Aalto Service Factory –

Real-Time Economy

thematic group

Esko Penttinen, Aalto University School of Business Research manager, Aalto Service Factory

Director, Real-Time Economy Competence Center

Chairman, XBRL Finland

Three leading universities in their own fields became Aalto University in 2010

1849 Technical School of Helsinki, a university since 1908

1871 School of Sculpture, a university since 1973

1898 Helsinki Business College, a university since 1911

1995 Establishment of joint research and education program IDBM

2005 The idea and vision of a new university is published

2007 The preparations for a new university begin

2009 The President is appointed and the Student Union

is established

2010 The amended Universities Act comes into force

2020 2010 2009 2007 2005 1898 1871 1849

2020 Objective: Aalto University is a world-class university

2010 Aalto University's operations begin

Helsinki School of Economics (HSE)

University of Art and Design Helsinki (TaiK)

Helsinki University of Technology (TKK)

The Aalto University

community: 75,000 alumni,

20,000 students, 5,000 staff

members, 350 professors

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Aalto University - Where Science and Art meet Technology and Business

• Aalto University

– School of Arts, Design and Architecture

– School of Chemical Technology

– School of Business

– School of Electrical Engineering

– School of Engineering

– School of Science

• Four Factories are platforms combining the expertise of the different Aalto University

schools in the fields of product development, health, media, and services.

– Design Factory

– Health Factory

– Media Factory

– Service Factory

Today, Aalto University has six

schools and four factories

• Promote multidisciplinary collaboration and community

– Cooperation between two or more departments from different

schools

– Cooperation between researchers, artists, students and

collaborators from academia, industry, and society

• Create new methods for cooperation

Key strategic Goals of Aalto

Factories

• “Platform” to promote face-to-face cooperation and regular dialogue

• Facilitate and coordinate teaching and learning

• Promote networks between students and practitioners

• Facilitate and organize events and workshops for researchers and practitioners

• Service Factory facilities and hot desks can be used by academics and practitioners

• “Gateway” to facilitate information flow

• Disseminating scientific knowledge on services (newsletter, blog etc.)

• Matchmaking academics-practitioners with same service-related interest

• “Funding” to support service-related research and educational activities

• Provide seed funding for Thematic groups and educational activities

• ASF staff’s research

How? Activities to promote

multidisciplinary collaboration

• Aalto Apps & Os – open innovation ecosystem for Aalto community (Kimmo Karhu)

• Aalto LAB Mexico (Susu Nousala)

• Aalto Smart Parking Service Group (Olli Pitkänen)

• CT_Commons – A Citizen Toolkit as Urban Commons (Joanna Saad-Sulonen)

• Open Service Innovation Observatory (OSIO) (Yulia Tammisto)

• Perceived value of music services (Toni-Matti Karjalainen)

• Real-Time Economy (Esko Penttinen)

• SERMO – Service Modularity Enabling New Innovations, Supply Chain Sustainability

and New Service Structures (Anu Bask)

• Service Design With And For Citizens (with&for) (Tuuli Mattelmäki)

• Talking buildings (Pedro Aibeo)

ASF thematic groups

Real-Time Economy – Service

Innovation program on Financial

Processes

XML PDF

XYZ

Ltd.

Companies are torn between two types of

electronic data: structured and unstructured

Full SEPA

2006 2008 2009 2010 2012

FVC FIA1 FIA2 SME50

Full SEPA (Full Single Euro Payments Area) -SEPA payments

-E-invoicing

FVC (Full Value Chain) - Harmonizing value chain development

FIA 1 (Fully Integrated Accounting 1) 1.1.2009-30.6.2010 - E-accounting reference

- Standard for Electronic Financial Reporting

-Global e-invoicing standard ISO20022

-European e-invoicing work

FIA 2 (Fully Integrated Accounting 2) 1.8.2010-30.12.2011 - Electronic Financial Statement and XBRL

- Fully Integrated Payroll (FIP): Payroll reporting codes and practices

- Real-Time VAT

- European e-invoicing work

SME 50 (’Administrative costs in half…’) 2012-2013 1. AFA – Automated

Financial Administration

2. FAR – Fully Automated Reporting

3. ERM – Enterprise Risk Mitigation

4. SIM – Sustainability Intelligence Management

Real-Time Economy program

Real Time Economy: National Co-innovation Program

CONSUMERS Kuluttaja-

tutkimuskeskus, TeliaSonera, FK,

… SME’S

AgentIT,Dicole, Finansia,Hawcon,Hammerkit, Maventa, ProCountor, ...

BANKS Aktia, OP-Pohjola, Nordea , Sampo, Suomen Pankki,

...

COMPANIES ALD-Automotive, Finnair,LindströmPretax, UPM-Kymmene, Wärtsilä, Asiakastieto, ...

ACADEMICS Aalto, Hanken,

ÅA, CWRU ,Naval Postgraduate

School Monterey, University of Nevada, ...

