generalist

expertise

delivery

regional presence & focus

Home m

arket

Global

But most fall short because…

Focused on home-country, despite marketing; not global

Software roots, not network (Axway/Seeburger)

Or as/via telco (BT, FT, T-Systems, Crossgate)

Are narrowly industry-focused, e.g. Automotive

Regional competitors are strong with…

Accustomed to disparate data, TPs, languages

Aggressive on price, esp. telcos

Close alliances with ERP vendors, regional SIs

Embedded incumbents, cultural preference


GXS IDS Strongly PositionedGXS IDS Strongly Positioned

GXS IDS• Combines depth & breadth of IDS-B2Bi• Broadest global reach, TP on-boarding• Broad, certified VAT compliance

• Not a single vendor solution• Perception as basic VAN, new focus• Solution depth, feature/function (pay’t)

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Basic EDI VAN Sterling Inovis BT

• Broad network reach, presence• Part of broader B2Bi platform• Community enablement experts

• No AR/AP expertise• Limited matching• No network-based VAT compliance

Niche EIPP Xign Bottomline BasWare

• Core focus, subject experts• Deep matching, data validation• Extensive accounting adapters

• Not part of broader B2B platform• Small, questionable viability• Limited on-boarding, global presence

FinServ TDN AMEX JPMC

US Bank PowerTrack

• Full procure-to-pay treasury services• Strong existing corporate relationships• Subject matter experts• Regulatory compliance, audit

• No B2Bi focus, backend ERP expertise• Regionally focused, not global• Limited protocols, no community mgt.• May require corporate banking deal

ERP SAP Oracle Infor

• Large, existing customer base• Reuse entrenched AR/AP modules• Single suite, corporate mandates

• Consulting and software led, expensive• No community enablement• No network, flexible connectivity

BPO/SI EDS Wipro Accenture

• Corporate presence, relationships• Broader managed services initiatives• Low cost in non-core AR/AP processes

• Large, irreversible commitment• Limited market; only for Global 2000• Limited community mgt., B2B expertise

Procurement Ariba VerticalNet Emptoris

• Part of broader spend mgt. platform• Strong reporting, KPIs, BI tools• Hybrid software and services

• Limited integration capabilities• Overlap with existing ERP software• Questionable community management









Bottomline

Top Competitors ReviewTop Competitors Review

BasWareTradeCardXignAriba

Regional Presence• HQ in California• Offices in 22 countries incl. NL,

Be, Cz, Fr, Ch, De, Sp, UK, It• Support 30 lang./66 currencies• Buyers in 115 countries

Market Presence• 16 million POs per year; 4 million invoices per year totaling $15 billion; $120 billion total spend• Revenues $323 million but ~ 90% from sourcing/auctions; Headcount ~1,500• 500 hubs/120K suppliers; 1/3 of Fortune 500; References: Rite Aid, Best Buy, Staples, DuPont,

Kraft, Colgate, Nestle, HP, ABN-AMRO, Visa, American Express, E*Trade, Merrill Lynch

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Weaknesses• Focus on procurement, not general purpose integration• Operate network but requires on-premise software modules• Workflow separate from ERP apps, overlapping• Limited backend integration, adapters only to SAP, Oracle,

PeopleSoft; PS-led implementations• Limited reuse of existing systems (e.g., reporting); assumes

‘rip/replace’ strategy for all AP functions• Limited mid-market focus; target market is Global 2000• Limited VAT compliance, but new focus• Limited protocol support, no map tools, no hosted translation

Key Capabilities• Sourcing, SRM, EIPP, Spend• Procurement outsourcing• Messaging, visibility• Catalog management

Positioning“Ariba Invoice and Payment solutions deliver accurate, streamlined invoicing and payment processes through the automation of inefficient, paper-intensive activities. By leveraging the functionality and reach of the Ariba Supplier Network--the industry's most comprehensive supplier enablement services--Ariba extends beyond the typical payables process to automate supplier interactions.”

