Useful and interesting material. My own presentation focused on the practical steps to get to a real time economy (real time invoicing, real time payments, real time accounting etc) - will be added later.
Showing posts with label e-identification. Show all posts
Showing posts with label e-identification. Show all posts
Thursday, September 27, 2007
Saturday, July 28, 2007
Nordic focus - appeared in Financial i June 2007 issue
My name is Guy. Same Guy and I make digitalisation happen. Where does my name come from? From the fact that there is an urgent need to remind all sorts of service providers that they serve the same customer for his many needs and in different roles and that there are important opportunities to speed up digitalization if this is realized.
Why is this urgent? Because digitalization is so important for corporate and public sector productivity, because digital services are so central to corporate competitiveness in an open global economy and because the context end-users are living in is continuing to become overcrowded with information, alternatives and activities. As there is less time for any one thing it is imperative to, by all available means, lower the threshold for taking new services into use. We have seen good examples of how this can be done by making things clinically simple – but that is not enough any more. Further digitalization of services should be mandatory – and at least when tax payers money is involved – build on what the end user already is used to and trusts. This is where banks have a big role to play – and a big responsibility.
What can banks do to speed up digitalization in society at large? Naturally, they should offer all their own services in a digital format, thus feeding the massive ‘e-habit’ only large volume financial transactions can create. Secondly, they should develop new streams of income from valuable services and cut their costs (banks in Finland have halved their total costs with the help of digital services). Then these tools need to be embedded in e-business and e-public sector services. One such example is the use of e-banking log-in tools for identification of people in public sector services and for e-signatures on documents between third parties. The alternative – to have to equip people with a separate public sector smart card and readers could easily cost EUR 40 upfront (there are 460 million citizens in the EU). Experience also shows that public sector smart cards are seldom used, as most people prefer to use already familiar, in this case bank tools.
From a corporate productivity and competitive service viewpoint, more significant development is taking place in the area of e-invoicing. E-invoicing is of course nothing new – it has been around for decades – mostly in vertical environments using proprietary, expensive and inflexible technology – resulting in further costs when trying to make disparate formats interoperable via re-formatting. This has lead to a situation where the SME sector (17 million enterprises in the EU representing the highest potential for digitalization) have not had the tools to join digital value chains or have been forced to use different applications or portals with different suppliers and customers.
The solution to this dilemma has been found – it is to make invoice transportation use the payment network, payment file technology and netbanks for inputting and outputting – just like sending and receiving payments – using the payment address for a corporate or private e-invoice receiver. When launched by banks in Finland in 2004 it was a surprise to everyone that so many enterprises signed up right away. The European Commission and the European Central Bank have taken an active role in encouraging banks to create a common standard and launch this concept as a part of SEPA. Estimates from the corporate sector indicate that annual processing cost savings could be in the region of EUR 200 billion. Banks are now moving and this will also improve volumes for traditional e-invoicing service providers. But as the savings are divided into so many small parts, big hands are needed to steer the mass market. Eventually this will be connecting every bank account globally also for e-invoicing and other documents like e-orders.
Again it has been vital to start from the end-user and realize that there are no corporate customers – only human customers – Mr Same Guy in different roles. When it is possible to offer the same tool to the end-user for their needs in private, citizen and employee roles – for the same purpose in different environments or new purposes - significant cost savings can be made, and above all the time to market is shorter.
Bo Harald is head of Executive Advisors, TietoEnator, Helsinki
http://boharald.blogspot.com
My name is Guy. Same Guy and I make digitalisation happen. Where does my name come from? From the fact that there is an urgent need to remind all sorts of service providers that they serve the same customer for his many needs and in different roles and that there are important opportunities to speed up digitalization if this is realized.
Why is this urgent? Because digitalization is so important for corporate and public sector productivity, because digital services are so central to corporate competitiveness in an open global economy and because the context end-users are living in is continuing to become overcrowded with information, alternatives and activities. As there is less time for any one thing it is imperative to, by all available means, lower the threshold for taking new services into use. We have seen good examples of how this can be done by making things clinically simple – but that is not enough any more. Further digitalization of services should be mandatory – and at least when tax payers money is involved – build on what the end user already is used to and trusts. This is where banks have a big role to play – and a big responsibility.
