automation and optimization of financial processes
TRANSCRIPT
Automation and Optimization of Financial Processes
Copyright © 2006, 170 Systems, Inc. All rights reserved. 2
Finance Professional’s Challenge
Reduce costs—Increase throughput without additional resources—Decrease cost per transaction
Strengthen controls to minimize risk—Comply with regulations (Sarbanes-Oxley)—Enforce consistent processes across the organization
Improve service to business units and suppliers—Increase speed, accuracy and visibility—Reduce burden on the line-of-business managers
Do this all at the same time and make it pay for itself
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Barriers to Resolution
Over 80% of all transactions are still paper-based—“The paperless office is one of the worst predictions in the history
of technology” – Forbes, May 2001
ERP Systems are not designed to solve the problem—The “system of record”, but constructed for data not processes—Fails to enforce/implement “best practices” and compliance—Cannot address unstructured information that initiates
most transactions
Traditional document management solutions aren’t architected for transaction processing—Multiple representations of the data and transactions—Designed for archival and retrieval—Customer-specific solutions delivered via custom code
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World Class Finance Performance
World Class Transaction Processing Companies have achieved better cost results by—Streamlining and automating routine processes—Leveraging the functionality of technology to
Implement best practices to drive increased accuracy, integrity, and risk mitigation
Eliminate the paper Automate workflow of electronic or imaged invoices Utilize the Internet for increasing speed and availability
—Mandating integration of their ERP applications in a unified platform
—Build in integrity monitoring software ensures compliance and protection from fraud
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170 MarkView Solution
Technology
Process
People
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Fixed Price Implementations
Depth of Experience Global 2000 Customers Domain Expertise
Best Practices Business Processes Shared services
170 MarkView Solution
ERPIntegration
WorkflowImaging & Markup
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170 Systems Customers are the World’s Leading Companies
Aerospace/Defense
General Dynamics Sandia National
Labs
Communications
AT&T BellSouth British Telecomm Equant O2 Verizon Vodafone
ConsumerGoods
Electronic Arts Mattel Sony
Education
Harvard Ryerson University San Diego State Stanford U. Pennsylvania
Energy
Atmos EnergyKerr-McGeePlains All AmericanSmith InternationalWilliams
Engineering/Construction
Carillion Granite Macerich Michael Baker Corp. M.A. Mortenson Network Rail Suffolk
Financial Services
AmeriquestCignaCitigroupD&BE-Trade JP Morgan ChaseMarshMasterCardTD Bank
Food/Beverage
Schreiber Foods J.M. Smucker
Healthcare
PacifiCareSelect MedicalUniversity Hospitals
Manufacturing/ Supply
Arrow ElectronicsGEToyota
Retail
NordstromSportsmen’s Warehouse
Starbucks
Public Sector/Government
NIHNYC HousingScottish Legal Aid Board
TSAUS DOT US FAA US CDC US Coast Guard
Technology/Information
Biogen IdecCanon Juniper NetworksNCRRed HatReutersSapientSASSeagateYahoo
Travel/Entertainmen
tCendant
GaylordMaritzTUI
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170 MarkView Applications
170 MarkView Financial Suite—Accounts Payable—Expense Management—Procurement—Accounts Receivable—General Ledger—Asset Management—Project Re-Billing—Human Resources
The 170 Systems Solution for Accounts Payable
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Invoice lifecycle
Capture
Entry Review/
Resolve
Coding
Approvals
Payment
Audit
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Invoice Receipt, Capture and Entry
Entry Review/
Resolve
Coding
Approvals
Payment
ManualEntry
Capture
ERP Environment
Automated Entry
ImageAutomatically
Attached
0011001 111XML
OCR
MarkView Self
Service Invoice
Scan/Fax
Supplier Network
Copyright © 2006, 170 Systems, Inc. All rights reserved. 12
ERP Environment
Optimize your ERP
Corporate Data Organizations Sets of Books Hierarchies Vendor Supplier Lists Chart of Account
Information Business Rules Materiality Limits Etc.
