key strategies for best-in-class accounts payable2014-handout+3... · key strategies for...
TRANSCRIPT
2
Welcome & Introductions
• Matt Hein, Strategic Account Executive
• Ed Modjeska, Director of Strategic Accounts
4
Naviant Overview
Founded 1986
Headquartered in Madison, WI
2,500+ Global Customers
BPM-FocusedProcessPeople
Technology
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Unstructured Content & Ancillary Data
Unstructured Content & Ancillary DataUnstructured Content & Ancillary Data
Web Pages
Enterprise Applications
FaxElectronic Documents
FormsReports
Graphics, Video, & Audio
XML & Meta Data
Print Output
Ancillary & Disparate Data
Paper Documents & Files
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AP ROI Objectives
• Reduce Need for Physical Storage
• Reduce Manual & Duplicate Data Entry
• Eliminate Manual Handling & Routing Time
• Reduce Processing Costs
• Eliminate Duplicate Payments & Reduce Late Fees
• Instant Access to All Invoice Transactions &Supporting Documents
• Enhance Management Visibility & Controls
• Ensure Compliance & Audit Requirements
• Improve Vendor Relations & Reduce Payment Calls
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More Than Just Invoices…
• Cancelled Checks• Purchase Orders• Packing Slips / BOLs• Credit Memos• Advance Shipping Notice• Remittance• Collection Notices• Expense Reports• Vendor Management
– Contracts– Contacts– Discount Structures– Incidents– E-Mail Communications– Credit Reports
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Enterprise Content Management (ECM)
• Enterprise Content Management (ECM)– Simple definition… scan & process paper
• Expanded Definition*– ECM is the strategies and tools used to capture,
process, access, integrate, measure and store unstructured content (paper, email, fax, reports, etc.) related to business transactions
• ECM Tools & Strategies Allow the Management of an Organization’s Unstructured Information, Wherever That Information Exists
*Source: AIIM (the community that provides education, research, and best practices to help organizations find, control, and optimize their information)
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Enterprise Information Management
80 00
90 10
ECM
EnterpriseContent
Management
DocumentManagement
CaseManagement
BusinessProcess
Management
DM BPM CM
MTM Founded Naviant Group Acquired
MTM Suite Expanded Naviant Evolution
IndustryEvolution
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Enterprise Information Management
Structured Data & User Interface
Unstructured & Ancillary Content
Capture, Recognize, Process, Access, Integrate, Measure & Store ECM
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AP Automation Process Considerations
Capture Recognize Process Integrate Access Measure Store
Email OCR/IDC Verify Data Validation ERP Reports Archive
Images
Fax Extract POExceptions
Create & Post Mail Dashboard Security
Mail/Scan Line Pairing
Non-PO Approvals Retrieval Mobile Metrics Records
Retention
EDI Validation Other Workflows
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Stages & Concepts of AP Automation
PayStream Advisors – Imaging and Workflow AutomationNaviant Group – AP Process Automation Best Practices
Cos
t Per
Invo
ice
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2
3
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Leve
ls o
f Aut
omat
ion
Stages of AP Automation
De-CentralizedLate ScanningManual IndexingManual Approvals
CentralizedEarly ScanningKey From ImageElectronic MatchingManual Workflows
CentralizedEarly ScanningKey From ImageAutomated WorkflowsAutomated VerificationsAutomated Postings
CentralizedEarly ScanningOCR/IDC ExtractionAutomated ValidationsAutomated WorkflowsAutomated VerificationsAutomated PostingsStraight-thru-ProcessingSelf Service Portals
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Best ECM Practices for AP
