liiketoiminta etelä-karjala kymenlaakso päijät-häme pirkanmaa etelä-pohjanmaa first steps in...

LIIKETOIMINTA

Etelä-Karjala Kymenlaakso Päijät-Häme Pirkanmaa Etelä-Pohjanmaa

First Steps in Developing eBusiness in South-Karelian SMEs in 2002

BUSINESS TO COMPANIESRECEARCH 2001

@ WWW

CRM – Customer Service

Office EnvironmentAccounting

30€ 20€ 10€ 5€ 2€

eBusiness developmentMulti Channel CRM

10€

Accounting Company

LIIKETOIMINTA


RESULTS 2003

Sales 21Office Environment 428

FinancialManage-ment

110

Personnel

Management 6Marketing 4

Customer Service 54

Internal Communication

Production 15

Customer Relationship Management

CRM tot. 79

Delivery

Supply Chain Management

SCM tot. 15

Procurement

Management tot. 543

Networking of business process tot 2

Altogether 749 new Applications were Installed in 399 SMEs during 1.1.2002 – 30.8.2003

BUSINESS TO COMPANIES

LIIKETOIMINTA


Over 700 ePlans were done in SMEs

Officesystems

Officesystems BrowserBrowser

email,calendar,

tasks

email,calendar,

tasksData linksData links Information

security

Informationsecurity

Operatingsystem

Operatingsystem

Purchaseinvoices

Purchaseinvoices

Paymenttransfers

Paymenttransfers

Cashmanagement

Cashmanagement BudgetingBudgeting Calculation of

salaries

Calculation ofsalaries

Salesinvoices

Salesinvoices

Financial Management

AccountingAccounting ReportingReporting Electricalfiling

Electricalfiling

Expensereports

Expensereports

Taskcalendar

Taskcalendar

Recoursecalendar

Recoursecalendar

Workinghours

management

Workinghours

management

Groupcalendar

Groupcalendar

Resource management

Personnel management

Health carecontrol

Health carecontrol

Employmentcontracts

Employmentcontracts

Jobrotation

Jobrotation

Deputysystem

Deputysystem

Developmentconversations

Developmentconversations

Time mana-gement

Time mana-gement

Careerplanning

Careerplanning

BUSINESS TO COMPANIESRESULTS 2003

LIIKETOIMINTA


Altogether 726 SME Personnel were Educated to use new Applications. Education was Given by 67 Application Providers.

Controllingservice requests

Controllingservice requests

Searching for

a solution

Searching for

a solution

Delivering asolution to a

client

Delivering asolution to a

client

Collectingfeedback fromcustomers

Collectingfeedback fromcustomers

Registeringservice requests

Registeringservice requests

Collectingcustomer

information

Collectingcustomer

informationDirect

marketing

Directmarketing

Campaignexecutions

and analysis

Campaignexecutions

and analysis

OfferOffer ContractContractSales

documentsmanagement

Salesdocuments

managementSales

operating

Salesoperating

Customerprofitability

Customerprofitability

Potential /lead

management

Potential /lead

management

Custom service-CRM

Sales-CRM

Marketing-CRM


LIIKETOIMINTA


Letter

FaxPhone eMailwww

sms/mms

Products

Services

Offer

Buying

Prices

Paying

Tender

Service Level

Multi Channel30€

20€

5€2€

10€

@WWW

2€

BUSINESS ROADMAP

To Help to Find the Proper Application

ACTIONS

LIIKETOIMINTA


Total Amount Used for Education 420 696€ ESF Support 244 838€ 58%SME´s Self Financing 175 858€ 42%

