Automating Capture with KTMRyan Bazler

Director, Product Marketing, Kofax

The First Mile

Video: 7 Ways to Make the First Mile™ Smarter

Web: Seven Ways to Make Your First Mile Smarter

Paper

Fax

Email

SMS

XML

Office

PDF

Multi-Channel Capture Feeds Business Processes

Mobile applications

Electronic formats

Paper documents Social

collaboration

Social

Without Kofax

DecideUnderstand

What do I do with it?What is it?

ECM/RM Database

SharePoint

Portal ERP/LOB/CRM

Paper

Fax

Email

SMS

XML

Office

PDF

Social

Kofax Provides an Essential Link

ECM/RM Database

SharePoint

Portal ERP/LOB/CRM

Deci

de

Und

ers

tand

DecideUnderstand

Paper

Fax

Email

SMS

XML

Office

PDF

Social

Process Management

Collaboration

Kofax Value Proposition

ECM/RM Database

SharePoint

Portal ERP/LOB/CRM

Deci

de

Und

ers

tand

DecideUnderstand

Paper

Fax

Email

SMS

XML

Office

PDF

Social Extr

act

Valid

ate

Com

munic

ate

Sep

ara

te

Cla

ssify

Cap

ture

Point of Origination

Process Management

EnterpriseReady

TouchlessProcessing

Analytics

BI/Analytics

Mobile

Dynamic Case

Management

Analytics for Capture

Market Evolution and GrowthMarket Size

1M

100M

1B+

1985 1990 1995 2000 2005 2010 2015

$0

$1B

$2B

$3B

$4B

$5B

100K

500K

Smartphones & Tablets Used by Employees & Customers

Desktop Scanners & MFPs in Highly Distributed Front Offices

Mid Range Scanners in Distributed Regional Offices

Production Level Scanners in Centralized, Back Offices

Monolithic Page Scanners in Centralized Back Offices

“Everyone has a scanner in their pocket today.”

Geoffrey Moore, Best-selling business author

Importance of Mobile in the First Mile67% consider mobile devices to be important to improving business processes

45% believe mobile devices would improve their speed of response by > 3X

Yet … >75% have made no progress toward these goals

Financial Services• Customer onboarding • Mortgage & loan apps• Appraisals• “Trailing documents”

Healthcare• New patient onboarding• Clinical documentation• Medical claims submission • Revenue cycle management

Government• Citizen benefit enrollments • Claim submissions • Licenses, permits & renewals• “Trailing” documents

Source: AIIM – April 2012

Insurance• New policy quotes• Customer onboarding • Claim submissions• “Trailing” documents

Mobile – An Emerging ChannelSurvey reveals preconceptions about mobile apps, including frequency of usage, buying behavior and likelihood to use for customer service purpose.

Almost half use apps on their mobile device 10+ times per day, more frequently than general grooming and eating.

48% use mobile apps more than 10 times a day.

Brush teeth up to 3 times a day.

Eat up to 5 time a day.

Shower up 2 times a day.

Mobile – An Emerging Channel

Smart Mobile Apps

Mortgage Automation

customer Onboarding

Claims Processing

Underwriting (New Business)

Patient Onboarding

Mobile Quote

Mobile Pre-registration

Mobile Onboarding

Mobile Mortgage

AP Automation

Mailroom Automation

Mobile Capture

Kofax Stairway to Value

Improve Information Visibility

Digitize paper for better access

& compliance

Achieve Operational Excellence

Streamline processes to greatly reduce

costs

Increase Customer Intimacy

Establish new levels of

engagement & collaboration

Deliver Total Enterprise Agility

Radically transform &

simplify the First Mile of

customerinteractions

Value Proposition

Reduce Operating

Costs

Optimize Customer

Experience

Market Evolution

Collect Transform Deliver

Scan Recognition Validation Release

Kofax CaptureCapture Basic Transformation 100+ Connectors

Kofax Transformation ModulesIntelligent Document Recognition

ECM

BPM

ERP

Business Systems

Reporting

Systems ManagementCA, IBM ,HP,

MSFT

Enterprise Framework for Capture

Kofax Analytics and Kofax Monitor

Platform Shared Services

Extend capture to the earliest point in the process Automate, accelerate and reduce operating costsEnable standardized corporate systemsEnd to end process monitoring and reportingStandard resources utilized by the entire platform

KTM Product Overview Manual document separation and data entry is slow, expensive

and error prone.

To solve these challenges, KTM: Provides Touchless ProcessingTM solutions that reduce the time to

understand and decide what to do with information Automates document classification and separation, and information

extraction and validation. Increases productivity, speeds processes, improves data quality and

lowers costs

Use cases: Invoice processing Records processing Digital mailroom

• Mortgage processing• Insurance claims processing• New account opening

KTM Product Overview What business benefits are delivered by KTM?

