Connecting global business. Teknologisk Institut 13 th September 2011

Transcription

1 Connecting global business Teknologisk Institut 13 th September 2011

2 Me I do all sorts of stuff: Product Development, Integration Support, Sales support, Organizational development, etc. Cand.scient, Computer Science, Aalborg University Business card: Code Monkey Rolf Njor Jensen

3 Tradeshi From a Cloud Computing Perspective

4 The Tradeshi Platform is SaaS Always-on No on-site installation One version of the software Scales seamlessly Globally available solution Pay as you go (if you pay at all)

5 But really, we are PaaS Technically: App development framework, Open formats, REST API, Authentication/ Authentication Services. Provides: A platform on which you can build applications which use the business network of Tradeshift.

6 Platform Based on Cloud Solutions Based on IaaS, PaaS and SaaS solutions from other vendors Amazon (EC2, S3, Cloudfront, etc) Rackspace

7 Platform based on Cloud Solutions We pay as we go. No upfront paying off HW investments We pay only for the resources we use. We scale dynamically with current load We maintain an efficient product development pipeline (issue report -> verified fix in production as quick as 30min)

8 Tradeshi Organization By now ~ 60 employees globally We have zero servers. Really No IT support department. Really

9 Tradeshi Organization Google Apps (the basics) ( , calendar, documents, voice) Dropbox (filesharing) Yammer (knowledge sharing) Skype (Voice and IM) Gotomeeting, Gotowebinar (conference calls) Slideshare Github

10 Tradeshi Organization We pay as we go We only require an internet connection not even VPN to function Identity management is not unified but critical resources are easily cut off

11 Why is all this fluffy cloud stuff interesting?

12 About Tradeshi Founded in 2009 by Mikkel Hippe Brun, Gert Sylvest and Christian Lanng Launched first version of Tradeshift in 2010 Fastest growing network today with more than 60,000 companies signed up and growing with more than 2000 companies per week Active users in 190 countries Investors include Skype founders, PayPal and Notion Capital Currently employ 60 people Offices in London, Paris, Amsterdam Copenhagen and San Francisco (from October)

13 Every day companies exchange more than 300 million pieces of paper in the form of invoices and orders.

14 The cost of one piece of paper On average it takes 24 minutes to process one paper invoice, cosang from 15$ to 40$ each 10% of all invoices issued contains mistakes, 10% to 40% of invoices are disputed and 96% of all companies have re- issued invoices the last year On average companies get a phone call for every 1 out of 10 invoices with the most common quesaon Have you received my invoice? Paper is out of sync. It typically takes more than 5 days before paper invoices are registered and up to 14 days before they appear in management reports 12,000 paper invoices cost the environment 57.6 trees, 14.4 tons of Co2 and liters of water

15 So this is a huge problem, why hasn't it been solved?

16 The history of business document exchange Tradeshi3 goes viral, becomes worlds fastest growing business network 2011 TradeshiU is launched as the worlds first business cloud mixing financial transacaons and social network funcaonality 2010 TradeshiU founders works with the European commission to create cross- border standards for e- business in Europe 2008 TradeshiU founders launch worlds first free e- business network, 10 months later 25% of all Danish companies have joined Ariba, Basware and OB10 launch pure e- invoicing network First internet trade portals appear with limited success Scanning and OCR become a soluaon outside EDI, but sall very error prone Electronic data interchange takes off among very large companies Invoice prinang gets automated

17 Facts about networks like OB10, Basware or Ariba Very rarely is supply chain adoption over 10% due to high costs to suppliers The soft part of the business process like phone calls and is typically more than 25% of the total business cost which are not covered by Ariba or OB10 These networks typically get 70% of their revenue from their suppliers, this creates a massive barrier for adoption How much cost do you want to push down the supply chain? Where do the cost go?

18 The hidden cost on the supply chain 1,600,000 1,400,000 1,200,000 1,000, , , , , ,000 Customer Connection fees 224,000 1,190,000 Supplier Transaction fees AssumpAons: 7000 suppliers and 400,000 transacaons distributed 80%/20%, pricing based on compeaaon list prices

19 We believed it was time to take a fresh approach, to do something completely different. That s why we created Tradeshift.

20 We wanted to build a network where value flowed two ways Large enterprises connect in real- Ame with thousand of suppliers and customers Who in turn joins because they get the value from ge`ng a full business package and invoicing tool

21 Why Tradeshi is different It s completely free to join and to start sending invoices instantly You connect with companies just like you connect with colleagues on LinkedIn You can complete business transactions like invoices and orders You can also leave comments on them or update your status It spreads virally among companies doing business together Small companies use the web app and large companies can connect directly using API or other integration options

22 Our business model Free transactions increase participation Which reduce cost and increase value for both suppliers and customer Which increases the network effect Creating better supply chain relations And increase the customer business case

23 The Tradeshi Business Cloud

24 Engage and connect with your suppliers on the Tradeshift business cloud Manage Enroll Exchange Consolidate Protect Extend Secure

25 Branch Management Manage multiple branches without the complexity Create as many branches as you need Enable them to receive electronic invoices Setup individual recipients for comments and s Use the Business Firewall to create individual validation rules for each branch

26 Supplier Engagement Connect and engage with all your suppliers Send campaigns to suppliers you want to connect with on Tradeshift Segment suppliers according to maturity and geography Guide them to the different integration options Monitor progress and deliver targeted follow-up campaigns

27 Business Firewall Protect your business processes Automatic validation of business documents you receive Create your own business rules to check for payment terms or other custom fields Automate invoices, orders together with quote acceptances and rejections Create validations for local taxes and regulations Advanced anti-spam and fraud protection

28 Invoicing Open invoicing for everyone You can both send and receive invoices using Tradeshift or one of our connection options. It is always 100% free to use Tradeshift to send invoices, both on XML and PDF Receive invoices using either our certified plug and play connectors for SAP and Oracle Or install one of our batch connector apps, such as FTP, SFTP etc. Finally you can create a direct integration to our REST API with full integration to comments, BI data, etc.