• Supplier Network for onboarding• Multi-tenant transaction network processes POs, shipment progress, receipts, invoices and payments

Strengths

• Part of broader Supplier Network, spend management apps

• Extensive event tracking, reporting, BI analytics

• Role-based workflow, rules engine

• Configurable matching, reconciliation (e.g., set tolerances, field conditions, alerts)

• Globalized user interfaces, processes and customer support

• Scalable: 16M POs/yr; 4M invoices/yr totaling $15B; single customer 700K invoices/yr with 2,500 concurrent users

• Critical mass: > 100K registered suppliers


Bottomline


BasWareTradeCardXignAriba

Cites Ariba Invoice “Challenges”:

“Has only been sold to established Ariba customers”

“Invoice is not yet proven in a non-Ariba environment”

“Lack of widely accepted industry standards for invoice, remittance and payment data exchange”

“No proven support for import/tracking of shipping documents, required for most to pay invoices”

“Severely challenged by major vendors of ERP systems”

Urges “Consider Alternatives” To Ariba Invoice When:

“Your enterprise is not an Ariba customer, but wants an integrated order to cash (OTC) solution”

“Ariba Invoice is not a proven solution for enterprises that have invested in non-Ariba contract management or other vendor/invoice management solutions that now want an integrated OTC platform”

“Your enterprise needs an OTC solution with proven payment and remittance processing capabilities”

Who can viably compete with ERP? Best to complement,

extend


Bottomline


BasWareTradeCardXign

(now JPMC)Ariba

Regional Presence• HQ in California• US offices only• JPMC also US, but network

of bank relationships WW

Market Presence• Revenues: ~ $3.5–5.0 million; 82 Headcount (much larger now part of JPMC)• Process est. < 12M invoices per year (2006)• Customers: Claim 42K suppliers; network volume up 300% in 2006 to > $100B cumulative

settled; References include Bristol-Myers Squibb, Honeywell, MetLife, Payless ShoeSource, RadioShack, Southern Company, Sprint, T-Mobile, United Rentals, Verizon Wireless

Key Capabilities• Shared Supplier Network• Order-Invoice-Pay’t apps• Web forms capability• Workflow, exception visibility

Positioning“Xign is the world’s leading business settlement network. Unlike EDI and other fee-based networks, Xign delivers compelling value to suppliers: real-time transaction visibility, delivery of remittance information with all electronic payments, no transaction fees, and the opportunity to get paid faster.”

• Adapters for 50+ ERP apps• Spend, discount management• Service bureau for paper capture• JPMC financial services breadth

Prod

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Weaknesses• No longer a neutral platform; JPMC ownership will cause

friction if customers already using another bank; no longer core focus—tiny slice of many JPMC offerings

• Limited community enablement, even less ongoing mgt.

• No direct global presence, support; 2 customers w/ invoices originating outside US; < 1% of volume; JPMC is a US bank

• No VAT solutions, no apps hosted in Europe (a legal req.)

• Push cash management software apps: $$$ + ERP overlap

• Doesn’t leverage existing systems, workflow

• Not part of broader integration, supply chain platform

Strengths

• Core focus, complete financial services suite with JPMC

• Supplier & payer solutions (AR and AP processes)

• Flexible invoice submission: file upload, PO flip, Web forms

• Broad adapter library and file format support

• Hosted in EDS data centers—perceived reliable, secure

• Robust workflow, approval process for AR and AP

• Flexible, customizable UI… can be hub-branded

• No transaction fees, predictable tiered rates


BottomlineBasWare

Top Competitors ReviewTop Competitors ReviewTradeCard

XignAriba

Target Industries• Retail esp. Sporting Goods• Footwear• Apparel

Market Presence• HQ in New York; local service reps in US, Belgium, Hong Kong, Korea, Japan, Taiwan• Revenues: $14.1 million, assert 48% YOY growth in 2006; Headcount: 100• 24 new hubs in 2006; references include Columbia Sportswear, Brooks Sports, BFD Global, Hi-

Tec Sports, Mitsui & Co., Rasolli Shoes, TAL Apparel, American Sporting Goods, Goody’s • Service resold/private labeled by 12 banks including, formerly, JPMC

Key Capabilities• AR/AP and Financial Mgt. • Multi-tenant hosted service• TP KPIs, reports, audit• Some VAT, dig. signature

PositioningPortray self as enabler of global sourcing, not just payments… “TradeCard is a secure new way to manage procurement-to-payment worldwide: buyers, sellers and partners connect to a hosted, paperless platform. Processes are visible. Innovative financial services unlock savings. Cash flows improve. No capital expenditure required, creating near-term ROI.”

