Autumn 2011 Meeting

The event was preceded by a half-day workshop focused on the ‘e-Trading — An Integrated Business Approach towards Industry Improvement'. Tim Cole (Causeway/BASDA/UK e-Invoicing Advocacy Group/Hub Alliance) led the workshop and began by providing a background to eTrading in relation to the key components of eTrading and identifying the challenges and benefits. He then outlined the current status of where eTrading is today and its importance in terms of market maturity whereby eTendering is currently a hot topic across the globe with increases in adoption together with proven benefits. He then set down the key drivers, namely commercial advantages, improved operations, improved management controls and visibility, savings in time and costs, and improved sustainability. The proven benefits to both buyers and suppliers were discussed while emphasis was placed on eTrading delivering a positive ROI. Tim concluded by outlining that the government has unveiled its most comprehensive strategy to date in driving efficiencies and cutting costs in public sector procurement by 20% and eTrading is an area which has significant implications towards achieving that target.

Next, the workshop focused on exploring whether there are technology, cost and process barriers and if the industry requires more from the government and the EU to progress the wider adoption of eTrading. There was overwhelming consensus (80%+) from the open survey that technology (including their own organisations’) is ready for eTendering and that eTendering reduces costs. Around 60% believed that it is the lack of awareness of, or belief in, the cost benefits that is inhibiting progress. Over 70% identified eTrading as being predominantly about process (with cost and sustainability being the two other less recognised aspects) with over 50% considering eTendering speeding up the process and 27% facilitating collaborative projects. 86% reported that they believe the government and the EU have a role in promoting eTrading with similar for the government mandating eInvoicing in the public sector. Around 42% believed that the process workshop theme is the most important area to unlock the benefits of eTrading with 29% considering cost and benefits, 22% government and EU, and the remainder technology. Finally, 43% thought that moderate priority should be given to the importance attributed to improved sustainability with the remainder split between high and low priority. A number of issues were raised from the open discussion around these aspects including clarifying the cost model and benefits, education and awareness, resistance to change, wider adoption by the supply change to facilitate wider adoption, standard applications, establishing who gains the most benefit.

Next, Kerry Jones (Department of Business, Innovation and Skills) provided a keynote that provided a view from the UK government and EU in relation to delivering improved efficiency through electronic trading. Kerry began by stating that IT skills only 2-3 years ago was low within local authorities but today there was much more interest in IT. She then outlined that the main focus for BIS is on growth and that the prime minister’s growth agenda is focused on completing the single market which will add €600bn to the EU economy along with facilitating  reducing the cost of setting up businesses within Europe and addressing the current lack of finance in setting up a business. While the single market is not in place, Kerry stated that it is gathering momentum. She discussed that the Services Directive although not yet fully implemented will enable businesses to establish what they need to do, while the MRPQ Directive is being re-examined in 2012 to regulate professions (with the exception of health) and will modernise minimum training standards, improve collaboration between authorities, and promote online applications. Next, Kerry discussed the Digital Single Market which involves many directives and regulations with many gaps existing, but once fully implemented, this would add €800bn to the EU economy. The benefits of e-invoicing and the next steps for the UK government in relation the delivery of EU forum and work streams along with the finalising of the UK e-invoicing advisory group (UKeAG) forward work programme tasked with promoting the use of e-invoicing were presented. Finally, Kerry outlined that the UK is leading an important work stream concerned with the exchange of experience and best practice. ... more>