Productionplan

Productionplan ProductionProductionCapacity

availability

Capacityavailability

DeliveryDelivery FeedbackFeedbackShipmentShipment

AvailabilityAvailability Purchasecontract

Purchasecontract ReceiptReceipt

Purchase-bill

acceptance

Purchase-bill

acceptanceChange in

stock

Change instock

Purchase-contract

management

Purchase-contract

management

Production-SCM

Supply-SCM

Purchase-SCM


LIIKETOIMINTA


Customer

Retail

Large Enterp

SME

Supplier

eMessages & eProcesses

Product Managementand Publication

Network Management

> >> >

Connection to Improve Efficiency

Messages

• Offers

• Orders

• Order Confirmations

• eInvoices

• Cover Letters

• Inventory Status

Product Documents

• Planning

• Production

• Sales

• After Sales

• Spare Parts

eBusiness for SME

Internal Applications and Processes

eBusiness on the Net

CRM Customer Service Sales Marketing

ERP Office Environment Management Personnel

SCM Supply Production Deliveries

Order – Delivery Chain• Activity on the net• Accurate Deliveries• Process Deviations• Process Status• Monitoring

Business Models• Controlled Orders• Project Business

2002-2003 2004-2006

Increasing Efficiency in the SMEs’ Business Networks

LIIKETOIMINTA


Business Processes and eBusiness on the net

Purchaseinvoice

Purchaseinvoice

Paymenttransfer

Paymenttransfer

Sellinginvoice

Sellinginvoice

Payment FlowPayment Flow

MessageChannel

eInvoice

Offer Offer Purshace order

Purshace order

Email +attachment

payment

Message

-eInvoice-eLetter-letter

Account Statement

Email +attachment

Internet

Salaryletter

Salaryletter

Employers’Reports eGovernment

eGovernmentTYVIreports

NEXT STEP 2004-2006

Case Example

BUSINESS ON NET

LIIKETOIMINTA


www.eLiiketoiminta.comETELÄ-KARJALAN

YRITTÄJÄT

Imatra JoutsenoLappeenranta

BUSINESS ON NET

Suomen

Karbonaatti

Operators: (3 Banks & 6 other operators)

Application Providers (400)

Regional driving forces of eInvoicing (9)

SMEs (1500) send eInvoices to LargeEs (9)

LIIKETOIMINTA


Making sales invoice•custom info•product info•payment info

Making sales invoice•custom info•product info•payment info

•Sales receivables•register control•remarks•collections•Bookkeeping

•Sales receivables•register control•remarks•collections•Bookkeeping

•Sending Invoice•Sending Invoice

•Letter•eLetter•eMail •eInvoice

•Letter•eLetter•eMail •eInvoice

Bank statement

SalesInvoices

SalesInvoices

Paper invoice

•opening•scanning•intrepetation

Paper invoice

•opening•scanning•intrepetation

•eInvoice

•checking•accounts receivable•recycling•approval•accounts payable•Bookkeeping

•eInvoice

•checking•accounts receivable•recycling•approval•accounts payable•Bookkeeping

PurchaseInvoices

PurchaseInvoices

FOCUS 2 - PROCESS

operators

LIIKETOIMINTA


SME´s core processes: over 1 billion (109) messages in FinlandB2B

2000 2001 2002 2003 2004 2005 2006 2007

8 M €~~

4 M €

2 M €

2000 2001 2002 2003 2004 2005 2006 2007

8 M €~~

4 M €

2 M €

2000 2001 2002 2003 2004 2005 2006 2007

8 M €~~

4 M €

2 M €

2000 2001 2002 2003 2004 2005 2006 2007

8 M €~~

4 M €

2 M €

PAYMENTS500 mill. pcs

PURCHACING200 mill. pcs ?

OFFERS400 mill. pcs ?

