Basware #2 + Hub Alliance #3 - Basware joins Hub Alliance
It is good to hear that Basware has formally joined the Hub Alliance, increasing the member companies to six, which includes founding members Asite, Causeway Technologies and Burns e-Commerce from the UK in addition to more recent members CertiPost from Belgium and Liaison Technologies form the USA. During my assignment with Causeway Technologies, I undertook the obligation to bring Accountis on-board. Whilst there is significant interest from Accountis in principle, nothing positive has come out of it to date - which I must declare as a personal disappointment given my close links to Accountis’ Founder Rhys Jones - as well as knowing the most of their Executive Team.
It is my belief that an organisation such as Hub Alliance needs to open up to non EIPP hub operators - the key role should be market education in addition to promoting interoperability between hubs. At present, they see themselves as a closed unit of EIPP hubs. I actually think a vital opportunity has been lost. But I am glad to see the growth of the Members, in this case by one.
There are also competing organisations recently been formed in Europe with the same intentions in mind. Does this mean that there need to be a Super Alliance connecting all the Hub Alliances? It’s just crazy - why not join the Hub Alliance? This will certainly improve resource utilisation as well as market awareness.
References:
- BasWare acquires my neighbour Digital Vision Technologies
- Could Hub Alliance be bigger than OB10 and Ariba Supplier Networks?
- Hub alliance to banks? rescue
- Hub Alliance - My first meeting
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Sphere It
OK, so it was only a matter of time before Manoj got me to add to the Blog!
On the point of the Hub Alliance opening up, I would like to put the record straight. The Hub Alliance is open and we have been delighted to see more hubs joining. The Hub Alliance is an affiliation of Business-to-Business eTrading service providers. The point Manoj makes is that there is also a need for an organisation to promote EIPP and he kindly sees the HA as a good vehicle for this. At this time we are focussing on creating an international network of interconnected Hubs and so have not yet risen to this additional challenge.
As for the “competing organisations”, this is not a competitive activity. Although we all hope for a simple life, experience has shown that multiple options do tend to arise. I would encourage all to look at the Hub Alliance website (www.huballiance.org) as this is a genuine move to cut across traditional commercial boundaries and achieve something to help improve business process efficiency. All comments welcome.
I must admit Tim is right. I tend to get bit emotional when opportunities are lost to promote EIPP. It was the same at ExPP Summit this year. The problem to date is lack of sufficient EDUCATION EDUCATION EDUCATION. Not the technology. Technology evolves and has been ready for number of years now - some with well proven concepts.
Yes we do not have a body to promote EIPP. We have Hub Alliance. I see the Hub Alliance taking this additional role unless something else crop up - it would have to be sponsored by Vendors as I cannot see users funding such an activity at this stage. I do not see BASDA as the right institute to promote this.
I am trying to do what I can through here as well as through ebdex, which now has its own blog plus forum. I can also allow others to blog through ebdex as the site is very flexible.Tim fancy an oppotunity? You would be a great blogger. I know you will love the challenge. Don’t worry about the time constraints - just don’t go to sleep!
Lot more work to do. Sponsorship is needed if some of these activities are to gain momentum.
I’ve just come accross this post on Hub Alliance, I think it’s good to hear that the alliance is growing (I always supported market standarization and openness).
However, I also read the related IBS Publishing article , and the question that arises is, is it only a matter of education and EIPP evangelization? Why are banks reluctant on integrating with HA?
I think the real issue is that the industry is not completely mature in terms of how buyers-sellers-EIPPs-banks will interact, and how network structures will be formed. It is not only about EIPPs, B2B and the Internet. When thinking on improving working capital management, corporates study the optimization of two main factors: inventory and cash flows (the latter in general translates to finding new ways of financing, in other words establishing/improving relationships with the financial institutions world).
Will SwiftNet TSU serve as an integration network? Will European companies and banks adhere to SEPA eInvoicing and eReconciliation add-on services? What are the forces around STP (from PO submission to financing and payment) and how/when will that STP be standardized among corporates, EIPP networks and banks?
Is it education, or that nobody wants to burn money ahead of time ?….
Manoj, I always read your blog.
Regards
Pablo
Pablo, I covered the story here before Hub Alliance is for co-operation among EIPP providers - its brief does not include market education nor to link with non EIPP providers. I invited Hub Alliance founder member Tim Cole from Causeway Technology guest blog - hopefully he will find time to do it sooner than later
There are many initiatives in place, including BASDA taking a stand on developing a common framework for data exchange in early 2000’s. SEPA is now hot. STP comes from Supply Chain Finance point of view. All pulling in different directions, some to do with working capital management and others to do with cost savings and business process optimisation. There isn’t a single body out there who is looking at the problem holistically. You raise number of issues that need much debate.
My point is that it’s not completely clear how the structures will form; main options for eInvoicing are:
Buyer < -> EIPP network < -> Supplier
Buyer < -> Bank (eInvoicing service) < -> Supplier
Buyer < -> Buyer’s Bank < -> Supplier’s Bank < -> Supplier
Buyer < -> Buyer’s Bank < -> Network of banks (i.e. TSU/SEPA) < -> Supplier’s Bank < -> Supplier
In all of these structures (including the first one), banks will be involved in clearing, settlement and financing. Many companies are waiting for banks to see where they’re heading.
Best
Pablo
Yes, there are also non banks involved in this - factoring and discounters. Should not ignore supplier end activities such as those provided by Esker, Transcepta and others. Its a big mess when you think about the number of options available