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 Workflow ERP

& Markup Integration

Copyright © 2006, 170 Systems, Inc. All rights reserved. 6

 170 Systems Customers
are the World’s Leading Companies
Aerospace/ Financial Manufacturing/ Technology/
Education Supply
Defense Services Information
 General Dynamics  Harvard  Ameriquest  Arrow Electronics  Biogen Idec
 Sandia National  Ryerson University  Cigna  GE  Canon
Labs  San Diego State  Citigroup  Toyota  Juniper Networks
 Stanford  D&B  NCR
 U. Pennsylvania  E-Trade Public Sector/  Red Hat
Communications  JP Morgan Chase Government  Reuters
Energy  Marsh  NIH  Sapient
 AT&T  MasterCard  SAS
 BellSouth  NYC Housing
 Atmos Energy  TD Bank  Scottish Legal  Seagate
 British Telecomm  Kerr-McGee  Yahoo
 Equant Aid Board
 Plains All American  TSA
 O2  Smith International Food/Beverage
 Verizon  US DOT Travel/
 Williams  Schreiber Foods  US FAA Entertainment
 Vodafone
 J.M. Smucker  US CDC  Cendant
Engineering/
 US Coast Guard  Gaylord
Consumer Construction
Goods  Carillion  Maritz
Healthcare  TUI
 Electronic Arts  Granite Retail
 Mattel  Macerich  PacifiCare
 Sony  Michael Baker Corp.  Select Medical  Nordstrom
 M.A. Mortenson  Sportsmen’s
 University Hospitals
 Network Rail Warehouse
 Suffolk  Starbucks
Copyright © 2006, 170 Systems, Inc. All rights reserved. 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

Review/
Capture Entry Coding Approvals Payment Audit
Resolve

Copyright © 2006, 170 Systems, Inc. All rights reserved. 10

Invoice Receipt, Capture and Entry

Review/
Capture Entry Coding Approvals Payment
Resolve
Scan/Fax ERP Environment
Manual
OCR Entry

001100
XML 1 111 Automated
Entry
Supplier
Network

Image
MarkView Automatically
Self Service Attached
Invoice

Copyright © 2006, 170 Systems, Inc. All rights reserved. 11

 Optimize your ERP
Review/
Entry Coding Approvals Payment
Resolve

Leveraging ERP Environment

your Corporate Data
investment  Organizations
in ERP, Data  Sets of Books
 Hierarchies
and
 Vendor Supplier Lists
Resources  Chart of Account Information
with no  Business Rules
Duplication  Materiality Limits
 Etc.

Copyright © 2006, 170 Systems, Inc. All rights reserved. 12

Extensive Workflow Options

Review/
Capture Entry Coding Approvals Payment
Resolve
Scan/Fax ERP Environment
Manual
OCR Entry 170 Systems
Context Sensitive Workflows
001100  PO Based
XML 1 111 Automated
Entry  Non-PO Based
Supplier
Network  Pre-Approved
 Self Service
Image
MarkView Automatically  Supplier Maintenance
Self Service Attached
Invoice

Copyright © 2006, 170 Systems, Inc. All rights reserved. 13

Metrics, Analytics and Reporting
Metrics, Analytics and Reporting

Review/
Capture Entry Coding Approvals Payment
Resolve
Scan/Fax ERP Environment
Manual
OCR Entry 170 Systems
Context Sensitive Workflows
001100  PO Based
XML 1 111 Automated
Entry  Non-PO Based
Supplier
Network  Pre-Approved
 Self Service
Image
MarkView Automatically  Supplier Maintenance
Self Service Attached
Invoice

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 7. Receive approval
2. Look up authorizer on purchase order 8. Pull invoice from file drawer
3. Email invoice details to authorizer 9. Key invoice in ERP system
to approve invoice via email
4. File invoice waiting for approval 10. File invoice in AP file storage
in file drawer 11. Execute payment
5. Wait for approval via email
12. Pull invoice from file when
6. Follow up for approval if no response 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 WW Current
2003 (Pre SSC) 2006
# of AP Employees 5 12

# of Invoices Processed 62,000 416,817

% of Manual Invoice/PO 45% 75%

Monthly Trans per FTE 1000 3000

Length of Backlog 8 to 9 days 2 to 3 days
Minutes/Invoice 9.2 min 3.4 min
Cost/Invoice $4.72 $1.78
% of Process Automated 48% 89%

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
Auto Document access to Use of ERP Hold released
Association Chart of Accounts Hierarchy in ERP

Paper & Scan Header Final AP

Fax Information Review
Code

Electronically Forwarded and Recorded

Copyright © 2006, 170 Systems, Inc. All rights reserved. 29

The Self Service Invoice Process

ERP
Hierarchy

Read / update
access to Auto Document Hold released
Chart of Accounts Association in ERP

Header &
Fax Final AP
Coding
Back-up Review
Information
(if desired)
(by field)

Record created in ERP

Liability captured

Copyright © 2006, 170 Systems, Inc. All rights reserved. 30

Potential Payment Request:
Expense Processing Future State

Enter Automatic Payables

Print
Expense Association and
Bar-Coded
Report with Report Audit
Cover Sheet
Detail Fax Routing
Receipts

Copyright © 2006, 170 Systems, Inc. All rights reserved. 31