E-Invoicing Market in Europe 2012-2016

2012-2016
E-Invoicing Market in Europe

technavio insights
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2012-2016
2012-2016 E-Invoicing Market in Europe

01. Executive Summary.................................................1
02. Scope of the Report.................................................3
02.1 Market Overview ........................................................................ 3
02.2 Product Offerings ........................................................................ 3
03. Market Research Methodology ............................4
03.1 Market Research Process ........................................................ 4
03.2 Research Design ......................................................................... 4
03.3 Research Methodology ............................................................ 5
04. List of Abbreviations ................................................6
05. Introduction ..............................................................7
06. Market Landscape ..................................................9
06.1 E-invoicing Market in Europe as a Segment of
the Global E-invoicing Market ............................................... 9
06.2 Market Size and Forecast....................................................... 11
06.3 Five Forces Analysi s ................................................................. 13
07. End-user Segmentation by Company Size ...... 14
08. Key Leading Countries......................................... 15
08.1 UK .................................................................................................. 15
08.2 Germany ..................................................................................... 15
08.3 Denmark ..................................................................................... 16
09. Buying Criteria ....................................................... 17
CONTENTS

2012-2016
10. Market Growth Drivers ......................................... 18
11. Drivers and their Impact ...................................... 20
12. Market Challenges ............................................... 21
13. Impact of Drivers and Challenges ..................... 23
14. Market Trends ........................................................ 24
15. Trends and their Impact....................................... 26
16. Vendor Landscape............................................... 27
16.1 Competitive Scenario ............................................................. 27
16.2 Market Share Analysi s 2012 .................................................. 27
16.3 Other Prominent Vendors....................................................... 29
17. Key Vendor Analysis ............................................ 31
17.1 Ariba Inc. .................................................................................... 31
17.1.1 Business Overview.......................................................................... 31
17.1.2 Business Segmentation .................................................................. 32
17.1.3 Product Portfolio ............................................................................ 33
17.1.4 Key Information ............................................................................. 33
17.1.5 SWOT Analysis ................................................................................ 34
17.2 Basware Corp. ........................................................................... 35
17.2.3 Key Information ............................................................................. 37
17.2.4 SWOT Analysis ................................................................................ 38
17.3 Esker SA ....................................................................................... 39

2012-2016
17.3.3 Key Information ............................................................................. 42
17.3.4 SWOT Analysis ................................................................................ 43
17.4 Tieto Oyj ...................................................................................... 44
17.4.3 Key Information ............................................................................. 46
17.4.4 Sales by Industry Segment ............................................................. 46
17.4.5 Sales by Service Segment.............................................................. 47
17.4.6 SWOT Analysis ................................................................................ 48
18. Other Reports in this Series .................................. 49


2012-2016

Exhibit 1: Market Research Methodology..........................................4
Exhibit 2: E-invoicing Market in Europe as a Segment of
the Global E-invoicing Market 2012 ..................................9
Exhibit 3: E-invoicing Market in Europe 2012-2016 (US$
billion)...................................................................................11
Exhibit 4: E-invoicing Market in Europe by End-user
Segmentation Based on Company Size 2012 ................14
Exhibit 5: E-invoicing Market in Europe by Vendor
Segmentation 2012.............................................................28
Exhibit 6: Business Segmentation of Ariba Inc.................................32
Exhibit 7: Product Portfolio of Ariba Inc. ...........................................33
Exhibit 8: Business Segmentation of Basware Corp. .......................36
Exhibit 9: Product Portfolio of Esker SA..............................................40
Exhibit 10: Business Segmentation of Esker SA ..................................41
Exhibit 12: Business Segmentation of Tieto Oyj .................................45
Exhibit 13: Sales of Tieto by Industry Segment...................................46
Exhibit 14: Sales of Tieto by Service Segment ...................................47

EXHIBITS

1
01. Executive Summary
Market Revenue
(US$ billion)
Market Growth Rate (%) CAGR (%)
2012 2016 2012 2016 2012-2016
1.56 2.82 15.00 16.53 15.95

Key Leading Countries 2012 (%)
UK 12-14
Germany 9-11
Denmark 6-8

Key Customer Segments 2012 Key Buying Criteria
Large Enterprises 76.58 Affordability
SMEs 23.42 Usability
Reliability
Security


2
Key Market Drivers Key Market Challenges Key Market Trends
Need to Automate Invoicing
Process and Reduce
Operational Costs
Complexity Involved in
Electronic Purchasing Process
Emergence of Cloud
Computing
Need for Improved Business
Productivity
Lack of Internal Cross-
functional Collaboration
Increasing Demand from
Several Sectors
Increased Adoption of E-
invoicing by SMEs
Lack of Employee Training Need to Converge Vendor
Capabilities
Need to Reduce Overall Time
to Market
Data Security Concerns Stringent E-invoicing
Regulations
Language Barrier

Competitive Landscape
Key Vendors 2012 Market Share (%)
Basware Corp. 7-9
Ariba Inc. 4-6
Esker SA 3-5
Tieto Oyj 2-3


3
02. Scope of the Report
02.1 Market Overview
This report covers the present scenario and the growth prospects of the E-invoicing market in
Europe for the period 2012-2016. To calculate the market size, the report considers revenue
generated by e-invoicing service providers in Europe. The report also presents the vendor
landscape and a corresponding detailed analysis of t he top four vendors in the market. In
addition, it discusses the major drivers that influence the growth of the E-invoicing market in
Europe. It also outlines the challenges faced by the vendors and the market at large, as well as
the key trends that are emerging in the market.
02.2 Product Offerings
Some of the products offered by the major vendors in the E-invoicing market in Europe are listed
below:
Company Products Offered
Ariba Inc. Ariba Invoice Presentment and Payment
Basware Corp. Basware E-invoicing
Basware Invoice Automation
Esker SA Esker DeliveryWare
Tieto Oyj Tieto E-invoicing


4
03. Market Research Methodology
03.1 Market Research Process
TechNavio identifies the key opportunities in leading markets and develops various
methodologies for data collection and analysis. The micro, meso, and macroeconomic
indicators of the market are studied to ascertain the dynamics of the market.

