1. T&E Expense ManagementThe Best-in-Class Pillars of Next-Generation Expense Management March 2012 Christopher J. Dwyer~ Underwritten, in Part, by ~

2. T&E Expense Management Page 2 Executive Summary Modern management of expenses related to Travel and EntertainmentResearch Benchmark (T&E) has undergone an evolution from traditional back-office function toAberdeens Research strategic internal set of processes. The next-generation T&E expense Benchmarks provide an management program is built on the Best-in-Class pillars of modern expense in-depth and comprehensive management, including analytical, mobile, cloud and integrated capabilitieslook into process, procedure, and processes, and has proven to drive tremendous value from a complex methodologies, and spend category that is necessary for driving corporate business value. The technologies with best practice T&E Expense Management research study, conducted in January andidentification and actionable February 2012 of 140 enterprises, unearths the Best-in-Class framework for recommendations effective expense management and seeks to educate organizations on the strategic value of next-generation approaches. Best-in-Class Performance Aberdeen used three key performance criteria to distinguish Best-in-Class companies: the cost to process a single expense report, rate of compliance to corporate travel policies, and the percentage of business travel spend under management. Top-performing organizations are known for their superior performance, including: 60% lower expense-processing costs than all other organizations A 43% higher rate of business travel spend under management A 31% higher rate of corporate policy compliance Competitive Maturity Assessment Survey results show that the firms enjoying Best-in-Class performance shared several common characteristics, including: 57% higher likelihood than all other companies to leverage end-to-end travel and expense management solutions 54% higher likelihood to regularly-report on policy compliance 50% higher likelihood to have real-time visibility into T&E spendingagainst budget Required Actions In addition to the specific recommendations in Chapter Three of this report, to achieve Best-in-Class performance, companies must: Leverage next-generation expense management attributes, such asanalytical, mobile, and integrated capabilities, to enhance programs Develop visibility into T&E spending against corporate budgets Formalize and standardize key processes related to T&E expensemanagementThis document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for Telephone: 617 854 5200 2012 Aberdeen Group. objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. www.aberdeen.com Fax: 617 723 7897and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc. 3. T&E Expense ManagementPage 3Table of ContentsExecutive Summary....................................................................................................... 2Best-in-Class Performance ..................................................................................... 2Competitive Maturity Assessment ....................................................................... 2Required Actions...................................................................................................... 2Chapter One: Benchmarking the Best-in-Class .................................................... 4T&E Expense Management in 2012...................................................................... 4The Maturity Class Framework ............................................................................ 5The Best-in-Class PACE Model ............................................................................ 6The Pillars of Best-in-Class Expense Management ........................................... 7Chapter Two: Benchmarking Requirements for Success ................................... 9Competitive Assessment ........................................................................................ 9Expense Management Capabilities ..................................................................... 11Best-in-Class Technology Utilization ................................................................. 12Chapter Three: Required Actions ......................................................................... 15Laggard Steps to Success ...................................................................................... 15Industry Average Steps to Success .................................................................... 15Best-in-Class Steps to Success ............................................................................ 16Appendix A: Research Methodology..................................................................... 17Appendix B: Related Aberdeen Research ............................................................ 19Featured Underwriters .............................................................................................. 20FiguresFigure 1: Expense Management Priorities for 2012 .............................................. 4Figure 2: Top Expense Management Challenges / Pressures .............................. 5Figure 3: The Pillars of Best-in-Class Expense Management ............................... 7Figure 4: Best-in-Class Technology Utilization..................................................... 12Figure 5: Expense Management Technology Roadmap ...................................... 14TablesTable 1: Top Performers Earn Best-in-Class Status.............................................. 6Table 2: The Best-in-Class PACE Framework ....................................................... 6Table 3: The Competitive Framework................................................................... 10Table 4: The PACE Framework Key ...................................................................... 18Table 5: The Competitive Framework Key .......................................................... 18Table 6: The Relationship Between PACE and the Competitive Framework......................................................................................................................................... 