TietoEnator © 2003
Role of e-payments, e-id and e-signatures in business andgovernment services
TKK
25.4.2007Bo Harald
TietoEnator © 2003
Outline
1. TietoEnator briefly2. Innovative banking services needed for the Networked Economy3. Emerging Mega-trends4. End-user centric approach –making it from inventions to innovations5. E-invoicing in EU focus
TietoEnator © 2003
TietoEnator
Born in banking –established in1968 by Union Bank of Finland(now Nordea) and major industryenterprises
One of the world´s leadingproviders of high-value-added ITservices in selected businesssectors
One of the largest IT servicescompanies in Europe
TietoEnator © 2003
TietoEnator
Annual net salesexceeding EUR 1,7 billionListed on Stockholm andHelsinki ExchangesOver 15 000 employeesin more than 25 countriesDeliveries to 100countriesE-banking and e-invoicingprovider to global leaders
TietoEnator operates in: Austria, Belgium, Canada, China, the CzechRepublic, Denmark, Estonia, Finland, France, Germany, India,Indonesia, Italy, Latvia, Lithuania, Malaysia, the Netherlands, Norway,Portugal, Russia, Singapore, Slovakia, Sweden, Ukraine, the UnitedKingdom and the USA
Key Facts >
TietoEnator © 2003
Deep vertical know-how in mass market industries –starting from banking
supporting BANKS in Nordic countries to:become world leaders in e-banking and payment automationexpand business offerings from e-banking to e-business-embeddede-banking - 2nd revolution
AND at the same time with automation, self service and sourcingcut their costs in half
ANDestablish a model for public-private partnership
Experience cannot be copied - ithas to be experienced...
TietoEnator © 2003
Outline
1. TietoEnator briefly2. Innovative banking services needed for the Networked Economy3. Emerging Mega-trends4. End-user centric approach –making it from inventions to innovations5. E-invoicing in EU focus
TietoEnator © 2003
Innovations make the difference –stages 1&2 (Nordea)
• Corporate e-banking (1979)• Private e-banking (1982)• one-time-code log-on (1982)• equity trading in e-bank (1988)• Travel currency (1993)• SMS-banking (1996)• E-loans (1998)• Foreign payments (1999)• WAP-banking (1999)• E-mortgages (2003)• Warrants (2002)• etc
1. Basic banking
2. All products, multi-device,
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Innovations make the difference –stage 3 (Nordea)
• E-id third parties (1992)• Real-time e-commerce-payments (1996)• E-billing b-to-c (1998)• E-signatures 3rd parties (1998)• E-salary (2000)• E-id for public sector (2002)• Finvoice e-invoicing (2003)• Certificate on EMV-card (2004)• Finvoice for documents (2004)
3. “Connecting customers”–reuse (economy of reuse) familiar(economy of repetition) e-bankingtools for 3rd parties–embedded in e-commerceand e-public sector services
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Nordic banks have delivered these -much with support of TietoEnator
Banks have beenserving
BusinessPublic sector
Private Customers
withtraditional tools:
payments,financing, storing
wealth etc:with netbanks
Banks have beenserving
BusinessPublic sector
Private Customers
withtraditional tools:
payments,financing, storing
wealth etc:with netbanks
Mass markettool for:
e-id &e-signaturesE-bank id
IDEALFor STP
Mass markettool for:
e-id &e-signaturesE-bank id
IDEALFor STP
Mass markettool for:
Real-timepayments/paymentsassuranceIDEAL for
STP
Mass markettool for:
Real-timepayments/paymentsassuranceIDEAL for
STP
Mass markettool for:
Payments-integratede-invoicingIDEAL for
STP
Mass markettool for:
Payments-integratede-invoicingIDEAL for
STP
Business going e-global.Public sector becoming e-omnipresent
The Networked Economy -3 more pillars needed from banks
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Example from ESTONIA:
- 0,8m citizens have netbank authentication tools1,0 m citizens have mandatory national ID-card with certBOTH ARE ACCEPTED IN ENTIRE PUBLIC SECTOR
361 000 Estonian citizens used bank-id in March 2005 for tax return(up 100 000 since 2004)
(904 used state issued certificate on smartcard)
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Re-using electronic banking infrastructure in E-services
Electronic banking - the baseE-IDE-ID Online
MessagingOnline
Messaging File TransfersFile Transfers
The bank
Corporate/Public sector
3rd Party authentication services (E-ID)3rd Party authentication services (E-ID)
Web order & pay - e-payments (Online mess.)Web order & pay - e-payments (Online mess.)
