2013 Trends in
Cloud-Based and
Mobile Technology in
Financial Services Study
e
Gistics
Published July 2013 Copyright © 2013 by The Institute of Financial Operations
All rights reserved. Reproduction or transmission of this publication in any form without the ex-press permission of the copyright holder is prohibited and is a violation of federal copyright law. The information contained herein has been diligently obtained from sources believed to be reliable and has been prepared with care. The Institute and the authors disclaim any and all warranties as to the accuracy and completeness of this information. The Institute and the authors, their directors, employees, or assistants can accept no liability for any damages or loss occasioned to any person, company, or entity due to errors or omissions in the information contained herein or in the interpretation thereof. The opinions expressed herein were developed from a global survey of users and the analyses may contain the opinions of the author and may change at any time without notice.
This publication is designed to provide authoritative information at the time of publication in regard to the subject matter covered. It is not intended to offer accounting, legal, or other professional advice. If accounting, legal, or other professional advice is required, or if expert assistance is needed, the services of a competent professional person should be sought. This document or any part thereof may not be reproduced in any form without the express written permission of the publisher.
About The Institute of Financial Operations
REVISED 9/12
The Institute of Financial Operations is a membership-based professional association serving the entire financial operations ecosystem, with a particular focus on the accounts payable and accounts receivable disciplines and the related fields of information management and data capture. The Institute grew out of the merger of four associations: International Accounts Payable Professionals (IAPP), International Accounts Receivable Professionals (IARP), the National Association of Purchasing and Payables (NAPP), and The Association for Work Process Improvement (TAWPI).
Based in Orlando, Fla., with affiliates in the U.S., Canada, and the UK, The Institute serves as a global voice, chief advocate, recognized authority, acknowledged leader, and principal educator for people in financial operations. The Institute has a community of nearly 70,000, which includes 9,000 members and customers, and an additional 61,000 financial operations professionals. The Institute’s members have access to benefits and leading-edge resources such as the award-winning Financial Ops magazine, a dynamic content-rich website, educational and networking events, online educational offerings, certification and certificate programs, career resources, and volunteer opportunities.
The Institute of Financial Operations Project Team
Jo E. LaBorde, Executive Director
Laureen Crowley, Vice President of Communications and Editor in Chief Diane Sears, Director of Communications and Managing Editor
Joe Stern, Director of Brand Management and Creative Design Mark Brousseau, Analyst
About the Sponsor
e
Gistics
eGistics is a leading provider of private cloud solutions that streamline payments business pro-cesses. The eGistics private cloud solution automates the capture, management and delivery of documents and data in a highly secure, highly scalable and compliant environment. Today, the eGistics private cloud solution supports paper and electronic transaction processes for many of the largest financial institutions and third-party processors in the U.S. To learn more, visit www. egisticsinc.com.
Table of Contents
EXECUTIVE SUMMARY . . . . 5
Survey methodology . . . .6
SURVEY RESULTS . . . . 7
About the respondents . . . .7
General views on cloud technology . . . .10
Accounts payable . . . .16
Technology spending . . . .19
Accounts receivable . . . .21
Payments disbursement . . . .23
General views on mobile technology . . . .26
CONCLUSION . . . . 32
EXECUTIVE SUMMARY
What is the cloud? Where is the cloud? And what does it mean to financial operations? With many solutions providers trumpeting their cloud-based and mobile solutions, these are questions financial operations practitioners are asking as they evaluate new applications for accounts payable, accounts receivable, and payments disbursement.
In the simplest terms, cloud computing means storing and accessing information and programs over the Internet instead of from a computer’s hard drive. In this environment, each user’s in-formation can be synchronized with other inin-formation over the Internet, sometimes in real time as users work on projects and documents together. Cloud computing can be done anywhere, anytime.
There are several different types of cloud delivery models. Some businesses choose to imple-ment software-as-a-service (SaaS), in which the business subscribes to an application it access-es over the Internet rather than installing it on the hard drivaccess-es of its in-house computers. There also is platform-as-a-service (PaaS), in which a business can create its own custom applications for use by all in the company. Another type, infrastructure-as-a-service (IaaS), provides a back-bone that can be “rented out” by other companies.
Although there is a lot of general information about cloud computing, there is not a lot of insight into the adoption of cloud computing in AP, AR, or payments disbursement. Similarly, there is not a lot of data on mobile adoption in AP, AR, or payments disbursement.
Several key questions come to mind:
•
Are financial operations professionals comfortable with cloud-based and mobile solutions?•
What do financial operations professionals see as the benefits of cloud or mobile solutions?•
What do financial operations professional see as the obstacles to cloud or mobile adoption?•
Are companies adopting cloud and mobile solutions in AP, AR, or payments disbursement?•
Do cloud and mobile solutions meet the key functional requirements for AP, AR, and payments processing?•
Are companies satisfied with the cloud and mobile solutions they have deployed?•
How will cloud and mobile applications affect companies’ IT budgets in AP, AR, and payments disbursement?This study was designed to uncover key trends in cloud and mobile technology among
companies of various sizes and in different industries, and to highlight the future plans of these organizations.
In cooperation with its sponsor, eGistics, The Institute of Financial Operations conducted qualitative and quantitative research among AP, AR, and payments professionals into cloud and mobile trends.
Among key findings of the study:
•
Respondents indicated they are becoming more comfortable with cloud-based AP, AR, and payments applications.•
Respondents identified faster deployment of new applications and improved functionality/higher level of automation as the biggest benefits of cloud-based applications in AP, AR, and payments.•
Perceived security issues remain a major barrier to the adoption of cloud-based applications.•
Nearly half of the survey respondents (49.1 percent) believe cloud-based solu-tions for AP, AR, and payments processing are more difficult to get approved by management than traditional on-premise licensed solutions.•
The vast majority of survey respondents who have reviewed cloud-based AP, AR, or payments solutions believe the technology meets their functional requirements.•
Cloud adoption remains low in AP, AR, and payments disbursement.•
Respondents say their companies aren’t planning to spend much, if anything, on cloud-based AP, AR, and payments applications in 2013.•
Three years from now, most companies will be spending more on cloud-based AP, AR, and payments applications.•
Mobile technology is even less prevalent than cloud-based applications in AP, AR, and payments processing.•
Enhanced service is seen as the biggest benefit of mobile technology in AP, AR, and payments.•
A key reason for the slow adoption of mobile applications in AP, AR, and payments may be that companies are not becoming more comfortable with the technology.•
Like cloud-based solutions, perceived security issues are seen as the top obstacle to mobile adoption in AP, AR, and payments.•
Respondents who have reviewed mobile AP, AR, and payments applications have mixed opinions.•
Mobile AP, AR, and payments applications get mixed reviews from users of the technology.Financial operations practitioners are under tremendous pressure to reduce costs and improve efficiency. But they might be missing a golden opportunity to achieve these benefits by not deploying cloud-based and mobile solutions for AP, AR, and payments disbursement.
