When digital transformation spreads to invoice processing, organizations can move from managing transactions to improving business performance and enforcing compliance. Come hear industry leaders discuss how they have transformed invoice processing with support from SAP Ariba solutions as part of a larger source-to-settle/procure-to-pay program. You will learn about results they have achieved with automation and compliance, including support for e-invoice regulations that vary by country.

1. PUBLIC
June 14, 2017
Friederike Hertenstein, Head of Innovation Go-to-Market EMEA/MEE, SAP Ariba
Luis Barbosa, Senior Business Analyst, Infineon
Invoice Automation: Key Component of Digital
Transformation and Tax Compliance

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Source and contract Request and buy Invoice and pay
Indirect – non-merchandise
Travel and expenses
Labor and services
Direct – merchandise
End to end
 Enables source-to-pay integration
 Aligns procurement and finance
 Provides a one-stop shop for sellers
 Lowers IT costs Networked collaboration
 Connect to a global community of
trading partners
 Discover, connect, collaborate, and
gain insights
 Engage across a wide range of
interactions
Comprehensive
 Is not “one size fits all”
 Offers comprehensive capabilities
 Covers 100% of your spend and supply
base
Buyers Suppliers
Connect your business processes with your business partners

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Ariba Network – invoice automation at work
Buyer ERP
source system
Approved
invoices Status, visibility,
and remittance
Supplier
Global invoice portal powered by
Ariba Network
Capture any invoice, from any source
system (SAP, Oracle, PeopleSoft,
JDEdwards, …)
Minimum change management and
increased AP capacity
Deliver an invoice/payment status portal Greatly reduced supplier inquiries
Provide full visibility and rich remittance
Increased efficiency and standardized
processes

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Validating electronic invoices on the network
Invoice
ERP
GST/VAT
compliance
PO & PO line
match
Buyer match
(non-PO)
UOM & SKU
change
Currency match
Subtotal
& total
amount
PO line change
Line & total
consumption
thresholds
Shipping & tax
thresholds
Invoice
number
Bill to/
ship to
PO
number
Requestor
(non-PO)
Invoice
date
VAT/GST
IDs
Account
coding
Workflow
Compliance
Suppliers
Buyer
 98% touchless
processing

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New potential from invoice automation
# annual invoices per FTE
Low-touch invoice processingHigh-touch invoice processing
Manual
• Paper
• Fax
• Data entry
“Electronically manual”
• E-mail
• PDF
• Scanning/OCR
Electronic invoice
• Integrated invoice: EDI, B2B, XML
• Web invoice: PO-Flip feature, e-invoice
• ERS (evaluated receipt settlement)
Keys to success:
• Multiple methods for suppliers
to submit electronic invoices
• Intelligent error recognition/
front-end validation
• Preapproval on PO to reduce
invoice workflow
Invoice
Working
capitalPayment

6. Infineon Technologies
Luis Barbosa (IFSSC BA BPS)

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Infineon at a glance
Financials Market Position
Business Segments Employees
377 620 897 982
FY 13 FY 14 FY 15 FY 16
[EUR m]
Europe
15,176 employees
More than 36,000 employees worldwide
(as of Sep. 2016)
Americas
3,691 employees
Asia/Pacific
17,432 employees
34 R&D locations
19 manufacturing locations
Revenue Segment Result Margin
15.2%15.5%14.4%
9.8%
3,843
4,320
5,795
6,473
41%
11%
17%
31%
Automotive
(ATV)
Industrial Power
Control (IPC)
Chip Card &
Security (CCS)
Power
Management &
Multimarket (PMM)
Revenue FY 2016
# 2 # 1
Automotive Power Smart card ICs
# 2
Strategy Analytics,
April 2016
IHS Markit,
October 2016
IHS Markit,
July 2016
72017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.

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E-Invoicing: A journey around the world
U. S. Dresden Kulim
Warstein
Regensburg Austria Malacca
Singapore
Munich
20122013201420152016
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Key contributors for program sucess
Management Support (Top down strong
message)
Dedicated project team (Finance, TAX, IT,
Purchasing)
Standardized processes
Open to change
Roll out strategy (pilot, training)
92017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.

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Moving from country to country with a standard approach
10set date Copyright © Infineon Technologies AG 2017. All rights reserved.
› Ariba Network country compliant
› Green light from each Local Tax and
Finance department
› Purchasing validation and training
› IT setup (configuration and
maintenance)
› Identify pilot suppliers
› On site Accounting training and briefing
› Functional go live
› First supplier wave alignment

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Facing known and unknown challenges
› Multi-cultural environment
› Tax complexity
› Standardize processes
› Suppliers IT integration knowhow
› Fee model (especially in APJ)
› Internal support
112017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.

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What we achieved so far
122017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
› Almost two thirds of the actual incoming invoice
volume handled in EU
› Target to have same ratio in Singapore by Sept
2017
› Ramp up Malaysia to one third by the same
timeline
› Focus on APJ ratio increase with further
supplier waves deployed
› Proactive and continuous improvement supplier
enablement
EUROPE
62% 63%
62%
65% 64%
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Jan-17 Feb-17 Mar-17 Apr-17 May-17
No. of e-invoices No. of paper invoices e-Invoice %

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Compliance
Cost reduction
Improved Quality
› Pre-validated invoices
› Digitally signed
› Reduced invoice exceptions and error
risks
› ISAE 3000 Accounts Payable process
certification
The results
Productivity Gains
› Invoice automation
› New tasks performed
› Leaner processes
› Faster invoice cicle time
› Discount capture
132017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.

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Defined Strategy
› Powerfull Management support
› Centralized team and point of
contact
Lessons learned
Full Commitment
› Involve all partners actively
› Strive for improvement
Clear Communication
› Fully informed and trained
suppliers
› Aligned escalation path
142017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.

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Focus on next level of e-invoice experience
Increase invoice automation ratio
Roll out opportunities in other countries
(Hungary, Indonesia, etc.)
Enhance solution together with SAP Ariba
(artificial inteligence, new features)
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17. Questions?

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19. Thank you.
Contact information:
Martin Jones, SAP Ariba
martin_jones01@sap.com
Luis Barbosa, Infineon Technologies
Luis.Barbosa@infineon.com