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Building the Business Case in B2B EBPP and EIP

Published by: TowerGroup

Published: Jan. 1, 2001 - 12 Pages


Table of Contents


Highlights

Introduction

Market Drivers

  • Reductions to Direct Cost
  • Variability of Cost Components
  • Integration of the Electronic Supply Chain
  • Access to Broader Markets
  • Timeline Savings
  • Financial Management Advantages
  • Direct Marketing Potential
  • Customer Servicing Advantages
  • Competitive Advantage or Defense

    Conclusion










    Abstract

    The surge in business use of the Internet for supply chain activities such as evaluation of vendors, procurement, and logistics has increased the incentive to integrate business-to-business (B2B) transactions from end to end. This has heightened the impetus for electronic bill presentment and payments (EBPP) and electronic invoicing and payment (EIP), despite the fact that user levels are still quite low. TowerGroup estimates that around 2% of all US businesses will bill customers through the Internet this year, with another 15% planning to implement this capability within the next two years. As a foundation for the extensive process change necessary to move to Internet transacting for this core business function, this TowerGroup Research Note examines the components required to build the business case for B2B EBPP (for cyclical billing) and EIP (for one-time, discrete invoices). The Note examines the fundamentals of the business case from the perspectives of both the seller (biller) and buyer (payer), providing baseline comparative data, as available, and guidelines for analysis.

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