T&E Expense Management The Best In Class Pillars Of Next Generation Expense Management

T&E Expense Management The Best-in-Class Pillars of Next-Generation Expense Management

March 2012

Christopher J. Dwyer

~ Underwritten, in Part, by ~

T&E Expense Management

© 2012 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897

Executive Summary Modern management of expenses related to Travel and Entertainment (T&E) has undergone an evolution from traditional back-office function to strategic internal set of processes. The next-generation T&E expense management program is built on the Best-in-Class pillars of modern expense management, including analytical, mobile, cloud and integrated capabilities and processes, and has proven to drive tremendous value from a complex spend category that is necessary for driving corporate business value. The T&E Expense Management research study, conducted in January and February 2012 of 140 enterprises, unearths the Best-in-Class framework for 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 spending against 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 as analytical, 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 expense management

Research Benchmark

Aberdeen’s Research Benchmarks provide an in-depth and comprehensive look into process, procedure, methodologies, and technologies with best practice identification and actionable recommendations

This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.

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Table of Contents Executive Summary ....................................................................................................... 2

Best-in-Class Performance ..................................................................................... 2 Competitive Maturity Assessment ....................................................................... 2 Required Actions ...................................................................................................... 2

Chapter One: Benchmarking the Best-in-Class .................................................... 4 T&E Expense Management in 2012 ...................................................................... 4 The Maturity Class Framework ............................................................................ 5 The Best-in-Class PACE Model ............................................................................ 6 The Pillars of Best-in-Class Expense Management ........................................... 7

Chapter Two: Benchmarking Requirements for Success ................................... 9 Competitive Assessment ........................................................................................ 9 Expense Management Capabilities ..................................................................... 11 Best-in-Class Technology Utilization ................................................................. 12

Chapter Three: Required Actions ......................................................................... 15 Laggard Steps to Success ...................................................................................... 15 Industry Average Steps to Success .................................................................... 15 Best-in-Class Steps to Success ............................................................................ 16

Appendix A: Research Methodology ..................................................................... 17 Appendix B: Related Aberdeen Research ............................................................ 19 Featured Underwriters .............................................................................................. 20

Figures Figure 1: Expense Management Priorities for 2012 .............................................. 4 Figure 2: Top Expense Management Challenges / Pressures .............................. 5 Figure 3: The Pillars of Best-in-Class Expense Management ............................... 7 Figure 4: Best-in-Class Technology Utilization ..................................................... 12 Figure 5: Expense Management Technology Roadmap ...................................... 14

Tables Table 1: Top Performers Earn Best-in-Class Status.............................................. 6 Table 2: The Best-in-Class PACE Framework ....................................................... 6 Table 3: The Competitive Framework ................................................................... 10 Table 4: The PACE Framework Key ...................................................................... 18 Table 5: The Competitive Framework Key .......................................................... 18 Table 6: The Relationship Between PACE and the Competitive Framework ......................................................................................................................................... 18



Chapter One: Benchmarking the Best-in-Class

Corporate travel has long been considered an accepted cost of conducting business; in fact, expenses related to Travel and Entertainment (T&E) encompass 8% to 12% of the average organization's total budget. With this significant level of corporate resources attributed to this complex spend arena, it has become critical for organizations in 2012 to approach expense management with next-generation strategies and solutions and ensure that they are driving value from the T&E category.

T&E Expense Management in 2012 Nearly 70% of organizations across the globe view T&E expense management as a strategic internal function. Aligned with this notion is the fact that companies are prioritizing the improvement of key expense management processes (58%, Figure 1) as their major catalyst for expense management in 2012. Modern expense management includes processes such as expense creation, submission, approval workflow, reimbursement and data analytics, factors that when enhanced via next-generation strategies and technologies can drive tremendous corporate value.

Figure 1: Expense Management Priorities for 2012

Source: Aberdeen Group, February 2012

The T&E Expense Management study also finds that organizations are honed into driving more value out of their business travel (57%), a factor which is linked directly to the level of enterprise financial resources associated with the T&E category. Visibility (55%) and intelligence (42%) are also high on the priority list, as companies are looking more and more to improve analytical capabilities and improve their understanding of the spending and suppliers associated with corporate business travel.