18 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 4. T&E Expense ManagementPage 4Chapter One: Benchmarking the Best-in-ClassCorporate travel has long been considered an accepted cost of conductingFast Factsbusiness; in fact, expenses related to Travel and Entertainment (T&E) T&E expenses account forencompass 8% to 12% of the average organizations total budget. With this 8% to 12% of the averagesignificant level of corporate resources attributed to this complex spend organizations total budgetarena, it has become critical for organizations in 2012 to approach expense Best-in-Class organizationsmanagement with next-generation strategies and solutions and ensure thathave driven 60% lowerthey are driving value from the T&E category. expense-processing coststhan all other companiesT&E Expense Management in 2012Nearly 70% of organizations across the globe view T&E expensemanagement as a strategic internal function. Aligned with this notion is thefact that companies are prioritizing the improvement of key expensemanagement processes (58%, Figure 1) as their major catalyst for expensemanagement in 2012. Modern expense management includes processes suchas expense creation, submission, approval workflow, reimbursement anddata analytics, factors that when enhanced via next-generation strategies andtechnologies can drive tremendous corporate value.Figure 1: Expense Management Priorities for 2012 n=140Source: Aberdeen Group, February 2012The T&E Expense Management study also finds that organizations are honedinto driving more value out of their business travel (57%), a factor which islinked directly to the level of enterprise financial resources associated withthe T&E category. Visibility (55%) and intelligence (42%) are also high on thepriority list, as companies are looking more and more to improve analyticalcapabilities and improve their understanding of the spending and suppliersassociated with corporate business travel. 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 5. T&E Expense ManagementPage 5The challenges and pressures highlighted in Figure 2 reflect a level ofcorporate travel that has not been seen since the economic downturn; withmore and more organizations reinstating travel budgets (and increasingthose budgets), a major challenge that arises is employee behavior andimplications regarding a lack of compliance to corporate travel policies andguidelines (59%).Figure 2: Top Expense Management Challenges / PressuresT&E expense management is ahigh priority function,particularly since when wemanage it efficiently it allows usto bill expenses out to ourclients. There is a very highfocus on audit and compliance. ~ Corporate Manager, LargeNorth American Enterprisen=140Source: Aberdeen Group, February 2012In addition to the overarching pressure of enforcing proper businesstraveler behavior, organizations are also focused on two other core areas:cost and visibility. Analytics (47%), an arena we see Best-in-Classorganizations heavily relying upon, play a major role in the modernorganizations expense management program. Coupled with inadequateglobal supplier visibility (25%), the typical enterprise seeks to not onlyimprove the processes relevant to the management of T&E expenses, butalso to enhance analytical capabilities and visibility to effectively forecast,plan and budget for a category that comprises a significant chunk ofcorporate finances.The Maturity Class FrameworkAberdeen used the following three key performance metrics to distinguishthe Best-in-Class from Industry Average and Laggard organizations:compliance to corporate policies concerning T&E, business travel spendunder management, and the cost to process a single expense report(including costs for processes regarding accounting, auditing, report / review/ approval time, etc.). 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 6. T&E Expense ManagementPage 6Table 1: Top Performers Earn Best-in-Class Status Definition ofDefinition: Business Travel Mean Class Performance Spend Under ManagementMaturity Class Best-in-Class: Business travel spend under 90% compliance to corporate policies concerning T&Emanagement is defined asTop 20% 85% business travel spend under management the percentage of planned of aggregate $7.91 cost to process a single expense reporttravel spend that is actively performance scorersmanaged and accounted for Industry Average: 77% compliance to corporate policies concerning T&Ein corporate budgeting / Middle 50% planning / forecasting 64% business travel spend under management of aggregate performance scorers $17.87 cost to process a single expense reportLaggard: 40% compliance to corporate policies concerning T&EBottom 30% 19% business travel spend under management of aggregate performance scorers $25.72 cost to process a single expense report Source: Aberdeen Group, February 2012Best-in-Class organizations in the T&E Expense Management research studyare noted for their superior performance across three major metrics andtheir advantages over all other companies. These top-performingorganizations have driven 60% lower expense-processing costs, experienceda 43% higher rate of business travel spend under management, and achieveda 31% higher rate of corporate policy compliance.The Best-in-Class PACE ModelEffective management of expenses related to T&E requires a combination ofstrategic actions, organizational capabilities, and enabling technologies thatcan be summarized as shown in Table 2.Table 2: The Best-in-Class PACE FrameworkPressures ActionsCapabilitiesEnablers Improve processes Automate key Real-time visibility into End-to-end expense management solutionrelated to thecomponents of T&Eexpense spending against Corporate card / expense managementmanagement of expensecorporate budgets integrationT&E expense management Alignment between Automated analytics / reporting / BI Leverage analytics expense management and Mobile travel and expense managementand reporting to overall corporate goals / application / portalimprove expenseobjectives Automated expense reimbursementspend intelligence Regular reporting on Expense management module as part of a travel policy compliance larger financial suite Source: