Published: 21 December 2000
Analyst(s): Kenneth Kerr, Avivah Litan
Management Summary In this Context Overview Report, we look at the trends in electronic invoicing and payment (EIP) from the business-to-business (B2B) perspective for service sector industries. We covered business-to-consumer (B2C) e-billing in Context Overview Report R-11-9521, published in August 2000. Both reports are based in large part on a year-end 1999 Gartner Electronic Bill Presentment and Payment (EBPP) survey of high-volume billers providing services both to consumers and to businesses. During 4Q00, Gartner has been undertaking an additional B2B e-invoicing survey of businesses in industries that primarily sell to other businesses. Compared with B2C e-billing, B2B e-invoicing is a more complex marketplace with a different set of drivers for adoption and different technical and workflow requirements. These B2B complexities point to a slow adoption rate both for billers and for payers in this space, but the benefits to both will lead to very high rates of e-invoicing and payer usage in the future. Some highlights of the current state of B2B e-invoicing among service industries include: o 18 percent of high-revenue (more than $0.5 billion) B2B billers present invoices on the Internet. This figure will grow to 40 percent in 2001. o Of B2B invoices, 9 percent are already presented and viewed electronically, through electronic data interchange (EDI), private network file transfers and the Internet. o B2B invoicing over the Internet will begin to pass the use of EDI e-invoicing by year-end 2002, even among major billers. o Reduced billing costs is the key adoption driver for B2B e-billing, but an improved payment process and customer bill review advantages are gaining in importance. o The lack of payer readiness to use e-billing and payer integration issues are key barriers to B2B billing adoption. o B2B e-billers spend an average of $490,000 in first-year implementations, with 33 percent spent on outsourcers.
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