industry solutions 2012 final
DESCRIPTION
Strategy/training presentation for key industry solutionsTRANSCRIPT
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here © Copyright 2011 Hewlett-Packard Development Company, L.P. HP INTERNAL USE ONLY
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
What you will learn today?
1. IPG‘s Vertical approach
2. What are we selling?
3. Who is the ideal customer?
4. What is the typical sales process?
5. Where do I go for more information and help?
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contained herein is subject to change without notice. Confidentiality label goes here
IPG Focused Vertical Approach 1. Choose vertical industries
2. Indentify document centric business problems with greatest pain
3. Define solutions for the customer‘s specific business processes
4. Define a common solutions framework (reference architecture) to address most needs
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Market opportunity by industry
IPG TAM for document management solutions including hardware, software, and services $63.9B
(Office 52%, Commercial 25%, Production 23%)
3X
$58.8B
Source: HP internal data; *Timing of market opportunity as well as geographical position/strengths if IPG in public sector need to be evaluated in detail
Banking & Insurance
Mnfg. Healthcare Govt. Education Retail Utilities Media
Loan applications $2000M
Product lifecycle Mgmt. $132M
Patient care documentation $585M
Government Contract Bids and Awards $456M
Student Records Mgmt. $291M
Supplies distribution and Inventory $158
Service Tracking $158M
On demand printing and publishing $190M
Insurance Policy Issuance $850M
Product design $110M
Patient Records Mgt $468M (Capture is minimal)
Cost Containment $365M
On Demand Printing of Course materials $291M
Billing and Invoicing $78M
Customer Billing $78M
Digital Rights Mgmt. $70M
Compliance $210M
Supplier Relationship Management $66M
Patient admissions $351M
Government Constituent $274M
Student records admissions solution $182M
Marketing Collateral $38M
Customer Supplier Contract Management $38M
Subscriber Processing $60M
Contracts $138M
Insurance Claims Processing $200M
Invoice Processing $12,500M (+Retail, +CME)
New Account Opening $300M (+CME, Insurance Policy Issuance $850M, Patient Admissions $351M, Student Admissions $182M)
Smart Marketing Suite $11,000M
The $ amounts includes SW (Capture, forms Automation, Workflow and Document Mgmt.), HW (SFP, MFP and scanners), system integration services, and custom web front end development.
Existing solutions Solutions to be defined Source: McKinsey, InfoTrends
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contained herein is subject to change without notice. Confidentiality label goes here
Savings from MPS allows customers to invest
Opportunity to improve document centric business processes
ECO
NO
MY
TIME
PEAK
CONTRACTION EXPANSION
TROUGH
FOCUS ON COSTS FOCUS ON GROWTH
DOCUMENT CENTRIC WORKFLOWS
MPS
2012/2013
―Whereas 2011 was a
stabilization year for corporate
America, 2012 will be a year
of investing in laying the
foundation for growth,‖ says
Mark Spelman, global head of
strategy at Accenture, a
consultancy. That is likely to
mean tapping into some of the
mountains of cash that
American firms have
accumulated over the past few
years.
Source: Economist
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contained herein is subject to change without notice. Confidentiality label goes here
Ideal Customer Profile
Key targets for Document Workflow Integration Services
7
Streamline their paper based workflows.
Reduce:
• Time to money. Shorten the time to complete
the business process
• Headcount.
• Cost of processing.
• Better Return on Assets
• Print and related document management costs
Drive continuous process improvements through
business analytics, monitoring and reporting.
Demand for instant access to documents and
content.
Ensure data security & regulatory compliance.
Improve customer messaging and experience.
Enterprise activity to look for:
Lines of Businesses that manage document centric processes.
Desire to automate, looking for significant improvements.
Pre-existing investments in document processing hardware
Content management behavior to look for:
Content spread across disparate systems that is both complex and costly to access and manage
Difficulty managing regulations in document management & electronic discovery
Current approach to direct marketing is "one-size fits all" (e.g. relies largely on generic, pre-printed document inserts, etc.)
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
SEAMLESSLY flow information through bottlenecks
Ad agencies
Content owners
Educa
tion
FSI
Health
care
Reta
il
Insu
rance
Publis
hin
g
Solution Partners / System Integrators
Publishers Print Service Providers
SMBs & Enterprises
scan-enabled business devices
2011
2012
IPG on/off-ramp seamless, secure,
context-aware experiences
IPG on/ off-ramp
Cust
om
er
Rete
ntion
Profita
bili
ty
Reve
nue
Gro
wth
Bette
r RoA
Tim
e to
Money
Improving Business Outcomes
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here 9 July 2011
Typical Challenges in a Document Intensive Environment
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contained herein is subject to change without notice. Confidentiality label goes here 10 July 2011
Document Process – Future State
Future State
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contained herein is subject to change without notice. Confidentiality label goes here 11 July 2011
Office & Workflow Document Digitization
ENTERPRISE CONNECTORS
Authenticate: Identify, Tag, Security Content Classification, federation & Tracking: Policy enforcement over unstructured content
Create / Digitize: Create Digitally, Scan & OCR Smart document design &Integration with business applications : Conversion from paper, audio, video
Off-ramp: Print, Publish-to-web Multi-channel delivery Optimized multi-channel messaging and offers
Store/Analytics/ECM: HP Cloud Storage Serv. Repository Workflow process review ECM, Search & Analytics, Digital Iron Mountain Records Retention
Digitization workflow Graphical workflow modeling and approvals
PD
Connectors to enterprise databases and applications (IDOL)
A pre-integrated stack of HP and Partner products to help optimize the document lifecycle
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here 12 July 2011
DWIS Reference Architecture builds on the Document Digitization Workflow
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contained herein is subject to change without notice. Confidentiality label goes here
Business Value Framework
Operating KPIs Process/Function
HP Solution Initiatives
Text
Business Initiatives (Strategy, Priority Language)
Executive KPI (Direction)
SHAREHOLDER VALUE ULTIMATE BUSINESS GOAL
Core Financial KPI (Direction)
2011+ Growth
Initiatives
Customer Focused
Reinvention
Reinvent Products and
Services
Agency and Direct Channel Performance
Sales and Marketing Information
Strategy
Next Generation
Claims
Infrastructure Services
Transformation
Data Center Cons
My Network Desktop
(Thin Client)
Reinvent Protection & Retirement for the Consumer
Measure (TBD)
Improve Book Value
(TBD)
Grow our business
Become leading U.S. P&C Insurer in U.S. in 10 years
Grow Premium 100%
Improve share 810 pts.
CAPITAL (Increase Shareholder Equity, TBD)
REVENUE 7% annual growth (Required to achieve #1)
Reduce Operating Expenses
Operating Margin (TBD)
Improve Customer Loyalty
Customer satisfaction
Intent to renew
Willingness to refer
COST (Reduce Operating Expenses TBD)
• Increase Customer Retention (TBD)
• Increase Auto/Property Premiums (7%/year)
• Increase Allstate Financial Revenue (TBD)
• Product Management
• Sales (Agency/Direct)
• Marketing
• Customer Service
• Improve Combined Ratio
• Improve Expense Ratio
• Improve Claims Ratio
• Improve Customer SetClaims
• Insurance Ops & Customer Service
• Claims Management
• Policy Administration
• Underwriting/Risk Management
• Increase Virtualization (~50%)
• Reduce IT Op Expense (TBD)
• Automate IT Services/Ops (TBD)
• Reduce IT Labor Costs (TBD)
• Reduce Desktop Costs (TBD)
• Application Consolidation (TBD)
• Reduce Networking Costs (TBD)
• IT/Infrastructure and Application Services
Text
―HP One to One Insurance‖
• HP Business Intelligence Solutions • HP Exstream / Multi - Channel • HP ES App Services – App/Portal Development • HP Software: BTO (Quality ) • HP Insurance Industry Solutions • HP Policy Accelerator • IPG Dynamic Marketing / Publishing
HP ―Instant On‖ Enterprise
• Application Transformation • Converged Infrastructure • Enterprise Security • Information Optimization • Hybrid Delivery
Text
―HP Flex IT for Insurance‖
• HP Software/BTO (Automation) • HP Converged Infrastructure • HP TS Consulting/Support • HP Networking / Services • HP ES App Services ( Modernize), ITO, BPO • HP Thin Client / • IPG – MES/Managed Print Services
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Consultative sales engagement
RESULTS
A leading MPS
provider
—
+$8B in TCV
—
23B Pages
under contract
EB AGM
IPG ACCOUNT MANAGER
TECHNICAL CONSULTANT
SERVICE CONSULTANT
BUSINESS PROCESS
CONSULTANT
Conduct a program or workshop
Perform an assessment
Optimize results
7 of top 10 Healthcare companies use IPG services and solutions
8 of top 10 Insurance companies use IPG services and solutions
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here 15 July 2011
Document Workflow Integration Services Framework
Enterprise Architecture
Industry Expertise
Global Delivery
Intellectual Property
Industries Bankin
g Insurance
Manufacturing
Public Sector CME Education
Healthcare
Transportation
Retail
MphasiS/HP Labs
Document Workflow Assessment
Industry Solutions Product Implementation
Product Evaluations & POC
Workflow Technology Roadmap
Document Process Optimization
• Process improvement bringing cost saving up to $15-20 per claim
• On-demand document retrieval for quicker approvals
• Straight through processingpprovers
Claims Processing Solution • Improve process efficiency & meet
compliance needs • Lower operating costs through Cloud
solution • Gain 2-3% early payment discount
Invoice Processing Solution
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contained herein is subject to change without notice. Confidentiality label goes here
More information http://intranet.hp.com/ipg/ww/GblEntBuss/VerticalSolutions/Pages/home.aspx
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Dashboard to track your Funnel and Wins/Losses
Business Questions Addressed: • Am I winning more opportunities?
• Who are my top customers? (top deals by
deal value)
• Is the average deal size of won deals increasing over time?
• Is the average deal size of lost deals decreasing over time?
• Why are we winning deals? Against whom are we winning?
• Why are we losing deals? Against whom are we losing?
Data Filters: • View by region: WW, AMS, EMEA and
APJ
• View by industry and sub-vertical: includes all as in the Vertical Hierarchy
• View by Product Line: includes select IWS, LES, GSB and MES product lines
Other Details: • Tool is Access-based with an Excel front-
end
• Data will be refreshed once every month
• Tool will be available on a shared drive \\fileshares.corp.hp.com\groups\IPGFunnel
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
How to Download the Tool
Click Run on Start Menu Paste Shared Drive link – (URL)
\\fileshares.corp.hp.com\groups\IPGFunnel Click Ok Once folder is open, double-click on MES Funnel Tool zip file Select all files Click on extract Save to C drive on desktop Close Shared Drive window Go to file location on desktop Open *only* excel file Once Excel file opened, on top below taskbar, click on ―Options‖ Select ―Enable this Content‖ Click Ok Get Started
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
MDC – GovernmentGary L. Rodgers
Vice PresidentMarket Development
John [email protected]
Executive AssistantLindsey Stratton
858.655.3434
Pub Sector & HealthcarePeggy Dunlea
832.878.2146
Asst., LeeAnn McBath208.396.2806
MDC – Healthcare
Laurie Eldridge-Shanaman
MDC - Public SectorValeria Phillips
MDC - Defense & Security Agencies
Alan [email protected]
208.599.5994
MDC -- Government
Elisabeth Rochman [email protected]
+41 79 8282832
MDC – Healthcare Randy Hickel
Commercial & Service to Services Industries
TBD
@hp.com
Asst., LeeAnn McBath208.396.2806
MDC – Process Mfg, Utilities/Energy
Robert [email protected]
410.919.7370
MDC – Communications, Media & Entertainment
Eileen [email protected]
301.874.1779
MDC – Financial ServicesSolutions Business Mgr
Joe Wagle [email protected]
917.975.8133
MDC – Discrete Mfg Marie-Amélie Masnou
Marie-Amé[email protected]+49.162.289.7745
MDC – EMEA Sales/ Dev/Market Support
Valérie Da Fonseca Valé[email protected]
+34. 616.181.980
MDC – Retail BankingChuck Gowin
813.454.3801
MDC – Retail-CPG-Distribution
Marc [email protected]
+521.555.4329950
Enterprise Solutions Strategist
Akila [email protected]
408.223.8217
Who can help? IPG MES Industry Experts Market Development
Consultants. Over 250 years of
combined experience.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Account opening accelerator for
communications, media and
entertainment
Eileen Griffee
1 October 2011
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contained herein is subject to change without notice. Confidentiality label goes here
Agenda
• Business Problem Definition
• Target Customer Profile
• Business Process – High Level Flow (Reference architecture)
• High Level Solution
• Solutions Offer/Pricing
• Value Proposition (HP Assets and Differentiation)
• Market Opportunity
• Competitive Landscape and HP Differentiation
• Existing Customer Footprint
• Revenue Potential
21
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
What service providers are looking for – Transform customer
experiences though enhanced service delivery
Business problem definition
22
• Manually processing documentation resulting from subscriber services (contracts – activation and changes, communications, etc.) creates significant issues with the customer experience, enterprise information management, security programs and employee resources.
– Effort required by store reps, customer service, and call center associates reduces time spent with customers, more time handling paper/less time serving customers
– Exposure to security risks due to content that includes confidential information
– Storage - inability to access information in future (across retail environment and from storage location) and costs
– Deliver content in the manner/platform customers request
– Speed time to revenue – account activation required before billing begins
• Must continue to invest in technology to stay ahead of the competition but must also balance with the business organization‘s strategic goals such as enhancing company and employee productivity and improving the use of company assets.
• Processing paperwork from internal operations and customer interactions must be processed and archived in a manner that enables data compilation and easy access for future information searches.
• Must be vigilant and protect private information conveyed at all points through a converged communications network
• Must address document retention and compliance - automated tracking provides the comprehensive audit trails needed for Sarbanes-Oxley, HIPAA, and other regulatory/compliance requirements
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contained herein is subject to change without notice. Confidentiality label goes here
Business problem: Account Opening challenges Good customer service reduces churn • The customers‘ experience in the retail environment needs to be the best – from opening an account to reviewing
handsets • Technology is no longer a barrier – customers can easily move to another service provider with comparable
devices and services • Faster and easier access to information is required
It takes too long • The process on average could take 57 minutes which impacts the number of customers each retail associate can
serve • Waiting customers leave the store and may go to the competitor • Faster time to contract charging*
Contracts contain confidential information • Customer contracts contain confidential information which must be stored securely – storage of the contract
documents are often unsecured • Compromised customer information can lead to significant legal issues and resulting costs
It costs too much • Storage costs are high (delivery, retrieval and long term storage) • Corporate initiatives to reduce operating expenses • Printing volumes and costs are high
Customer contracts cannot be viewed across retail organization • If a customer visits a retail location to ask a question, it is likely their contract will not be able to be viewed by
another retail location • Other retail locations must fax customer contract to shop customer is visiting • Many service providers ask customers to come back at a later time or date to answer question
23
Manual processes for audit and tracking • Daily audit of sales contracts, discounts, promotions, etc. lead to reduced time on sales floor and manual
exception processing
*if mobile providers cannot begin charging until the paperwork is received in system
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contained herein is subject to change without notice. Confidentiality label goes here
Target customer profile
24
―Using our business output to provide a the best customer experience and to support our customers with a personalized user experience.
