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Interoperability is a business managers issue
1.
Friso de Jong
INTEROPERABILITY IS A BUSINESS - Owner/Manager Silverback B.V.[www.silverback.nl] MANAGERS ISSUE - Initiator Dutch Electronic Invoicing Platform [www.platformelfa.nl] en Factuurwijzer [www.factuurwijzer.nl] - Speaker 14 November 2007, EBIF - Author/ columnist Friso de Jong, Chairman Platform ELFA, Factuurwijzer ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Factuurwijzer Platform ELFA wants to accelerate the adoption and use of Independent experts, with years of experience with electronic electronic invoicing and automated invoice processing in the invoicing and automated invoice processing. We support large Netherlands, letting everyone profiting from the advantages: and small businesses, suppliers, users, public authorities and also sector organizations. creating and communicating an unambiguous view on electronic invoicing and automated invoice processing 1. Presentations, workshops (>100), trainings cooperation on regulation, standardization and (self) certification 2. Demonstrations, business cases, NPV/IRR/ROI calculations sharing knowledge and learning from experiences 3. Selection and implementation: FD, RFI, RFP bringing together prominent players in this area 4. Advice ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Agenda (e)Invoice from a business perspective Role of the invoice from a business perspective Financial Traditional invoice process: disadvantages part of van order, payment, volume of trade, profit, cash/credit management Electronic invoicing process: opportunities/research results Communication Electronic invoicing interoperability contact moment with the customer (consumer, business, authorities); legal marketing possibilities Proof functional trade law: end of supply process technical public prosecutor law: right to setoff of VAT and deducting expenses communications Integration Concluding remarks ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl 1
2.
Traditional invoicing proces
Traditional invoicing: disadvantages Export mistakes (supplier) and import mistakes (customer) Data from several systems and departments High costs per invoice: average € 2 - € 4 Even higher costs when dispute: € 25 - € ∞ No link to marketing, payment or credit management Archiving costs Estimates concerning cash management ‘Compliance’ efforts ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Advantages electronic invoicing Advantages electronic invoicing Optimising invoice processing Financial advantages decrease of operational process costs cost savings per invoice faster internal processing (couple of systems, files) credit management better control and feedback lower DSO Decrease process mistakes and accompanying costs Better archiving, communication and marketing mistakes and conflicts can be sowed easier faster and more reliable payment Higher customer satisfaction Reduction of labour-intensive operations Better cash/liquidity management? ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl So, what are we talking about? Interoperability E-business Interoperability is often confused with standardization leads to This confusion can hamper interoperability and therefore hamper e- E-invoicing invoicing, and on its turn: e-business leads to Interoperability can be achieved of or even enhanced by incorporating a number of other -additional- instruments Interoperability leads to And: that is also the case with regard to e-invoicing and –again- e-business Standardization ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl 2
3.
Interoperability: legal perspective
Interoperability: functional perspective The legal models can be ‘implemented' using several functional aspects: There are four legal models (at least in the Netherlands): seller direct, buyer direct, consolidator, four corner [SEPA], buyer the application of a digital signature on the message, the document, processing, direct processing, self billing or on the data structure ‘application service providing’ or ‘in house’ send/present of invoices and EDI use of structured data traffic (EDI) link to payment possibilities: credit card, iDeal (pay invoice), SEPA components,… some other electronic forms to send and receive electronic invoices In this way, there are several combinations possible, dependent on the nature of the invoice and the nature of your customer(s) Automated payment (‘Direct Debit’) ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Interoperability: technical perspective Interoperability: marketing perspective Every company has a specific set of customers. Standardization? In each set of customers you will find several subsets with different Other technical aspects? degrees of interpretabilities: low, medium, high, and pioneer. These subsets can be addressed by communicating the profits But what does that have to do with a business manager trying to electronic invoicing brings to them. achieve his MBO’s/ advantages with using electronic invoicing? Furthermore: applying a (flexible) multi-channel and a multi-format strategy has high marketing value! Shouldn’t the technical aspects be facilitating all the other aspects? Standardization just isn’t the answer (yet!) to electronic invoicing from a business managers perspective. ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Are you using electronic invoicing? What developments do we see? Ja Factuurmonitor Binne n 6 ma a nde n Binne n 12 ma a nde n Please note: Binne n 1 - 3 ja a r - Target group = SME - It concerned a 0- measurement, so temporary data - This data is not to be used without prior permission Ne e 0 10 20 30 40 ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl 3
4.
Who are your
customers? Considerations for electronic invoicing? Besparing voor de verzender Facturen eerder betaald krijgen MKB Besparing voor de ontvanger Voldoen aan w ens van de klant Doen aan klantenbinding C orpora te Voldoen aan eis/verplichting klant Meer verkeer naar de website Ove rhe id Meer verkoopmogelijkheden Verbeteren w erkkapitaal Positie in keten handhaven Consumenten Overig 0 10 20 30 40 50 60 70 80 90 0 20 40 60 80 ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Barriers to electronic invoicing? Electronic invoicing along which channel? Complexiteit Geen (na )controle Onduidelijke w etgeving Per e-mail Geen standaarden Boekhoudpakketten Presenteren in Zijn we te klein voor Internetbankieren Factureren in eigen hand houden Specificaties/bijlagen bijvoegen Presenteren in Te hoge investering webportal Beveiliging Geen besparing Accountant Per gewone post Overig 0 5 10 15 20 25 30 35 0 10 20 30 40 50 60 70 80 ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Feedback on a electronic invoice? With which file format? PDF Ontvangen Kaal' e-mailbericht Gelezen EDI-formaten Geopend XML Gedownload Papier Geprint Excel Anders (geaccordeerd) Word Geen Overig 0 10 20 30 40 50 60 0 10 20 30 40 50 60 70 80 ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl 4
5.
Electronic invoicing
Concluding remarks Interoperability is a business managers issue, as it opens up Instruments: fast potential regarding electronic invoicing Standardization? Awareness …? Interopera- But: Interoperability is not standardization (marketing) bility Instruments: And: the business managers almost always de DMU! ….? Creating ‘electronic-invoicing-interoperability’ acquires additional instruments. Regulation Instruments Instruments: These instruments should be differentiated on the basis of ….? ….? customer –subset- characteristics >>>> ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl Any questions? ©Factuurwijzer Westervoortsedijk 50 6827 AT Arnhem 026-3214607 jong@factuurwijzer.nl 5
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