Fast Facts

√ T&E expenses account for 8% to 12% of the average organization's total budget

√ Best-in-Class organizations have driven 60% lower expense-processing costs than all other companies

n=140



The challenges and pressures highlighted in Figure 2 reflect a level of corporate travel that has not been seen since the economic downturn; with more and more organizations reinstating travel budgets (and increasing those budgets), a major challenge that arises is employee behavior and implications regarding a lack of compliance to corporate travel policies and guidelines (59%).

Figure 2: Top Expense Management Challenges / Pressures


In addition to the overarching pressure of enforcing proper business traveler behavior, organizations are also focused on two other core areas: cost and visibility. Analytics (47%), an arena we see Best-in-Class organizations heavily relying upon, play a major role in the modern organization's expense management program. Coupled with inadequate global supplier visibility (25%), the typical enterprise seeks to not only improve the processes relevant to the management of T&E expenses, but also to enhance analytical capabilities and visibility to effectively forecast, plan and budget for a category that comprises a significant chunk of corporate finances.

The Maturity Class Framework Aberdeen used the following three key performance metrics to distinguish the Best-in-Class from Industry Average and Laggard organizations: compliance to corporate policies concerning T&E, business travel spend under management, and the cost to process a single expense report (including costs for processes regarding accounting, auditing, report / review / approval time, etc.).

n=140

“T&E expense management is a high priority function, particularly since when we manage it efficiently it allows us to bill expenses out to our clients. There is a very high focus on audit and compliance.”

~ Corporate Manager, Large North American Enterprise



Table 1: Top Performers Earn Best-in-Class Status

Definition of Maturity Class Mean Class Performance

Best-in-Class: Top 20%

of aggregate performance scorers

90% compliance to corporate policies concerning T&E 85% business travel spend under management $7.91 cost to process a single expense report

Industry Average: Middle 50% of aggregate

performance scorers


Laggard: Bottom 30% of aggregate

performance scorers



Best-in-Class organizations in the T&E Expense Management research study are noted for their superior performance across three major metrics and their advantages over all other companies. These top-performing organizations have driven 60% lower expense-processing costs, experienced a 43% higher rate of business travel spend under management, and achieved a 31% higher rate of corporate policy compliance.

The Best-in-Class PACE Model Effective management of expenses related to T&E requires a combination of strategic actions, organizational capabilities, and enabling technologies that can be summarized as shown in Table 2.

Table 2: The Best-in-Class PACE Framework

Pressures Actions Capabilities Enablers Improve processes

related to the management of T&E expense

Automate key components of T&E expense management Leverage analytics

and reporting to improve expense spend intelligence

Real-time visibility into expense spending against corporate budgets Alignment between

expense management and overall corporate goals / objectives Regular reporting on

travel policy compliance

End-to-end expense management solution Corporate card / expense management

integration Automated analytics / reporting / BI Mobile travel and expense management

application / portal Automated expense reimbursement Expense management module as part of a

larger financial suite


Definition: Business Travel Spend Under Management

√ Business travel spend under management is defined as the percentage of planned travel spend that is actively managed and accounted for in corporate budgeting / planning / forecasting



The Pillars of Best-in-Class Expense Management Modern expense management has evolved from its back-office roots into a multi-faceted program that involves a strategic blend of next-generation solutions and approaches. Best-in-Class enterprises have driven a top-tier level of performance across a series of key metrics related to T&E expense management; it is within this maturity class of organizations that we look to the "pillars" of expense management in 2012 (Figure 3).

Figure 3: The Pillars of Best-in-Class Expense Management


When looking at the advantages achieved by Best-in-Class organizations, it is clear that their achievements are driven by three major attributes within their T&E expense management program: integration (78%), analytics (57%) and mobile (42%). Top-performing organizations have relied upon these pillars to support, enhance and streamline major expense management processes and drive tremendous value:

• Through integration between corporate card programs and expense management systems, Best-in-Class organizations have created a holistic process for the cycle of an expense report, from expense creation to reimbursement.

