11

Well Come To Our Well Come To Our Presentation Presentation

2

Member Of Group # C

Name ID No.1. Md. Zahed Hasan Patowary-- 104353072. A.B.M. Robiul Islam-------------- 104351823. Shaikat Barua----------------------- 104351814. Md. Ohidur Rahaman-------------- 104352385. Mohammad Anwar Hussain------ 104351746. Md. Al Amin---------------------------104352437. Mohammad Hasan Ullah----------104352718. Md. Ahsan Uddin Sarowar--------10435190

3

Topics of Case Study

• Managing Travel Expenses :New tools, New savings

4

Business travel and entertainment are requirements of many jobs, and often a hefty component of corporate expenses. Accounting to American Express and Concur Technologies, travel and entertainment expenditures for U.S. companies amount to more than $200 billon each year in 2004, IBM spent $493 million on airline tickets alone while General Electric spent $280 million.

Processing travel and entertainment expenses reports adds to the cost. According to the Aberdeen Group consulting firm in Boston, the cost to process a single expenses report is $48 dollars Aberdeen found that an employee typically takes 57 minutes to complete an expenses report.

Processing travel and entertainment expenditures is especially burdensome for smaller companies whose processes tend to be paper based. MarketStar, an Ogden, Utah-based provider of outsourced sales and marketing services to other companies was drowning in a sea of expenses reports. About 650 of its 1200 employees regularly file expense reports to its accounting department. Three full time employees were required to manually approve process and audit 300 expenses reports per week, most from remote locations. Expenses disbursements were delayed for several weeks.

Jeff Jones, MarketStar’s controller, likened this process to building a dam when the flood waters were rising around your knees. We could never get ahead of the curve and it was all we could do to just keep pace. In addition to processing reports, MarketStar’s staff was also required to audit every single expenses report to ensure that reports were accurately tabulated and all expenses were properly coded.

5

MarketStar decided to implement Concur Expenses Service Software, which automates the travel and entertainment expenses reporting process. Employees can input their expenses data via a Web interface from wherever they are working with a computer or telephone or Palm handheld device. The system also automatically imports travel and expenses data from corporate credit cards. Electronic receipt imaging uses any available fax machine to digitize and attach receipts to expenses reports.

Managers approve reports with just a mouse click cutting processing time in half while boosting accuracy and productivity. Reports produced by the system help managers keep tabs on travel spending as transactions occur.

Control and compliance tools help firms minimize fraud and maximize compliance with company policies and government regulations such as Sarbanes-Oxley. The system capture firm’s business rules about corporate travel policies, such as the maximum amount allowed for airfare, hotel rooms and meals. A built in audit feature helps companies identify employees who aren’t booking airline flights with their companies preferred vendors those who are padding their expenses accounts with fictitious expenses for taxis and tips, or even those who use their expenses accounts for unauthorized purchase.

Corporate executives assert that instant feedback of information helps curb pervasive abuses. If, for example, the system shows a red flag on a Delta Airlines booking when cheaper Southwest flight is available, the traveler can be a alerted to rebook or pay the difference.

66

Concur software can be customized. MarketStar bills Concur software can be customized. MarketStar bills approximately 80 of its employee expenses back to its approximately 80 of its employee expenses back to its clients, who have their own expense policies. So it had to clients, who have their own expense policies. So it had to build special rules into its travel management application. build special rules into its travel management application. MarketStar employees frequently work on a variety of MarketStar employees frequently work on a variety of projects at one time, and the software enables them to tie projects at one time, and the software enables them to tie their expenses to a specific project as well as to a specific their expenses to a specific project as well as to a specific client.client.

Since implementing Concur Expenses Service in early 2001. Since implementing Concur Expenses Service in early 2001. MarketStar was able to reduce staff size for travel and MarketStar was able to reduce staff size for travel and expense processing down to one person and reduce the expense processing down to one person and reduce the time to reimburse employees to a few days. It has used time to reimburse employees to a few days. It has used information provided by the system to negotiable better information provided by the system to negotiable better rates from preferred vendors, saving over $134,000. rates from preferred vendors, saving over $134,000. Altogether, MarketStar has realized over $1 million in Altogether, MarketStar has realized over $1 million in savings, representing a return on investment of 19 percent savings, representing a return on investment of 19 percent per year.per year.