Aberdeen Group, February 2012 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 7. T&E Expense ManagementPage 7The Pillars of Best-in-Class Expense ManagementModern expense management has evolved from its back-office roots into amulti-faceted program that involves a strategic blend of next-generationsolutions and approaches. Best-in-Class enterprises have driven a top-tierlevel of performance across a series of key metrics related to T&E expensemanagement; it is within this maturity class of organizations that we look tothe "pillars" of expense management in 2012 (Figure 3).Figure 3: The Pillars of Best-in-Class Expense Management[T&E expense management] isa significant activity. It is verydifficult to plan so promptvisibility of actual spending iscrucial. ~ Director, Small Asia / PacificOrganizationn=140Source: Aberdeen Group, February 2012When looking at the advantages achieved by Best-in-Class organizations, it isclear that their achievements are driven by three major attributes withintheir T&E expense management program: integration (78%), analytics (57%)and mobile (42%). Top-performing organizations have relied upon thesepillars to support, enhance and streamline major expense managementprocesses and drive tremendous value: Through integration between corporate card programs and expensemanagement systems, Best-in-Class organizations have created aholistic process for the cycle of an expense report, from expensecreation to reimbursement. Analytics present top-performing organizations with the necessaryintelligence for linkage to corporate forecasting and planning, afactor which contributes to enhanced visibility into all travelspending and the utilization of that intelligence in corporate-widebudgeting. Mobile travel and expense management applications (and mobile-optimized web portals) offer business travelers the power of 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 8. T&E Expense ManagementPage 8expense management technology while on the road or away fromthe office, allowing both employees and executives to submit /approve expenses on business trips.The three pillars addressed above will be discussed at-length in the nextchapter. We will also learn the specific components of the Best-in-Classexpense management program and highlight the necessary capabilities fordriving value out of business travel and improving overall performance ofT&E expense management.Aberdeen Insights Strategy: Travel and Procurement Collaboration Although the focus of a next-generation T&E expense management program centers on 21st-century technology functionalities and capabilities, one area that can be overlooked is internal collaboration. Within a complex spend category such as business travel, it becomes critical for organizations, considering the sizable chunk of corporate revenue associated with the area, that the procurement and sourcing teams have a hand in managing major suppliers. Best-in-Class organizations are over 30% more likely than all other enterprises to utilize a formal travel sourcing component as part of their larger T&E expense management program. This factor can help drive visibility into spending on business travel, as well as assist in negotiations with major travel suppliers (airlines, hotels / resorts, etc.). Best-in-Class companies have relied on this collaborative capability to drive their superior rate of business travel spend under management (43% higher rate than all other organizations). 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 9. T&E Expense ManagementPage 9 Chapter Two:Benchmarking Requirements for SuccessThe next-generation T&E expense management program is comprised of a Fast Factsmulti-faceted framework of nuanced approaches, strategies and solutions, all Best-in-Class companies aredesigned to streamline major processes, improve key visibility, increase T&E 64% more likely than allspend intelligence, and assist executives with achieving overall corporate and others to align expenseorganizational goals and objectives. In this chapter, we will detail the management processes andadvancements blazed by Best-in-Class corporations and highlight theirprograms and thereliance on core capabilities and technology solutions.achievement of greater corporate objectivesCase Study Leveraging Next-Generation Solutions The average business traveler saves three hours As detailed in the T&E Expense Management research study, Best-in-Class per month of productivity by organizations are leveraging a slew of next-generation strategies,leveraging a mobile travel approaches and solutions to streamline major processes and driveand expense management tremendous value. For the director of finance for a small, Northapplication / portal American hospitality organization, these next-generation attributes have helped improve performance and enhanced their management of expenses related to T&E. We have a two-tier approval process for audit purposes and attempt to audit approximate 80% of all submission, said the director of finance, providing light on the processes behind their 75% rate of corporate policy compliance. The organization has also looked to mobility as a prime differentiator. The mobile application is an excellent feature for real-time record-keeping of expenses for future review and final submission, he said, adding that over 23% of the companys total expenses are managed by mobile in some fashion. The organization has also relied on other next-generation enablers, such as end-to-end travel and expense management automation (cloud-based) and automated data analytics / business intelligence, to develop real-time visibility into all of their T&E-related spending against their corporate budgets.Competitive AssessmentAberdeen Group analyzed the aggregated metrics of surveyed companies todetermine whether their performance ranked as Best-in-Class, IndustryAverage, or Laggard. In addition to having common performance levels, eachclass also shared characteristics in five key categories: (1) process (theapproaches they take to execute daily expense management operations); (2)organization (corporate focus and collaboration among stakeholders); (3)knowledge