1. Early Capture & Process Automation
2. User Transparency
3. Reduce or Eliminate Keying
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1. Early Capture & Process Automation
• Capture as Early as Possible in the Process– Scan or electronically ingest emails & faxes– Eliminate lost or damaged documents– Eliminate intercompany routing / courier expenses
• Centralize Capture & Processing
The Institute of Financial Operations – 2012 Global Trends in Automated Data Capture in AP
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1. Early Capture & Process Automation
• Initiate Content-Centric Processes via Workflow– Process work faster and more accurately– Adhere to standardized rules and actions
• Schedules of Authority, approvals & exceptions– Allow system to facilitate non-value added tasks
• Notifications, routings & timers• Auto indexing & keyword lookups• Work load balancing• Ingestion of electronic documents
– Provide Audit Trail for Compliance & Visibility
• Mobile Workflow– Android, Blackberry, iPhone, iPad & Windows Mobile– Enhance accessibility & improve processing times for
remote employees
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1. Early Capture & Process Automation – Example
• Invoice Approvals– Scan or electronically ingest invoices upon receipt– Route electronically for Schedule of Authority approval– Manage exception processes electronically– Capture approvals and necessary transaction information– Route to accounting for keying / posting to ERP– Improve Procure-to-Pay
AccountsPayable
Approval
Key from Image
WorkflowIncoming Invoices Capture / Scan ECM AP ClerkReview
ERP
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2. User Transparency: LOB Integration
• Compliment Existing Systems w/ User Transparency
• Link Content for Quick Retrieval from ERP / LOB
• Extend Robust ECM Functionalities– Search, indexing, data sharing, related documents,
workflow… etc.
• Enable Advanced Processing Functions– Automate data validation– Automate transaction posting
• Integrate with…– ERP System(s)– Email– Microsoft Office– Mobile Devices
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2. User Transparency: Email & Mobile Integrations
• Extend: ECM Access to Mobile Devices & Email– iPhone– iPad– Android– Windows– Blackberry– Outlook– Lotus Notes– Novell GroupWise
• Engage: Users via Familiar Apps– Intuitive Email Access & Functions– Native Mobile OS Touchscreen Gestures & Navigation
• Execute Workflows• Create E-Forms• View Documents & Keywords• Query Searches
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3. Reduce or Eliminate Keying
• Stop Keying the Same Data to Both ECM & ERP
• Key-from-Image vs. Key-from-Paper– Content (documents & data) is available earlier
in the process– Less paper clutter
• ECM Integration Functionalities– Provide “screen scraping” of index / transaction data– Entry of transaction data is entered only once– Eliminate “fat fingering” of keyword data entry– Assure data continuity between systems– Ability to initiate Workflow processes or E-Forms– Dual monitors are often helpful
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Zonal OCR
• Documents with Static Structure– Forms, templates, orders, etc.
• Creation of OCR Zones for Data Extraction– Template setup
• Automated Document Classification & Indexing– Document types– Keyword values
• Release to ECM or Other Transactional System
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Zonal OCR - Benefits
• Complete Transactions Faster
• Reduce Manual Indexing Time & Costs
• Improve Data Accuracy & Document Availability
• Relatively Small Investment
• Meets Basic OCR Requirements
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Advanced OCR for Unstructured Documents
• Documents with Un-Structured Data & Format– Invoices, EOBs, remittances, contracts, etc.
