Study by Itella Information:
Electronic letters appeal to most SMEs
09.05.2008
According to a study commissioned by Itella Information, two-thirds of Finnish SMEs, municipalities and organisations would like to send letters through electronic channels. Of the respondents, 87 per cent said that they send invoices, but at present, only one in four are ready for electronic invoicing.
- Small and medium-sized enterprises are clearly interested in shifting to electronic invoicing, but so far, e-invoicing penetration has increased rather slowly. The wish to shift to the new system is motivated by eco-friendliness, faster invoice processing, improved customer service and ease of use, says Miikka Savolainen, Director at Itella.
A total of 70 per cent of the respondents are convinced that paper communication will be reduced and electronic communication will gain ground. On the other hand, about one-fourth do not expect a significant drop in paper communication. A shift to electronic transactions is being encouraged particularly by the prospect of cost savings, improved customer service, ease of use and remaining abreast of trends.
- Large companies are already rather well on the way to digitisation, and it’s clear that SMEs, municipalities and organisations will follow suit. For them, the carrot is ease of use, speed and cost savings, while the stick is that customers want to choose themselves whether to use electronic services or something else, Savolainen notes.
A previous study by Itella showed that 11 per cent of Finns use online services daily, e.g. place orders, make appointments, fill in forms or pay invoices. If those who use such services a few times a week are also counted, the result sees 35 per cent of Finns already using online services in one way or another.
Paper letters justified by customers’ age and computer skills
In relation to the total letter volume, electronic invoices are least used in the healthcare sector, small financial sector companies and organisations.
- One reason for the use of paper letters and invoices was that not all customers are able to receive electronic messages, due to their age or lack of computer skills, for example. Therefore, the best way to promote digitisation is to offer a service where recipients can define whether they want to receive messages and invoices electronically or on paper, Savolainen says.
Of all the respondents to the study, 77 per cent have offered their consumer customers electronic transaction services. Among non-commercial organisations, this figure was only 58.
- Finnish SMEs, municipalities and organisations could be encouraged more strongly to digitise their services. The easier it is to implement electronic invoicing, for instance, the lower the threshold to do it. Itella Information is collaborating with more than 100 Finnish software companies in order to enable all organisations to adopt digital services easily and smoothly, Savolainen stresses.
The earlier study commissioned by Itella revealed that Finns have a positive impression of digital services. Finns would prefer to receive receipts, bank statements, bills and payslips, for example, in electronic format. They would also like to receive property-related messages electronically, e.g. fund reports and other investment materials, warranty certificates and insurance documents. A third major purpose of use would be receiving and archiving prescriptions, notices of dentist appointments, laboratory results and other health-related messages, as well as messages associated with taxes, building permits, day-care decisions, the confirmation of a student’s admission to an institution and other decisions made by the authorities.
The study was conducted by Market-Visio, which interviewed companies and other organisations that mainly send letters to consumers.
More information:
Miikka Savolainen, Director, Itella Information, iPost Services, tel. +358 40 753 6484
(e-mail format: firstname.lastname@itella.com)
Itella Information is a partner for the processing, management and delivery of corporate customers’ information flows. We offer the most flexible and efficient services for organisational invoicing processes, supply chain integration and document management automation. By favouring the latest technology and best practices, we provide added value to customers. We operate in Finland, Sweden, Norway, Denmark, Germany, Estonia, Latvia and Lithuania with a staff of 1,600 professionals. In 2007, we posted net sales of EUR 201 million. Itella Information is an Itella Group company.
www.itella.com/informationlogistics
