Experiences of a cross-country harmonization
project.
Case: e-Invoicing in EU
JCI Cosmopolis Intercultural Leadership SeminarHelsinki
27.10.2012Bo Harald
© 2012 Tieto Corporation
Agenda1. European challenges2. European solutions3. e-invoicing – not a goal in itself – but a platform4. EC Expert Group on e-Invoicing 2008-105. Experiences
© 2012 Tieto Corporation
1. European challenges• Expensive welfare state models• Too much debt • Low growth• Fragmented markets, practices and legislation• Change resistance instead of innovation drive• Grey economies• Demography
© 2012 Tieto Corporation
2020: 35millionsmaller
25 m larger
EU workforce nosediving!
12.04.2023Bo Harald
© 2012 Tieto Corporation
2. European solutions• Spend less = borrow less & tax less• Drive innovations• Drive harmonization – create true single market• Collect taxes (VAT Gap 118,9bn) • Improve productivity
© 2012 Tieto Corporation
3. e-Invoicing – not a goal in itselfBut a platform for:1. Productivity improvements (250bn/year) – structured (not
PDFs) e-invoice data lay the foundation for automation of payments, accounting, cash flow estimates, VAT-reporting, invoice financing etc
Especially important for the SME segment (60-65% of turnover and employment) – cut their administration cost in half
© 2012 Tieto Corporation
Service offerings for SMEs – 0-investment, 0-ITskill
Service provider network – agree with one – send to all
E-invoicing dominating mode = platform for next steps
Funda-ment
Procure-to-Pay/Order-to- Cash domain
Imple-ment Invoice receivers to set deadlines for unstructured invoices
Invoice senders to charge for paper
Payment-to-Accounting domain
Risk mitigation tools
Automated invoice financing
Payment automation
Same tool for E-rfp, e-offer, e-order
Automated real time cash flow estim
Automated reconciliation
Automated accounting
Automated auditing
Real time VAT (on payment)
Unified reporting codes
© 2012 Tieto Corporation
3. e-Invoicing – not a goal in itselfBut a platform for:1. Productivity improvements (250bn/year) – structured e-
invoice data lay the foundation for automation of payments, accounting, cash flow estimates, VAT-reporting, invoice financing etc
2. Real time liquidity management 3. Lower financing costs 4. Major improvement in risk mitigation5. Release staff for productive work6. Cost-efficient weapon against grey economy7. Cut CO2 with 10m tons/year 8. Major step towards a single market
© 2012 Tieto Corporation
4. EC Expert Group on e-Invoicing 2008-10
• Task: Make harmonized e-invoicing happen – fast• 31 members from most EU-countries and different sectors,
15 EU-officials• 24 full working days, innumerable telcos and hours of work• Result: - Report making migration necessity clear- new VAT-directive,- ISO20022 standard,- multistakeholder forums in all MSs- etc
© 2012 Tieto Corporation
5. Diversity - Experience from chairman’s point of view (1/2)
Intercultural issues:- Different terminology (same term for different things and
different words for same things)- Different starting points (e-banking – ingrained in “culture” in
some countries)- Different sectors (service providers, banks, large
enterprises, SMEs, officials)
© 2012 Tieto Corporation
5. Diversity - Experience from chairman’s point of view (2/2)
Intercultural issues:- Different agendas – some hidden - Different attitudes (good for society at large – versus
lobbying)- Different attitudes towards the state- Different attitudes towards EU and the single market- Still – we made it - a unified report:
© 2012 Tieto Corporation
Old habits die hard.. Time to stop bloodletting!
Stop de-electronizing information!
Unify Europe – with global standards
Liberate SMEs for Business
Create a real EU Innovation Culture
SME
Why Is Innovation Needed?
Improveproductivit
y
Decreasecosts
Create customer delight
Innovation is the single most important factor for long-term business success
Continuous innovation is the only way to create truly new value to customers
Innovation means new or improved products, services & business processes making it possible to:
© 2012 Tieto Corporation
The future is not plannednor prognosed
Thank [email protected],
http://boharald.blogspot.com
It is created !
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