2009 Alcatel Lucent Forum Demat V1.4 Eng

A Paperless Platform for the Alcatel-
Lucent European Region

Guillaume Hatt / Laurent Roche

June 2009

All Rights Reserved © Alcatel-Lucent 2006, 2008

Contacts
Guillaume Hatt
Alcatel-Lucent (Central Business process team)
Senior Program Manager
Mail : guillaume.hatt@alcatel-lucent.com
Phone: +33390675045
Mobile : +33615270306

Laurent Roche
Alcatel-Lucent (Central IT team)
Paperless Program Manager
Mail : laurent.roche@alcatel-lucent.com
Phone : +33390676467
Mobile : +33615378487

2 | Forum Dématérialisation| Juin 2009 All Rights Reserved © Alcatel-Lucent 2006, 2008

Agenda

1.Introduction : Alcatel-Lucent a Worldwide
presence.

2.Paperless ? Our understanding of the fiscal
and other Paperless Principles

3.Constraints, Risks & Opportunities identified
during our initial study

4. What are we doing ?


1
Introduction


Alcatel-Lucent at a Glance
Ben Verwaayen
Chief Executive Officer

 Worldwide Presence: More than 130 countries
 Annual Revenues: €16.98 billion (2008)
 Employees: More than 77,000
 Employee Nationalities: More than 100

R&D PROFILE
 Budget: €2.5 billion
 Active Patents Held: More than 26,000
 Patents Awarded in 2008: More than 2,700
 Nobel Prizes Won: 6
 More than 500 experts in ~100 worldwide
standards organizations.

Paris
Global Headquarters


2008 Market Share Highlights
Broadband Access with 40,6% of DSL market share (1) and 46.4% of GPON (1)

#1
Optics (Terrestrial and Submarine) with 22.2% of market share (2)
CDMA with 42.4% of market share (1)
Western Europe Enterprise Telephony with 17% of market share (3)

#2 IP/MPLS Service Edge Routers with 19% of market share (2)

#3
GSM/GPRS/EDGE Radio Access Networks with 10.8% of market share (1)
W-CDMA with 14.6% of market share (1)

Market shares in revenues for the full year 2008
(1) Dell’Oro Group (2) Ovum (3) Gartner Dataquest (July 2008)


(2008)
Revenue by Region Revenue by Business Group*

Services
Europe
Asia
Pacific
~20%
Enterprise
~19% ~35% ~10%

~16%
Rest of ~70%
the ~30%
World

North Carriers
America

*Reflects prior organizational structure.


2
Paperless ?


Origins
Several origins for Alcatel - Lucent:
 An increasing pressure from Customers to implement Fiscal
Paperless Invoices on top of electronic exchanges.
 An increasing Demand from Alcatel-Lucent Procurement to
implement Fiscal Paperless Invoices on top of electronic exchanges
with our Suppliers
 The increasing necessity to implement the ERP Data archiving, to
reduce the printing costs as well as going toward Green IT.
 New needs, requirements & opportunities concerning other Fiscal
documents (Tax declaraions, Customs declarations, Transport, ..)
 Willigness to consolidate and rationalize the different solutions
implemented through-out Europe and worldwide

Origins
2 Analysis axes have been followed :
 Fiscal paperless and Legal demands
 Documents rendered paperless => Content
management

2 work axes :
 Worldwide study to understand the constraints
and legal requirements per Regions
 An IT Architecture study to settle the needed
modules and features


Fiscal & Legal Paperless
•Authenticity of the origin and integrity of the document has to be guaranteed
•Information as on the hardcopy + additional specific information required
•Access and readability to the paperless document is guaranteed over the longest legal
duration

 European Community regulation
The council directive came into force on January 1st 2004, from this date
electronic invoice can substitute paper invoice. Consequently the fiscal & legal
laws of the EU member states are being updated still as we speak.

 North America SOX Regulation
The SOX regulation is enforcing through its mandatory processes the equivalent
requirements as the Paperless European regulation. The digital Original Proof
stamp is NOT required.

 South America Regulation
First initial feedback show that high level requirements are closed to European
ones with strong local specificities

 Asia Pacific Regulation
First initial feedback show that high level requirements are closed to SOX ones

European Focus

• Definition is provided in the EU Council Directive
2001/115/EC of 20 December 2001 which aims at
simplifying and harmonising the conditions for invoicing
in respect of value added tax, and includes rules on e-
Invoicing and archiving :
• ―The sending of invoices ‗by electronic means‘, i.e.
transmission or making available to the receiver and
storage using electronic equipment for processing
(including digital compression) and storage of data, and
employing wires, radio transmission, optical
technologies and other electromagnetic means‖. By
definition no paper document is involved.

