EXPP-SUMMIT 2009AmsterdamSeptember 21st 2009

Governments as innovators and market drivers

Mikkel Hippe BrunTechnical Director, PEPPOLChief Consultant, Danish IT- and Telecom Agency

Email: mhb@itst.dkTwitter: @hippebrun

Gartner’s Hype Cycle for E-Procurement

Time

Slope of EnlightenmentTrough ofDisillusionment

Peak of Inflated Expectations

InnovationTrigger

Plateau ofProductivity

Ex

pe

cta

tio

ns

E-Invoicing E-Procurement Network

SaaS Procurement Applications

E-procurement

Supplier Portals

Extended Purchasing Suites

Web-to-Print Applications

Procure-to-Pay Solutions

Business Process Networks

Multienterprise Business Process Platform

Selected applications from: Hype Cycle for Procurement Applications, Gartner 2009

2 to 5 yearsless than 2 years 5 to 10 years

Years to mainstream adoption

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?

Imagine 10 years from now...

Are these savings on e-invoicing equal to a competitive advantage in 2019?

NOCompetitive advantage implies that:

We reach mainstream adoption ahead of the curve

We have gone much further in digitizing the full procurement chain

E-Invoicing Product Life Cycle

Maturity

Mainstream adoption

EARLY

GROWTH

LATE

GROWTH

INTRODUCTION

Vo

lum

e

Time

Mainstream adoption in 10 years

Vo

lum

e

Maturity

Mainstream adoption

23 mill.

Time

10

ye

ars

5 y

ea

rs

8 y

ea

rs

Mainstream adoption in 5 years

Vo

lum

e

Maturity

Mainstream adoption

23 mill.

Time

10

ye

ars

5 y

ea

rs

4 y

ea

rs

Organizational

Legal

Semantic

Technical

Barriers

Org A

Org B

• Business requirements vary a lot• No agreed upon businesses processes• Huge difference in business models

• High barriers in previous legislation• Member states implement

directives differently

• Two dominating standards• OASIS UBL and UN/CEFACT CII

• Incompatible technical solutions• Shared infrastructure components

are missing

Removing barriers

Private sectorThe private sector can provide good solutions

E.g. banks, VAN’s and other Service Providers

A competitive environment fosters innovationE-government services are lagging behind

Government should stay out“We do not want this creeping public sector standardization”

Removing barriers

Public sectorGovernment is the single largest buyer in the EU

Approximately 1,800 Billion Euro

Government should be a locomotiveFor standardization

For establishment of infrastructure

Government should raise the barE.g. make E-Invoicing mandatory

Governments have historically solved large scale market coordination failures

E.g. ARPANET, GSM

Organizational

Legal

Semantic

Technical

What can be done to the barriers?

Org A

Org B

• Mandate minimal business processes• Set-up a well defined governance

process

• Multilateral peering agreement• Loosen technical requirements• Align MS implementation of directives

• Mandate a minimal set of data-elements

• Accept syntax mappings will co-exist

• Mandate a transport standard• Establish and fund core

infrastructure

Solution?

Use Tax Payers Money to

Establish the core infrastructure services Secure funding

Set up a governance frameworkShared by public and private sector

Step backAllow the private sector to innovate

The PEPPOL pilot

Consortium member

Enlarged consortium

Reference group member

Regional node

20 beneficiaries from 14 countriesTotal budget: ~30 M€

Project start up: 1 May 2008, duration 42 months

A Pilot A under the CIP program

PEPPOL vision

Pan European exchange of business documents between any private company and any EU governmental institution should be as easy as sending emails.

VCD

Catalogue

Order

Invoice

(eSignature and Infrastructure)

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

PEPPOL results

Transport Infrastructure specifications

Operational InfrastructureSince May 2009

PEPPOL Demonstrator ClientReference implementation

Middleware implementationsOff the shelf

Initial versions ofPeering agreement

Governance model

PEPPOL – high level approach

2009-05-01

2008-05-0

1

Construction phase

2011-05-01

2010-05-0

1

2012-05-01

Pilot phaseDesign phase

Group 1 Group 2 beneficiariesDeveloping Proof of Concept-pilot

2009-11-0

1

Test Pilot”Dummy data” Group 3

6 monthsextension

Production Pilot”Real transactions”

1st proposal – 18,75 mill € - 8 nations

Enlarg. proposal – 9,15 mill € - 6 nations

ORG Ref Group – 2,8 mill €18 nations

6 monthsextension

1.

2.

3.

1.

2.

3.

4.

Sustainable operation of

infrastructure

EC – financed

operationsand roll-out

2011-11

-01

Start transfering

Financing

Overall production plan

2010-11-01

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*

Call for action

Join usGovernment 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

How to get involved

Go to Copenhagen October 21st - 23rd

Free 3-day conference21st : 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

http://www.peppol.eu

PEPPOL Infrastructure

Interoperability through common• Transport standards• Content standards• Business process standards

Did you know?

E-Invoicing ? years

Timeline until launch

November2009

1.0 specs Draft

December2009

1.0 specs Final

January2010

February2010

1.0 tools

ImplementationConference

Workshop

March2010

April2010

May2009

0.8 specs

0.8 tools

Workshop

June2009

July2009

August2009

September2009

0.9 specs

October2009

0.9 tools

MiddlewareConference

WorkshopBeta Implementation Phase

Final Beta Implementation Phase Implementation

PEPPOL Infrastructure

SML = Service Metadata Locator (interface)

SMP = Service Metadata Publisher (interface)

AP = Access Point (Operated by a Service Provider)