What can banks do to speed up digitalization in society at large? Naturally, they should offer all their own services in a digital format, thus feeding the massive ‘e-habit’ only large volume financial transactions can create. Secondly, they should develop new streams of income from valuable services and cut their costs (banks in Finland have halved their total costs with the help of digital services). Then these tools need to be embedded in e-business and e-public sector services. One such example is the use of e-banking log-in tools for identification of people in public sector services and for e-signatures on documents between third parties. The alternative – to have to equip people with a separate public sector smart card and readers could easily cost EUR 40 upfront (there are 460 million citizens in the EU). Experience also shows that public sector smart cards are seldom used, as most people prefer to use already familiar, in this case bank tools.
From a corporate productivity and competitive service viewpoint, more significant development is taking place in the area of e-invoicing. E-invoicing is of course nothing new – it has been around for decades – mostly in vertical environments using proprietary, expensive and inflexible technology – resulting in further costs when trying to make disparate formats interoperable via re-formatting. This has lead to a situation where the SME sector (17 million enterprises in the EU representing the highest potential for digitalization) have not had the tools to join digital value chains or have been forced to use different applications or portals with different suppliers and customers.
The solution to this dilemma has been found – it is to make invoice transportation use the payment network, payment file technology and netbanks for inputting and outputting – just like sending and receiving payments – using the payment address for a corporate or private e-invoice receiver. When launched by banks in Finland in 2004 it was a surprise to everyone that so many enterprises signed up right away. The European Commission and the European Central Bank have taken an active role in encouraging banks to create a common standard and launch this concept as a part of SEPA. Estimates from the corporate sector indicate that annual processing cost savings could be in the region of EUR 200 billion. Banks are now moving and this will also improve volumes for traditional e-invoicing service providers. But as the savings are divided into so many small parts, big hands are needed to steer the mass market. Eventually this will be connecting every bank account globally also for e-invoicing and other documents like e-orders.
Again it has been vital to start from the end-user and realize that there are no corporate customers – only human customers – Mr Same Guy in different roles. When it is possible to offer the same tool to the end-user for their needs in private, citizen and employee roles – for the same purpose in different environments or new purposes - significant cost savings can be made, and above all the time to market is shorter.
Bo Harald is head of Executive Advisors, TietoEnator, Helsinki
http://boharald.blogspot.com
Friday, August 11, 2006
work1. Remember to network - examples from e-banking
Starting to go deeper into the list below, I recall the earliest networking experience from e-banking - dating back to 1984 (private e-banking was launched in 1982 - corporate in 1979 in Union Bank of Finland - now Nordea Bank). In those days PCs were not that widely in use at home and modems even less common. So the bank agreed with employers that it is in everybody's interest (time saved) when employees who use PCs at work (usually linked to external telenetworks) could use them also for their private e-banking. This networking led to a very much faster uptake and customer value than would otherwise have been possible and created an early e-habit and e-trust platform that now is the base for a worldleading position for example in the public sector (reuse of e-banking tools).
The next networking example from the e-banking history came 1992 when customers could log in to the bank and continue to all major insurance companies - big savings for them as they did not need to build own strong identification. This meant that banking became embedded in insurance services and vice versa.
This reuse of bank e-id (also for signing third party contracts as is the case with loan agreements in the banks' services) took a big step forward when the Finnish Ministry of Finance in 2002 recommended the use or bank-id for the public sector as an equally strong method as the state issued PKI smart card (which has failed to gain usage). Estonia in 2005 is an even more striking example of what citizens prefer: 363 000 Estonians used e-banking id (800 000 have them) when filing tax return - 904 used the state issued smart card (1 000 000 distributed). This use of bank-id has probably taken Estonia's tax service and public sector at large to a global lead position.
