focus on einvoicing goal 2006:
DESCRIPTION
Regional business case in South-Karelia by Technology Centre Kareltek. Focus on eInvoicing Goal 2006: 1,2 M€ Investment in eInvoicing will improve competitiveness by 50 M€ per year and it will be the first step to digitialize the hole procurement. Regional business dirvers. - PowerPoint PPT PresentationTRANSCRIPT
1
Focus on eInvoicing
Goal 2006:1,2 M€ Investment in eInvoicing
will improve competitiveness by 50 M€ per yearand it will be the first step to digitialize
the hole procurement
Regional business case in South-Kareliaby Technology Centre Kareltek
2
Regional businessdirvers
Technology Centre Kareltekwith 85 Companies 800 employees
Lappeenranta University of Technology with 5.000 Students
South-Karelia Region with 110.000 inhabitantsand 5.500 companies
3
Customer
Retail
Large Enterp
SME
Supplier
Inter-Company eDOCS & eProcesses
Product Management
and Publication
Network Management
> >> >
• Offers
• Orders
• Order Confirmations
• eInvoices
• Cover Letters
• Inventory Status
Product Documents
• Planning
• Production
• Sales
• After Sales
• Spare Parts
eBusiness for SMEs
Internal Applications and Processes
eBusiness Networks
CRM Customer Service Sales Marketing
ERP Office Environment Management Personnel
SCM Supply Production Deliveries
Order – Delivery Chain• Activity on the net• Accurate Deliveries• Process Deviations• Process Status• Monitoring
Business Models• Controlled Orders• Project Business
2002-2003 2004-2006
HOW to Raise Penetration2007-2008 2009-2010
eDocs + PDM Digital Control of Networks
eInvoice
4
Savings in handling costs
Savings in handling costs
New business
SCM ERP
CRM
eGo
vern
men
tS
ervi
ce p
rovi
der
sB
anks
& o
per
ato
rseP
ion
eers
SM
Es
Stakeholders and benefits
Automation ofbook keeping
Acc
ou
nti
ng
co
mp
anie
s
5
Case 1: Estimated Personnel Work Load of theProcess of Financial Management (3 737 man years)of Finland’s State Treasury
933
406 399 379344
288 266 244203
178
37
0
100
200
300
400
500
600
700
800
900
1000
Han
dlin
g of
purc
hasi
ngin
voic
es,
purc
hase
ledg
er
Trav
el in
voic
es
Pla
nnin
g pr
oces
s
Boo
kkee
ping
and
finan
cial
stat
emen
t
Rep
orts
and
anal
yzin
g re
sults
Bill
ing
Pay
men
t flo
w(o
utgo
ing
mon
ey)
Fina
ncia
lm
anag
emen
t
Sal
es le
dger
(inco
min
g m
oney
)
Boo
kkee
ping
of
Fixe
d A
sset
s
Wor
k flo
w c
ontr
ol
50 %
6
Impact on one invoice
7 €Handling
(H)
3 €H
3 €SW
3 €SW
0 €; Channel
Channel ; 0,4 €
Handling ; 23 €
Handling ; 7 €
6 €Software
6 €Software
1 € Channel
Channel ; 0,5 €20€ / eInvoice
40€ / Paper Invoice
Sources: Procountor 2004; Elma 2004; Kareltek 2004
Sales Invoice
Sales Invoice
Purchase Invoice
Purchase Invoice
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Amount of 50 %
invoices per eInvoicing
Exaple year
City of Lappeenranta pcs 100 000 50 000
(60.000 inhabitants) saving € 1 000 000
Total 50 %
South-Karelia region pcs 5 200 000 2 600 000
(5.500 companies) saving € 52 000 000
Top 10% companies send 50% of the invoices Top 20% companies send 80% of the invoices
Regional focus on top invoicers
8
In operationIn test
RECEIVER (receives eInvoices from)
SENT (sent eInvoices to) Bas
war
e
Elm
a
Sam
po
No
rdea
En
fo
Osu
usp
ankk
iT
ieto
En
ato
r
WM
-Dat
a
An
ilin
ker
Tel
iaS
on
era
BaswareElmaSampoNordeaEnfoOsuuspankkiTietoEnatorWM-DataAnilinker TeliaSonera
InteroberabilityConnectivity table updated constantly (15.4.2005)
9
Test Results Overall Success Ratio of Interoperable eInvoicing Services
- Technology is not a problem - The problem is usability
88 %
50 %44 % 40 %
0 %
20 %
40 %
60 %
80 %
100 %
Bank to BankeInvoices
Operator to BankeInvoices
Operator toOperator eInvoices
Bank to OperatoreInvoices
10
eInvoicing services provided by banks growing rapidly
Case: Nordea B-to-B eInvoice agreements 2003-2005
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
24.8
.
24.9
.
24.1
0.
24.1
1.
24.1
2.
24.1
.
24.2
.
24.3
.
24.4
.
24.5
.
24.6
.
24.7
.
24.8
.
24.9
.
24.1
0.
24.1
1.
24.1
2.
24.1
.
24.2
.
24.3
.
24.4
.
E-invoice in netbank
E-invoice from batch transfer to invoice receiver
E-invoice to batch transfer from invoicer2004 2005
11
22,718,8
30,5
11,7
3,1
13,3
0
10
20
30
40
50
Per
cent
2005 2006 2007-2008 After 2008 Never Alreadyuses
eInvoicingTime
N=128
Results:
Amount of companies starting to
use eInvoicing in South-Karelia
Source: Pulli Hennariina, LUT research 2005
12
Results:
Source: Pulli Hennariina, LUT research 2005
Why haven't adopted
0 20 40 60 80
Our competitors do not use e-invoicing either.
We have not got enoughinformation about e-invoicing.
We are not convinced of thebenefits of e-invoicing.
Our customers have notdemanded.
Our suppliers have notdemanded.
%
Agree
Neutral
Disagree