Director of Retail Operations
―We need to provide the best customer experience from the moment they walk in the store until the time they leave.‖
CEO, COO
―We need to improve our customer experience while we reduce operations costs, reduce complexity and the impact on environment.‖
Media/Library Heads
―It‘s more than reducing costs – it‘s linking across and automating business processes and improving the customer experience‖
COO, Business Operations
―We need to reliably support our customers and provide the best service and support to our internal and external customers.
Director of Retail Information Technology
Director of Marketing
Corporate Counsel
―Our customers entrust us with their information. Also, compliance is not an option and requires security and tracking of critical information.‖
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contained herein is subject to change without notice. Confidentiality label goes here 25 2/16/2012 HP Confidential
How do I target the right customers?
What accounts should I focus on? Service providers (telecom, wireless and
cable)
How do I contact the LOB?
• Determine the organization driving the retail operations and then ask for sponsorship into
a meeting.
• If you‘re not sure of the name of the organization, check the careers/jobs web site for the
customer. See next slide for who to call on and questions to ask.
Building a bigger story. . .
• Account Opening Accelerator can be part of a larger initiative they have: – Retail operations efficiencies – ensuring retail associates spend time with customers not involved in back office processes
– Improving the customer experience
– CRM – using customer data to create targeted communications
– Records retention - ensuring that they have appropriate documents available or destroyed
– Information lifecycle management
– Information security – reducing the risk of exposure of customer information
– Compliance - ensure that they are in compliance with local industry regulations
• Additional uses: Account Opening Accelerator can also be used for back office processes
- HR paperwork, inventory documents, sales reports
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contained herein is subject to change without notice. Confidentiality label goes here 26 2/16/2012 HP Confidential
How do I sell the solution to the LOB?
• Director of Retail Operations
• Director of Retail Marketing Operations
• Director of Retail Sales • Divisional Retail
Manager • Director of Retail IT
• Ask for a tour of a retail store. • What is the process for opening an
account or adding a new service? • What type of forms are required? • Do you need a copy of the
customer‘s license, credit card, etc.? • What type of documentation do you
provide to the customer? Coverage maps, terms and conditions, rates, additional services available?
• How are the forms processed after the customer leaves the store?
• How are the documents stored? • How long are they stored on site? • Is there an off site records
repository? • How are they moved to the records
repository?
Who to call on/Questions to ask
Before • time spent w/customer
• time spent processing paperwork (store manager and store rep)
• storage costs
• risks associated w/unsecure customer info
• contract fraud
• inability to attach new svcs to existing contract
• inability to locate contract information beyond store
After • improve customer experience
(reduce churn)
• increase number of customers served
• reduce printing costs
• eliminate storage costs
• reduce carbon footprint
• secure information
• contract/sales audit
• central repository lookup for services – contract available to mktg, call center, sales, etc.
Detailed process steps (1) Sales rep types in customer / contract information using HP Exstream Live connected to xxx CRM
system.
(2) Copy of customer identification may be required.
(3) Customers reads the contract and signs it electronically using an eSignature pad or sales associate prints contract and customer signs contract.
(4) If there is a signed document, the sales rep scans the signature page and any other pages that must be maintained for their files. The customer leaves with the hard copy and the service provider has the scanned image of the contract.
(5) Image of signed contract is pushed to xxx CRM system with all the customer information captured by HP Exstream Live.
(6) An email is sent to the customer through HP Exstream Live with a pdf version of the contract attached.
(7) A copy of the contract is sent to SharePoint for archiving with relevant indexes.
(8) Sales rep scans required documents (ID, bank statements…) using MFP. A cover sheet is printed with a unique ID (barcode) referring to the contract (or sales rep types in the contract ID on the control panel) for matching with Contract into SharePoint .
28
Before HP
Account opening for CME workflow
HIGHLY PAPER-BASED PROCESS NEGATIVELY IMPACTS CUSTOMER SERVICE and can pose significant costs and risks associated with unsecure information.
$2.34 Total page
dollars/contract
$70K PER YEAR Total costs (Off-site storage)
Off-site archive In-store storage Service event requires retrieval of contract
from off-site and physical transport back to store
$
Courier to archive
$
Retail associate scans and copies
required documents
Customer signs documents
Customer provides information
13 Total pages printed
Retail associate prints multiple copies for record-keeping
Customer receives hard copy of
contract
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Customer experience and cost per gross add
(current overall process cost) $300 to $400/customer
Current state process workflow
30
Reduce storage costs
Reduce risk of exposure to loss of
confid info
Improve overall customer experience = increased revenue and reduce churn
Significant Print volume
from contracts
Reduce environmental impact through reduced pages
Reduce environmental
impact by eliminating storage trips
Approx 1 hr/day per store
Required for sales audit
Avg transaction 57 minutes
Black line = in store contract process Red Line = process to retrieve contract
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Suggested offer addresses key pain points in the current process
Value proposition
TO future state…
• Multiple copies of contract printed and stored manually
• Service providers deal with paper based processes for customer transactions and internal processes in the retail environment
• Contract copies printed and stored in retail environment by sales associate
• Fax copies to review contract originated in different store
• Manual document based processes are inefficient, increase exposure to security risk, labor intensive and reduce time spent w/customers
• Cost to acquire a customer – Cost per Gross Add (CPGA) under scrutiny
• Operating expenses are unknown and out of control (printing, off site storage)
HP offer details
• Ability to offer completely paperless contract process.
• After data is captured in contract, copy of proof of identification may be required. Ability to capture and route proof of identity – license, passport or bank statement into customer database. No hard copy doc to store or expose to loss.
• No need for any documents or signature to be retained or archived (subject to legal approval).
• After signature, customers may want an electronic copy of agreement or small % will request hard copy.
• Provide real time search and retrieval to speed up customer service across all touch points. Ability for customers, other stores, mktg and call center reps to view agreements on-line.
• Store copies may be missing or incomplete
• Store copies are subject to theft, fire, or flood.
• Daily audit by mgmt of contract transactions automated with electronic contracts
SOURCE: Customer interviews, JD Power, team analysis
FROM current state…
• Revenue vs. CPGA
• Controlling operating expenses to enable improved technology and services
• Reduced opportunity for fraud
Offer addresses key pain points and presents opportunity to improve customer experience, reduce and improve multiple aspects of CPGA and reduce churn.
Service Provider Market
Efficiency Cost Savings Financial visibility
• Improved customer experience, reduced churn
• Decreased risk of exposure of secure information
• Reduce issues with compliance audits
• Ability to create targeted customer communications
• Process automation
• Efficient end-to-end processes resulting in improved operation, increases the number of customers served
• Ability to view contract - real time search and retrieval to improve customer experience across organization
• Reduced costs (printing, storage/retrieval)
• Increased productivity and reduced CPGA
• Potential for faster time to market
• Reduced carbon footprint
• Lower churn rate drives improved revenue and increased margin
• Fast, transparent and auditable processes resulting in confidence, satisfaction, low customer churn and increasing revenues
After HP Account Opening Accelerator
Account opening for CME workflow
AUTOMATED PROCESS IMPROVES THE CUSTOMER EXPERIENCE and can reduce costs, administration time, security risks, and carbon footprint.
0 PAGES PRINTED Documents delivered via email, internet portal, etc.
Customer provides information
Retail associate scans proof of ID
if required
75% REDUCTION IN STORAGE COSTS
Customer signs signature pad; wet
signature if required.
CUSTOMER DATABASE
ELECTRONIC ARCHIVE Contract image (not just data)
accessible to other retail locations, marketing, customer service, and call
centers for services
MULTI-CHANNEL DELIVERY
Contract delivered to customer platform of choice
Web
>$2M SAVINGS FOR 1M NEW CONTRACTS
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contained herein is subject to change without notice. Confidentiality label goes here
Improved customer experience, reduced churn and Cost per Gross
Add (current overall process cost) reduced by $3.5 mil*
Future state – Hybrid process workflow
Dotted line = adding the barcode or metadata via enterprise or Exstream
*based on 1 mil contracts
Electronic contracts enable access to contract by all retail outlets,
call centers and marketing and reduces requirements for fax
5% of contracts/1 hr per = $575K/labor Eliminates contract retrieval cost .46 and
100% reduction in fax usage for sharing info
HP Capture software
Eliminating need for off site storage. $77K for 100 stores - 100% savings
Significant reduction in opex and impact on the environment (no wkly/monthly pickup)
100% improvement
HP Exstream
Eliminating paper contracts eliminates risk and loss of confidential information
on site. Millions saved from lack of data
breach 100% improvement
Reduced printing costs by >60% $324K for 1 mil/yr
(sm % of customers still request paper contracts but none required
by store.)
Reduce time for audit of daily transactions by at least 50% 30 min/day per store, 360
days/100 stores = 18K hrs saved or over $207K labor
Streamlined process enables retail associates to spend less time on processing
contract and more time on educating customer or enables them to move on to next customer.
57 min/trans 5 min saved/trans x 1mil trans/yr = over 83K hrs 83K hrs = over $955K labor or 1,456 addl trans
Black line = in store contract process
Blue line = process to retrieve contract from external storage provider
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
High level solution – Account opening accelerator for CME
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Business process – High level flow
Customer Back-end Systems
Manage
Dashboard Business Activity
Monitoring BI Analytics
SLA tracking/ Op. monitoring
Channels Capture Validate Collaborate Integrate
Scanning Format
Verification
Backend Validation
Fax
EDI* ERP
Legacy
Others
Image Enhancement
Workflow management
Queue management
Shared services
Security Reporting tool Audit Trail Document
Management
Operational Data store
Utilities
Notify Real-time analyzed data
Retail associate
Real-time data
Corporate HQ IT
Real-time Integration
Batch Integration
Data Enrichment Data extraction Adapter factory
Variable Document printing
CRM
Process Specific Applications
Retail Operations
Operational Data storage
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contained herein is subject to change without notice. Confidentiality label goes here
Savings per contract
Current average CPGA = $300 Savings and new average cost = $297 Total $ savings over 1 mil contracts = $3.5 mil
Type of savings Cost per contract
Reduced print costs .32
Reduced storage costs .31
Reduced contract retrieval .46
Reduced fax costs .07
Subtotal hard costs 1.16
Reduced labor cost for contract/document retrieval .57
Reduced time per transaction .96
Reduced labor for audit .82
Total 3.51
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Elements
Creating the ROI
Input Data
Input variables Input values
No Of Stores 400
No Of Contracts 1000000
Average Pages Per Contract 3
No of Boxes per Month Per Store 3
% of Contracts Retrieved 5%
No Of Working Days 312
No of contracts per store per day 10
Fixed Data
Fixed variables Fixed values
Cost per page $0.18
Cost per Pick Up $2.01
New contract Archiving per Box $19.56
Time Taken per retrieval (Hrs) 1
labor cost of an average retail associate ($) $11.51
Contract Retrieval fee $9.2
Fax line Cost reduction $180
Time per transaction (mins) 57
Reduction in time (mins) 5
Time taken For Audit (mins) 30
Average Week 6
Reduction in Contract Printing 60%
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Results
Creating the ROI (cont’d)
Particulars $ Savings
Reduced/Eliminated Printing Costs $324,000
Reduced Storage Costs $310,608
Reduced Time and Cost per Contract retrieved $1,035,500
a) Labor Savings $575,500
b) Contract Retrieval fee Savings $460,000
Fax line Cost Reduction $72,000
Reduced Time Per transaction $959,167
Auditing Savings $718,224
Total $ savings per Million contracts $3,419,499
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Impact areas
Description Impact
Hard Cost
Soft Cost
Customer Experience
Customers
• Unable to view agreements on-line
• Unable to view agreement at other stores
X
X
Operations
• Printing (paper, toner, maintenance, downtime)
• Delivery of agreements to Iron Mountain
• Retrieval of agreements from Iron Mountain
• Too-frequent printer failures may create sales bottlenecks in stores during periods of peak volume
• Inefficient process for viewing agreements archived at Iron Mountain
• Inconsistent processes in place for retention of agreements within stores
• Ability to complete a sales transaction without printing store copy or obtaining customer signature
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Impact Areas (cont’d)
Description Impact
Hard Cost
Soft Cost
Customer Experience
Call Centers
• Unable to view agreements on-line to resolve customer disputes
• Refer customers to stores to obtain a copy of the agreement
• Increases time and expense for dispute resolution
X
X
X
X
X
Security
• Agreements with sensitive information in back office and mall storage areas
• No disaster recovery if copies (in-store, in-mall, or at Iron Mountain) are destroyed by fire or flood
X
X
Sales & Marketing
• Customer experience varies by store
• Competitors offer paperless agreements
X
X
Store Management
• Spend time daily reviewing 100% of agreements even if not all have exceptions
• Storage of agreements could be used for marketing materials or additional product
X
X
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Total first year cost per 100 stores - $977,955
Account opening accelerator for service providers
Devices all extensible MFP‗s
MPS - 2 MFPs x 100 stores = $194,370
Software Content Capture OCR
Management tools/Composition engines
Exstream
or OmTool or Hyland or Nuance
Kofax Capture License for 2 MFPs x 100 stores = $264,868 and $250,000 Exstream
HP Exstream
Services & Support • Assess it
• Design it
• Implement it
• Keep it running
Kofax Capture Support/Service $66,217 + Exstream $52,500 support + $150,000 services
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Service provider economics: Offer presents a $1.5 M opportunity
Value proposition
42
300
3
297
0
100
200
300
Current cost per
gross add
Value released by
offer
Future cost per
gross add
Key assumption: HP can capture half of savings through paperless contracts.
Economics for service provider (cost per gross add)
300
297
3
1.5m
1.5m
0
100
200
300
Total cost per
contract
Spend not
addressed by offer
Spend addressed by
offer
Value released to
customer
Revenue opportunity
= 400 stores
Account opportunity ($ 5MM for 400 stores)
1. 1m in Europe net adds contracts net adds in 2010 2. Spend on non-document processing activities
SOURCE: customer data, industry analysis
1 2 2
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Market opportunity: Service provider industry analysis Business imperatives for service providers, challenging retail
operations and contract process
• Cost reduction initiatives – Operating expenses are continually being cut to provide funding to improve infrastructure, services, content, customer experience, etc.
