By Sangmesh Hiremath, CEO, Marmin Technologies
By 2028, many countries will have implemented e-invoicing in some form, aiming to reduce transaction costs through automation. Malaysia is actively progressing towards this goal, with the Government implementing e-invoicing in stages as part of its effort to support the growth of the digital economy. This initiative is aligned with the Twelfth Malaysia Plan, which prioritises strengthening digital services infrastructure and digitalising tax administration processes.
At its core, e-invoicing enables near real-time validation and storage of transactions, promoting transparency and efficiency in Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G) transactions. As Malaysia moves into the second phase of implementation, businesses are beginning to evaluate how best to adapt.
Critical Question Faced By Large Enterprises and GLCs
The critical question many CEOs of large enterprises or Government-Linked Companies (GLCs) face is whether to build an in-house e-invoicing system or adopt an external platform. These businesses have choices to make, with each path requiring careful consideration of strategy, challenges, and benefits.
In my interview for our CEO Conversations series, I shared insights into the key considerations that fellow business leaders frequently ask me. While there are many aspects to e-invoicing, we’ll focus on the most critical areas: alignment with a company’s core business goals, the constant evolution of regulatory requirements, robust security standards, and more. This article captures the highlights of my discussion to help CEOs of large enterprises and GLCs make informed decisions for better business outcomes.
Timestamp
00:26 E-Invoicing initiatives around the globe
03:45 E-Invoicing strategic considerations to build or buy
05:26 E-Invoicing factors for CEOs to consider
06:38 Does Marmin’s E-Invoicing solution fulfils CEOs parameters?
08:05 E-Invoicing compliance challenges when developing in-house
10:08 How does Marmin manage compliance with their E-Invoicing solution
11:15 CEO’s approach to security when considering buy or build
15:08 Confusion about PEPPOL’s E-Invoicing standards
18:26 E-Invoicing build vs buy cost implication
22:09 E-Invoicing integration to current systems
26:23 Integration challenges when building your own E-Invoicing solution
29:03 Pros and cons of building your own E-Invoicing solution
30:18 Benefits of their party e-invoicing solutions like Marmin
Aligning with Core Business Goals
The number one consideration that I share with CEOs is this: When deciding between building or buying, it’s essential to evaluate your short-term goals and long-term strategies. Do your people, processes, and technology align with your organisation’s objectives? If the answer is yes, building in-house might make sense.
However, the primary focus of any organisation should remain on its core business. If building an in-house system possess any risk of disruption, then adopting an external solution could be the smarter choice.
For in-house development, your company will need:
- Access to the right talent and deep process knowledge.
- A strong grasp of compliance requirements.
- The ability to create scalable, secure technology.
Bear in mind that building in-house isn’t simply a cost-saving exercise; it’s about achieving control over the product. For many, however, peace of mind outweighs control, and external platforms like Marmin Technologies are designed to provide just that. With our expertise in taxation, global e-invoicing frameworks, and scalable, secure systems, we offer a trusted partnership that lets businesses focus on their core operations.
Navigating Regulatory and Compliance Challenges
The next critical consideration is compliance with regulatory changes. Regulations are dynamic and often require rapid adaptation. While regulations in draft form allow for planning, compliance becomes urgent once they are published. This presents a significant challenge for in-house solutions, which must be continuously updated to meet evolving standards.
Non-compliance risks include hefty penalties and reputational damage, which can threaten an organisation’s longevity. External platforms like Marmin remove this burden by dedicating teams to monitor regulatory changes, implement updates, and ensure compliance at scale.
For businesses that choose to build in-house, staying compliant will demand substantial resources, time, and expertise.
Prioritising Cybersecurity
A critical consideration that’s elevated in today’s digital era is cybersecurity, transitioning from an IT function to a strategic priority. Many companies require cybersecurity leaders to report directly to the CEO, reflecting the importance of safeguarding sensitive data. As e-invoicing generates sensitive trade and financial data, it is crucial that any solution–whether in-house built or purchased–must have robust security measures.
For in-house solutions, this means investing in:
- Security frameworks like ISO 27001 or SOC 2.
- Scalable, secure infrastructure.
- Continuous updates to safeguard critical data.
Alternatively, CEOs can consider external platforms like Marmin which provide advanced security measures, including encryption, regular audits, and compliance with SOC 2 and GDPR. This not only protects your data but also ensures peace of mind.
Understanding PEPPOL Standards
An important factor that CEOs ask me about relates to technology protocols. PEPPOL, an international interoperability framework, enables secure and standardised exchange of electronic documents over the internet, including across borders. What this means is that businesses can exchange documents seamlessly and securely over a trusted protocol. With this in mind, it will not be difficult to envision a future where a debit entry in one business automatically triggers a corresponding credit entry in another, streamlining transactions and bookkeeping.
