Boston, MA September 20, 2001 The market for technology to manage the financial value chain will grow from $131 million in 2000 to $2.56 billion in 2005, as companies increasingly turn to Internet-based financial applications, according to a new research report from IT consultancy Aberdeen Group.
Aberdeen found that applying Internet-based financial applications to B2B trade can help enterprises shorten trade and settlement cycles, lower administrative costs, reduce working capital requirements and reduce financial risks.
"Moving B2 B financial processes onto the Internet affords enterprises, financial institutions and marketplaces of all shapes and sizes a tremendous opportunity to make their online and offline business more efficient and effective," said Andrei Arkhipov, a senior research associate at Aberdeen and author of the report.
Arkhipov explained that strengthening the financial operations of enterprises could be critical in the current economic environment. Small companies could find it difficult to raise funding, while large companies with undiversified accounts receivable could suffer extraordinarily high amounts of bad debt, the researcher said.
The report, "'Show Me the Money': How e-Business Will Transform the B-to-B Financial Processes," examined the value of financial process automation for suppliers, buyers, financial institutions and marketplaces.
Aberdeen also defined a framework for financial value-chain management (FVCM), looked at early trends in the market and forecasted market growth and segmentation.
The consultancy profiled 23 FVCM providers and evaluated their technology solutions. Profiled suppliers include: Aceva Technologies; Actrade Financial Technologies; Aucxis; BankServ; BCE Emergis; BillingZone; Bottomline Technologies; CapitalStream; Clareon Corp.; Clarus Corp.; eCredible; eCredit.com; FinancialSettlementMatrix; Global Commerce Systems; iPlanet e-commerce Solutions; Fair, Isaac and Co. (LiquidCredit); LiveCapital; onExchange; PeopleSoft; Pitney Bowes; SurePay; Tradenable; and Xign Corp.
A free abridged version of the report is available at the company's Web site or by calling (800) 577-7891.