First Steps in Developing eBusiness in South-Karelian SMEs in 2002 RECEARCH 2001 BUSINESS TO COMPANIES First Steps in Developing eBusiness in South-Karelian SMEs in 2002 30€ 20€ 10€ 10€ 5€ 2€ @ WWW eBusiness development Multi Channel CRM CRM – Customer Service Office Environment Accounting Accounting Company

RESULTS 2003 BUSINESS TO COMPANIES Altogether 749 new Applications were Installed in 399 SMEs during 1.1.2002 – 30.8.2003 Sales 21 Office Environment 428 Financial Manage- ment 110 Personnel Management 6 Marketing 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

Over 700 ePlans were done in SMEs RESULTS 2003 BUSINESS TO COMPANIES Over 700 ePlans were done in SMEs

RESULTS 2003 BUSINESS TO COMPANIES Altogether 726 SME Personnel were Educated to use new Applications. Education was Given by 67 Application Providers.

To Help to Find the Proper Application ACTIONS BUSINESS ROADMAP To Help to Find the Proper Application @ WWW 10€ 5€ 2€ 20€ Fax eMail Phone www Letter 2€ sms/mms Multi Channel 30€ Products Paying Service Level Services Buying Prices Offer Tender

RESULTS 2003 BUSINESS TO COMPANIES Total Amount Used for Education 420 696€ ESF Support 244 838€ 58% SME´s Self Financing 175 858€ 42%

Increasing Efficiency in the SMEs’ Business Networks 2002-2003 2004-2006 > > > > eBusiness for SME eBusiness on the Net Internal Applications and Processes eMessages & eProcesses Product Management and Publication Network Management CRM Customer Service Sales Marketing ERP Office Environment Management Personnel SCM Supply Production Deliveries Customer Product Documents Planning Production Sales After Sales Spare Parts Order – Delivery Chain Activity on the net Accurate Deliveries Process Deviations Process Status Monitoring Business Models Controlled Orders Project Business Messages Offers Orders Order Confirmations eInvoices Cover Letters Inventory Status Retail Large Enterp SME Supplier Connection to Improve Efficiency

Business Processes and eBusiness on the net NEXT STEP 2004-2006 BUSINESS ON NET Business Processes and eBusiness on the net Case Example Channel Message Message Selling invoice eInvoice -eInvoice -eLetter -letter Purchase invoice Salary letter Employers’ Reports TYVI reports eGovernment payment Payment Flow Account Statement Payment transfer Internet Offer Email + attachment Email + attachment Purshace order

ETELÄ-KARJALAN YRITTÄJÄT BUSINESS ON NET Regional driving forces of eInvoicing (9) Suomen Karbonaatti Lappeenranta Imatra Joutseno Operators: (3 Banks & 6 other operators) Application Providers (400) SMEs (1500) send eInvoices to LargeEs (9) ETELÄ-KARJALAN YRITTÄJÄT www.eLiiketoiminta.com

operators FOCUS 2 - PROCESS Sales Invoices Purchase Invoices Making sales invoice custom info product info payment info Paper invoice opening scanning intrepetation Letter eLetter eMail eInvoice Sending Invoice operators eInvoice checking accounts receivable recycling approval accounts payable Bookkeeping Sales receivables register control remarks collections Bookkeeping Bank statement

SME´s core processes: over 1 billion (109) messages in Finland B2B Current penetration 98% 8 M € PAYMENTS 500 mill. pcs 8 M € INVOICING 200 mill. pcs Current penetration 8% ~~ ~~ 4 M € 4 M € 2 M € 2 M € 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007 PRODUCT MANAGEMENT 8 M € OFFERS 400 mill. pcs ? 8 M € PURCHACING 200 mill. pcs ? ~~ ~~ 4 M € 4 M € 2 M € 2 M € 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007

