Automation and Optimization of Financial Processes.

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


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


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


170 MarkView Solution

Technology

Process

People


Fixed Price Implementations

Depth of Experience Global 2000 Customers Domain Expertise

Best Practices Business Processes Shared services

170 MarkView Solution

ERPIntegration

WorkflowImaging & Markup


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


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


Invoice lifecycle

Capture

Entry Review/

Resolve

Coding

Approvals

Payment

Audit


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


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


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


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


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


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%


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


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


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


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


170 Systems Select Customers


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



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




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


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





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





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


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


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)


Potential Payment Request: Expense Processing Future State

Enter Expense Report Detail

PrintBar-

Coded Cover Sheet

FaxReceipts

Automatic

Association

with Report

Routing

Payablesand Audit

Automation and Optimization of Financial Processes.

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Transcript of Automation and Optimization of Financial Processes.