Exchange of documents- order, e-invoice, status...(File transfers, messages)
Exchange of documents- order, e-invoice, status...(File transfers, messages)
TietoEnator © 2003
Infrastructure supporting SMEs in the networkedeconomy –”e-only-age”
SMESME
Public sector
Supplier 1
Service
Supplier 2
Customer 1
Customer 2
Customer N
Q: How to solve electronic communication in anefficient way?A: Same for all - just like payments…
e-only! e-only!e-only!
e-preferred!
e-only!
e-only!
e-preferred!
TietoEnator © 2003
Outline
1. TietoEnator briefly2. Innovative banking services needed for the Networked Economy3. Emerging Mega-trends –a few..4. End-user centric approach –making it from inventions to innovations5. E-invoicing in EU focus
TietoEnator © 2003
XML
!
TheSingularity…
SOAPUDDI
ebXMLUBL
RSS RDF
AJAX
OWL
N-tier EAILoose coupling
Semantic Web
Database of intentions
TaggingSOA
WSDLWeb services Grid-computing
BPM
EDASDO
Corp blogs
Long tails
AON
VoIP RfID
IPTV
On-Demand c
AIAny number ofthings happening
Social Web
Web2.0
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Programmable web eclipsed static web in 2006
Flickr beat WebshotsWikipedia beat BritannicaBlogger beat CNNEpinions beat Consumer-ReportsUpcoming beat EviteGoogle Maps beat MapQuestMySpace beat FriendsterCraigslist beat Monster
Why?The losers launched Web sitesThe winners launched vibrantcommunitiesThe losers built walled gardensThe winners built public squaresThe losers innovated internallyThe winners innovated with theirusersThe losers jealously guarded theirdata and software interfacesThe winners shared them witheveryone
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Technological connectivity will transform everything
We are at the early, not mature, stage of technologicalrevolution. …
More transformational than technology itself is the shift in behaviorthat it enables. ..
source: McKinsey 2006
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Start early –let mature –implement gradually
“ICE AGE”“ICE AGE”
“Any hype will do”Early start: “Explorer”Late (re)start: “Panicky follower”
Bo Harald 4.2.07
TietoEnator © 2003
Outline
1. TietoEnator briefly2. Innovative banking services needed for the Networked Economy3. Emerging Mega-trends4. End-user centric approach –making it from inventions to
innovations5. E-invoicing in EU focus
TietoEnator © 2003
… simple insight - the only thingscarce in a world of abundanceis human attention.” Business 2.0 Jan 2000, James
Daly, Editor in Chief
Less time for any one thing... > quest for clarity, simplicity, holisticcollaborative offerings and repeatability in user interfaces
A world with far too many choices, fragmented technology,lack of standards, information overflow...
Only 24 hours available
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Very useful new technology“raining on the plains”
Reality:Severe information overflow (less time for any one thing) and inflexible IT-infra
From inventions innovations
Collaborative servicesneeded to get to newlevels
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My name is Guy
Same Guy
Bank customer Bank corporate customer Utility customer
Citizen in publicsector service
Operator customer Operator corporatecustomer
Corporate utility customer
Enterprise inpublic sectorservice
What makes him move?What holds him back?
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Same Guy
Pankin asiakas Pankin yritys-asiakas Sähköasiakas
Terveyskeskusasiakas OperaattoriasiakasOprin yritysasiakas
Sähkö yritysasiakas
Often used and trusted e-toolsfor e-id, e-signatures, e-payments,payments-integrated e-invoicing
Banks & insurance Utilities
TelecomPublic sector
Same familiar e-tools - embedded
Same familiar e-tools.. Same familiar e-tools - embedded
TietoEnator © 2003
Build ladders for your end-users!Use familiar tools..