• Customers require personalized experience – customers expect information and content to be delivered in the manner they request
• Tightening operating expenses- Increasing competition limits revenue, so the Cost Per Gross Add and Cash Cost per User are under scrutiny
• Provide Best Customer Experience- new technologies enable customers to move from one provider to another if they don‘t receive the best customer experience
All of these imperatives point to a simultaneous focus on improving the customer experience, transforming the infrastructure and improving efficiency
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Business case for HP Account Opening Accelerator/Paperless Contracts
Eliminate or reduce paperwork required for new account opening process and
storage requirements for paperwork
Enable sales associate to increase customer
interaction relevant to smartphone features by reducing time for contract transaction
Reduce exposure to security risk through
unsecured customer information
Reduce printing and storage costs
Reduce environmental impact through reduced printing and pick ups by off site
storage provider Auto create personalized welcome kit and deliver customer information in their
chosen delivery method
Improve time to revenue
Reducing overall operating expenses due to reduction in CPGA =
significant savings
Improve customer experience—reduce operating expenses
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Account Opening Accelerator for CME
Before •time spent w/customer
•time spent processing paperwork (store
manager and store rep)
•storage costs
•risks associated w/unsecure customer info
•contract fraud
•inability to attach new svcs to existing
contract
•inability to locate contract information
beyond store
After •improve customer experience (reduce churn)
•increase number of customers served
•reduce printing costs
•eliminate storage costs
•reduce carbon footprint
•secure information
•contract/sales audit
•central repository lookup for services –
contract available to mktg, call center, sales,
etc.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Customer – Telefonica O2 Account Opening Accelerator - paperless contract
processing (first step - deploying mfp’s, next steps planned)
(1) Data entry into AOA Module
(2) Electronic signature of the contract captured by AOA
(4) Electronic version of signed contract sent via email to customer
(5) Electronic archiving of contract in SharePoint
(6) Scanning of required attachments (ID, bank statement…) archived into SharePoint (attached to the contract)
O2 CRM
(3) Image of signed contract + contract information sent to CRM
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Communications, Media and Entertainment Snapshot
47
2/16/2012
• Application development and maintenance Services
• Fraud Management & Service Assurance - COTS platform enhancements and support
• Network Management
• Supporting critical Provisioning and service fulfillment systems
• Supporting critical Order management systems
OSS
• Supporting mission Critical
Billing applications both retail
and wholesale systems
• Application Development and
Maintenance for Convergent
Mediation COTS Platform
• Systems Integration
• Data migration and transition of
a critical billing system
BSS
• Content Production
• Content Management
• Content Distribution
• Editorial Services
• Entertainment Experience
Management
• Market Research
• Media Monitoring &
Analysis
M&E
Differentiated Value Prop
• Large transformation program/ project management capabilitych
• Excellent understanding of CME customer needs and domain gained through experience servicing customers across the globe
• Innovative service delivery set with a focus on operational efficiency, delivery excellence and a cost effective 80/20 offshore/onshore model
• Expertise in Agile Factory model
• Blend of domain/technology expertise in packaged/custom apps, systems integration, self-service portals/content management and testing leading to an improved customer experience
• 1800+ Application Services team focused on Telecom and related technologies (3200+ in BPO) • 700+ BPO FTEs providing end to end services to the client • Key Support for Network and Business Applications for a couple of leading US CSP‘s with an 15:85 on/off mix • Servicing CSPs, OEMs and M&E clients in EMEA, APAC and Americas • Trained and certified Telecom professionals • Applications Services across the Telecom Applications Map • Over 10+ years of service excellence across clients
CM&E
• Supporting Wired Line,
Wireless and Cable
• Providing end to end services
from new customer acquisition
to servicing through multiple
channels
BPO
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
MphasiS CME Offerings & Solutions
48
2/16/2012
• Dedicated Apps team
• Apps Consolidation , Modernization
Rationalization
• Apps Portfolio Assessment • Domain & Industry experts –
US,EMEA & APAC
• Deep pool of experienced Siebel resources
• Global Delivery Team (Right Shoring)
• E2E solution from strategy to AMS
• Experts in Managing Complexity meeting clients needs
• Strong alliance with Oracle in Siebel space
• Customized methodology designed to meet the specific needs of Siebel Projects
• Self-Service -to manage their accounts and perform transactions
• CMS -to provide dynamic information about product services and network management and infrastructure information to clients
• Portal Platform Architecture
• Multi-Functional Web Portal Integration
• End-to-end services implementation, upgrades, migration, maintenance and support
• Native Apps • Application Data Mgmt • Mobile Web Connect • Device Drivers • Usability
• BI on Mobility
• Revenue Assurance
• iCRM
• Identity Management
• Click to Connect
• Test Lab
• Digital Media Management Framework
• Dedicated Application Services Team focused on Billing, Mediation and Interfacing Applications
• Mission Critical Billing Operations for one of the largest Custom Billing Platforms
• Certified Billing Professionals at various levels - Fundamentals, Advance, Proficient, specific COTs Products
• COTS expertise – Intec, LHS, Oracle BRM
• Billing Solutions COTS Billing Product Adapters
CME
Offerings
Point
Solutions
Mergers,
Acquisitions
&
Divestitures
Mobility
Enterprise
Applications Portals
Billing
CRM
Testing
• Test Automation Framework
• Call Graph - Regression
Testing Framework
• Orthogonal Array
•E-Bonding
• Mobile Payment
• Commission
•Order Management
• Marketing Analytics
BPO
• Over 10+ years of service excellence
• Right mix of voice and non- voice footprint with committed focus on process excellence
• Complete portfolio of CME BPO Services
• End-to-end data processing in a secure environment
• 800+ deep pool of experienced
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Competitive landscape
• None of the competition have chosen to address the industry with industry specific solutions.
• All of them have capture capabilities and could partner to produce paperless contracts. None of them have the ability to provide an Account Opening Accelerator solution/paperless contract solution that can also grow to address all customer communications without major partner engagements.
• See slides that follow
49
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Xerox/ACS: Account opening capabilities
Competitive landscape
50
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Global offices and delivery centers – strategic alliances enable global reach
• A/P services delivered from near-shore/off-shore locations – courtesy ACS
• Through ACS, Xerox can offer completely outsourced account opening – contracts printed in store, processed and archived by ACS
• DocuShare CPX software application acts as enabler – can be integrated with Kofax
• May also choose to use other capture/workflow products
• Ability to turn statements into advertising vehicles - courtesy PlanetPress Suite from ObjectifLune. BI engine?
• Xerox and ACS both have in-house professional services teams
• ACS‘s acquisition of Systech Integrators (2006) added focus on SAP consulting services – added offshore consulting capabilities
• ACS provides integration capabilities with major ERP systems
• Offered across verticals, including:
– Healthcare
– Insurance
– Manufacturing & Distribution
– Retail
– Telecom
– Transportation
– Banking
Telecom
• Aliant‘s re-designed monthly bills to please customers and cut costs
• Telecom Egypt, the country‘s only provider of fixed telephone lines, outsourced billing to improve cash flow and save $12 million (US) annually on overdraft charges
Network Equip Provider
• A global high tech company implemented a solution for ―proposals on demand‖ to produce high-quality responses to RFPs in 20 different languages and increase their sales win rate
Solutions and capabilities are in place but not utilized for
industry solution.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Lexmark/Perceptive: Account opening capabilities
Competitive landscape
51
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• On premise & SaaS solution
• Customizable workflows
• Indicates worldwide but likely to be North America and Europe centric
• Perceptive is the IP and solution arm – however NA centric. Lexmark will need to leverage presence in other geographies to scale delivery/offering
• Account opening solution combines Lexmark hardware & Perceptive ImageNow platform
• Perceptive has industry-specific partnerships. Ex: Brainware for intelligent data capture solutions in accounting & financials industry
• *ImageNow provides unified environment/platform for document management workflows/processes
In house consultative division providing:
• Discovery programs
• Solutions Development and Integration Systems Engineering Resources
• Perceptive industry-specific partnerships also includes consulting in some regions/countries. Ex: Optim2 in ANZ for financial-related back office functions
• Integration with ERP systems, as well as legacy applications
• Financial Services
• Healthcare
• State Government
• Retail
• Mfg & Distribution
• Hospitality
• Energy & Utilities (Lexmark hardware & doc distributor software integrated with FileNet capture; hardware also has embedded Kofax DES client and integrated with Kofax Doc Exchange Server)
• Telecom
Telecom solutions:
Signage and shelf label solution
Workflow improvements
Healthcare:
• Cedars – Sinai
• Invoice processing; Integrated with PeopleSoft
• Mercy Medical Center Accounts Payable; Integrated with Meditech & Mysis Vision apps
Energy & Utilities:
• Deep Marine Technology Accounts Payable; Integrated with Microsoft Dynamics SL
• Aqua America, Inc. Accounts Payable; Integration with Lawson Financials
Solutions and capabilities are in place with partners
but not utilized for industry solution.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Ricoh: Account opening capabilities
Competitive landscape
52
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Largely Europe and NA centric
• Have capture and partner solutions that could provide in house or outsourced – account opening solution but not messaged to industry
• Ricoh provides the hardware, and combines with partner capture, routing & workflow software to deliver on premise invoice processing automation
• Solution partners include: EMC Captiva & Documentum; Kofax; Interwoven, IBM, Open Text, and Oracle (Stellent), ReadSoft, Basware (Ricoh acts as reseller)
• Leverage IBM relationship as access point for enterprise accounts
• Owned professional services capability mainly through IKON
• Fills gaps with regional SI partners that may be aligned to specific verticals
• Publicly announced solution wins have been across manufacturing and postal/parcel services
• Ricoh has limited marketing message to industry
Manufacturing
• Mammoet Scanning, data capture, routing & storage of accounts payable invoices; Ricoh combined with ReadSoft and CTAC (Dutch IT service provider – customization of invoices to integrate with SAP ERP)
Manufacturing
• Mammoet i-invoicing solution; production of invoices & statements at Ricoh‘s external print facilities; claims to have cut time-to-invoice by 4 days and cut production costs by 20%
Solutions and capabilities are in place with partners
but not utilized for industry solution.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Canon: Account opening capabilities
Competitive information
53
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Mainly in Europe and North America
• On premise only
• Owns imageWARE software – includes document manager, web document server, scan manager, workflow composer
• No specific/articulated solution with regard to telecom or account opening solutions
• Several software partnerships for OCR, capture, archival, retrieval etc
• For invoice processing main partner is IRIS – provides an automated document & information capture solution in Europe. Canon also bought a 17% stake in the company
• In house consultants for assessment, implementation, deployment, training and support
• Acquired PS from Océ but mainly in commercial & production space
• No mention of ERP integration
• No specific verticals targeted for account opening
• Industry focus solutions highlighted – education, financial, legal and healthcare
• Success stories show that solution is available for a variety of verticals such as, real estate/property management
Real Estate
• Customer name: NA Worked with Canon Professional Services to implement solution; customer installed imageWare scan manager, imageWare document manager and Canon hardware
Solutions and capabilities are in place with partners
but not utilized for industry solution.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Competitive differentiation: Account opening capabilities
54
Capture
Professional Services
Integration w/ ERP
Customization
Archiving
Routing/ Workflow
• Competitors are equipped with basic component of account opening solutions
• No industry messaging
• Many overlapping partners but they are not developing the solution to meet the customer needs
High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)
SaaS
Business Intelligence
Retrieval
Lexmark Ricoh Canon MES/ MphasiS
Xerox
• Gap in competitor offerings around Exstream, SaaS and business intelligence
• Emphasis around these capabilities will create differentiation for MES offerings
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Existing MPS footprint
55
Top CME by Global 500 MPS Trans Solutions
AT&T X X
Vodafone X X X
Telefonica X X X
China Mobile
Nippon Telegraph & Tel (Japan)
Verizon Communications X
France Telecom X X
America Movil X
Deutsche Telekom X X X
Telecom Italia X X
China Telecom X
KDDI (Japan)
China Unicom
Telstra X
Softbank (Japan)
TeliaSonera Group X X
BT Group X
Bell Canada X
Telenor X X X
KPN X
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Examples of the number of retail stores per service provider
56
Owned and partner
Vodafone (globally)
Vodafone Hutchison Australia (VHA)
2200 + 10,300 (franchise)
240
Telefonica O2 (UK) 483
Bell Canada (+ Virgin Mobile Canada) 400+
US Cellular 375
Telefonica O2 (Germany) 230 + 600-700 franchise
CenturyLink (US) 185 + resellers
Telstra (Australia) 200 + 50 SMB + 5 EBC
1,000 (franchise)
Vivo Telefonica (Brazil) Approx 100 + 1,000 resellers
Telefonica (Spain)
Telyco
Approx 1,000 total
500 Remaining franchise
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
HP Distributed Workflow Solution
for Healthcare
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Agenda
58
• Business Problem Definition
• Target Customer Profile
• Value Proposition
– Current State
– Suggested offer addresses key pain points
– Future State
• High Level Solution
• Reference Architecture
• Solutions Offer/Pricing
• Value Proposition Economics
• Market Opportunity
• Competitive Landscape and HP Differentiation
• Existing MPS Customer Footprint
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Business problem: Admissions process challenges
59
The system is prone to human error
• Multi-step process that is complex in nature and heavily paper based
• Human error at the point of admissions may result from the need to pull documentation from multiple imaging and print devices for wristband, labels, face sheets, pulling of preprinted forms, all to build the patient admissions packet.
• Need to improve patient outcomes with the right information at the right time in the right format so better bedside decisions can be made
Need to shorten revenue cycle, improve patient experience
• Accuracy in capturing all patient documentation at the point of admissions is the key to shorten revenue cycle. Missing information for insurance claims means delayed reimbursement
• Pre-Printed forms become obsolete, delay reimbursement if submission of incorrect forms occurs.
• Patient satisfaction issue when patient must complete and sign the same forms over and over again
Process Varies depending on type of admission
• Inpatient (we are focused here for phase 1 solution implementation)
• Outpatient
• Emergency Room
• Pre-Admission/Kiosk
Security starts with Patient Information at Admissions
• Need to audit and track anyone who scans into or prints off of a patient record
• HIPAA Compliance
Space is a premium
• Optimization of infrastructure is needed, too many disparate devices in a small space
• Multiple brands Zebra thermal printer, HP, Copier vendor – multiple supplies contracts, maintenance contracts
• Crowded chaotic work environment
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Target customer profile
60
―I need to find a way to reduce the number of paper records per patient chart via distributed departmental scanning‖
Chief Nursing Officer
―Increase productivity to improve facetime with patients. Help automate paper intensive workflows & patient communications to improve outcomes‖
Chief of Compliance
―Propose solutions that will ensure security of private health information and reduce risk of breach. Understand compliance laws in my country‖
Media/Library Heads
―Help me get the right information to the right place at the right time and in the right format, reduce medical error while improving outcomes.‖
Chief Medical Information Officer
―IT resources are tied up with EHR initiatives like CPOE and compliance guidelines. I need solutions that will free up IT resources to focus on these projects as well as secure PHI‖.
CIO/IT Manager
Director of HIM, Medical Records or the Records Manager
Director of Admissions
―Help me reduce the number of steps it takes to admit a patient and automate to reduce human error., speed up revenue cycle‖
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
After HP Laser Patient Identification and Distributed Workflow Solutions
Patient Admissions for Healthcare Providers
PROCESS ADMISSIONS + COMPILE ADMISSIONS PACKET
Replace a copier, laser printer, fax, thermal printers, pre-printed forms, and an addressograph machine with one HP MFP
with pull printing and color wristband printing capability and eForms-enabled software.
