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Opus Capita250908
1. Disruptive Technologies – The Adoption of Electronic Invoicing in Finnish Private and Public Organizations OpusCapita seminar 25.9.2008 Assistant professor Esko Penttinen
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5. Theory of reasoned action (TRA) Attitude toward the behavior Subjective norm Behavioral intention Behavior ( Fishbein & Ajzen 1975) Normative beliefs Behavioral beliefs
6. Technology Acceptance Model Perceived usefulness Perceived ease of use Attitude toward use Behavioral intention to use System usage ( Davis 1989)
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9. The Diffusion Process Percent of Adoption 100% 0% Earlier adopters Later adopters Take-Off Innovation 1 Innovation 2 Innovation 3 time
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11. Adopter Categorization on the Basis of Innovativeness x x + sd x - sd x - 2sd Early Majority 34% Late Majority 34% Early Adopters 13,5% Laggadrs 16% 2,5% Innovators
12. Communication channels Adoptions Due to Mass Media Adoptions Due to Interpersonal Communication Noncumulative Number of Adoptions time
20. Volumes To be implemented in 2008, 1.4 million invoices to consumers and businesses 34%, 85,000 250,000 2008 2005 City of Tampere 25%, 12,500 50,000 [2] 42%, 240,000 560,000 2006 (2007 to consumers) 2002 City of Helsinki 34%, 34000 101,300 53%, 49,500 93,000 2005 2005 TietoEnator 18%, 63,000 350,000 10-15%, 1,000 10,000 2004 2004 Oriola-KD To be implemented in 2008 28%, 9,526 33,475 n/a 2006 Novart 36%, 194,400 540,000 25%, 7,200 28,800 2003 2003 Lindström 2-3%, 400 30,000 25%, 11,250 45,000 2006 2006 Kuusakoski 32%, 315,000 986,000 5%, 17,000 323,000 Gradually one business unit at a time, starting in 2002 for travel agencies Gradually one business unit at a time, starting in 2000 for travel agencies Finnair [1] Electronic Total Electronic Total Outgoing Incoming Organization Volumes of Outgoing invoices Volumes of Incoming invoices Year of initiation of electronic invoicing
21. Results “ Two years ago, when contemplating the adoption of electronic invoicing, we made cold calculations about the costs and benefits of electronic invoicing, just over 30 Euros per incoming paper bill” (Kuusakoski) “ By moving to electronic invoicing, we have been able to reduce the number of errors in invoices considerably.” (Lindström) “ Health care bills are sometimes paid twice by the inhabitants of our municipality by mistake. When they want to get their compensation, it gets messy. Electronic invoicing can fix this problem efficiently.” (City of Helsinki) “ The circulation time of bills has decreased from one week to just two or three days in our company” (Novart, Lindström) ” Technology must be compatible with the work processes, otherwise there will be too much errors.” (TietoEnator) ” It is important that the electronic invoice contains all the information previously available on paper bill.” (City of Helsinki) “ We should be able to centralize our invoicing. For now, we have multiple (7) invoicing departments” (Kuusakoski) “ We cannot get the required XML document from our current system and that is why we have not started the electronic invoicing of outgoing bills” (Novart) “ We found a good pilot company with whom we could test electronic invoicing: it was a travel agency with whom we have a lot of invoicing on regular basis.” (TietoEnator) “ When piloting the electronic invoice to the consumers, we learned that the interface should be easy to use and look like a paper bill” (City of Helsinki) “ Active information flow internally to the employees is very important.” (TietoEnator) “ We want to project a positive, modern image of the public service” (City of Tampere) “ We found that one of the most important factors is being active toward the client/supplier. The availability of the electronic invoicing possibility is stipulated in the contract. Taken up in the discussions with the client/supplier” (Lindström)
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23. Sipilä (2008) Factors affecting the use of electronic invoicing in the case of outgoing invoices 0,4 27,9 28. Invoices can be transmitted between buyers and sellers without the banks, operators or other middlemen 1,9 26,3 27. Invoices can be transmitted to international customers as well 4,9 24,1 26. Competitors use electronic invoicing for outgoing invoices 5,0 22,4 25. Electronic invoicing improves the company’s image 5,8 12,3 10. Electronic invoicing discontinues the use of several different channels for invoices (paper, e-letter, e-mail etc.) 3,0 11,0 9. Positive experiences from using electronic invoicing for the incoming invoices 5,1 10,7 8. The price of electronic invoices is lower than the current practice of sending invoices 5,1 10,3 7. Time savings in sending invoices electronically 5,5 6,9 6. Invoice data can be transmitted in digital format to the receiver 1,4 5,3 5. Government and public service are active in the electronic invoicing scene 4,5 5,3 4. Electronic invoicing lowers the printing and mailing costs 6,6 5,1 3. Customers demand to receive electronic invoices 1,9 2,9 2. Incorporating electronic invoicing to the company’s existing information systems is easy and small companies can use electronic banking systems to transmit invoices electronically 2,4 2,4 1. Company wants to digitalize as much as possible its processes related to financial administration Sd. Aver. Position and factor