Growth from Real-Time Economy
In Real-Time Economy environment all the transactions between business parties are in digital format, increasingly automatically generated, and completed in real-time both from business and IT-processing perspectives. In practise this means that orders, order confirmations, invoices, and payments flow from system to system without delays. This enables electronic archiving, electronic book-keeping, and automated accounting. The benefits for society are substancial considering productivity and environment.
Actually all the pieces exist already – we just haven’t capitalised on them yet. RTE is a new paradigm that requires change in mentality. There is no space for grey economy in an environment with automatic reporting, accounting and tax payments. It is aimed for entrepreneurs and public sector innovators alike, who want to focus on their main activity and reduce administrative bureaucracy in accordance with standards and legal framework. They prefer simplicity, convenience, real time transparency and low transaction costs that the new way of doing business offers.
In addition to the efficiency-benefits for the companies and the governments, this digital platform for doing business makes it possible to create real-time monitoring and forecasting of the national economies by gathering information directly from e-invoicing and salary-payments. This would be like a weather forecast service where one can drill down into different industries and locations.
Where to begin on EU-level?
There are two main areas which are building the foundation for capitalizing benefits of real-time economy.
1. Automation of administrative processes based on
- structured e-invoicing, bank statements and receipt information
- salary payments and reporting
2. Real-time predictive analysis or forecasting of national economies in EU based on real-time data flows (such as e-invoicing, automated accounting and income-reporting)
- Direct cost savings in enterprises (and in the accounting services they use)
- Lower risk costs (credit, currency and counterpart)
- Better (real-time) view of financials - better cash management and lower financing costs
- Workforce can move from administration to more productive work
- Lower costs in public sector (automated reporting)
- Smaller grey economy
- Better forecasting of economy
- Vehicles for harmonizing EU-practices
- Smaller CO2 emissions (over 10m tons by e-invoicing only)
Download the full article “Growth from Real-Time Economy”.
Fredrik Jansson is Tieto’s leading expert on Real-Time Economy and also has a solid experience from building public sector digital services.
In Tieto Fredrik acts as a program manager for Real-Time Economy related topics and projects. Fredrik is also a member of the steering group and an advisor for the joint effort to implement Real-Time Economy in Finland and Estonia by the Finnish and Estonian technology associations.