Pull record from MR storage
PRE-ARRIVAL
Collect external diagnostic documentation
Schedule in-house services & orders, assign bed
ADMIT
Admit and deliver treatment
Archive medical records electronically
• Securely scan hardcopy data to workflow via HP MFP.
• eSignatures applied to eForms.
• Print patient admissions packet from same MFP
Process information digitally
with EMR
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Current state: Patient admissions
Value proposition
Assumptions: Times refer to labor touch time processing the paper forms and not cycle time ; based on case studies and assessments 350 bed hospital in process of EMR & CPOE Implementation • Key cost driver: Manual Paper Processes • Result in human error • Missing/lost info can cause adverse events/delay rev cycle • Pre-Printed Paper forms that turn obsolete delay claims
2. Source – Forrester Total Economic Impact of Perceptive ImageNow, April 2008 3. Sources – ROI Case Study, ImageNow at Citizens Memorial Healthcare by Nucleus Research
$/hour FTE cost 2
FTE//patient 1 hours $ Labor cost
Relevant fees ~$30 per month/analog phone line4
IT costs ~$1,0 00.00 patient/year
~$ 40 per patient
~1 hour per patient per 4 day stay
Collect docs such as referral forms, Physician Orders, test results : copy, Courier or fax
5
Data Entry/Signatures Pre Printed Forms Print, Wristband, label, blue card Retrieval
Pre Admission/Storage
Admitting picks up face sheets from Printer
New patient – labor costs
Addressograph embosses blue card – picked up by admitting
8
~.75 hours/patient ~$22.50/patient
6 I
7
Collection of documents and manual chart creation
Collection of forms that become obsolete and lengthen revenue cycle
80 % of this process is paper in worst case scenarios, external documents may arrive electronically, via fax from Primary Care Phys
.15 hrs per patient
$6.00/patient
~$ 68.50 per patient (~58% in-hospital, ~42% pre admit & post discharge)
~1.90 hours per patient per 4 day stay
Admitting picks up Patient Wristband from Wristband Printer
Admitting picks up Patient labels from Wristband Printer
Pre –admission scheduling, bed assigned
Manual paper transport – Courier, fax, email, phone
Data entry
Offsite paper chart storage/retrieval required per admission for 7 yrs aduls, 20 yrs child.
30 .50
15.00
40 .03
1.20
40 .03
1.20
Patient documents collected, copied, & placed into chart- copy of insurance card delivered to finance
40 .16
6.40
Admissions personnel populate (type) EMR w/patient update & admits patient into HIS
40 .16
6.40
Patient signs HIPAA/consent forms, Health History forms completed. Forms are placed into chart
40 .08
3.20
Pre-Printed forms collected per diagnosis per insurance coverage and other situations and placed into record
40 .16
6.40
Medical records pulls patient record from MR storage and sends to admissions – external documents rec‘d
30 .5
15
30 .25
7.50
40 .03
1.20
40 .06
2.40
Prep/Info Collected
1 2 3 4 0
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Suggested offer addresses key pain points in the current process
Value proposition
TO future state…
• Manual pulling of records from Medical Records storage and courier to Admissions
• Patient completes multiple forms requiring duplicate data
• Insurance verification slow as insurance cards are copied and faxed to finance
• Patient completes multiple forms requiring duplicate data
• Pre-Printed forms become obsolete and delay reimbursement
• Multi step admissions process with manual copying of documents and pulling Pre printed forms to create admissions packet
• Storage needs for all patient records, high cost and slow retrieval of important information needed when patient readmits
HP offer details
• Scan and digitize all incoming docs directly into Workflows to ECM or EMR Repositories and/or BI systems
• Conduct OCR, if necessary, on docs to extract relevant information
• Check for errors in information extraction and correct them
• Provide patients longitudinal health record at point of care
• Convert paper based forms to electronic with e-signature capability
• Speed up revenue cycle with all correct versions of forms made available electronically and all necessary information is available at time of claim
• Provide real time search and retrieval to greatly improve patient outcomes by getting the right information to the right place at the right time in the right format so more informed decisions can be made at the point of care
• Data is now available to the Health Information Exchange for all key stakeholders in ACO to access as needed
Detailed flow follows SOURCE: Workflow Assessments, Strategy Consultation Programs, Team analysis
FROM current state…Prone to Human error that can cause adverse events and delay reimbursement…
• Multiple devices needed to complete admissions packet: 1 printer for wristbands, 1 printer for labels, Copier to copy patient documents 1 printer for face sheets, Addressograph for blue cards, etc.
• Medical History pulled electronically at point of admissions greatly reducing costs & improving clinical decisions.
• Improve patient satisfaction with simple verification of existing data in PHR.
• Revenue cycle improved as insurance verification is immediate
• Digital signature eliminates need to print paper
• Eforms allow fast patient onboarding
• One step admissions process including eForms processing greatly reduces human error!
• Storage needs eliminated with electronic medical records and all incoming paperwork digitized at the point of capture
• One MFP with Access Control needed to automate the Admissions Packet
Offer addresses key pain points, improves patient outcomes, speed sup revenue cycle and presents opportunity to reduce processing time by 50%
Admissions
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Before HP
In-Patient Admissions for Healthcare Providers
Pull record from MR storage
PRE-ARRIVAL
Collect external diagnostic documentation
Schedule in-house services & orders, assign bed
PROCESS ADMISSIONS
Copy inpatient ID, physician scripts, insurance card,
lab results, etc.
Imprint hospital blue card
Collect hardcopy updates to medical history, signed consent to treat & HIPAA
consent forms
Enter data to update EMR in HIS
Begin to compile chart
Copy forms to add to chart
COMPILE CHART
Print sheet of labels
Pull preprinted forms
Print face sheet
ADMIT
Admit and deliver treatment
Archive medical records
Print wristband on thermal printer
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Future State: Patient admissions automation
Value proposition $/hour FTE cost 2
FTE//patient 1 hours $ Labor cost
Results: 42% DECLINE IN COSTS CUT TIME TO ADMIT IN HALF • Key cost driver: Manual Paper Processes • Result in human error/adverse event reduction • The right info is at the right place at the right time, saving lives! • Pre-Printed Paper forms that turn obsolete delay claims
0
~$ 24.60 per patient
~.5 hour per patient per 4 day stay
Scan to workflows on MFP GUI
Print, Wristband, label, blue card Retrieval
Pre Admission/Storage
~.5 hours/patient ~$15.00/patient
0 hrs per patient
$0/patient
~$ 39.60 per patient (~62% in-hospital, ~38% pre admit & post discharge) vs. ~$68.50 per patient in current state
~1.0 hours per patient per 4 day stay
Admissions personnel pulls patient record from EMR, patient updates history via tablet and signs all forms digitally
Pre –admission scheduling, bed assigned
E-admit
Patient Chart retrieve from storage &deliver to Admissions Collect docs & insurance then copy, courier or fax EMR Data Entry of patient updates Pre-Printed forms stored and collected during admit, requiring periodic audit of forms on hand for obsolescence Blue Card creation and embossing of forms and ID bands Multiple devices each printing one thing: wristbands, l abels, face-sheets, blue cards consolidated to one MFP
Following Processes handled by ECM or eliminated:
2. Source – Forrester Total Economic Impact of Perceptive ImageNow, April 2008 3. Sources – ROI Case Study, ImageNow at Citizens Memorial Healthcare by Nucleus Research
30 .50
15.00
Admitting picks up Patient Wristband from Wristband Printer
6
0 0
0
5 Admitting picks up Patient labels from Wristband Printer
0 0
0
Admitting picks up face sheets from Printer
7
0 0
0
Addressograph embosses blue card – picked up by admitting
8
0 0
0
Offsite paper chart storage/retrieval required per admission for 7 yrs aduls, 20 yrs child.
0 0
0
Admissions advocate authenticates at MFP and scans all patient documents directly into workflows
1
Patient is admitted into HIS system & Complete Admissions packet prints on MFP: eForms, face sheets, wristbands and labels
40 .08
3.20
Collection of forms that become obsolete and lengthen revenue cycle
Pre-Printed forms collected per diagnosis per insurance coverage and other situations and placed into record
0 0
0
4 3
Admissions packet printed
Data entry
Admissions personnel populate (type) EMR w/patient update & admits patient into HIS
0 0
0
2
40 .16
6.40
40 .25
15
Data Entry Pre-Printed Forms
Admit
Packet printed Doc Capture EMR Accessed Data Entry
Enabled by ECM &
Workflow
Enabled by pull print, doc
capture & EMR
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
High level solution – HP patient admissions automation
Smartphone Portal
Fax email
HIE Health Information Exchange
Electronic Medical Record
HP Business Intelligence Solutions
Patient Accounting System/Revenue Cycle
4. Hyland OnBase Repository
Patient referral documents, test results, imaging, consent forms, HIPAA forms may also be faxed , emailed, sent to the automated workflow via
portal or smartphone prior to admission
Once scanned automated workflows based on rules based logic, will direct information to the EMR, BI System, Patient Accounting as
appropriate as well as integrate with HIE.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
High level solution – HP in-patient documentation
(On Premise and SaaS)
Patient Documentation
HR, AP, Admissions, Nursing Station, Medical Records, ER
(Hyland OnBase)
Tablet
w/HP Access Control
Route Electronic Content
Management (Hyland OnBase)
MultiFunction printer w/ automated
workflows based on authentication
EMR/HIS Applications
HP Business Intelligence Solutions (Clinical Analytics)
Patient Accounting Application (Revenue Cycle)
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Business process high level flow
Hospital Back-end Systems
OnRamp and Off-Ramp
MFP
Multi-Channel
LAN/Analog Fax (from Phys Ofc)
ERP
Legacy
HIS
Shared services
HPAC For Security
Reporting tool Audit Trail Utilities
Pt. Claims
Admin
CRM
Admissions Clerk/Nurse
Operational Data storage
EMR
Smartphone Tablet,
Signature Pad
• Patient documentation DL, Ins Card, Referral • Forms processing – HIPAA, proc consent… • Scheduling • Admission packet creation – face sheet,
wristband, forms, labels
Manage
Longitudinal Health Record
Deficiency Reporting
Electronic Signatures
Operational Data store
Notify Real-time analyzed data
Real-time data
Access
Validate
Format Verification
Backend Validation
Data Enrichment
Patient ID
Clinician
Collaborate
Workflow management
Clinical Decision Support
Referring Physician
Integrate
Real-time CRM Integration
Real-time AP/AR Integration
Real-time EMR Integration
Real time HIS Applications Integration
Capture
HP MFP for Scanning
Hyland/KOFAX? Image capture, enhancement
Data extraction
eForms
Hospital B/O
Patient Documentation Lifecycle
Clinical Workflow
Discharge Process Admissions
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
HP patient documentation/admissions solution
Solution offer/pricing
69
Customer Profile
• 2000 FTEs/350 hospital beds etc.
Price: $2.01M
• Hyland – $550K, Capella – $250K, HPAC – $250K , Hardware $969K
• Incl. sw license, installation, training and one year maintenance
Exam
ple
ref
ere
nce
pri
ce
Software
• Hyland Onbase, Capella, Silanis (eSignature)
• HP Access Control
Services & Support
• Assessment, Strategy Consultation Program
• Architectural Design , Portal Registration?
• Implementation Into EMR for eForms, Wristbands, Onbase
• Post Sales Support
Devices
• Workgroup & Dept MFP CM3530,HP ScanJet 7000 PC attached
• HP Access Control
• Slate (WebOS)
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
HP patient documentation/admissions solution
Solution offer/pricing
70
Customer Profile
• 4000 FTE‘s/700 hospital beds etc. Departmental/Enterprise
Price: $4M:
• Hyland – $1.1M, Capella – $500K, HPAC – $500K Hardware $1.9Mncl. sw license, installation, training and one year maintenance
Exam
ple
ref
ere
nce
pri
ce
Software
• Hyland Onbase, Capella, Silanis (eSignature)
• HP Access Control
Services & Support
• Assessment, Strategy Consultation
• Architectural Design , Portal
• Implementation Into EMR for eForms, Wristbands, Onbase, Post Sales Support
Devices
• Workgroup & Dept MFP, HP ScanJet Scanners
• HP Access Control, Slate (WebOS)
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
HP patient documentation/admissions solution
Solution offer/pricing
71
Customer Profile
• 12000 FTE‘s/2100 hospital beds (IDN). Departmental/Enterprise
Price: $12M discounted approx. $10M
• Hyland – $3.3M, Capella – $1.5M HPAC – $1.5M Hardware $5.7 ncl. sw license, installation, training and one year maintenance
Exam
ple
ref
ere
nce
pri
ce
Software
• Hyland Onbase, Capella, Silanis (eSignature)
• HP Access Control
Services & Support
• Assessment, Strategy Consultation Program
• Architectural Design , Portal Registration?
• Implementation Into EMR for eForms, Wristbands, Onbase
Devices
• Workgroup & Dept MFP , HP ScanJet Scanners
• HP Access Control, Slate (Web OS))
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Additional Benefits Achieved Q1 09 to Q1 10:
• 88K medication errors avoided
• 7 of 10 ED departments improved triage performance
• Patients requiring angioplasty within 90 minutes of arrival improved from 78% to 90%
• Percentage of outpatient surgery patients requiring antibiotics started within 60 min of incision increased from 84% to 92%
• CPOE reduced medication order entry to administration from 59 min to 4 min
• CPOE and EMR decreased time from order written to administration from 132 min to 38 min
• Elimination of duplicate orders reduced inpatient lab tests by 5.5%
• Time from bed assignment to admit an ED patient decreased by 90 min
• Patient scheduling ave. speed to answer reduced from 71 to 10 seconds and abandonment rate reduced from 9% to 3%
• Readmission ratios reduced at each hospital by 5% to 18% (still high)
• Sentara‘s CMS core green measures doubled from 36% to 72%
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$248 $193
$55 0
50
100
150
200
250
300
Current cost per patient Value released by offer Future cost per bid packet
Key assumption: HP can capture ~78% of the value released by the offer ($193) with full automation of paper processes in Admissions, ED, Patient Care, Medical Records and Discharge
Economics for healthcare provider (e.g., Sentara Health) per patient ($)
Value Proposition – Sentara healthcare offer presents a $22.25 MM savings opportunity
Sentara Health Benefit Summary ($22.25 MM Total)
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Market opportunity: Healthcare industry analysis Business imperatives and drivers for healthcare providers
• Reduce Medical Errors and Costs – U of Utah found Adverse Events 10 times higher than previously estimated using most commonly used metrics.