03.2 Research Design
TechNavios reports are based on in-depth qualitative and quantitative analyses of several
markets. The qualitative analysis involves the application of a variety of projection and sampling
techniques, whereas the quantitative analysis involves primary interviews, surveys, and vendor
briefings. The data thus gathered is validated through experts' opinions. Based on research
results and technical insights, TechNavio analysts refine the existing methodologies to analyze
the individual aspects of the market.
Exhibit 1: Market Research Methodology

Source: TechNavio Analysis
E-inv oicing Market in
Europe 2012-2016

5
TechNavio analysts gather inputs from vendors and industry experts and verify the information
collected with databases, financial reports, industry papers, and other secondary sources. The
impact of global economic conditions and other macroeconomic indicators are also
considered while assessing the market.
03.3 Research Methodology
TechNavio analysts have adopted primary as well as secondary research techniques to
ascertain the size and vendor landscape of the E-invoicing market in Europe. The information
has been obtained using a combination of the bottom-up and top-down approaches and in-
house market modeling tools. The data has then been corroborated with data obtained from
market participants and stakeholders across the value chain, including vendors, service
providers, distributors, re-sellers, and end-users.


6
04. List of Abbreviations
APAC - Asia Pacific
EMEA - Europe, Middle East, and Africa
MEA - Middle East and Africa
PDA - Personal Digital Assistant
SaaS - Software as a Service
SMEs - Small and Medium-sized Enterprises


7
05. Introduction
E-invoicing is the exchange of bills and related invoice documents between enterprises and
their clients in an integrated electronic format, usually using the internet. Also known as e-billing,
e-invoicing is a part of electronic data interchange transactions that include data from the
enterprise in a format that can be integrated into the client's financial system without the
interference of a financial administrator. Enterprises are increasingly using e-invoicing solutions to
simplify and automate the process of creating, sending, and receiving invoices. E-invoicing
offers a cost-effective solution that eliminates paper-based manual invoicing and replaces it
with a more reliable and faster invoicing system.
The E-invoicing market in Europe was the largest market in the Global E-invoicing market in 2012.
The key leading countries in the market are the UK, Germany, and Denmark. The market is highly
fragmented with just a few dominant players. Some of the leading players in this market are
Ariba Inc., Basware Corp., Esker SA, and Tieto Oyj. The E-invoicing market in Europe is expected
to grow at a CAGR of 15.95 percent during the period 2012-2016.
The growth of the E-invoicing market in Europe is driven by many factors. One of the major
drivers in the market is the need to automate the invoicing process and reduce operational
costs. E-invoicing enables companies to automate invoice generation and enhance the overall
business process. It also reduces the total operational cost s and the time spent on the
purchasing process. Another key driver in the market is the need for improved business
productivity.
Despite the presence of strong drivers, the growth of the E-invoicing market in Europe is curtailed
by some serious growth inhibitors. The complexity involved in an electronic purchasing process is
one of the major challenges confronting the market. The integration of e-invoicing solutions with
existing business systems such as accounting and human resources systems can be more
complex than anticipated. Another major challenge in the market is the lack of internal cross-
functional collaboration.
Despite the presence of serious challenges, the E-invoicing market in Europe is expected to grow
moderately due to the presence of certain emerging trends that could negate the effect of the
challenges to some extent. One such trend is the emergence of cloud computing. Enterprises
across the globe are increasingly adopting cloud computing for their requirements. Enterprises
have discovered the cost benefits associated with adopting cloud-based services, as they offer
various advantages such as rapid scalability, easy access, uninterrupted service, and flexibility.
These factors are responsible for the higher adoption of cloud services, and organizations are

8
slowly moving their products and services into cloud storage systems. Another major trend in the
market is the increasing demand from several sectors. Thus, the combined effect of various
emerging trends is expected to have a positive impact on the E-invoicing market in Europe
during the forecast period.


9
06. Market Landscape
06.1 E-invoicing Market in Europe as a Segment of the Global E-invoicing
Market
The Global E-invoicing market was valued at US$3.4 billion in 2012. Europe dominated the Global
E-invoicing market with a share of 45.88 percent. The main reason for the increased adoption of
e-invoicing solutions in Europe is the need for improved business productivity. Enterprises in
Europe are not only archiving their traditional accounting, human resources, sales, and
production records, but they are also storing web pages, e-mails, interactive and collaboration
records, images, presentations, documents, and spreadsheets. Content that was previously
recorded in hard copies is increasingly being scanned, digitized, and stored in digital content
storage and archival systems to reduce paperwork and improve workflow. E-invoicing has
gained importance because organizations can organize and reuse customer -related
information across their business to increase productivity and efficiency and ensure secure
record retention.
Exhibit 2: E-invoicing Market in Europe as a Segment of the Global E-invoicing
Market 2012

The E-invoicing market in the Americas accounted for 37.00 percent of the global market in
2012. The Americas contributed US$1.26 billion to the market in 2012. The Americas was followed

10
by the APAC region with a market share of 9.00 percent. Although the E-invoicing market in the
APAC region is still in its nascent stage, it is growing at a rapid pace and is expected to
dominate the Global E-invoicing market in the next few years. In 2012, the APAC region
accounted for a 9.00 percent share of the market and generated US$0.31 billion from sales of e-
invoicing solutions. Some of the factors that are propelling the growth of the E-invoicing market
in the APAC region are the need for organizations to reduce the cost of invoicing, the increasing
number of acquisitions by existing e-invoicing vendors, the increased awareness about e-
invoicing, and the increasing demand for these solutions in emerging markets such as China and
India. The MEA region accounted for an 8.12 percent share of the global market in 2012.