Survey methodology
The online survey was presented to several thousand AP, AR, and payments professionals in early 2013. The survey was approximately 20 questions, including some that could be answered instantly with a single mouse click and others that were more complex and likely required the survey respondent to retrieve some information. Respondents were given several weeks to complete the survey.
A total of 59 respondents completed the online survey, and 51 of the respondents answered every question.
SURVEY RESULTS
About the respondents
On which continent is your company based?
North America - 91.5% Europe - 5.1% Asia - 3.4% Africa - 0% South America - 0% Australia - 0% 5.1% 91.5% 3.4%
Some 91.5 percent of the survey respondents stated that they represent a company based in North America, while 5.1 percent represent a company based in Europe and 3.4 percent represent a company based in Asia.
What industry is your company in?
3% Wholesale - 6.1% Healthcare - 21.2% Insurance - 0% Manufacturing - 30.3% Oil/petrochemical - 0% Retail - 6.1% Transportation - 15.2% Aerospace - 0% Banking/brokerage -3% Education - 3% Electronics - 6.1% Government - Local - 6.1% Government - State - 0% Government - Federal - 3% 30.3% 6.1% 15.2% 6.1% 6.1% 6.1% 21.2% 3% 3%
More than half of the survey respondents represent companies in the manufacturing (30.3 percent) and healthcare (21.2 percent) industries.
Some 15.2 percent of survey respondents indicated that their company is in the transportation industry. Participants in the fields of electronics, local government, retail, and wholesale were equally represented at 6.1 percent each. Three percent of survey respondents stated that their company is in the banking/brokerage, education, or federal government industries.
How many employees does your company have?
Survey respondents represent a good cross-section of large and small employers.
Fewer than 250 - 22% 251 to 1,000 - 23.7% 1,001 to 5,000 - 18.6% 5,001 to 25,000 - 18.6% 25,001 to 50,000 - 5.1% 50,001 to 100,000 - 5.1% More than 100,000 - 6.8% 18.6% 6.8% 5.1% 22% 23.7% 5.1% 18.6%
Nearly half of respondents (45.7 percent) represent companies with fewer than 1,000 employees. Twenty-two percent said their companies have fewer than 250 employees, while 23.7 percent work at organizations with 250 to 1,000 employees.
An equal percentage of survey respondents – 18.6 percent – indicated that their company has between 1,000 and 5,000 or between 5,000 and 25,000 employees.
Some 5.1 percent of survey respondents said their companies employ between 25,000 and 50,000 or between 50,000 and 100,000. The remaining 6.8 percent represent companies with more than 100,000 employees – the largest businesses.
What is your annual revenue?
Less than $25 million - 22% $25 million to $50 million - 10.2% $50 million to $100 million - 3.4% $100 million to $500 million - 10.2% $500 million to $1 billion - 10.2% More than $1 billion - 33.9% Don’t know - 10.2% 33.9% 10.2% 22% 10.2% 10.2% 10.2% 3.4%
More than one-third (33.9 percent) of survey respondents represent companies with more than $1 billion in annual revenues. At the other end of the spectrum, nearly one-quarter (22 percent) of survey respondents represent companies with less than $25 million in annual revenues. An equal percentage of survey respondents – 10.2 percent – indicated that their company brings in between $25 million and $50 million, $100 million and $500 million, or $500 million and $1 billion in annual revenues. Some 3.4 percent of survey respondents indicated that their company has between $50 million and $100 million in annual revenues.
Interestingly, 10.2 percent of survey respondents said they didn’t know their company’s annual revenues.
Among the survey respondents from companies with more than $1 billion in annual revenues, 28.6 percent indicated that their company is in the manufacturing industry, and 28.6 percent stated that their company is in transportation.
What describe your job function?
A plurality of survey respondents (32.8 percent) stated that their primary job function is in AP.
Operations manager - 0% AP supervisor - 5.2% AR manager - 10.3% AR specialist - 5.2% AR supervisor - 1.7% IT manager - 1.7% IT director - 0% Payments manager - 0% Other - 22.4% CFO - 1.7% CEO - 3.4% COO - 0% CIO - 0%
Vice president of finance - 0% Vice president of IT - 0% Controller - 8.6% Accounting/finance manager - 12.1% AP manager - 20.7% AP specialist - 6.9% 5.2% 6.9% 8.6% 22.4% 12.1% 20.7% 5.2% 10.3% 1.7%3.4% 1.7% 1.7%
Nearly one-quarter of survey respondents (20.7 percent) indicated that their primary job function is AP manager. Some 12.1 percent of survey respondents stated that their primary job function is accounting/finance manager, while 10.3 percent indicated that their primary job function is AR manager and 8.6 percent stated that their primary job function is controller. Other survey respondents described their primary job function as AP specialist (6.9 percent), AP supervisor (5.2 percent), AR specialist (5.2 percent), and CEO (3.4 percent). Some 1.7 percent of survey respondents stated that their primary job function is CFO.
General views on cloud technology
Compared with 12 months ago, how have your views of cloud-based AP, AR, or payments applications changed?
Survey respondents indicated that they are becoming more comfortable with cloud-based AP, AR, and payments applications.
Significantly more comfortable - 19.2% Slightly more comfortable - 44.2% Unchanged - 36.5%
Slightly less comfortable - 0% Significantly less comfortable - 0%
36.5%
19.2%
44.2%
A plurality of survey respondents (44.2 percent) stated that they are slightly more comfortable with cloud-based AP, AR, and payments applications than they were 12 months ago, while 19.2 percent of survey respondents indicated they are significantly more comfortable with cloud-based AP, AR, and payments applications.
Slightly more than one-third of survey respondents (36.5 percent) stated that their views of cloud-based AP, AR, and payments applications have not changed in the past year.
None of the survey respondents indicated that they are less comfortable with cloud-based AP, AR, or payments applications than they were 12 months ago.
Nearly two-thirds of the survey respondents from companies with more than $1 billion in annual revenues (64.7 percent) indicated they are slightly more comfortable with cloud-based AP, AR, or payments solutions than they were 12 months ago. Additionally, 11.8 percent of respondents from this group stated that they are significantly more comfortable with cloud-based AP, AR, or payments solutions than they were a year ago. With large companies among the fastest adopt-ers of cloud applications overall, it’s not surprising that respondents from this group are more comfortable with the technology in AP, AR, or payments than any other group of respondents. Among the survey respondents from the manufacturing industry:
•
22.2 percent indicated that they are slightly more comfortable with cloud-based AP, AR, or payments applications than they were 12 months ago.•
22.2 percent stated that they are significantly more comfortable with cloud-based AP, AR or payments applications than they were 12 months ago.•
The majority (55.6 percent) indicated that their views of cloud-based AP, AR, or payments applications have not changed in the past year.Among the survey respondents from the healthcare industry:
•
33.3 percent indicated they are slightly more comfortable with cloud-based AP, AR, or payments applications than they were 12 months ago.•
33.3 percent stated that they are significantly more comfortable with cloud-based AP, AR, or payments applications than they were 12 months ago.•
33.3 percent indicated that their views of cloud-based AP, AR, or payments ap-plications have not changed in the past year.Three-quarters of the survey respondents from companies in the transportation industry indicated that they are slightly more comfortable with cloud-based AP, AR, or payments applications than they were 12 months ago.