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Weaknesses• Link between payments & SCE a new, unproven focus• Workflow overlaps with existing process engines• Despite templates, each customer is unique implementation

• No adapters to accounting/ERP apps• Custom-built integration takes avg. 6 months+

• Community management—beyond initial on-boarding• Financial viability, reach—analysts have questioned• Scalability not proven vs. GXS 400M invoices/year• Some reconciliation limitations

• No automatic validation or assigning of accounting codes• Does not allow multiple payments against single PO

Strengths• Core focus, solution depth• SCE tools e.g., just added logistics tracking to trade platform• Strong reporting, audit features• 100+ industry templates• Robust workflow, approval process for AR and AP• Claim strong reliability: 99.9% uptime SLA• Strong international deployments

• 85% of invoices processed originate outside US, 40 countries• Multilingual interface, 7 currencies supported

• Claim avg. 95% community adoption rate

• SCE and supplier onboarding• JPMC MC Accenture partners• Spend, discount management• Service bureau for paper capture


BottomlineBasWare

TradeCard


XignAriba

Regional Presence• Finland HQ + 8 subs in EU,US• Offices in 40 countries e.g. Se,

Dk, No, De, Fr, NL, UK, US• Plus 59 VARs in 20 countries• 45% revenue outside Nordics

Market Presence• €60M+ total revenue, profitable, strong top-line growth—80% from EIPP (core focus)• Headcount 533—90% of which dedicated to EIPP• 500,000+ end users at over 1,000 customers spanning 20 countries• 4-5 million invoices per year (Q1 volume up 45% yoy)• Latest wins include Mach Progrator, Sato Oyj, BNP Paribas, Continental AG, Peverel OM Ltd

Key Capabilities• Financial, T&E management• Full purchase to pay tools• Web portal or scans/OCR• Supplier enablement

PositioningBasWare Invoice Automation solutions deliver the advanced automation, process improvements and built-in best practices that add new flexibility and value to your organization’s financial processes. These proven solutions have been enhanced over time, based on extensive input from our global customer base, to become the most cutting-edge invoice-handling solution in the world.

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Weaknesses• Not for small buyers; high TCO

• Hosted options but lead with point-to-point integration

• Complex hardware-software-consulting-led engagements

• Requires BTF clustered hardware purchases to scale

• HW centric; point releases require bringing system down

• Good workflow & modular but not to 3rd party apps; doesn’t leverage existing systems; push entire payments system

• Limited community enablement services, lead with portals

Strengths• Europe EIPP market share leader; pan-European presence

• Globalized interface and support (12 languages)

• Financials, strong growth, strong profits

• Full procure-to-pay suite, deep functionality eg 2-5 way match

• Modular; separate invoicing processing vs. matching apps

• Open API integrates to 80+ ERP, enterprise apps

• Role-based workflow, alerts, KPI reporting dashboards

• Flexible data capture (portal, form) & access (mobile client)

• Broad format support incl. EDI, XML, CSV etc.

• External and internal integration• Procurement solutions• Invoice automation solutions• Hosted options with IGS, Xerox


BottomlineBasWare

TradeCard


XignAriba

Regional Presence• Finland HQ + 8 subs in EU,US• Offices in 40 countries e.g. Se,

Dk, No, De, Fr, NL, UK, US• Plus 59 VARs in 20 countries• 45% revenue outside Nordics

Market Presence• €60M+ total revenue, profitable, strong top-line growth—80% from EIPP (core focus)• Headcount 533—90% of which dedicated to EIPP• 500,000+ end users at over 1,000 customers spanning 20 countries• 4-5 million invoices per year (Q1 volume up 45% yoy)• Latest wins include Mach Progrator, Sato Oyj, BNP Paribas, Continental AG, Peverel OM Ltd

Key Capabilities• Financial, T&E management• Full purchase to pay tools• Web portal or scans/OCR• Supplier enablement

PositioningBasWare Invoice Automation solutions deliver the advanced automation, process improvements and built-in best practices that add new flexibility and value to your organization’s financial processes. These proven solutions have been enhanced over time, based on extensive input from our global customer base, to become the most cutting-edge invoice-handling solution in the world.