11
06.2 Market Size and Forecast
The E-invoicing market in Europe was valued at US$1.56 billion in 2012 and is expected to reach
US$2.82 billion by 2016, growing at a CAGR of 15.95 percent during the period 2012-2016. In 2012,
the market grew at an annual rate of 15.00 percent. The increased focus on reducing carbon
footprints and increased use of green technologies are the drivers in the current business
environment. E-invoicing caters to these factors by significantly reducing the usage of natural
resources such as paper and increasing the efficiency of business processes. However, the
market is expected to witness an increase in its growth rate. The market will grow at a rate of
15.38 percent in 2013 and 15.56 percent in 2014, and it is expected to witness an improvement in
its growth rate and grow at a rate of 16.35 percent in 2015 and 16.53 percent in 2016.
Exhibit 3: E-invoicing Market in Europe 2012-2016 (US$ billion)

Many enterprises are realizing the importance of using e-invoicing in their business operations.
Enterprises are discovering that they need e-invoicing to enhance the overall purchasing and
payment processes. SMEs, large enterprises, and government organizations are the major end-
users in the market. E-invoicing helps enterprises reduce the costs associated with, and improve
the efficiency of, the invoicing process. While some of the vendors in the market are offering
standalone software products, others are offering embedded solutions as part of their business
suites.

12
In addition, there has been an increase in awareness among consumers about the various
products and services available in the market, and consumers are becoming more
sophisticated than ever. Customers are also increasingly using the internet not only for
entertainment and information, but also to make purchases online. Hence, to meet the
requirements of these customers, companies are shifting their marketing focus from a product-
centric approach to a consumer-centric approach. This encourages companies to adopt e-
invoicing solutions to provide their target audience with a more sophisticated purchasing
experience in real time.


13
06.3 Five Forces Analysis

Threat of Rivalry
(High)
There is intense competition
among the existing players to
provide better services
based on the needs of end-
users.
Bargaining Power of
Suppliers
(Low)
The consolidation trend
among e-invoicing vendors
has reduced the bargaining
power of suppliers.
Bargaining Power of
Buyers
(High)
As the market is fragmented,
buyers have a number of
options to choose from.
Threat of New Entrants
(Medium)
New vendors offering
innovative additional features
within the e-invoicing platform
represent a threat to the
existing vendors in the market.
Threat of Substitutes
(Medium)
There is no direct substitute
for e-invoicing services.
However, companies can
opt for traditional paper-
based invoicing services.

14
07. End-user Segmentation by Company Size
Large enterprises are the major end-users of e-invoicing solutions in Europe. The Large Enterprises
segment accounts for the majority of the revenue in the E-invoicing market in Europe. In 2012,
this segment accounted for 76.58 percent of the market.
The need to reduce carbon footprints has increased the usage of e-invoicing among large
enterprises. Further, e-invoicing enhances the collaboration among the different business
processes and helps in compiling data to obtain the desired outcome. As a result, the carbon
footprint of enterprises is reduced. A slight increase in the adoption of e-invoicing reduces the
usage of approximately 700,000 trees, which in turn reduces carbon dioxide emissions. Such
environmental benefits boost the corporate social responsibility programs of user organizations.
Exhibit 4: E-invoicing Market in Europe by End-user Segmentation Based on
Company Size 2012

The SMEs segment held a significant share in this market in 2012 and is growing at a high rate. In
2012, this segment accounted for 23.42 percent of the E-invoicing market in Europe. With the
advent of cloud computing technology that offers huge storage space for structured invoice
data, cloud-based e-invoicing solutions are increasingly being deployed by SMEs.


15
08. Key Leading Countries
The leading countries in the E-invoicing market in Europe 2012 are shown below:

08.1 UK
The stringent e-invoicing regulations of the government are the major factors that drive the E-
invoicing market in the UK. However, the complexity involved in the e-invoicing process is a
major hindrance to the growth of this market.

08.2 Germany
The need to enhance the invoicing process drives the E-invoicing market in the Germany.
However, the increased competition among the vendors in this market poses a significant
challenge to its growth.
Major Driver
Stringent E-invoicing
Regulations of the
Government
Major Challenge
Complexity Involved in
E-invoicing Process
Major Trend
Increased Adoption by
SMEs
UK
12-14 percent
Germany
9-11 percent
Denmark
6-8 percent

16

08.3 Denmark
The fact that e-invoicing has been made mandatory by the government drives the E-invoicing
market in Denmark. However, difficulty in selecting the right solution from a wide variety of
options hampers the growth of this market considerably.

Major Driver
Need to Enhance
Invoicing Process
Major Challenge
Intense Competition
among Vendors
Major Trend
Increase in Mergers and
Acquisitions
Major Driver
E-invoicing Made
Mandatory by the
Government
Major Challenge
Difficulty in Selecting the
Right Solution from a
Wide Variety of Options
Major Trend
Entry of New Vendors

17
09. Buying Criteria
Parameter Details End-user Segments Significance Attached
Affordability
The price of the solutions
and their associated
services should be
affordable
SMEs

Large Enterprises

Government
Organizations

Usability

The solutions should be
easy to use and have self-
explanatory applications
and interfaces
SMEs

Large Enterprises

Government
Organizations

Reliability
The integrity and the
consistency of the
solutions and all their
transactions
SMEs

Large Enterprises

Government
Organizations

Security
The ability of the solutions
to provide a secure and
safe infrastructure
environment
SMEs

Large Enterprises

Government
Organizations

Key
The impact of the buying criteria is graded on the basis of the intensity and the duration of their
impact on the current market landscape. The magnitude of the impact has been categorized
as described below:
Low - Negligible or no impact on the market landscape
Medium - Medium-level impact on the market
High - Very high impact with radical influence on the growth of the market
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5

