PEPPOL is an EU co-funded project CIP-ICT PSP-2007 No 224974 PEPPOL Project Sven Rasmussen Chief Adviser Agency for Digitization, Denmark

PEPPOL is an EU co-funded project CIP-ICT PSP-2007 No 224974

www.peppol.eu

PEPPOL Project

Sven Rasmussen

Chief AdviserAgency for Digitization, Denmark

Email: [email protected]


PEPPOL impact

How PEPPOL impacts the market:

Setting the standards for eProcurement supported by EU governments

Promoting the development of low-cost standardised and interoperable eProcurement solutions

Connecting eProcurement communities in Europe to an open PEPPOL exchange document infrastructure

As adoption increases, the IT industry will be encouraged to embed the PEPPOL standard specifications in packaged software solutions and services


PEPPOL Components


Connecting eProcurement Islands


Architecture Overview


Pre-award Procurement Process


Post-award Procurement Process


Barriers


Solutions

PEPPOL is an EU co-funded project CIP-ICT PSP-2007 No 224974Page 10

PEPPOL Transport Infrastructure Service

AP AP

PEPPOL BIS

PEPPOLTransport

Infrastructure Agreements

BusDoX EndPoint

EndPoint

Requirem

ents

Requirem

ents

Requirem

ents

Requirem

ents

Req

uire

men

ts

Req

uire

men

ts


How will PEPPOL reach the SME ?

•The market for electronic procurement is an example of “the long tail” phenomena•By lowering the Cut-Off point PEPPOL solutions will become economically feasible to implement in the long tail

Customers, ranked by volume

Number of documents exchanged

with a customer

Cut-off point!PEPPOL lowers the Cut-Off point


Leverage community based eInvoicing

Existing implementations are based on customized connections

Bi lateral or within a trade community

Require setup and customization based on detailed specifications

High setup cost only justified by high volume of trade

Invoicing needs to be more like email

Single setup – works for all

Standardized technical agreements – works for all

Standardized documents, one invoice format – works for all my invoices

Low setup cost justifies engaging allPage 12


Setting the policy for eInvoicing

Enforcement, mandate by law

Set a date for public entities to be ready

Force suppliers to comply (legal obligation)

Enablement

All public entities MUST be able to communicate electronically

Engage suppliers through contracts and procurement community engagements

Pros / cons:

Enforcement is quick, effective and promises greater savings

Creates lot of resentment among suppliers (business case varies)

Enablement is slower

Buyers must manage manual and electronic processing longer

Mainly larger suppliers will participate

Page 13


Enable v. Enforce ?

Recommendation: needs to be balanced:

Start with enablement

Invest: Enable all public entities – fix a date

Engage: All large supplers

Enforce: all with contracts – all contract up for renewal

Aim for full enforcement

Announce intention of legislation: set a date – stick to it

Current activities in Europe

Denmark was the first – enforce by law

Norway, Sweden follow – enablement

Similar activities underway in most EU countries

Page 14


Support is the keySetup the standards

Specifications of content

Code lists and identifiers

Provide guidelines, testing guidelines, example, validation web site

Support organization

Hotline, FAQ, mailing lists, courses

Release strategy and Life Cycle Management

Make planned changes visible, provide time periods of stability

Governance must have business focus

Stability is more important than technical perfection

Involve standardization authority

Set up venue for consultation with industry and interested parties

Page 15


Engage Service Providers and ICT Solutions vendors

Encourage providers to invest

Authorities must provide stability and market push so they can justify investment

Engage service providers

support transport solutions

Engage software providers

Provide build in support in software solutions (off the shelf solutions)

Integration is basis for savings

Option: Web page for entering invoices

Very successful in Denmark

The supplier is responsible for invoice archivingPage 16


What is a PEPPOL BIS ?

PEPPOL BIS is a set of formal requirements for ensuring interoperability

The BIS addresses the following:

Business process as choreography of document exchange.

Semantic models of the documents

The semantic models describe :

Data model, actual data exchanged

Business rules governing the content

The models can be reused in different business processes (profiles)

The semantic models can be mapped to different syntaxes.

UBL 2.0 (UBL 2.1 is planned by CEN BII2)

UN/CEFACT syntax Page 17


How are the BIS specifications supported?

