An Electronic Invoicing Maturity Model: P2P, Data and Systems Linkages (Part 1)

In a recent Spend Matters Compass Series Paper E-Invoicing Comes of Age -- Discovering What's Possible From the Latest Electronic Invoicing/ Invoice Automation Capabilities, we incorporated a relatively basic, three-stage graphical maturity model for organizations to consider in assessing both their current capabilities as well as what they can expect as they become more sophisticated down the line. We suggest that in general, the opportunity to move between each level (e.g., Level 1 to Level 2) comes with a similar opportunity to improve the ultimate financial and operational outcomes of the business. Put another way, when it comes to electronic invoicing, the incremental benefits from moving to more advanced stages of maturity come with an additional linear set of benefits and returns, suggesting that organizations chart a multi-year electronic invoicing course to achieve outcomes rather than just measuring the results of putting in a system after it is deployed to the wider organization.

In Spend Matters maturity model for electronic invoicing and invoice automation, we consider five distinct areas as a means of self-assessment:

1. Organizational structure
2. Technology environment
3. P2P, data and systems linkages
4. Discounting and payment
5. Supplier enablement

In a series of posts, we'll consider factors and examples driving maturity levels across each of these five areas, starting first today with P2P, data and systems linkages.

When it comes to P2P, data and systems linkages, organizations at the base or foundational (Level 1) stage of maturity often treat e-invoicing as an extension of eProcurement. It's rarely, if ever, a stand-alone initiative and organizations often have limited stewardship and coordination of systems efforts across functions. As a result, the level of true automation in these programs is often limited and scan/capture is often used as a "good enough" proxy to accelerate program metrics. As organizations move up to intermediate or Level 2 maturity, their P2P, data and systems linkages often begin to extend beyond eProcurement, capturing depth in direct and services spend areas.

For more on P2P, check out our latest free Compass research in the area:

A Foundational Look at P2P Technologies

E-Invoicing Comes of Age - Discovering What's Possible From the Latest Electronic Invoicing / Invoice Automation Capabilities

Jason Busch