Source: www.the-art.nl Strategy Island The audience – the Business Chainy Forests Competence Mountains The Top Swamps of Technology Customer checkpoint Value Valley Carreer Canyon Supplier Shipyard Burn out Gates Supply Fields Proces Waters 6. What value chains ? 4. Competences ? People ? 5. Which means ? What technologies ? 1. What do we want ? Product Channel Gulf of Quality Alignment creek Demington Lake Input Lake Troughput 2. How to do it ? Lake Output Principal Paradise 3. Culture
The challenges (in the 4-corner reference model) Appropriate Standards Appropriate Uptake Appropriate Implementation Appropriate Adoption Appropriate Testing Does my business support a standard … vs: Does my business use a standard … Buyer Seller Exchange of goods /services e.g. UN/CEFACT Buyers bank Sellers bank Accounts Receivable Accounts Payable Information Exchange (a.o. payments) e.g. ISO 20022
Scale of Documentation Example … Cost reduction Paper documentation subsequently destroyed – much non-recyclable Over 90% Pieces of paper generated e ach year by UK perishable food imports supply chain 1 billion Consignment cost savings from each day saved in supply chain 0.5% Duplicate consignment entries 189 million Data entered more than once 30% Documents in a typical single complete consignment transaction from grower to retailer (= up to 225 pieces of paper) 150
Impact of Missing/Delayed Documents Cost with delays Over £1 billion annually Cost to importers of documentary exchange process of original copies without delays £126 million annually
The 4-corner reference model Buyer Seller Buyers bank Sellers bank Goods / Services Information Exchange UN/CEFACT ISO 20022
Dematerialization of Business Processes Buyer Supplier Offer Demand estimate Order / e-signature Statements - tax etc Payment Payment Guarantee Direct debit adv e-Invoice Invitation to tender Deviation info Delivery Guarantee Delivery Information Account statement Payment Assurance
‘ Dematerialiseren van Business Processen’ Purchase process - BUYER Sales process – SELLER Put into market And sell Handle Purchase orders Transport And deliver Send Invoice Receive / Process payment Handle Complaints Handle Complaints Process / do payment Process invoice Receive Make order Determin Purchase strategy Electronic Information Exchange Paper invoice De ‘blik onder de motorkap’ …. Dit illustreert de mate waarin we vereenvoudigen
Dematerialiseren … Waar zit het papier ? Customer Supplier Intermediary Authority End Start From the UN/CEFACT BUY/ SHIP /PAY modelling approach 010110101101011000101 Receive Despatch Advice, Invoice, etc. Provide Customs Import Documents Record Receipt of Cleared Goods Book Transport Arrange Cargo Insurance Initiate Transport Provide Despatch Advice, Invoice, etc. Provide Customs Export Documents Confirm Transport Confirm Cargo Insurance Collect and Transport Goods Clear for Export Clear for Import Obtain Export License etc. Provide Export License etc. Obtain Import License etc. Provide Import License etc.
“ Interoperability is central to establishing eBusiness. The goal of interoperability is to allow information to be presented in a consistent manner between business systems, regardless of technology, application or platform. It thus provides organizations with the ability to transfer and use information across multiple technologies and systems by creating commonality in the way that business systems share information and processes across organizational boundaries. “
Interoperability is the capability to run business processes seamlessly across organisational boundaries.
Interoperability is achieved by understanding how business processes of different organisations can interconnect, developing the standards to support these business processes efficiently and by specifying the semantics of messages exchanged between the organizations to support these business processes in a scalable way.
Basic Interoperability Company X Company Y From: Référentiel Général d'Interopérabilité From: Draft European Interoperability Framework (EIF) 2.0 Technical Technical Business Business Organizational Organizational
“ We identify three basic levels of interoperability: The first is technical interoperability, which consist of the common methods and shared services for the communication, storage, processing and presentation of data. This includes the technical foundations for a secure environment, compatible technical standards and a common framework. The second is semantic or business interoperability, which includes discovery and collaboration aspects, including workflow and decision-making transactions. This can require alignment of business processes as well as operational synchronization of collaboration data. A third layer is organizational interoperability.”
From the eBusiness Interoperability Forum Roadmap:
Why standardisation Standardisation seems to be a technical matter, but it primarily is a business issue. Wrong or enforced standards (i.e. formulated and defined or de-facto emerged from another than the own business vision) can seriously hamper this own business. In addition to that: spending resources on standards that have no business importance is undesired and waste of time and money. For businesses , the widespread adoption of International Standards means that suppliers can base the development of their products and services on specifications that have wide acceptance in their sectors. This, in turn, means that businesses using International Standards are increasingly free to compete on many more markets around the world. Developments in resp. expectations about ‘the Business’ make it necessary to give ‘standardisation’ the required and appropriate attention. In ISO words:
When products and services meet our expectations, we tend to take this for granted and be unaware of the role of standards. However, when standards are absent, we soon notice. Standards provide technological, economic and societal benefits. Examples:
For businesses , the widespread adoption of International Standards means that suppliers can develop and offer products and services meeting specifications that have wide international acceptance in their sectors. Therefore, businesses supporting International Standards can compete in many more markets around the world.