Leveraging your
investment
in ERP, Data and
Resources with no
Duplication
Entry Review/
Resolve
Coding
Approvals
Payment
Copyright © 2006, 170 Systems, Inc. All rights reserved. 13
Extensive Workflow Options
Entry Review/
Resolve
Coding
Approvals
Payment
ManualEntry
Capture
ERP Environment
Automated Entry
ImageAutomatically
Attached
0011001 111XML
OCR
MarkView Self
Service Invoice
Scan/Fax
Supplier Network
PO Based Non-PO Based Pre-Approved Self Service Supplier
Maintenance
170 Systems Context Sensitive Workflows
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User Interface
Metrics, Analytics and Reporting
Metrics, Analytics and Reporting
Entry Review/
Resolve
Coding
Approvals
Payment
ManualEntry
Capture
ERP Environment
Automated Entry
ImageAutomatically
Attached
0011001 111XML
OCR
MarkView Self
Service Invoice
Scan/Fax
Supplier Network
PO Based Non-PO Based Pre-Approved Self Service Supplier
Maintenance
170 Systems Context Sensitive Workflows
Copyright © 2006, 170 Systems, Inc. All rights reserved. 15
Case Study — Juniper Networks
2005 Annual Net Revenue @ $2B Global workforce of 4,600 employees Finance located in four key theaters
— Sunnyvale, Dublin, Hong Kong, Bangalore
Time-consuming and expensive process1. Receive paper invoice2. Look up authorizer on purchase order3. Email invoice details to authorizer
to approve invoice via email4. File invoice waiting for approval
in file drawer5. Wait for approval via email6. Follow up for approval if no response
Too Slow — Cycle time on average 8 to 9 days Could Not Scale Globally
7. Receive approval8. Pull invoice from file drawer9. Key invoice in ERP system10. File invoice in AP file
storage11. Execute payment12. Pull invoice from file when
inquiries received
Copyright © 2006, 170 Systems, Inc. All rights reserved. 16
Global Juniper Accounts Payable Metrics
WW Historical 2003 (Pre
SSC)
WW Current 2006
# of AP Employees
# of Invoices Processed
% of Manual Invoice/PO
Monthly Trans per FTE
Length of Backlog
Minutes/Invoice
Cost/Invoice
% of Process Automated
5
62,000
45%
1000
8 to 9 days
9.2 min
$4.72
48%
12
416,817
75%
3000
2 to 3 days
3.4 min
$1.78
89%
Copyright © 2006, 170 Systems, Inc. All rights reserved. 17
Gantry Group Study: 7.4 month payback and 300% ROI
Benefits of Automation…and 170 Systems’ Solution
Reduced Costs—Optimize cash management: Capture all discounts, eliminate penalties,
introduce dynamic discounts— Improve productivity for Finance, Line of Business managers, employees—Reduce operating costs: eliminate costs of copying, filing and
transporting all related documents
Strengthened Internal Controls— Increase control and visibility —Automate segregation of duties—Smoother audits due to on-line access to audit trails and backup
Improved Service Levels and Visibility—Self service for Line of Business managers, employees, suppliers,
customers—Reduce cycle times to less than 5 days—Reduce process errors—Performance metrics and monitoring
MarkView for Oracle Accounts Payable Demonstration
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Maritz Inc.