• Analytics present top-performing organizations with the necessary intelligence for linkage to corporate forecasting and planning, a factor which contributes to enhanced visibility into all travel spending and the utilization of that intelligence in corporate-wide budgeting.

• Mobile travel and expense management applications (and mobile-optimized web portals) offer business travelers the power of

n=140

“[T&E expense management] is a significant activity. It is very difficult to plan so prompt visibility of actual spending is crucial.”

~ Director, Small Asia / Pacific Organization



expense management technology while on the road or away from the 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 next chapter. We will also learn the specific components of the Best-in-Class expense management program and highlight the necessary capabilities for driving value out of business travel and improving overall performance of T&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).



Chapter Two: Benchmarking Requirements for Success

The next-generation T&E expense management program is comprised of a multi-faceted framework of nuanced approaches, strategies and solutions, all designed to streamline major processes, improve key visibility, increase T&E spend intelligence, and assist executives with achieving overall corporate and organizational goals and objectives. In this chapter, we will detail the advancements blazed by Best-in-Class corporations and highlight their reliance on core capabilities and technology solutions.

Case Study — Leveraging Next-Generation Solutions

As detailed in the T&E Expense Management research study, Best-in-Class organizations are leveraging a slew of next-generation strategies, approaches and solutions to streamline major processes and drive tremendous value. For the director of finance for a small, North 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 company’s 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 Assessment Aberdeen Group analyzed the aggregated metrics of surveyed companies to determine whether their performance ranked as Best-in-Class, Industry Average, or Laggard. In addition to having common performance levels, each class also shared characteristics in five key categories: (1) process (the approaches they take to execute daily expense management operations); (2) organization (corporate focus and collaboration among stakeholders); (3) knowledge management (contextualizing expense data and exposing it to key stakeholders); (4) technology (the selection of the appropriate tools and the effective deployment of those tools); and (5) performance management (the ability of the organization to measure its expense management results to improve its business). These characteristics

Fast Facts

√ Best-in-Class companies are 64% more likely than all others to align expense management processes and programs and the achievement of greater corporate objectives

√ The average business traveler saves three hours per month of productivity by leveraging a mobile travel and expense management application / portal



(identified in Table 3) serve as a guideline for best practices, and correlate directly with Best-in-Class performance across the key metrics.

Table 3: The Competitive Framework

Best-in-Class Average Laggards

Process

Formal business travel group (standardized processes for management of business travel)

75% 62% 45%

Documented processes for submission of expense reports

96% 83% 72%

Organization Alignment between expense management and overall corporate goals / objectives

69% 34% 15%

Knowledge

Real-time visibility into travel spending against budget

63% 36% 27%

Real-time reviews of pre-trip travel against budget

60% 31% 21%

Technology

Expense management technology solutions / tools in place:

82% end-to-end expense management solution 80% automated

data analytics / reporting / BI 78% commercial

card / expense management integration 67% automated

billable time-and-travel management 41% mobile

travel / expense management application











Performance

Expense management performance-tracking capabilities:

81% regular reporting on policy compliance 75% regular

audits of expense reports








Expense Management Capabilities The Competitive Framework detailed in Table 3 serves as a comprehensive guide to the Best-in-Class T&E expense management program. The capabilities of these top-performing organizations span a scope of competencies related to processes, organization / collaboration, knowledge and spend management, and performance-tracking attributes.

Process: Standardized / Documented Processes Standardization and formalization are not new capabilities in the expense management world, however, these simplified proficiencies should be considered basic cornerstones for any organization's expense management program. Having a formal internal travel group, or standardized processes for management of all business travel, ensures that business travelers follow a set of guidelines for planning corporate travel and adhere to those same policies while on the road. Best-in-Class organizations are 29% more likely than all others to have this capability as part of their program, which is a likely contributor to their high level of corporate travel policy compliance.

On a similar note, documented processes for submission of expense reports, a capability in place in 19% more top-performing companies than all others, reinforces approval workflow trees and points travelers in the proper direction in regards to which executive is responsible for approving their expenses.