OPERATORS & SERVICE

PROVIDERS Aditro,Basware,

OpusCapita,Telia-Sonera,Tieto,

Itella, …

PUBLIC ORG. Hansel,

Kuntaliitto, PRH,Tieke,

Valtiokonttori, vero, VM, TEM,

STM, Kela, ...

INTEREST GROUPS

FK, Taloushallinto-

liitto, Keskuskauppak., Suomen Yrittäjät,

EK, Sitra, ...

Research themes in RTE

• Diffusion factors in e-financial administration

• Barriers/resistance to change in financial administration

Innovation and Diffusion

• 3-corner vs. 4-corner models in operator markets

• E-invoicing market analyses

• Pricing issues and revenue logics of e-invoicing

Business Models

• Selection of service provider in e-invoicing

• Prioritizing suppliers in the move to e-invoicing

Decision making

• Business performance management and risk management

• Decision making tools – real-time dashboards

Business Intelligence

• User study on e-invoicing platforms

• Usability study of e-accounting systems

User Experience

• Researchers from information systems, accounting,

operations research coming together to study

outsourcing of disaggregated accounting services in the

cloud context

• HICSS2014 paper, journal version submitted

Example of multidisciplinary

research

Cloud systems permitting selective

outsourcing in SMEs

Customer Company

Accounting Firm

Processes

Client register maintenance

Product register maintenance

Sending sales invoices

Handling of sales invoices

Sending note of complaint

Sales ledger maintenance

Supplier register maintenance

Receiving purchase invoices

Handling purchase invoices

Handling purchase, travel & other costs

Purchases ledger maintenance

Personnel register maintenance

Basic payroll data maintenance

Payroll calculations

Preparation of balance sheet and income statement

Preparation and sending of VAT

Preparation and sending of annual salary reports

Preparation and sending of annual pension insurance reports

Periodic VAT payments

Salary payments

Payments for purchases, travel and other expenses

Monthly payroll tax payments

Sales 6%

Purchases 8%

Payroll 35%

Reporting 61%

Payments 22%

Level of outsourcing X%

Disaggregated processes

1. Outsourced

2. In-house

Sales

Client register maintenance Asiakasrekisterin hallinta

Product register maintenance Tuoterekisterin ylläpito

Sending sales invoices Myyntilaskujen lähettäminen

Handling of sales invoices Myyntilaskujen käsittely

Sending note of complaint Huomautuskirjeiden käsittely

Sales ledger maintenance Myyntireskontran ylläpito

Purchases

Supplier register maintenance Toimittajarekisterin ylläpito

Receiving purchase invoices Ostolaskujen vastaanottaminen

Handling purchase invoices Ostolaskujen käsittely

Handling purchase, travel & other costs Matka-ja muiden kulujen käsittely

Purchases ledger maintenance Ostoreskontran ylläpito

Payroll

Personnel register maintenance Henkilöstörekisterin ylläpito

Basic payroll data maintenance Palkkojen perustietojen ylläpito

Payroll calculations Palkanlaskenta

Reporting

Preparation of balance sheet and income statement Tilinpäätöksen ja tasekirjan laadinta ja

lähetys

Preparation and sending of VAT Kausiveroilmoitusten laadinta ja lähetys,

ALV

Preparation and sending of annual salary reports Palkkojen vuosi-ilmoitusten laadinta ja

lähetys

Preparation and sending of annual pension

insurance reports

Eläkevakuutusilmoitusten laadinta ja

lähetys

Payments

Periodic VAT payments Maksuliikenne, ALV

Salary payments Maksuliikenne palkat

Payments for purchases, travel and other expenses Maksuliikenne ostot, matka- ja kululaskut

Monthly payroll tax payments Maksuliikenne kausiveroilmoitus

Process characteristics

Information

intensity

Customer

contact

Asset

specificity Frequency Uncertainty

Global Service

Disaggregation

(Apte & Mason

1995)

Transaction

Cost Economics

(Williamson

1981)

1. High 2. Medium 3. Low

Framework

Decision to

outsource

disaggregated

services

Information

intensity

Customer

contact

Asset

specificity

Frequency

Uncertainty

Cloud-based

information systems

Global Service

Disaggregation

Transaction

Cost Economics

+H1a

-H2a

-H3a

-H4a

-H5a

-HXb

Findings

• Findings provide partial support for Transaction Cost

Economics

– in non-core services such as accounting, companies tend to

outsource risky services and services that require highly specific

assets

• Cloud makes it easier to outsource, especially

decreasing the effect of asset specificity and frequency

of transactions

• Esko Penttinen

• Contact info:

– esko.penttinen@aalto.fi

– +358-40-5754520

• Websites:

– http://www.servicefactory.aalto.fi/fi/

– www.rte.fi

– www.xbrl.fi

Thank you!