PEPPOL and what the president of the digital world would obligate 20161003 v2

© All Rights by InCoPro BVBA BE 0 877.807.636 jos.feyaerts@InCoPro.be +32 473/38 16 13
The onboarding of small business partners to the E-
invoicing High Way: facilitate the crowd building
based on my presentation on the
Berlin: 17th annual VAT Summit April 2016
1
InCoPro: Design for Margin (D4M)
A guide to the digitalization of your Financial Supply Chain and Supply Chain Finance
Il était une fois à l'entrée du Monde Facture
Electronique un législateur au regard un peu
triste Il attendait de moi une phrase magique.
Je lui dis simplement : Si j'étais Président
Si j'étais Président de la République j'enverrais
mes factures en digital par PEPPOL et les jours
de facturation mensuel on irait en pique-nique
On ferait des trucs marrants si j'étais Président
Parodi on: CHANSON SI J'ETAIS PRESIDENT
– GÉRARD LENORMAN: https://youtu.be/0iPR_-ZXOfs

Digitalisation should focus on
the process, not the technology
The digitalization of
financial supply chain
was driven by
technology providers
for far too long.
People
Network
Tools
Process
Collaborative
networks
2

The new era of accounting platforms is
built on:
3
Platformization
Collaboration
Connectivity
Interoperability

What is the real problem: format or
connectivity?
4
Transmission (connectivity)
Transmission refers to the
aspect of making the
sender’s e-invoice available
to the receiver.
It includes:
• network modalities
• the transport protocol
• addressing and routing
• the securing of delivery of
the e-invoice

“Platformization” can bring transparencies and
connectivity through the long tail community of small
billers (90% of all Companies)
5
Jos.feyaerts@InCoPro.be

Conclusions: We must build the crowd.
Connectivity is about senders and receivers
6
The chicken or the egg causality dilemma
Hello please ensure
first that sufficient
receivers participate
Hello please ensure first
that sufficient senders
participate

Can Open PEPPOL become the network
of the long tail?
7
ACC: accountant
KL: Client/company
ACC7
ACC4
ACC6
KL1
KL3
KL6
KL2
KL4
KL8
KL7
KL5
KL9
KL7
KL1
ACC1
ACC9
KL11
KL16
KL14
KL15
KL17
KL18
KL12
KL13
KL19
PEPPOL
CHANSON SI J'ETAIS PRESIDENT
– GÉRARD LENORMAN

Can Open PEPPOL become the network of
the long tail?
8
ACC1
ACC: accountant
KL: Klant/Dossier
ACC9
ACC7
ACC4
ACC6
KL1
KL3
KL6
KL2
KL4
KL8
KL7
KL5
KL9
KL7
KL11
KL1
KL16
KL14
KL15
KL17
KL18
KL12
KL13
KL19
PEPPOL

the long tail?
9
ACC1
ACC: accountant
KL: Klant/Dossier
ACC9
ACC7
ACC4
ACC6
KL1
KL3
KL6
KL2
KL4
KL8
KL7
KL5
KL9
KL7
KL11
KL1
KL16
KL14
KL15
KL17
KL18
KL12
KL13
KL19
PEPPOL

the long tail?
10
ACC1
ACC: accountant
KL: Klant/Dossier
ACC9
ACC7
ACC4
ACC6
KL1
KL3
KL6
KL2
KL4
KL8
KL7
KL5
KL9
KL7
KL11
KL1
KL16
KL14
KL15
KL17
KL18
KL12
KL13
KL19
PEPPOL

It’s all about the end-to-end processes
Payment
collectionshipping
Receipt
sales
Purchase
An invoice automation solution can only be really effective when the data of all
documents relating to the invoice can be linked.
But we focus too much on the processes of
corporate businesses (1%) and too little on those
of SMEs (8%) and micro-enterprises <10 FTE
(91%).

The process shift due to platformization of
micro- enterprises with external accountants
12
Invoice approval
Payment or
dispute
Invoice stocked in
shoebox
Bank statements in
shoebox
Posting documents
end of period
Matching payment
and invoices
Current
process
(stand-
alone)

13
Invoice registering on
platform (scanning)
Booking of the
invoice
Approval of the
invoice
Payment through
the platform
Automatic booking and
matching bank statements
Permanent current
status by client and
accountant
Invoice approval
Payment or
dispute
Invoice stocked in
shoebox
Bank statements in
shoebox
Posting documents
end of period
Matching payment
and invoices
Current
process
(stand
alone)
Process change
on collective
platform

14
Accountants have long been the SSC of
SMEs.
"Corporate" SSC copied the profession of
external accounts.
However now accounts can learn from
SSC how to really work with their clients
on shared-use platforms, working
together in one process.
Not offline, not only online but "in-line",
active participating in the process.