What do you believe is the biggest benefit of cloud-based applications in AP, AR, or payments?
Reduction in total cost of ownership - 12% Ability to “variabilize” cost - 6%
Faster deployment of new applications - 26% Improved functionality/level of automation - 26% Increased access to information by stakeholders - 12% More flexible operations infrastructure - 10% Better service to customers/suppliers - 8%
26% 12% 10% 6% 26% 12% 8%
Survey respondents identified faster deployment of new applications and improved functionality/ higher level of automation as the biggest benefits of cloud-based applications in AP, AR, or pay-ments. Both of these benefits were identified by 26 percent of survey respondents.
Twelve percent of survey respondents identified reduced total cost of ownership and increased information by stakeholders as the biggest benefits of cloud-based applications in AP, AR, or payments, while 10 percent of survey respondents identified more flexible operations infrastruc-ture as the biggest benefit. Better service to customers and suppliers was identified as the big-gest benefit by 8 percent of survey respondents, while 6 percent of survey respondents identi-fied the ability to “variabilize” cost as the biggest benefit of cloud-based applications in AP, AR, or payments.
Two respondents didn’t see any benefits to cloud-based applications in AP, AR, or payments. Among survey respondents from companies with more than $1 billion in annual revenues, 22.2 percent identified reduced total cost of ownership as the biggest benefit of cloud-based applica-tions in AP, AR, or payments, while 22.2 percent cited improved functionality/level of automation. Survey respondents from the healthcare industry identified improved functionality/level of auto-mation (cited by 33.3 percent of respondents in this group) and increased access to inforauto-mation by stakeholders (also cited by 33.3 percent of respondents in this group) as the biggest benefits to cloud-based applications in AP, AR, or payments.
Reduced total cost of ownership, faster deployment of new applications, and improved function-ality/level of automation were identified as the biggest benefits of cloud-based applications in AP, AR, or payments by survey respondents from companies in the manufacturing industry. Each of these benefits was identified by 28.6 percent of respondents in this group.
A plurality of survey respondents from companies in the transportation industry (40 percent) identified faster deployment of applications as the biggest benefit of cloud-based solutions in AP, AR, or payments.
What do you believe is the biggest obstacle to cloud adoption in AP, AR, or payments?
Perceived security issues remain a major barrier to the adoption of cloud-based applications.
2%
Perceived security issues - 28.6% Lack of management buy-in - 18.4% Lack of a compelling business case - 6.1% Lack of budget for new initiatives - 16.3% Lack of compelling solutions/applications - 2% Concerns about integration with legacy sysems and/or processes - 28.6%
16.3%
28.6%
18.4% 6.1%
28.6%
More than one-quarter of survey respondents (28.6 percent) identified perceived security issues as the biggest obstacle to cloud adoption in AP, AR, or payments. An equal percentage of survey respondents – 28.6 percent – identified concerns about integration with legacy systems and/or processes as the biggest obstacle to cloud adoption in AP, AR, or payments.
Some 18.4 percent of survey respondents identified lack of management buy-in as the biggest obstacle to cloud adoption in AP, AR, or payments, while 16.3 percent stated that lack of budget for new initiatives is the biggest obstacle.
In a blow to solutions providers, 6.1 percent of survey respondents identified the lack of a com-pelling business case as the biggest obstacle to cloud adoption in AP, AR, or payments, and 2 percent of survey respondents identified a lack of compelling solutions or applications.
Other obstacles to cloud adoption identified by survey respondents include connection speeds, audit and reporting concerns, and a lack of risk management controls.
Among survey respondents from companies with more than $1 billion in annual revenues, 29.4 percent identified perceived security issues as the biggest obstacle to cloud adoption in AP, AR, or payments, and 29.4 percent cited a lack of budget for new initiatives.
Half of survey respondents from healthcare organizations (50 percent) identified perceived secu-rity issues as the biggest obstacle to cloud adoption in AP, AR, or payments.
Similarly, 44.4 percent of survey respondents from manufacturing organizations and 40 percent of survey respondents from transportation organizations identified perceived security issues as the biggest obstacle to cloud adoption in AP, AR, or payments.
Compared to traditional on-premise, licensed solutions for AP, AR, or payments processing, I believe cloud-based solutions are:
Much easier to get approved by management - 7.8% Slightly easier to get approved by management - 21.6% Slightly more difficult to get approved by management - 21.6% Much more difficult to get approved by management - 27.5% No difference in the approval process - 21.6%
27.5%
21.6%
21.6% 7.8% 21.6%
Nearly half of the survey respondents (49.1 percent) believe cloud-based solutions for AP, AR, or payments processing are more difficult to get approved by management than traditional on-premise licensed solutions.
A plurality of survey respondents (27.5 percent) indicated that cloud-based solutions for AP, AR, or payments processing are much more difficult to get approved by management than traditional on-premise licensed solutions. Some 21.6 percent of survey respondents stated that cloud-based solutions are slightly more difficult to get approved.
Conversely, 21.6 percent of survey respondents indicated that cloud-based solutions for AP, AR, or payments processing are slightly easier to get approved by management, while 7.8 percent of survey respondents stated that cloud-based solutions are much easier to get approved by management.
About one-quarter of survey respondents (21.6 percent) indicated that there is no difference in how easy it is to get cloud-based or traditional on-premise, licensed solutions approved by management.
Among survey respondents from companies with more than $1 billion in annual revenues, 47.1 percent indicated that it is much more difficult to get management approval for cloud-based AP, AR, or payments applications than traditional on-premise, licensed solutions. More than one-third of survey respondents from this group (35.3 percent) stated that it is slightly more difficult to get cloud-based AP, AR, or payments applications approved than traditional on-premise, licensed solutions.
An impressive two-thirds of survey respondents from manufacturing organizations (66.7 percent) indicated that it is much more difficult to get cloud-based AP, AR, or payments solutions ap-proved by management than traditional on-premise, licensed solutions.
A plurality of survey respondents from healthcare organizations (60 percent) stated that there is no difference in how easy it is to get cloud-based or traditional on-premise, licensed solutions approved by management.