Top line growth opportunity as keybusiness driverTop line growth opportunity as keybusiness driver
Cost savings for allCost savings for all
Ready habit and trust - e-bankingReady habit and trust - e-banking
Reuse tools - integrated in corporate andpublic sector services - economy of
repetition (learn once - use everywhere
Reuse tools - integrated in corporate andpublic sector services - economy of
repetition (learn once - use everywhere
Expand further to benefit from economy of reuse,economy of scope and scaleExpand further to benefit from economy of reuse,economy of scope and scale
Add partners for collaborative offeringsAdd partners for collaborative offerings
Standardize further for end-to-end automationStandardize further for end-to-end automation
Bring in next level concepts and technologyBring in next level concepts and technology
TietoEnator © 2003
Accenture: Building the trust Survey 2006
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Not end-user centricEnd-user centric
New levels of technology in use
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Data intensive service work is moved
To machines2. M2m and 3. th2M rfid
Automatic billing,asset management,meter reading, patientmonitoring,housing monitoring,content production
1. To customersselfservice
Network payments,health reporting,voting in the net,production of mediacontents
3. To low cost producers
Global sourcing andnetworking in planning,design andsupport services
No cost Low costDIGIT“A digit is a toe or a finger. “
TietoEnator © 2003
% oftransactions
Time
20%
40%
60%
80%
100%
Towardsreal timecompletion
M2Mdegree
Web usage(self servicedegree)
Transactionalwork STP-
degree
PULL
PULL
Finnish banks have halved their costs!
TietoEnator © 2003
Layer-by-layer Case Nordea
ReuseE-habit and
E-trust
ReuseInvestments
ReuseSalesForces
Can be demanded from banks !
TietoEnator © 2003
Outline
1. TietoEnator briefly2. Innovative banking services needed for the Networked Economy3. Emerging Mega-trends4. End-user centric approach –making it from inventions to innovations5. E-invoicing in EU focus
TietoEnator © 2003
Productivity for Europe with Full SEPA
EU cost saving estimate from e-invoicing: €100 billion/year28 billion invoices + billions of other documents “
Finnish State Treasury:cost estimate for incoming manual invoice €30, 8€/outgoing
Electrolux:Electrolux stated a cost of €50 / paper invoice 1999...
Finnish Employers Federation:annual saving from b2b e-invoicing at 2,8bn€(Finland 1/66th of EU GDP..)
European Association for Corporate Treasurers (EACT):is demanding actions from banks and software providers - EU 243bn€costsaving estimate
Something REAL for Lisbon -that only banks can deliver...
TietoEnator © 2003
Significance of SMEs –Case: Enterprises in Finland99% are small –will join only when banks provide tool
1,3 mill300 bill €232,000TOTAL
38.3%47.6%0.2%Large (>249)
17.6%19.1%1.0%Medium (50-249)
19.5%15.6%5.7%Small (10-49)
24.6%17.6%93.1%Micro (1-9)
PersonnelTurnoverNumber of Co'sSize / Personnel
Source: Statistics Finland,Finnish Enterprises in2004
EU (=66 times Finland) 15,312,000 19,800 bill €
Significance of SMEs –Case: Enterprises in Finland99% are small –will join only when banks provide tool
Source: Statistics Finland,Finnish Enterprises in2004
EU (=66 times Finland) 15,312,000 19,800 bill €
Have automated transactions with proprietory EDI –mostly with other large enterprises
Mostly un-automated 60% of all invoices
TietoEnator © 2003
E-invoicing dilemma
SmallerBusiness
Volvo:”only e-invoice
allowed ! ”
Municipality:”send e-invoice !”
SYSTEM 1Private customers:”pls send e-invoice
and directdebit e-notification !”
Retail:”e-invoice !”
SYSTEM 2
SYSTEM 4
SYSTEM 3
We needONE way to ALL !
Just like payments!!
4 differentapplications -not possible
TietoEnator © 2003
Invoices to ALL customers –send to all in one channel–JUST LIKE PAYMENTS
National filecustomers
Foreign filecustomers
Netbank customersInvoicer: file or singleinput in netbank (file ofone) –same software withALL Banks –Finland>Sweden>Nordic
Other bankJUST LIKEPAYMENTS
Other banks’customers
Non-e customersor non-e-invoicingbank customers
Printing PartnerNo investments or softwareinstallations for small customers !!!
(+otheroperators)
Corporatecustomers /
non-standardformats
Any bank
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BuyerBuyer
SupplierSupplier
Order / e-signatureOffer
Statements - tax etc
Payment
Demand estimate
Payment Guarantee
Direct debit adv
e-Invoice
Invitation to tender
Deviation info
Delivery GuaranteeDelivery Information
Account statement
Payment Assurance
From e-invoicing to all messaging - easy XML-based horizontalAutomation and vertical Reconciliation
Only in e-banking for17 million smallbusinesses in EU
100bn€
Ordersposted toSeller’saccountsand backto own
Invoicesposted toBuyer’saccountsFull
SEPA
TietoEnator © 2003
TietoEnator © 2003
The future is not plannednor prognosed
Thank [email protected],
http://boharald.blogspot.com
It is created !
TietoEnator © 2003