OIOUBL - The Danish experience of Developing and Implementing a National eprocurement Standard.

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1 OIOUBL - The Danish experience of Developing and Implementing a National eprocurement Standard Peter L. Borresen IT architect National IT and Telecom Agency Ministry of Science (DK) plb@itst.dk Morten Meyerhoff Nielsen Consultant Policy and Business Analysis Danish Technological Institute (DK) morten.meyerhoff.nielsen@teknologisk.dk

2 The history of OIOUBL Ministry of Finance cost saving project Linked to 2001 public procurement portal ERP integrated solution in 2003: OIOXML standard for procurement based on UBL 0.7 Mandating einvoicing by law in 20: OIOXML based einvoice New standard needed for eorder and ecatalogue

3 Danish experiences in eprocurement Peter L. Borresen IT- architect National IT- and telecom agentcy

4 Tools utilised to achieve goal: Legislation Mandatory einvoice from 1 February 20 All invoices to the public sector must be sent electronically Infrastructure for exchanging invoices Secure network - VANS Scanning agencies for small enterprises Digitize paper based invoices Invoice standard OASIS Universal Business Language, version 0.7 Changing in 2008 to the Danish subset of UBL 2.0 einvoicing in Denmark By 2012, 95% of ebusiness documents exchanged between public and private sector must be based on an open international standard

5 First step: einvoicing in Denmark All invoices to public authorities must be digital upon receipt Can refuse payment if not Perspectives 60 mill/year saved (15 mill invoices x 5 in manual handling costs) Both private and public sectors benefit einvoice is a first step once completed the upstream process can be optimized i.e. procurement and tendering Impact Public institution must be connected to VANS supplier alternatives utilised if agreed Public institution must be able to receive and

6 einvoicing Infrastructure GLN = Address VANS = Electronic post office OIOXML = Common language

7 February 20 Slow start with invoices in February (approx. 30% of the potential volume) Negative industry and public authorities reply due to tight schedule Many invoices were not paid on time Special requirements identified Utilities Prepayment 3rd party involvement (e.g. factoring)

8 Status after one year Development in e-invoices All public institutions able to receive einvoices feb- mar- Target apr- maj- jun- jul- aug- sep- okt- nov- dec- All vendors send invoices either fully digitized or through Read In bureau (70/30) Press has not been as critical as expected (but expectations were grim ) Technical concept is working, but full implementation of new processes takes time Change management in individual organisations a big issue E-invoices Scanned invoices Winner of eeurope Award

9 OIOUBL doing it right Collecting European requirements Strive for technical interoperability publish on the common standard namespace Common European customization Engaging standardisation organisations Provide better tools and documentation

10 The process of OIOUBL Committee formed for standardisation of ecommerce (incl. private and public sector companies and interest groups) Public/private partnership decided on goals for eprocurement and scope for OIOUBL 20+ workshops and a public hearing involving ERP-vendors, procurement portals, buyers and suppliers Requirements, ideas and experiences gathered

11 The next legislation initiatives (plan) November 2007: OIOSI is open for registration Primo 2008: All everybody ready to support NES profile 5 (can be mapped from OIOXML) Primo 2009: All public authorities are obliged to support OIOUBL simple procurement 2010: OIOXML einvoice will no longer be a valid standard for invoices.

12 NES is a subset of UBL covering the proces from catalogue, to order and invoice. United we stand NES International standards are important for European competitiveness - and for convincing international ERP-vendors to implement it. Agency and public sectors of DK, SE, NO, IS, FI and the UK formed NES (Northern European Subset of UBL) in 2006 Aim to simplify use of domestic and cross border eprocurement, especially among SMEs, through international standards.

13 CEN Workshop on 'Business Interoperability Interfaces on public procurement in Europe Background IDABC initiatives on eprocurement NES CODICE CIP i2010 roadmap pilot projects Status Business plan and scoping documents approved 5 meetings held Next meeting the 31th of March in Copenhagen (open meeting)

14 Timeline Phase 1 Phase 2 Phase 3 Phase 4 Requirements Updates and prototypes Developement Verification and pilots May 07 Oct 07 Oct 07- Mar 08 Mar 08 Sep 08 Sep 08- Mar 09 Fast track

15 Organisation Plenary Chair Peter Borresen (DK) Vice Chair Peter Sontagbauer (AT) Secretariat Ismar Husic (DK) Alain DeChamps (BE) Project Team 1 Message content and business processes Jostein Frømyr (NO) Project Team 2 UN/CEFACT-UBL Convergence Martin Forsberg (SE) Project Team 3 Toolbox José Luis Cueva (ES) Project Team 4 Pilot support Mogens Christensen (DK)

16 CEN BII members to date 13 countries 8 companies More joining.

17 Lessons learned Integrated part of standard software All agree on one common eprocurement standard is essential Must be integrated in off-the-shelf software or SMEs will stick to paper and scanning agencies Tools to help implement the standard important for takeup Whole procurement chain Invoice only the final part of the procurement chain For efficiency benefits a common standard covering the whole procurement process is needed thus the Danish OIOUBL and NES subsets of UBL 2.0

18 Recommendations for international cooperation Complexity of international cooperation and development work should not deter you Cooperate and exchange for faster and better results Exchange ideas they may have been tried, tested and improved elsewhere Stakeholders should be included to smooth implementation and take-up Aim for win-win solutions or the take-up of a given standard may be problematic Be open to suggestions may lead to improved results and avoiding pitfalls Do not wait for others to take the initiative the

19 Thank you for your time OIOUBL NES CEN BII workshop PEPPOL