Back to Hub

Invoice-to-Pay Tech Selection and the Turn-Key Persona: Analysis & Commentary

01/16/2020 By

The market for invoice-to-pay solutions, much like e-procurement, has grown in size and relevance to procurement organizations in recent years. We even expect the I2P market will begin to rival the EDI-based world in the 2020s, eventually overtaking it.

Despite this rapid growth, the total number of providers in this space will likely remain relatively small. As leading I2P solutions continue to grow their supplier networks, their increased clout, based on their ability to connect more and more buyers and suppliers, will impede new providers from breaking into the larger I2P market.

Yet competition will come from other fronts.

Procure-to-pay solution vendors, for example, have begun to invest significantly in developing the I2P half of their suites, rounding out transactional shopping/ordering capabilities with functionality for invoice processing and, in some cases, basic payments support. This could create competitive pressure on I2P specialists in tech selection scenarios where access to end-to-end P2P capabilities are an important criterion.

Similarly, AP automation solutions are taking a bite out of a different customer base altogether: the long underserved middle market. Small and medium-size businesses are increasingly seeing benefits to adopting software that automate invoice receipt, capture and validation processes (sometimes inclusive of payments execution), yet these customers also seem to be satisfied with an 80%, “good enough” solution in terms of functionality. This creates a new competitive dynamic for I2P solutions looking to move down market, as decisive tech selection criteria may revolve more around usability and collaboration features than supplier network breadth.

Given these different competitive fronts and the evolving needs of this market, how can companies with different technology requirements evaluate invoice-to-pay solutions amid an array of vendors with varying degrees and kinds of capabilities?

Spend Matters’ SolutionMap accounts for these differences using a persona-based approach. Each SolutionMap persona is calibrated to weight evaluation requirements so that it reflects the profile of certain kinds of buyers. For example, the “Nimble” persona reflects small and medium-size businesses that prioritize fast time-to-value and ease of use in the selections; the “CIO Friendly” persona emphasizes technical foundation and interoperability with other enterprise systems to make for a straightforward implementation.

So, what do SolutionMap personas look at in the Invoice-to-Pay rankings, and how can they help your organization make better technology decisions?

In this Spend Matters PRO series, we’ll analyze the invoice-to-pay market using our five I2P personas: Nimble, Deep, Turn-Key, Configurator and CIO Friendly. (See persona definitions* below.)

This review is organized just like our RFI for SolutionMap, according to these topics: platform capabilities, services, features & functionalities, and customer value.

Let’s look at the invoice-to-pay features and vendors as viewed by the Turn-Key persona.

This article requires a paid membership that has access to AP Automation / Invoice-to-Pay.
Please log in or create an account to view this article