management (contextualizing expense data and exposing itto key stakeholders); (4) technology (the selection of the appropriatetools and the effective deployment of those tools); and (5) performancemanagement (the ability of the organization to measure its expensemanagement results to improve its business). These characteristics 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 10. T&E Expense ManagementPage 10(identified in Table 3) serve as a guideline for best practices, and correlatedirectly with Best-in-Class performance across the key metrics.Table 3: The Competitive FrameworkBest-in-Class AverageLaggards Formal business travel group (standardized processes for management of business travel) Process75%62% 45% Documented processes for submission of expense reports96%83% 72% Alignment between expense management and overall Organizationcorporate goals / objectives69%34% 15% Real-time visibility into travel spending against budget63%36% 27% Knowledge Real-time reviews of pre-trip travel against budget60%31% 21% Expense management technology solutions / tools in place: 82% end-to-end 36% end-to-end 32% end-to-end expenseexpense expense management managementmanagement solution solutionsolution 80% automated 44% automated 31% automated data analytics / data analytics /data analytics / reporting / BI reporting / BIreporting / BI 78% commercial 51% commercial 44% commercialTechnology card / expense card / expensecard / expense management managementmanagement integrationintegration integration 67% automated 28% automated 21% automated billable time- billable time-billable time- and-travel and-traveland-travel management managementmanagement 41% mobile 30% mobile 25% mobile travel / expense travel / expensetravel / expense management managementmanagement applicationapplication application Expense management performance-tracking capabilities: 81% regular 40% regular 34% regular reporting on reporting onreporting on Performance policy policypolicy compliance compliancecompliance 75% regular 66% regular 41% regular audits ofaudits of audits of expense reportsexpense reports expense reports Source: Aberdeen Group, February 2012 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 11. T&E Expense ManagementPage 11Expense Management CapabilitiesThe Competitive Framework detailed in Table 3 serves as a comprehensiveguide to the Best-in-Class T&E expense management program. Thecapabilities of these top-performing organizations span a scope ofcompetencies related to processes, organization / collaboration, knowledgeand spend management, and performance-tracking attributes.Process: Standardized / Documented ProcessesStandardization and formalization are not new capabilities in the expensemanagement world, however, these simplified proficiencies should beconsidered basic cornerstones for any organizations expense management Our expense managementprogram. Having a formal internal travel group, or standardized processes solution has provided betterfor management of all business travel, ensures that business travelers follow controls and is easy to use fora set of guidelines for planning corporate travel and adhere to those sametravelers. The electronicpolicies while on the road. Best-in-Class organizations are 29% more likely approval workflow is less time-than all others to have this capability as part of their program, which is aconsuming and has driven costlikely contributor to their high level of corporate travel policy compliance. savings.~ Finance Manager, LargeOn a similar note, documented processes for submission of expenseHealth Services Companyreports, a capability in place in 19% more top-performing companies than allothers, reinforces approval workflow trees and points travelers in theproper direction in regards to which executive is responsible for approvingtheir expenses.Organization: Alignment between Expense Managementand the Greater EnterpriseOne often overlooked yet critical component of next-generation expensemanagement is the alignment between expense management processes andprograms and the achievement of greater corporate objectives. Thiscapability, in place in 64% more Best-in-Class organizations than all others,supports the notion of expense management as a truly strategic internalfunction and links the efficiencies of effective expense management withcorporate financial goals, as helping to curb non-compliant travel and drivedown expense-processing costs can significantly improve the bottom-line.Knowledge Management: The Real-Time FactorThe next-generation expense management program built by Best-in-Classorganizations relies upon the knowledge, visibility and intelligence intoseveral key aspects of business travel, such as spending, suppliers, and theramifications of travel on the overall company. Best-in-Class companies are50% and 57% more likely, respectively, to have real-time visibility into travelspending against corporate budgets and real-time visibility into pre-triptravel against corporate budgets. These real-time factors help top-performing organizations enact executive decisions in regards to travelwhen forecasting, planning and budgeting. When experiencing a revenueshortfall or other negative financial situations, Best-in-Class organizationscan easily view, in real-time, current and planned business travel and alteritineraries or outright cancel trips. 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 12. T&E Expense ManagementPage 12Performance Management: Compliance and AuditingA significant component of the Best-in-Class expense management programis regular monitoring of compliance to corporate travel policies andguidelines. This capability, in place in 54% more Best-in-Class organizationsthan all others, involves regular reporting on policy compliance to ensurethat business travelers are planning and executing trips that adhere to pre-negotiated agreements with suppliers and conform to organizational rulesregarding airfare, ground travel and meals.Similarly, regular auditing (a capability in place in 29% more Best-in-Classorganizations than all others) of expenses can help pinpoint instances ofemployee expense fraud or, like the capability in the previous paragraph,identify those expenses that have exceed the limits set forth by enterpriseguidelines and policies.Best-in-Class Technology UtilizationAny next-generation T&E expense management program is contingent on thereliance on core technology solutions and automation of key expensemanagement process. As detailed in Figure 4, Best-in-Class organizations aremaking use of technology to support their programs and drive ultimate value.Figure 4: Best-in-Class Technology UtilizationExpense managementtechnology has lowered thecosts of processing expensesand standardized the businessvalue of T&E.