• Meet Compliance- Health Care Data Breaches Affect 10 Million Patients Since Fall 2009
• Declining Re-imbursement rates- Centers of Medicare/Medicaid payment declines average 2% per year per ICD-9 code. Improved outcomes will improve re-imbursement
• Electronic Medical Record Acceleration – Ave upgrade to meet ―Meaningful Use is over $50M and consumes most IT resources
All of these imperatives point to a simultaneous focus on streamlining paper patient documentation, improving efficiency, and enhancing
patient outcomes
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contained herein is subject to change without notice. Confidentiality label goes here
Xerox/ACS: Patient care documentation
74
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Key Customer Wins
• On-site solution: End-to-end capture, workflow, archiving, retrieval and customization. Structured to meet compliance needs – HIPAA and JCAHO
• Cloud-based solution:
• Recent acquisition of Credence Healthcare Inc, provider of software that captures and analyzes patient data
• ACS has a strong presence in government and commercial healthcare sector – acquisition of Midas in 1998 provided capabilities around data mining and analytics through the MIDAS+ software suite
• ACS has long history of acquisitions and partnerships in healthcare sector*
• DocuShare and DocuShare CPX are owned content management platforms that enable capture, collaboration, workflows, archival and retrieval
• Host of partners across the patient care documentation process for scan, capture and workflow – Ex: Aquifer EHD Edition from WaterWare Internet Services – allows hospitals and medical clinics to gather & organize patient information
• ACS offers transactional BPO, IT infrastructure management, analytics systems, advisory services and application services across the healthcare industry
• Xerox and ACS both have in-house professional services teams
• ACS‘s advisory services span – hospital-wide assessments, clinical transformation, readiness assessments, end-to-end revenue cycle assessment, RHIO assessment, modeling and planning
• Case studies indicate that Xerox performs a comprehensive evaluation of the workflow & integration of the proposed solution
Healthcare/Hospital
• White Memorial Medical Center
• Combined DocuShare with Aquifer and Nile Pharmacy and Xerox MFPs to scan & manage patient files and medical records. Claims to have saved as much as $200,000 per year on storage fees & admin. Costs
Healthcare (ACS)
• Mater Dei Hospital (Government of Malta)
• Deployed laboratory and radiology information systems; and a picture archiving and communication system. Integrated with existing patient administration system. Partnered with iSoft and GE Healthcare using their software for the new digital systems
* See backup for list of ACS acquisitions in healthcare sector
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Lexmark/Perceptive: Patient care documentation
75
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Key Customer Wins
• Lexmark‘s on-premise healthcare solutions span patient admissions to forms on-demand and scan to medical records. Includes owned software – Document Distributor for routing & Document Producer for forms creation
• Perceptive offers automated patient scheduling & registration as well as health information management for patient information
• Perceptive ImageNow platform conforms to IHE standards & integrates with a number of HIS applications
• Solutions seem to be SMB-centric & do not have SaaS option
• Perceptive has specific partners for the healthcare sector – example: IPeople, provider of HIT integration, solutions and professional services to the MEDITECH industry
• Lexmark’s solution involves print fleet rationalization and routing software (Lexmark Document Distributor) – the solution is hardware-centric
• Perceptive’s solution is based on ImageNow and emphasizes the platform’s ability to provide HIPAA privacy compliance – this is more of a software-based solution
Lexmark’s in house consultative division provides:
• Discovery programs
• Solutions Development and Integration
• Systems Engineering Resources
Perceptive also has a professional services team that provides:
• Business Consulting
• Environment Consulting
• Deployment Methodology
• RIM Consulting
• Perceptive‘s partner network also includes industry-specific partners for integration and consulting
Healthcare
• Genesis Health System
• Needed centralized forms management for patient registration; Lexmark conducted thorough evaluation and implemented a solution consisting of laser printers, Lexmark Document Producer for forms creation and Document Distributor for routing. Claims that print times for an entire patient packet dropped from 90 seconds to 30 seconds – improvement of 66%
Healthcare
• Anderson Hospital
• Implemented ImageNow to electronically capture patient discharge summaries, index them and store them in a central repository. In Medical Records, implemented ImageNow for admissions, HIPAA documentation, insurance etc – documents are scanned and linked to patient‘s MEDITECH record
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Ricoh: Patient care documentation
76
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Key Customer Wins
• Ricoh offers healthcare solutions for medical claims forms, patient documents and medical records documents
• Solutions are a combination of Ricoh hardware and partner software
• Ricoh is effectively a reseller
• IKON caters to SMB clients and is centered around document services leading to pure-play MPS contracts
• DocumentMall provides SaaS solution for forms
processing/distribution – however not specific to vertical
• Ricoh provides the hardware, and acts as a reseller of partner capture, routing, workflow and
content repository software
• IKON also acts as reseller for several document workflow software products including: Documentum, KnowledgeLake Capture & Imaging; Kofax, Nuance, OpenText etc
• Ricoh has specific business process automation partners that cater to forms processing and business
process management. Example: Appian is a strategic partner that provides a suite of components for process, rules, forms, content management, reporting, identity management, integration & collaboration
• Owned professional services capability mainly through IKON
• Fills gaps with regional SI partners that may be aligned to specific verticals
Healthcare
• Premier Purchasing Partners (healthcare purchasing network)
• Contract is focused on the conversion, management and archiving of paper to electronic documents (mainly forms); document imaging needs; and on-site & off-site management of print shop functions
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contained herein is subject to change without notice. Confidentiality label goes here
Canon: Patient care documentation
77
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Key Customer Wins
• Canon‘s on-premise healthcare solutions include capturing and storing medical records electronically; facilitating HIPAA compliance through restricted access and sending; as well as automated document distribution
• Canon also offers automated patient test analysis and reporting
• Solutions combine Canon imageRUNNER Advance scanners and partner capture and content management systems
• Partner with EMC Captiva for distributed capture and EMC Documentum ApplicationXtender for storage and retrieval
• No evidence of integration with other healthcare applications/systems
• No evidence of partnerships for business process automation
• In house consultants for assessment, implementation, deployment, training and support
• Acquired PS from Océ but mainly in commercial & production space
• No evidence of specific system integrators for healthcare sector
None available
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive benchmarking: Patient care documentation
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High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)
• Xerox‘s portfolio is the most comprehensive thanks to business intelligence capabilities from ACS
• Lexmark has the core components to provide patient care documentation solutions They have capture and route built into the hardware – however they their focus remains SMB and NA
• Ricoh and Canon can do the Capture, Route, Archive and Retrieve but cannot articulate the end to end solution well
Xerox Lexmark Ricoh Canon MES/MphasiS
Routing/ Workflow
Customization
Integration w/ EMR app
Retrieval
Professional Services
SaaS
Business Intelligence
Archiving
Thru DocumentMall but no vertical focus
Capture
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Existing MPS customer foot print
• Group Health
• Fairview Health Services
• Sutter Health
• Emblem Health Services
• Sisters of Mercy Health System
• St. Johns Mercy Medical Center
• University Hospitals
• Carillion Health
• Exempla Health
• NHS Barnet (UK)
79
* This is only won MPS customer footprint. Note there are many other opportunities in funnel that we will target – See speaker notes
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Target MPS funnel customers
• NHS North Bristol Trust, Barts and the London Hospitals, and Cambridge and Papworth Hospitals
• NY Presbyterian Hospital
• University of Pittsburgh Medical Center
• Memorial Sloan Kettering Cancer Center
• Mayo Clinic
• Intermountain Healthcare
• Davita
• Scripps Health
• Bendigo Health, Australia
• Ballarat Health, Australia
• Royal Children‘s, Australia
80
* Note that these are accounts where we have MPS opportunities and/or Distributed Workflow Solutions opportunities in the funnel
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Insurance policy issuance and
claims processing
Joe Wagle
WW FSI MDC
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Agenda
• Business Problem Definition • Target Customer Profile
• Value Proposition – Current State
– Suggested offer addresses key pain points
– Future State
• High Level Solution • Reference Architecture
• Solutions Offer/Pricing • Value Proposition Economics • Market Opportunity • Competitive Landscape and HP
Differentiation • Existing MPS Customer Footprint
82
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Policy issuance business problem definition
83
Expensive • Most Costly process in the firm
• For every $1.00 that comes in, >$.20 is spent on policy setup & servicing
Critical Customer Experience • Improve products per customer, recommendations
• Reduce switching rates (P&C) & abandonments
Manual and Paper-bound Processes • Application packets, trailing documents – link to Mobility & Web
• Complex personal lines & Commercial lines (70% vs 10% )
Private and Privileged information
Regulated transactions & documents
Staff Productivity, Satisfaction & Retention • Agents & underwriters are expensive assets & are in demand
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Claims business problem definition
84
It costs too much
• For every $1.00 collected in premiums, insurers spend $.61 claims paid out & $.15 on claims expense
• That equates to 76% of every dollar earned! (AM Best 2009)
• Document workflow solutions can reduce Claims processing costs by 25-30% (source Celent Model Insurer)
It takes too long
• The process on average could take 15 to 45 days (depending on the product line) if a settlement is reached and could take much longer if the process goes into litigation.
• Customers have seen a 10-20% reduction in claims cycle time
It is too complex • For typical consumers, the details and complexities of the claims process often prove to be frustrating and quite daunting
• Fraught with specialization, bottlenecks and exceptions
The system is prone to fraud
• Claims fraud is a major issue for the insurance industry. The Insurance Information Institute (I.I.I.) estimates that fraud accounts for $30 billion a year, or 10% of the P&C sector's incurred losses and loss adjustment expenses.
• Digital workflows can improve exposure to fraud systems by 2x
Claims Service Labor shortage • Rising average age of claims services staff
• Skilled claims employee shortage
• High turnover, high retirement
Claims Service = Customer Service
• Making a claim is the most important contact a client has with the insurance company
• Carriers with high levels of claims satisfaction retain 90% of customers
• Carriers with lowest satisfaction levels retain 78% of customers
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Target customer profile
85
―I need to scale the new policy business and provide a compelling customer experience that creates new leads. I want to use technology to grow the business faster‖
Director of Claims Services
―Increase claims service staff productivity to improve the policyholder experience. Automate paper intensive workflows to improve claims efficiency‖
Director of Policy Distribution
―I want to accelerate and automate our processes for getting policies issued. I need to increase the speed of new policy setup and policy servicing cycles‖
Media/Library Heads
―I want to increase the efficiency with which we service policies, and process changes to policies and renewals. Cost & time need to be reduced‖
Director of Policy Services
―I need to underwrite and Issue policies more quickly, more efficiently and at lower costs in time and resources. Help me underwrite smarter and more profitably.‖
Underwriting New Business Agent Operations
―I want to empower agents to spend less time with paper, and more time with prospects. Increase the speed of new policy setup.‖
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Before HP
Insurance Claims Processing workflow
AVERAGE CYCLE TIME: 8–10 DAYS Processing requires 12 steps and costs $175–225 per claim.
Customer/Agent files FNOL with carrier
Request additional claim documents
Process, tag, and enter claim document data
File checklist, FNOL and AK letter
Route claim folder to claims supervisor
Sort work by LOB, channel and profile
Claims review and Decision
Claim payment and/or notification
Claims Service Agent enters data into system
Create Claim folder
Create and send acknowledgement
(AK) letter
Print Claim Checklist
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Current state: Life policy workflow and costs
Value proposition
87
Current state costs ~$378 per policy $15 per policy courier costs
1. Times refer to labor touch time processing the policy and not cycle time 2. Source – McKinsey Life benchmarking with companies that are MetLife peers; assume 2000 hours/year and all costs fully loaded, w/o OH allocations 3. Sources – McKinsey Life benchmarking with companies that are MetLife peers and interview based triangulations 4. Fees includes courier fees ($15) that are addressed by potential future state; does not include other fees (e.g., medical fees) SOURCE: Industry interviews, McKinsey Life Benchmark survey, Team analysis
Case management Application Underwriting and issuing
Inquiries and collecting claims
Processing and fulfillment
Broker files complex claims (e.g., disability and death)
Call center/handler routes claim and docs (e.g., tests)
~50% rework 4
Claims – labor costs
25 0.2
4
9
Fulfill claim – make payment and file for future processing
Process claims – evaluate findings and make decision
55 0.7 37
23 0.5 12
10
11
~1.3 hours per policy
~$52 claim cost per policy
Courier Fees ~$15 per policy 4 IT costs ~$10/policy/year
$/hour FTE cost
FTE/policy 1 hours
$ Labor cost
$ Non-labor expense
~4.5 hours per policy
~$ 206 to issue a policy
Incoming call center or web inquiry
Handler validates identity and retrieves customer data
Back-office processing to update info or create simple change (e.g., add beneficiary)
Produce customer update, file and archive docs
6
25 0.08
2
23 0.13 3
Inforce – labor costs
7
8
23 0.13 3
~.34 hr/year (for ~15 years)
~$8/policy/year ($120 for ~15 years)
Broker/agent file application
Online application
Review applications (applicant situation, answers to questions)
n/a
0
0
2
HQ mailroom receives docs and manually on-boards into system
~80%
~20%
Collect docs and file electronically
55 0.25
14
Validate medical records
Request medical lab exams
~20%
Exceptions
1 Pricing includes review of medical, risk assessments financial review and determining the premium
3
Assemble policy docs after modification to risk and coverage
Create customer package and send back to broker or place on secure site
4
23 0.5
11
55 2.5 138
25 0.25 6.5
25 0.25 6.5
~50% by courier
~80% by courier
100%
New business – labor costs
5
135
$15 courier costs
30 1 30
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Suggested offer addresses key pain points in the current process
Value proposition
88
TO future state…
• Receive substantial volume of documents from brokers via courier services
• Delays in physical on-boarding and scanning at HQ mail room affect cycle time
• Manual doc assembly and time wasted locating misclassified digital and physical docs (e.g., in folders)
• Ask broker of customer to resend or send additional docs
• Send policies issued back to brokers using courier service
• Multiple asks to retrieve customer docs
• Face delays in preparing modifications and customer packages
• Manual filing, and archiving of supporting docs relating to service and claims
• Inability to use already collected information for cross sell
HP offer details
• Scan and digitize all incoming docs
• Conduct OCR, if necessary, on docs to extract relevant information
• Check for errors in information extraction and correct them
• Automatically remind agent and/or applicant to send required docs
• Index, tag, and file documents by customer and request
• Assemble all docs into one package when complete for review and flag the workflow when the package is ready for review and underwriting
• If any doc expires (due to life time limits)) request new docs
• Assemble docs on-demand based on insurer workflow request type
• Ensure DRM on data stored
• Destroy documents based on rules and defined regulations
• Provide authentication, security, and identification on access
• Provide real time search and retrieval to speed up customer service across all touch points
Detailed flow follows SOURCE: Industry interviews, Mortgage Bankers Association, Team analysis
FROM current state…
• Docs received through multiple channels need to be manually filed by the claims handler
• Call back agent or customer in case of missing documents
• No work to receive, scan, file, or organize documents
• Required data already in the SW solution
• Be assured of quality of incoming docs
• Review application only once when all necessary docs have been received
• Complete doc package ready for case management
• Have automated print for customer policy packet
• No need for courier deliveries back to agent/broker
• All docs automatically filed and archived
• Use all information available for customer in any customer touch
• All docs already filed, stored, and backed up with on-demand access for the handler
• Be assured of completeness of incoming docs
Offer addresses key pain points and presents opportunity to reduce processing time by 15-20%
Application Case
management Underwriting and issuing
Inquiry and claim
collection
Processing and
fulfillment
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
After HP Claims Transformation Solutions
Insurance Claims Processing workflow
CYCLE TIME REDUCED TO 5 DAYS PROCESSING COSTS REDUCED BY 45%
Customer/Agent files FNOL with carrier
Claims review and Decision
Claim payment and/or notification
SYSTEM AUTOMATICALLY
• Creates and sends acknowledgement letter
• Prints claim checklist
• Creates claim folder
• Files checklist, FNOL and AK
Digitally route claim folder to claims supervisor
Claims Service Agent enters data into system.
