Automation and Optimization
of Financial Processes
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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
2
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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
3
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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
4
170 MarkView Solution
People
Process
Technology
Copyright © 2006, 170 Systems, Inc. All rights reserved.
5
170 MarkView Solution
 Fixed Price Implementations
 Depth of Experience
 Global 2000 Customers
 Domain Expertise
 Best Practices
 Business Processes
 Shared services
Imaging
& Markup
Workflow
Copyright © 2006, 170 Systems, Inc. All rights reserved.
ERP
Integration
6
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
Consumer
Goods
 Electronic Arts
 Mattel
 Sony
Education
 Harvard
 Ryerson University
 San Diego State
 Stanford
 U. Pennsylvania
Energy
Financial
Services
 Ameriquest
 Cigna
 Citigroup
 D&B
 E-Trade
 JP Morgan Chase
 Marsh
 MasterCard
 TD Bank
 Atmos Energy
 Kerr-McGee
 Plains All American
Food/Beverage
 Smith International
 Williams
 Schreiber Foods
 J.M. Smucker
Engineering/
Construction
 Carillion
Healthcare
 Granite
 Macerich
 PacifiCare
 Michael Baker Corp.  Select Medical
 M.A. Mortenson
 University Hospitals
 Network Rail
 Suffolk
Copyright © 2006, 170 Systems, Inc. All rights reserved.
Manufacturing/
Supply
 Arrow Electronics
 GE
 Toyota
Public Sector/
Government
 NIH
 NYC Housing
 Scottish Legal
Aid Board
 TSA
 US DOT
 US FAA
 US CDC
 US Coast Guard
Retail
Technology/
Information
 Biogen Idec
 Canon
 Juniper Networks
 NCR
 Red Hat
 Reuters
 Sapient
 SAS
 Seagate
 Yahoo
Travel/
Entertainment
 Cendant
 Gaylord
 Maritz
 TUI
 Nordstrom
 Sportsmen’s
Warehouse
 Starbucks
7
170 MarkView Applications
 170 MarkView Financial Suite
— Accounts Payable
— Expense Management
— Procurement
— Accounts Receivable
— General Ledger
— Asset Management
— Project Re-Billing
— Human Resources
Copyright © 2006, 170 Systems, Inc. All rights reserved.
8
The 170 Systems Solution for
Accounts Payable
Invoice lifecycle
Capture
Entry
Review/
Resolve
Copyright © 2006, 170 Systems, Inc. All rights reserved.
Coding
Approvals
Payment
Audit
10
Invoice Receipt, Capture and Entry
Capture
Entry
Review/
Resolve
Coding
Approvals
Payment
ERP Environment
Scan/Fax
Manual
Entry
OCR
001100
XML 1 111
Supplier
Network
MarkView
Self Service
Invoice
Automated
Entry
Image
Automatically
Attached
Copyright © 2006, 170 Systems, Inc. All rights reserved.
11
Optimize your ERP
Entry
Leveraging
your
investment
in ERP, Data
and
Resources
with no
Duplication
Copyright © 2006, 170 Systems, Inc. All rights reserved.
Review/
Resolve
Coding
Approvals
Payment
ERP Environment
Corporate Data
 Organizations
 Sets of Books
 Hierarchies
 Vendor Supplier Lists
 Chart of Account Information
 Business Rules
 Materiality Limits
 Etc.
12
Extensive Workflow Options
Capture
Entry
Manual
Entry
OCR
001100
Supplier
Network
MarkView
Self Service
Invoice
Coding
Approvals
Payment
ERP Environment
Scan/Fax
XML 1 111
Review/
Resolve
Automated
Entry
Image
Automatically
Attached
Copyright © 2006, 170 Systems, Inc. All rights reserved.
170 Systems
Context Sensitive Workflows





