Real-Time Economy Research at HSE Information Economy at Aalto-University boat seminar 23.10.2008 Assistant professor Esko Penttinen
What is Real-Time Economy (RTE)? Real-Time Economy is an environment where transactions of all sorts are digital, increasingly generated automatically and completed in real-time without store and forward processing. Photo: Sachyn
Stairway to REAL-TIME ECONOMY The Future Economy BETTER SERVICE BETTER PRODUCTIVITY BETTER JOBS BETTER ENVIRONMENT REAL-TIME ECONOMY Enterprise Risk Mitigation Fully Integrated Accounting Automated accounting Full Value Chain Digitized Messaging Payments and e-banking integrated e-invoicing 3 rd generation e-banking. Connecting Customers - Functionality 2013-2010- 2009-2006- 1998-1992- 1982- SME and private e-banking (Penetration in Finland 2007 SMEs 100%, private 85%, widest e-habit and e-trust) 1970s Payment reference system. 1979 1 st corporate e-banking. 1940-60s Bank giro system for payments, salaries, direct debit etc. Page 3
Research strategy IV. Enterprise Risk Mitigation III. Fully Integrated Accounting 1.1.2009 30.6.2010 II. Full Value Chain 1.1. - 31.12.2008 I. Full SEPA 20.10.2006-31.3.2008 2007 2008 2009 2010
Positioning the RTE projects Enterprise Risk Mitigation (ERM) Buyer Fully Integrated Accounting (FIA) Full Value Chain (FVC) Invitation to tender Offer Order Payment guarantee Delivery guarantee Delivery information Deviation info Statements delivery, tax etc Direct debit adv Invoice Payment assurance Payment Account statement Full SEPA Seller Finance and risk management Page 5 service providers
Electronic invoicing, definition As a concept, electronic invoicing is nothing new EDIFACT in 1970s Here, electronic invoicing defined as invoices transmitted through open standards, e.g., Finvoice or TEAPSSXML standards in the Finnish context PDF-files sent as attachments in e-mails not considered as electronic invoicing in our study
einvoicing Penetration Is Still Low in Europe but banks have made it happen in the Nordics Source: Billentis / Bruno Koch (www.billentis.com), 2007 2007-09-24 Finnacial Service Hub
Volumes Year of initiation of electronic invoicing Volumes of Incoming invoices Volumes of Outgoing invoices Organization Incoming Outgoing Total Electronic Total Electronic Finnair [1] Gradually one business unit at a time, starting in 2000 for travel agencies Gradually one business unit at a time, starting in 2002 for travel agencies 323,000 5%, 17,000 986,000 32%, 315,000 Kuusakoski 2006 2006 45,000 25%, 11,250 30,000 2-3%, 400 Lindström 2003 2003 28,800 25%, 7,200 540,000 36%, 194,400 Novart 2006 n/a 33,475 28%, 9,526 To be implemented in 2008 Oriola-KD 2004 2004 10,000 10-15%, 1,000 350,000 18%, 63,000 TietoEnator 2005 2005 93,000 53%, 49,500 101,300 34%, 34000 City of Helsinki 2002 2006 (2007 to consumers) 560,000 42%, 240,000 50,000 [2] 25%, 12,500 City of Tampere 2005 2008 250,000 34%, 85,000 To be implemented in 2008, 1.4 million invoices to consumers and businesses
Research 2008 7 BSc theses done MSc theses (done) Haussila, T. (2008) Operators' Value Creation in Business to Business Electronic Invoicing. MSc thesis at HSE. Hielkema, H. (2008) Real -Time Economy and Taxation A case study of the collection of earned income tax. MSc thesis at HSE. Lehtimäki, H. (2008) Factors that enable or hinder the adoption process of electronic invoicing Case Novart. MSc thesis at HSE. Salomäki, T. (2008) The impacts of e-invoicing on buyer-seller relationships in b2b markets Case Lindström. MSc thesis at HSE. Sipilä, T. (2008) Miten nopeuttaa sähköisen laskutuksen käyttöönottoa Suomessa? How to promote the implementation of electronic invoicing in Finland? (In Finnish). MSc