• Advanced Search (No OCR Zones) for Extraction– Usually non-template setup
• Automated Extraction for Classification & Indexing– Document Types– Keyword Values
• Complex Rules for Advanced Functionalities– Ability to extract header, footer, and line-item details– Real-time validation/matching of ERP data– Transaction posting for straight-through processing
Best-in-Class are 60%More Likely to Utilize
Optical Character Recognition Solutions
Aberdeen Group
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Invoice Number
24568
Invoice Date
10/05/2008
Name
Unitectic Industries
Address
151 Second AveRichfield, VT 05440
P.O. Number
702133648
Customer ID
YARGO
Line Item #1Quantity Item Description Unit Price Extension
76.00 C2270 CATALYST-OZONEDESTRUCT
30.47 2,315.72
Line Item #2Quantity Item Description Unit Price Extension
10.00 DE56 COMPRESSION FITTING -978
15.63 156.30
Subtotal
2,472.02
Freight
225.30
TOTAL
2,697.32
Advanced OCR for Unstructured Documents: Example
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Invoice Number
24568
Invoice Date
10/05/2008
Name
Unitectic Industries
Address
151 Second AveRichfield, VT 05440
Customer ID
YARGO
Line Item #1Quantity Item Description Unit Price Extension
76.00 C2270 CATALYST-OZONEDESTRUCT
30.47 2,315.72
Line Item #2Quantity Item Description Unit Price Extension
10.00 DE56 COMPRESSION FITTING -978
15.63 156.30
Subtotal
2,472.02
Freight
225.30
TOTAL
2,697.32
43072
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43077
43078
43079
43080
702133646
702133647
702133648
702133649
702133650
702133651
702133652
702133653
2221442
2221443
2221444
2221445
2221446
2221447
2221448
2221449
702133648
P.O. Number
702133648
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Advanced OCR for Unstructured Documents: Benefits
• Complete Transactions Even Faster
• Eliminate Non-Value-Added Tasks
• Migrate Manual Indexing Tasks to Data Validation
• Improve Processing Times
• Meet Complex OCR Requirements
• Align with Best-in-Class Global Organizations
• Larger Investment = Larger ROI
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AP Automation Components: Stage 4
ECM
Retrieved via SAPfrom ECM AP Clerk
Incoming Invoices Capture / Scan
OCR Extraction& Matching
Workflow Non-PO Approval& PO Exceptions
Data Verification
Rules EngineTIFF
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Summary Recommendations
• Centralized Processing / Shared Services– Centralize processes– Improve controls & reporting– Eliminate redundant operations
• Capture Early & Automate– Rapid access & processing benefits– Audit trail, security & visibility improvements– Let your systems work for you
• Integrate– Indexing, retrieval, matching, posting, workflow… etc.
• OCR/IDC– If applicable
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But Don’t Ignore… Future State Process Planning!
• Identify Strategic Vision & Engage Leadership
• Ensure Compliance & Audit Requirements
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Open Discussion & Questions
?Ed Modjeska
Matt [email protected]
Naviant, Inc.www.naviant-inc.com
888.686.4624
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Customer Case Study
• Situation Overview– Fortune 100, multi-billion dollar, global manufacturer– Employs 20,000+ employees worldwide– Annual revenue of approx. $6 billion– 2+ million invoices per year
• 6.2 million invoice details per year• 1,200+ different vendors via fax, mail, and email
– Invoices received at multiple operating locations– Legacy systems– SAP ERP– OnBase ECM (late storage only)
AP ProcessAutomation
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Customer Case Study
• Key Business Objectives– Reduce manual effort & cost to process invoices– Centralize control of AP invoices– Increase early pay discounts– Eliminate duplicate payments– Enhance visibility of current AP liability– Leverage existing technology– Implement new technology as appropriate
AP ProcessAutomation
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Customer Case Study
• Key Process Changes– Eliminate paper handling early in the process
• Invoices are scanned upon receipt• Data is automatically extracted down to the line-item
detail with Brainware– Automate PO transactions
• PO line item matching with Brainware, OnBase & SAP• Manage exceptions & approvals with Workflow• Post PO invoices without human intervention
– Automate non-PO transactions• Manage Schedule of Authority within Workflow• Collect GL and transaction data within Workflow• Post non-PO invoices without human intervention
– Audit trail is automatically maintained in one location– Integrated document retrieval within SAP
AP ProcessAutomation
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Customer Case Study
• Key ROI Indicators– Estimated $1.5 million in the first year alone
• Reduced labor costs by 18.5 FTEs savings of 60%• Improved posting of 60% of invoices without human
intervention• Increased early payment discounts & timely
approvals– Complete audit trail & Schedule of Authority transparency– Increased accuracy of invoice processing– Greater visibility & reporting capabilities
• Plus…– Recently leveraged to EMEA & Asia Pacific regions– Latin America is “next in queue”– Order Management project
AP ProcessAutomation