tomorrow’s transactions today

IPS London

E-invoicing: state of play march 2011

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The market from 3 aspects

e-invoicing market

Regulation

Service Providers

Corporates

(users)

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Tonnis de Boer • Groningen, The Netherlands, 1973

• Studied Technology Management in NL and UK

• Background in ERP/business software industry, management positions at Exact Software

• Strategic advisor to leading e-commerce companies, financial institutions and technology firms

• Help to develop compelling products and bring them to market

• Expert in business processes, enterprise software and electronic value transactions

• Love to combine business, people and technology

• Only just begun…

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Structure & understand™

• Help professionals to understand the transaction industry

• Facilitate focus on industry level

• Research and knowledge sharing on key industry topics

Develop & manage™

• Help providers to develop compelling transaction services

• Develop features, (new) business and/or services

• In multi-stakeholder process or for individual client

Choose & use™

• Help companies in choosing and using transaction services

• Select services that fit specific business needs of companies

• Manage implementation to deliver anticipated results

Innopay services. value propositions for everyone.

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The market from 3 aspects

e-invoicing market

Regulation

Service Providers

Corporates

(users)

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(EU) Regulation

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EU developments - promising start, but now what? • Original goal: develop e-invoicing framework to harmonize tax, mobilize

companies and interoperability (standards)

• EU Expert Group on E-Invoicing

− Finished in November 2009

− Recommendations

− Some key activities assigned to other fora

• Banks

− E.g. EBA E-Invoicing Working Group

• Harmonization of legal environment

− ‘Equal treatment’ of e-invoices vs. paper invoices

− Yes in some countries, more to follow, but slow

− 2013 transposed in all EU countries

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3 e-invoicing standards left

• UBL 2.0 − Most commonly used in businesses

• ISO 20022 − Financial invoice

− Adopted by banks

• UNCEFACT CII − Recommended by expert group

− Datamodel compatible with the other two

− Highly complex because ‘ fit for all’

• Multiple standards are here to stay

• Issue?

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EU (new) 2020 vision Adding another 8 years…

• In 2020 e-invoicing has to be the predominant method of invoicing in Europe

• 16 ACTIONS

e.g.:

- Call for action member states > Local governments

- Organize stakeholders > Local governments

- Revision e-signatures

- Code of practice > CEN

- Implementation guidelines > CEN

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e-invoicing market

Regulation

Service Providers

Corporates

(users)

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Landscape of Service providers

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Current service provider focus on corporates

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Service providers

• + 400 service providers in different models

• Focused on big buyers and/or big sellers

• (try to) do more then just exchanging documents

• From simple email invoices

− To highly complex XML B2B integrations

− and..

− From fully outsourced processes

− To just selling software

• Difficult to get from A to B (= limited reach)

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e-invoicing market

Regulation

Service Providers

Corporates

(users)

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Activities of Corporates / users

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But so much more benefits in the end to end process

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Corporate e-invoicing A/R and A/P requirements

• Success = extent of integration with operations

• Visibility across financial supply chain is key

• Remove paper and paper processes

• Integration with payments and reconciliation

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e-invoicing market

Regulation

Service Providers

Corporates

(users)

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Market conclusions

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Market status

• 50% market growth reported

• Big buyers

− Moving ahead towards B2B integration, forcing their suppliers

• Big billers

− Putting their invoices online, forcing their consumers or small businesses

• Banks investigating their opportunities

• 400+ service providers

• EU pressure

• Unaddressed SME market

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Conclusions

• Growing from a small base

• Solutions market grows by 50%, but total market adoption still below 7%

• 24mln business in the EU, no mass adoption (yet)

• EU action plans

• But for users,

− Many island solutions

− Legal uncertainty?

− Which standard to choose?

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Our advise to corporate treasurers

e-invoicing market

Regulation

Service Providers

Corporates

(users)

• Start pragmatically,

but focus on the

long term benefits

(integration)

• Your requirements

are more then just

replacing paper

• Seek for benefits

beyond cost

reduction

• Increase pressure

on EU or local

government for

clear tax

regulations

• Standards are not your problem

• Don’t increase the overall

problem of reach ( by supporting

islands)

tomorrow’s transactions today

Need help?

Tonnis de Boer - tonnis@innopay.com, +31 6 2151175

Feel free to call…