Prod

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T)

Weaknesses• Not for small buyers; high TCO

• Hosted options but lead with point-to-point integration

• Complex hardware-software-consulting-led engagements

• Requires BTF clustered hardware purchases to scale

• HW centric; point releases require bringing system down

• Good workflow & modular but not to 3rd party apps; doesn’t leverage existing systems; push entire payments system

• Limited community enablement services, lead with portals

Strengths• Europe EIPP market share leader; pan-European presence

• Globalized interface and support (12 languages)

• Financials, strong growth, strong profits

• Full procure-to-pay suite, deep functionality eg 2-5 way match

• Modular; separate invoicing processing vs. matching apps

• Open API integrates to 80+ ERP, enterprise apps

• Role-based workflow, alerts, KPI reporting dashboards

• Flexible data capture (portal, form) & access (mobile client)

• Broad format support incl. EDI, XML, CSV etc.

• External and internal integration• Procurement solutions• Invoice automation solutions• Hosted options with IGS, Xerox

• BasWare incorporated its Business Transactions (BT) unit as BasWare Einvoices Ltd. on December 1, 2006

• Still software-led but offer hosted capture and delivery services

• Now connects to 3rd party invoicing operators as well as scanning and printing services

• Removes service bureau, workflow, spend management apps to focus fully on electronic transactions, including images

• Pro: Core focus on invoice movement is more flexible to leverage existing AP/invoice processing apps, investments

• Con: Dedicated personnel but only in Nordic countries, limits its global presence advantage; also, new service delivers invoices only in XML; and integration to other apps unproven


Bottomline

TechnologiesBasWare


TradeCardXignAriba

Target Industries• Legal Services, Banking key• Manufacturing• Retail• Property Management• Public Services, Education

Market Presence• HQ in Portsmouth, NH with support offices in UK, ANZ• Revenues: $101.7 million, up 5%; Headcount 210 (123 S/M: 59 US / 61 EMEA / 3 ANZ)• Customers: 9,000 total; 3,000 for hosted payment/invoice automation; 4,000 for legal-corporate

cash mgt.; serves 60 of Fortune-100, 90 of Financial Times-100; 15 of top 25 global banks• References: Fifth Third Bancorp, Gildan, Unity Trust Bank, Rayloc, Hoppe Holding, UTC Power

Key Capabilities• AP, AR, Treasury, Claims, Audit,

Purchasing, Legal Spend Mgt.• End to end procure to pay• Exception-based platform• PO flip capability

Positioning“Bottomline provides collaborative payment and invoice automation solutions to corporations, financial institutions and banks around the world. We streamline, automate and manage processes involving global payments, invoice approval, purchase-to-pay, collections, cash management and document process automation.”

Prod

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Weaknesses• Integration expertise, backend adapters w/o customization

• Community management; on-boarding depth

• Strong EMEA presence, but VAT compliance not clear

• Not part of a broader integration, supply chain platform— but partnered Infosys for larger BPO deals

• Modular but may overlap with existing payments systems

• Protocol support, A2A translation

• Strong in Europe, but not ASPAC

Strengths• Spend management expertise, core focus

• Modular suite, does not require all components

• Built-in dispute resolution, collaboration (but may overlap)

• Exception based platform offers visibility services

• Can submit via EDI, manual web portal, file upload, PO flip

• Will claim “open network” vs. ‘proprietary’ VAN

• Partnerships – with banks and BPO vendors (Infosys)

• Perceived as ‘global’ with large European sales force

• Sprinter platform modules: - Requisition Processing - Invoice Processing - Invoice Capture - Supplier Portal


CrossgateCrossgate

AribaAriba

TradeCardTradeCard

XignXign BasWareBasWare

b-processb-process

Pricing ModelsPricing Models

• Subscription-fee model based on volume & contract length

• No maintenance fee

• Charge as stand-alone service or bundled as full procure-to-pay

• Payment assurance, money movement, export financing, early payment modules extra

• Annual subscription fee based on customer size (revenue)

• License fees cover unlimited transactions (w/ few exceptions)

• Maintenance fees included in annual license/subscription fee

• Bundles all order to pay functionality (not flexible/modular)

• Supplier enablement extra cost• ASP considered high vs. peers

• Choice of ASP subscription or SW licensing

• For SW: min. 1 server license + per user client licenses required

• Entry-level hosted services start at $500/month (min functionality)

• Min. license model is $40,000• Typical license model between

$50,000 and $200,000

• Generally considered to have low ASP but only existing customers

• Transaction pricing is free to Ariba customers

• Based on software license + 20% maintenance fees

• Also annual archive fee dependant on length of time

• Transaction volume pricing

• Discount up to 30% contingent on volume

• Appears to have license components

• Annual MFR 15% of license

• Forrester asserts ASP is lower than BasWare

• Per document volume fee

• Or flat fixed rate

• Simple, predictable pricing and low cost are leading propositions









GXS DifferentiatorsGXS Differentiators

• Solution is part of a broader B2B-SCM platform; broad visibility/reporting• Breaks down traditional SCM and AP process silos; niche vendors sustain, further promulgate