As the world becomes increasingly connected through the internet, bookkeeping solutions are likely to integrate over frameworks similar to PEPPOL, revolutionising how businesses manage their financial operations. Adopting PEPPOLtoday is a strategic step towards frictionless business of future.
Weighing Cost Considerations
With all the above considerations, let’s look at the costs involved. Building an in-house solution entails significant capital expenditure (CapEx) for software development, infrastructure, and security, followed by ongoing operational expenses (OpEx) for updates and compliance management. These costs can escalate unpredictably as regulations evolve.
In contrast, external platforms like Marmin shift costs to predictable OpEx through subscription models, covering updates, compliance, and support. This approach enhances financial clarity and scalability while reducing the burden of managing constant regulatory changes.
Integration with Existing Systems
Finally, as almost all the large enterprises and GLCs that I know have their existing technology solutions, CEOs are concerned about how their teams can achieve seamless integration with existing enterprise resource planning (ERP) or point of sale (POS) systems.
My advice to CEOs is that if your ERP or POS software allows for customisation, then yes, build on it. However, if your ERP or POS software does not allow for customisation or that the risks of disruption are too great to move on customisation, then it is best to build a middleware to process data from ERP source.
Again, with building any technology system, there are specific skills needed which I had already discussed earlier in this article. Seamless integration with existing ERP will also depend on having the following:
- Proper master data.
- Clarity of business processes and events leading to an e-invoice.
- Understanding of taxation and e-invoice validations.
Allow me to share an experience from past e-invoice implementations. There were organisations which lacked clean and consistent master data, such as failing to code customer addresses using ISO country codes, an item crucial for seamless IRBM integration. We have also dealt with clients who faced inefficiencies due to complex internal invoicing processes, requiring significant process re-engineering.
Adding to these considerations is the time limitations. CEOs need to consider that their in-house teams will not have the luxury of time for IT departments and various lines of businesses to discuss, develop, build and repeatedly test their systems.
With all these complexities and considerations, it is no surprise that CEOs are considering external solution providers of e-invoice platforms like Marmin to simplify the process with pre-built integrations, APIs, and bulk upload options, ensuring compatibility with diverse operational landscapes.
Recap: Build vs. Buy
Overall, let me sum up my discussion so far. When deciding between building or buying, consider these key points:
- Building In-House: This offers companies control and customisation but demands significant resources, expertise, and ongoing investment. It is best suited for organisations with unique operational requirements and the ability to manage compliance and cybersecurity.
- Buying an External Solution: This provides faster deployment, predictable costs, built-in compliance, and scalability. Ideal for businesses prioritising efficiency and peace of mind.
From my experience, businesses benefiting most from external platforms like Marmin fall into three categories:
- Those requiring e-invoicing at scale to avoid business disruptions.
- Companies needing rapid implementation within tight timelines.
- Global organisations unfamiliar with local regulatory requirements.
In this digital age, every business is a technology business. As such, e-invoicing is not just about compliance—it’s a step toward greater efficiency, transparency, and success. Whether you build or buy, intelligent automation must accelerate decision-making and free your organisation to focus on strategic growth. After all, as CEOs, we must lead our companies toward better business outcomes.
Let’s talk more one-on-one if you want to discuss ways to achieve better business outcomes with e-invoicing.
About the speaker
As the co-founder and CEO of Marmin Technologies, Sangmesh Hiremath brings nearly 20 years of expertise in e-business consulting, supply chain management, and corporate innovation. He is the visionary leader behind Marmin’s mission to simplify e-invoicing and drive digital transformation for businesses. Known for his strategic foresight, Sangmesh helps C-suite executives navigate regulatory compliance, streamline processes, and embrace cutting-edge technology. His leadership and commitment to making businesses more efficient, transparent, and compliant make him a trusted advisor to executives aiming for sustainable growth.
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Marmin's e-invoicing checklist helps businesses assess their current and future readiness for e-invoicing, evaluating people, processes and technology for seamless compliance and efficiency.
About Marmin
Marmin Technologies, a leader in e-invoicing and compliance solutions, is now operating in Malaysia as Marmin Technologies Sdn. Bhd. After achieving success in the Middle East, particularly Saudi Arabia, Marmin brings its government-compliant e-invoicing systems to support Malaysia's digital transformation. Trusted by global brands like Lenovo, Hitachi Veritas, Palo Alto Networks and Ethiopian Airlines, Marmin delivers reliable, secure solutions while building long-term relationships with local businesses, enhancing regulatory compliance and operational efficiency.
Want to know more about Marmin's e-Invoicing, reach out to us at my.support@marmin.ai