Additional information: Anilinker Elisa TeliaSonera eINVOICES CONNECTIONS Additional information: Anilinker Elisa TeliaSonera

sending – receiving – recycling – transfer to finance systems NEXT STEP 2004-2006 BUSINESS ON NET 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/year b-to-c 200 million invoices/year Costs 40€/Paper invoice 20€/eInvoice Savings if 25% of all invoices are eInvoices 20€ x 100 million = 2.000.000.000 € = 2 Billion € Case: eInvoice sending – receiving – recycling – transfer to finance systems

WORKING COSTS PURCHASE INVOISES 1 000 PSC Receiving 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 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 Invoices With Paper = 1000 x 26 min x 34€/h = 15 016 € With eInvoice = 1000 x 9 min x 34€/h = 5 100 € SALES INVOISES 1 000 PSC Making 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 €

Estimated Personnel Work Load of the Process of Financial Management (3 737 man years) of Finland’s State Treasury

Unit Costs in the Handling Purchasing Invoices Scanning done by own Organization Scanning Outsourced eInvoice Saving Saving

MicroSME SME SME Account. C. Medium Es Own Processes B2B Nordea OP Sampo MicroSME Accounting Large Es transfer eInvoice service,Inter-net banking Financial Manag. ERP SME Accounting transfer Purchase workflow Anilinker Basware Enfo Elisa -Solutions Elma TietoEnator VM-Data/Novo TeliaSonera Finacial management Internet/ASP SME Account. C. Sales & Purshace invoicing Financial Manag. transfer transfer Medium Es Own Cach & eDoc transfer ERP Conversions Routing Authentication

Operators (Banks, Others…) Operators (Banks, Others…) Processes B2B Operators Medium Es Messages Anilinker Atkos Basware Enfo Elisa Solutions Elma TietoEnator ERP eInvoice Large Es Operators Posti XLM ASP SME ERP SAP In house Financial management eDoc operator Operators (Banks, Others…) Teapps Accounting firms SME Nordea OP Sampo Financial management Finvoice Operators (Banks, Others…) MicroEs Conversions Routing Authentication NetBank eInvoice Banks

Regional action plan Joint marketing NEXT STEP 2004-2006 BUSINESS ON NET Regional action plan Joint marketing Application Providers Camber of Commerce Developing Organisations Large Companies Bullets, articles, meetings suppliers, new applications and sevices www.eLiiketoiminta.com Accountig SME Processes-Messages-Channels channels suppliers - support the education - supply of applications - help to ePlan Banks and Operators Government Project

Developing Organisations NEXT STEP 2004-2006 BUSINESS ON NET Financing 2004-2006 Chamber of Commerce Developing Organisations Application Providers Large companies 4 á 4.000 Tot. 12.000 Budjet Budget ESF-support Companies SME 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 eBusiness project á 4.000 Tot. 12.000 á 4.000 Tot. 16.000 220.000 Banks and operators 5 Covernment 3 Cities Hanke

Benefits of eInvoicing

Benefits of eInvoicing

Joint project eBusiness in network NEXT STEP 2004-2006 BUSINESS ON NET Joint project eBusiness in network Companies own network Regional network Across the border Number of companies of business regional project network in 2003: South-Karelia 5 880 Kymenlaakso 7 784 Päijät-Häme 9 723 Pirkanmaa 21 850 Etelä-Pohjanmaa 10 488 Total 55 725 www.eLiiketoiminta.com

eBusiness R & D (5 000 ePlans) NEXT STEP 2004-2006 BUSINESS ON NET eBusiness R & D (5 000 ePlans) Regional eBusiness Projects in: Finland - EU Project management Development of eBusiness Automated Help for ePlan Support Info ePlans SME Applications Education Application providers Application development Info of applications

Possibility to work out of office Benefits & future 24 h Possibility to work out of office Low investment costs mobil and boradband in 2005 Financial management by internet and by ASP eInvoice Automated bookeeping

Ask offers also from the advanced accountig companies NEXT STEPS Go to your own bank and take all the eServices that are available including eInvoice Go to your own accountig company and ask how to organize the bookeeping in a new way, Ask offers also from the advanced accountig companies 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

STRATEGY of eBusiness Projects NEXT STEP 2004-2006 BUSINESS ON NET STRATEGY of 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.