12 | e-Invoicing : Workshop | May 2009 All Rights Reserved © Alcatel-Lucent 2006, 2008

European Focus : Conditions for electronic archiving

• Every taxable person shall ensure that copies of invoices issued by
himself, by his customer, or in name and on his behalf, by a third
party, and all the invoices which he has received are stored. The
authenticity of the origin and integrity of the content of the
invoices, as well as their readability must be guaranteed throughout
the storage period.
— The place of storage : Should be in any EU Member State for ALU
— The period of storage : 10 years for ALU BP European scope (The
storage period is defined by the individual Member State).
— The format of storage :
• Member States have the option to require storage in ‗original‘
format : e.g. invoices sent or received electronically, must be
stored electronically in most Member States;
• Member States have the option to require the storage of
additional data.


A Definition of the Paperless and Fiscal Paperless
To render a document paperless is transforming a flow of document, as well as the
processes that are applied to it, into digital flows and processing.
The paperless process objective is to transform the paper legal proof in an electronic legal
proof

You must be able at any time to manage the followings :
 Flow
 To prove you have sent or received the document
 Content
 To be compliant with the countries legal and fiscal requirements
 Document
 To provide the original content of the document
 To provide it in a human readable format
 Safe storage
 To store safely the document during a legal period
 To provide access to this document
You must :
 Establish a contract with the vendor or the customer


Propriétés d‘une plateforme de dématérialisation
Messages Partenaires
Log Log
Non – Litigation List
Flow

Multi readable format
Fiscal Legal

Certification
Content

Original Readable
Integrity
Certification Format

Document

Long time
Storage Access History/log
availability

Safe storage


Principes d‘Architecture
Paper
AL data Customer
Invoice
archiving archiving

Customer Customer
documents documents
One ERP list
list Customer
Customer
Certified Customer
Customer
Paperless
Services
Customer
Customer
AL data Vendor Customer
archiving documents Vendors
AL archiving
Vendor Vendor
Documents Documents
list list
Alcatel-Lucent system Certified Architecture Partner system

Alcatel-Lucent Responsibility Partner Responsibility


Documents Paperless Criteria : Core Business vs Contextual

Criteria Type of Financial and legal Commercial & Operational
Documents docs Technical docs Finance and
Supply Chain docs
Integrity
management YES YES YES

Proof of Integrity
YES NO YES

Authenticity Mngt
YES YES YES

Proof of
Authenticity YES NO YES

Confidentiality
YES YES NO

Legal Archiving
YES NO YES


Architecture external Communication
ECM Archive

Paperless 8
Enterprise Content
Customer Services
Management
XYZ PlatformABC
5
Internet Non-Litigation
B2B GW
List
7
4 3 Signed Customer
Non-Litigation Invoices
Proof List Paperless
Customer OneERP
Mngt Services 6 EAI
e-Signature Invoices BP
Body Platform
Readable Doc Functionnal 1
Proof Mngt 3 EDIGW 2 Log
9

Paperless Business Monitoring
Customer Services Update
VAN 5
TVW Platform DEF


Architecture internal communication
ECM Archive
Customer
Enterprise Content
8 7 Management
Government

@ Customer Invoices
Accountancy Books

Litigation
List
6
1
4 Signed
Customer
Non-Litigation eDocs
Proof Paperless Invoices
List OneERP
Mngt Services 5 EDIGW EAI &
e-Signature BP
Body Platform Accountancy
Readable Doc 3
Books
Proof Mngt 2
9
Business Monitoring
Update

3
Constraints, Risks & Opportunities


Risks & Constraints
By implementing a Worldwide our regional paperless plateform, we will
avoid the following

Business
 Litigation with partners, even based on current contracts

Legal & Fiscal
 Non respect of local European legal laws in case we are required to go
forward with Paperless Electronic exchanges with our Customers.
 Penalties in case of altered content

IT
 multiplicity of Paperless platform driven by Partners requirements, local
legislation, local initiatives, …

21 | Paperless study – executive summary| March 2008 All Rights Reserved © Alcatel-Lucent 2006, 2008

Opportunities ?
Business
 Economies of Scale
 Pro-active behavior toward our Partners
 Additional Competitive Advantages for Contracts negotiations
 Improved Cash Flow and Credit Management situation
 One Document Management System foundation, complete visibility on
inbound and outbound on Electronic documentation.