Organization: Alignment between Expense Management and the Greater Enterprise One often overlooked yet critical component of next-generation expense management is the alignment between expense management processes and programs and the achievement of greater corporate objectives. This capability, in place in 64% more Best-in-Class organizations than all others, supports the notion of expense management as a truly strategic internal function and links the efficiencies of effective expense management with corporate financial goals, as helping to curb non-compliant travel and drive down expense-processing costs can significantly improve the bottom-line.

Knowledge Management: The Real-Time Factor The next-generation expense management program built by Best-in-Class organizations relies upon the knowledge, visibility and intelligence into several key aspects of business travel, such as spending, suppliers, and the ramifications of travel on the overall company. Best-in-Class companies are 50% and 57% more likely, respectively, to have real-time visibility into travel spending against corporate budgets and real-time visibility into pre-trip travel against corporate budgets. These real-time factors help top-performing organizations enact executive decisions in regards to travel when forecasting, planning and budgeting. When experiencing a revenue shortfall or other negative financial situations, Best-in-Class organizations can easily view, in real-time, current and planned business travel and alter itineraries or outright cancel trips.

“Our expense management solution has provided better controls and is easy to use for travelers. The electronic approval workflow is less time-consuming and has driven cost savings.”

~ Finance Manager, Large Health Services Company

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Performance Management: Compliance and Auditing A significant component of the Best-in-Class expense management program is regular monitoring of compliance to corporate travel policies and guidelines. This capability, in place in 54% more Best-in-Class organizations than all others, involves regular reporting on policy compliance to ensure that business travelers are planning and executing trips that adhere to pre-negotiated agreements with suppliers and conform to organizational rules regarding airfare, ground travel and meals.

Similarly, regular auditing (a capability in place in 29% more Best-in-Class organizations than all others) of expenses can help pinpoint instances of employee expense fraud or, like the capability in the previous paragraph, identify those expenses that have exceed the limits set forth by enterprise guidelines and policies.

Best-in-Class Technology Utilization Any next-generation T&E expense management program is contingent on the reliance on core technology solutions and automation of key expense management process. As detailed in Figure 4, Best-in-Class organizations are making use of technology to support their programs and drive ultimate value.

Figure 4: Best-in-Class Technology Utilization


The technology solutions listed in Figure 4 are critical components of the next-generation expense management program. Best-in-Class companies consider these solutions to be cornerstones in the improvement of key expense management processes. In fact, utilization of these core, automated enhancers has driven a superior level of performance in all organizations currently 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

n=140

“Expense management technology has lowered the costs of processing expenses and standardized the business value of T&E.”

~ Procurement Director, Public Sector



automate all facets of modern expense management, including travel-booking, expense submission, creation and approval workflow, reimbursement and support back-end analytics. End-to-end solutions are hosted via the cloud, secured on-premise, or leveraged as a hybrid mix. (Please read the Aberdeen Insight at the end of this chapter for additional information on how the cloud fits into the future of expense management). Aberdeen research has found that users of end-to-end solutions have experienced 55% lower expense-processing costs and 37% higher rate of corporate travel policy compliance than organizations not currently utilizing this technology.

• The benefits of mobile solutions have been detailed in previous Aberdeen research, however, it can be said that putting the power of greater expense management technology directly into the hands of both executives (approve expenses, view current trips for employees, gain access to spend information, etc.) and business travelers (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 others to have this "pillar" of expense management as a core component of their programs. Aberdeen research has found that the average user of mobile technology saves over three hours per month of productivity by directly leveraging a mobile expense management application / portal.

Analytics: A Next-Generation Enabler Business travel, along with other complex spend arenas (such as contingent workforce management, strategic meetings management, printed materials / services management, etc.), has evolved in recent years to become a crucial component of overall strategic corporate planning. With nearly 70% of organizations viewing T&E expense management as a moderately-to-highly strategic function, it becomes necessary to gain the necessary information and intelligence to accurately link the spending and ramifications of corporate travel with the goals and objectives of the greater organization.

