Swiss payment forum

Real
Time

Economy

Swiss
Payment
Forum

27-‐28.11.2013

Bo
Harald

Real
Time
Economy
–
a
new
paradigm

1. 
2. 
3. 
4. 
5. 
6. 

Background

The
Real
Time
Economy
program

The
base
is
structured
e-‐invoicing
-‐
establish
it
fast

Move
to
the
next
layers
–
Data
ExtracHon

e-‐
and
mobile
banking
criHcally
important

Conclusion

Challenges in a borderless world
1.  The effects of digitalization in an open global economy
on us, our customers and national economies
have become very clear: there is nowhere to hide.
2. Only proactive actions to improve the value proposition and
reduce the cost-base will secure the future.

Real Time Economy
services
deliver both
In the same click!

Technology
moving
from
process
enabler
to

smart
Networked
Economy
driver

Networked
Economy
Process
Automation
Personal
Computing
1980

1990

2000

2010

2020

4

2.
Trends
and
Megatrends
(1/2)

1.  Capability
of
IT
is
doubling
at
constant
price
on

yearly
basis
(ignore
at
your
peril..)

2.  Customers
expect
net-‐based

services
–
Google
and

Facebook—like

3.  Opportunity
to
build
and
interconnect
vast
data

volumes
>
moving
from
self-‐service
to

service

2.
Trends
and
Megatrends
(2/2)

4.
Cloud
service
opportunity
>
new
levels
of

interconnecHvity
and
in-‐cloud
innovaHon

5.
Enabling
automaJon
of
everything
>
cut
SME

administraHve
cost
in
half
and
corresponding

savings
in
the
public
sector
(total
potenHal
4,5bn€/
pa
in
ICT2015
path2)

6.

Real
Time
compleHon
across
networks
is

increasingly
expected
and
needed
–
new
value

dimension

Your
customers
have
clear
goals..

Speed up digitalization!
1.  Sell
more

2.  Create
customer
delight
3.  Lower
costs


Digital
innovaHons
–
incremental
all
the
Hme
and

disrup.ve
from
Hme
to
Hme
-‐

in
products,
services,
sales
and
administraHve

processes.

How
can
you
help
customers
to
proceed
–
beZer
and

faster?
Create
value
in
new
dimensions..

General
dilemma

1.  The
highest
performing
companies
have
well

developed
systems
for
killing
ideas
that
their

customers
don't
want.

2.  As
a
result,
these
companies
ﬁnd
it
very
diﬃcult
to

invest
adequate
resources
in
DISRUPTIVE

technologies
-‐
lower
margin
soluHons
-‐
that
their

customers
don't
want
–

3.  unJl
their
customers
want
them.

4.  And
by
then
it
is
too
late!

Clayton
M.
Christensen
in
The
Innovator’s
Dilemma

RTE
–
NaJonal
Co-‐InnovaJon
program

Full

SEPA

FVC

FIA1

FIA2

SME50

2006

2008

2009

2010

2012

Full
SEPA

(Full
Single

European

Payment
area)

-‐ SEPA
payments

-‐ E-‐invoicing

FVC

(Full
Value
Chain)

-‐
Harmonizing

value
chain

development

FIA
1

FIA
2

-‐ 
E-‐accounHng

reference

(HliöinHviite)

-‐ 
Standard
for

Electronic
Financial

ReporHng

(
www.raportoinHkood
isto.ﬁ
)

-‐ Global
e-‐invoicing

standard
ISO20022

-‐ European
e-‐
invoicing
work

-‐ 
Electronic

Financial
Statement

and
XBRL

-‐ Fully
Integrated

Payroll
(FIP):
Payroll

reporHng
codes
and

pracHces

-‐ 
Real-‐Time
VAT

-‐ European
e-‐
invoicing
work

(
Fully
Integrated

AccounHng
1)

1.1.2009-‐30.6.2010

(Fully
Integrated

AccounHng
2)

1.8.2010-‐30.12.201
1

SME
50

(’AdministraHve
costs

in
half…’)

2012-‐2013

1.  AFA
–
Automated

Financial

AdministraHon

2.  FAR
–
Fully

Automated

ReporHng

3.  ERM
–
Enterprise

Risk
MiHgaHon

4.  SIM
–
Sustainability

Intelligence

Management

SME50
–
Overriding
MoJvaJon

Cu;ng
Administra.ve
costs
in
half
+
…

SME
50
is
building
on
the
EC
DG
Enterprise
public
sector
“red

tape”
iniJaJve
(reduce
cost
of
administraHve
burden
by
25%
by

2012).

