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SOA pushed to the limit in e-Government. Practical application of SOA in the Public Procurement processes of the European Commission* João Rodrigues Frade Manager February 2010. *connectedthinking. PwC. Short biography.

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  1. SOA pushed to the limit in e-Government Practical application of SOA in the Public Procurement processes of the European Commission* João Rodrigues Frade Manager February 2010 *connectedthinking PwC

  2. Short biography • Portuguese national, living in Belgium, working with PricewaterhouseCoopers - Advisory • Master in Information Systems and Technology Management from Instituto de Empresa • Platforming and Product Family specialisation by the MIT • Since 2007, assisting the European Commission in a groundbreaking e-Invoicing and e-Ordering Project • Participating in several standardisation initiatives such as the CEN/ISSS Business Interoperability Interfaces for Europe (on behalf of the European Commission, DIGIT) Practical application of SOA in the Public Procurement processes of the EC

  3. Agenda Introduction to Procurement e-PRIOR Interoperability Platform at the European Commission Conclusions

  4. Part one Introduction to Procurement e-PRIOR Interoperability Platform at the European Commission Conclusions

  5. France Invoice DG-INFSO DIGIT Supplier of Services • - Paper documents exchanged via the post e.g. Invoices • Each Supplier uses its own document format, semantic model, code lists, etc • Manual encoding and conversion of data between the documents of the Supplier and the ones of the Customer • Customer needs to understand the semantic model of each Supplier and the other way around Introduction to Procurement Paper based Procurement Supplier of Products Luxembourg Supplier of Products Practical application of SOA in the Public Procurement processes of the EC

  6. Pre-Awarding Invoice Order Customer/ Buyer: Purchase to Pay Invoice payment Awarding Purchase order Goods receipt Notification Submission Invoice control Request Requisition Approval Framework Contract Catalogue Quotation Customer request Order processing Quotation Order Billing Payments Catalogue Supplier(s): Order to Cash Introduction to Procurement Public Procurement overview Post-Awarding Practical application of SOA in the Public Procurement processes of the EC

  7. Pre-Awarding Invoice Awarding Notification Submission Requisition Introduction to Procurement What would be the benefit of digitising e.g. Invoicing? Post-Awarding Customer/ Buyer: Purchase to Pay Invoice payment Purchase order Goods receipt Invoice control Request Approval Customer request Order processing Quotation Order Billing Payments Catalogue Supplier(s): Order to Cash Practical application of SOA in the Public Procurement processes of the EC

  8. Invoice Control Customer (Invoice Receiver) 2009 Costs in EUR per transaction Receive Invoice Cash Management Archiving Encoding in Back-Office Validation Dispute Management Paper 1.1 € 3.0 € 4.0 € 2.5 € 4.8 € 2.2 € 17.6 € Digital 0.0 € 0.0 € 1.2 € 2.0 € 2.0 € 0.8 € 6.0 € Billing Supplier (Invoice Issuer) Print, envelope, send Payment Reminders Cash Management Archiving Paper 3.9 € 0.5 € 4.5 € 2.2 € 11.1 € Digital 0.0 € 0.4 € 3.0 € 0.8 € 4.2 € Introduction to Procurement By moving to Digital Saves 11 euro per transaction Cost of digital is 34% of paper based By moving to Digital Saves 7 euro per transaction Cost of digital is 38% of paper based Practical application of SOA in the Public Procurement processes of the EC

  9. Member States are committed to: • giving public administrations the capability of carrying out 100% of their procurement electronically by 2010 • have set a minimum target of 50% for the actual use of electronic procurement.  • Widespread use could result in: • 5% savings in total procurement costs • 10% reductions in transaction costs • Savings of tens of billions of euro annually Introduction to Procurement i2010 Action Plan eGovernment Action Plan http://ec.europa.eu/information_society/activities/egovernment/ 5 priority areas: Inclusive e-Government Efficiency & Effectiveness High Impact Services Key Enablers e-Participation e-Procurement Practical application of SOA in the Public Procurement processes of the EC

  10. Introduction to Procurement i2010 Action Plan eGovernment Action Plan 5 priority areas: Inclusive e-Government Efficiency & Effectiveness High Impact Services Key Enablers e-Participation e-Procurement Supporting Programmes: Large Scale Pilot project : e-Procurement Pilot project: e-PRIOR project Practical application of SOA in the Public Procurement processes of the EC

  11. Introduction to Procurement i2010 Action Plan eGovernment Action Plan 5 priority areas: Interoperability Programme of the European Commission: Interoperable Delivery of European eGovernment Services to public Administrations, Businesses and Citizenshttp://ec.europa.eu/idabc/ Inclusive e-Government Efficiency & Effectiveness High Impact Services Key Enablers e-Participation e-Procurement Directorate-General for Informatics of the European Commission http://ec.europa.eu/dgs/informatics/index_en.htm Supporting Programmes: Piloting of e-Procurement at DIGIT PRocurement Invoicing and ORdering Large Scale Pilot project : e-Procurement Pilot project: e-PRIOR project Practical application of SOA in the Public Procurement processes of the EC

