E invoicing as accelerator for cross-industry edi
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E invoicing as accelerator for cross-industry edi

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  • 1. E-Invoicing as acceleratorfor cross-industry EDIComarch EDI International ConferenceDecember 1st, 2011Bruno Koch
  • 2. Source: Blog on www.viadeo.com Puzzled?05.12.2011 page 2
  • 3. Europe: Expected shift of paper towards E-Invoices and hybrid processing/archiving Favoured formats up to today and outlook (B2B/B2G/G2B/G2C/B2C) 100% 90% 80% Paper + 70% electronic 60% copy Paper 50% 40% 30% 20% E-Invoices 10% 0% 2011 2000 2010 approx. 11% 202005/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 3
  • 4. Europe: used formats today and prediction 100% 90% Pure structured data 80% EDI, XML 70% Hybrid 60% PDF + XML 50% 40% 30% Pure Images PDF, … 20% 10% 0% 2000 2010 202005/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 4
  • 5. Different preferences of large and small companies in German speaking countries How does your company currently receive ist invoices? (Multiple-selection possible) eMail/PDF Small businesses Medium-sized EDI, XML businesses Large businesses 0 20 40 60 80 100 % of companies Source: ibi research 2011, Elektronische Rechnungsabwicklung – einfach, effizient, sicher – Teil III: Fakten aus der Unternehmenspraxis (www.elektronische-rechnungsabwicklung.de) Why these (irrational) preferences? Most market participants and decision makers know PDF, but have no idea, what EDIFACT or GS1 EANCOM means.05.12.2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 5
  • 6. The divergent capabilities and interests in different market segments (1) Large companies SMEs 46.000 European companies with 23 Million Small and Medium 250+ employees (0.2%) Sized enterprises (99.8%) Good skills regarding IT and law • IT Know-how limited, 2/3rds don’t know legal requirements • 100-1.000 high volume & long- • Small number of invoices per term suppliers trading party • Ability to negotiate bilateral EDI • Bilateral alignments not parameters & agreements appropriate • Full ERP integration • Just 50% have ERP or Accounting • Direct exchange of E-Invoice System; limited integration preferred • Prefer PDF-invoices via email • Fully automated EDI processes05.12.2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 6
  • 7. The divergent capabilities and interests in different market segments (2) High volume industries Lower volume industries ≈ 35% of market volume (Inbound) ≈ 65% of market volume • Healthcare • All other industries • Retail • Just few with strong EDI • Public sector penetration (Automotive, Oil, Transport, Pharmaceutical, …) • 100-1.000 high volume & long- • Small number of invoices per term suppliers trading party • Ability to negotiate bilateral EDI • Bilateral alignments not parameters & agreements appropriate Project owners often the EDI CFO, Head of AR/AP department Managers and CIOs or CEO in smaller companies05.12.2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 7
  • 8. Align contradictory interests Industry & Legislation Country Specs. Cross-industry mass-market Public Sector Company Size Initiatives Heterogeneous market05.12.2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 8
  • 9. Align interest of different company size • Digital Agenda of European Commission and member states with strong focus to enable SMEs for eBusiness, e.g.  Reduce administrative burdens  Guidelines, road-shows (e.g. in Spain)  Reduce legal barriers (e.g. “asymmetric E-Invoicing” in Italy) • Large businesses and solution providers offer increasingly appropriate technical connectivity for E-Invoicing • Attractive conditions for low volume users to exchange and archive E-Invoices in a tax-compliant manner05/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 9
  • 10. Align Country and Industry specifications Still, most countries/industries believe to be so individual, that they prefer to work within closed user groups. However cross-industry exchange of information is improving and alignment is launched; attempt to protect past investments05/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 10
  • 11. Legislation • Legally allowed E-Invoicing methods in the past  EDI (single EDI messages without signatures, but complemented with collective invoices for tax reasons)  Signature method (integrity and authenticity guaranteed on message level)  Other electronic means • To be supported in EU member states after January 1st 2013  EDI and Signature method stay valid, but are enhanced with  Equal treatment (ET) method of paper and electronic invoices (integrity and authenticity guaranteed on process level) • Revision of European E-Signature Directive in progress Invoice audits in case of ET method based on two- or three-way audit trail. Other messages like orders, delivery notes and goods received notes will become more important and accelerate that part of electronic supply chain.05/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 11
  • 12. Public sector initiatives • European Commission  EC Expert Group on E-Invoicing suggested in its final report activities to achieve an efficient framework for E-Invoicing (with main focus on electronic invoices in structured format/EDI  It also suggested a Multi-Stakeholder Forum on EU as well as on country level (established in EC as well as 14+ member states) • PEPPOL (Pan-European Public Procurement Online)  Market connectivity and interoperability between eProcurement communities. Standards-based IT transport infrastructure through access points for eProcurement with standardised electronic document formats (based on UBL and CEN/BII). The public sector represent 10-15% of all inbound/outbound invoices. Pushing E-Invoicing helps significantly to penetrate the markets, based on structured EDI messages.05/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 12
  • 13. E-Invoicing momentum and impact on related EDI messages • Estimation: 5+ million European companies practice E-Invoicing • Mass market adoption in progress: 4.000+ companies as new E-Invoicing users – every day! • European E-Invoicing volume: 3,3+ billion; Growth of 30% p.a. • European-wide penetration is expected to pass 50% in 2017 for the B2B/B2G segment and in 2020 for the B2C segment • Invoice as common denominator in each business; key document for tax reasons  “Queen of all messages” The E-Invoice is often the door opener for launching projects towards automation of whole supply chain. It’s THE accelerator for related messages.05/12/2011 © Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 13
  • 14. E-Invoices are the catalyst to address other business messages and cross-industry trading parties in any country.05.12.2011 page 14