Best-in-Class companies are 53% more likely than all others to include automated analytics, reporting and Business Intelligence (BI) capabilities as part of their expense management program. The following analytical attributes have enhanced the modern T&E expense management program and helped Best-in-Class organizations drive an unheralded level of visibility into expense spending and overall T&E intelligence:

• Top-performing organizations are 76% more likely than all other companies to link the information / intelligence generated via analytics to executive-office planning and budgeting. With revenue plans scrutinized and every spent dollar playing a major role within organizational programs, it is critical for organizations to feed the executive office with intelligence regarding the value of business travel and how executives can forecast on an enterprise-wide basis utilizing knowledge from analytics, reporting and BI.

“The cloud has enabled us to easily implement one solution globally across all locations.”

~ Finance Manager, Large Pharmaceutical Manufacturer



• Best-in-Class companies are 60% more likely than all others to track and monitor the ROI of business travel via analytics. This factor helps these top-performing organizations measure the true value of any business trip and can assist in determining whether future travel is necessary for business development.

• Best-in-Class organizations are nearly 30% more likely to utilize analytics to identify savings opportunities within T&E spend information. By understanding the volume of spending with key suppliers, this information can be leveraged by the procurement and sourcing units to negotiate discounts with airlines, hotels and other travel providers.

Aberdeen Insights — Technology: Expense Management Roadmap

As evidenced throughout this research study, technology plays a pivotal role in the modern T&E expense management program. However, when looking at how next-generation capabilities will affect the landscape of solutions within the expense management space, Aberdeen research has discovered that "the cloud" is targeted as a long-term solution within the average organization's expense management technology roadmap (Figure 5).

Figure 5: Expense Management Technology Roadmap


In looking at the future of expense management technology, the vast majority (73%) of organizations are expected to leverage either a cloud-based / SaaS or hybrid mix (cloud and on-premise) solution. This directly reflects the "next-generation" aspect of T&E expense management over the next decade. Organizations will look to the cloud for simple accessibility for all executives and business travelers, as well as the real-time components of analytics and reporting.

n=140



Chapter Three: Required Actions

The next-generation T&E expense management program is built on a framework of attributes that address process, collaborative, visibility and intelligence initiatives. The following recommendations for actions can help organizations on the lower spectrum of the Maturity Class Framework reach a Best-in-Class level of expense management efficiency.

Laggard Steps to Success • Develop visibility into aggregate T&E spending across the

entire organization. Visibility is a core competency in the greater scope of expense management; in fact, Industry Average organizations are 40% more likely than Laggards to have this type of visibility into enterprise-wide spending on business travel. In order for Laggard organizations to implement programmatic strategies, they must first ensure that they know the level of spending on travel across all business units.

• Formalize and standardize major processes related to T&E expense management. Similar to the previous recommendation, it is crucial for Laggard enterprises to first master basic competencies before embarking into complex programs. Industry Average organizations are 31% more likely than Laggards to have formalized travel management processes (including a formal travel management group), which contributes to an understanding on spending on this area and how it effects the entire organization.

Industry Average Steps to Success • Develop real-time visibility into significant aspects of T&E

expense management, such as spending against budget and pre-trip travel information. Best-in-Class organizations are nearly 60% more likely than Industry Average organizations to hold real-time visibility into travel spending against corporate budgets; this is a critical factor in truly understanding the ramifications of the T&E category and ensuring that planned travel can be altered or canceled if the organization faces unforeseen financial shortfalls.

• Leverage reliable and next-generation technology solutions to enhance management of T&E expenses. Best-in-Class companies are 56% and 27% more likely than Industry Average organizations, respectively, to utilize end-to-end expense management solutions and mobile travel and expense applications / mobile-optimized web portals. These two specific technological attributes automate and streamline key expense management processes, and in the case of mobile solutions, help both business travelers and corporate executives tap into the power of end-to-end technology while on the road or away from the office.

Fast Facts

√ Industry Average companies are 40% more likely than Laggards to have visibility into aggregate T&E spending

√ Best-in-Class companies are 56% and 27% more likely than Industry Average organizations, respectively, to utilize end-to-end expense management solutions and mobile travel and expense applications / mobile-optimized web portals

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Best-in-Class Steps to Success • Continue to reap the benefits of corporate card and

expense management integration. Although 72% of Best-in-Class organizations are currently leveraging this union to drive a truly holistic expense management process, it is critical for Best-in-Class companies to fully-maximize the value of integration. An already-superior level of spend intelligence can be improved, and procurement and sourcing teams will benefit from increased visibility into the global supplier base.

