Transcript Equens - Lisbon

Electronic Invoicing – 238 billion reasons – to
begin with..
i2010 Conference
Information Society at the Crossroads
13-14 MAY 2008,
Bo Harald
Copyright © 2008 TietoEnator Corporation
e-invoicing – massive cost savings - but also:
1.Better productivity in EU – cost savings, risk
mitigation AND step to next document layers
Better customer service – new value in many
dimensions
Better jobs – less routine – more interesting
and better paid
Better environment – less travel, less
transport, less material – 15 m trees/year
Learning for next steps
2.
3.
4.
5.
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Is there a better case? If not – full focus on it!
.
.
.
.
.
.
Finnish State Treasury: cost estimate for incoming manual invoice € 30€, einvoice 10€, fully automated 1€….
Finnair: 40€/incoming manual invoice
Electrolux: 50€/incoming manual invoice
Finnish Employers Federation:
annual saving from b2b e-invoicing at 2,8bn€ (b2c 400m€)
European Association for Corporate Treasurers: b2b 243bn€
. EU commission: b2b 238bn€
This is processing only - more from lower credit risk, faster cash flow, lower fraud,
lower IT-cost etc
This is e-invoicing only – other documents in procurement process add more..
This is b2b only – 10s of billions from b2c..
Additional dimension: staff moving to productive work…
Opportunity to grant cheaper financing to SMEs – buyers also benefiting
2006-03-23
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Page 3
E-invoicing Expert Group
Benefits for EU
STEP 1. Productivity improvements from
Faster digitalization in harmonized and wider common market
Direct cost savings (B2B 238bn + B2C 40bn?)
Indirect improvements (financing, cash flow, fraud elimination, lower
risk levels…
.
.
.
STEP 2. Step to further layers towards real time economy
Procurement processes
Automated accounting etc
The Commission is working hard to make EU more competitive – not
always an easy task.
We are committed to support for our part - by making concrete
progress.
.
.
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The energy and raw material needed for
producing paper for, printing,
enveloping, distributing and recycling 20
billion invoices per year is a pure waste.
E-invoicing yearly saving potential:
… 400 000 tons of paper,
… 2700 tons of ink,
… 160 million liters fuel,
… 1432 GWH energy and
… 15 million trees.
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Photo by Sachyn
E-invoicing Expert Group
Message from the EU Commission at 1st meeting:
. Need to support the Single Market for the 21st century
. Advent of SEPA is a driver
. Development of systems and standards on a European basis
. Bring in all the stakeholders and liaise with sector and national
.
.
.
.
.
communities
Deliver something concrete and operational
European interoperable standards can go global
Address issues such as legal validity, security, authenticity and
integrity
Perspective of user friendliness is important
Create a world class framework
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E-invoicing Expert Group
Formal tasks
1. Identify shortcomings in the regulatory framework for eInvoicing
2. Identify and validate e-Invoicing business requirements
3. Identify and validate relevant e-Invoicing data elements
and linkages (procurement, payments, value-added tax,
authentication, integrity, archiving)
4. Propose responsibilities to be assigned to standardisation
bodies and a time schedule for the development of
common standard(s)
5. Propose the European e-Invoicing Framework to establish
a common conceptual structure, including business
requirements, standards and solutions
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2012 = E-invoicing predominant and widely integrated
2008-09
2008
2010
2010
Shared
Vision Making
the
markets
Business
Case
understood
Regulatory
Network
and Rule
Book
established
Obstacles
removed
2009
ISO
Standard
ready
2010
Mandatory
Usage
widely
adopted
2009
FVC,
automated
Accounting
and Financing
addressed
Existing base
• Infra – EDI, XML, practices established for signing
• Standards – presently in use, ongoing work (UNCEFACT/CEN/SWIFT, NES,
Finvoice, TWIST, SEPA – ISO20022)
• EU/ECB decisions,
• EU TASK FORCE WORK > EII-report,
• EG mandate, EBA report,
• invoice receivers (esp public sector) declaring mandatory etc
• Rapidly rising market penetration and transaction volumes – market experience
Copyright © 2008 TietoEnator Corporation
E-invoicing Expert Group
Faster progress – how?