High level deliverablesSpecifications

Implementation Guidelines

Technical deliverablesSyntax mapping to UBL 2.0

Schematrons – for validation of business rules

Validation Web site – for testing documents

SXLT Stylesheets – for presentation of content

Testing guidelines & test documents, test cases

Page 18


19

PEPPOL Post-Award Profiles

PEPPOL BIS: Business Interoperability Specifications

Specifications of interoperability: PEPPOL BIS 1a – Catalogue only

PEPPOL BIS 3a – Basic Order Only

PEPPOL BIS 4a – Basic Invoice only

PEPPOL BIS 5a – Billing (includes Credit Note)

PEPPOL BIS 6a – Procurement


Learnings and conclusions

The savings is NOT in paper, stamp and envelop or handling of paper

Two major areas of return are:

Standardized reusable modules (solutions) - off-the-shelf:

Invest once, reuse for all

Your solution works for all your customers (well ... most)

Your company is not unique, you can use standardized solutions

We use off-the-shelf databases, accounting systems, email, etc ...

Reengineering of in-house processes

Automation in handling of documents

Clean up of processes

Clean up information: Removal of errors / inconsistensies / misleading info

Page 20


Benefits

The PEPPOL BIS Technical specification can work as technical part of EDI agreement

Reusable investment

One setup, can be reused for all your customers

80 / 20 rule applies.

Top x percent of your customers account for over 80% of documents

The rest of your customers (over 99%) are in the long tail with less than 20% of documents

The long tail is where the investment pays off

Keeps cost at minimum, cost of establish, connect, operate and maintain

Lowers barries for entry – for all

Opens up trade within the EU


OpenPEPPOL responsibility Hierarchy

OpenPEPPOL steering comitee

Pre Award Coordinating authority

E-signatureCoordinating authority

Post Award Coordinating authority

Regional Authorities

SMP / AP providers /….

Governance – Politics - strategy

Execution - realisation


ContractingAuthority

EconomicOperator

AP

SMPSMP

SML

AP

CoordinatingAuthority

RegionalAuthority

Regionaldomain

Regionaldomain

PostAward eProcurement Community

Provides European wide governance for:the PEPPOL Technical Standards

the PEPPOL Service Specifications

the PEPPOL SML

the PEPPOL Agreements

Provides regional governance for:the implementation and use of the transport infrastructure

the legal framework for specific AP and SMP agreements

specific requirements applicable within a domain


TIA Framework

“… terms and conditions under which the Parties shall provide governance for the PEPPOL Transport Infrastructure.”

A model agreement regulating the “… terms and conditions under which: the PEPPOL AP Provider shall provide the required PEPPOL AP Services; the PEPPOL Regional Authority shall ensure that the services provided by the PEPPOL AP Provider are provided and maintained in a reliable, professional and state of the art manner, in compliance with all applicable laws and all relevant technical specifications, to ensure consistency across the full PEPPOL Transport Infrastructure .”

A model agreement regulating the “… terms and conditions under which: the PEPPOL SMP Provider shall provide the required PEPPOL SMP Services; the PEPPOL Regional Authority shall ensure that the services provided by the PEPPOL SMP Provider are provided and maintained in a reliable, professional and state of the art manner, in compliance with all applicable laws and all relevant technical specifications, to ensure consistency across the full PEPPOL Transport Infrastructure.”

PEPPOLCommunity Agreement

PEPPOLAP

ProviderAgreement

PEPPOLSMP Provider

Agreement

CoordinatingAuthority

I.e. PEPPOL GB

RegionalAuthorityE.g. VM

SMPProvider

E.g. ITELLA

APProvider

E.g. ITELLA


Business sustainability

ICT sustainability

Governance sustainability

Recruitment sustainability

Financial sustainability

Page 25

Sustainability Dimensions


LTS-roadmap


OpenPEPPOL Collaboration landscape

Page 27

TO DAY MAY 1st. 2012 Jan 1th 2013 Dec 31th. 2015 Dec 31 th. 2019

DG DIGIT/ISA (Operations)

Other entities for PEPPOL operations (e.g. beneficiaries)

DG INFSO - BCSS

Standardisation Bodies (OASIS, CEN, etc.)

PEPPOL

DG INFSO - CEF

OpenPEPPOL

…..

DG MARKT (public procurement directive & e-tendering expert group.)

…..


OpenPEPPOL timeline for political drivers

Page 28

TO DAY MAY 1st. 2012 Jan 1th 2013 Dec 31th. 2015 Dec 31 th. 2019

Governmental Driven

Industrial Driven

Establishment Realisation Institutionalisation Steady state Marked driven


THANK YOU FOR YOUR ATTENTION

Sven Rasmusen

Chief Adviser

Agency for Digitization, Denmark

[email protected]

PEPPOL.EU

www.linkedin.com/groups/PEPPOL-PanEuropean-Public-Procurement-Online-1876735

Video: http://www.youtube.com/watch?v=I_mkMJawvfY


eProcurementwithout borders in Europe

www.peppol.eu

Documents

PEPPOL is an EU co-funded project CIP-ICT PSP-2007 No 224974 PEPPOL Project Sven Rasmussen Chief Adviser Agency for Digitization, Denmark