• Utilize enhanced capabilities of mobile applications / portals to improve collaboration between regional units and corporate locations. Only 41% of Best-in-Class organizations are currently leveraging this nuanced mobile capability, which can inform business travelers where and when their peers are on the road. This information can spark collaborative development between units / divisions that do not often have the opportunity to strategize in a formal, in-person setting.

Aberdeen Insights — Summary

Last year's 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 Aberdeen's 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.

“[Our cloud-based expense management solution] has drastically changed our processes for the better. It is less costly and control and reporting aspects are superior.”

~ Corporate Executive, Small Wholesale / Distribution

Organization




Appendix A: Research Methodology

Between January and February 2012, Aberdeen examined the use, the experiences, and the intentions of 140 enterprises.

Aberdeen supplemented this online survey effort with telephone interviews with select survey respondents, gathering additional information on T&E expense management strategies, experiences, and results.

Responding enterprises included the following:

• Job title: The research sample included respondents with the following job titles: manager / general manager (37%); director (22%); C-level (16%); SVP / VP (11%); and others.

• Department / function: The research sample included respondents from the following departments or functions: procurement, supply chain, or logistics (23%); finance (15%); business development / sales (13%); corporate management (12%); human resources (5%); operations (5%); marketing (3%); and others.

• Industry: The research sample included respondents from the following industries: manufacturing (21%); software (11%); financial services (10%); public sector (8%); transportation / logistics (5%); retail (5%); and 25 others.

• Geography: The majority of respondents (66%) were from North America. Remaining respondents were from the EMEA (19%), Asia-Pacific (10%) and South / Central America (5%) regions.

• Company size: Forty-seven percent (47%) of respondents were from large enterprises (annual revenues above US $1 billion); 27% were from midsize enterprises (annual revenues between $50 million and $1 billion); and 26% of respondents were from small businesses (annual revenues of $50 million or less).

• Headcount: Sixty-two percent (62%) of respondents were from large enterprises (headcount greater than 1,000 employees); 19% were from midsize enterprises (headcount between 100 and 999 employees); and 19% of respondents were from small businesses (headcount between 1 and 99 employees).

Study Focus

Responding executives completed an online survey that included questions designed to determine the following:

√ The degree to which T&E expense management is deployed in their retail operations and the financial implications of the technology

√ The structure and effectiveness of existing T&E expense management implementations

√ Current and planned use of T&E expense management to aid operational and promotional activities

√ The benefits, if any, that have been derived from T&E expense management initiatives

The study aimed to identify emerging best practices for expense management, and to provide a framework by which readers could assess their own management capabilities.



Table 4: The PACE Framework Key

Overview 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 organization’s 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 organization’s 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 2012

Table 5: The Competitive Framework Key

Overview

The Aberdeen Competitive Framework defines enterprises as falling into one of the following three levels of practices and performance: Best-in-Class (20%) — Practices that are the best currently being employed and are significantly superior to the Industry Average, and result in the top industry performance. Industry Average (50%) — Practices that represent the average or norm, and result in average industry performance. Laggards (30%) — Practices that are significantly behind the average of the industry, and result in below average performance.

In the following categories: Process — What is the scope of process standardization? What is the efficiency and effectiveness of this process? Organization — How is your company currently organized to manage and optimize this particular process? Knowledge — What visibility do you have into key data and intelligence required to manage this process? Technology — What level of automation have you used to support this process? How is this automation integrated and aligned? Performance — What do you measure? How frequently? What’s your actual performance?


Table 6: The Relationship Between PACE and the Competitive Framework

PACE and the Competitive Framework – How They Interact Aberdeen research indicates that companies that identify the most influential pressures and take the most transformational and effective actions are most likely to achieve superior performance. The level of competitive performance that a company achieves is strongly determined by the PACE choices that they make and how well they execute those decisions.




Appendix B: Related Aberdeen Research

Related Aberdeen research that forms a companion or reference to this report 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 2009

Information on these and any other Aberdeen publications can be found at www.aberdeen.com.

