European Governments as innovators and market drivers The vision of the Pan-European initiative for the entire procurement process from eTendering to ePayment Work Packages of the joint project Experience and Status of the Pilot Strategy to encompass all EU Member States Expected impact on private sector

1. Governments as innovators and market drivers Mikkel Hippe Brun Technical Director, PEPPOL Chief Consultant, Danish IT- and Telecom Agency Email: mhb@itst.dk Twitter: @hippebrun EXPP-SUMMIT 2009 Amsterdam September 21st 2009

2. Gartner’s Hype Cycle for E-Procurement Peak of Inflated Expectations Plateau of Productivity Trough of Disillusionment Innovation Trigger Slope of Enlightenment Procure-to-Pay Solutions Business Process Networks Web-to-Print Applications Extended Purchasing Suites Expectations E-procurement Multienterprise Business Process Platform SaaS Procurement Applications E-Invoicing E-Procurement Network Supplier Portals Time Years to mainstream adoption 2 to 5 years less than 2 years 5 to 10 years Selected applications from: Hype Cycle for Procurement Applications, Gartner 2009

3. Imagine 10 years from now... European E-Invoicing is mainstream 23 million SME’s have adopted E-Invoicing 3 million public sector E-Invoicing endpoints* 1-2 billion invoices sent to public sector pr. year* >100,000 work years are being saved in public sector pr. year* How did we get to this situation? What role did governments play?

4. Imagine 10 years from now... Are these savings on e-invoicing equal to a competitive advantage in 2019? NO Competitive advantage implies that: We reach mainstream adoption ahead of the curve We have gone much further in digitizing the full procurement chain

5. E-Invoicing Product Life Cycle Maturity E A R L Y G R O W T H L A T E G R O W T H I NTR ODUCTION Volume Mainstream adoption Time

6. Mainstream adoption in 10 years Maturity 23 mill. Volume Mainstream adoption Time 10 years 8 years 5 years

7. Mainstream adoption in 5 years Maturity 23 mill. Volume Mainstream adoption Time 10 years 4 years 5 years

9. No agreed upon businesses processes

10. Huge difference in business models

11. High barriers in previous legislation

12. Member states implement directives differently

13. Two dominating standards

14. OASIS UBL and UN/CEFACT CII

15. Incompatible technical solutions

16. Shared infrastructure components are missingOrg A Org B

17. Removing barriers Private sector The private sector can provide good solutions E.g. banks, VAN’s and other Service Providers A competitive environment fosters innovation E-government services are lagging behind Government should stay out “We do not want this creeping public sector standardization”

18. Removing barriers Public sector Government is the single largest buyer in the EU Approximately 1,800 Billion Euro Government should be a locomotive For standardization For establishment of infrastructure Government should raise the bar E.g. make E-Invoicing mandatory Governments have historically solved large scale market coordination failures E.g. ARPANET, GSM

20. Set-up a well defined governance process

21. Multilateral peering agreement

22. Loosen technical requirements

23. Align MS implementation of directives

24. Mandate a minimal set of data-elements

25. Accept syntax mappings will co-exist

26. Mandate a transport standard

27. Establish and fund core infrastructureOrg A Org B

28. Solution? Use Tax Payers Money to Establish the core infrastructure services Secure funding Set up a governance framework Shared by public and private sector Step back Allow the private sector to innovate

29. The PEPPOL pilot Consortium member Enlarged consortium Reference group member‏ Regional node 20 beneficiaries from 14 countries Total budget: ~30 M€ Project start up: 1 May 2008, duration 42 months A Pilot A under the CIP program

30. PEPPOL vision Pan European exchange of business documents between any private company and any EU governmental institutionshould be as easy as sending emails. VCD Catalogue Order Invoice (eSignature and Infrastructure)

31. Strategy National solutions will not be replaced Will be aligned with common standards Will be linked through a common infrastructure Common EU Standards and Infrastructure

32. PEPPOL results Transport Infrastructure specifications Operational Infrastructure Since May 2009 PEPPOL Demonstrator Client Reference implementation Middleware implementations Off the shelf Initial versions of Peering agreement Governance model

33. Overall production plan PEPPOL – high level approach 6 months extension Sustainable operation of infrastructure Construction phase Pilot phase Design phase Developing Proof of Concept-pilot Group 2 beneficiaries 1. Group 1 Test Pilot ”Dummy data” Group 3 2. Production Pilot ”Real transactions” 3. 2010-11-01 2011-05-01 2011-11-01 2009-05-01 2008-05-01 2010-05-01 2009-11-01 2012-05-01 EC – financed operations and roll-out 1st proposal – 18,75 mill € - 8 nations 6 months extension 1. Enlarg. proposal – 9,15 mill € - 6 nations 2. ORG Ref Group – 2,8 mill € 18 nations 3. 4. Start transfering Financing

34. E-invoicing adoption Every month of delay counts… If politicians just new… 23 million SME’s have adopted E-Invoicing 3 million public sector E-Invoicing endpoints* 1-2 billion invoices sent to public sector pr. year* >100,000 work years are being saved in public sector pr. year*

35. Call for action Join us Government are implementing >30,000 endpoints from May 1st 2010 Sustainable and robust infrastructure Multilateral Legal framework Mix and match We are prepared to listen and change Connect to the PEPPOL Infrastructure

36. How to get involved Go to Copenhagen October 21st- 23rd Free 3-day conference 21st : Executive day 22nd : Architecture day 23rd : Hands-on day Who should attend? Service providers Public sector organizations ERP & Middleware suppliers Sign up now at http://peppol.eu

37. http://www.peppol.eu

39. Content standards

41. Timeline until launch Beta Implementation Phase Final Beta Implementation Phase Implementation

42. PEPPOL Infrastructure SML = Service Metadata Locator (interface) SMP = Service Metadata Publisher (interface) AP = Access Point (Operated by a Service Provider)