Interoperability is a business managers issue

Friso de Jong

INTEROPERABILITY IS A BUSINESS - Owner/Manager Silverback B.V.[www.silverback.nl]
MANAGERS ISSUE
- Initiator Dutch Electronic Invoicing Platform
[www.platformelfa.nl] en Factuurwijzer [www.factuurwijzer.nl]

- Speaker

14 November 2007, EBIF - Author/ columnist
Friso de Jong, Chairman Platform ELFA, Factuurwijzer

©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl

Factuurwijzer
Platform ELFA wants to accelerate the adoption and use of
Independent experts, with years of experience with electronic
electronic invoicing and automated invoice processing in the
invoicing and automated invoice processing. We support large
Netherlands, letting everyone profiting from the advantages:
and small businesses, suppliers, users, public authorities and
also sector organizations.
creating and communicating an unambiguous view on

electronic invoicing and automated invoice processing
1. Presentations, workshops (>100), trainings
cooperation on regulation, standardization and (self) certification

2. Demonstrations, business cases, NPV/IRR/ROI calculations
sharing knowledge and learning from experiences

3. Selection and implementation: FD, RFI, RFP
bringing together prominent players in this area

4. Advice


Agenda (e)Invoice from a business perspective
Role of the invoice from a business perspective

Financial

Traditional invoice process: disadvantages
  part of van order, payment, volume of trade, profit, cash/credit
management
Electronic invoicing process: opportunities/research results

Communication

Electronic invoicing interoperability

 contact moment with the customer (consumer, business, authorities);
 legal  marketing possibilities

Proof

 functional
 trade law: end of supply process
 technical
 public prosecutor law: right to setoff of VAT and deducting expenses
 communications Integration

Concluding remarks


1

Traditional invoicing proces Traditional invoicing: disadvantages

 Export mistakes (supplier) and import mistakes (customer)
 Data from several systems and departments
 High costs per invoice: average € 2 - € 4
 Even higher costs when dispute: € 25 - € ∞
 No link to marketing, payment or credit management
 Archiving costs
 Estimates concerning cash management
 ‘Compliance’ efforts


Advantages electronic invoicing Advantages electronic invoicing
Optimising invoice processing

Financial advantages

 decrease of operational process costs
 cost savings per invoice
 faster internal processing (couple of systems, files)
 credit management
 better control and feedback
 lower DSO

Decrease process mistakes and accompanying costs

Better archiving, communication and marketing

 mistakes and conflicts can be sowed easier
 faster and more reliable payment
Higher customer satisfaction


Reduction of labour-intensive operations

Better cash/liquidity management?



So, what are we talking about?
Interoperability

E-business
Interoperability is often confused with standardization


leads to
This confusion can hamper interoperability and therefore hamper e-

E-invoicing
invoicing, and on its turn: e-business

leads to
Interoperability can be achieved of or even enhanced by incorporating

a number of other -additional- instruments Interoperability

leads to
And: that is also the case with regard to e-invoicing and –again-

e-business
Standardization

2

Interoperability: legal perspective Interoperability: functional perspective

The legal models can be ‘implemented' using several functional aspects:

 There are four legal models (at least in the Netherlands):
 seller direct, buyer direct, consolidator, four corner [SEPA], buyer
 the application of a digital signature on the message, the document, processing, direct processing, self billing
or on the data structure  ‘application service providing’ or ‘in house’
 send/present of invoices and EDI
 use of structured data traffic (EDI)  link to payment possibilities: credit card, iDeal (pay invoice), SEPA
components,…
 some other electronic forms to send and receive electronic invoices
In this way, there are several combinations possible, dependent on the

nature of the invoice and the nature of your customer(s)
 Automated payment (‘Direct Debit’)


Interoperability: technical perspective Interoperability: marketing perspective

Every company has a specific set of customers.

Standardization?

In each set of customers you will find several subsets with different

Other technical aspects?

degrees of interpretabilities: low, medium, high, and pioneer.
These subsets can be addressed by communicating the profits

But what does that have to do with a business manager trying to
electronic invoicing brings to them.
achieve his MBO’s/ advantages with using electronic invoicing?
Furthermore: applying a (flexible) multi-channel and a multi-format

strategy has high marketing value!
Shouldn’t the technical aspects be facilitating all the other aspects? Standardization just isn’t the answer (yet!) to electronic invoicing

from a business managers perspective.


Are you using electronic invoicing?
What developments do we see?
Ja

Factuurmonitor Binne n 6 ma a nde n

Binne n 12 ma a nde n

Please note:
Binne n 1 - 3 ja a r
- Target group = SME
- It concerned a 0- measurement, so temporary data
- This data is not to be used without prior permission Ne e

0 10 20 30 40

3

Who are your customers? Considerations for electronic invoicing?
Besparing voor de verzender

Facturen eerder betaald krijgen
MKB
Besparing voor de ontvanger

Voldoen aan w ens van de klant

Doen aan klantenbinding
C orpora te
Voldoen aan eis/verplichting klant

Meer verkeer naar de website
Ove rhe id
Meer verkoopmogelijkheden

Verbeteren w erkkapitaal

Positie in keten handhaven
Consumenten
Overig

0 10 20 30 40 50 60 70 80 90 0 20 40 60 80

Barriers to electronic invoicing? Electronic invoicing along which channel?
Complexiteit
Geen (na )controle
Onduidelijke w etgeving
Per e-mail
Geen standaarden
Boekhoudpakketten
Presenteren in
Zijn we te klein voor
Internetbankieren
Factureren in eigen hand houden
Specificaties/bijlagen bijvoegen
Presenteren in
Te hoge investering
webportal
Beveiliging
Geen besparing
Accountant Per gewone post
Overig

0 5 10 15 20 25 30 35 0 10 20 30 40 50 60 70 80


Feedback on a electronic invoice?
With which file format?

PDF Ontvangen

Kaal' e-mailbericht Gelezen

EDI-formaten
Geopend
XML
Gedownload
Papier
Geprint
Excel
Anders
(geaccordeerd)
Word
Geen
Overig

0 10 20 30 40 50 60
0 10 20 30 40 50 60 70 80


4

Electronic invoicing
Concluding remarks

 Interoperability is a business managers issue, as it opens up Instruments:

fast potential regarding electronic invoicing Standardization?


Awareness
…?
 Interopera-
 But: Interoperability is not standardization (marketing)
bility Instruments:
 And: the business managers almost always de DMU! ….?


 Creating ‘electronic-invoicing-interoperability’ acquires
additional instruments.
Regulation Instruments
Instruments:
 These instruments should be differentiated on the basis of ….?

….?

customer –subset- characteristics >>>>


Any questions?

©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl

5

Interoperability is a business managers issue

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