Speed

Productivity

Capacity

Cost

Exceptions

Risk

Executive Sponsor:“I want all our processes to be streamlined – we need be more efficient and differentiate by providing better service.”

Process Manager:“I want a secure, reliable, and easy-to-manage process where my people focus on serving our customers, not handling documents.”

Kofax – Extensible Capture Platform

Capture &

Cleanse

Identify Review Extract Validat

eManag

e

Content is captured and

image is cleaned and

perfected

Automated document

identification and separation is performed

Document classification is examined for accuracy

Automated metadata

extraction is performed on

the documents

Extracted metadata is

examined for accuracy and

rules adherence

Documents and metadata are

able to connect to multiple data sources with flexible maps and schemas

• Process Any Document Type: Structured, Semi-structured, unstructured• Capture, Validate and Match Data – Bar Codes, OCR, ICR, OMR• Database Matching – Leverage Your Data Sources• Form, Field and Character Level Confidence Scores

• Optimize user experience and automation through your control

Document Learning, Not Templates, Rules, and Coding The Problem

Templates, rules and programming are not viable… When you have hundreds of document types When you have hundreds of variations of each doc type When you have frequently changing layouts or fields for

each document type

A learning approach is needed For initial project configuration in design time – Learn By

Example For ongoing project maintenance in production – Online

Learning

KTM Learn by Example

Learn-by-example – done pre-production Simple training process: provide samples and KTM starts

learning! No rules or programming

Business challenge Tight deployment schedules and budget

Business benefits Less costly deployment – lower initial development costs Quicker deployment – shorter application development times

KTM Online Learning Online Learning – done in production

Learn documents quickly, without stopping (“on the fly”) Increase system “knowledge” and improve automation over time

Business challenge Maintain and improve

performance once in production

Business benefits Achieve same-day efficiency

improvements Be responsive to new or

changing documents

Kofax Transformation Modules Key Competitive Advantages

•KTM supports all documents and information types so customers benefit from a single solution that extends the benefits of capture across the organization, increasing ROI. Many competitive solutions are departmental and focus on specific document types.

Capture and process any document

•KTM uses advanced recognition technologies that provide industry leading extraction rates on all types of text, including machine print, hand print and cursive handwriting in over 140 languages. Higher extraction rates mean greater reductions in manual labor and headcount and more touchless processing.

Maximize touchless processing

•KTM uses learn-by-example technologies for classification, separation and extraction that can be trained rapidly and work on all document types. Many competitive solutions use complex document templates and rules that take weeks or months to develop, or use auto-templating that doesn’t work on letters, reports and other unstructured documents.

Minimize upfront configuration costs

•KTM continues to learn as documents are processed in production, improving classification and extraction rates on the fly to increase ROI, and removing the need for manual reconfiguration when documents change or new documents are introduced.

Minimize ongoing maintenance costs

•KTM provides modern, intuitive and customizable user interfaces that allow exceptions to be handled quickly and efficiently.

Streamlined exception handling

Overview – Medical Claims Add-on Pack Benefits

Near-complete medical claims capture implementation Automated processing of CMS-1500 and UB-04 forms More medical claims processed with existing staff Faster case resolution, greater customer satisfaction Reduced processing costs Improve HIPAA transparency, control & compliance Integration with existing claims management systems Ability to process all document types, not just medical

claims

A majority of KTM configuration work is done – remaining portion is a PS

engagement

Up to 21 person months of work saved!

Overview – Invoice Add-on Pack 1.1Value Proposition

Out of the box invoice processing demos Improve speed and performance of invoice processing proof of concepts

(POCs) Internal benchmark: >75% extraction rate for unknown invoices for 5 different countries

Internal benchmark: >97% extraction rate for known invoices for 5 different countries

Reduce Professional Services work for production deployments Provide best practice methodology and documentation

Functional Overview Optimized extraction, formatting, validation and pre-configured scripting Localization in 4 languages (DE, FR, ES, EN) Demo invoices and databases for 5 different countries Documentation on how to demo the project Documentation on how to deliver a POC and customer implementation

Kofax Case Study – Invoices

Challenges

3.5M invoices, over 35,000 suppliers, multiple processing centers

Labor intensive and expensive manual process

Delays increase risk of lost discounts and poor supplier relations

Benefits

74% are now automated

Expenses reduced >$1M per year

Accelerated processing times

Increased accuracy

Increased discount capture

Improved supplier relations

Customer: Corporate Express

Business: Subsidiary of Staples, $23B in annual revenue & operations in 27 countries

1M+ invoices annually, 35,000 suppliers

Slide 22

| Transform 2012 - Capture Driven Processes

Demos

Invoice Processing with KTM

Thank you