INVOICING200 mill. pcs

PRODUCT MANAGEMENT

MESSAGES

Currentpenetration

98%Current

penetration8%

LIIKETOIMINTA


Dated 040910 RECEIVING

SENDING Nor

dea

Bas

war

e

Elm

a

Tie

toE

nato

r

Sam

po

Enf

o

WM

-dat

a N

ovo

Osu

uspa

nkki

Nordea 7Basw are 6Elma 6TietoEnator 5Sampo 4Enfo 4WM-data Novo 4Osuuspankki 3

IN PRODUCTION

IN TESTING

NO CONECTIONS

eINVOICES CONNECTIONS

Additional information:AnilinkerElisaTeliaSonera

LIIKETOIMINTA


Internet Paying: Approximately 99 % of SMEs uses Internet Banking – saving money

eInvoicing: eInvoice proves the competitiveness and saves even more money

Amount of Invoices:b-to-b 200 million invoices/yearb-to-c 200 million invoices/year

Costs40€/Paper invoice20€/eInvoice

Savings if 25% of all invoices are eInvoices20€ x 100 million = 2.000.000.000 €= 2 Billion €

Case: eInvoicesending – receiving – recycling – transfer to finance systems

NEXT STEP 2004-2006 BUSINESS ON NET

LIIKETOIMINTA


SALES INVOISES 1 000 PSCMaking invoice 3,00 min•Take up customer number 0,5 min•Make the invoice 2 min•Printing 0,5 min

Sending invoices 6,00 min•Put into the envelope 1 min•Take to post office 3 min•Filing 0,5 min•Copying to files 0,5 min•Invoice copy to seller •Take to bookkeeping agency 3 min

Auditing and bookeeping 4,00 min•Entry into ledger 1 min•Bookkeeping 1 min•Search of invoice 1 min•Error handling 2 min

Yhteensä 13,00 min

1 000 Sales Invoices With Paper = 1000 x 13 min x 34€/h = 7 366 €With eInvoice= 1000 x 6 min x 34€/h = 3 400 €

WORKING COSTS

PURCHASE INVOISES 1 000 PSCReceiving invoices 9,00 min• Opening the post 1 min• Stampling the date of invoice 1 min• Attach the despatch note 2 min• Copying 1 min• File the copy and despatch note 1 min• Checking and posting (the invoice) 2 min• Copy to buyer 1 min• Supplier number marked onto the invoice 1 min

Workflow of invoices 9,00 min• Checking 1 min• Approval 2 min• Take to bookkeeping agency 3 min• Posting the invoice to bookkeeping 1,5 min• Checking 1 min

Auditing and bookeeping 8,50 min• Entry into the purchase ledger 2 min• Approval 0,5 min• Payment 1 min• Checking the payment from account statement 1 min• Archiving 1 min• Search of invoice 1 min• Error handling 2 min

Total 26,50 min

1 000 Purchase InvoicesWith Paper = 1000 x 26 min x 34€/h = 15 016 €With eInvoice = 1000 x 9 min x 34€/h = 5 100 €

LIIKETOIMINTA


Estimated Personnel Work Load of theProcess of Financial Management (3 737 man years)

of Finland’s State Treasury933

406 399 379344

288 266 244203

178

37

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100

200

300

400

500

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LIIKETOIMINTA


Saving

Unit Costs in the Handling Purchasing Invoices

Scanning done byown Organization

Scanning Outsourced

eInvoice

Saving

LIIKETOIMINTA


Accounting

Large Es

AnilinkerAnilinkerBaswareBasware

EnfoEnfoElisa -Elisa -

SolutionsSolutionsElmaElma

TietoEnatorTietoEnatorVM-Data/VM-Data/

NovoNovoTeliaSoneraTeliaSonera

ERP

ConversionsRouting

Authentication

OwnERP

SME

Finacial managementInternet/ASP

Account. C.SME•Sales & •Purshaceinvoicing

MicroSME

Purchaseworkflow

NordeaNordeaOPOP

SampoSampo

Accounting

FinancialManag.

eInvoice service,Inter-net banking

transfer

transfer

transfer Medium Es •Cach & eDoc

•transfer

transferFinancialManag.