18
10. Market Growth Drivers
The growth of the E-invoicing market in Europe is driven by many factors. One of the major
drivers in the market is the need to automate the invoicing process and reduce operational
costs. E-invoicing enables companies within or across organizations to automate invoice
generation and enhance the overall business process. It also reduces the total operational cost s
and the time spent on the purchasing process. Another key driver in the market is the need for
improved business productivity.
Some of the major drivers in the E-invoicing market in Europe are discussed below:
Need to Automate Invoicing Process and Reduce Operational Cost s
Need for Improved Business Productivity
Increased Adoption of E-invoicing by SMEs
Need to Reduce Overall Time to Market
Need to Automate Invoicing Process and Reduce Operational Cost s
One of the main drivers of the E-invoicing market in Europe is the need to automate the
invoicing process. E-invoicing enables companies within or across organizations to automate
invoice generation and enhance the overall business process. It eliminates paper processing,
reduces failed payments and processing errors, accelerates the purchasing process, and
improves customer relations. Hence, e-invoicing reduces the total operational cost s and the
time spent on the purchasing process. This indirectly helps in increasing the production rate.
Need for Improved Business Productivity
The increased need to improve business productivity and gain competitive advantages such as
optimization of capacity, reduction of lead time and cost, and increased profit through
developing IT infrastructure are the major factors propelling the market forward. E-invoicing
solutions improve an organizations processes by improving quality control and inventory control;
this in turn improves the productivity and efficiency of the firm. As a result of the increased
importance of scalable IT systems, enterprises are looking for business solutions that can
accelerate the growth of an organization. In the last few years, some companies have
deployed e-invoicing solutions that integrate with the organization's enterprise resource planning
systems and help them improve efficiency and productivity, which in turn helps them meet their
business demands very quickly and remain competitive.

19
Increased Adoption of E-invoicing by SMEs
Earlier, SMEs had limited options when seeking to adopt a system that would ensure optimal
business performance. This was because they did not require or could not afford all the features
of enterprise-class systems. Their options were limited to freeware, low-end or open-source
solutions that mainly focused on server or network monitoring. In the last few years, many SMEs
have become increasingly aware of the significance of having a solution that preserves their
brand reputation and enhances the business process. Some new vendors in the e-invoicing
space are aware of this opportunity, and they have recently entered t he market with offerings
that are positioned to capitalize on this trend. The combination of these new vendors' pricing
models and the capabilities and ease of management that their solutions offer makes these
products appealing, especially to SMEs.
Need to Reduce Overall Time to Market
In the modern business environment, the delivery of a product or a service by an organization
involves the interaction of several internal departments, which consumes a lot of time. An
effective e-invoicing solution can help organizations reduce the time required for service
delivery. Moreover, improving the time to market necessitates the streamlining of critical business
processes which involve communication and collaboration among employees, customers,
suppliers, and partners. An e-invoicing solution enables companies to get a comprehensive view
of documents in real time, thereby helping them share information, discuss issues, and provide
solutions in much less time.


20
11. Drivers and their Impact
Driver
Impact on End-user Category
SMEs Large Enterprises
Government
Organizations
Need to Automate
Invoicing Process and
Reduce Operational Costs

Need for Improved
Business Productivity

invoicing by SMEs

Need to Reduce Overall
Time to Market

Drivers
Impact on Geography
UK Germany Denmark
Need to Automate
Invoicing Process and
Reduce Operational Costs

Need for Improved
Business Productivity

invoicing by SMEs

Need to Reduce Overall
Time to Market

Key
The impact of the drivers is graded on the basis of the intensity and duration of their impact on
the current market landscape. The magnitude of the impact has been categorized as
described below:
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5
Low High
1 2 3 4 5

21
12. Market Challenges
Despite the presence of strong drivers, the growth of the E-invoicing market in Europe is curtailed
by some serious growth inhibitors. The complexity involved in an electronic purchasing process is
one of the major challenges confronting the market. The integration of e-invoicing solutions with
existing business systems such as accounting and human resources systems can be more
complex than anticipated. Another major challenge in the market is the lack of internal cross-
functional collaboration.
Some of the major challenges in the E-invoicing market in Europe are discussed below:
Complexity Involved in Electronic Purchasing Process
Lack of Internal Cross-functional Collaboration
Lack of Employee Training
Data Security Concerns
Language Barrier
Complexity Involved in Electronic Purchasing Process
Creating and maintaining product data electronically and enabling suppliers to support
electronic transactions increase the complexity of the purchasing process. Generally, there is a
limitation in the ability of e-invoicing to address various types and ranges of purchasing activities.
Organizations are facing difficulty in managing electronic catalogs with thousands of products
and providing employees with the right mix of products and sufficient information about them.
The process of providing employees with access to product -related information can be
complicated because it necessitates the use of additional tools. In addition, the integration of e-
invoicing solutions with existing business systems such as accounting and human resources
systems can be more complex than anticipated.
Lack of Internal Cross-functional Collaboration
In order for an e-invoicing solution to be effective, various departments in an organization such
as IT, finance, marketing, and human resources need to work in collaboration with each other
and contribute equally to e-invoicing. The inability of various departments to cooperate with
each other results in decreased visibility of operations. This leads to poor business results. This lack
of internal collaboration is a challenge for organizations when there is increased need to
maintain good collaboration among cross-functional departments for business success.

