The international E-Invoicing market development and the role of key stakeholders

Transcription

1 The international E-Invoicing market development and the role of key stakeholders Forum Elektronicznego Fakturowania October 23 rd, 2012 Bruno Koch

2 Overview: Key stakeholders for E-Invoicing Large invoice issuers and recipients Issuers with advanced on-boarding methods, incentives and penalties Recipients with the power play as large buyers Regulators and tax authorities European Commission & national regulators push the digital collaboration between suppliers and buyers Countries in Latin America, Asia and South Europe defined models to combat the tax evasion with (near) real-time audits Solution and Service Providers Market communicators Industries with high invoice volume Issuers: Telco, Utility, Card, Media, Logistics, Healthcare, Public Sector, Insurance Recipients: Retail, Healthcare, Public Sector 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 2

3 Development of the European E-Invoicing Market Recipient segment Annual bill & invoice volume estimated to be at least Estimated electronic proportion of total volume in 2012 Estimated annual volume increase of electronic bills/invoices Consumer 17 billion 12 % 25 % Business & Government 16 billion 18 % 30 % Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 3

4 Market Penetration 2012 (Electronic share of total invoice/bill volume) B2B/B2G/G2B B2C >30% 10-30% <10% Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 4

5 Large invoice issuers and recipients as innovator 0.1% 7% 8.3% 1.7% 1.3% 2.5% Consumers B2B/B2G/G2B Large companies (250+ employees) 11.6% % B2C 2 Medium sized companies ( employees) 10% 3 2 5% Small/Micro companies (1-49 employees) 7.5% 1.7% Source: Billentis & PostFinance; structure is valid for Switzerland and likely many other countries Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 5

6 Different preferences of large and small companies in German speaking countries Source: ibi research 2011, Elektronische Rechnungsabwicklung einfach, effizient, sicher Teil III: Fakten aus der Unternehmenspraxis ( Why these (irrational) preferences? Most market participants and decision makers know PDF, but have no idea, what EDIFACT, EANCOM or XML mean. Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 6

7 Europe: used formats today and prediction 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pure structured data EDI, XML Pure Images PDF, Hybrid PDF + XML The German Multi-Stakeholder Forum thinks actively about an extensive usage of PDF/A-3 with embedded UN/CEFACT CII data. 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 7

8 Current focus of regulators and tax authorities Tax Authorities Tax evasion, audit LATAM, Asia Supplier Collaboration Europe Buyer Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 8

9 Bill of Lading 3 2 Copy 5 GRN Real-time Audit Example from Brazil Supplier Invoice XML data 1 2 Digitally signed invoice including 2D barcode Tax Authority Delivery 4 Buyer Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 9

10 EU initiatives in Europe European Commission pushes/supports many activities within the Digital Agenda, e.g. Improve legal environment Promote the digital participation of SMEs Promote an E-Invoice standard model European Multi-Stakeholder Forum Other supportive initiatives Directive 2011/7/EU on combating late payment; to be implemented into national law by March 2013 Revision of the E-Signature Directive 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 10

11 European Solution and Service Providers educate and push the market E-Invoicing solution providers 200+ application providers for bilateral exchange among users 500+ E-Invoicing network operators (Service Providers) Some of them employ 50+ sales and account managers Assuming an average of 5-7 sales / provider, they are totalling up to 5,000 market influencers The number of ERP and accounting software vendors is estimated to exceed 10,000; many of them do not communicate much/sufficiently 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 11

12 Market communicators Shortcomings Quantity: No or very little communication for organisation internal stakeholders as well as for external trading parties Quality: Often, the messages are inappropriate for the target audience and confuse the stakeholders; problem focussed discussions dominate and success stories are rare The better way Communicate at least twice as often as you believe would be necessary; one can never over communicate Use a clear vocabulary / glossary Practice an encouraging communication style 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 12

13 The industries with the highest volume Issuers: Utility 2% Others 17% Retail 6% Telecom 1% Credit Cards 1% Logistics 6% Insurance 2% to Corporates Government 7% Utility 2% Media 3% Insurance 5% Credit Cards 3% Healthcare 7% Media 3% Government 2% to Consumers Others 24% Telecom 9% Recipients: Retail (10%), Healthcare (9-15%) and Public Sector with 9-12% of markets invoice volume Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 13

14 Public sector is responsible for 15-18% of all purchases made in a country % of all companies are suppliers for the public sector and send invoices to its administration. 100% of all enterprises and households receive invoices from the public sector. 05/11/2012 page 14

15 Degree of optimization Public Sector as Catalyst for Mass Market Automate the full Supply Chain including e-procurement Pressure to trading parties up to an obligation for E-Invoices All administrative units are enabled to process electronic invoices Parts of the own administration are enabled for the voluntary usage of electronic invoices Optimized rules Defines strict rules mainly affecting users outside the public sector any BE NL FR CH AT DK 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 15

16 Some public sector objectives in Europe Projects with high ambitions for the public sector as E-Invoicing user, e.g. Austria (Invoices to the national administration have to be 100% electronically from 2014) Belgium (objective: 50% in 2015) Denmark (mandatory since 2005) EC: Adoption of E-Invoicing in all 48 Directorate-Generals and Executive Agencies by January 2013 Finland is already close to 100% Norway (mandatory since mid 2012) The Netherlands (objective: 80% in 2014) Switzerland (100% of all federal levels shall be enabled for In- and Outbound E-Invoicing in 2016) 05/11/2012 Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 16

17 Public Sector Saving Potential Country Minimum public sector saving potential (million Euro) Country Minimum public sector saving potential (million Euro) Austria 600 Italy 3,000 Belgium 900 Spain 1,800 France 4,200 The Netherlands 1,200 Germany 6,500 United Kingdom 4,400 Source: Billentis Market Report 2012 Proportions within Public Sector Denmark Switzerland 12% Federal Administration 5% 14% States, Regions 68% 74% Municipalities 27% Sources: Federal Administrations of Denmark and Switzerland Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. Seite 17

18 Very active stakeholders are key for the success of E-Invoicing! Still wondering how others rapidly achieve very high E-Invoicing penetration rates and savings? Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 18

19 Soon, E-Invoicing stakeholders from around the world will meet in Poland Would you like to be informed about the E-Invoicing market development and the international event taking place in Warsaw? If so, please subscribe the free bi-monthly newsletter: Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 19

20 Bruno Koch International E-Invoicing Event: EXPP Summit Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. Seite 20

21 Billentis in brief Highly specialized consulting company: E-Invoicing, optimisation of Purchase-to-Pay and Financial Supply Chain; More than 150 customers in 50 countries Market analyst; issuer of market reports and newsletters Founder & Chairman of an international congress with particpiants Merger & Acquisition; consulting, enabler for expected market consolidation Company founded in June 1999 B. Koch (8 years PricewaterhouseCoopers, 4 years Credit Suisse, 2 years SIX PayNet) page 21