Microsoft Windows Server System Customer Solution Case Study Online Treasury Tool Helps Microsoft Improve Efficiency and User Satisfaction While Saving Money Overview Country or Region: United States Industry: Information Technology Customer Profile The Administration IT Treasury Product Group (EAS-TPG) is responsible for supporting and maintaining the information systems used to manage the Microsoft Treasury Department investment portfolio of approximately $50 billion and the Microsoft Accounts receivable business group. Business Situation The EAS-TPG of Microsoft IT wanted to improve the efficiency of its business processes, enhance the satisfaction of internal users using financial tools, and save costs. Solution Description The EAS-TPG used smart client technology to develop a new accounts-receivable collection tool called MS Collect. Benefits Consolidation of databases Savings of over US $3.5 million in collection of past-due accounts and automation of activities Automation of Activities reduces manpower requirement Faster report turnaround time User Independent Secure access to application Rapid application development “The use of smart client technology significantly reduces the effort needed to deploy an application, either globally or to a managed desktop environment. This allows us to get products out to our customers faster while reducing costs.” Tony Kent, Group Program Manager, EAS-TPG Group, Microsoft Corporation The Administration IT Treasury Product Group (EAS-TPG), a part of Microsoft IT, used smart client technology to develop key tools to support internal treasury operations. The group built a unified collection tool, MS Collect, that both third-party collectors and Microsoft account managers can use to manage the collection process. Using the Microsoft® .NET Framework and smart client architecture for the accounts-receivable collection tool with Windows® Forms provided intuitive, full-featured interfaces. Web services provide security for stored data to enable the distribution of the tools outside the Microsoft corporate firewall. The dual benefit of fast deployment and high functionality made smart clients a more viable option. MS Collect has helped the EAS-TPG improve the efficiency of its business processes and save costs. The automation has saved about U.S.$1.5 million in collection of past-due accounts and about U.S.$2 million in manual labor. Situation Award The MS Collect solution won the Alexander Hamilton Award in Technology in 2005 The Administration IT Treasury Product Group (EAS-TPG) is responsible for supporting and maintaining the information systems used to manage the Microsoft Treasury Department investment portfolio of approximately $50 billion and the Microsoft Accounts receivable business group. The application portfolio managed by the EAS-TPG consists of over 40 applications that integrate Microsoft® and third-party solution architectures. The team is based in Redmond, Washington, in the United States and Hyderabad in India, with a world wide customer base. The Administration IT Treasury Product Group of the Microsoft Information Technology (Microsoft IT) group implements IT solutions that promote process efficiency and automation, continuous improvement in user satisfaction, and tangible business benefits. The group faced three key challenges. The first was making full featured applications available to users outside the corporate firewall. Security guidelines had to be met. The second challenge was a smooth upgrade to the new applications. The EAS-TPG team wanted to ensure that new applications did not disrupt the day-to-day activities on the older applications. The third and final challenge was to deliver new applications with a familiar look and feel, so that retraining was not required. Before 2004, the accounts-receivable collection tool was a third-party distributed application that ran on 12 different databases. The tool was connected directly to the databases. The EAS-TPG could not distribute the application to collection vendors because they were located outside the Microsoft corporate firewall. Therefore, the vendors were unable to access the server resources across the Internet because of non-compliance with security guidelines. Reporting was difficult using the collection tool, as it had a distributed nature because of the differing structures of the data and databases. Manual intervention of managers and other users was required often to collate all data into a single report. Thirdly, the architecture of the tool required significant effort in regression testing to ensure compatibility with various computer configurations and parallel application suites. Each time a new application is created or a new feature is added, the entire application had to be thoroughly tested, as it could cause problems with other applications or servers. The impact of one application interfering with another is significant as it can result in an inability to process transactions. The usual solution to this problem is exhaustive and costly compatibility testing. However, because the .NET Framework supports multiple versions of the same component on a system, using the .NET Framework enabled the EAS-TPG to significantly reduce compatibility testing costs. The Microsoft EAS-TPG wanted to create a standard collection process to ensure consistency and control across the entire life cycle of receivables. The EAS-TPG wanted end-to-end visibility of billing disputes and issues. The tool could not retain the history of events made on behalf of customer accounts. The majority of communication occurred through e-mail and was not visible in the collection tool. Also, the EAS-TPG wanted a tool that could be continuous improved upon to bring efficiency improvements through process automation. Solution The EAS-TPG used a smart client application to solve the problem of limited visibility and control of its accounts-receivable collection process when using vendors. Microsoft account managers can use to manage the collection process. Smart client technology was chosen because it extends user interface features at par with thick client applications. It makes application deployments easier through extended copy (xCopy command). Smart clients automatically update themselves by detecting version changes and downloading the latest versions. The architecture of MS Collect uses a threetier architecture that segments the applications into distinct components and uses Web services for communication: In addition, smart clients can execute different versions of the similar shared components in parallel, thereby eliminating version incompatibilities that arise from component upgrades. The presentation tier consists of the client interface (Windows® Forms) that has a familiar column-and-row appearance. Windows Forms and Web services in Microsoft .NET Framework version 1.1 provide flexibility and easy access to internal and external collection teams. It allows Microsoft to keep pace with the changing business environment. In addition, smart clients can optimize local resources available on the desktop (in both hardware and software) and on local devices such as barcode readers to provide complex business functionality that typical thin clients cannot offer. “The use of smart client technology significantly reduces the effort needed to deploy an application, either globally or to a managed desktop environment. This allows us to get products out to our customers faster