Half of survey respondents from transportation organizations (50 percent) indicated that it is slightly more difficult to get cloud-based AP, AR or payments solutions approved by manage-ment than traditional on-premise, licensed solutions.
Overall, how would you characterize the cloud-based AP, AR or payments solutions you’ve reviewed?
The vast majority of survey respondents that have reviewed cloud-based AP, AR, or payments solutions believe the technology meets their functional requirements.
1.9%
Impressive - 20.8% Adequate - 35.8%
Lacking key functionality - 1.9% Not ready for prime time - 5.7%
I haven’t reviewed any cloud-based AP, AR or payments - 35.8%
5.7%
20.8%
35.8% 35.8%
More than one-third of survey respondents (35.8 percent) characterized the cloud-based AP, AR, or payments solutions they reviewed as adequate. Some 20.8 percent of survey respondents characterized the cloud-based solutions they have reviewed as impressive.
Conversely, 1.9 percent of survey respondents indicated that the cloud-based AP, AR, or pay-ments solutions they have reviewed lack key functionality, while 5.7 percent stated that the cloud-based solutions they have reviewed are not ready for prime time.
Importantly, 35.8 percent of survey respondents indicated that they have not reviewed cloud-based AP, AR, or payments solutions.
One survey respondent noted that a big issue with the cloud-based AP, AR, or payments solu-tions that he reviewed is that they interface with legacy systems rather than being integrated. Half of the survey respondents from companies with more than $1 billion in annual revenues (50 percent) characterized the cloud-based AP, AR, or payments applications that they have reviewed as adequate.
Some 44.4 percent of survey respondents from manufacturing organizations indicated that the cloud-based AP, AR, or payments solutions that they have reviewed are adequate, while 11.1 percent of survey respondents from this group characterized the solutions as impressive. Some 44.4 percent of survey respondents from manufacturing organizations stated that they have not reviewed any cloud-based AP, AR, or payments solutions.
Among survey respondents from healthcare organizations, 33.3 percent indicated that the cloud-based AP, AR, or payments solutions that they have reviewed are adequate, while 16.7 percent stated that the solutions are impressive. Both of these percentages slightly trail the overall number of survey respondents who characterized the cloud-based AP, AR, or payments solu-tions that they have reviewed as adequate or impressive. One-third of survey respondents in this group (33.3 percent) stated that they have not reviewed any cloud-based AP, AR, or payments solutions.
Three quarters of survey respondents from transportation companies (75 percent) indicated that the cloud-based AP, AR, or payments solutions that they have reviewed are adequate.
Does your company use cloud-based applications outside of AP, AR, or payments?
Survey respondents were evenly split between those whose company uses cloud-based ap-plications outside of AP, AR, or payments and those whose company does not use cloud-based applications elsewhere. Yes - 37.7% No - 37.7% Not sure - 24.5% 37.7% 37.7% 24.5%
Some 37.7 percent of survey respondents indicated that their company uses cloud-based applications outside of AP, AR, or payments, while 37.7 percent stated that their company does not use cloud-based applications elsewhere.
Nearly one-quarter of survey respondents (24.5 percent) stated that they do not know whether their company uses cloud-based applications outside of AP, AR, or payments.
Among survey respondents from companies with more than $1 billion in annual revenues, 33.3 percent indicated that their company uses cloud-based applications outside of AP, AR, or pay-ments, 27.8 percent stated that their company does not use cloud-based applications outside of AP, AR, or payments, and 38.9 percent (a plurality of respondents from this group) said they are not sure.
Two-thirds of survey respondents from healthcare organizations (66.7 percent) indicated that their company does not use cloud-based applications outside of AP, AR, or payments. Similarly, 50 percent of survey respondents from transportation companies stated that their company does not use cloud-based applications outside of AP, AR, or payments.
Conversely, a plurality of survey respondents from manufacturing organizations (44.4 percent) stated that their company uses cloud-based applications outside of AP, AR, or payments.
Accounts payable
Does your company currently use cloud-based applications for accounts payable?
While cloud solutions have enjoyed tremendous growth in many applications, AP isn’t one of them.
Yes - 17.3%
No, and no plans to do so - 42.3% No, but planning to within 12 months - 15.4% No, but planning to within 24 months - 7.7% Not sure - 17.3% 17.3% 17.3% 42.3% 7.7% 15.4%
Nearly half of the survey respondents (42.3 percent) indicated that their company does not use cloud-based solutions in its AP department and has no plans to do so. What’s more, 17.3 per-cent of survey respondents stated that they aren’t sure whether their company uses cloud-based solutions in AP.
Conversely, 17.3 percent of survey respondents indicated that their company uses cloud-based applications for AP. Additionally, 15.4 percent of survey respondents stated that their company plans to deploy cloud-based AP solutions within 12 months, while 7.7 percent of survey respon-dents indicated that their company plans to deploy cloud-based AP solutions within 24 months. Companies with more than $1 billion in annual revenues have big plans for deploying cloud-based AP applications, compared to other groups of respondents. Nearly one-quarter of survey respondents in this group (23.5 percent) indicated that their company plans to deploy cloud-based AP applications within 12 months, while 5.9 percent stated that their company plans to deploy the technology within 24 months. What’s more, 11.8 percent of survey respondents from companies with more than $1 billion in annual revenues indicated that their company already uses cloud-based applications for AP.
Some 41.2 percent of survey respondents from companies with more than $1 billion in annual revenues stated that their company has no plans to deploy cloud-based AP applications.
Half of the survey respondents from transportation organizations (50 percent) indicated that their company uses cloud-based AP applications.
Among survey respondents from manufacturing organizations, 11.1 percent indicated that their company currently uses cloud-based AP applications. However, more than half of the respondents in this group (55.6 percent) stated that their company has no plans to deploy the technology. None of the survey respondents from healthcare organizations indicated that their company uses cloud-based solutions for AP. Moreover, 50 percent of the survey respondents in this group indicated that their company has no plans to deploy cloud-based solutions for AP.
How satisfied are you with your company’s cloud-based AP applications?
Most survey respondents who use cloud-based AP applications are happy with the technology.
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Extremely satisfied Satisfied Dissatisfied Extremely
dissatisfied Too early to tell
55.6%
44.4%
11.1% 0% 0%
Over half of the survey respondents (55.6 percent) who use cloud-based AP solutions indicated that they are extremely happy with the technology, while 44.4 percent stated that they are satis-fied with the technology.
Only 11.1 percent of survey respondents indicated that they are dissatisfied with the cloud-based AP solutions used by their company.
Among survey respondents from companies with more than $1 billion in annual revenues, 50 percent indicated that they are extremely satisfied with their company’s cloud-based AP applications, while 50 percent stated that they are satisfied with the technology.
