2022 Trends in Integrated Invoice to Cash Automation | Emagia https://www.emagia.com/resources/ebooks/trends-in-integrated-invoice-to-cash-i2c-automation/

1. 2022 Trends in Integrated
Invoice-to-Cash (I2C)
Automation

2. Agenda
• Introduction
• I2C Technology Trends in 2022
• Key Components of Integrated I2C Applications
• I2C Technology Functionality
• Case Study
• Benefits
• Conclusion
• Questions

3. 3
Introduction
• What is Invoice-to-Cash (I2C)?
• Invoice-to-Cash (I2C) refers to the process from
the moment an invoice is created until the
customer's debt (payment) is settled.
• An efficient invoice-to-cash process is critical for
businesses to maintain a smooth flow of
operations.
• Any bottlenecks in the invoice-to-cash process
can disrupt the whole process and trigger delays
that can impact cash flow.

4. 4
Introduction
What are Integrated Invoice-to-Cash (I2C) applications?
Integrated Invoice-to-Cash (I2C) applications are a new wave of
integrated cloud platforms for accounts receivables operations aimed to
drive high digital efficiency, improve cash flow and enhance customer
experience.
According to Gartner, integrated I2C applications use a single platform
with automation and predictive capabilities to drive hyper-efficiency in
the AR management process.

5. 5
The integrated I2C market has been growing rapidly, and is expected to reach $3 billion
by 2024. The pandemic has further accelerated the demand for I2C applications, as
organizations are urgently optimizing their internal processes for faster cash collections.
Top trends in I2C technology include:
A). An integrated solution is a key driver: An integrated application to manage end-to-
end I2C processes has become the key to achieve efficiency for most finance
organizations.
B). Clients seek better collaboration capabilities: Increased collaboration is becoming
a key priority for organizations evaluating the integrated I2C applications.
C). Vendors continue to expand AI capabilities: Integrated I2C vendors are
using AI capabilities for early identification of AR risk, prioritize collection activities
and achieve better cash application rates.
D). Expansion into new geographies through M&A: Vendors are aggressively
expanding their solutions to new geographies through M&A.
I2C Technology Trends in 2022

6. 6
Key Components of Integrated I2C Applications
1) Customer Invoicing Automation
2) Collections Automation
3) Customer Payments
4) Cash Application Automation
5) Deductions and Disputes Automation
6) Credit Monitoring
6 components of I2C applications for upgrading
your accounts receivable (AR) operations
Customer
Invoicing
Automation
Collections
Automation
Customer
Payments
Deductions and
Disputes
Automation
Cash
Application
Automation
Credit
Monitoring

7. I2C Technology Functionality:
Customer Invoicing Automation
Customer invoicing automation involves integrating
invoice data from ERP systems and distributing it to the
customer through various channels.
Invoice delivery can be automated by sending it to the
customer by email or on mobile, thereby shortening the
Invoice-to-Cash cycle.
Automating invoice delivery not only enables to meet
customer-specified formats, but also facilitates quicker
payments.

8. I2C Technology Functionality:
Collections Automation
Collections automation provides businesses with a single view
of AR, prioritizing tasks lists and customer interactions.
The use of smart tools replaces manual collection tasks,
reduces DSO, and increases transparency in the AR portfolio.
AI-powered Digital Assistants—like Emagia’s Gia—can be used
to proactively interact with customers, speed up collections,
resolve disputes, and deliver a superior customer experience.

9. I2C Technology Functionality:
Customer Payments
Customer payments involves enabling receipt of customer
payments through multiple payment modes across
currencies.
Digital is emerging as the latest industry trend for sending
customers request-to-pay reminders and giving them
access to faster, more flexible payment options.
The need for digital payments is increasing because there
is a shift towards touchless payments post COVID.
Moreover, digital payments are highly secure and help
overcome payment cycle slowdowns associated with
conventional modes like checks.

10. I2C Technology Functionality:
Cash Application Automation
Cash application automation involves automatically
matching customer payments and remittance info to
open invoices.
Efficiency in cash application is usually impacted due to the
complexity of matching invoices to payments and
remittances that come through many channels, in multiple
document types, various data formats, and in many
languages and currencies.
AI-powered cash application can help overcome these
challenges by automatically extracting payments and
remittance data and apply it to open invoices with
95% and above straight-through cash posting.

11. I2C Technology Functionality:
Deductions and Disputes Automation
Involves resolving invoice deductions and disputes
with effective tracking, coding, and routing.
Customer Self-service/Electronic Invoice
Presentment and Payment (EIPP) portals can
empower customers to find answers to their
deductions/dispute-related questions without having
to reach out to customer service staff for help.
AI-powered deductions management and dispute
resolution automates workflows to prioritize and
resolve disputes faster while improving cash flow
and enhancing customer satisfaction.

12. I2C Technology Functionality:
Credit Monitoring
Credit monitoring involves reviewing the credit profile of customers with
the latest credit scoring and credit bureau reports.
AI-powered B2B credit monitoring empowers businesses with smarter
data to make accurate credit decisions with real-time insight into the
changing risk profile of customers.
AI-based credit monitoring solutions accelerate credit processing, help
onboard customers faster, thereby increasing revenue.

13. 13
Problem Overview
AHA launched the eCommerce site ShopCPR to sell CPR equipment
and classes online. Credit Processing cycle time was over 2 weeks.
They needed B2B digital credit solution to accept more customers and
do more business.
Customer Value
•Deployed Emagia Digital Credit Solution - Mobile capability
•Digital signatures, digital trade and business reference checks
•Integrated with Experian, AHA custom score-card, automatic credit limit
decisions enabled.
•AHA reduced B2B credit approval process from 2 weeks to 1 to 2 days
•Now processing over 200 -300 credit applications per month
•Scalable foundation for digital ecommerce growth
Case Study

14. 14
Challenge:
AR management needed overall improvement.
SAP deployed in 30 countries, multiple languages
Solution:
Emagia AI-powered Digital Assistants for Deductions, Cash
Application, Collections and Analytics modules
Customer Value Achieved:
•Deduction resolution cycle time reduced to 5 days
•Auto-cash hit rate increased from 50 to 80%
•DSO reduced 7% in 6 months
Customer Success Story –
Global Medical Products Supplier

15. Benefits of Integrated I2C Automation
Enhanced Effectiveness: World Class AR Performance
Cost Savings: staff cost, bad debt expense, funding of AR
Improved Customer Experience
Increased Cash Flow from AR
Higher Cash Flow & Lower Cost
over the Long Term
Improved Customer
Experience/Satisfaction
Low Cost
Operations
Greater
Cash Flow
Increased Cash &
Profit

16. Conclusion
• “Technology-driven” process improvement has replaced
pure process improvement as the major driver of
improvement in the I2C process.
• The use of AI in the I2C process can deliver hyper-efficiency
across customer invoicing, collections, payments, cash
application, deductions and dispute resolution, and credit
monitoring
• It has never been easier, faster or more cost effective to
automate I2C operations

17. If you have any questions or comments
about this session, please let us know
in the chat box or write to us at
info@emagia.com
Orders
Credit
Cash
Application
Collections
Deductions
Payments
Invoicing