Legal & Fiscal
 Enforced alignment with Legal & Fiscal regulations on a worldwide basis.

IT
 Co-Sourcing with Worldwide and / or Regional Partners thus reducing the
specificities management inside ALU as well as ensuring to benefit from
the Economies of scale of a Connection HUB
 Faster and more efficient deployment

4
What is being implemented


Current IT Alcatel-Lucent Picture
Numerous Platforms designed and implemented on a case-by-case basis.
Internal Platforms
External Platforms

Numerous Standards, Protocols and Technologies adapted on a case-by-case
basis.

Difficulties and Costs increase for
Maintenance
Improvements
Deployments

Low Adaptability on Businesses evolutions as well as on Regulation evolutions


Alcatel-Lucent Current Market Analysis
No REAL worldwide Paperless Actors (even less for Fiscal Paperless)

Specialization of the Market Actors in certain Business Approach :
Customer or Supplier oriented
Flow or Document oriented
Fiscal or Electronic Exchange oriented
Standards and protocols oriented

Business Model
Actors‘ Business Models and Commercial proposals are targeting low and
medium range of document volumes.
Demand being well over the offer, there is NO investment into new or
specific requirements nor features
Implementation costs and Operation costs could be very high


Alcatel-Lucent Technical and Functional Requirements
Fromour different functional and commercial requirements, the following
scenarios or a MIX of these different scenarios will be used.

Scenario 1 : Sending the signed original document PDF (non-structured);

Scenario 2 : Traditional Business-to-Business with our Customers;

Scenario 3 : Sending the signed original document / structured message

Scenario 4 :Parallel sending of the signed original document PDF (non-
structured) & sending the structured message to allow the data integration
(Agreement on a Customer basis)

Scenario 5 : Sending the original document / structured message(XML,…)


Target Architecture for Alcatel-Lucent
An Internal Platform designed and implemented on a GENERIC foundation.

Numerous standards, protocols & technologies adapted on a case by case for
the Extrenal communication needs.

One Standard, One Protocol, One technologie for Internal communications.

Capacity to manage the Fiscal Dematerialisation / Paperless rendering for the
Customer Invoices, Accounting Books and other Fiscal reports toward
Governments.

Capacity to manage the Paperless documents through a Unified System of
Document Mngt (Enterprise Content Management)

Capcacity to manage and handle an Electronic Vault


Des éléments concrets !
• Italie :
Substitutive Conservation = replacement interne des archives papiers par des archives électroniques. Ceci est applicable
aux factures clients, aux déclarations fiscales et comptables pour le gouvernement. PDF (non-structuré) signé en
coffre-fort électronique.

• Pologne :
Facture électronique avec dématérialisation fiscale. XML (structuré) signé en coffre-fort électronique.

• France :
Facture électronique avec dématérialisation fiscale. PDF (non-structuré) signé en coffre-fort électronique.

• Espagne :
Facture électronique avec dématérialisation fiscale. Format gouvernemental spécifique XML (structuré) signé en coffre-
fort électronique.

• Allemagne :
Facture électronique avec dématérialisation fiscale. PDF (non-structuré) signé en coffre-fort électronique. Les archives
doivent être physiquement abritée dans le Land où est émise la facture

• Mexique :
Toutes les factures (papier ou électroniques) doivent être validée et approuvée par le gouvernement avant d‘être
soumise au Client. Format gouvernemental spécifique XML (structuré) signé en coffre-fort électronique.

• Brésil :
Toutes les factures (papier ou électroniques) doivent être validée et approuvée par le gouvernement avant d‘être
soumise au Client. Format gouvernemental spécifique XML (structuré) signé en coffre-fort électronique.


Annexes
A

References : European Council Directives

 Directive 1999/93/EC on a Community framework for electronic
signatures

 Council Directive 2001/115/EC on the conditions laid down for invoicing
in respect of value added tax

 Council Directive 2006/112/EC on the common system of value added
tax


References : EU Expert Group on Electronic invoices (1/2)

European Commission has set up an expert group on e-invoicing with the
task to establish a European Electronic Invoicing Framework by 2009.
The new expert group will build further on the report of the informal
task force on e-invoicing.