All of the survey respondents from manufacturing organizations indicated that they are extremely satisfied with their company’s cloud-based AP applications. Fifty percent of the survey respondents from transportation companies indicated that they are satisfied with their company’s cloud-based AP applications, while 50 percent stated that they are extremely satisfied with the technology.
Cloud-based AP applications enable my company to:
Survey respondents indicated that cloud-based AP solutions enable their company to:
•
Automate processes.•
More easily access business documents.•
Manage invoice processing and check payments using one software application.•
Process P-card transactions.•
Outsource invoice scanning.•
Leverage web-based workflows for POs and invoices.Does your company use a public or private cloud for accounts payable?
In a cloud environment, an organization can use a public cloud, a private cloud, or both.
Public - 44.4% Private - 44.4% Both - 11.1% Not Sure - 0% 44.4% 44.4% 11.1%
According to IDC, a public cloud is a set of computers and computer network resources based on the standard cloud computing model, in which a service provider makes resources, such as applications and storage, available to the general public or a number of organizations over the Internet.
Conversely, a private cloud as a cloud infrastructure operates solely for a single organization, whether managed internally or by a third party and hosted internally or externally, according to the National Institute of Standards and Technology (NIST).
Survey respondents are evenly split between those whose companies use a public cloud for AP processing and those whose companies use a private cloud.
Some 44.4 percent of survey respondents who use cloud-based AP solutions indicated that they use a private cloud, while 44.4 percent of survey respondents indicated that they use a public cloud. Some 11.1 percent of survey respondents stated that they use both public and private clouds for AP.
Among the survey respondents from companies with more than $1 billion in annual revenues, 50 percent indicated that their company uses a public cloud for AP, while 50 percent stated that their company uses both a public and private cloud for AP.
All of the survey respondents from manufacturing organizations indicated that their company uses a public cloud for its AP applications. Half of the survey respondents from transportation organizations (50 percent) stated that their company uses a private cloud for its AP applications, while 50 percent of survey respondents from this group indicated that their company uses both.
Technology spending
What percentage of your company’s spending on new AP, AR, or payments applications in 2013 is represented by cloud-based solutions?
Survey respondents say their companies aren’t planning to spend much, if anything, on cloud-based AP, AR, or payments applications in 2013.
More than 50 percent - 7.8% 26–50 percent - 7.8% 11–25 percent - 5.9% 6–10 percent - 3.9% Less than 5 percent - 19.6% None - 54.9% 7.8% 7.8% 5.9% 3.9% 19.6% 54.9%
More than half of the survey respondents (54.9 percent) indicated that their company isn’t planning to spend anything on new cloud-based AP, AR, or payments applications in 2013. Some 19.6 percent of survey respondents stated that their company plans to spend less than 5 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions. Similarly, 3.9 percent of survey respondents indicated that their company plans to spend 6 to 10 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions, while 5.9 percent of survey respondents indicated that their company plans to spend 11 to 25 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions. More encouraging for cloud solutions providers, 7.8 percent of survey respondents indicated that their company plans to spend 26 to 50 percent of its 2013 budget for new AP, AR, or pay-ments applications on cloud-based solutions, while 7.8 percent of survey respondents stated that their company plans to spend more than 50 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions.
Among survey respondents from companies with more than $1 billion in annual revenues, the majority (52.9 percent) indicated that their company is not planning to spend anything on new cloud-based AP, AR, or payments applications in 2013. However, 41.2 percent of respondents from companies with more than $1 billion in annual revenues stated that their company plans to spend less than 5 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions, while 5.9 percent of respondents from this group indicated that their company plans to spend 6 to 10 percent of its 2013 budget for new AP, AR, or payments appli-cations on cloud-based solutions.
Two-thirds of survey respondents from manufacturing organizations (66.7 percent) indicated that their company plans to spend no money on new cloud-based AP, AR, or payments applications. On the positive side of the ledger, 11.1 percent of respondents in this group stated that their company plans to spend more than 50 percent of its 2013 budget for new AP, AR, or payments applications on cloud-based solutions.
Over the next three years, how do you expect your company’s spending on cloud-based AP, AR, or payments applications to change?
Three years from now, most companies will be spending more on cloud-based AP, AR, or payments applications.
Increase significantly — by 10 percent or more - 20% Increase slightly — by less than 10 percent - 42% Remain unchanged - 38%
Decrease slightly — by less than 10 percent - 0% Decrease significantly — by 10 percent or more - 0%
20%
42% 38%
Forty-two percent of survey respondents indicated that they expect their company’s spending on cloud-based AP, AR, or payments applications to increase slightly – by less than 10 percent – over the next three years. Additionally, 20 percent of survey respondents stated that they expect their company’s spending on cloud-based AP, AR, or payments applications to increase signifi-cantly – by more than 10 percent – over the next three years.
Thirty-eight percent of survey respondents are not expecting a change in their company’s spending on cloud-based AP, AR, or payments applications over the next three years. None of the survey respondents indicated that they expect their company to spend less on cloud-based AP, AR, or payments applications over the next three years.
Among survey respondents from companies with more than $1 billion in annual revenues, 64.7 percent indicated that their company plans to slightly increase its spending on cloud-based AP, AR, or payments applications over the next three years. Interestingly, survey respondents from companies with more than $1 billion in annual revenues are anticipating smaller increases in spending on cloud-based AP, AR, or payments applications than other groups of survey respon-dents. Nearly one-third of survey respondents from this group (35.3 percent) expect their com-pany’s spending on cloud-based AP, AR, or payments applications to remain unchanged over the next three years.
The majority of survey respondents from manufacturing organizations (55.6 percent) indicated that they expect their company’s spending on cloud-based AP, AR, or payments applications to increase slightly over the next three years. The remaining 44.4 percent of survey respondents from this group stated that they expect their company’s spending on cloud-based AP, AR, or payments applications to remain unchanged.
Survey respondents from healthcare organizations indicated that they expect their company’s spending on cloud-based AP, AR, or payments applications to increase slightly over the next three years, while another 40 percent expect their company’s spending on cloud-based AP, AR, or payments applications to remain unchanged.
Fifty percent of survey respondents from transportation organizations indicated that they expect their company’s spending on cloud-based AP, AR, or payments applications to remain un-changed.
Accounts receivable
Does your company currently use cloud-based applications for accounts receivable?
The adoption of cloud-based AR applications is lagging the adoption of cloud-based AP applications. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Yes No, and no plans
to do so No, but planning towithin 12 months No, but planning towithin 24 months Not sure
11.8%
49%
7.8%
15.7% 17.6%
Forty-nine percent of survey respondents indicated that their company does not use cloud-based solutions in its AR department and has no plans to do so.
Conversely, 11.8 percent of survey respondents stated that their company uses cloud-based solutions in its AR department, while 7.8 percent of survey respondents indicated that their company plans to use cloud-based AR solutions within 12 months and 15.7 percent of survey respondents stated that their company plans to use cloud-based AR solutions within 24 months. Some 17.6 percent of survey respondents indicated that they are not sure whether their
company uses cloud-based solutions in its AR department.
