#AIIM14 #AIIM14
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Automate, Automate, Automate: Bridging the Gap Between Capture and Process Harvey Spencer
President HSA inc
HSAssocs@twi:er
#AIIM14
Archive Business Documents
Fixed Geometry
Variable Geometry
The move to integra;on with process
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We started with ‘Known Forms processed in
Batches’
Market Intelligence
Read the Research! Download Content Collabora+on and Processing in a Cloud and Mobile World. It’s free. Do it now.
Eye on the Industry
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Fixed Geometry
§ Examples: Tax Returns, Medical Claims § Front end process, relies on pre-‐sorJng § Based on knowing the locaJon of key fields
allows for understanding rules to be built § IntegraJon to business process tends to be batch
– aQer the capture, data extracJon and validaJon
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Fixed Geometry Benefits § Benefits:
§ Capture image for archival and research § Fast § ReducJon in key entry costs
§ LimitaJons § Requires pre-‐sorJng § Limited applicaJons § Back office batch orientaJon delays processes
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Variable Geometry Adds Value
§ Benefits in Faster Processing: § Reduced sorJng and separators § Mixed forms layouts, including ‘semi-‐structured’ forms
may be understood and processed
§ LimitaJons § Semi-‐structured forms are ‘mostly known’ § Usually front end with batch updates.
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Variable Geometry Added Document Types
§ Examples: Invoices, Orders, On-‐boarding/ ApplicaJons etc § Fields of interest move around depending on
document § Can be used to reduce pre-‐sorJng of normal fixed
geometry applicaJons § Allows for capture closer to the process
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Value of Capture to Business Process Automa;on in Invoice Processing
§ Benefits of Integrated in-‐house with ERP procure-‐to-‐pay soluJons* § Speed
§ Faster turn around than using outsourcing § Be:er excepJon handling § Possibility of dynamic discounJng § Faster end of month reconciliaJon
§ ReducJon of excepJon handling § No lost invoices and user self service portal can see invoice and status § Emailed invoices easier to handle if PDF images are sent rather than PDF
normal § Lower audit costs due to integraJon with ECM § Possibility of easier offset management AP/AR common suppliers/customers
*Source: Open Text
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Discount Management. Never Ending Fric;on Between Buyers and Suppliers
Courtesy: Taulia
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0 DAYS invoice
10-15 DAYS approval
60 DAYS due date
OPPORTUNITY
AVERAGE PAYMENT TERMS (DAYS) Anheuser-Busch
Hertz
Apple
Industry Average
120 DAYS
60 DAYS
45 DAYS
56 DAYS
Payables terms change by Supplier
Courtesy: Taulia
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A sliding scale allows for higher discount the earlier the payment for ALL invoices
• Reduction of working capital • Alternative to more expensive sources of financing as Factoring • Suppliers can opt in to the program
• Leverage more Early Payment discounts • Risk-free short-term investments with double digit returns • Does not create upward pressure on purchase prices • Typical $1M to $2M returns per $1B in-scope spend
Definition
Supplier Benefits
Buyer Benefits
Key Benefits of Dynamic Discoun;ng
Courtesy: Taulia
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3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0% 0 10 Days 20 Days 30 Days
$ 2% 10 Net 30
“Hit-‐or-‐Miss Discount” 3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0% 0 10 Days 20 Days 30 Days
$
$
Sliding Scale Discount
Antiquated Discounting Dynamic Discounting
Courtesy: Taulia
Dynamically Changing Discount
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Discount Management Supplier Bidding
§ The Priceline Approach § From a supplier standpoint allows for factoring at lower
cost § From customer standpoint allows for be:er cash
management
§ Only possible if invoices and procure-‐to-‐pay are integrated
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The next stage: Content Ini;a;on
Spee
d/Va
lue/
Rel
evan
ce to
C
usto
mer
Content IniJaJon
Capture to a Process
Drive process decisioning from Capture Content
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Content Ini;a;on Branch Automa;on
§ Scan back office documents (new account opening, loan apps, mortgage apps, etc.) in the branch § Savings can provide less than one year pay back § Savings in copier/prinJng, plus courier + be:er
customer experience/service § Encapture ROI Model
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Content Ini;a;on -‐-‐ Global Shipping*
Process Shipping documents, commercial invoices arrive on paper, email, fax § MulJchannel input eliminated prinJng of emails and faxes § Automated data recogniJon and classificaJon eliminate manual data entry and accelerate
scanning § AutomaJc populaJon of data into customs documents § Automated archiving for ten years in FileNet Content manager
Benefits § Improved Process efficiency and imaging speed and accuracy § $13 million savings over three years from headcount reallocaJon and prinJng/postage costs § Improved accuracy, customer service
* Source: IBM
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Automate, Automate, Automate
§ The key value is to integrate with the Business Processes § Be:er Customer Service § Greater efficiency § Less rework and lower cost § Lower risk, be:er cash management
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Branch Automa;on + Capture to a Process
§ Example: New Account Opening or Loan Processing: § Documents scanned in branch § Real Jme understanding, checking documents and
extracJon of relevant data § Savings in copier/prinJng, plus courier + be:er customer
experience/service + immediate decisioning + opportunity for cross selling
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The Next Wave of Capture
§ Automate from anywhere, anyJme § Immediate understanding § Integrated with business processes and workflow