Problem: Cost control
250,000 invoices per year with expected growth of 100,000
Redeployed Staff — 7.5 FTE’s ($360,000/year)
Reduced total processing time by 20,000 person-hours
Increased AP productivity from 50 invoices/person/day to over 200
Realized over $1.5M annually in additional early payment discounts due to reduced processing time
The world’s largest source of integrated performance improvement, travel, and market research services
Source: OAUG Whitepaper 2004
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Select Medical
Problem: Managing rapid growth through acquisition 30,000 invoices / 3,500 expense reports per month Document transport cost savings: $225K/year Redeploy staff: 3 people ($150K/year) Filing and onsite storage eliminated: $25K/year Late fees, early payment discounts: est. $100K/year Other tangible benefits
—Web-based invoice query tool – reduced AP staff time—Ability to conduct audits and inquiries
170 MarkView: AP, Expenses, Assets, General Ledger
The leading operator of long-term acute care hospitals in the US – 98 hospitals and 740 outpatient clinics
Source: OAUG Whitepaper 2003
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170 Systems – Leading Provider of Solutions that Automate and Optimize Financial Processes
Depth of Experience and Domain Expertise—16 years+ of Experience—Global 2000 customers in 40 countries—Extensive best practices
Advanced ERP Integration—Certified with
Oracle e-Business Suite PeopleSoft Enterprise Applications mySAP ERP Business Suite
Focus—Process automation product, not a platform—Configurable solution—Proven ROI
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170 Systems Select Customers
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170 Systems
Leading Provider of Solutions that Automate and Optimize Financial Processes
Business Process Automation Focus
Advanced ERP Integration
Depth of Experience and Domain Expertise
Complete Product
Copyright © 2006, 170 Systems, Inc. All rights reserved. 24
170 Systems – Leading Provider of Solutions that Automate and Optimize Financial Processes
Business Process Automation Focus—Beyond document capture to focus
on the entire process—Intelligent Mark-Ups that initiate workflow—170 MarkView Express: better decisions faster for
line-of-business managers —170 MarkView Insight: Visibility into
productivity, cash flow, and potential fraudfor finance managers
Copyright © 2006, 170 Systems, Inc. All rights reserved. 25
170 Systems – Leading Provider of Solutions that Automate and Optimize Financial Processes
Business Process Automation Focus
Advanced ERP Integration—Certified with
Oracle e-Business Suite PeopleSoft Enterprise Applications mySAP ERP Business Suite
—No duplication of ERP data—Integrated workflow and processes—User input validated against ERP in real time
(GL account codes)—Leverage ERP user hierarchy and single sign-on
Copyright © 2006, 170 Systems, Inc. All rights reserved. 26
170 Systems and Oracle Advanced integration with Oracle
—Integrated user interface—No duplication of data—Leverage ERP's user hierarchy and security
Highest level Oracle partner (since 1990)—Oracle Certified Advantage Partner Program—Oracle Cooperative Applications Initiative (CAI)—Oracle Open Tools Initiative (OTI)
"As a Certified Advantage Partner, 170 Systems continues to bring great value to our mutual customers through 170 Systems’ integrated product offerings.”
- Doug KennedyVice President, Worldwide
Alliances, Oracle
Copyright © 2006, 170 Systems, Inc. All rights reserved. 27
170 Systems – Leading Provider of Solutions that Automate and Optimize Financial Processes
Business Process Automation Focus
Advanced ERP Integration
Depth of Experience and Domain Expertise—Demanding Global 2000 customers—Global experience: shared service centers,
off-shoring, outsourcing—Top-tier ERP experience: SAP, Oracle,
and PeopleSoft —Proven ROI: 7.4 months average payback—Best practices in Finance—Strengthening controls
Copyright © 2006, 170 Systems, Inc. All rights reserved. 28
170 Systems – Leading Provider of Solutions that Automate and Optimize Financial Processes
Business Process Automation Focus
Advanced ERP Integration
Depth of Experience and Domain Expertise
Complete Product—A true software product: certified,
documented, upgradeable—More than AP – a full Financial Suite—End to end automation: imaging, OCR,
e-invoice, workflows, exception processing,supplier portal, analytics
—“Fixed price” implementation—Complete portal
Copyright © 2006, 170 Systems, Inc. All rights reserved. 29
The Non-PO Invoice Process
“Get Next”
Auto Document
Association
Read / Write access to Chart of Accounts
Hold released
in ERP
Use of ERPHierarchy
Electronically Forwarded and Recorded
Paper & Scan
Fax
HeaderInformati
on
Final AP Review
Code
Copyright © 2006, 170 Systems, Inc. All rights reserved. 30
The Self Service Invoice Process
Auto Document
Association
ERPHierarchy
Hold released
in ERP
Read / update access to Chart of Accounts
Record created in ERP
Liability captured
Header & Coding
Information
(by field)
Fax Back-up
Final AP Review
(if desired)
Copyright © 2006, 170 Systems, Inc. All rights reserved. 31
Potential Payment Request: Expense Processing Future State
Enter Expense Report Detail
PrintBar-
Coded Cover Sheet
FaxReceipts
Automatic
Association
with Report
Routing
Payablesand Audit