None of the survey respondents from companies with more than $1 billion in annual revenues use cloud-based AR applications. However, 17.6 percent of survey respondents from companies with more than $1 billion in annual revenues indicated that their company plans to deploy cloud-based AR applications within 12 months, while 23.5 percent of survey respondents from this group stated that their company plans to deploy the technology within 24 months.
Some 47.1 percent of survey respondents from companies with more than $1 billion in annual revenues indicated that their company has no plans to deploy cloud-based AR applications. The majority of survey respondents from manufacturing organizations (55.6 percent) indicated that their company does not use cloud-based AR applications and has no plans to do so. Con-versely, 11.1 percent of respondents in this group stated that their company uses cloud-based AR applications, while 11.1 percent indicated that their company plans to deploy cloud-based AR applications within 12 months. Nearly one-quarter of survey respondents from manufacturing organizations (22.2 percent) said they aren’t sure whether their company uses cloud-based AR applications.
Twenty percent of survey respondents from healthcare organizations indicated that their company currently uses cloud-based AR applications – slightly higher than the overall adoption rate of all respondents to the survey. However, a whopping 60 percent of survey respondents in this group stated their company has no plans to deploy cloud-based AR applications.
How satisfied are you with your company’s cloud-based AR applications?
Companies are satisfied with their cloud-based AR applications.
Extremely satisfied - 50% Satisfied - 50% Dissatisfied - 0% Extremely dissatisfied - 0% Too early to tell - 0%
50% 50%
Fifty percent of survey respondents indicated that their company is satisfied with its cloud-based AR applications, while the remaining half of survey respondents indicated that their company is extremely satisfied with its cloud-based AR applications.
All of the survey respondents from healthcare organizations that use cloud-based AR applica-tions indicated they are extremely satisfied with the technology.
Similarly, all of the survey respondents from manufacturing organizations that use cloud-based AR applications stated that they are satisfied with the technology (but not extremely satisfied).
Cloud-based AR applications enable my company to:
Survey respondents indicated that cloud-based AR applications enable their company to:
•
Reduce days sales outstanding.•
Generate invoices, resolve discrepancies, and oversee collections in one platform.•
Deploy applications with minimal disruption.Does your company use a public or private cloud for accounts receivable?
The use of public and private clouds is evenly split among survey respondents whose compa-nies use cloud-based AR applications.
Public - 33.3% Private - 33.3% Both - 0% Not sure - 33.3% 33.3% 33.3% 33.3%
One third of survey respondents (33.3 percent) whose companies use cloud-based AR appli-cations indicated that their company uses a private cloud, while 33.3 percent stated that their company uses a public cloud.
One-third of survey respondents (33.3 percent) whose companies use cloud-based AR applica-tions stated that they are not sure whether their company used a public or private cloud. All of the survey respondents from manufacturing organizations that use cloud-based AR appli-cations indicated that their company uses a public cloud.
Payments disbursement
Does your company currently use cloud-based applications for payments disbursement?
Cloud-based applications aren’t faring any better in payments disbursement than in AP or AR.
Yes - 13.7%
No, and no plans to do so - 49%
No, but planning to within 12 months - 13.7% No, but planning to within 24 months - 9.8% Not sure - 13.7% 13.7% 13.7% 49% 9.8% 13.7%
Nearly half of the survey respondents (49 percent) indicated that their company does not use cloud-based applications for payments disbursement and has no plans to do so.
Conversely, 13.7 percent of survey respondents stated that their company uses cloud-based applications for payments disbursement, while 13.7 percent indicated that their company plans to deploy cloud-based payments disbursement applications within 12 months and 9.8 percent stated that their company plans to deploy cloud-based payments disbursement applications within 24 months.
One survey respondent wrote that their company uses cloud-based applications for employee expense reimbursements.
Among survey respondents from companies with more than $1 billion in annual revenues, only 5.9 percent indicated that their company currently uses cloud-based applications for payments disbursement. However, 23.5 percent of respondents from this group stated that their company plans to deploy cloud-based applications for payments disbursement within 12 months, and 5.9 percent indicated that their company plans to deploy the technology within 24 months.
More than half of the respondents from companies with more than $1 billion in annual revenues (52.9 percent) stated that their company has no plans to deploy cloud-based applications for payments disbursement.
Two-thirds of survey respondents from manufacturing organizations (66.7 percent) indicated that their company does not use cloud-based applications for payments disbursement and has no plans to do so. However, 11.1 percent of survey respondents in this group stated that their com-pany uses cloud-based payments disbursement applications, while 11.1 percent indicated that their company plans to deploy the technology within 12 months.
None of the survey respondents from healthcare organizations indicated that their company uses cloud-based applications for payments disbursement. Moreover, 60 percent of survey respon-dents from this group stated that their company has no plans to deploy cloud-based applica-tions for payments disbursement.
Twenty five percent of survey respondents from transportation organizations currently use cloud-based applications for payments disbursement.
How satisfied are you with your company’s cloud-based payments applications?
Extremely satisfied - 28.6% Satisfied - 71.4% Dissatisfied - 0% Extremely dissatisfied - 0% Too early to tell - 0%
28.6%
71.4%
More than one-quarter of survey respondents (28.6 percent) whose companies use cloud-based payments applications indicated that they are extremely satisfied with the technology, while the remaining 71.4 percent of survey respondents stated that they are satisfied with the technology. All of the survey respondents from companies with more than $1 billion in annual revenues indi-cated that they are satisfied with their company’s cloud-based payments applications.
Similarly, all of the survey respondents from manufacturing and transportation organizations that use cloud-based payments disbursement applications indicated that they are satisfied with the technology.
Cloud-based payments applications enable my company to:
Survey respondents indicated that cloud-based payments applications enable their company to:
•
Pay with purchase cards.•
Reimburse employees for expenses.•
Eliminate paper.Does your company use a public or private cloud for payments disbursement?
Public clouds are used more frequently for payments disbursement than private clouds.
Public - 50% Private - 33.3% Both - 0% Not sure - 16.7% 50% 33.3% 16.7%
Fifty percent of survey respondents whose companies use cloud-based applications for payments disbursement indicated that their company uses a public cloud. One-third of survey respondents (33.3 percent) whose companies use cloud-based payments disbursement applications stated that their company uses a private cloud.
Some 16.7 percent of survey respondents indicated that they do not know whether their com-pany uses a public or private cloud for its cloud-based payments disbursement applications. Among the survey respondents from companies with more than $1 billion in annual revenues that use cloud-based payments disbursement applications, all of them indicated that they use a public cloud.
Similarly, all of the survey respondents from manufacturing organizations that use cloud-based payments disbursement applications indicated that they use a public cloud.