Many other companies have benefited from Concur and Many other companies have benefited from Concur and competing expense reporting systems. For instance, Mercer competing expense reporting systems. For instance, Mercer HR Consulting reduced the number of auditors required to HR Consulting reduced the number of auditors required to process and audit employee expense spending by 75 process and audit employee expense spending by 75 percent and Dell Computer reduced the cost of processing percent and Dell Computer reduced the cost of processing an expense report to less than $2.an expense report to less than $2.

7

Case Study Questions: 1. What kinds of systems are described here?

What valuable information do they provide for employees and managers? What decision do they support?

2. What problems do automated expense reporting systems solve for companies? How do they provide value for companies that use them?

3. Compare MatrketStar’s manual process for travel and entertainment expenses reporting with its new process based on Concur Expense Service. Diagram the two processes.

4. What management, organization and technology issues did MarketStar have to address when adopting Concur Expense Service?

5. Are they any disadvantage to using computerized expense processing systems? Explain your answer.

88

Question- 01.Question- 01.What kinds of systems are described here? What valuable information do What kinds of systems are described here? What valuable information do

they provide for employees and managers? What decisions do they they provide for employees and managers? What decisions do they support?support?

AnsAns: A system is described here which is a new tools managing travel : A system is described here which is a new tools managing travel expenses. Here this system is introduced by MarketStar and the expenses. Here this system is introduced by MarketStar and the system is “Concur Expenses Service Software”.system is “Concur Expenses Service Software”.

This system automates the travel and entertainment expenses This system automates the travel and entertainment expenses reporting process. Employees can input their expense data via a web reporting process. Employees can input their expense data via a web interface from wherever they are working with a computer or by interface from wherever they are working with a computer or by telephone or Palm handheld device. The system also automatically telephone or Palm handheld device. The system also automatically imports travel and expense data from corporate credit cards. imports travel and expense data from corporate credit cards. Electronic receipt imaging uses any available fax machine to expense Electronic receipt imaging uses any available fax machine to expense to digitize and attach receipts to expense receipts. to digitize and attach receipts to expense receipts.

Managers approve reports with just a mouse click, cutting processing Managers approve reports with just a mouse click, cutting processing time in half while boosting accuracy and productivity. Reports time in half while boosting accuracy and productivity. Reports produced by the system help managers keep tabs on travel spending produced by the system help managers keep tabs on travel spending as transactions occur. as transactions occur.

Employees can input their expense data via a web interface from Employees can input their expense data via a web interface from wherever they are working with a computer or by telephone or Palm wherever they are working with a computer or by telephone or Palm handheld device. The system also automatically imports travel and handheld device. The system also automatically imports travel and expense data from corporate credit cards. Electronic receipt imaging expense data from corporate credit cards. Electronic receipt imaging uses any available fax machine to digitize and attach receipts to uses any available fax machine to digitize and attach receipts to expenses reports.expenses reports.

On the above mentioned facilities are supportive for the employees On the above mentioned facilities are supportive for the employees and managers. and managers.

99

Question-02.Question-02. What problems do automated expenses What problems do automated expenses

reporting systems solve for companies? reporting systems solve for companies? How do they provide value for companies How do they provide value for companies that use them?that use them?

AnsAns:: This system provides some solutions for the This system provides some solutions for the

companies which are as follows: companies which are as follows:• Time saving Time saving • Long distance service/distance reducingLong distance service/distance reducing• Quick data input Quick data input • Prevent fraudulent Prevent fraudulent

By this system, employees can send their By this system, employees can send their expenses data quickly to company. On the other expenses data quickly to company. On the other side the management of company also quickly side the management of company also quickly analyzes and supervises the data within short analyzes and supervises the data within short time.time.