29 Purchase Orders Improve your procurement process and data quality Send purchase orders to all your suppliers Allow suppliers to flip purchase orders to invoices Assign custom validation rules to purchase orders to allow either hard or soft matching Reduce invoice approval time

30 Archiving Archiving and compliance Remote back-up of all your business transactions for 10 years Audit logs, transactions and signature keys are stored together Complete data isolation and encryption Decide in which " jurisdiction you want " to store your data Fully searchable Certified by PWC" in more than 30" countries (including " US and all of EU)

31 Custom Enterprise Apps Customize Tradeshift to your specific needs Build your own apps that run on Tradeshift s business cloud Distribute them to all your suppliers to extend your processes or capture more data Integrate to other systems or processes like logistics Examples of apps being built are loyalty programs, new payment options, custom data fields and new document types

32 Dispute Resolution Resolve disputes directly on the invoice without lifting the phone Resolve disputes directly on the business documents in question Leave comments regarding content Reject invoices with a message about why Switch states real-time between accepted, pending and accepted Mark invoices as spam

33 Master Data Subscription Never update master data manually again All Tradeshift suppliers create a data profile for their company They have a big incentive keeping the information up-to-date as they want to get paid With Tradeshift Master Data Subscription you will automatically get pushed any changes in your suppliers master data.

34 Tradeshi Technology

35 The core business cloud

36 Secure Today we can offer greater security in the cloud than most first or second generation e-invoicing networks Unlike most existing vendors we don t just use a firewall to keep your data safe, we encrypt transactions Using the same multi-tenant technology as Google and Salesforce.com, we keep your data separate and secure at all times We keep signed and audited logs of all transactions going through our network meaning full accountability on all transactions

37 Scalable With active users in 190 countries we take global scalability very seriously We use a combination of multiple data centers and dynamic scaling of servers to ensure access to information across time zones Dynamic scaling of servers also allow us to meet transaction volumes regardless if it s a steady flow or a sudden peak We have the know-how from building some of the worlds largest b2b transaction networks prior to Tradeshift

38 Open The founders of Tradeshift are pioneers when it comes to open e-business standards Together the founders developed PEPPOL which is an open EU infrastructure for e- business They participated in the development of UBL an open standard for e-business used in more than a 100 countries Mikkel Hippe Brun (co-founder) is currently the chairman of the OASIS group on e- business network interoperability Tradeshift provides a completely open API for anyone who wants to integrate including full documentation and developer support developer.tradeshift.com

39 Compliant Tradeshift is built on UBL an open invoicing standard used in more than 100 countries PWC has certified Tradeshift s platform as VAT compliant in more than 30 countries We are constantly working with our enterprise customers to add VAT certifications in the markets that are relevant to them Tradeshift supports digital signatures in countries where it s a requirement We always try to balance business needs and legal prerequisites to make sure unnecessary requirements don t become barriers to supplier adoption

40 Commercial App Partners (and around 50+ smaller partners)

41 Customer stories

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43 The Kuehne+Nagel project Size: 165,000 suppliers Reach: 100 countries One of the worlds largest e-invoicing projects. Won against direct competition from Ariba, OB10 and Basware Invoicing Purchase Orders Branch Management Business Firewall Archiving Supply Chain RelaAons

44 Reason for choosing Tradeshi Our aim is to get as close to 100% electronic invoicing as possible, with minimal cost and impact to our suppliers. It was important to us that we did not force costs on our suppliers, and we are confident that they will recognize the benefits and sign up to TradeshiB. Jon Abrahamson, Senior Vice President, IT & Finance

45 Onboarding results a er one month 30% 25% 29% 20% 15% 19% 10% 11% 5% 0% 6% 1 week 2 week 3 week 4 week Data based on suppliers paracipaang in first wave in UK, US, Netherlands, Austria and Singapore

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47 The National Health Service project Size: 25,000 suppliers distributed on two shared service centers Reach: United Kingdom and EU The National Health Service is the worlds 5 th largest buyer, running the UK health programs from hospitals to medicine and even dentists. Invoicing Branch Management Business Firewall Archiving Supply Chain RelaAons

48 Reason for choosing Tradeshi As one of the largest NHS Shared Service organizahons in the UK, we wanted to reduce the burden of handling invoice and reduce transachonal costs. We reviewed several soluhons and TradeshiB s combinahon of being a free cloud based plamorm together with open standards made it a natural choice for us. We are commined to both reducing our costs as part of the drive to achieve 20bn savings within the NHS and to making prompt payments to our suppliers. TradeshiB allows us to do this quickly and easily and we are confident that our suppliers will embrace the benefits that it brings. Allison Balcombe, Business Development Manager, NHS/ASP Nick Wood, Director of Shared Services, NHS/ASP

49 Onboarding results a er one month for NHS 30% 25% 29% 20% 15% 17% 10% 5% 9% 12% 0% 1st Week 2nd Week 3rd Week 4th Week Number of suppliers converted from invites sent in June 2011

50 Cloud computing enables new business models