General views on mobile technology
Does your company use mobile applications as part of its AP, AR, or payments processing?
Mobile technology is even less prevalent than cloud-based applications in AP, AR, and payments processing.
Yes - 12.5%
No, and no plans to do so - 62.5% No, but planning to within 6 months - 4.2% No, but planning to within 12 months - 6.3% No, but planning to within 24 months - 14.6%
12.5% 14.6%
62.5% 6.3%
4.2%
Nearly two-thirds of survey respondents (62.5 percent) indicated that their company does not use mobile technology as part of its AP, AR, or payments processing and has no plans to do so. Conversely, 12.5 percent of survey respondents stated that their company uses mobile technol-ogy as part of its AP, AR, or payments processing. Additionally, 4.2 percent of survey respon-dents indicated that their company plans to deploy mobile technology for AP, AR, or payments within six months, 6.3 percent of survey respondents stated that their company plans to deploy mobile technology for AP, AR, or payments within 12 months, and 14.6 percent plan to deploy the technology within 24 months.
Some 11.8 percent of survey respondents from companies with more than $1 billion in annual revenues indicated that their company uses mobile applications as part of its AP, AR, or pay-ments processing – slightly below the average of all respondents. Some 5.9 percent of survey respondents from this group stated that their company plans to deploy the technology within six months, while 23.5 percent indicated that their company plans to deploy the technology within 24 months.
Among survey respondents from manufacturing organizations:
•
66.7 percent do not use mobile applications as part of AP, AR, or payments processing and have no plans to do so.•
11.1 percent use mobile applications as part of AP, AR, or payments processing.•
11.1 percent plan to deploy mobile applications as part of AP, AR, or payments processing within six months.•
11.1 percent plan to deploy mobile applications as part of AP, AR, or payments processing within 24 months.Fifty percent of survey respondents from transportation organizations indicated that their company currently uses mobile applications as part of AP, AR, or payments processing. None of the survey respondents from healthcare organizations indicated that their company uses mobile applications as part of its AP, AR, or payments processing, and none of the survey respondents in this group stated that their company has plans to do so.
What do you believe is the biggest benefit of mobile applications in AP, AR, or payments?
Enhanced service is seen as the biggest benefit of mobile technology in AP, AR, or payments.
Reduction in total cost of ownership - 8.5% Improved functionality/level of automation - 12.8% Increased access to information by stakeholders - 27.7% More flexible operations infrastructure - 19.1% Better service to customers/suppliers - 31.9%
12.8% 8.5%
27.7% 31.9%
19.1%
Nearly one-third of survey respondents (31.9 percent) identified better service to suppliers/ customers as the biggest benefit of mobile applications in AP, AR, or payments.
More than one-quarter of survey respondents (27.7 percent) stated that increased access to information by stakeholders is the biggest benefit of mobile applications in AP, AR, or payments, while 19.1 percent of survey respondents cited more flexible operations infrastructure, 12.8 per-cent of survey respondents identified improved functionality/level of automation, and 8.5 perper-cent of survey respondents identified reduced cost of ownership.
One survey respondent cited streamlined approval processes as the biggest benefit of mobile applications in AP, AR, or payments.
Among survey respondents from companies with more than $1 billion in annual revenues, 31.3 percent identified increased access to information by stakeholders as the biggest benefit of mobile applications in AP, AR, or payments, while 31.3 percent of respondents from this group cited better service to customers/suppliers as the biggest benefit of mobile applications in AP, AR, or payments.
Sixty percent of survey respondents from healthcare organizations indicated that better service to customers/suppliers is the biggest benefit of mobile applications in AP, AR, or payments. Half of the survey respondents from manufacturing organizations (50 percent) indicated that better service to customers/suppliers is the biggest benefit of mobile applications in AP, AR, or payments.
Compared to 12 months ago, how have your views of mobile AP, AR, or payments applications changed?
A key reason for the slow adoption of mobile applications in AP, AR, or payments may be that companies are not becoming more comfortable with the technology.
Significantly more comfortable - 8% Slightly more comfortable - 40% Unchanged - 50%
Slightly less comfortable - 2% Significantly less comfortable - 0%
8%
40% 50%
2%
Fifty percent of survey respondents indicated that their views of mobile AP, AR, or payments applications have not changed in the past 12 months.
Forty percent of survey respondents stated that they are slightly more comfortable with mobile AP, AR, or payments applications than they were 12 months ago, while 8 percent of survey respondents indicated that they are significantly more comfortable with mobile AP, AR, or payments applications.
Conversely, 2 percent of survey respondents stated that they are slightly less comfortable with mobile AP, AR, or payments applications than they were 12 months ago.
The majority of survey respondents from companies with more than $1 billion in annual revenues (58.8 percent) indicated that they are slightly more comfortable with mobile AP, AR or payments applications than they were 12 months ago. Some 41.2 percent of survey respondents from this group stated their views on mobile AP, AR, or payments applications have not changed in the past year.
Two-thirds of survey respondents from manufacturing organizations (66.7 percent) indicated that their views of mobile AP, AR, or payments applications have not changed in the past year. Some 33.3 percent of survey respondents in this group stated that they are slightly more comfortable with the technology.
Forty percent of survey respondents from healthcare organizations indicated that they are slight-ly more comfortable with mobile AP, AR, or payments applications than they were 12 months ago, while 20 percent of survey respondents in this group stated that they are significantly more comfortable with the technology. Some 40 percent of survey respondents from healthcare orga-nizations indicated that their view of mobile AP, AR, or payments applications has not changed over the past year.
What do you believe is the biggest obstacle to mobile adoption in AP, AR, or payments?
Like cloud-based solutions, perceived security issues are seen as the top obstacle to mobile adoption in AP, AR, and payments.
2.2%
Perceived security issues - 35.6% Lack of management buy-in - 17.8% Lack of a compelling business case - 13.3% Lack of budget for new initiatives - 15.6% Lack of compelling solutions/applications - 2.2% Customer/supplier resistance - 0%
Concerns about integration with legacy sysems and/or processes - 15.6%
15.6%
35.6%
17.8% 13.3%
15.6%
More than one-third of survey respondents (35.6 percent) identified perceived security issues as the biggest obstacle to mobile adoption in AP, AR, or payments.
Some 17.8 percent of survey respondents cited a lack of management buy-in as the biggest obstacle to mobile adoption in AP, AR, or payments, while 15.6 percent identified a lack of budget for new initiatives, 13.3 percent of survey respondents cited the lack of a compelling business case, and 2.2 percent identified a lack of compelling solutions/applications.
Additionally, survey respondents wrote that user resistance to the technology, a lack of manage-ment awareness of security and risk controls, and a lack of a clear need for the technology are other obstacles to mobile adoption in AP, AR, and payments.
