The Status & Future of

E-Invoicing

October 2017

Bruno Koch

Keep the head above the

trees

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

International e-invoicing status & trends

page 3

400 billion bills/invoices

globally (paper &

electronic)

About 36 billion paperless

(2/3rd of it B2B, B2G &

G2B)

Minor proportion =

true e-invoicing

Annual transaction market

growth 10-35 % depending

on country

03.10.2017

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Tax evasion resulting in new legal

requirements

page 403.10.2017

• Estimated VAT gap = 500 billion Euro p.a.

• Cash payments without receipts

• Carousel fraud, invoicing between phantom partners

• No invoicing or invoicing using wrong amounts

• No supplies behind invoices

• Smuggling and domestic fraud with physical supplies

• Fictive employees and salaries

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Clearance model dominating from 2025?

page 503.10.2017

Supplier Buyer

Tax Authorities

Solution/Service Provider

„If you think compliance is

expensive, try non

compliance“.

Paul McNulty, former U.S. Deputy Attorney General

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Increasing market requirements

page 703.10.2017

E-Invoicing

• Public sector mandating its suppliers for e-invoicing &e-procurement

• Private Industry

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 803.10.2017

• Disruptive innovation

• Emerging next-generation technologies

Cloud Aggregation Platforms, Cloud Service Brokers

Robotic Process Automation, automate 50% of back-

office processes

Machine learning

Advanced Analytics

Internet-of-Things

Significant market transition lies ahead

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Emerging technologies paving the way

for quantum leap

page 903.10.2017

0.21

7.44

0.9

7.74

22.4

16.4

Blockchain Cloud ServiceBrokerage

Machine Learning asa Service

Estimates and predictions of various sources(Global market size in Billion USD)

2016

2024

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Global e-invoicing market valuation(Billentis, in billion EUR)

page 1003.10.2017

3.3

1.90.9

0.3 0.2

16.1

2.61.6

2.4

9.5

2017

2024

Includes exchange

networks, communication

gateways, IaaS, SaaS,

PaaS, implementation

costs, value added

services like data

validation, formatting,

synchronization etc.

Not part of the estimate

are workflow, archive

solutions, and processing

of business data that is

related to invoices.

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Service Provider key metrics and ratios

greatly differ

page 1103.10.2017

Depth of manufacture >80 %

What comes behind the

horizon?

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 1303.10.2017

Businesses reducing depth of

manufacture with cloud services

X Inc.

BUBU

BU

BUBU

BU

X Inc.

environment

# Business Units

# ERPs

# SSCs

# Cloud Services

Topics A-Z

On local soil

Public

Private

C

C

C

CC C

C

C

CCCC

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

Trading

Partner

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

New trends and requirements

page 14

• End Users

Purchase Cloud Aggregation Platforms

Require open APIs (Application Programming

Interfaces) for their business applications and cloud

services

Forbes: Year of APIs

• Service Providers

Cluster numerous cloud components; become Cloud

Service Brokers

Improve international interoperability

03.10.2017

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Cloud provider collaboration strategies

page 1503.10.2017

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

New European Norm not sufficient as

common denominator

page 16

• Software developer and cloud operators addressing

European market required to support the EN from 2018

• Very useful, but as only common denominator too small

• Transport/delivery and business layers not specified

• Extended support for seamless cloud interoperability and

API communication with business software required

• Specify an Interoperability Reference Model (IRM) as

common denominator at least for semantic, syntax and

transport

• IRM serve as an orientation for the community03.10.2017

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged.

Potential criteria for the Interoperability

Reference Model

page 17

• Support of the most common business

messages

• Support key layers

• Open for modular extensions

• Already in practical use, internationally & cross-industry

• Just one user contract required regardless of roaming

• On-boarding of new trading partners anywhere without tests

• Trading partner identifiable

• Accessible for any interested party

• Governance reflects the market structure

03.10.2017

We have a historic chance

and short time slot to align

APIs and network services

with an interoperability

reference model.

Take this chance!

© Billentis, Bruno Koch - Reproduction is authorised provided the source is acknowledged. page 1903.10.2017

Questions?

Bruno Koch

www.billentis.com | Twitter | LinkedIn | XING