Processes B2B

LIIKETOIMINTA


SME

Large Es

AnilinkerAnilinkerAtkosAtkos

BaswareBaswareEnfoEnfoElisa Elisa

SolutionsSolutionsElmaElma

TietoEnatorTietoEnator

ERPSAP

eDoc

ConversionsRouting

Authentication

Medium EsERP

ASPFinancial

management

SMEAccounting firms

Operators (Banks, Others…)

MicroEs

Banks

NetBank eInvoice

Teapps

Finvoice

In house

Posti XLM

eInvoice

operator

NordeaNordeaOPOP

SampoSampo

Processes B2B

Financialmanagement

Operators (Banks, Others…)

Operators

OperatorsMessages

LIIKETOIMINTA


Regional action planJoint marketing

Accountig SME

Processes-Messages-Channels

Large Companies

GovernmentBanks andOperators

ApplicationProviders

Project

suppliers,

suppliers

- support the education- supply of applications- help to ePlan

channels

new applicationsand sevices

Camber of CommerceDeveloping Organisations

Bullets, articles, meetings

www.eLiiketoiminta.com


LIIKETOIMINTA


Financing 2004-2006

eBusiness project

á 4.000 Tot. 12.000

Budget ESF-support CompaniesSME education 650.000 450.000 200.000 (SME´s)

SME work 100.000 100.000 100.000 (SME´s)Other expences 450.000 220.000 130.000 (Big beneficiaries)TOTAL 1.200.000 770.000 430.000

á 4.000Tot. 12.000

á 4.000Tot. 16.000

Budjet

220.000

Large companies 4

Covernment3 Cities

Banks andoperators 5

ApplicationProviders

Hanke

Chamber of CommerceDeveloping Organisations


LIIKETOIMINTA


Amount of Penetration of eInvoicecompanies processes invoices per Now Year 2004 Year 2005

year 5 % 50 %City of Lappeenranta 1 2 pcs 100 000 5 000 50 000(60.000 inhabitants) saving € 200 000 1 000 000

50 %South-Karelia region 1 000 2 000 pcs 5 200 000 260 000 2 600 000(5.500 companies) saving € 5 200 000 52 000 000

25 %eBusiness 5 regions 5 000 10 000 pcs 55 000 000 2 750 000 13 750 000(55.000 companies) saving € 55 000 000 275 000 000

Benefits of eInvoicing

LIIKETOIMINTA


Invoices received

organisations Invoices man-year SME´seGovernment

State treasure 24 4 000 000 933 30 000Customs 52 000 12Cities/comm. 414 7 000 000 1 632Helth care 1 500 000 350Education

eB2G total 13 000 000 3 000

Big companies 2000 55 000 000 48 000 50 000SME 216000 165 000 000eB2B total 220 000 000 51 000

=> can be ruduced 80% => 48 000 man-year

Benefits of eInvoicing

LIIKETOIMINTA


Joint project eBusiness in network

Number of companies of business regional project network in 2003:

South-Karelia 5 880Kymenlaakso 7 784Päijät-Häme 9 723Pirkanmaa 21 850Etelä-Pohjanmaa 10 488Total 55 725

www.eLiiketoiminta.com

Companies own network Regional network Across the border


LIIKETOIMINTA


eBusiness R & D (5 000 ePlans)

SME

Applicationproviders

RegionaleBusinessProjects in:Finland -

EU

Info

Project management

Applicationdevelopment

AutomatedHelp for ePlan

Info of applications

Development ofeBusiness

Applications

ePlans

Education

Support


LIIKETOIMINTA


Benefits & future

• 24 h• Possibilityto work out ofoffice

• Low investment costs• mobil and boradband in 2005

Financial management by internet and by ASPeInvoiceAutomated bookeeping

LIIKETOIMINTA


NEXT STEPS

1. Go to your own bank and take all the eServices that areavailable including eInvoice

2. Go to your own accountig company and askhow to organize the bookeeping in a new way,

3. Ask offers also from the advanced accountig companies

4. Register at www.eLiiketoiminta.com We will inform you and help you in many ways:- we will support you to educate your staff to use the new applications

LIIKETOIMINTA


STRATEGYof eBusiness Projects

Intention is to help SMEs in region

to get better benefits to their own business by using

new applications and services and

to generate better business by network of business processes.