thesis at HSE. MSc theses (under construction) Lempinen, H. Building metrics for assessing the business value of information technology - case electronic order-to-pay process, ETA alku 2009 Vähätiitto, J., Managing the Transition of Invoicing Process to Business-to Consumers E-invoicing and Analyzing the Consumer Experience. MSc thesis at HSE, ETA alku 2009 Konferenssipaperit Penttinen, E. & Hyytiäinen, M. (2008). The Adoption of Electronic Invoicing in Finnish Private and Public Organizations. European Conference in Information Systems (ECIS), Dublin, Ireland, June 8-11 2008. Penttinen, E., Hallikainen, P. & Salomäki, T. (2009). Impacts of the Implementation of Electronic Invoicing on Buyer-Seller Relationships. Hawaii International Conference on System Sciences (HICSS), Waikoloa, Big Island, Hawaii, USA, January 5-8, 2009. Penttinen, E., Salgaro, A., & Haussila, T. (2008). How do electronic invoicing operators create value? Empirical evidence from Finnish and Italian operators. WeB pre-icis conference, Paris, France, December 13-17, 2008. Raportti Penttinen, E. (Ed.) (2008). Electronic Invoicing Initiatives in Finland and in the European Union Taking the Steps towards the Real-Time Economy. Helsinki School of Economics series B-95. Kuluttajatutkimuskysely, ensimmäinen kierros kesäkuu 2008, toinen kierros joulukuu 2008 (Timo Saarinen, Anssi Öörni, Miira Juntumaa) Kysely yrityksille sähköisen laskutuksen käytöstä marraskuu 2008 (Atso Andersen, Esko Penttinen)
Publicity (press and presentations) Keynotet (Esko): Opuscapita syysseminaari keynote 140 hengelle, Tallinna 26.9.2008, RTE ja sähköinen laskutus NOKIOS konferenssi 300 hengelle, Norja 17.10.2008, RTE ja sähköinen laskutus Muut esitykset ja tapahtumat Tieturi ERP tapahtuma 2008 (Virpi Tuunainen) Hse Executive Education kaupan ohjelma 2008 (Virpi Tuunainen) Lukuisia esityksiä konferensseissa (ECIS, KISS etc), messuilla (RTE Summit, leading lights etc.), HSE: tutkimusseminaareissa, HSE:n laivaseminaareissa yms Kansainväliset kontaktit Tutkijavierailu HSE:lla Alessandro Salgaro, Politecnico di Milano, Italia Lehdistö: Taloussanomat: Verkkolaskusta tulee vietituote (30.10.2007) (in Finnish, interviewed Virpi Tuunainen) HSE Avista: Seuraavaksi vuorossa e-laskutus (2/2007) (in Finnish) HSE Avista: Reaaliaikaista tutkimusta (2/2007) (in Finnish, columnist Esko Penttinen) HSE Newsletter: Real-Time Economy competence center (13.11.2007) (in Finnish, Esko Penttinen) Yrittäjäsanomat: Reaaliaikaisesta taloudesta hyötyvät kaikki (1/2008) (in Finnish, interviewed Maria Hyytiäinen, Esko Penttinen) Tietoviikko: Diginatiivi ei paperilaskuja pyörittele (5.5.2008) (in Finnish, interviewed Maria Hyytiäinen, Esko Penttinen) Tietoviikko: Sähköinen lasku säästää metsää (9.5.2008) (in Finnish) Intressi: Sähköinen laskutus - mikä se on? (3/2008) (in Finnish, interviewed Jyrki Wallenius) Intressi: Sähköinen laskutus ottaa vauhtia paperilaskut jäävät pian historiaan (In press) (in Finnish, interviewed Esko Penttinen) Verkkosivut RTE sivut HSE:lla (www.hse.fi/rte), Real-Time Economy Community (realtimeeconomy.net)
RTE Network Tekes EK Suomen yrittäjät VM Policy makers Dimes Suomen pankki Nordea bank Sampo bank REAL-TIME ECONOMY NETWORK Business people Journalists OP Service providers Customers Consumers TietoEnator Students Tieke ry Research & Teaching TKK HSE
Building the global competence center INNOVATION UNIVERSITY -global competence center EC e-invoicing expert group UN/CEFACT Enterprise risk mitigation Nokia Nordea m-payments m-ticketing Banks E-invoicing operators Fully Integrated Accounting Full Value Chain TietoEnator SMEs Trust Services m-banking SMEs Full SEPA HSE REAL-TIME ECONOMY TKK MOBILE FINANCIAL SERVICES