SME
50
focuses
on
soluHons
for
automaJon
of
administraJve

processes
to
1.
cut
costs
(addiHonal
25%),

2.

lower
risks
and
3.

improve
ﬁnancing
and
cash
management
within
the
enterprises.

SME
50
automates
processes
to,
1.
save
costs,
2.
lower
risks,
3.

improve
cash
management
and
4.
collect
taxes
due
for
the

public
sector

4.3.2014

Photo:
www.sxc.hu

Real-‐Time
Economy
for:

1. Better Productivity
2. Better Service
3. Better Environment
4. Better Co-innovation
5. Better Jobs

Photo: Sachyn

How
to
get
there
–
e-‐invoicing

Two
key
recommendaJons

implemented:

-‐

New
VAT
direcHve
–
equal
treatment

-‐  ISO20022
global
message
standard

(UNCEFACT
CII
v2
based)

Next:

Harmonized
and
automated
VAT-‐
reporHng

EC
Expert
Group
on
e-‐Invoicing

Crystal
clear
mindset:

Paper
invoices

have
NO
future

in
EU

15

2010-‐11-‐21

e-‐Invoicing
Business
case

-‐ 

Enterprises
in
Finland
can
save
2,8bn€/year
in
b2b

(Employer’s
AssociaHon)

-‐  The
municipals
can
save
150m€/year
(Municipals
AssociaHon)

-‐  The
state
sector
can
save
150m€/year
(State
Treasury)

-‐  Investment
needs
are
minimal/small

How
get
there
fast?

1.  Simple
tool
for
even
the
smallest
enterprises

2.  StandardizaHon
to
speed
up
ERP-‐adjustments

3.  Charge
for
paper

4.  Deadlines
–
public
sector
FIRST
out

Example
from
globally
leading

manufacturer
of
ﬁne
paper

United
Paper
Mills
le/er
to
suppliers:

“Esteemed
trading
partner,

UPM
moves
to
electronic
invoice
pracHces

from
1.7.2009
onwards.
In
pracHse
this

means
that
the
company
only
accepts

electronic
invoices.

….

From
the
beginning
of
2010
UPM
will
have
to

return
paper
invoices
to
the
senders….”

Model
case:
NO
scanning

Real
Time
Economy
–
a
new
paradigm

1. 
2. 
3. 
4. 
5. 
6. 

Background

The
Real
Time
Economy
program

The
base
is
structured
e-‐invoicing
-‐
establish
it
fast

Move
to
the
next
layers
–
Data
ExtracJon

e-‐
and
mobile
banking
criHcally
important

Conclusion

Bigger
reporJng
picture

Seller

Invoice file

E-Invoice file (any format)

Operator
Extracting
data

Account
statement 3.0
> Real Time
accounting
Real Time Cash
flow forecasts

Real Time
Invoice
financing

Buyer1

Mail
Domestic VAT

EU - VAT

Tax inspection

Intrastat

Forecasting

E-mail (PDF)

Buyer2

Buyer3

Real-‐Time
VAT

ISO20022
ISO20022

ISO20022

ISO20022
ISO20022
ISO20022

StandardizaJon
breakthrough
in
extended
payments

Coming:
ISO20022 for factoring
ISO 20022 Tax Invoice
ISO 20022 e-order
20022 e-invoice

20022/11649 creditor reference

Invoice

Seller

Invoice

Biller
Service
Provider

Invoice

Buyer
Service
Provider

Buyer

20022 payment
20022 XML
account statement

Biller’s
Bank

Payment
Infrastructure

21

Buyer’s
Bank

20022 XML
account statement

2010-04-07

Real
Time
Economy
–
a
new
paradigm

1. 
2. 
3. 
4. 
5. 
6. 