while reducing costs,” explains Tony Kent, Group Program Manager, EAS-TPG, Microsoft Corporation. The middle tier consists of the Web service data access layer, running on Internet Information Services (IIS) version 6.0. The data tier consists MS Collect database tables and procedures running on Microsoft SQL Server™ 2000 and SAP running on the beta version of Microsoft SQL Server 2005. It consolidates the 12 databases from the previous application into a single database to meet the requirements of 11 different lines of business across 109 countries. Microsoft .NET software supports multiple languages, and MS Collect was going to be used in many countries. This fact and the fact that it integrates with Microsoft Visual Basic® .NET development system—a development language the MS Collect development team in the EAS-TPG was quite familiar with—made a .NET solution an easy choice for increasing productivity and reducing development time. Solution Architecture The group built a unified collection tool called MS Collect that both third-party collectors and Deployment MS Collect has been deployed successfully with more than 250 global users within and outside the Microsoft corporate network— including two vendor organizations that use non-Microsoft technology on their computer networks. Microsoft partnered with Wipro Technologies for the development and deployment of the smart client solution for MS Collect. Microsoft and Wipro worked collaboratively to allocate activities (analysis, deliverable review, prototyping, testing, and related efforts) between their locations―Redmond, Washington, for Microsoft and Hyderabad in India for Wipro. The two companies also took advantage of the time difference between the two locations to work on the projects continuously, reducing overall development costs and shortening the delivery cycle. For instance, the Microsoft team would test in the morning what the Wipro team developed during the night. The project personnel used formal and informal communication mechanisms throughout the project life cycle to stay aligned with business priorities and constraints. The core features of the application were delivered in early 2004, nine months from the start of work on MS Collect. Quarterly releases continue to provide incremental functionality. Benefits MS Collect has enabled an end-to-end collection process management—from credit scoring to dispute tracking. Consolidation of Databases MS Collect consolidated 12 collection databases into a single database. Supporting collection activities on a single database provides easy data flow and consistency across regions, in addition to avoiding the need to support multiple databases. Cost Savings Using the .NET Framework and smart client architecture for the accounts-receivable collection tool has helped the EAS-TPG improve the efficiency of its business processes and save costs. For MS Collect alone, automation has saved about $1.5 million in collection of past-due accounts and about $2 million in manual labor. Increased daily customer contacts and expedited dispute resolution have led to better collections. Worldwide collection on past-due accounts has saved Microsoft U.S.$1,474,000 as of this writing by reducing average collection time from 45 days to 43 days. Overall accounts receivable increased from U.S.$3.679 billion in April 2003 to $4.484 billion in April 2004. Automation of Activities Saves Manpower Each month, the Microsoft retail line of business faces more than 100,000 deductions. This amount is deducted by retailers from the payments they owe to Microsoft because of various factors such as damaged products and incomplete shipments worldwide. Each deduction needs to be matched and cleared by the correct credit memos and/or validated back to the customer for issuance of payment. The automated functionality in MS Collect avoids the need to employ a minimum of 15 people to manage the process manually, saving approximately $1.9 million per year. MS Collect also has features such as automated e-mail notifications for contacting groups or individuals who can validate or resolve disputes, automated paymentrequest letters in the customers’ languages, the option to configure views on all of the screens and set priorities and create customer groups. Faster Report Turnaround Time Smart clients enable users to search, sort, and manipulate data in real time without the need for development resources to create every customization. For instance, turnaround time for reports has decreased from three weeks to just a few minutes. User Independent MS Collect includes e-mail functionality that captures the entire history of the collection process for each customer. This feature, makes moving or temporarily assigning accounts to different collectors easy. Rapid Application Development Smart client applications developed through the .NET Framework can be prototyped and deployed much faster than thin client applications that have an equivalent functionality. Smart clients developed using .NET can be deployed through Web browsers, whereas traditional thin client applications have to be deployed by literally sending .exe files to each user’s computer. Also, prototypes can be developed quicker because of the various controls and APIs available in .NET Security Web services provide security for stored data to enable the distribution of the tools outside the Microsoft corporate firewall. Future Plans The group plans on developing a reporting module for MS Collect using the beta edition of Microsoft SQL Server 2005 Reporting Services; this project is currently underway and is scheduled for deployment in August 2005. For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-ofhearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com For more information about Wipro Technologies products and services, visit the website at: www.wipro.com About Microsoft Windows Server System Microsoft Windows Server System™ is a comprehensive, integrated, and interoperable server infrastructure that helps reduce the complexity and costs of building, deploying, connecting, and operating agile business solutions. Windows Server System helps customers create new value for their business through the strategic use of their IT assets. With the Windows Server operating system as its foundation, Windows Server System delivers dependable infrastructure for data management and analysis; enterprise integration; customer, partner, and employee portals; business process automation; communications and collaboration; and core IT operations including security, deployment, and system management. For more information about Windows Server System, go to: www.microsoft.com/windowsserversystem Software © 2005 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, SharePoint, Visual Basic, Windows, the Windows logo, Windows Server, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are property of their respective owners. Document published March 2005 Technologies - Windows Server System − Web services − Windows Server 2003 − Windows Forms − Internet Information Server version 6.0 − SQL Server 2000 − The beta edition of SQL Server 2005 Hardware − Microsoft .NET Framework version 1.1 Proliant DL580 server running Windows Server 2003 Datacenter Edition and SQL Server 2000: − 4 x Intel Zeon 2-GHz processors − 15 GB RAM HP Proliant DL580 running Windows Server 2003 Datacenter Edition and Internet Information Server: - 4 x Intel Zeon 700-Mhz processors -3.75 GB RAM