Transforming use of business data ...

Vision

Vision

The SmartGovernment vision is that of a data driven Nordic region, where data and digitisation enable value creation by sharing data across the region in an automatic, intelligent and secure manner.

The vision can be realised through interoperable ecosystems of digital solutions. The ecosystem provides real time business data for Business-to-Business and for Business-to-Government, and meets the need of Nordic SMEs for less administrative burdens, innovation and growth.

Nordic SmartGovernment is thus a driver of an integrated Nordic region, which is the ambition of the Nordic Prime Ministers.

SmartGovernment is an idea of making digital solutions a part of a digital ecosystem, which supports exchange of real time data between a multitude of systems and authorised parties. The ecosystem supports work processes and thus manual entering of data is replaced by automatic processes, which increases the quality of data. Such an ecosystem enables easier access to data for innovation, as data becomes available for development of new products and services. The value of making financial data available to B2B in the Nordic region is estimated by EY to be approx. 200 billion DKK yearly from 2027.

The Nordic SmartGovernment project has the SMEs financial data in focus. However, in principle, the SmartGovernment vision encompasses all kinds of data which is now reported from businesses to government authorities.

Watch this video for more details on the automated data flow between businesses and government:

Watch a video about Smart Government

Background

Background

The Nordic societies are highly digitalised with advanced digital solutions, as well as a digitally competent business community. However, the digital development is only to a limited extent coordinated, which means that the potential value of data, digitalisation and automation is not fully extracted. To a large extent digital solutions are developed as separate containers and systems, with the result that businesses are required to submit the same data numerous times, in different systems, and sometimes even on paper. Moreover the data is not available for new business opportunities.

Annual Reports are required to ensure transparency and trust in the market. Today the businesses’ situation may change rapidly, but Annual Reports do not reflect sudden changes, and thus the report is more or less obsolete. However, to many users, this is still the best data available. This is not adequate in a highly competitive international market. In addition, government regulation and administration inflicts heavy administrative burdens upon the SMEs as a result of the reporting requirements. In principle, the same financial raw data is basis for business reporting to Tax Authorities, Business Registries and National Statistical Institutes. The uncoordinated requirements and the non-automatic processes behind financial reporting are estimated to impose administrative burdens on the Danish SMEs which amounts to approx. 6 billion DKK yearly. There are similar analyses from Norway, suggesting at least as heavy burdens in this area in Norway as in Denmark.

Benefits

Benefits

The main benefits of the ecosystems may be summed up as follows:

  • Less administrative burdens for SMEs by automatic financial processes and reporting
  • Improved access to data quality for innovation and new data based services, such as BI and credit information
  • Improved data for more efficient government and administrative purposes, such as policy initiatives and automatic control (based on machine learning)
  • Transparent market and increased trust in business partners
  • Fair competition in the market with improved transparency and tax control
  • Better competition and a more effective Nordic market – and thus a higher value creation in our region.
Process

Process

The process consist of the following 4 phases:

Summary of the results of Nordic SmartGovernment 1.0 and 2.0

  • Data model – data/information management and governance is elaborated.
  • Security aspects are addressed and concluded manageable.
  • A data warehouse based on standardised interface and structured detailed transaction data can serve both the businesses and government by serving the needed information in real-time for both parties.
  • The business case for B2B processes on financial information showsyearly benefits in the range of 250 to 270 billion NOK.
  • More than 70 key stakeholders in the region were interviewed about the SmartGovernment vision on financial data. In general, the Nordic stakeholders believe in the vision, and find benefits greater than the possible risks.
  • An overall reference architecture is outlined.

Next step

All five Nordic Business Registries and the Finnish Association of Accounting Firms are working together on SmartGovernment. Our ambition over the next two years is to define both technical as well as regulatory needs, to test automated flows of financial data in B2B as well as automated reporting B2G. This will be performed in collaboration with both public and private partners, and on the basis of business processes and user needs.

We have defined five work packages and we plan to work closely together in a an agile set-up, which means that the groups meet frequently, share responsibility to define tasks and divide actions to be taken between them, and are able to respond to new insights on the road.

 
Knowledge Sharing

Knowledge Sharing

Deloitte on SmartGovernment data
Report from June 2016 providing a preliminary and high level data model.

 

Deloitte on stakeholder analysis
Stakeholder analysis based on interviews with more than 70 key stakeholders in the Nordic region. Some obstacles are identified, but overall SmartGovernment is seen in a positive light, and its benefits are rated higher than obstacles and risks.

 

EY on B2B
Report from January 2018 showing substantial benefits for SMEs when sharing and utilising data more efficiently in the business-to-business processes and internal business processes. The value of making financial data available to B2B in the Nordic region is estimated to be approx. 200 billion DKK yearly from 2027.

 

KMPG on security analysis
High-level security analysis from June 2016 evaluating the possibility to create a SmartGovernment environment in which data is handled in a secure manner, that prevents unauthorised access and data loss while still providing the envisioned benefits to enterprises and government institutions.

 

TALTIO on test of data warehouses

The PoC has demonstrated the technical possibility of SmartGov:

1. How eInvoice, eBank account statement and eReceipt xml (structured input data) files can be transferred to TALTIO format and loaded in a new kind of database
2. How the financial statements, tax return and  VAT report can be automatically extracted and reported to Gov in XBRL format from the data base
3. How the businesses can get detailed information in real time from data base – by using different applications

 

Nordic SmartGovernment Folder

Collaboration

Collaboration

With financial support from Nordic Innovation, the Nordic collaboration on SmartGovernment started in 2016.

Today all five Nordic business registries are engaged in the collaboration, together with the Finnish Association of Accountants.

As business registries, we are concerned with the businesses’ annual reporting. The idea of SmartGovernment arose in Denmark, motivated by a wish to, in general, remove the businesses’ administrative burdens related to mandatory reporting to the government. In Denmark there is now a particular focus on making a POC on automatic reporting of financial data, under the name Automatic Business Reporting.

In the Nordic collaboration we have worked on describing the business layer of an ecosystem for efficient dataflow between the actors involved – both small and medium sized enterprises, as well as government authorities, service providers, creditors and other actors utilising financial and economic data in their business processes, services or products.

We believe in a digital ecosystem with both privately and publicly owned solutions, where different actors work together to ensure efficient data flow. How precisely this should be, we do not know yet, but we wish to engage stakeholders in a dialogue to further explore this together with competent and innovative actors.

Nordic SmartGovernment is a collaboration between the following organisations and countries:

  • The Internal Revenue, Iceland
  • The Brønnøysund Register Centre, Norway
  • The Danish Business Authority
  • The Swedish Companies Registration Office
  • The Finnish Association of Accounting Firms
  • The Finnish Patent & Registration Office
  • The Finnish Ministry of Transport and Communications (From 2016 to 2017)
Iceland

Iceland

 Norway

Norway

Denmark

Denmark

Sweden

Sweden

Finland

Finland

Contact

Contact

Denmark: Kjersti Lunde / kjelun@erst.dk
Finland: Pauliina Päivinen / pauliina.paivinen@prh.fi
Iceland: Skúli Jonsson / skuli.jonsson@rsk.is
Norway: Håkon Olderbakk / hakon.olderbakk@brreg.no
Sweden: Nina Brede / Nina.brede@bolagsverket.se