22
Lack of Employee Training
Many companies do not opt for e-invoicing because of the constant need to train employees.
Several organizations do not budget for training as a part of their process of adopting e-
invoicing solutions. In some cases, systems have gone unused as employees continue work ing
on their older systems, including paper-based systems. Thus, proper training of employees is
required to ensure the efficient utilization of e-invoicing solutions. In addition, the market vendors
are coming up with value additions; although this may increase the efficiency of the solutions, it
also necessitates additional training of staff. Hence, thorough training requirements sometimes
deter end-users from opting for e-invoicing.
Data Security Concerns
The security of customer data in e-invoicing is a key component. It is necessary to assign access
permission to specific groups so that alteration and modification of access to customers '
documents in the system is restricted. Enterprises are always concerned about their data security
and related issues when using e-invoicing solutions. This concern is greater when the tool is
installed using SaaS-based solutions. During the deployment of SaaS-based e-invoicing solutions,
the customer data resides in the cloud servers of vendors, which increases the security concerns.
In a multi-tenant model, there is always a risk of information leakage, which could result in the
misuse or manipulation of data. For organizations, the security of customer data is a vital aspect
of cloud infrastructure and applications. In addition, many enterprises are concerned about
data loss and misuse by IT professionals who install the tools. Data security and privacy are a big
concern for many organizations. Hence, it is very important for SaaS-based e-invoicing vendors
to provide strong security solutions for storing and managing the confidential data related to
customers.
Language Barrier
Language is the most obvious element of cultural diversity. There are 23 languages in Europe.
Therefore, the business language of organizations in Europe is different. For instance, some
European countries such as Switzerland, France, and Germany find difficulty in using English as a
business language. In Europe, the business language of many large enterprises is English, while
their suppliers find it difficult to embrace English because of the diversity in language used on
invoices. Therefore, this is one of the major challenges confronting the E-invoicing market in
Europe.


23
13. Impact of Drivers and Challenges

Key
The impact of the drivers and challenges is graded on the basis of the intensity and duration of
their impact on the current market landscape. The magnitude of the impact has been
categorized as described below:
Moderately High - Significant impact on the growth of the market


24
14. Market Trends
Despite the presence of serious challenges, the E-invoicing market in Europe is expected to grow
moderately due to the presence of certain emerging trends that could negate the effect of the
challenges to some extent. One such trend is the emergence of cloud computing. Enterprises
across the globe are increasingly adopting cloud computing for their requirements. Enterprises
have discovered the cost benefits associated with adopting cloud-based services, as they offer
various advantages such as rapid scalability, easy access, uninterrupted service, and flexibility.
These factors are responsible for the higher adoption of cloud services, and organizations are
slowly moving their products and services into cloud storage systems. Another major trend in the
market is the increasing demand from several sectors.
Some of the major trends emerging in the E-invoicing market in Europe are discussed below:
Emergence of Cloud Computing
Increasing Demand from Several Sectors
Need to Converge Vendor Capabilities
Stringent E-invoicing Regulations
Emergence of Cloud Computing
The emergence of cloud-based solutions has enabled organizations to increase their efficiency
and reduce the cost of setting up valuable IT infrastructure. However, many organizations are still
analyzing the feasibility and relevance of cloud computing solutions in their IT operations. The
cloud-based model for e-invoicing offers a pay-per-use model, which provides cost-effective
access to the e-invoicing solution at any time and from any place by multiple users. Although
many enterprises have increased understanding of the benefits of cloud-based e-invoicing, a
number of concerns and risks, particularly in relation to data sharing and data security, are
affecting the adoption of such solutions. However, the E-invoicing market in Europe is witnessing
a trend where many vendors in the market have begun to offer their solutions through cloud-
based models to expand their services and enter new markets.
Increasing Demand from Several Sectors
Though large sectors such as Retail, Telecom, Government, and Financial Services are the major
end-users of e-invoicing solutions, the E-invoicing market in Europe is witnessing increasing
demand from different sectors such as Healthcare, Logistics, Utilities, and Manufacturing. Many
enterprises in these sectors have realized the importance of e-invoicing and they are
increasingly adopting it. However, the Retail sector is considered as an early adopter of this
technology and is known for investing heavily in IT. Additionally, the Telecom sector follows the

25
Retail sector very closely in terms of market penetration and technology development. The
Financial Services sector is growing at a higher rate and is expected to increase its market share
in the near future. Moreover, this sector is demanding high-end technology to provide
advanced services to its clients.
Need to Converge Vendor Capabilities
The E-invoicing market in Europe has become very competitive as a result of the evolution of
technological innovations and the varying needs of end-users. This has led to increased
adoption of open-source software by enterprises and the emergence of small vendors, because
of which the market is expected to remain dynamic in the near future. This results in intense
competition among the vendors, thereby forcing them to consolidate their capabilities to
remain competitive and to serve organizations that require comprehensive e-invoicing solutions.
This is acting as a short-term challenge for the E-invoicing market in Europe.
Stringent E-invoicing Regulations
In several European countries, e-invoicing has become mandatory as a measure to reduce the
usage of paper. E-invoicing also helps in cost reduction as it eliminates the cost of buying paper.
Therefore, governments in Europe have made it mandatory to receive invoices electronically.
Several European companies have accepted the mandate of adopting e-invoicing solutions.
For instance, most of the organizations in Finland utilize e-invoicing solutions instead of using
paper invoices. This is one of the major trends which will further increase the adoption of e-
invoicing in Europe.