Digitally request and process additional claim documents
AUTOMATED WORKFLOW
• Sorts work by LOB, channel and profile
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contained herein is subject to change without notice. Confidentiality label goes here
Future state: Offer can release ~$61 per policy
90
INSURANCE POLICY PROCESSING
1. Times refer to labor touch time processing the policy and not cycle time 2. Source – McKinsey Life benchmarking with companies that are MetLife peers; assume 2000 hours/year and all costs fully loaded, w/o OH allocations 3. Sources – McKinsey Life benchmarking with companies that are MetLife peers and interview based triangulations 4. Includes IT costs ($10); courier fees ($15) are addressed by future state and taken out; does not include other fees (e.g., medical fees) SOURCE: Industry interviews, McKinsey Life Benchmark survey, Team analysis
Relevant IT costs ~$10/policy 4
Online application
Review applications (applicant situation, answers to questions)
n/a
0
2
~$ 188 per policy
~4 hours per policy
~20%
Collect docs and file electronically
Validate medical records
Request medical lab exams
1
Pricing includes review of medical, risk assessments financial review and determining the premium
3
Assemble policy docs after modification to risk and coverage
Create customer package and send back to broker or place on secure site
4
30 .9 27
23 0.3
6.9
55 2.3 127
25 0.25 6.5
25 0.25 6.5
Case management
Application Underwriting and issuing
Inquiries and collecting claims
Processing and fulfillment
100%
Incoming call center or web inquiry
New business – labor costs
Handler validates identity and retrieves customer data
Back-office processing to update info or create simple change (e.g., add beneficiary)
Produce update for customer and file and archive docs
Broker files complex claims (e.g., disability and death)
Call center/handler routes claim and docs (e.g., tests)
Process claims – evaluate findings and make decision
Fulfill claim – make payment and file for future processing
5
6
135
25 0.08
2
23 0.11 2.5
23 0.11 2.5
Inforce – labor costs
Claims – labor costs
25 0.2
4
55 0.5 28
23 0.3 7
7
8
9 10
11
Broker/agent file application
0
HQ mailroom receives docs and manually on-boards into system
~80%
14 ~20%
Exceptions 55 0.25
~1 hour per policy
~$39 claim cost per policy
~.3 hr/year (for ~15 years) ~$7/policy/year ($105 for ~15 years)
0$ courier costs
100% reduction & $15 savings
.1 hr & $3 labor reduction
.2 hr & $11 labor reduction
.2 hr & $.5 labor reduction
.2 hr & $.5 labor reduction
.2 hr & $9 labor reduction
.2 hr & $5 labor reduction
.2 hr & $4.1 labor reduction
Enabled through
document capture
Future State labor costs ~$332 per policy ($46 per policy) Eliminate $15 per policy-courier costs Unlocking per policy in new labor & courier savings ~$61 15% application cost reduction (labor + courier) 13% servicing cost reduction (labor only) 25% claims reduction (labor only)
$/hour FTE cost 2
FTE/policy 1 hours
$ Labor cost
$ Non-labor expense
Enabled through
Repository & Exstream
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contained herein is subject to change without notice. Confidentiality label goes here
High level solution – Insurance claims
91
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
High level solution – Policy issuance
92
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Reference architecture for insurance claims doc capture
93
External Print Services
Customer Back-end Systems
Manage
Dash board Business Activity
Monitoring BI Analytics
Channels
Capture Validate Collaborate Integrate
Validate customer and policy
Claim gate checks
Mail room
Scanning
Claims
CRM
Broker/Agent
KOFAX/Hyland For Image capture,
enhancement
Indexing
Claims Workflow Integration
Claims Processing
Shared services
Account, Audit, Authenticate, Authorize
Reporting tool Audit Trail HP TRIM for DMS
Operational Data store
Notify Real-time analyzed data
Agent
Real-time data
Approver
Claims System Integration
Policy Admin System Integration
Policy
Supervisor
Operational Data storage
HP SDS for SLA tracking/
Op. monitoring
Output Server
Output/ Claims
Correspondence
Notifications
Status Updates
Claim Disposition
Distributed/ Centralized Scanning
Agent Branch Office
PSP Service Bureau
Off-site CRD
Billing/ Metering
Missing document Follow-up
Document Requests End
Customer
LOB/Skill based Queuing
Admin
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contained herein is subject to change without notice. Confidentiality label goes here
Policy issuance and claims processing
Solution offer/pricing
94
Customer Profile
• Agent and new-business focused process automation
• Solution captures and processes policy applications & generates proposals and correspondence
• 200 agent offices/service/claims center locations
Devices
• (200) HP Color LaserJet CM3530 MFP
• (100) HP LaserJet M4555 MFP
• (20) HP ScanJet Enterprise 7500
• (50) HP ScanJet Enterprise 7000n
• Total $690k
Software
• HP Exstream Software Licenses ($400k)
• Omtool AccuRoute Software Licenses ($300k)
• Total $700k
Services & Support
• Exstream Implementation Support & Maintenance ($350k)
• Omtool Implementation, support & Maintenance ($300k)
• Hardware Implementation & Support ($270k)
• Total $920k
Price: $2.31M
• 30% Hardware, 30% Software, 40% Services
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contained herein is subject to change without notice. Confidentiality label goes here
MetLife account economics: Offer presents a $20 MM opportunity
Value proposition
95
378
46
332
0
100
200
300
400
Current cost per policy Value released by offer Future cost per bid policy
Key assumption: HP can capture ~50% of the value released by the offer ($59), e.g., assume $23 per policy with the rest captured by the customer
Economics for insurance provider (e.g., MetLife) per life policy ($)
1. 12.6M insurance policies 2. Spend on non-document processing activities
SOURCE: Literature search; Team analysis
364
326
38
19
19
0
100
200
300
400
Total policy processing spend Spend not addressed by offer Spend addressed by offer Value released to customer Revenue opportunity
MetLife account opportunity ($ MM)
1 2 3
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contained herein is subject to change without notice. Confidentiality label goes here
Market opportunity: Insurance industry analysis Business imperatives for insurance companies, challenging the old
Insurance Market thinking
• Lower Operating Costs – Lean new entrants have limited infrastructure and often operate at a 10-15% expense ratio
• Mandatory Expertise – Companies are leveraging technology to better segment, evaluate, and understand accounts. An ―efficient‖ market is dawning
• Tightening Claims Cost Control – Increasing competition limits premiums, so claims performance is often primary driver of profitability
• High Customer Service – Niche players are ―raising the bar‖ for the entire industry
All of these imperatives point to a simultaneous focus on increasing claims effectiveness, improving efficiency, and enhancing customer service
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive differentiation: Insurance policy and claims processing
Xerox Lexmark Ricoh Canon HP MES
Document Management
Centralized Capture
Print/Imaging Devices
Distributed Capture
Document
Composition
Mobile Printing
Industry Focus
Workflow
Integrated with Core apps
High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)
• ES/Mphasis Doc outsourcing offerings
• Kofax partners
• Exstream provides Integrations for their platform
• Partner solutions have their own connectors delivered by partners or Mphasis
• Hyland Onbase is our only software offering here
• ES/Mphasis Doc outsourcing offerings
• Beware Lexmark & Xerox here
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contained herein is subject to change without notice. Confidentiality label goes here
Xerox/ACS: Insurance industry solutions
Competitive landscape
98
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Global offices and delivery centers – strategic alliances enable global reach
• Document capture and policy processing delivered from near-shore/off-shore locations – courtesy ACS
• Through ACS, Xerox can offer completely outsource claims
• ACS can deliver and support key ECM offerings including OpenText, Documentum, FileNet
• Xerox SMARTsend is a complete document capture, conversion and routing solution
• Xerox DocuShare™ enables document management, collaboration, review and approval, and Web publishing ―DocuShare provides a complete end-to-end document management solution from a single
• trusted vendor.‖ • Partner distributed capture
offerings: – eCopy ShareScan®
Suite™ 7 – iXware 8 – Nuance ScanFlowStore™
10 – Omtool Accuroute® 12 – Open Text Fax Server,
RightFax Edition
• Xerox and ACS both have in-house professional services teams
• ACS‘s acquisition of Systech Integrators (2006) added focus on SAP consulting services – added offshore consulting capabilities
• ACS provides integration capabilities with major ERP systems
• Deep Insurance expertise at ACS Strong services connect with Claims and Policy Servicing workflows
• No Vertical focus on device and infrastructure software (fully applicable, just no industry marketing or depth)
• Health Insurance • Regence, a leading health
insurer with more than 2.5 million members in the Northwest and Intermountain Region of the U.S., partnered with Xerox to reengineer its Explanation of Benefits (EOB) documents. Transforming the EOBs improved information clarity, reduced calls to Customer Service, enhanced member loyalty and helped differentiate Regenc
• A leading U.S. insurance company redesigned its billing statements to eliminate customer confusion, build customer loyalty, and facilitate cross-selling
• e's brand
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contained herein is subject to change without notice. Confidentiality label goes here
Lexmark/Perceptive: Insurance solutions capability
Competitive landscape
99
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• On premise & SaaS solution
• Customizable workflows
• Indicates worldwide but likely to be North America and Europe centric
• Perceptive is the IP and solution arm – however NA centric. Lexmark will need to leverage presence in other geographies to scale delivery/offering
• Touting Industry-specific document capture, management and workflow solutions.
• *ImageNow provides unified environment/platform for document management workflows/processes
• Scanning America partners with Perceptive Software to provide backfile & day-forward scanning services.
In house consultative division providing:
• Discovery programs
• Solutions Development and Integration
• Systems Engineering Resources
• Perceptive industry-specific partnerships also includes consulting in some regions/countries
• Integration with ERP systems and financial applications, as well as legacy applications
• Financial Services
• Perceptive is string in mid-sized Insurers,
• While there is a reference to Insurance claims in their device solutions, there are no insurance solutions described
• Healthcare
• State Government
• Retail
• Mfg & Distribution
• Hospitality
• Telecommunications
AmFed
• Claims & Benefits Management, Underwriting, Utilization Management
• AmFed is the largest provider of insurance and insurance-related services in Mississippi
Braishfield Associates
• Accounts Payable & Finance, Billing & Collections, Claims & Benefits Management, Underwriting
• ImageNow supports Braishfield's intricate, 125-queue workflow system in the underwriting, accounting, data entry and customer service departments without disrupting existing processes
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contained herein is subject to change without notice. Confidentiality label goes here
Ricoh: Insurance solutions capability
Competitive landscape
100
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Largely Europe and NA centric
• Ricoh Globalscan is their in-house capture platform. Make up 85+% of their capture solution sales
• RiSVP Capture Software partners include: Nuance eCopy, Nsi Autostore & Omtool Accuroute, Kofax
• Doc Mgmt services partners include: EMC Captiva & Documentum;; Interwoven, IBM, Open Text, and Oracle (Stellent),
• Leverage IBM relationship as access point for enterprise accounts
• Owned professional services capability mainly through IKON
• No mention of Claims or policy Admin system integration
• Fills gaps with regional SI partners that may be aligned to specific verticals
• Leverages SI partners to integrate automated invoice process with ERP
• Lack of Insurance specific solutions and services
• Ricoh increases insurance company‘s printing efficiency
• With an existing host print vendor contract set to expire, an industry leading insurance company was in search of a more affordable printing solution
• ―Ricoh’s more comprehensive approach to imaging and output services is expected to save our company over $2 million per year.‖
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contained herein is subject to change without notice. Confidentiality label goes here
Canon: Insurance solutions capability
Competitive landscape
101
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Mainly in Europe and North America
• On premise only
• Owns imageWARE software – includes document manager, web document server, scan manager, workflow composer
• Nuance eCopy still a major capture partner
• Several software partnerships for OCR, capture, archival, retrieval etc
• For invoice processing main partner is IRIS – provides an automated document & information capture solution in Europe. Canon also bought a 17% stake in the company
• In house consultants for assessment, implementation, deployment, training and support
• Acquired PS from Océ but mainly in commercial & production space
• No mention of Claims or policy Admin system integration
• Generalized FSI brochures, but no Insurance -specific solutions and services
• No Insurance specific wins identified
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contained herein is subject to change without notice. Confidentiality label goes here
Existing customer footprint
102
Top insurance carriers by revenue MPS Trans Sols
Allianz ($142B) X X X
Assicurazioni Generali ($103B) X X
AIG ($96B) X X
AXA ($81B) X X X
Munich Re ($68B) X X X
Nippon Life ($66B) X
Aegon ($62B) X X X
State Farm ($61B) X X
China Life ($54B) X
Metlife ($51B) X X
CNP Assurances ($38B) X X
Sumitomo Life ($36B) X
Aviva ($35B) X X
Tokio Marine ($35B) X
Zurich ($32B) X X X
Manulife ($31B) X X
New York Life ($31B) X
Cathay Life ($30B) X
Allstate ($30B) X X
Prudential Financial ($30B) X X X
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Invoice processing
Marie-Amélie Masnou
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contained herein is subject to change without notice. Confidentiality label goes here
Agenda
104
• Business Problem Definition
• Target Customer Profile
• Value Proposition
– Current State
– Suggested offer addresses key pain points
– Future State
• High Level Solution
• Reference Architecture
• Solutions Offer/Pricing
• Value Proposition Economics
• Market Opportunity
• Competitive Landscape and HP Differentiation
• Existing MPS Customer Footprint
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Source: Aberdeen Research – Cloud Invoice Management – January 2012 – Scott Pezza
Business Problem and Industry Trends
• Dominant pressures facing companies are the need to streamline processes to
improve efficiency and the need to rein in overall invoice processing costs.
• 76% of the large enterprises researched by Aberdeen Group in a report from
January 2012 intend to automate Accounts Payable processes.
• Large enterprises report 14 days average invoice processing cycle time (from receipt
to settlement) and an average cost of $12.91.
• Large enterprises see the following improvement areas:
- Supplier adoption of e-invoicing
- Automation of the approval process
- Automated, paper-less communications
- Migration away from checks to electronic payments
- Collaboration between AP and procurement
• Still according to the Aberdeen Group, Accounts Payable (A/P) departments of
Manufacturing enterprises display significantly higher invoice processing costs when
compared to CPG, Retail, Automobile, Finance, and High-Tech enterprise.