~ Procurement Director, Public Sector n=140Source: Aberdeen Group, February 2012The technology solutions listed in Figure 4 are critical components of thenext-generation expense management program. Best-in-Class companiesconsider these solutions to be cornerstones in the improvement of keyexpense management processes. In fact, utilization of these core, automatedenhancers has driven a superior level of performance in all organizationscurrently leveraging these solutions: End-to-end T&E expense management solutions, in place in 57%more Best-in-Class organizations than all others, streamline and 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 13. T&E Expense ManagementPage 13automate all facets of modern expense management, includingtravel-booking, expense submission, creation and approvalThe cloud has enabled us toworkflow, reimbursement and support back-end analytics. End-to-easily implement one solutionend solutions are hosted via the cloud, secured on-premise, or globally across all locations.leveraged as a hybrid mix. (Please read the Aberdeen Insight at the~ Finance Manager, Largeend of this chapter for additional information on how the cloud fitsPharmaceutical Manufacturerinto the future of expense management). Aberdeen research hasfound that users of end-to-end solutions have experienced 55%lower expense-processing costs and 37% higher rate of corporatetravel policy compliance than organizations not currently utilizingthis technology. The benefits of mobile solutions have been detailed in previousAberdeen research, however, it can be said that putting the powerof greater expense management technology directly into the handsof both executives (approve expenses, view current trips foremployees, gain access to spend information, etc.) and businesstravelers (change itineraries, book reservations and ground travel,digitally attach receipts to expenses, create and submit expenses,etc.). Best-in-Class organizations are 33% more likely than all othersto have this "pillar" of expense management as a core component oftheir programs. Aberdeen research has found that the average userof mobile technology saves over three hours per month ofproductivity by directly leveraging a mobile expense managementapplication / portal.Analytics: A Next-Generation EnablerBusiness travel, along with other complex spend arenas (such as contingentworkforce management, strategic meetings management, printed materials /services management, etc.), has evolved in recent years to become a crucialcomponent of overall strategic corporate planning. With nearly 70% oforganizations viewing T&E expense management as a moderately-to-highlystrategic function, it becomes necessary to gain the necessary informationand intelligence to accurately link the spending and ramifications ofcorporate travel with the goals and objectives of the greater organization.Best-in-Class companies are 53% more likely than all others to includeautomated analytics, reporting and Business Intelligence (BI) capabilities aspart of their expense management program. The following analyticalattributes have enhanced the modern T&E expense management programand helped Best-in-Class organizations drive an unheralded level of visibilityinto expense spending and overall T&E intelligence: Top-performing organizations are 76% more likely than all othercompanies to link the information / intelligence generated viaanalytics to executive-office planning and budgeting. With revenueplans scrutinized and every spent dollar playing a major role withinorganizational programs, it is critical for organizations to feed theexecutive office with intelligence regarding the value of businesstravel and how executives can forecast on an enterprise-wide basisutilizing knowledge from analytics, reporting and BI. 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 14. T&E Expense ManagementPage 14 Best-in-Class companies are 60% more likely than all others to trackand monitor the ROI of business travel via analytics. This factorhelps these top-performing organizations measure the true value ofany business trip and can assist in determining whether future travelis necessary for business development. Best-in-Class organizations are nearly 30% more likely to utilizeanalytics to identify savings opportunities within T&E spendinformation. By understanding the volume of spending with keysuppliers, this information can be leveraged by the procurement andsourcing units to negotiate discounts with airlines, hotels and othertravel providers.Aberdeen Insights Technology: Expense Management RoadmapAs evidenced throughout this research study, technology plays a pivotalrole in the modern T&E expense management program. However, whenlooking at how next-generation capabilities will affect the landscape ofsolutions within the expense management space, Aberdeen research hasdiscovered that "the cloud" is targeted as a long-term solution within theaverage organizations expense management technology roadmap (Figure5).Figure 5: Expense Management Technology Roadmapn=140 Source: Aberdeen Group, February 2012In looking at the future of expense management technology, the vastmajority (73%) of organizations are expected to leverage either a cloud-based / SaaS or hybrid mix (cloud and on-premise) solution. This directlyreflects the "next-generation" aspect of T&E expense management over thenext decade. Organizations will look to the cloud for simple accessibilityfor all executives and business travelers, as well as the real-timecomponents of analytics and reporting. 