Business model of Basware

Customer Segments

Basware has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at organizations of all industries and sizes.

Value Proposition

Basware offers two primary value propositions: performance and brand/status.

The company demonstrates strong performance through tangible results. Specific positive outcomes for clients include the following:

• ADT and Tyco Fire’s Shared Service Center used Basware’s solutions to reduce invoice handling times by 75% and increase annual processing volumes from 10,000 to over 40,000 per employee
• SONIC Drive-In used Basware’s solutions to implement self-service invoice processing among 1,000 end users, reducing administrative burden and contributing to annual savings of $160,000
• Toyota used Basware’s solutions to save 60% of time spent on payments and improve the job satisfaction and performance of its accounts payable team
• Finavia ued Basware’s solutions to centralize its purchasing, e-invoicing, and automated invoice processing, enabling it to increase spend visibility, harmonize operations, and save money
• DNA used Basware’s solutions to speed up the purchase-to-pay process, improve reporting, increase productivity, and obtain greater spend control

The company has established a strong brand due to its success. It bills itself as the leader of the purchase-to-pay and e-invoicing solutions markets, and claims to operate the world's largest open commerce network. It has over 1,800 employees and oversees over 100 million transactions going through its network annually.

It serves customers in over 100 countries and territories worldwide, with prominent clients including Panasonic, Colliers International, Accor, and Penguin. Lastly, it has won many honors, including the following:

• Recognition for its product as Procurement Technology of the Year by PayStream Advisors
• Recognition as a Leader in Gartner’s 2016 Magic Quadrant for Procure-to-Pay Suites
• Recognition as Best Provider of Working Capital Management Solutions and Accounts Payable by Global Finance
• Recognition as one of the largest cross-industry supplier networks in the “Vendor Landscape: B2B Business Networks” report by Forrester Research
• Recognition as one of the 50 Providers to Know by Spend Matters

Channels

Basware’s main channel is its direct sales team. It also sells its products through a worldwide network of channel partners. The company promotes its offerings through its website, social media pages, and participation in industry events such as expos and conferences.

It also operates “The Art of Basware,“ a global art competition for artists under 30 years of age.

Customer Relationships

Basware’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company’s website features the “Basware Knowledge Center”, which includes useful resources as white papers, research reports, case studies, eBooks, fact sheets, infographics, webinar recordings, solution demos, and videos.

It also provides access to the Basware Connection email newsletter, which provides monthly insights on developments in the purchase-to-pay and e-invoicing markets. Despite this orientation, there is a personal assistance component in the form of phone, e-mail, and online support.

Key Activities

Basware’s business model entails designing and developing its products for customers.

Key Partners

Basware maintains strategic partnerships through which it works with firms that promote and sell its solutions to their customers in order to extend its reach. Partners receive training and sales/marketing resources, as well as access to a portal called Basware Partner Central. Specific partners include ADS Solutions, APEX Analytix, Flucticiel, K2 Sourcing, Nayo Technologies, and Ricoh.

Basware also maintains the Basware Network, an open network that enables suppliers, buyers, and partners to identify, connect, and collaborate with customers and other stakeholders globally. Partners receive and send purchase orders, create invoices, and exchange eCatalogs.

Key Resources

Basware’s main resources are its human resources, who include the engineering employees that design and develop its solutions, the sales employees that sell them, and the customer service personnel that provide support.

Cost Structure

Basware has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is employee benefit expenses. Other major drivers are in the areas of research/development and sales/marketing, both fixed costs.

Revenue Streams

Basware has five revenue streams:

• Subscription revenues
• Transaction services revenues
• Consulting services revenues
• Maintenance revenues
• License sales revenues