Nipendo guarantee – too good to be true or too good to ignore?
I love the way Nipendo describes itself– “the leading provider of P2P extreme platforms” – it’s like purchase to pay is a sport and Nipendo’s products are like cliff diving.
I saw this description in their press release today about the Nipendo guarantee – a guarantee of 90% straight through processing. That is a big guarantee, one that some, especially Nipendo’s more traditional competition might say is too good to be true. But I’ve had a closer look and I would say to anyone examining the market place for P2P solutions – you can’t ignore this.
So what does Nipendo actually say?
Automating the entire Purchase-to-Pay process, Nipendo enables leading global enterprises across industries to achieve over 90% automated invoice reconciliation with straight through processing to their ERP systems, touch-free and errorless. With a range of free and low-cost options that fit the needs of companies of all sizes, Nipendo removes the barriers to widespread adoption of the solution across the supplier ecosystem. Connecting to the Nipendo platform is quick and simple, with no complex customizations, data mapping, or changes to existing business processes.”
90% automatic invoice reconciliation is impressive. Almost always, the reason why AP teams get nowhere near this is their tolerance of poor data. They tolerate errors in P.O.s, errors in invoices and accept dysfunctional purchase to pay processes. Nipendo achieves these kinds of results by taking a zero tolerance approach to data quality. And it works. We published a case study on this here.
“The Second Nipendo Guarantee: leverage your existing solutions
The Nipendo Supplier Cloud platform enables customers to maximize any investments they have made in buyer-supplier connectivity solutions—be it electronic invoicing, OCR, EDI, or a supplier portal—and achieve the next level of P2P process automation and reconciliation with invoices from any of these sources processed straight through in an errorless and effortless manner. By ensuring interoperability with existing solutions, Nipendo allows companies to realize the benefits of advanced P2P automation capabilities without a forcing a wholesale replacement of existing infrastructure.”
Most large or established businesses have already made their P2P investment. For a P2P vendor like Nipendo, there’s no such thing as a greenfield site so making their solution interoperable is a wise strategy. It means that their customers can dip into their platform, try it, test it, and if they like it, grow into it.
“The Third Nipendo Guarantee: pay only for automatically reconciled invoices
Nipendo is introducing a revolutionary pay-for-performance pricing model that provides companies with the ultimate value guarantee. With this new pricing model, buyer organizations only pay for invoices that are automatically validated based on their business rules, processed straight through to their ERP without any errors, fully reconciled and ready for payment—all without any manual effort.”
This is perhaps the icing on the cake of the Nipendo guarantee. A pay for results model is a guaranteed business case. Nipendo is putting its money where its mouth is. It’s not a new idea but it is an incremental improvement on the simple SaaS model. SaaS means you pay when you use a service. Nipendo’s spin on this goes a little further – you pay when you use it, but only when it works to improve your business.
Businesses get criticised when they offer guarantees. They’re accused of having too many caveats and too many conditions. And the loudest critics are invariably the competition. Of course Nipendo doesn’t have a magic wand but a guarantee backed by a charging structure that means customers only pay on success signals a level of confidence that is reassuring and a move in the right direction from the old on-premise style license and support charging models that offer no guarantee.
Pete Loughlin can be found on twitter @peteloughlin