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 15. T&E Expense ManagementPage 15Chapter Three: Required ActionsThe next-generation T&E expense management program is built on aFast Factsframework of attributes that address process, collaborative, visibility and Industry Average companiesintelligence initiatives. The following recommendations for actions can helpare 40% more likely thanorganizations on the lower spectrum of the Maturity Class Framework Laggards to have visibilityreach a Best-in-Class level of expense management efficiency. into aggregate T&E spending Best-in-Class companies areLaggard Steps to Success56% and 27% more likelythan Industry Average Develop visibility into aggregate T&E spending across the organizations, respectively,entire organization. Visibility is a core competency in the greater to utilize end-to-endscope of expense management; in fact, Industry Averageexpense managementorganizations are 40% more likely than Laggards to have this type ofsolutions and mobile travelvisibility into enterprise-wide spending on business travel. In order and expense applications /for Laggard organizations to implement programmatic strategies, mobile-optimized webthey must first ensure that they know the level of spending on travel portalsacross all business units. Formalize and standardize major processes related to T&Eexpense management. Similar to the previous recommendation,it is crucial for Laggard enterprises to first master basiccompetencies before embarking into complex programs. IndustryAverage organizations are 31% more likely than Laggards to haveformalized travel management processes (including a formal travelmanagement group), which contributes to an understanding onspending on this area and how it effects the entire organization.Industry Average Steps to Success Develop real-time visibility into significant aspects of T&Eexpense management, such as spending against budget andpre-trip travel information. Best-in-Class organizations arenearly 60% more likely than Industry Average organizations to holdreal-time visibility into travel spending against corporate budgets;this is a critical factor in truly understanding the ramifications of theT&E category and ensuring that planned travel can be altered orcanceled if the organization faces unforeseen financial shortfalls. Leverage reliable and next-generation technology solutionsto enhance management of T&E expenses. Best-in-Classcompanies are 56% and 27% more likely than Industry Averageorganizations, respectively, to utilize end-to-end expensemanagement solutions and mobile travel and expense applications /mobile-optimized web portals. These two specific technologicalattributes automate and streamline key expense managementprocesses, and in the case of mobile solutions, help both businesstravelers and corporate executives tap into the power of end-to-end technology while on the road or away from the office. 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 16. T&E Expense ManagementPage 16Best-in-Class Steps to Success Continue to reap the benefits of corporate card andexpense management integration. Although 72% of Best-in-Class organizations are currently leveraging this union to drive atruly holistic expense management process, it is critical for Best-in-Class companies to fully-maximize the value of integration. Analready-superior level of spend intelligence can be improved, andprocurement and sourcing teams will benefit from increased [Our cloud-based expensevisibility into the global supplier base.management solution] has drastically changed our Utilize enhanced capabilities of mobile applications / processes for the better. It isportals to improve collaboration between regional unitsless costly and control andand corporate locations. Only 41% of Best-in-Class organizations reporting aspects are superior.are currently leveraging this nuanced mobile capability, which can ~ Corporate Executive, Smallinform business travelers where and when their peers are on theWholesale / Distributionroad. This information can spark collaborative developmentOrganizationbetween units / divisions that do not often have the opportunity tostrategize in a formal, in-person setting. Aberdeen Insights Summary Last years Expense Management for a New Decade research study heralded specific components of expense management that will play significant roles as the new decade progresses. As detailed in Chapter One, the pillars of Best-in-Class T&E expense management (integration, analytics and mobile) are perfect cornerstones for any organization looking to drive their expense management program into a truly strategic stratosphere. For organizations on the lower spectrum of Aberdeens Maturity Class Framework, it is critical to understand and master core competencies, such as formalized processes and the development of initiatives that can spur higher visibility into both T&E spending and usage. To build the next-generation T&E expense management program, as Best-in-Class organizations have done, companies across the globe must educate themselves on the benefits of end-to-end technology and corporate card integration, and utilize more modern attributes, such as analytics and mobile applications / portals, to round out an efficient set of processes that can improve the strategic value of expense management. 