It prevents the employees from giving fictitious It prevents the employees from giving fictitious information about their expense to company. As information about their expense to company. As because, company can monitor the expense at because, company can monitor the expense at the time when it occurred.the time when it occurred.

1010

Question-03.Question-03. Compare MarketStar’s manual process for travel and Compare MarketStar’s manual process for travel and

entertainment expense reporting with its new process based on entertainment expense reporting with its new process based on concur expenses service. Diagram the two Processesconcur expenses service. Diagram the two Processes..

Ans:Ans: In manual process three full time employees were required to In manual process three full time employees were required to manually approve process and audit 300 expenses report per manually approve process and audit 300 expenses report per week. Than the disbursements of the expenses were delayed for week. Than the disbursements of the expenses were delayed for several weeks. An employee typically takes 57 minutes to several weeks. An employee typically takes 57 minutes to complete an expense report. In addition to processing reports, complete an expense report. In addition to processing reports, MarketStar’s staff was also required to audit every single expense MarketStar’s staff was also required to audit every single expense report to ensure that reports were accurately tabulated and all report to ensure that reports were accurately tabulated and all expenses were properly coded. expenses were properly coded.

Where as Where as “Concur Expenses Service Software”“Concur Expenses Service Software” automates the automates the

travel and entertainment expenses reporting process. Employees travel and entertainment expenses reporting process. Employees can input their expense data via a web interface from wherever can input their expense data via a web interface from wherever they are working with a computer or by telephone or Palm they are working with a computer or by telephone or Palm handheld device. The system also automatically imports travel handheld device. The system also automatically imports travel and expenses data from corporate credit cards. Electronic receipt and expenses data from corporate credit cards. Electronic receipt imaging uses any available fax machine to digitize and attach imaging uses any available fax machine to digitize and attach receipts to expenses reports.receipts to expenses reports.

Managers approve reports with just a mouse click, cutting Managers approve reports with just a mouse click, cutting processing time in half while boosting accuracy and productivity. processing time in half while boosting accuracy and productivity. Reports produced by the system help managers keep tabs on Reports produced by the system help managers keep tabs on travel spending as transactions occur.travel spending as transactions occur.

It prevents the employees from giving fictitious information about It prevents the employees from giving fictitious information about their expenses to company. As because, company can monitor the their expenses to company. As because, company can monitor the expenses at the time when it occurred.expenses at the time when it occurred.

1111

Time Consuming Time Consuming Lengthy ProcessLengthy Process Delayed Feedback Concur Delayed Feedback Concur

Expenses ServiceExpenses Service Possibility of CorruptnessPossibility of Corruptness

Manual Process

Concur Expenses Service •Time SavingDistance Reducing Quick Data InputPrevent Fraudulent

1212

Question-04.Question-04. What management, Organization, and What management, Organization, and

Technology issues did MarketStar have to Technology issues did MarketStar have to address when adopting concur expense address when adopting concur expense service?service?

Ans:Ans: Management and employees of the company Management and employees of the company will have to train upon the IT systems and its will have to train upon the IT systems and its uses. When they become trained, they will be uses. When they become trained, they will be able to follow the system.able to follow the system.

For the organizations to adopt the system- A IT For the organizations to adopt the system- A IT based organization structure will have to create. based organization structure will have to create. And for this some technological equipments And for this some technological equipments supporting systems have to take. For example; supporting systems have to take. For example; Computer, Internet, Web conference system and Computer, Internet, Web conference system and other technical devices. other technical devices.

1313

Question-05.Question-05. Are there any disadvantages to using Are there any disadvantages to using

computerized expenses processing computerized expenses processing systems? Explain your answer? systems? Explain your answer?

Ans:Ans: In generally there are no large disadvantages In generally there are no large disadvantages to using this system. But, initially during to using this system. But, initially during launching the system some little problem may launching the system some little problem may arise. Such as, a big budget which is problem for arise. Such as, a big budget which is problem for the company. As the employees and management the company. As the employees and management are not familiar with the system. They will have to are not familiar with the system. They will have to train before starting the system which may effect train before starting the system which may effect at the company regular activities. at the company regular activities.

14