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Pave The Way for a Broad-Scale Adoption of E-Invoicing
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Pave The Way for a Broad-Scale Adoption of E-Invoicing

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Join Europe’s leading einvoicing expert Bruno Koch of Billentis for his view on the status and trends in the einvoicing market at both a country and company level. Learn what many companies see as ...

Join Europe’s leading einvoicing expert Bruno Koch of Billentis for his view on the status and trends in the einvoicing market at both a country and company level. Learn what many companies see as the major barriers to einvoicing and how to overcome them, the value added services that increase acceptance by training partners and finally the encouraging business case to take the next step.

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Pave The Way for a Broad-Scale Adoption of E-Invoicing Pave The Way for a Broad-Scale Adoption of E-Invoicing Presentation Transcript

  • #AribaLIVE Pave the Way for a Broad-scale Adoption of E-Invoicing Bruno Koch, CEO, Billentis @kochbillentis April 10, 2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
  • “The European Commission has today proposed a draft directive on E-Invoicing in public procurement, accompanied by a communication setting out its vision for the full digitisation of the public procurement process, so-called 'end-to-end e-procurement”. European Commission, 26 June 2013 In Italy, about 11,000 Public Administrations and 2 to 2.5 million companies will be affected by the E-Invoicing obligation coming in place step by step from June 2014. Quaderno del FARE - Fatturazione Elettronica verso la PA, Politecnico di Milano, 27 May 2013 & Umberto Zanini 2 © 2014 Ariba – an SAP company. All rights reserved.
  • >40% 15-40% <15% Expected market penetration in 2014 Electronic share 2009 2010 2011 2012 2013 (E) 2014 (E) B2B/B2G/G2B 7% 10% 13% 15% 20%* 24% *) Jump due to new EU legislation considering also unsigned PDF invoices in the statistic Market Penetration (Electronic share of total invoice volume in B2B/B2G/G2B segment) 3 © 2014 Ariba – an SAP company. All rights reserved.
  • E-Invoicing Users in Europe (issue and/or receive) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1-9 10-49 >250 %ofallenterprises Number of Employees 4 © 2014 Ariba – an SAP company. All rights reserved.
  • • Electronic invoice exchange among larger companies  mass market, easy-to-use services • Domestic  International • Standards and technology  process optimization Some Trends in Europe (1) 5 © 2014 Ariba – an SAP company. All rights reserved.
  • • Developing beyond pure E-Invoicing:  Multi-message and multi-format services required  Pure E-Invoicing  support the entire O2C and P2P process  Spend analysis  Trade Finance / Supply Chain Finance  Some countries in progress to push (near) real-time-auditing instruments based on electronic invoicing and payment transactions (similarities with the Latam model) Some Trends in Europe (2) 6 © 2014 Ariba – an SAP company. All rights reserved.
  • Success Factors in E-Invoicing Projects (1) • Awareness by senior executives about the potential of E-invoicing in a broader sense • Management support • One very active project owner • Implementing it step-by-step including a quick-win result • Internal and external communication to key persons affected 7 © 2014 Ariba – an SAP company. All rights reserved.
  • Success Factors in E-Invoicing Projects (2) • Being realistic regarding mid- and long-term technical capabilities in your organisation including workflow and archiving  right decision for make/buy and direct or network model • Don’t re-invent and develop solutions which are already available 8 © 2014 Ariba – an SAP company. All rights reserved.
  • Success Factors in E-Invoicing Projects (3) • Being realistic regarding technical capability of your counterparts to send, receive and archive E-Invoices • Being a rollout champion 9 © 2014 Ariba – an SAP company. All rights reserved.
  • Success Rates Dependent on Used Method 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 %E-Invoices Year after starting the rollout process Loop E-Order + E-Invoice Powerplay Pressing Classic approach 10 © 2014 Ariba – an SAP company. All rights reserved.
  • Two Different Implementation Strategies Low High Degree of process automation PortionofE-Invoices LowHigh Status 2014 Objective 11 © 2014 Ariba – an SAP company. All rights reserved.
  • Major Barriers and How to Overcome Them (1) • Legal requirements are unknown or confusing  Involve experienced network operators supporting you with tax-compliant cross-border E-Invoicing services • Change/adoption of internal organisation processes  Ensure sufficient management attention and involve key persons in the project in an early stage 12 © 2014 Ariba – an SAP company. All rights reserved.
  • Major Barriers and How to Overcome Them (2) • Divergent requirements of trading partners regarding formats, methods and processes  Involve network operators with the capability to address all sizes of trading partners with various requirements • Trading partners do not support the electronic invoice  Contact them. Often the trading partners just need inspiration to do it now and some guidance on how to do it. Higher acceptance if value-added services are offered. 13 © 2014 Ariba – an SAP company. All rights reserved.
  • Major Barriers and How to Overcome Them (3) • Lack of budget  In-house developments cause high initial and follow-up costs. Field-tested applications and services from third parties are typically significantly cheaper. If services on demand or SaaS are preferred, the initial investments are moderate. • Lack of resources to manage automation  Shift E-Invoicing to the enterprise’s number 1 priority. 14 © 2014 Ariba – an SAP company. All rights reserved.
  • Major Barriers and How to Overcome Them (4) • Lack of understanding of current available solutions  Independent market reports are available; involve market analyst or experienced consultant 15 © 2014 Ariba – an SAP company. All rights reserved.
  • Main Drivers for Optimisation Reduce costs Optimisation of corporate finance with E-Invoicing Improve Working Capital Increase elasticity of costs 16 © 2014 Ariba – an SAP company. All rights reserved.
  • Receive 1.10€ Entering Codification 3.00€ Validat./Matching Exceptionhandling 4.00€ Dispute Management 2.50€ Archiving 2.20€ Payment&Cash Management 4.80€ Real business case of consulting customer Full- Costs 17.60€ 6.70€* Paper Electronic, automated 0 0 1.20€ 2.00€ 0.80€2.00€ Saving per Invoice 10.90€ = 62% *) considered is 0.70 € processing cost by third party service provider Process Costs for Recipient 17 © 2014 Ariba – an SAP company. All rights reserved.
  • Key Findings and Conclusions (1) • E-Invoicing is a strong and global trend. • The business case especially for larger recipients is excellent. • Your trading parties are anticipating E-Invoicing. • The market maturity meanwhile achieved an advanced level. • Appropriate solutions for any size of businesses are available. 18 © 2014 Ariba – an SAP company. All rights reserved.
  • Key Findings and Conclusions (2) • Divergent requirements of trading partners regarding formats, methods, processes, added-value services and tax compliance however still build major barriers. Even for large multinational companies is this hard to overcome without third party assistance. • For good luck, there is already a rich offering of some experienced and international service providers. 19 © 2014 Ariba – an SAP company. All rights reserved.
  • Why still thinking about it until you have to react? Better do the next step now and in a proactive manner! 20 © 2014 Ariba – an SAP company. All rights reserved.
  • About Billentis • Highly specialized consulting company: E-Invoicing, optimisation of Purchase-to-Pay and Financial Supply Chain; More than 150 customers in 50 countries: Federal administrations, large invoice issuers and recipients, solution providers • Market analyst; issuer of market reports and newsletters • Company founded in June 1999 • www.billentis.com 21 © 2014 Ariba – an SAP company. All rights reserved.