26
15. Trends and their Impact

Key
The impact of the trends is graded on the basis of the intensity and duration of their impact on
the current market landscape. The magnitude of the impact has been categorized as
described below:

27
16. Vendor Landscape
16.1 Competitive Scenario
The E-invoicing market in Europe is highly fragmented, which creates opportunities for mergers
and acquisitions. The vendors in the market provide innovative e-invoicing solutions with a multi -
channel integration capability that connects users through a variety of devices such as laptops,
mobile devices, and PDAs. The market is dominated by four vendors that together accounted
for 19-21 percent of the market in 2012.
In addition, the market is witnessing the entry of many pure-play SaaS-based e-invoicing
solutions providers that are competing with the large open-source solutions providers. As a result,
the market is getting more fragmented, leading to the presence of a large number of vendors.
Moreover, organizations are assessing the vendors based on their technical knowhow about e-
invoicing solutions and the degree of superiority in their product offerings. This enables them to
compete more effectively with the larger vendors, resulting in intense competition in the market.
However, consolidation and attrition are anticipated in the near future, which will increase the
complexity for organizations wishing to select the right e-invoicing solutions to meet their
requirements.
The top four vendors in the E-invoicing market in Europe are described below:
Company Description
Ariba Inc. Global spend management solutions provider
Basware Corp. Global enterprise purchase-to-pay and financial
management solutions provider
Esker SA France-based document process automation software
applications provider
Tieto Oyj Global provider of IT consulting and IT services
16.2 Market Share Analysis 2012
Basware Corp. is also a major vendor in the E-invoicing market in Europe and it had a share of 7-
9 percent in 2012. The company offers SaaS-based e-invoicing and purchase-to-pay solutions. Its
business operations are divided into four major segments: License Sales, Maintenance,
Professional Services, and Automation Services. It has operations in more than 50 countries and

28
markets its products in a number of countries in Europe, Russia, North America, and the APAC
region. The company has acquired several vendors in the past to establish itself in the E-invoicing
market. Some of the notable mergers and acquisitions are listed below:
Date Company Name Description
January 18, 2012 First
Businesspost
GmbH
Leading provider of e-invoicing in Germany
October 5, 2012 Certipost NV Leading provider of electronic document
exchange solutions in Europe

Ariba Inc. is a major vendor in the E-invoicing market in Europe and it had a share of 4-6 percent
in 2012. The company is a subsidiary of SAP AG. It offers a wide range of solutions such as spend
management solutions, procurement solutions, financial solutions, supplier solutions, and
contract management solutions. It has business operations in more than 20 countries. It employs
more than 2,500 customers in more than 40 offices operating across the globe.

Exhibit 5: E-invoicing Market in Europe by Vendor Segmentation 2012


29
Esker SA is another major vendor in the E-invoicing market in Europe and it had a share of 3-5
percent in 2012. The company started as a software consulting company that designed
software applications in order to eliminate the usage of paper from business management
processes such as accounts payable, accounts receivable, and sales order processing. The
company serves the Manufacturing, Life Sciences, Financial, Retail, IT, Telecom, Public, Utilities
and Energy, and Travel and Transportation sectors.
Tieto Oyj is another major vendor in the E-invoicing market in Europe and it had a share of 2-3
percent in 2012. The company is a leading provider of IT and product engineering services. It has
operations in more than 20 countries. The company has a strong presence in Europe. Its service
offerings have been developed to meet the requirements of customers across the globe.
16.3 Other Prominent Vendors
Some of the other major vendors in the E-invoicing market in Europe are described below:
Company Description
Fundtech FSC Ltd. Global electronic invoicing and payment
solutions provider
GXS Corp. Global provider of business-to-business cloud
integration services
IBM Corp. Global technology and consulting company
Itella Corp. Global financial administration process and
logistics services provider
Swiss Post Solutions Global information process solutions provider
TradeShift Inc. Global e-invoicing solutions provider

Fundtech FSC Ltd. was another vendor in the E-invoicing market in Europe in 2012. The company
was founded in 1993 and is headquartered in the Bangor, UK. It offers payment solutions and e-
invoicing solutions to the Financial Services sector. The company's product portfolio includes
payments, cash management, financial messaging, and merchant services. It has business
operations in the Americas, the EMEA region, and the APAC region.
IBM Corp. is another vendor in the E-invoicing market in Europe. In 2010, the company acquired
Sterling Commerce from AT&T Corp. for US$1.4 billion and obtained strong business-to-business

30
integration capabilities as a result of the acquisition. It has the advantages of an ext ensive
geographical spread, partner relationships with re-sellers, and technological partner
relationships with giant players. Being a major enterprise resource planning software provider, its
e-invoicing solution is expected to have the ability to integrate better with the existing systems.
Additionally, its extensive geographical reach, financial strength, and partnership network s have
helped it gain a significant market share and a strong position in the E-invoicing market.
Itella Corp. was another vendor in the E-invoicing market in Europe in 2012. The company was
founded in 1638 and is headquartered in Helsinki, Finland. It offers a wide range of solutions such
as customer relationship marketing, invoice management, logistics, and e-mail communications.
The company's operations are divided into three business divisions:
Itella Mail Communications
Itella Information
Itella Logistics.
GXS Corp. was another vendor in the E-invoicing market in Europe in 2012. The company was
founded in 2002 and is headquartered in Gaithersburg, Maryland, US. It is a global leader in
business-to-business cloud integration services. It has operations worldwide, including the US, the
EMEA region, and the APAC region. The company offers cloud computing platforms for
automating and monitoring business processes. It also provides messaging services for business
documents such as purchase orders, images, invoices, and other files.
Swiss Post Solutions is another vendor in the E-invoicing market in Europe. The company was
founded in 1849 and is headquartered in Bern, Switzerland. It serves the Financial, Media, Travel,
Logistics, Transport and Distribution, and Publishing sectors. It has operations across the US, the
EMEA region, and the APAC region; however, it generates a significant amount of revenue from
the UK, the Netherlands, and Scandinavia.
TradeShift Inc. was another vendor in the E-invoicing market in Europe in 2012. The company was
founded in 2009 and is headquartered in San Francisco, California ,US. It serves small companies
and enterprises. It has additional offices in Copenhagen, Denmark, and London, England, UK. In
March 2012, the company released an invoice processing product called CloudScan.