105
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contained herein is subject to change without notice. Confidentiality label goes here
Target customer profile
106
• Visibility to cash flow
• DSO
• Audits & Reports
• Control over invoicing process and costs
CFO pain points
• Invoice verification
• Invoice reconciliation
• Late payment fees
• Errors
• Rules and
approval routines
• Payment authorization
• Exception management
A/P Manager pain points
• Large Enterprises and SMB organizations with more than 100,000 invoices annually – ―Though technology adoption has been limited to larger companies until recently, we are evidencing this trend trickling downward to small and medium sized businesses with the evolution of hosted and Software-as-a-Service (SaaS) models, which have lowered the upfront cost of implementing AP automation solutions and reduced the hassle of maintaining them significantly.‖ Source: © 2010 PayStream Advisors, Inc
• Down time
• Help desk calls
• Maintenance
IT pain points
LOB pain points
• Suppliers and vendors management
• Reports
• Dispute and issue management
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Before HP
Accounts Payable for Manufacturing Workflow
ON AVERAGE, THE MANUAL PROCESS TAKES 26 DAYS 9 copies, 6 people and costs $25 to pay an invoice
COST CREATOR
• Invoice Verification (buyer/ local office)
AUTHORIZER/ACCOUNTING DEPT.
• Invoice validated into back end finance system
• Post & release payment
• File & store
INVOICES RECEIVED FROM VENDORS AND SUPPLIERS
• 80% in paper-format
• Received in various formats (structured /unstructured) depending on country of origin and supplier
MAILROOM
• Paper Invoice received, sorted and stamped with date of receipt
• Initial routing and processing (e.g., copies)
• Invoice sent to Accounting Dept.
ACCOUNTING DEPT.
• Manual data entry of key accounting information (e.g. PO number, amount), and processing (e.g., copies)
• Invoice Review & Approval – Reject—back to vendors – Accept—distribution to original
buyer office for verification
Invoices received
Routing to Central Office
Invoice Approval
(Local Office)
Post & Release Invoice
Invoices received/sorted
File and Store
Data entry, copying,
processing
Forwarded to Accounting
Invoice Review & Approval
Invoice Verification
(Local Office)
Invoice Accepted
ACCEPTED REJECTED INVOICE SENT BACK TO SUBMITTER
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contained herein is subject to change without notice. Confidentiality label goes here
Areas to go after
3.0-4.01
Current state: Invoice processing flow and costs
108
Source: Expert interviews, GCI data Buyer activities Seller activities $ $ Spend per step
1 This cost can be higher for an invoice in investigation/research for incomplete/incorrect invoices (<5% of occasions)
Purchase Order (PO) Matching
Exceptions/ Research
Invoice Receipt Payment Approval/ Origination
Procurement Order Processing
Accounts Receivable
Accounts Payable Dept. of Buyer
Routing & Switching
Routing & Switching
Routing & Switching
Generate and transmit POs to vendors
Transmit/ deliver PO to vendor
Receive P.O. and match with customer file
Log P.O. into AR system of record
Transmit/ deliver Invoice to buyer
Receive invoices from delivery channel (USPS, courier, email, etc.)
Collate in-voices with PO and goods received documenta-tion
Reconcile invoice and PO
Review and approve reconciled invoices for payment
Transmit invoice and payment to vendor
Input order details for production
Generate invoice/ credit note
Sort invoices by order of priority/de-partment for processing
Archive P.O. copies with AP for processing
Update recurring invoices
Log invoice data into AP system of record
Input new customer info
Investigate invoice ex-ceptions with vendor/pro-curement
Research missing PO‘s
Maintain PO/ invoice archive
Settle payments
0.30-0.50 0.40-0.60 1.0-1.5 1.0-1.50 1.2-1.7
Current state invoice costs: ▪ $6-8 per invoice to
buyer ▪ $1.5 to $2 to seller
Order placement Order receiving and processing Invoice receiving and processing Payment
OFFER 4: INVOICE PROCESSING
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contained herein is subject to change without notice. Confidentiality label goes here
Suggested offer addresses key pain points in the current process
109
OFFER 4: INVOICE PROCESSING
SOURCE: Industry interviews, McKinsey GCI database, Forrester research
TO future state…
• Generation process needs manual input
• Costs related to preparation and mailing of documents
• Archiving POs and managing data is not streamlined, making order tracking time consuming
• Paper invoices depend on goods delivery receipts collection, generating manual work
• Paper invoices need to be matched to customer records manually
• Reconcilement documents do not directly plug into single unique ERP system, generating manual work
• Paper based invoices generating manual work
• Highly manual, often leading to doubts on accuracy of data
• High costs for processing and matching invoices
• Queries may be run in one or more ERP systems
• Tracking of information is often based on in-house knowledge that is not retained
HP offer details
• Receive and scan all paper invoices
• Intelligently OCR and capture important field data from all paper invoices; intelligent capture of all electronically received invoices
• Interface with client systems to extract PO information and smart matching to invoice content to eliminate manual ‗triple‘ matching (3 way matching)
• Update correct invoices as ‗processed for payment‘ within customer workflow
• Flagg erroneous invoices for exception handing in customers work flow system
FROM current state…
• Multiple/duplicate invoicing create duplicate payments
• Delays lead to late/inaccurate payments and poor compliance with negotiated payment terms
• Missing early payment discounts
Order placement Order receiving and processing
Invoice receiving
and processing Payments
• Orders transmitted via secure electronic medium with receipt notification
• Automatic electronic backup of PO with metadata tagging
• Received orders automatically matched to customer record
• Data integration with automatic 3 way matching to eliminate need for manual reconciliation
• Intelligent translation engine that recognizes all form types to fully automate invoice capture
• Seamless back-end integration to ordering systems to eliminate ‗matching‘
• Workflow status updates and notifies authority upon invoice processing completion
• Single payment order issued per invoice upon authorization
• On time payment ensuring no late fees and securing early payment discounts
Initial scope of solution
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
After HP Automated Invoice Processing Solution
Accounts Payable for Manufacturing Workflow
THE AUTOMATED PROCESS CAN REDUCE PAYMENT CYCLES TO 2–4 DAYS AND LOWER PROCESSING COSTS BY 40–60%
DOCUMENT CAPTURE Invoice captured at source
Invoices received from vendors and suppliers
INFORMATION EXTRACTION Information automatically extracted, validated and
routed into system workflow during capture
HP CAPTURE SOLUTIONS
• Automatic data extraction and interpretation of key accounting meta data (e.g. invoice number, PO, amount…)
• Validation of accounting information
• Transfer of accounting data to back-end system
BACK-END SYSTEM INTEGRATION Automated accounts payable process
and customer communications customization
• Invoice verification and posting
• Consolidation of information
• Approval workflow and payment
• Automated posting
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Future state: Invoice processing flow and costs
111
OFFER 4: INVOICE PROCESSING
Purchase Order (PO) Matching
Exceptions/ Research
Invoice Receipt Payment Approval/ Origination
Procurement Order Processing Accounts Receivable
Accounts Payable Dept. of Buyer
Routing & Switching
Routing & Switching
Routing & Switching
Generate and transmit POs to vendors
Transmit/ deliver PO to vendor
Receive P.O. and match with customer file
Log P.O. into AR system of record
Transmit/ deliver Invoice to buyer
Receive invoices from delivery channel (USPS, courier, email, etc.)
Develop electronic match between PO and e-copy of invoice
Electronically reconcile invoice and PO
Review and approve reconciled invoices for payment
Transmit invoice and payment to vendor
Input order details for production
Generate invoice/ credit note
Assign priority through rules-based processing
Archive P.O. copies with AP for processing
Update recurring invoices
Scan and OCR invoice into repository
Input new customer info
Investigate invoice ex-ceptions with vendor/pro-curement, research PO
Update status in workflow
Maintain PO/ invoice e-archive
Settle payments
0.30-0.50 0.40-0.60 1.0-1.5 21 1.2-1.7
▪ Future state: Buyer spends ~$6 on invoice
▪ $2 savings in labor corresponding to 25% or higher savings
Order placement Order receiving and processing Invoice receiving and processing Payment
Buyer activities Seller activities $ $ Spend per step Steps touched by offer
• OCR reduces manual key entry and avoid large teams workload dedicated to information entry
• Scan + OCR reduces/removes costs of sending papers
ERP workflow integration Automatic with electronic match reduces error and speed up process, reducing processing time
ERP workflow integration with electronic reconciliation speeds up invoice processing
WHY is there a saving? • Eliminate the cost of sending papers back and forth to
central shared services • Less people involved, less labor, less errors, less rework • Speed up process means better cash flow management,
early payment discount
1 This cost can be higher for an invoice in investigation/research for incomplete/incorrect invoices (<5% of occasions) SOURCE: Expert interviews, GCI data
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
High level solution
112
HP/Partner Solutions: • Capture invoices quickly at remote locations – adding value to the MFPs already in place • Start the A/P workflow immediately from the receiving point saving mailing costs and time • Improve the workflow with quick reconciliation of invoices and POs in the ERP system limiting
errors and reducing reprocessing • Seamlessly integrate with the existing ERP/SAP workflows –speed up the accounting process • Manage electronic documents associated them with ERP/SAP systems
DOCUMENT CAPTURE Invoice captured at source
INFORMATION EXTRACTION Invoice captured at source
BACK-END SYSTEM INTEGRATION Customer developments and customization, and automated accounts payable process
•MFP Scanning
•HP Scanners •Automatic data extraction and interpretation of key accounting meta data (e.g. invoice number, PO, amount…)
•Validation of accounting information
•Transfer of accounting data to back-end system
• Invoice verification and posting
•Consolidation of information
•Approval workflow and payment
•Automated posting
DIGITIZE
EXTRACT META DATA
VALIDATE ACCOUNTING INFORMATION
ROUTING AND
WORKFLOW
HP CAPTURE SOLUTIONS
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Reference architecture for invoice processing
113
Customer Back-end Systems
Manage
Dash board Business Activity
Monitoring BI Analytics
Channels Capture Validate Collaborate Integrate
Distributed HP MFP , centralized HP
scanners for Scanning
Invoice format and
amounts/content verification
Backend Validation (P.O.
etc)
Data entry correction and
validation
MFP/Scanner
Suppliers office EDI
Image capture, cleanup,
enhancement, routing
Data extraction, indexing
Workflow Management,
alerts, exceptions handling
Queue management
Services
Authenticate, Authorize Reporting tool Audit Trail
Operational Data store
Notify Real-time analyzed data
A/P
Real-time data
Approver
Admin/IT
Real-time Integration
Batch Integration
Approvals, suppliers portal
CFO
Operational Data storage
HP SDS for SLA tracking/Op. monitoring
Mailroom scanning
HP Trim for DMS
Payments authorization
ERP
Legacy
Others
CRM
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Solution offer/pricing – Solution on premise
114
Customer Profile • Large enterprise very distributed processing 1 million invoices per year
• Company distributed over 200 locations • Assuming 1 MFP and 1 scanner per location to scan incoming invoices
• Authentication on every MFP with card readers
Hardware • (200) HP LaserJet M4555 MFP
• (200) HP ScanJet Enterprise 7000n • (200) HP Access Control card readers on MFP
• Total $1,3k
Software • HP Access Control licenses for HP MFP and ScanJet ($88k)
• Kofax KFS, Capture and KTM Licenses for 1M invoices ($294k) • ReadSoft Cockpit and WebCycle for 1M invoices ($508k)
• Total Licenses $890k
Services & Support • Level 2 & Level 3 software support ($180k)
• Software Assessment, Implementation & Integration($260k) • Hardware Implementation & Support ($150k)
• Total $590k
Price: $2.8M • 47% Hardware, 32% Software, 21% Services
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Economics: Offer presents a $1M revenue opportunity for HP at typical customer processing 1M invoices annually
Value proposition
115
8
2
6
0
5
10
Current cost per invoice Value released Future cost per invoice
8 6
2 1 1 0
2 4 6 8
10
Total current invoice
processing spend
Spend not addressed
by offer
Spend addressed by
offer
Value released to
customer
Revenue oppurtunity
Calculations are based on McKinsey estimated invoice costs and spend through the different steps of the total process. Spend not addressed by offer includes order placement and payment operations.
OFFER 4: INVOICE PROCESSING
Economics for Buyer per invoice ($)
Example Invoicing spend and HP opportunity ($M) with 1M Invoices
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contained herein is subject to change without notice. Confidentiality label goes here
Customer Benefits – Market Opportunity
• Improve A/P process efficiency – organizations are seeking better cash to cash cycle time, better control, audit trails and SOX compliance
• Improve visibility to cash flow and enterprise spending
• Save money – Remove dependencies on the paper and reduce the overall invoice processing costs
• Make money – Gain early payment 2 to 3% discounts
• Lower Operating Costs – Connect in an effective way the financial business functions to the enterprise back bone IT platforms and investments done in ERP
All of these imperatives point to a simultaneous focus on automating accounts payable for better efficiency, high cost savings and better control
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contained herein is subject to change without notice. Confidentiality label goes here
Xerox/ACS: Invoice processing capabilities
Competitive landscape
117
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Global offices and delivery centers – strategic alliances enable global reach
• A/P services delivered from near-shore/off-shore locations – courtesy ACS
• Through ACS, Xerox can offer completely outsourced invoice processing – 98% of process owned by ACS, 2% owned by client
• Looking to introduce software-enabled BPO/DPO offerings – unsure of progress with regard to invoice processing
• DocuShare CPX software application acts as enabler – integrated with Kofax invoice capture & APFlo – automated A/P workflow solution from CDIT Inc.
• May also choose to use other capture/workflow products such as, Top Image Systems‘ eFlow Invoice Reader
• Ability to turn invoices into advertising vehicles - courtesy PlanetPress Suite from ObjectifLune. BI engine?