Platformization seems to be the new
paradigm for all accounting software
15

The main components of the PEPPOL
Transport Infrastructure:
16
Access point
Supplier
Access point
Buyer
Accounting
Platform Buyer
Accounting
Platform Supplier
Accountant AccountantBuyerSupplier
Goods/Service
Specific
protocol
E-Inv
PEPPOL
protocol
registeringcontrol
control
Specific
protocol
E-Inv
Digital
certificate
Approving
/Paying
E-Inv
Digital
certificate

17
Access point
Supplier
Access point
Buyer
Accounting
Platform Buyer
Accounting
Platform Supplier
Metadata
Locator
(SML)
Goods/Service
Specific
protocol
E-Inv
PEPPOL
protocol
registeringcontrol
control
Specific
protocol
E-Inv
Digital
certificate
Approving/Paying
E-Inv
Digital
certificate
Metadata Publisher
(SMP)
(Yellow Pages)

18
Access point
Supplier
Access point
Buyer
Accounting
Platform Buyer
Accounting
Platform Supplier
Goods/Service
Specific
protocol
E-Inv
PEPPOL
protocol
registeringcontrol
control
Specific
protocol
E-Inv
Digital
certificate
Approving/Paying
E-Inv
Digital
certificateAccounting
platform (A:
e.g. Exact)
Accounting
platform (B:
e.g. Kluwer)

19
Access point
Supplier
Access point
Buyer
Accounting
Platform Buyer
Accounting
Platform Supplier
Goods/Service
Specific
protocol
E-Inv
PEPPOL
protocol
registeringcontrol
control
Specific
protocol
E-Inv
Digital
certificate
Approving/Paying
E-Inv
Digital
certificate
Through a service provider B
(e.g. E-verbinding)
Through a service provider B
(B: e.g. B2Boost)

Peppol is not about replacing the EDI sector
specific high efficient high volume protocols
EDI
XML/UBL
FTP
Providers
XML/UBL
STD-excel
Providers
E-mail
Text-Pdf
XML/UBL
std Excel
by e-mail
Self-billing
Text-Pdf
Excel Word
E-mail
Paper with scanning
Portals
Payment platforms
Self-billing
#Invoices
# Invoice
lines
#Suppliers/#
customers
EDI- FTP
service
providers
Interoperability
by providers and
PEPPOL
Standard network
PEPPOL through accounting packages
(direct/indirect)
20

The Interoperability Framework has also
been picket up by Australia
21
Why is it needed:
•Large buyers have seen the benefit of eInvoicing and
created their own trading communities, with standards
suiting their own needs, which makes it difficult for
businesses who wish to trade with multiple communities.
•Some software vendors and service providers only
facilitate eInvoicing within their own communities
•A whole of economy approach:
•Standardising interconnections, bridges communities & provides
certainty
•Every business has an access point into the ecosystem (internal,
vendor provided or outsourced)
•Open business discovery – discover the digital capabilities of
your trading partner
•Well-established and an internationally accepted solution.
•Designed for scalability
The Interoperability
Framework is a set of
policies, standards and
guidelines to enable any
two parties to
communicate irrespective
of the system or standard
that each uses.
The standards are existing,
internationally and locally
accepted standards. Some
are used in the
Superstream program,
which has delivered
significant benefit to the
economy
Source: http://digitalbusinesscouncil.com.au/einvoicing-interoperability-
framework?
Not
presented
info

GS1 GLNs are a key concept in EDI. They provide the globally unique
identification needed to securely exchange business information on the
internet as well as unambiguously identifying all legal entities and
physical / operational locations described in business documents.
GLNs ensure lean and efficient communication and processing since
names, addresses and other information about particular locations do not
need to be communicated with every transaction.
The necessary information is communicated only once, stored in the
relevant system (e.g. Enterprise Resource Planning system) and
subsequently retrieved by referring to a globally unique GLN.
The GL Number is a unique identifier for
senders or receivers using PEPPOL.
22
Not
presented
info