6.4.2009 Feedback on comments received on the Mid-term Report of the
Expert Group on e-Invoicing

24.3.2009 Code of Practice on Electronic Invoicing prepared and adopted
by the Expert Group, and aimed at trading parties, solution providers and
tax authorities

27.1.2009 Mid-term Report of the Expert Group
Midday Express, MEX/09/0205 : On 27 January 2009 the Expert Group
on e-invoicing, set up by the Commission, adopted its mid-term report.
The report outlines the progress made during the first year of the group's
mandate and represents an important step towards a European
Electronic Invoicing Framework which the Expert Group will develop
until the end of 2009.

References : EU Expert Group on Electronic invoices (1/2)

Meetings in 2009:

26-27 January

24-25 February

24-25 March

26-27 May

23-24 June

24-25 September

12-13 November

June 2008 Status Report of the Expert Group

7.11.2007 Setting up of the Expert Group on e-Invoicing


Reference : Conditions for electronic invoicing (1/2)

• For electronic invoicing to be VAT-compliant, there are three major
conditions laid down in the Directive:
• — Acceptance by the customer: the customer should be able to decide
whether to accept or decline electronic invoicing by his supplier, in case he
does not wish to receive electronic invoices.
• — Authenticity of origin and integrity of content must be guaranteed. This
can be achieved by means of:
• An advanced electronic signature (AES). Some Member States allow for an
advanced electronic signature to be requested based on a qualified certificate
and created by means of a secure signature-creation device.
• Electronic Data Exchange (EDI, XML,…). Some Member States have opted to
require an additional paper recapitulative statement.
• Other means - not all Member States accept electronic means other than
electronic signatures or Electronic Data Exchange.


Reference : Conditions for electronic invoicing (2/2)
• — The invoice must contain mandatory items of information with the
possibility of some additional items in specific circumstances.
• Remarks :
 Electronic Data Exchange means the term ―EDI‖ in the Directive
2001/115/EC. It should have the widest possible meaning of formatted
exchanges, not dependent on a specific ―technology‖ (EDIFACT, X-12,
XML…) nor limited to specific international, national or sector standards.
 The main difference between the first two options is that the « Electronic
Data Exchange » option defines integrity and authenticity as a function of
the entire « Electronic Data Exchange » system, including agreements.
Therefore, the entire system must be documented and potentially audited
to establish compliance. By contrast, electronic signature allows tax
autorities to verify the integrity & authenticity by checking the signed e-
invoicing document.
 In addition to these mandatory items of information, national VAT
legislation can require additional items, which in fact are contrary to the
European e-Invoicing directive (In Poland, Total amount due in figures and words for instance)


Reference : Conditions for electronic archiving (1/2)
• Every taxable person shall ensure that copies of invoices issued by himself,
by his customer, or in name and on his behalf, by a third party, and all the
invoices which he has received are stored. The authenticity of the origin
and integrity of the content of the invoices, as well as their readability
must be guaranteed throughout the storage period (Council Directive
2001/115/EC, art 2(2)(d)).
• — The place of storage
• Any EU Member State, if there is online access to the data.
• Outside the EU, if there is online access to the data and the country where you
are storing invoices respects European Data Protection principles. Even then
Member States can exclude this if there is no mutual assistance Agreement with
the latter country. Some Member States do not allow storage outside the EU.
— The period of storage
• The storage period is defined by the individual Member State.


Reference : Conditions for electronic archiving (2/2)
— The format of storage
• Member States have the option to require storage in ‗original‘ format:
e.g. invoices sent or received electronically, must be stored
electronically in most Member States;
• Member States have the option to require the storage of additional
data.


Electronic signature (EU Directive 1999/93/EC)

Electronic Signature
Shall be data in electronic form that are
attached to other electronic data or logically
linked to them and used for authentication;

Advanced Electronic Signature
Shall be electronic signature as 1. above that
a) are exclusively assigned to the owner of the
signature code

b) enable the owner of signature code to be identified
c) are produced with means which the owner of the signature code can keep under
his sole control and
d) are so linked to the data to which they refer that any subsequent alteration of
such data may be detected;

Qualified Electronic Signature
Shall be electronic signatures as in 2. above that
a) are based on a qualified certificate valid at the time of their creation and
b) have been produced with a secure signature-creation device

2009 Alcatel Lucent Forum Demat V1.4 Eng

Recommended

Recommended

More Related Content

What's hot

What's hot (11)

Viewers also liked

Viewers also liked (14)

Similar to 2009 Alcatel Lucent Forum Demat V1.4 Eng

Similar to 2009 Alcatel Lucent Forum Demat V1.4 Eng (20)

2009 Alcatel Lucent Forum Demat V1.4 Eng