PO Based
Non-PO Based
Pre-Approved
Self Service
Supplier Maintenance
13
Metrics, Analytics and Reporting
Metrics, Analytics and Reporting
Capture
Review/
Resolve
Entry
Manual
Entry
OCR
001100
Supplier
Network
MarkView
Self Service
Invoice
Approvals
Payment
ERP Environment
Scan/Fax
XML 1 111
Coding
170 Systems
Context Sensitive Workflows
Automated
Entry
Image
Automatically
Attached





PO Based
Non-PO Based
Pre-Approved
Self Service
Supplier Maintenance
User Interface
Copyright © 2006, 170 Systems, Inc. All rights reserved.
14
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 process
1. Receive paper invoice
2. Look up authorizer on purchase order
3. Email invoice details to authorizer
to approve invoice via email
4. File invoice waiting for approval
in file drawer
5. Wait for approval via email
6. Follow up for approval if no response


7.
8.
9.
10.
11.
12.
Receive approval
Pull invoice from file drawer
Key invoice in ERP system
File invoice in AP file storage
Execute payment
Pull invoice from file when
inquiries received
Too Slow — Cycle time on average 8 to 9 days
Could Not Scale Globally
Copyright © 2006, 170 Systems, Inc. All rights reserved.
15
Global Juniper
Accounts Payable Metrics
WW Historical
2003 (Pre SSC)
WW Current
2006
5
12
# of Invoices Processed
62,000
416,817
% of Manual Invoice/PO
45%
75%
Monthly Trans per FTE
1000
3000
8 to 9 days
2 to 3 days
9.2 min
3.4 min
$4.72
$1.78
48%
89%
# of AP Employees
Length of Backlog
Minutes/Invoice
Cost/Invoice
% of Process Automated
Copyright © 2006, 170 Systems, Inc. All rights reserved.
16
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
Gantry Group Study: 7.4 month payback and 300% ROI
Copyright © 2006, 170 Systems, Inc. All rights reserved.
17
MarkView for Oracle Accounts
Payable Demonstration
Maritz Inc.
The world’s largest source of integrated performance
improvement, travel, and market research services
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
Source: OAUG Whitepaper 2004
Copyright © 2006, 170 Systems, Inc. All rights reserved.
19
Select Medical
The leading operator of long-term acute care hospitals in
the US – 98 hospitals and 740 outpatient clinics
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
Source: OAUG Whitepaper 2003
Copyright © 2006, 170 Systems, Inc. All rights reserved.
20
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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
21
170 Systems Select Customers
Copyright © 2006, 170 Systems, Inc. All rights reserved.
22
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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
23
170 Systems – Leading Provider of Solutions that
Automate and Optimize Financial Processes
 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 fraud
for finance managers
Copyright © 2006, 170 Systems, Inc. All rights reserved.
24
170 Systems – Leading Provider of Solutions that
Automate and Optimize Financial Processes
 Business Process Automation Focus
 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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
25
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 Kennedy
Vice President, Worldwide Alliances, Oracle
Copyright © 2006, 170 Systems, Inc. All rights reserved.
26
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
— 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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
27
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
— 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
Copyright © 2006, 170 Systems, Inc. All rights reserved.
28
The Non-PO Invoice Process
“Get Next”
Read / Write
access to
Auto Document
Chart of Accounts
Association
Paper & Scan
Fax
Use of ERP
Hierarchy
Header
Information
Hold released
in ERP
Final AP
Review
Code
Electronically Forwarded and Recorded
Copyright © 2006, 170 Systems, Inc. All rights reserved.
29
The Self Service Invoice Process
ERP
Hierarchy
Read / update
Auto Document
access to
Association
Chart of Accounts
Header &
Coding
Information
(by field)
Fax
Back-up
Hold released
in ERP
Final AP
Review
(if desired)
Record created in ERP
Liability captured
Copyright © 2006, 170 Systems, Inc. All rights reserved.
30
Potential Payment Request: Expense
Processing Future State
Enter
Expense
Report
Detail
Print
Bar-Coded
Cover Sheet
Copyright © 2006, 170 Systems, Inc. All rights reserved.
Fax
Receipts
Automatic
Association
with Report
Routing
Payables
and
Audit
31