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 17. T&E Expense ManagementPage 17 Appendix A: Research MethodologyBetween January and February 2012, Aberdeen examined the use, theStudy Focusexperiences, and the intentions of 140 enterprises. Responding executivesAberdeen supplemented this online survey effort with telephone interviewscompleted an online surveywith select survey respondents, gathering additional information on T&Ethat included questionsexpense management strategies, experiences, and results. designed to determine the following:Responding enterprises included the following: The degree to which T&E Job title: The research sample included respondents with the expense management isfollowing job titles: manager / general manager (37%); directordeployed in their retail(22%); C-level (16%); SVP / VP (11%); and others.operations and the financial implications of the Department / function: The research sample included respondentstechnologyfrom the following departments or functions: procurement, supplychain, or logistics (23%); finance (15%); business development / sales The structure and(13%); corporate management (12%); human resources (5%); effectiveness of existing T&E expense managementoperations (5%); marketing (3%); and others. implementations Industry: The research sample included respondents from the Current and planned use offollowing industries: manufacturing (21%); software (11%); financial T&E expense managementservices (10%); public sector (8%); transportation / logistics (5%); to aid operational andretail (5%); and 25 others.promotional activities Geography: The majority of respondents (66%) were from North The benefits, if any, that haveAmerica. Remaining respondents were from the EMEA (19%), Asia- been derived from T&EPacific (10%) and South / Central America (5%) regions.expense management initiatives Company size: Forty-seven percent (47%) of respondents were fromlarge enterprises (annual revenues above US $1 billion); 27% wereThe study aimed to identifyfrom midsize enterprises (annual revenues between $50 million andemerging best practices for$1 billion); and 26% of respondents were from small businesses expense management, and to(annual revenues of $50 million or less).provide a framework by which readers could assess their own Headcount: Sixty-two percent (62%) of respondents were from largemanagement capabilities.enterprises (headcount greater than 1,000 employees); 19% werefrom midsize enterprises (headcount between 100 and 999employees); and 19% of respondents were from small businesses(headcount between 1 and 99 employees). 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 18. T&E Expense ManagementPage 18Table 4: The PACE Framework KeyOverview Aberdeen applies a methodology to benchmark research that evaluates the business pressures, actions, capabilities, and enablers (PACE) that indicate corporate behavior in specific business processes. These terms are defined as follows: Pressures external forces that impact an organizations market position, competitiveness, or business operations (e.g., economic, political and regulatory, technology, changing customer preferences, competitive) Actions the strategic approaches that an organization takes in response to industry pressures (e.g., align the corporate business model to leverage industry opportunities, such as product / service strategy, target markets, financial strategy, go-to-market, and sales strategy) Capabilities the business process competencies required to execute corporate strategy (e.g., skilled people, brand, market positioning, viable products / services, ecosystem partners, financing) Enablers the key functionality of technology solutions required to support the organizations enabling business practices (e.g., development platform, applications, network connectivity, user interface, training and support, partner interfaces, data cleansing, and management)Source: Aberdeen Group, March 2012Table 5: The Competitive Framework KeyOverview The Aberdeen Competitive Framework defines enterprises In the following categories: as falling into one of the following three levels of practices Process What is the scope of process and performance: standardization? What is the efficiency and Best-in-Class (20%) Practices that are the besteffectiveness of this process? currently being employed and are significantly superior to Organization How is your company currently the Industry Average, and result in the top industry organized to manage and optimize this particular performance. process? Industry Average (50%) Practices that represent theKnowledge What visibility do you have into key average or norm, and result in average industrydata and intelligence required to manage this process? performance. Technology What level of automation have you Laggards (30%) Practices that are significantly behind used to support this process? How is this automation the average of the industry, and result in below average integrated and aligned? performance. Performance What do you measure? Howfrequently? Whats your actual performance?Source: Aberdeen Group, March 2012Table 6: The Relationship Between PACE and the Competitive Framework PACE and the Competitive Framework How They InteractAberdeen research indicates that companies that identify the most influential pressures and take the mosttransformational and effective actions are most likely to achieve superior performance. The level of competitiveperformance that a company achieves is strongly determined by the PACE choices that they make and how well theyexecute those decisions.Source: Aberdeen Group, March 2012 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 19. T&E Expense ManagementPage 19Appendix B: Related Aberdeen ResearchRelated Aberdeen research that forms a companion or reference to thisreport includes: Expense Management for Professional Services; January 2012 The Mid-Market Expense Management Program; September 2011 Mobile Technology: Filling the Gap in Modern Expense Management;May 2011 Expense Management for a New Decade; February 2011 The State of T&E Expense Management; February 2010 T&E Expense Management Automation: Reduce Costs, Improve Control;June 2009Information on these and any other Aberdeen publications can be foundat www.aberdeen.com. Author: Christopher J. Dwyer, Senior Research Analyst, Global Supply Management (chris.dwyer@aberdeen.com)For more than two decades, Aberdeens research has been helping corporations worldwide become Best-in-Class.Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provideorganizations with the facts that matter the facts that enable companies to get ahead and drive results. Thats whyour research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% ofthe Technology 500.As a Harte-Hanks Company, Aberdeens research provides insight and analysis to the Harte-Hanks community oflocal, regional, national and international marketing executives. Combined, we help our customers leverage the powerof insight to deliver innovative multichannel marketing programs that drive business-changing results. For additionalinformation, visit Aberdeen http://www.aberdeen.com or call (617) 854-5200, or to learn more about Harte-Hanks, call(800) 456-9748 or go to http://www.harte-hanks.com.This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologiesprovide for objective fact-based research and represent the best analysis available at the time of publication. Unlessotherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not bereproduced, distributed, archived, or transmitted in any form or by any means without prior written consent byAberdeen Group, Inc. (2012a) 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 20. T&E Expense ManagementPage 20 Featured UnderwritersThis research report was made possible, in part, with the financial supportof our underwriters. These individuals and organizations share Aberdeensvision of bringing fact based research to corporations worldwide at little orno cost. Underwriters have no editorial or research rights, and the facts andanalysis of this report remain an exclusive production and product ofAberdeen Group. Solution providers recognized as underwriters weresolicited after the fact and had no substantive influence on the direction ofthis report. Their sponsorship has made it possible for Aberdeen Group tomake these findings available to readers at no charge.Concur is a leading provider of integrated travel and expense managementsolutions. Concurs easy-to-use Web-based and mobile solutions helpcompanies and their employees control costs and save time. Concurssystems adapt to individual employee preferences and scale to meet theneeds of companies from small to large. With Concurs mobile application,you can create, review and approve expense reports and book and changeyour travel itinerary hotels, airfare, taxis, rail and rental cars all fromyour smartphone. Learn more at www.concur.com.For additional information on Concur:Concur18400 NE Union Hill RoadRedmond, WA 98052Telephone: 877.4.CONCURwww.concur.commarketing@concur.com 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 21. T&E Expense ManagementPage 21Founded in 1999, Apptricity Corporation provides Supply ChainManagement and Dynamic Spend Management solutions. Customers benefitfrom reduced operational costs due to improvements in efficiencies andcompliance. Apptricity also offers multiple deployment alternatives toaddress customer demands including a perpetual license and Software-as-a-Service (SaaS). Built on an advanced Service-Oriented Architecture (SOA)framework, Apptricity solutions provide platform independence, broad-reaching integration, mass customization and hassle-free migration.For additional information on Apptricity Corporation:Apptricity Corporation5605 N. MacArthur BLVD., #90Irving, TX 75038Telephone 1: 314.596.0601Telephone 2: 800.693.2193www.apptricity.comwww.apptricity.com/contact 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 22. T&E Expense ManagementPage 22Nexonias expense report solution is implemented quickly in hours or days,and were unmatched in our responsiveness to unique business needs. Ouruser interface is intuitive and fast. Included is unlimited customer supportand training. Our integrations with accounting systems include Microsoft,NetSuite, SAP, Oracle, Sage, Intuit and others. We integrate with Amex,Visa and MasterCard.We work on all computers. We have mobile clients for iOS (iPhone, iPad)and Android, plus we work on all modern smartphones.Our biggest strengths are our system reliability and high level of customerservice. Personalized demos can be requested at www.nexonia.com.For additional information on Nexonia:Nexonia, Inc.161 Bay Street, 27th FloorToronto, Ontario, Canada M5J 2SITelephone 1 (Toll-free): 800.291.4829Telephone 2 (Direct): 416.480.0688www.nexonia.comsales@nexonia.com 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897 23. T&E Expense ManagementPage 23INTERPLX Expense Management is The New Standard in expensemanagement. As one of North Americas leading expense managementcompanies, INTERPLX has provided complete outsourced solutions since1994. INTERPLXs low-cost structure saves over 40% versus alternatives.The solution is delivered unbundled, so you only pay for what you need.INTERPLX total solution includes: On-demand, Web-based Expense Management Software Receipt Management Expense Report and P-card Auditing Reimbursements to Employees and Corporate Cards Records/Archive ManagementEight successive SAS 70/SSAE-16 Type II audits prove we are uniquelyqualified to meet the most demanding requirements. And your users willlove the simplicity and speed. Fast, easy and THE lowest cost in NorthAmerica. Join the growing list of delighted INTERPLX Global 2000 clients.For additional information on INTERPLX:INTERPLX Expense ManagementPO BOX 800- Shakopee, MN 55379Telephone: 952-857-5568www.interplx.comwww.interplx.com/contact/email-us/ 2012 Aberdeen Group.Telephone: 617 854 5200www.aberdeen.comFax: 617 723 7897 24. T&E Expense ManagementPage 24Spendvision is a leading innovator of transaction management solutions.Through just one technology platform Spendvision delivers more effectivepurchasing that increases business profitability, improves decision makingand delivers greater control and compliance. All this across the broadestrange of transactions from simple cash, card, online travel bookings andtelecoms right through to interactive coding, requisitions and dynamicallyfunded accounts.Spendvision is headquartered in the UK with offices in the US, Australia,New Zealand and Japan and works with leading customers and partnersaround the world. The Spendvision solution is available direct to businessesand is used by the likes of Rio Tinto, Essex County Council and De Beers.Its also available through partners including Visa, NAB and HRG whoprovide the solution to their customers in their own brand.For additional information on Spendvision:SpendvisionStrand Bridge House138-142 Strand, London WC2R 1HH, UKTelephone: +44 (020) 3077 4650www.spendvision.commarketing@spendvision.com 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897