Make it crystal clear that paper invoices have no
future – 238 billion reasons upfront to move on –
market-by-market
Make benefits clear: for SMEs, for large enterprises, for the
public sector, for EU, for the environment – all
benefiting consumers/citizens
Invoice senders to charge for paper invoices – transparent,
just (cost saving potential also for those who prefer paper
invoices)
Invoice receivers to set deadline for mail invoices
Eliminate need for additional technology whenever
possible. Authenticity and integrity can be handled with
present tools!
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30 Billion invoices – why part of SEPA?
(Based on the Statistics in Switzerland)
Large enterprises (250- employees)
43.3 %
11.6 %
2.5 %
10 %
5%
1.3 %
8.3 %
eBanking
Very small size enterprises (1-9 employees – 95% of all)
Consumers
1.7 %
7%
0.1 %
Medium size enterprises (10-249 employees)
1.7 %
7.5 %
B2C 53 %
B2B 47 %
Conclusions
•Less than 12 % of invoices are between large enterprises
•Almost half of the invoices are from large enterprises to consumers
Source: Billentis / Bruno Koch (www.billentis.com), Nov 15th 2006
2007-09-24
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Finnacial Service Hub
Buyer
Buyer’s Bank
Orders
posted to
Seller’s
accounts
and back
to own
Invitation to tender
Offer
Order / e-signature
Payment Guarantee
Delivery Guarantee
Delivery Information
Deviation info
Statements - tax etc
Direct debit adv
e-Invoice 200bn€
Payment Assurance
Payment
Supplier’s Bank
From e-invoicing to all messaging – same data elements…banks to
take responsibility for SME-segment!
Supplier
Invoices
posted to
Buyer’s
accounts
Account statement
Only in e-banking for
24 million small
businesses in EU
2006-03-23
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Page 11
National initiatives driving e-invoicing:
. Denmark: mandatory by law – as of 1.2.2005 only e-invoices accepted in
.
.
.
public sector (70% achieved in 2006)
Sweden: e-invoicing mandatory with public sector 1.7.2008
Italy: Finance Act: “article 5, obliges all companies to send electronic
invoices to state administration starting 1.7.2008, in order to be
paid…”
Finland: enforcing e-invoicing in public sector today – final deadline
31.12.2009. Progressive enterprises: “E-invoice or No Invoice”
.15 countries
in all have initiatives – by 2010 it is expected that
b2gov e-invoicing will be mandatory in most countries (Bruno Koch)
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Infrastructure supporting 24m EU-SMEs in the
networked economy – ”e-only-age”
Public sector
Service
e-only!
e-only!
Customer 1
e-only!
Customer 2
Supplier 1
e-only!
e-preferred!
Customer N
e-preferred!
Supplier 2
e-only!
24 m SMEs
He cannot deal with so many in different
ways – has to be same with all – just like
payments!
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Bank customer Bank corporate customer
Utility customer Corporate utility customer
My name is Guy
Same Guy
Citizen in public
sector service
Enterprise in
public sector
service
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Operator customer Operator corporate
customer
Banks & insurance
Pankin asiakas Pankin yritys-asiakas
Utilities
Sähköasiakas Sähkö yritysasiakas
Same familiar e-tools - embedded
Often used and trusted e-tools
for e-id, e-signatures, e-payments,
payments-integrated e-invoicing
Same Guy
Same familiar e-tools..
Terveyskeskusasiakas
Public
sector
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Same familiar e-tools - embedded
OperaattoriasiakasOprin yritysasiakas
Telecom
Build ladders for your customers
Top line growth opportunity is a sound
driver
Bring in next level concepts
and technology
Add partners for collaborative
offerings
Reuse tools - integrated in
corporate and public sector
services - economy of repetition
(learn once - use everywhere)
Cost savings for all
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Standardize further for end-to-end
automation
Expand further to benefit from
economy of reuse, economy of
scope and scale
Ready habit and trust - e-banking
Accenture: Building the trust Survey 2006
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It is not DEMAND that creates SUPPLY
It is the other way around
Henry Ford
18
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23 November 2005
Wisdom from ice hockey
“Do not go where the puck is >
go where it is going.”
19
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23 November 2005
Start early – let mature – implement gradually
“Any hype will do”
Early start: “Explorer”
Late (re)start: “Panicky follower”
“ICE AGE”
2006-03-23
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“ICE AGE”
Page 20
The future is not planned
nor prognosed.
It is created !
Thank You
[email protected],
http://boharald.blogspot.com
Copyright © 2008 TietoEnator Corporation