Background

The
Real
Time
Economy
program

The
base
is
structured
e-‐invoicing
-‐
establish
it
fast

Move
to
the
next
layers
–
Data
ExtracHon

e-‐
and
mobile
banking
criJcally
important

Conclusion

simple insight
….simple insight - that the
only thing scarce in a world
of abundance is human
attention.”

Less
Jme
for
any
one
thing...
>
quest
for

clarity,
clinical
simplicity,
holisJc
collaboraJve

oﬀerings
and
repeatability

Bank customer Bank corporate customer

Utility customerCorporate utility customer

My name is Guy
Same Guy

Citizen in public
sector service

Enterprise in
public sector
service

Operator customer Operator corporate
customer

Banks & insurance
Pankin asiakas Pankin yritys-asiakas

Utilities
Sähköasiakas

Sähkö yritysasiakas

Same familiar e-tools - embedded

Often used and trusted e-tools
for e-id, e-signatures, e-payments,
payments-integrated e-invoicing

Mr. Same Guy
Same familiar e-tools..

Terveyskeskusasiakas
Public sector

Same familiar e-tools - embedded

Same tools
across:
- Roles and
- Services

Operaattoriasiakas Oprin yritysasiakas
Telecom

Innovation ladder example from
banking
High volume service
improvements
8. Mobile payment
approvals

7. Extract VAT data from einvoice > automated
reporting

6. Integrate e-invoice with
account statement >
automated accounting

5. Receive e-invoice for 1click or automated
payment

4. Send e-invoice – just like a
payment

2.e-banking credentials
connecting 3rd parties

3. Bill payment habit > ecommerce payment

Big productivity improvements

1. e-banking usage

26

2006-03-23

2010-11-21

Not user friendly..

Economy of repetition

The
best
innovaHon
is
open

Reuse
of
a
familiar
tool

For
new
purposes

It
is
all
about
human
behaviour….

o  "What
I
hear,
I
forget.

! 
What
I
see,
I
remember.

" 
And
what
I
do,
I
understand.“

Time
to
connect..

EU
focus
on
e-‐invoice

Only
banks

can
make
the
mass
market
breakthrough
using:

1.

ready
standards
(ISO20022)

2.
omnipresent
net-‐banks
as
interface,

3.
the
payment
system
for
transport
and

4.
their
massive
sales
power
for
MAKING
IT
HAPPEN.

EU-commission slide:

II.1
What
are
the
driving
forces
for
the
EU
to
act

1.  The total costs of (cash & electronic) payments to the economy ranges
between 3 - 4% of GDP.
2. A shift to electronic payments* (example: Nordic countries) can half average
cost of producing payments over a period of ten years and has a positive
impact on consumption and GDP growth (10% increase in e-

payments # 0,5 increase GDP).

Payments-integrated e-invoicing
will have a similar impact !!

Nordics leading the
revolution
#1
Sweden
#3 Finland

Of
course..

"We
tend
to
overesJmate
the
eﬀect
of
a
technology
in

the
short
run

and

underesJmate
the
eﬀect
in
the
long
run.”

Amara’s
law

Especially
so
–
as
digital
innovaHons
x-‐ferHlize
each
others
–
and

this
may
take
Hme..

Start
early
–
let
mature
–
implement

gradually

“Any hype will do”
Early start: “Explorer”
Late (re)start: “Panicky follower”

“ICE AGE”

2006-03-23

“ICE AGE”

Page 36

Technology
is
only
developed
when

used

The
early
automobiles:

•  They
looked
like
horse
carriages

•  They
didn’t

go
faster

•  They
open
had
break
downs

•  They
where
a
good
deal
noisier

•  and
a
man
with
a
red
ﬂag
had
to
go
in
front

There
where
absolutely
no
ra8onal
reason
to
use
them

• 

-‐
but
they
where
the
start
of
a
revolu8on!

Should
be
remembered

It
is
not
DEMAND
that
creates
SUPPLY

It
is
the
other
way
around

Henry
Ford

“Do
not
go
where
the
puck
is
>

go
where
it
is
going!”

Wayne Gretzky

39

2010-11-21

The future is not planned
nor prognosed

It is created !
Video: http://www.youtube.com/watch?
v=Kb3q2viAbbk&feature=youtu.be

Thank you

haraldbo10@gmail.com,
http://boharald.blogspot.com
40

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