  12. Part two Introduction to Procurement e-PRIOR Interoperability Platform at the European Commission Conclusions

  13. e-PRIOR Interoperability Platform at the European Commission Key design principles of e-PRIOR as SOA platform Standardised XML Documents, Semantic Model, Identifiers and Code Lists • Requirements: • Equal treatment of Suppliers • Secure and trusted document exchange • Compliance to legal obligations • Simplicity and scalable solution • Reusability Interoperable SOAP Web Services “Enterprise Service Bus” platform between the Customer (DIGIT) and its Suppliers e-PRIOR Standard Choreographies of Interactions (a.k.a. Business Profiles) & Routing Identifier Practical application of SOA in the Public Procurement processes of the EC

  14. France DG-INFSO DIGIT Supplier of Services <?XML v1.0> <INVOICE> <ID> <IssueDate> <Period> e-PRIOR Interoperability Platform at the European Commission SOA applied in e-Procurement Supplier of Products e-PRIOR Luxembourg • “Bridging” Enterprise Bus platform • Electronic documents are exchanged via Machine to Machine communication using well defined SOAP web-services (no GUI) Supplier of Products Practical application of SOA in the Public Procurement processes of the EC

  15. Supplier System DIGIT Back-Office e-PRIOR Invoice Submission Invoice Pre-Processing Archiving Route to the Back-Office Manual Approval • Authenticate Supplier • Authorise Supplier • Validate Message • Start Workflow <?XML v1.0> <INVOICE> <ID> <IssueDate> <Period> Out Queue Invoice Creation Invoice business verification In Queue DB e-PRIOR Interoperability Platform at the European Commission e-Invoicing scenario Practical application of SOA in the Public Procurement processes of the EC

  16. e-PRIOR Interoperability Platform at the European Commission Live since October 2009! Suppliers Service Providers European Commission (Customer) e-PRIOR Practical application of SOA in the Public Procurement processes of the EC

  17. <?XML v1.0> <INVOICE> <ID> <IssueDate> <Period> <?XML v1.0> <A.Resp> <ID> <IssueDate> <Period> <?XML v1.0> <Order> <ID> <IssueDate> <Period> <?XML v1.0> <Order Respon> <ID> <IssueDate> <Period> <?XML v1.0> <CN> <ID> <IssueDate> <Period> <?XML v1.0> <A.Resp> <ID> <IssueDate> <Period> Credit Note Credit Note Response Phase 1 Phase 2b Phase 2a Invoice with Dispute Invoice Only Advanced Procurement e-PRIOR Interoperability Platform at the European Commission Gradual roll-out approach of Business ProfilesEuropean Committee for Standardization - Workshop on Business Interoperability Interfaces www.cenbii.eu Order Order Response • Currently, Suppliers may opt to continue using paper or a e-Profile • e-Catalogue Profiles will also be available as part of Phase 3 Invoice Invoice Response Practical application of SOA in the Public Procurement processes of the EC

  18. e-PRIOR Interoperability Platform at the European Commission Country A SOA in Large Scale (Future) Country B Public Admin Supplier of Products Supplier of Services Public Admin e-PRIOR Country C • PEPPOL will set up a pan-European solution that, jointly with existing solutions, facilitates EU-wide interoperable public e-Procurement Supplier of Products Practical application of SOA in the Public Procurement processes of the EC

  19. Part three Introduction to Procurement e-PRIOR Interoperability Platform at the European Commission Conclusions

  20. Conclusions Summary • European Commission is paving the way for e-Procurement and the adoption of standards • SOA and Standards promote Interoperability and reliable e-collaboration between Suppliers – Customer • e-PRIOR is a strong example of an “Enterprise Service Bus” platform independent of the Back-Office Systems • e-PRIOR is a catalyser of change and service orientation • e-PRIOR is reusable in any other document exchange context Practical application of SOA in the Public Procurement processes of the EC

  21. Of further interest • e-PRIOR in e-Practice: • http://www.epractice.eu/cases/ePRIOR • Demo of e-PRIOR: • http://www.epractice.eu/en/tv/290845 • e-Catalogue Feasibility Study: • http://ec.europa.eu/idabc/servlets/Doc?id=32432 • e-Invoicing Business Requirements: • http://ec.europa.eu/idabc/servlets/Doc?id=32108 • PEPPOL Large Scale Pilot: • http://www.PEPPOL.eu Making change stick* Practical application of SOA in the Public Procurement processes of the EC

  22. © 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers. PwC Thank you very much João Rodrigues Frade E-mail joao.frade@pwc.be Tel +32 2 7109284 Mobile +32 477 842292 http://be.linkedin.com/in/joaofrade This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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