For customers , the worldwide compatibility of technology which is achieved when products and services are based on International Standards gives them a broad choice of offers and benefits from the effects of competition.
For governments , International Standards provide the technological and scientific bases underpinning health, safety and environmental legislation.
For trade officials , International Standards create "a level playing field" for all competitors in those markets. International Standards are the technical means by which political trade agreements can be put into practice.
eBusiness standardisation and modelling Identify Potential Trading Partner Establish Business Agreement Order Ship Pay CheckCredit Manufacture Authority Customer Supplier Intermediary «include» «include» «include»
From model to XML … an automated process <?xml version="1.0" encoding="UTF-8"?> <!--Sample XML file generated by XMLSpy v2008 rel. 2 sp2 (http://www.altova.com)--> <tlf:CrossIndustryInvoice xsi:schemaLocation="urn:tlf:prototype:1 CrossIndustryInvoice.xsd" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:tlf="urn:tlf:prototype:1"> <tlf:ExchangedDocument> <ID>2323223</ID> <TypeCode>380</TypeCode> <IssueDateTime>2008-12-17T09:30:47</IssueDateTime> </tlf:ExchangedDocument> <tlf:SupplyChainTradeTransaction> <ApplicableSupplyChainTradeAgreement> <SellerTradeParty> <ID schemeAgencyID="9" schemeID="GLN">7533432343</ID> <Name>Ecru Consulting</Name> <PostalTradeAddress> <PostcodeCode>11120</PostcodeCode> <StreetName>Gamla Brogatan 28-36</StreetName> <CityName>Stockholm</CityName> <CountryID>SE</CountryID> </PostalTradeAddress> <SpecifiedTaxRegistration> <ID>SE5563434301</ID> <AssociatedRegisteredTax> <TypeCode>VAT</TypeCode> </AssociatedRegisteredTax> </SpecifiedTaxRegistration> </SellerTradeParty> <BuyerTradeParty> <ID schemeAgencyID="9" schemeID="GLN">731273628732</ID> <Name>GS1 Global</Name> <PostalTradeAddress> <PostcodeCode>23212</PostcodeCode> <StreetName>First avenue 3</StreetName> <CityName>Brussels</CityName> <CountryID>BE</CountryID> </PostalTradeAddress>
Long term convergence goal A single ISO-UN/CEFACT approach ISTH Omgeo CLS SWIFT Euroclear ISITC ACBI Core Components Common Business Processes Data Dictionary Business Process Catalogue UN/CEFACT Registry/ Repository www.iso20022.org UNIFI Financial Repository UNIFI Registration Management Group UN / CEFACT (All Industries) UNIFI Registration Authority UNIFI Users Business Requests Message Models TBG17 Harmo- nisation UNIFI Standards Evaluation Groups Trade Services Payments Cards Securities Forex …
A look back in time ..... March 24, 2000 … . produce mutually supportive standards required in business transactions …. … . it provides the vital framework for e-commerce, …. Global cooperation on standards – Trade Facilitation
EC Roadmap for eInvoicing and payments 2006 - 2010  Now incorporated in the VAT Directive (2006/112/EC)  Now incorporated in the VAT Directive (2006/112/EC) http://ec.europa.eu/enterprise/ict/policy/einvoicing/2007-07-eei-final-rep-3-2.pdf Final Report of the Informal Task Force on e-Invoicing July 2007 Steering Committee for the creation of a EUROPEAN ELECTRONIC INVOICING (EEI) Framework Responsible for: 1) Contributing to the removal of legal barriers (EC regulator) 2) Establishing and documenting business requirements and addressing commercial barriers 3) Establishing input for single, interoperable data standard for eInvoicing Planned (2007-2009) DG MARKT/H3 and DG ENTR/D4 Work on the creation of a single, interoperable data standard for e-Invoicing under the umbrella of European and international standards bodies and the support from others Planned 2007 – 2009 (ISO, SWIFT, CEN, UN/CEFACT, NES..) Large-scale CIP pilots on e-procurement, including e-invoicing (Consortium: min. 6 Member States participation) 2008-2010 DG INFSO IDABC pilot project in the European Commission based on e-invoicing requirements 2008 - 2009 DIGIT/DG MARKT EC Report on the Invoicing Directive (2001/115/EC)  and potential proposals for amendments Forthcoming 2008 TAXUD/D1 SEPA: Co-existence and gradual adoption 2008-2010 IDABC study on e-invoicing requirements (for public sector, enterprises and service providers) 2007-2008 DIGIT/DG MARKT Legal study on functioning of the Invoicing Directive (2001/115/EC)  July ’07- Dec ‘08 TAXUD/D1
Contact information Peter Potgieser – Senior Consultant Industry Standards Chair of CEN/ISSS – eBusiness Interoperability Forum Chair of Netherlands Board on eBusiness Standardisation Chair of WebServices Association Vice Chair of ISO 20022 Trade SEG Head of Delegation for ISO/TC68 Financial Services Head of Delegation for ISO/TC154 Member of Delegation for UN/CEFACT Member of UN/CEFACT e-Business, Government and Trade group Member of CEN Delegation to ICT Standards Board Member of Expert Group on Electronic Invoicing Tel: +31 20 383 71 95 / GSM: +31 6301 803 99 E-mail: [email_address]