31
17. Key Vendor Analysis
17.1 Ariba Inc.
17.1.1 Business Overview

Together with its subsidiaries, Ariba Inc. provides collaborative business commerce solutions that
facilitate the buying and selling of goods and services. The company started its business with the
innovative idea of using the internet to facilitate and improve the procurement processes of
organizations. It combines various technologies to optimize the commerce lifecycle with web-
based community technology in its solutions. Using these solutions, customers can connect and
collaborate with a global network of trading partners. It also helps organizations enhance their
cash flow and operations in a cloud-based environment. The company was acquired by SAP
AG, a German business software provider, for US$4.3 billion in October 2012.
The company also offers invoice management services, invoice conversion services, payment
management services, and global invoicing and compliance services. It provides its services to
the Financial sector for procurement functions, treasury-related operations, and sales and
marketing operations. It is the only vendor that combines leading spend management and
contract management solutions with global consulting and category expertise. In 2007, it
acquired Procuri Inc., a privately-held provider of SaaS sourcing and contract management
solutions, to broaden its cloud offering. The company serves the Automotive, Banking,
Parameter Description
Type Public
Industry IT Services & Consulting
Founded 1996
Headquarters Sunnyvale ,California, US
Revenue US$517 million (FY2012)
Employees 2,432 (2011)

32
Construction, Chemicals, Energy, Education, Manufacturing, Healthcare, Media and
Entertainment, Retail, and Telecom sectors.
17.1.2 Business Segmentation
Exhibit 6: Business Segmentation of Ariba I nc.


Ariba Inc.
Discount
Management
Payment
Management
Invoice
Management
Receivables
Financing
Supply Chain
Finance
Scanning and
Workflow Systems

33
17.1.3 Product Portfolio
Exhibit 7: Product Portfolio of Ariba I nc.
17.1.4 Key I nformation
Company Details Description
Product Portfolio Ariba Invoice Presentment and Payment
Key Acquisition May 2012: Acquired by SAP AG, the leader in the Global
Enterprise Applications market, for US$4.3 billion
Key Customers Bajaj Auto Ltd.
Dabur India Ltd.
eBay Inc.
Procter & Gamble Co.
Ariba Inc.
Contract
Management
Ariba Buyer
Application
Ariba
Category
Procurement
Ariba Travel
and Expense
Ariba
Procure-to-
Pay
Procurement
and Expense
Ariba
Contract
Workbench
Ariba
Contract
Compliance
Ariba
Contract
Management
Invoice and
Payment
Ariba Invoice
Presentment
Ariba
Payment
Supplier
Management
Ariba Supplier
Connectivity
Ariba Supplier
Network
Spend
Analysis
Ariba Analysis
Ariba Data
Enrichment
Ariba Spend
Visibility
Sourcing
Ariba
Sourcing
Ariba Supplier
Performance
Management
Ariba
Category
Management
Ariba
Sourcing On-
demand

34
17.1.5 SWOT Analysis

Strengths
Ariba is one of the leading vendors in
the E-invoicing market in Europe.
The company has seven business
segments, with a strong position in each
segment.
It provides a strong goods procurement
and supplier network through its cloud
model.
Its products offer the most functional
and best user experience.
It has a dedicated R&D division of more
than 330 employees.

Weaknesses
The company lacks an in-house
Management Consulting division.
It is highly dependent on the market in
North America; it receives more than 50
percent of its revenue from North
American enterprises.

Opportunities
The company can focus on the
emerging markets, particularly those in
Brazil, Russia, India, and China, to
enhance its business presence.
The economic slowdown has increased
the demand for technology-enabled
efficiency solutions.

Threats
The company faces a threat to its
market share because of the intense
competition among the top vendors.


35
17.2 Basware Corp.

Basware Corp. is a leading provider of enterprise purchase-to-pay and financial management
solutions in Europe. With more than 1,500 clients and 1 million users in more than 60 countries, it is
one of the leading providers of purchase-to-pay solutions. Its enterprise purchase-to-pay solution
automates procurement, accounts payable, and travel and expense management processes.
It also offers a solution for invoice automation, including invoice data capture, invoice
matching, review and approval, and payment transfer and archiving.
The company's procurement solutions include purchase management solutions, sourcing and
procurement solutions, contract lifecycle management solutions, and supplier portals. In
addition, it provides data capture solutions, including enterprise imaging and mailroom
automation solutions. The company also offers consulting services, customer support services,
and training services.

Type Public
Industry Accounting and Finance Software
Founded 1985
Headquarters Espoo, Finland
Revenue US$149.7 million (FY2012)
Employees Approximately 1,423 (2012)

36
Exhibit 8: Business Segmentation of Basware Corp.


B
a
s
w
a
r
e

C
o
r
p
.

Purchase-to-
Pay
Procurement
Invoice
Automation
Travel and
Expense
E-invoicing
Virtual Printer
E-mail
Invoice Basic
Supplier Portal
Customer
Activation
Supplier
Activation
CloudScan
Archiving

37
Product Portfolio Basware E-invoicing
Basware Invoice Automation
Key Acquisition October 5, 2012: Acquired the E-invoicing business and
network of Cetipost N.V., a global electronic document
exchange solutions provider, for US$23.98 million
Key Customers ABB Ltd.
Europcar SA
Metso Oyj
Toshiba Corp.
UniCredit Group


38

Strengths
Basware is the leader in the E-invoicing
market in Europe.
The company is well known for its
supplier management and its
integration capability with other
applications.
It provides invoice automation even for
purchases without commercial
documents.
Its open network strategy enables
customers to connect more quickly with
their supplier base.
The major part of its revenue is
generated from the Scandinavian
region.

Weaknesses
The company lacks a product strategy
in developing and promoting its
solutions.

Opportunities
The company can expand its business
to the emerging markets in the APAC
region.
The increasing demand for e-invoicing
in the Government sector provides an
opportunity for it to increase its market
share.

Threats
The increased competition might force
the company to reduce the price of its
e-invoicing offerings to retain its market
share.


