The document discusses the role of governments in driving innovation and standardization in e-invoicing and procurement processes. It outlines the potential future landscape of e-invoicing in Europe, highlighting significant adoption rates among SMEs and public sectors, alongside challenges such as varied business requirements and incompatible systems. The text emphasizes the need for a governance framework and infrastructure support to facilitate seamless e-invoicing and calls for private sector involvement while minimizing public sector standardization efforts.

1. Governments as innovators and market driversMikkel Hippe BrunTechnical Director, PEPPOLChief Consultant, Danish IT- and Telecom AgencyEmail: mhb@itst.dkTwitter: @hippebrunEXPP-SUMMIT 2009AmsterdamSeptember 21st 2009

2. Gartner’s Hype Cycle for E-Procurement Peak of Inflated ExpectationsPlateau ofProductivityTrough ofDisillusionmentInnovationTriggerSlope of EnlightenmentProcure-to-Pay SolutionsBusiness Process NetworksWeb-to-Print ApplicationsExtended Purchasing SuitesExpectationsE-procurementMultienterprise Business Process PlatformSaaS Procurement ApplicationsE-InvoicingE-Procurement NetworkSupplier PortalsTimeYears to mainstream adoption2 to 5 yearsless than 2 years5 to 10 yearsSelected applications from: Hype Cycle for Procurement Applications, Gartner 2009

3. Imagine 10 years from now...European E-Invoicing is mainstream23 million SME’s have adopted E-Invoicing3 million public sector E-Invoicing endpoints*1-2 billion invoices sent to public sector pr. year*>100,000 work years are being saved in public sector pr. year*How did we get to this situation?What role did governments play?

4. Imagine 10 years from now...Are these savings on e-invoicing equal to a competitive advantage in 2019?NOCompetitive advantage implies that:We reach mainstream adoption ahead of the curveWe have gone much further in digitizing the full procurement chain

5. E-Invoicing Product Life CycleMaturityEARLYGROWTHLATEGROWTHINTRODUCTIONVolumeMainstream adoptionTime

6. Mainstream adoption in 10 yearsMaturity23 mill.VolumeMainstream adoptionTime10 years8 years5 years

7. Mainstream adoption in 5 yearsMaturity23 mill.VolumeMainstream adoptionTime10 years4 years5 years

8. BarriersBusiness requirements vary a lot

9. No agreed upon businesses processes

10. Huge difference in business models

11. High barriers in previous legislation

12. Member states implement directives differently

13. Two dominating standards

14. OASIS UBL and UN/CEFACT CII

15. Incompatible technical solutions

16. Shared infrastructure components are missingOrg AOrg B

17. Removing barriersPrivate sectorThe private sector can provide good solutionsE.g. banks, VAN’s and other Service ProvidersA competitive environment fosters innovationE-government services are lagging behindGovernment should stay out“We do not want this creeping public sector standardization”

18. Removing barriersPublic sectorGovernment is the single largest buyer in the EUApproximately 1,800 Billion EuroGovernment should be a locomotiveFor standardization For establishment of infrastructureGovernment should raise the barE.g. make E-Invoicing mandatoryGovernments have historically solved large scale market coordination failuresE.g. ARPANET, GSM

19. What can be done to the barriers?Mandate minimal business processes

20. Set-up a well defined governance process

21. Multilateral peering agreement

22. Loosen technical requirements

23. Align MS implementation of directives

24. Mandate a minimal set of data-elements

25. Accept syntax mappings will co-exist

26. Mandate a transport standard

27. Establish and fund core infrastructureOrg AOrg B

28. Solution?Use Tax Payers Money toEstablish the core infrastructure services Secure fundingSet up a governance frameworkShared by public and private sectorStep backAllow the private sector to innovate

29. The PEPPOL pilotConsortium memberEnlarged consortiumReference group member‏Regional node20 beneficiaries from 14 countriesTotal budget: ~30 M€ Project start up: 1 May 2008, duration 42 monthsA Pilot A under the CIP program

30. PEPPOL visionPan European exchange of business documents between any private company and any EU governmental institutionshould be as easy as sending emails.VCDCatalogueOrderInvoice(eSignature and Infrastructure)

31. StrategyNational solutions will not be replacedWill be aligned with common standardsWill be linked through a common infrastructureCommon EU Standards and Infrastructure

32. PEPPOL resultsTransport Infrastructure specificationsOperational InfrastructureSince May 2009PEPPOL Demonstrator ClientReference implementationMiddleware implementationsOff the shelfInitial versions ofPeering agreementGovernance model

33. Overall production planPEPPOL – high level approach6 monthsextensionSustainable operation ofinfrastructure Construction phasePilot phaseDesign phaseDeveloping Proof of Concept-pilotGroup 2 beneficiaries1.Group 1Test Pilot”Dummy data”Group 32.Production Pilot”Real transactions”3.2010-11-012011-05-012011-11-012009-05-012008-05-012010-05-012009-11-012012-05-01EC – financedoperationsand roll-out1st proposal – 18,75 mill € - 8 nations6 monthsextension1.Enlarg. proposal – 9,15 mill € - 6 nations2.ORG Ref Group – 2,8 mill €18 nations3.4.Start transferingFinancing

34. E-invoicing adoptionEvery month of delay counts…If politicians just new…23 million SME’s have adopted E-Invoicing3 million public sector E-Invoicing endpoints*1-2 billion invoices sent to public sector pr. year*>100,000 work years are being saved in public sector pr. year*

35. Call for actionJoin usGovernment are implementing>30,000 endpoints from May 1st 2010Sustainable and robust infrastructureMultilateral Legal frameworkMix and matchWe are prepared to listen and changeConnect to the PEPPOL Infrastructure

36. How to get involvedGo to Copenhagen October 21st- 23rdFree 3-day conference21st : Executive day22nd : Architecture day23rd : Hands-on dayWho should attend?Service providersPublic sector organizationsERP & Middleware suppliersSign up now at http://peppol.eu

37. http://www.peppol.eu

38. PEPPOL InfrastructureInteroperabilitythroughcommonTransport standards

39. Content standards

40. Business process standardsDid you know?E-Invoicing? years

41. Timeline until launchBeta Implementation PhaseFinal Beta Implementation PhaseImplementation

42. PEPPOL InfrastructureSML = Service Metadata Locator (interface)SMP = Service Metadata Publisher (interface)AP = Access Point (Operated by a Service Provider)