• Flexibility to leverage AP/Spend Mgt. apps, process tools; not overlap or rip/replace• Especially relevant to those already standardized on an ERP or RCM suite

• Existing community of trading partners, including FS institutions

• Flexible community on-boarding AND program management, outsourcing• Stress ‘People’ & ‘Process’, not just ‘Technology’

• Fully hosted, multi-tenant service; many require BTF apps, PS engagements

• Integration depth; forms to hosted translation, broader protocol support, A2A mapping

• Global presence, reach; multilingual support & enrollment

• Vendor viability, proven scale – but “right fit” even for mid-market

• Broadest data quality assurance

• Proven for complex, multinational organizations and supply networks

Primary value propositions are not feature/function…


• Solution is part of a broader B2B-SCM platform; broad visibility/reporting• Breaks down traditional SCM and AP process silos; niche vendors sustain, further promulgate

• Flexibility to leverage AP/Spend Mgt. apps, process tools; not overlap or rip/replace• Especially relevant to those already standardized on an ERP or RCM suite

• Existing community of trading partners, including FS institutions

• Flexible community on-boarding AND program management, outsourcing• Stress ‘People’ & ‘Process’, not just ‘Technology’

• Fully hosted, multi-tenant service; many require BTF apps, PS engagements

• Integration depth; forms to hosted translation, broader protocol support, A2A mapping

• Global presence, reach; multilingual support & enrollment

• Vendor viability, proven scale – but “right fit” even for mid-market

• Broadest data quality assurance

• Proven for complex, multinational organizations and supply networks

GXS DifferentiatorsGXS Differentiators

All improve customer ability to enable entire

community quickly, easily—improving time

to value, returns

Primary value propositions are not feature/function…


Relative PositioningRelative Positioning

vs. Niche Invoice, Settle

+ +

- -

• AP specialists, niche process knowledge

• Targeted apps, feature/functions

• Deep matching, data validation

• Community enablement

• Company size, stability, proven scale

• Fully hosted

• Extend and complement ERP vs. replace

• Community program mgt., outsourcing

• Full automation vs. manual portal input

• Global infrastructure, reach

1. Total B2B integration platform

2. Leverage existing investments

3. Existing community of trading partners

4. Community on-boarding, management

5. Fully hosted, multi-tenant service

6. Integration expertise, depth

7. Global reach, multilingual support

8. Vendor viability

9. Data quality assurance

10. Proven scale, ability to execute globally

Top GXS Differentiators


Relative PositioningRelative Positioning

1. Total B2B integration platform

2. Leverage existing investments

3. Existing community of trading partners

4. Community on-boarding, management

5. Fully hosted, multi-tenant service

6. Integration expertise, depth

7. Global reach, multilingual support

8. Vendor viability

9. Data quality assurance

10. Proven scale, ability to execute globally

Top GXS Differentiators vs. ERP

+ +

- -

• AR/AP functionality, workflow

• Deep matching, reconciliation

• Reporting, BI facilities

• Mind-share, marketing, R&D resources

• Single suite vs. multiple providers

• One-to-many vs. ‘integration spaghetti’

• Total cost of ownership

• Automate invoice capture from diverse TPs

• B2B expertise vs. internal

• On-demand speed, flexibility; reach all TPs

• Community on-boarding, management


Differentiating QuestionsDifferentiating Questions

Laying landmines with the customer…

Are you interested in learning how your existing B2B investments can save you money in invoicing? Or would you rather introduce

another network?

Do you have globally distributed buyers or

suppliers? If not today, maybe in the future?

Do you already have ERP and AP tools and processes? Would you rather leverage existing investments or duplicate them to support a single

process?

Is your bank proven effective for non- banking services?

Are you faced with multiple doc formats and comms protocols—

your suppliers? Do they change? Is it important that your solution shield the risk and costs association with these changes?

Can you manage suppliers in the US,

in Asia? Across multiple languages, time zones, format

standards, tax regs?

Once your suppliers are enabled, do you have to

take over the help desk and program management

services? Do you have the full time staff and $$$ to

support this?

