Bruno Koch
E-Invoicing market trends
and opportunities for service
providers
XIV ICCI Conference
October 9, 2009
Sheraton Hotel, Sofia, Bulgaria
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged.11.10.2009
Market penetration 2009(electronic share of total volume of 30 billion)
>12% 6-12% <1%1-5.9%
B2B B2C
page 2
2009 (E)
Source: Billentis
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 311.10.2009
E-Invoicing market dynamics in Europe
2008
• Roughly 1 million businesses use E-Invoicing (in a tax
compliant manner)
• 25 million consumers
• One billion electronic invoices
Expectation for 2009, every day
• 1,200 businesses
• 11,000 consumers
will become new E-Invoicing users
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 411.10.2009
0
10
20
30
40
50
60
70
80
90
Finland
n=245
Sweden
n=198
Germany
n=341
Norway
n=235
Denmark
n=229
% S
ME
s is
su
ing
ele
ctr
on
ic i
nvo
ices
2006
2008
Plans for 2010/2011
Source: tns gallup
on behalf of Itella, 2008
E-Invoice usage of small/mid-sized senders
SMEs as new E-Invoicing users
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Accelerators for market development
• Recession and the resulting pressure for cost
reduction; interesting business case for users
• Private sector– Large issuers and recipients
– Providers with their rich offerings of applications and
services
• Public sector– Projects on national level, declaring E-Invoicing as
mandatory
– Projects on EU level• Developing pilots which can be adopted by others
• Pushing harmonisation
• Pushing standardisation
• Pushing interconnectivity among service providers
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged.11.10.2009
Project focus of E-Invoicing users
Invoice
Electronic Message
Order
confirmation Order E-ProcurementInvoice
Cashmanagement
Payment
& AdviceFinancial Supply Chain Invoice
page 6
page 7
Solutions
Services
Providers
page 811.10.2009
European Invoice exchange 2009Figures in millions, includes B2B & B2C volume
*) Missing Authentication and/or Integrity, typically as a result of too pragmatic users practising bilateral exchange
Other reason: Electronic original deleted and just copy (electronic or printed) is archived
Volume estimated by Billentis, based on results of surveys in Austria and Spain and experience of consulting mandates
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Corresponding consolidator offerings
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European Service Providers
page 1111.10.2009
Service provider landscape Europe
• End of 2009: close to 400 Operators (340 in 2008)
• In average, every month 1 disappears and 6 new ones appear
• Exploding number of solution providers in markets with government programs, e.g. Spain, Sweden, Holland, …
• Operators with E-Invoice volume > 20 millions p.a.
– Cegedim– b-process– EDB– PROGRATOR|gatetrade – Logica– Anachron– BBS– Tieto– SETTCE– Medidata
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Outlook for solution/service providers
2009: Negativ impact of Investment Freeze, mainly just
increase of transaction revenues & time based fees of new suppliers
2010: Big investments as in the past likely avoided and initial
investments outsourced ( SaaS)
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Service providers addressing E-Invoicing
• Third party billing services
• Letter shops
• Postal organisations
• Message exchange platforms
• Electronic market places
• Signature service providers
• ASPs and hosting providers
• Portals/ISPs with or without
payment functionality
• Scanning & invoice
management providers
• Banks or their shared
service centers
• Payment service providers
• Collecting and factoring
companies
• Archive service providers
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Role of Banks in the B2C market
In all countries
• Secure access portal for internet-banking including EBPP
functionality
• Easy payment via mouse-click
In nordic countries, Holland, Germany and Austria
• Presentment of electronic statements (e.g. salary
statements, registered mail)
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Role of Banks in the B2B market
In all countries
• Secure access portal for internet-banking including EBPP
functionality; used by some SMEs in the same sense like
consumers
• Easy payment via mouse-click
In some nordic countries
• Secure portal for entering and receiving E-Invoices (mainly
used by SMEs)
• Consolidator services
New banking initiatives (corporate departments)
• Combined services around cash management
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Interconnection leverage in Finland
Source: Kareltek
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Complementary services covering all sizes
of organisation in a Nordic country
Issuer
(large)
Recipient
(large)
Issuer
(medium)
Recipient
(medium)
Issuer
(small)
Recipient
(small)
Consumer
Consoli-
dators
Non-bank
consolidators (1)
Consoli-
dators
Issuer
(large)
Recipient
(large)
Issuer
(medium)
Recipient
(medium)
Issuer
(small)
Recipient
(small)
Consumer
Consoli-
dators
Bank consolidators
serving SMEs (2)
Consoli-
dators
(1)
(2)
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged.11.10.200911.10.2009 page 18
Are you still waiting and
thinking about E-Invoicing?
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 1911.10.2009
Bruno Koch
Billentis
www.billentis.com
+41 71 911 60 32
© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. Seite 2011.10.2009
About Billentis
• Highly specialized consulting company: E-Invoicing,
optimisation of Purchase-to-Pay and Financial Supply
Chain; More than 130 customers in 30 countries
• Market analyst; issuer of market reports and newsletters
• Founder & Chairman of the international conference
“European EXPP Summit” www.expp-summit.com
• Member of European Commission Expert Group on
E-Invoicing
• Company founded in June 1999
• Owner: B. Koch (8 years PwC, 4 years Credit Suisse, 2
years Telekurs PayNet)
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Services for providersConsulting & Business Development
• Awareness, strategy and know-how workshops
• Feasibility studies; location of potential and involved business fields
• Identification of business opportunities
• Development of strategy and business plans
• Definition of RFPs, incl. country characteristics and the most suitable billing model
• Formulation of marketing and distribution strategies
• Networking, Mergers & Acquisitions
• Project management/support as far as up-and-running service
• Procedure documentation (legal requirement)