Accenture's High Performance in Government report (p35 figure7) shows the results of the co-operation with the banking sector - Finnish citizens are very clear global leaders in eGovernment use and eGovernment enthusiasm. Of course it is easy to understand - what could be more conveniant than reuse of bank-id which is so often used and familiar (one-time codes since 1982)? True economy of repetition for the citizen, economy of reuse for the government (massive investment if all citizens would have to be equipped with smart cards and card readers - and a waste as single sector tools will not be used - and ties to one PC, does not work on mobiles etc) and economy of scope and scale for all. Accenture did not quite pick this up but cited some for me unknown anonymous press coverage that would have questioned the role of banks - ie questioning networking..
I could list a good number of similar networking examples from e-banking - payments-integrated e-invoicing is the most recent example - the cost saving potential from e-invoicing for EU has been estimated (by EU) to exceed 100bn€ per year - something REAL for Lisbon.
The leading theme is of course to understand how the citizen's practice of handling all aspects of banking can so very naturally become an essential part of his practice in using for example public sector services. Responsible civil servants are of course taking every opportunity to save tax payers' money - but also to make it possible for them to benefit early from e-services without any need to invest in or learn to use new devices. This service of practices is very much connecting to what Oskar states in his Practice Design blog. "This helps companies to bec0me less fragmented in the operations. Customers are very different, whereas practices can in many cases be universal." In this particular case cross-organisations and both for the citizen's private and employee role in a world-leading private-public partnership.
More examples later.
Starting to go deeper into the list below, I recall the earliest networking experience from e-banking - dating back to 1984 (private e-banking was launched in 1982 - corporate in 1979 in Union Bank of Finland - now Nordea Bank). In those days PCs were not that widely in use at home and modems even less common. So the bank agreed with employers that it is in everybody's interest (time saved) when employees who use PCs at work (usually linked to external telenetworks) could use them also for their private e-banking. This networking led to a very much faster uptake and customer value than would otherwise have been possible and created an early e-habit and e-trust platform that now is the base for a worldleading position for example in the public sector (reuse of e-banking tools).
The next networking example from the e-banking history came 1992 when customers could log in to the bank and continue to all major insurance companies - big savings for them as they did not need to build own strong identification. This meant that banking became embedded in insurance services and vice versa.
This reuse of bank e-id (also for signing third party contracts as is the case with loan agreements in the banks' services) took a big step forward when the Finnish Ministry of Finance in 2002 recommended the use or bank-id for the public sector as an equally strong method as the state issued PKI smart card (which has failed to gain usage). Estonia in 2005 is an even more striking example of what citizens prefer: 363 000 Estonians used e-banking id (800 000 have them) when filing tax return - 904 used the state issued smart card (1 000 000 distributed). This use of bank-id has probably taken Estonia's tax service and public sector at large to a global lead position.
Accenture's High Performance in Government report (p35 figure7) shows the results of the co-operation with the banking sector - Finnish citizens are very clear global leaders in eGovernment use and eGovernment enthusiasm. Of course it is easy to understand - what could be more conveniant than reuse of bank-id which is so often used and familiar (one-time codes since 1982)? True economy of repetition for the citizen, economy of reuse for the government (massive investment if all citizens would have to be equipped with smart cards and card readers - and a waste as single sector tools will not be used - and ties to one PC, does not work on mobiles etc) and economy of scope and scale for all. Accenture did not quite pick this up but cited some for me unknown anonymous press coverage that would have questioned the role of banks - ie questioning networking..
I could list a good number of similar networking examples from e-banking - payments-integrated e-invoicing is the most recent example - the cost saving potential from e-invoicing for EU has been estimated (by EU) to exceed 100bn€ per year - something REAL for Lisbon.
The leading theme is of course to understand how the citizen's practice of handling all aspects of banking can so very naturally become an essential part of his practice in using for example public sector services. Responsible civil servants are of course taking every opportunity to save tax payers' money - but also to make it possible for them to benefit early from e-services without any need to invest in or learn to use new devices. This service of practices is very much connecting to what Oskar states in his Practice Design blog. "This helps companies to bec0me less fragmented in the operations. Customers are very different, whereas practices can in many cases be universal." In this particular case cross-organisations and both for the citizen's private and employee role in a world-leading private-public partnership.
More examples later.
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