Are alternative solution vendors, software options,

certified compliant with VAT requirements? In how many

countries? Will they keep up with new, changing VAT

requirements?

Are you interested in fast implementation and time to

ROI—without distracting your IT staff? Do you have the staff to implement new

software, hardware?


Competitor Claims

Overcoming Competitor MythsOvercoming Competitor Myths

GXS Response

GXS is just an EDI VAN; it is not specialized for business needs, like AP processes

VANs are not needed; you can use the Internet for free or run your own software with existing IT staff

GXS-VZB do not offer a single-vendor solution; you will have to call multiple vendors for support

GXS-VZB offer limited functionality e.g. payments reconciliation; ranked low in analyst EIPP reviews

It will take considerable time, resource, cost to integrate GXS IDS platform with AP, payments, ERP

GXS serves only large buyers; it is not for the mid- market or for suppliers

GXS is not investing in the network—only serving its debt; Trading Grid is a new face on old technology

Trading Grid is dependant on webMethods; GXS is not in control of the solution… may go sour with SAG

GXS has service reliability issues

GXS is US-focused with unclear EMEA commitment; they may retrench from Europe, sell off assets

GXS led evolution of the VAN to business process networks; TG07 is an event-driven business integration platform to extend internal apps with best in class solution partners

Internet and IT staff are not free; industry TCO studies show cost of P2P integration: set up, maintain, upgrade, add protocols, test, deploy, help desk—does this add value?

GXS-VZB offer a best of breed solution that goes further to consolidate, lower costs with network and supply chain managed services; delivers single face to customer

GXS delivers a core focus on invoice delivery, not bill presentment/payment; we enable you to leverage existing AP and workflow investments—not replace, duplicate

Fully hosted service is faster and easier to integrate; we are the integration experts for disparate systems, processes; broadest any-to-any translation; more scale in mapping

GXS delivers both buyer and supplier solutions & pricing; we bring unique focus on SMBs, offer flexible tools (Web Forms, Accounting Accelerators), bundled pricing etc.

GXS invest >$30M in R&D per year, all for on-demand integration (the Grid); TG 2007 is a $100M investment in features & infrastructure; investments dwarf our peers’

GXS acquired Fabric code with full access rights; we have > 350 developers building new/enhancing code; relationship remains strong; use BOB vs. reinvent the EAI wheel

Interconnects show that all networks have outages; TG07 represents the largest HA investment; analysts assert GXS sets the mark; have more platforms as global leader

We remain fully committed to the region and lead with global presence as top benefit; EMEA ~30% of total revenue; GI buy, recent SAG-WM deal build local presence/focus

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Gartner Magic Quadrant Integration Service Providers Gartner Magic Quadrant Integration Service Providers

Gartner, the leading independent industry analyst firm, asserts:

• “GXS' strengths include its large and unmatched global presence, user base and total revenue stream, and its viable Trading Grid strategy and platform.”

• “In 2005, GXS completed the acquisition of G International (the IBM VAN assets), a move that increased its global operations presence, customer base and integration service provider revenue.”


March 2007 – Current Analysis’ Highest Rankings Recognition for Latest Major Product Releases March 2007 – Current Analysis’ Highest Rankings Recognition for Latest Major Product Releases

Current Perspective

Market Perspective

Market Impact

Very Positive

Very High

Very High

GXS Awarded Current Analysis’Highest Rankings

“GXS Trading Grid 2007 Moves GXS Substantially Ahead of its Competition”


Other Analyst AccoladesOther Analyst Accolades

“GXS' strengths include its large and unmatched global presence, user base and total revenue stream, and its viable Trading Grid strategy and platform”

“GXS is the world's largest integration service provider, offering a wide range of supply chain integration services…”

“GXS has positioned itself to become a leading B2B solutions provider. GXS has strategically acquired and collaborated to provide significant value propositions to its Trading Grid platform quickly”

“By collaborating with best-of-breed solutions vendors, GXS quickly established a platform that can easily extend a company and its trading partners further along the supply chain collaboration frontier”


“GXS is the largest established global provider of EDI… The firm’s global operations are a major differentiator”

“TG07 moves GXS substantially ahead of its competition in terms of network performance, scalability and availability… solidifies the company’s leadership position within the B2B integration marketplace”


Thank You

Documents

Invoice Delivery Service Competitive Landscape Revie · Invoice Delivery Service Competitive Landscape Review ... c u s. H o m e m ... and the opportunity to get paid faster