The Global Location Number can be used by companies to identify their
locations, giving them complete flexibility to identify any type or level of
location required. Its assigned by GS1.
– The GLN can identify a company’s physical locations, for example a store, a
warehouse, or a berth in a port.
– The GLN can be used to identify an organization as a corporate entity.
– The GLN can also identify a company’s legal and functional entities engaging
as parties in a particular business transaction, for example as a buyer, seller,
or carrier.
– The GLN can be used in electronic messages and registries to inform trading
partners about companies and their corresponding GLNs and associated GLN
information.
– The GLN is also used by organizations in the public sector. In fact, various
applications exist where governments use GLNs either to identify their own
agencies or to identify companies using central government databases.
The GL-number is a unique identifier for
senders or receivers using PEPPOL.
23
Not
presented
info

PEPPOL how it works:
The basic operations of an Access Point :
24
• The supplier uses their business application to create the invoice.
• The sender of an electronic document (for example an e-invoice, an
e-order or an e-catalogue) sends the document to a PEPPOL Access
Point using mechanisms agreed with their Access Point provider.
• The Access Point identifies the service required (validates the type of
document being sent) and also identifies the Access Point for the
recipient by first checking the PEPPOL Service Metadata Locator
(SML) to find the relevant Service Metadata Publisher (SMP). The
Service Metadata Publisher (a kind of Yellow Pages) provides the
delivery point for the government agency's invoices.
• The supplier’s Access Point delivers the document to the buyer’s
Access Point.
• The receiving Access Point delivers the document to the recipient.
• The buyers use their business application to process the invoice.
Not
presented
info

The PEPPOL Central Registry: Service
Metadata Locator (SML)
25
• In order to deliver electronic documents from a sender to the correct
recipient, all PEPPOL Access Points need to know about each other
and the participants they support.
• To do this, PEPPOL maintains one centralized service, called
the Service Metadata Locator (SML). The PEPPOL SML defines
which Service Metadata Publisher (SMP) to use for finding out the
delivery details of any PEPPOL participant.
This is a similar approach to how the World Wide Web is able to find
websites based on their domain names.
• The PEPPOL SML is a core service that identifies all PEPPOL trusted
Access Points and SMPs.
Not
presented
info

Publishing the capabilities of PEPPOL
participants
26
• All PEPPOL participating organizations (such as contracting authorities
or suppliers) publish their receiving capabilities (delivery addresses,
business processes and document types supported, etc.) using a
separate service called a Service Metadata Publisher (SMP).
• The purpose of the SMP is similar to an address book or business
registry containing details of participants within a specific eProcurement
community.
• Typically, an SMP is provided to complement an Access Point,
because they publish details for customers of the Access Point. But an
SMP can also be provided as an independent service by a third-party
organization – such as a Chamber of Commerce.
Not
presented
info

It is worth noting that the same Transport Infrastructure
technology can be used for other types of business
transactions – not just eProcurement.
PEPPOL provides governance for the EU public e-
procurement. However the same transport infrastructure can
be used for other purpose such as exchanging health records,
legal documents or freight management information.
PEPPOL is not a governmental organization and the network
is also intended for private use.
27
Not
presented
info

PEPPOL, Security and Trust
28
• Security and integrity of the business transactions sent through the
PEPPOL Transport Infrastructure relies on using a Public Key
Infrastructure (PKI) to establish a trusted network.
• When Access Point or SMP providers sign the PEPPOL Transport
Infrastructure Agreements they will be provided with a PEPPOL
Digital Certificate.
• This certificate contains the key information for validating all
communications on the PEPPOL network. The certificate is valid as
long as the Transport Infrastructure Agreement is valid and can be
revoked if service providers are in breach of the Agreement. This
ensures only known and trusted providers provide services on the
Transport Infrastructure.
Not
presented
info

Conclusions: We must build the crowd.
Connectivity is about senders and receivers
29
The chicken or the egg causality dilemma
Hello please ensure
first that sufficient
receivers participate
Hello please ensure first
that sufficient senders
participate

TheEnd
“Think big, start up small, scale up
fast!”
If you have a problem and nobody else can help you,
Jos Feyaerts
Design For Margin D4M
@InCoPro BvBA
A digitalization guide for your Financial Supply Chain
and Supply chain Finance
Mob:+32-473 38 16 13 Skype: FeyJos
Jos.feyaerts@incopro.be
Jos.feyaerts@compl-aas.com
please find us:
30

You can follow us on LinkedIn.
31
www.linkedin.com/in/JosFeyaerts
WWW.slideshare.com/josfeyaerts
Soon:
WWW.designformargin.com
WWW.compl-aas.com
WWW.Thefinancialsupplychain.com

PEPPOL and what the president of the digital world would obligate 20161003 v2

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PEPPOL and what the president of the digital world would obligate 20161003 v2