The majority of survey respondents from companies with more than $1 billion in annual revenues (53.3 percent) indicated that perceived security issues are the biggest obstacle to mobile adop-tion in AP, AR, or payments.
Survey respondents from healthcare organizations see perceived security issues and a lack of budget for new initiatives as the biggest obstacles to mobile adoption in AP, AR, or payments. Both obstacles were identified by 40 percent of survey respondents in this group.
Half of the survey respondents from manufacturing organizations (50 percent) cited perceived security issues as the biggest obstacle to mobile adoption in AP, AR, or payments.
A plurality of survey respondents from transportation organizations (50 percent) identified a lack of a compelling business case as the biggest obstacle to mobile adoption in AP, AR, or payments.
Overall, how would you characterize the mobile AP, AR, or payments applications you’ve reviewed?
Survey respondents who have reviewed mobile AP, AR, or payments applications have mixed opinions.
Impressive - 14% Adequate - 26%
Lacking key functionality - 12% Not ready for prime time - 4% I haven’t reviewed any mobile AP, AR or payments applications - 44% 14% 26% 12% 4% 44%
Twenty-six percent of survey respondents who have reviewed mobile AP, AR, or payments ap-plications characterized the technology as adequate. Similarly, 14 percent of survey respondents indicated that the mobile AP, AR, or payments applications that they have reviewed are impressive. Conversely, 12 percent of survey respondents who have reviewed mobile AP, AR, or payments applications stated that the technology lacks key functionality. Some 4 percent of survey respon-dents who reviewed mobile AP, AR, or payments applications indicated that the technology is not ready for prime time.
Forty-four percent of survey respondents stated that they have not reviewed mobile AP, AR, or payments applications.
Among survey respondents from companies with more than $1 billion in annual revenues, 29.4 percent characterized the mobile AP, AR, or payments applications that they have reviewed as impressive, while 17.6 percent stated that the mobile AP, AR, or payments applications that they have reviewed are adequate.
While 60 percent of survey respondents from healthcare organizations indicated that they have not reviewed mobile AP, AR, or payments applications, 20 percent of those who have reviewed the technology came away impressed and 20 percent found it adequate.
The reviews were more mixed among survey respondents from manufacturing organizations:
•
22.2 percent of survey respondents in this group were impressed by the mobile AP, AR, or payments applications that they reviewed.•
11.1 percent of survey respondents in this group characterized the technology as adequate.•
11.1 percent of survey respondents in this group stated the technology lacks key functionality.More than half of the survey respondents from manufacturing organizations (55.6 percent) indi-cated that they have not reviewed mobile AP, AR, or payments applications.
How satisfied are you with your company’s mobile applications for AP, AR, or payments?
Mobile AP, AR, and payments applications also get mixed reviews from users of the technology.
Extremely satisfied - 0% Satisfied - 66.7% Dissatisfied - 33.3% Extremely dissatisfied - 0% Too early to tell - 0%
66.7% 33.3%
While two-thirds (66.7 percent) of survey respondents who use mobile AP, AR, or payments applications indicated that they are satisfied with the technology, 33.3 percent of survey respondents who use mobile AP, AR, or payments applications stated that they are dissatisfied with the technology – significantly higher than the percentage of users of cloud-based AP and AR applications that indicated they were dissatisfied with the technology.
All of the survey respondents from companies with more than $1 billion in annual revenues that use mobile applications for AP, AR, or payments indicated that they are satisfied with the technology. Similarly, all of the survey respondents from manufacturing organizations that use mobile appli-cations for AP, AR, or payments indicated that they are satisfied with the technology.
Conclusion
The adoption of cloud-based and mobile solutions in AP, AR, and payments disbursement remains low. Yet, financial operations professionals recognize the ability of these solutions to speed deployment of new applications and provide enhanced functionality and levels of automation. Perceived security and integration issues appear to be the top obstacles to adoption. But this survey suggests that companies may be missing a golden opportunity to impact their bottom line and increase operational efficiency through these technologies. For instance, the majority of survey respondents are satisfied with their cloud-based AP, AR, or payments disbursement solutions. A whopping two-thirds of survey respondents are satisfied with their mobile solutions. It’s not surprising, then, that most survey respondents plan to increase their spending on
cloud-based and mobile technology. But the combination of ever-increasing pressure to reduce operations costs and the strong results achieved by early adopters of cloud-based and mobile solutions leaves us wondering whether AP, AR, and payments professionals should accelerate their deployment plans.
Appendix
Survey questions
Cloud-based AP applications enable my company to: . . . .17
Cloud-based AR applications enable my company to: . . . .22
Cloud-based payments applications enable my company to: . . . .24
Compared to 12 months ago, how have your views of mobile AP, AR, or payments applications changed? . . . .28
Compared to traditional on-premise, licensed solutions for AP, AR, or payments processing, I believe cloud-based solutions are: . . . .13
Compared with 12 months ago, how have your views of cloud-based AP, AR, or payments applications changed? . . . .10
Does your company currently use cloud-based applications for accounts payable? . . . .16
Does your company currently use cloud-based applications for accounts receivable? . . . .21
Does your company currently use cloud-based applications for payments disbursement? . . . .23
Does your company use a public or private cloud for accounts payable? . . . .18
Does your company use a public or private cloud for accounts receivable? . . . .22
Does your company use a public or private cloud for payments disbursement? . . . .25
Does your company use cloud-based applications outside of AP, AR, or payments? . . . .15
Does your company use mobile applications as part of its AP, AR, or payments processing? . . . .26
How many employees does your company have? . . . .8
How satisfied are you with your company’s cloud-based AP applications? . . . .17
How satisfied are you with your company’s cloud-based AR applications? . . . .22
How satisfied are you with your company’s cloud-based payments applications? . . . .24
How satisfied are you with your company’s mobile applications for AP, AR, or payments? . . . .31
On which continent is your company based? . . . .7
Overall, how would you characterize the cloud-based AP, AR or payments solutions you’ve reviewed? . . . .14
Overall, how would you characterize the mobile AP, AR or payments applications you’ve reviewed? . . . .30
Over the next three years, how do you expect your company’s spending on cloud-based AP, AR, or payments applications to change? . . . .20
What describe your job function? . . . .9
What do you believe is the biggest benefit of cloud-based applications in AP, AR, or payments? . . . .11
What do you believe is the biggest benefit of mobile applications in AP, AR, or payments? . . . .27
What do you believe is the biggest obstacle to cloud adoption in AP, AR, or payments? . . . .12
What do you believe is the biggest obstacle to mobile adoption in AP, AR, or payments? . . . .29
What industry is your company in? . . . .7
What is your annual revenue? . . . .8
What percentage of your company’s spending on new AP, AR, or payments applications in 2013 is represented by cloud-based solutions? . . . .19
