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PEPPOL Business requiremernts. Jostein Frømyr Transport Infrastructure Agreement (TIA) Coordinator Edisys Consulting AS / Agency for Public Management and eGovernment (Norway). The PEPPOL project. PEPPOL - Pan European Public Procurement Online
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PEPPOLBusiness requiremernts Jostein FrømyrTransport Infrastructure Agreement (TIA) CoordinatorEdisys Consulting AS / Agency for Public Management and eGovernment (Norway)
The PEPPOL project PEPPOL - Pan European Public Procurement Online The PEPPOL project is the result of the European Competitiveness and Innovation Programme (CIP) ICT Policy Support Programme (ICTPSP) 2007 and 2009 Call for Proposals • Pilot A objective: Enabling EU-wide public eProcurement • 50% EU contribution for achieving interoperability • Coordinated by the Norwegian Agency for Public Management and eGovernment (Difi) • Consortium and scope: • 18 beneficiaries from 11 countries • Total budget 30,8 M€ • 8 work packages, <1.600 person months and 10 M€ on sub-contractors • Project start up: 1 May 2008, duration 52 months (Pending EC approval)
The business case • Government procurement in the European Union account for around 19% of GDP, which is over 2.200 billion Euro • It has been estimated that if eProcurement were introduced in all EU contracting authorities, annual savings could exceed 50 billion EUR* • Less than 5% of total procurement budgets is awarded through electronic systems** • Only 1,6% of contracts are awarded to undertakings from another Member State*** *Source: Deutsche Bank Research: E-procurement, February 2011 **Source: Green Paper on expanding the use of e-Procurement in the EU. SEC(2010) 1214 ***Source: Green Paper on the modernisation of EU public procurement policy - Towards a more efficient European Procurement Market COM(2011) 15
….. for public sector • Experience from the use of electronic invoicing in Denmark shows that supplies generally receives payment earlier then before! • 1 day interest at 3% on 2 200 billion • € 180 821 918 per day • An internal report by Austrian government from 2002 claims that by applying an electronic order process (catalogue to payment), the time spent on the process can be reduced by some 60%! • In Denmark it is estimated that there were approximately 55 mill. purchase orders in 2005. • For simplicity let’s assume 1 PO = 1 transaction, each with a time saving of 15 minutes • Denmark is approximately 3% of EU GDP • 250 000 person years
….. for privat sector 2-3 € per invoice 4-12 € per invoice Up to 65 € per trans. Source: AlessandroPerego, Politecnico di Milano School of Management
Challenges in the current market • It is very costly to establish new connections • It is complicated to migrate to a new service provider • Many solutions are custom built to enable e-invoicing... Only • My service provider cannot connect to some of my trading partners service providers • Cross border exchange is pretty much impossible unless my trading partners uses my service provider (or if I use theirs) • I have customers in several countries, all using their own domestic e-invoice formats (not always possible for me to use) • I receive a lot of electronic invoices that are incorrect. It takes lots of efforts to identify the issues • I want to check if my customers can receive electronic invoices (and what format they use)
The goal • PEPPOL goal is to enable European businesses to easily deal electronically with any European public sector buyers in their procurement processes, thereby: • Increase opportunities for greater competition for government contracts, giving better value for tax payers money • encourage new and innovative ICT services • simplify access to larger markets for suppliers (especially SMEs)
How PEPPOL helps solve the Challenges Aligning business processes: Defining standards based PEPPOL Business Interoperability Specifications Developing interoperable technologies: Connecting the “islands of eProcurement” through PEPPOL Document Transport Infrastructure/eDelivery solution Addressing common legal issues: Establishing tools for uniform handling of eSignatures, eAttestations and eCatalogues Establishing a legal framework for many-to-many interoperability
Aligning business processes • ”PEPPOL will… Implementing the results of the CEN/ISSS WS “Business Interoperability Interfaces on public procurement in Europe” (CEN BII)”André Hoddevik, Project Director, PEPPOLPEPPOL Conference February 2010
The PEPPOL Document Transport Infrastructure • One common transport protocol between APs – BusDox START • A PEPPOL AP Provider is free to use any transport protocol towards his own customers • A common minimum SLA • A PEPPOL AP and/or SMP Provider is free to offer ahigher SLA or any service he likes towards his own customers • No charges between PEPPOL SML, AP and/or SMPProviders • A PEPPOL AP and/or SMP Provider is free todetermine his own charges towards his customers • Commonly defined business documents • Only business documents approved by the PEPPOLCoordinating Authority or one of the PEPPOL Regional Authorities may be exchanged betweenthe APs • Commonly defined identifiers • Only identifier schemes approved by the PEPPOL Coordinating Authority may be used for routing between the APs
The Coordinating Authority provides European wide governancefor: the PEPPOL Agreements the PEPPOL Technical Standards the PEPPOL Service Specifications the PEPPOL SML Legal framework for many-to-many interoperability Community agreement • The Regional Authority provides regional governance for: • the implementation and use of the transport infrastructure • the legal framework for specific AP and SMP agreements • specific requirements applicable within a domain Provider agreement • The PEPPOL AP and SMP Providers provides the actual services to the end users according to PEPPOL specifications.
Future of PEPPOL • OpenPEPPOL • Long term sustainability through user driven governance • An entity by the users for the users • Continued cooperation between MS and EU • Short term plans: Further development and implementation of eProcurement building blocks in new Pilot A, ISA operations • Medium term plans: Connecting Europe Facility (CEF) • Continued Standardisation • CEN initiatives on eProcurement business process standardisation • OASIS/other initiatives on eDelivery/Document Transport Infrastructure
eProcurementwithout borders in Europe www.peppol.eu