Key Strategies for Best-in-Class Accounts Payable IFO Spring Meeting Milwaukee, WI 29 April 2014
Welcome & Introductions Matt Hein, Strategic Account Executive Ed Modjeska, Director of Strategic Accounts 2
Agenda Introductions Automation Concepts & Stages Best Practices Q&A Case Study 3
Naviant Overview Founded 1986 Headquartered in Madison, WI 2,500+ Global Customers BPM-Focused Process People Technology 4
Unstructured Content & Ancillary Data Paper Documents & Files Mail Enterprise Applications Ancillary & Disparate Data Graphics, Video, & Audio Electronic Documents Unstructured Content & Ancillary Data Fax Email XML & Meta Data 5 Print Output Reports Forms Web Pages
6 Partial List of Customers
Automation Concepts & Stages 15
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 16
More Than Just Invoices Cancelled Checks Purchase Orders Packing Slips / BOLs Credit Memos Advance Shipping Notice Remittance Collection Notices Expense Reports Vendor Management 17 Contracts Contacts Discount Structures Incidents E-Mail Communications Credit Reports
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) 18
Enterprise Information Management MTM Suite Expanded Naviant Evolution Industry Evolution 90 10 Enterprise Content Management Case Management DM ECM BPM CM 80 00 Document Management Business Process Management MTM Founded Naviant Group Acquired 19
Enterprise Information Management Structured Data & User Interface ECM Capture, Recognize, Process, Access, Integrate, Measure & Store Unstructured & Ancillary Content 20
AP Automation Process Considerations Capture Recognize Process Integrate Access Measure Store Email OCR/IDC Verify Fax Mail/Scan EDI Extract Line Pairing Validation PO Exceptions Non-PO Approvals Other Workflows Data Validation Create & Post ERP Reports Archive Images Mail Dashboard Security Retrieval Mobile Metrics Records Retention 21
Stages & Concepts of AP Automation Stages of AP Automation 4 Levels of Automation 1 De-Centralized Late Scanning Manual Indexing Manual Approvals 2 Centralized Early Scanning Key From Image Electronic Matching Manual Workflows 3 Centralized Early Scanning Key From Image Automated Workflows Automated Verifications Automated Postings Centralized Early Scanning OCR/IDC Extraction Automated Validations Automated Workflows Automated Verifications Automated Postings Straight-thru-Processing Self Service Portals Cost Per Invoice PayStream Advisors Imaging and Workflow Automation Naviant Group AP Process Automation Best Practices 22
23 Best Practices
Best ECM Practices for AP 1. Early Capture & Process Automation 2. User Transparency 3. Reduce or Eliminate Keying 24
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 25
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 26
1. Early Capture & Process Automation Example Accounts Payable 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 Incoming Invoices Capture / Scan ECM AP Clerk Review Workflow Approval ERP Key from Image 27
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 28
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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 35
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37 Android Invoice Approval
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 38
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 40
41 4C. Zonal OCR - Example
Zonal OCR - Benefits Complete Transactions Faster Reduce Manual Indexing Time & Costs Improve Data Accuracy & Document Availability Relatively Small Investment Meets Basic OCR Requirements 42
Advanced OCR for Unstructured Documents Documents with Un-Structured Data & Format Invoices, EOBs, remittances, contracts, etc. Best-in-Class are 60% More Likely to Utilize Optical Character Recognition Solutions Aberdeen Group 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 43
Advanced OCR for Unstructured Documents: Example Invoice Number 24568 Invoice Date 10/05/2008 Name Unitectic Industries Address 151 Second Ave Richfield, VT 05440 Customer ID YARGO P.O. Number 702133648 Line Item #1 Quantity Item Description Unit Price Extension 76.00 C2270 CATALYST- OZONE DESTRUCT 30.47 2,315.72 Line Item #2 Quantity Item Description Unit Price Extension 10.00 DE56 COMPRESSI ON FITTING - 978 15.63 156.30 Subtotal Freight TOTAL 44 2,472.02 225.30 2,697.32
43072 43074 43075 43076 43077 43078 43079 43080 702133646 702133647 Invoice Number 24568 Name Unitectic Industries Customer ID YARGO Invoice Date 10/05/2008 Address 151 Second Ave Richfield, VT 05440 P.O. Number 702133648 702133648 702133649 702133650 Line Item #1 Quantity Item Description Unit Price Extension 702133651 702133652 702133653 2221442 76.00 C2270 CATALYST- OZONE DESTRUCT Line Item #2 30.47 2,315.72 2221443 2221444 2221445 2221446 Quantity Item Description Unit Price Extension 10.00 DE56 COMPRESSI ON FITTING - 978 15.63 156.30 2221447 2221448 2221449 Subtotal 2,472.02 Freight 225.30 TOTAL 2,697.32 45
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 46
AP Automation Components: Stage 4 Data Verification TIFF OCR Extraction & Matching Rules Engine ECM Incoming Invoices Capture / Scan Workflow Non-PO Approval & PO Exceptions Retrieved via SAP from ECM AP Clerk 47
48 Summary Recommendations
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 49
But Don t Ignore Future State Process Planning! Identify Strategic Vision & Engage Leadership Ensure Compliance & Audit Requirements 50
Open Discussion & Questions? Ed Modjeska emodjeska@naviant-inc.com Matt Hein mhein@naviant-inc.com Naviant, Inc. www.naviant-inc.com 888.686.4624 51
Naviant 18th Annual ECM Leadership Summit 52
53 Customer Case Study
Customer Case Study 54
Customer Case Study AP Process Automation 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) 55
Customer Case Study AP Process Automation 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 56
Customer Case Study AP Process Automation 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 57
Customer Case Study AP Process Automation 58
Customer Case Study AP Process Automation 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 59