Business Value of Electronic Invoicing

Abstract

This thesis discusses how the business value of an invoice system could increase with the use of IT. The issue is analyzed in purpose to determine what business value an electronic invoice system can contribute to from a sender’s perspective and to create a decision base for a recommendation on the eventual usage of electronic invoicing at Volvo Penta.

We have performed an inductive exploratory research in order to perform a productive decision analysis. Desk research and in-depth qualitative interviewing were performed during the case study in order to obtain a full overview of the problem area and the present situation.

The most obvious business value that comes from an implementation of electronic invoicing is gain in time and cost. Businesses that use electronic invoicing benefit from decreased invoice handling costs, reduced number of days outstanding for receivables and payables data and faster dispute resolution. Depending on value can be achieved. The greatest business value is achieved when the electronic invoicing is connected to payment. The most attractive and value adding solution for Volvo Penta is EDI and Web EDI.