Author: Christopher J. Dwyer, Senior Research Analyst, Global Supply Management ([email protected])

For more than two decades, Aberdeen's 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 provide organizations with the facts that matter — the facts that enable companies to get ahead and drive results. That's why our research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500.

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Featured Underwriters This research report was made possible, in part, with the financial support of our underwriters. These individuals and organizations share Aberdeen’s vision of bringing fact based research to corporations worldwide at little or no cost. Underwriters have no editorial or research rights, and the facts and analysis of this report remain an exclusive production and product of Aberdeen Group. Solution providers recognized as underwriters were solicited after the fact and had no substantive influence on the direction of this report. Their sponsorship has made it possible for Aberdeen Group to make these findings available to readers at no charge.

Concur is a leading provider of integrated travel and expense management solutions. Concur’s easy-to-use Web-based and mobile solutions help companies and their employees control costs and save time. Concur’s systems adapt to individual employee preferences and scale to meet the needs of companies from small to large. With Concur’s mobile application, you can create, review and approve expense reports and book and change your travel itinerary – hotels, airfare, taxis, rail and rental cars – all from your smartphone. Learn more at www.concur.com.

For additional information on Concur:

Concur

18400 NE Union Hill Road

Redmond, WA 98052

Telephone: 877.4.CONCUR

www.concur.com

[email protected]

http://www.concur.com/

http://www.concur.com/




Founded in 1999, Apptricity Corporation provides Supply Chain Management and Dynamic Spend Management solutions. Customers benefit from reduced operational costs due to improvements in efficiencies and compliance. Apptricity also offers multiple deployment alternatives to address 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 Corporation

5605 N. MacArthur BLVD., #90

Irving, TX 75038

Telephone 1: 314.596.0601

Telephone 2: 800.693.2193

www.apptricity.com

www.apptricity.com/contact

http://www.apptricity.com/

http://www.apptricity.com/contact



Nexonia's expense report solution is implemented quickly in hours or days, and we’re unmatched in our responsiveness to unique business needs. Our user interface is intuitive and fast. Included is unlimited customer support and 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 customer service. Personalized demos can be requested at www.nexonia.com.

For additional information on Nexonia:

Nexonia, Inc.

161 Bay Street, 27th Floor

Toronto, Ontario, Canada M5J 2SI

Telephone 1 (Toll-free): 800.291.4829

Telephone 2 (Direct): 416.480.0688

www.nexonia.com

[email protected]

http://www.nexonia.com/

http://www.nexonia.com/




INTERPLX Expense Management is “The New Standard” in expense management. As one of North America’s leading expense management companies, INTERPLX has provided complete outsourced solutions since 1994. INTERPLX’s 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 Management

Eight successive SAS 70/SSAE-16 Type II audits prove we are uniquely qualified to meet the most demanding requirements. And your users will love the simplicity and speed. Fast, easy and THE lowest cost in North America. Join the growing list of delighted INTERPLX Global 2000 clients. For additional information on INTERPLX:

INTERPLX Expense Management

PO BOX 800- Shakopee, MN 55379

Telephone: 952-857-5568

www.interplx.com

www.interplx.com/contact/email-us/

http://www.interplx.com/

http://www.interplx.com/contact/email-us/



Spendvision is a leading innovator of transaction management solutions. Through just one technology platform Spendvision delivers more effective purchasing that increases business profitability, improves decision making and delivers greater control and compliance. All this across the broadest range of transactions from simple cash, card, online travel bookings and telecoms right through to interactive coding, requisitions and dynamically funded accounts.

Spendvision is headquartered in the UK with offices in the US, Australia, New Zealand and Japan and works with leading customers and partners around the world. The Spendvision solution is available direct to businesses and is used by the likes of Rio Tinto, Essex County Council and De Beers. It’s also available through partners including Visa, NAB and HRG who provide the solution to their customers in their own brand.

For additional information on Spendvision:

Spendvision

Strand Bridge House

138-142 Strand, London WC2R 1HH, UK

Telephone: +44 (020) 3077 4650

www.spendvision.com

[email protected]

http://www.spendvision.com/


T&E Expense Management The Best In Class Pillars Of Next Generation Expense Management

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