39
17.3 Esker SA

Esker SA is one of the leading providers of document process automation solutions that enable
organizations to eliminate paper-based business processes. The company has operations in a
number of countries such as the US, the UK, Germany, Spain, Australia, Malaysia, and Singapore.
Its product categories include document process automation solutions, fax server and fax
services, and host access solutions. Its document process automation solutions include Esker
DeliveryWare and Esker on Demand, which simplify paper-based processes. The company also
offers fax server products, including Esker Fax, Esker Fax for Notes, and VSI -Fax software and
services, which automate the sending and receiving of facsimile documents. Its host access
portfolio of products includes Tun Plus and SmarTerm software and services, which enable
personal computers and internet users to communicate with host computers and access shared
data. It also provides mail services, which include production mailing and desktop mailing.
The company offers a wide range of solutions such as cash conversion cycles, fax servers, fax
services, and mail services.

Type Private
Industry Technology
Founded 1985
Headquarters Lyon, France
Revenue US$47 million (FY2012)
Employees Approximately 275 (2012)

40
Exhibit 9: Product Portfolio of Esker SA


Esker SA
Cash
Conversion
Cycles
Order-to-
Cash
Procure-to-
Pay
Fax Servers
Production
Faxing
Desktop
Faxing
Fax Services
Esker Fax for
Exchange
Esker Fax for
Notes
Mail Services
Production
Mailing
Desktop
Mailing

41
Exhibit 10: Business Segmentation of Esker SA


Esker SA
Esker
DeliveryWare
Esker on
Demand
Fax Servers
Fax Services
Mail Services
Host Access

42
Product Portfolio Esker DeliveryWare
Key Highlight 2012: Recognized as the world leader in automated
sales order processing solutions for SAP systems
Key Customers AGF Belgium Bank SA
Allergan Inc.
eFunds Corp.
GE Healthcare
Sallie Mae Inc.
Vector Ltd.


43

Strengths
Esker is one of the leading providers of
e-invoicing solutions.
The company's on-demand e-invoicing
solution is well -recognized and it has a
strong presence in the E-invoicing
market in Europe.
It is the worldwide leader in providing
document process automation
solutions.
Its solutions offer ease of use and
implementation benefits.
It has a very clear pricing strategy for its
solutions.

Weaknesses
The company has fewer partnerships
with system integrators than its peers
such as Ariba.

Opportunities
The company can increase its focus on
cloud-based solutions and attract the
SMEs segment.
It can restructure its strategy regarding
design to cut costs and make it leaner.

Threats
Enhanced solutions from companies
such as Basware and Ariba could pose
a threat to the company's market share.
It faces a threat from specialized
e-invoicing vendors.


44
17.4 Tieto Oyj

Tieto Oyj is an IT consulting and IT services company headquartered in Helsinki, Finland. The
company serves the Financial, Manufacturing, Retail and Logistics, Public, Healthcare, Telecom,
Media, and Energy sectors. It has a number of subsidiaries in countries such as Austria, Canada,
Belgium, China, the Czech Republic, Denmark, Germany, Estonia, Lithuania, Italy, Norway,
Spain, and Poland. It has operations in 23 countries with a strong position in Sweden and Finland.
It offers a wide range of services to a large number of business segments such as Application
Management, Business and IT Consulting, Business Process Services, Enterprise Applications,
Information Management, and Infrastructure Solutions and Services.
The company's operations are divided into four divisions:
Managed Services
Consulting and System Integration
Industry Products
Product Engineering Services.

Type Public
Industry IT Services and Consulting
Founded 1968
Headquarters Helsinki, Finland
Revenue US$2.40 billion (FY2012)
Employees 16,537 (2012)

45
Exhibit 12: Business Segmentation of Tieto Oyj


Tieto Oyj
Industry Products
Product Engineering
Services
Consulting and
System Integration
Managed Services

46
Product Portfolio Tieto E-invoicing
Key Highlight December 18, 2012: Tieto launched cloud services for
both the Enterprise sector and the Public sector in order
to improve its operational efficiency
Key Customers Apoteket AB
Metsa Tissue Oyj
Nordea Bank AB
Outokumpu Oyj
Pohjola Bank plc
Wipak Oy

17.4.4 Sales by I ndustry Segment
Exhibit 13: Sales of Tieto by I ndustry Segment



47
17.4.5 Sales by Service Segment
Exhibit 14: Sales of Tieto by Service Segment



48
Strengths
Tieto is a major vendor in the E-invoicing
market in Europe.
The company has a global presence
and a good foothold in the Nordic
markets such as Sweden and Finland.
It has a large customer base in sectors
such as Finance, Public, Retail,
Healthcare, Telecom, and Media.
It operates in four business segments:
Industry Products, Consulting and
System Integration, Managed Services,
and Product Engineering Services.

Weaknesses
The company lacks skilled staff for the
implementation of e-invoicing solutions.
It lacks a strong collaboration strategy
for effective integration with related
technologies.

Opportunities
The company's branding and popularity
in the market and its innovation-driven
culture make it easy for it to approach
its huge customer base.
There is a huge opportunity for it to
further increase its revenue in the E-
invoicing market by entering emerging
markets.

Threats
The company faces a threat to its
market share from niche players that
are witnessing strong growth rates.


49
18. Other Reports in this Series
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Global Real-time Bidding-based Ad Display Market 2012-2016
Global Advanced Analytics Market 2012-2016
Global Cloud-based Gaming Market 2012-2016
Global E-invoicing Market 2012-2016
Global Game-based Learning Market 2012-2016
Global SMB Web Analytics Market 2012-2016
Global Platform-as-a-Service Market 2012-2016 (Anchor Report)
Global Engineering Services Outsourcing Market 2012-2016
Global Online Video Platforms Market 2012-2016
Global Social TV Market 2012-2016
Global IT Asset Management Software Market 2012-2016
Customer Relationship Management (CRM) Software Market in China 2012-2016
Global Business Information Market 2012-2016
Global Systems Management Software Market 2012-2016


2012-2016

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