• Can detect discrepancies & put in ―failure queues‖ – powered by ACS Workflow, owned solution
• Xerox and ACS both have in-house professional services teams
• ACS‘s acquisition of Systech Integrators (2006) added focus on SAP consulting services – added offshore consulting capabilities
• ACS provides integration capabilities with major ERP systems
• Offered across verticals, including:
– Healthcare
– Insurance
– Manufacturing & Distribution
– Retail
– Telecom
– Transportation
– Banking
• NelsonHall estimates that ACS processes 40mn invoices per year in education and healthcare insurance sectors
Transportation First Group of America
Scanning, data capture, image processing & storage of accounts payable invoices; claim to process about 19,000 invoices per month
Retail Office Depot
Expanded contract in 2006 to cover 86% of Office Depot‘s receivables portfolio; claims to have reduced invoice processing from several weeks to hours
Manufacturing Western Forest Products
Scanning, capture, image processing & storage of invoices; combines DocuShare CPX, AP-Flo from CDIT and Kofax; estimate cost savings of $20,000 per month
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive landscape Lexmark/Perceptive: Invoice processing capabilities
118
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• On premise & SaaS solution
• Customizable workflows
• Indicates worldwide but likely to be North America and Europe centric
• Perceptive is the IP and solution arm – however NA centric. Lexmark will need to leverage presence in other geographies to scale delivery/offering
• Invoice Processing solution combines Lexmark hardware & Perceptive ImageNow platform
• Perceptive has industry-specific partnerships. Ex: Brainware for intelligent data capture solutions in accounting & financials industry
• *ImageNow provides unified environment/platform for document management workflows/processes
In house consultative
division providing:
• Discovery programs
• Solutions Development and Integration
• Systems Engineering
• Resources
• Perceptive industry-specific partnerships also includes consulting in some regions/countries. Ex: Optim2 in ANZ for financial-related back office functions
• Integration with ERP systems and financial applications, as well as legacy applications
• Financial Services
• Healthcare
• State Government
• Retail
• Mfg & Distribution
• Hospitality
• Energy & Utilities (Lexmark hardware & doc distributor software integrated with FileNet capture; hardware also has embedded Kofax DES client and integrated with Kofax Doc Exchange Server)
• Telecommunications
Mfg. & Distribution: • 20:20 Mobile Group
Accounts Payable; Integrated with JD Edwards OneWorld app.
• Ben E. Keith Company
Accounts Payable; Integrated with PeopleSoft
Healthcare: • Cedars – Sinai
Invoice processing; Integrated with PeopleSoft
• Mercy Medical Center
Accounts Payable; Integrated with Meditech & Mysis Vision apps
Energy & Utilities: • Deep Marine Technology
Accounts Payable; Integrated with Microsoft Dynamics SL
• Aqua America, Inc.
Accounts Payable; Integration with Lawson Financials
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive landscape Ricoh: Invoice processing capabilities
119
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Largely Europe and NA centric
• On premise – accounts payable solution
• Fully outsourced – invoice production offered mainly in Europe
• SaaS A/P – through DocumentMall using Karora App Connector
• i-invoicing solution – takes manual process and over 3 years helps customer migrate to electronic invoicing. Not automation (?)
• Ricoh provides the hardware, and combines with partner capture, routing & workflow software to deliver on premise invoice processing automation
• Accounts Payable partners include: EMC Captiva & Documentum; Kofax; Interwoven, IBM, Open Text, and Oracle (Stellent), ReadSoft, Basware (Ricoh acts as reseller)
• Leverage IBM relationship as access point for enterprise accounts
• Owned professional services capability mainly through IKON
• Fills gaps with regional SI partners that may be aligned to specific verticals
• Leverages SI partners to integrate automated invoice process with ERP
• Publicly announced invoice processing/i-invoicing wins have been across manufacturing and postal/parcel services
• Likely that invoice processing offered across verticals however this is not explicit in Ricoh‘s industry solutions brochures
Manufacturing • Mammoet
Scanning, data capture, routing & storage of accounts payable invoices; Ricoh combined with ReadSoft and CTAC (Dutch IT service provider – customization of invoices to integrate with SAP ERP)
Manufacturing • Mammoet
i-invoicing solution; production of invoices & statements at Ricoh‘s external print facilities; claims to have cut time-to-invoice by 4 days and cut production costs by 20%
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive landscape Canon: Invoice processing capabilities
120
Delivery Capability Software
Partnerships/Capability Professional Services
Capability Vertical Focus Key Customer Wins
• Mainly in Europe and North America
• On premise only
• Owns imageWARE software – includes document manager, web document server, scan manager, workflow composer
• No specific/articulated solution with regard to automated invoice processing although it is mentioned as a capability
• Several software partnerships for OCR, capture, archival, retrieval etc
• For invoice processing main partner is IRIS – provides an automated document & information capture solution in Europe. Canon also bought a 17% stake in the company
• In house consultants for assessment, implementation, deployment, training and support
• Acquired PS from Océ but mainly in commercial & production space
• No mention of ERP integration
• No specific verticals targeted for invoice processing
• Success stories show that solution is available for a variety of verticals such as, real estate/property management
Real Estate • Customer name: NA
Worked with Canon Professional Services to implement solution; customer installed imageWare scan manaer, imageWare document manager and Canon hardware
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contained herein is subject to change without notice. Confidentiality label goes here
Competitive differentiation: Invoice processing capabilities
121
Xerox Lexmark Ricoh Canon MES/Partners
Routing/
Workflow
Customization
Integration w/ ERP
Professional Services
SaaS
Business Intelligence
Archiving
Retrieval
Capture
High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)
• Gap in competitor offerings around SaaS and business intelligence
• Emphasis around these capabilities will create differentiation for MES offerings
• Competitors are equipped with basic component of invoice processing
• ―Vanilla‖ offering
• Many overlapping partners
• MES will not be able to differentiate around these parameters/facets
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contained herein is subject to change without notice. Confidentiality label goes here
Existing customer footprint Top Discrete Manufacturing Companies based on their $ sales MPS Trans Solutions
General Electric X
Siemens X
Hitachi X
BASF X
THYSSEN KRUPP AG X X
TATA Group X
Mitsubishi X
Caterpillar X
Philips X
APPLE X
INTEL X
ABB X
Anglo American Corp.
3M X X
JABIL Circuit X
Top Automotive Companies based on their $ sales MPS Trans Solutions
Toyota Motor Corporation X X
Volkswagen A.G.
General Motors X
Ford Motor company X
Daimler AG X X
Honda Motor Co., Ltd. X X X
Nissan Motor Co., Ltd. X
FIAT X
PSA Peugeot Citroën S.A.
BMW
Robert Bosch X
Hyundai Motor
Renault S.A. X X
Chrysler Group
Bridgestone Corporation X
SAIC (Shanghai Auto Industry Corp)
Magna International Inc.
Goodyear
Delphi Automotive, LLP
Porsche Automobile Holding SE
Other companies to consider MPS Trans Solutions
Nestle X X X
Lufthansa
Wal-Mart
Viacom
Alcatel
NATO
UGAP
Adventist Health
Sara Lee
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contained herein is subject to change without notice. Confidentiality label goes here
Success Story: PETROBRAS, Brazil – Oil&Gas industry
Challenge
• Customer was looking at a way to make their invoice processing more efficient
• High number of invoices processed manually on paper throughout the country
• MPS contract renewal under way
HP Solution
• HP Invoice Processing Automation Solution based on HP MFPs and ReadSoft Software with customization
• Running on190 HP MFPs, 125 locations, 95,000 invoices per month, 1M+ invoices per year
Results
• Efficient distributed invoices scanning with HP MFPs under MPS
• Automated and efficient document workflow
• Integration within MPS contract
Total TCV:
Software $301K – Capture, Extract & Route HP MPS $14.6M
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contained herein is subject to change without notice. Confidentiality label goes here
New account opening accelerator
Chuck Gowin
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contained herein is subject to change without notice. Confidentiality label goes here
Agenda
• FSI Business Drivers
• Business Problem Definition
• Target Customer Profile
• Current State Paper Issues
• High Level Solution
• Solution Architecture
• Account Opening Accelerator Benefits
• Business Case Development
• Reference
• MphasiS Capabilities
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contained herein is subject to change without notice. Confidentiality label goes here
Banking industry — Business drivers
Actively manage compliance requirements
Differentiate customer experience
Growth in competitive banking market
• Measure Risk more effectively
• Improved data and document security with process digitization, audit trail authentication, encryption, archival
• Adapt to global ―sea-change‖ in compliance requirements
• Meet demands for transparency
• Higher customer expectations for service levels, mobility, and privacy
• Drive personalized content through multiple and flexible communications channels
• Adapt to shifts in customer demographic
• New approaches to growth markets
• Innovate the experience in branch, web & mobile channels
• Product innovation- reaction to technology and customer expectations
• Regional and market focus for profitability
• Create and capture demand with innovative products
Key facts • Compliance changes are top priority for survival (ex. Dodd Frank & Basel III) • Economy slowly ramping up with mixed indicators for recovery • Innovation in product distribution and customer service
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contained herein is subject to change without notice. Confidentiality label goes here
Bank account opening: A challenge
• Cost per Cycle: $65 USD
• 25% Abandonment Rate
• Cost per Abandonment: $30 (excluding lost rev)
• WW Average Account Churn 15%
• 70% Manual Data Entry
• Manual sorting and routing by courier to Operations Centers
• High Error and Rework Rates
• Lost and Misrouted Items
• Security and Compliance problems
• Sets the tone for every customer relationship (affects cross sales)
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contained herein is subject to change without notice. Confidentiality label goes here
Target customer profile Chief Retail Banking
pain points
• Must grow customer base • High Staff Turnover • Regulatory Compliance • Control
• Help desk calls • Maintenance
CIO/IT
pain points • Large Enterprises and SMB organizations with more
than 50 branches:
―The time it takes to enroll new and multiple accounts at financial institutions (FIs) is a barrier to effective and efficient cross-selling — and ultimately a key inhibitor of organic growth.‖
Forrester Research
• Current On-boarding costs • Errors and re-work • Fraud • Compliance w/KYC & AML • Rules and approval routines • Payment authorization • Exception management
Branch Operations Officer
pain points
Retail Marketing Officer
pain points
• Abandonment rates • Customer service scores & VOC • Time-to-market for new products • Channel/product management
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contained herein is subject to change without notice. Confidentiality label goes here
Current state paper issues
Items lost or misrouted
Latency = fraud
Poor process visibility
Expensive courier contracts
Shadow copies
Customer service impact
Difficult to secure information
Compliance risks
Paperwork burden on staff
Limited process control/flexibility
Slow, expensive exception processing
Information moves (slowly) on paper
Current state paper issues
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contained herein is subject to change without notice. Confidentiality label goes here
Account opening accelerator solution
No manual sorting and routing
Accelerate fraud detection
Improved visibility
Lower process cost
Improved Information
Security
Improved customer experience
Green
Improved audit & compliance
controls
Reduced paperwork burden
Process control/flexibility
Improved exception processing
Items sent to back office in real time
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contained herein is subject to change without notice. Confidentiality label goes here
HP account opening accelerator
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contained herein is subject to change without notice. Confidentiality label goes here
HP account opening accelerator
h h
Secure MICR Check Printing
Authentication, Access, and Audit Control
Integrated Form Capture and Routing
Bar Code Print Support
HP MFP, Printers & Scanners
HP Total Solution Delivery and Support
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Benefits
Challenges HP Account Opening Accelerator Benefits
Abandonment Rates Faster account opening – Use Pull Printing instead of getting up to retrieve each job. Use MICR on demand starter checks instead of pre-printed in vault storage and manual audit log
Staff Paper Work Transactional, one-touch imaging to reduce end-of-day work.
Customer Service Detect and correct many exceptions before the customer leaves the branch (e.g. missing fields and signatures), prevent rescheduling and rework. Give customers starter checks that merchants will accept. Complete back office account setup faster, and make master signatures available quickly
Customer Privacy Capture sensitive documents and get rid of paper; end shadow copy; mask sensitive fields
Lost/Misrouted Items Automate document recognition and routing with bar codes
Compliance Create a consistent, visible, auditable, and secure process. Capture and route images automatically with authentication and audit controls.
Productivity Move non-customer-facing work to the back office faster. Load balance between operations centers, outsource image-enabled workflows.
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
New account opening accelerator example business case
• Branch document handling, processing and transportation cost reduction
– 6 Month ROI, and savings of $30M/year per 1000 branches
• Courier service cost reduction ($12M per 1000 branches)
• Faster business cycles (7 days to 3)
• Increased branch staff productivity: more face-time, less processing time (up to 40%)
• Faster deposits, faster revenue
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
• The North American FSI firm wanted to accelerate and streamline the account opening process for its customers
• It wanted to automate manual paperwork and reduce the amount of time and cost of using couriers to transfer documents back and forth from branches
• Improve customer experience and ensure compliance with FSI legislation
• Utilised HP Account Opening Accelerator
• Re-design of documents to improve machine recognition and readability
• Integrate HP MFP with account opening systems to eliminate courier to back office
• Real time transaction to process documents
• Faster, cheaper process with better customer experience. Transactions carried out in minutes rather than days
• Enhanced compliance and information security
• Improved service to Line of Business customers
• Superior, remotely manageable print infrastructure
• Reduced carbon footprint due to reduced use of couriers
Account opening accelerator for banking
Top 10 North American FSI firm
Top 10 North American FSI organisation providing banking, wealth management services, insurance, corporate, investment banking and transaction processing services on a global basis. Serving more than 15 million personal and business customers throughout North America and Canada and 39 other countries.
Business needs Business benefits HP solution
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contained herein is subject to change without notice. Confidentiality label goes here
So how can document workflow
integration services help close this
business?
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contained herein is subject to change without notice. Confidentiality label goes here
MphasiS DWIS capability snapshot D
W I S
Skills • 50 + resources having expertise in Document
Capture, Manage , Workflow & Document Output products
• 150 + Integration Experts with 600 + person years of Integration experience across the company
• 150+ Domain experts (Banking, Capital markets, Insurance, Healthcare, Retail)
• A large pool of Technical resources (Java , .Net , SOA , MQ , Biztalk , Tibco)
• 70 + Architecture & process resources (Enterprise Architects , Information Architects across the company)
Differentiators • Reference architecture (for Invoice Processing
& Account Opening)
• IPG Lab – Solution Accelerators and Frameworks (Mframe ,etc)
• Customer driven POC led Solutioning (Invoice & Claims processing, Marketing Material)
• Cloud based Industry Solutions
Fact Sheet • 10+ yrs exp with leading Document &
Records Management products
• Successfully executed 70+ Document & Content management projects
• Multiple Models – Managed Services, Professional Services, Shared Services
• Competency in HP partner products like – Kofax , Extream , Onbase
• 15000+ consultants handling 290+ million transactions annually
• CRM, Transaction Processing and Shared services (F&A & HRO)
BPO
• 14000 + Resources across various domains , technologies & practices A
pps • 70+ Global Customers,
• 6500+ Experience & Certified team, 24x7 Ops
Infr
a
Indust
ries
Products
ECM EAI BIDW BPM Cloud Foundation Practices
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
MphasiS BCM capability snapshot
• 8,000+ resources focused on Financial Services across applications, BPO and ITO
• Retail Banking, Investment Banking & Brokerage, Credit Cards & Loans, Accounting & Taxation
Fact Sheet
• Strong FSI Business Analysts group (FSI-BAG) for domain expertise
• Dedicated Financial Services Competency Center (FSCC) for domain focus training & certifications
• Industry Solutions Group (ISG) for building domain focused solution in for Banking & Capital Market space
• Opportunity assessment methodology and ISO certified transition methodology successfully tested on over 300 processes
• BASE 24 Support Capabilities & TAL Programming
Skills
• Record and Content Management System Implementation for a Large Investment Bank in Middle East
• Workflow Automation and Document Management System for a leading Japanese bank The new system gave client the ability to configure Document Transport to decouple Paper from Process and made Enterprise wide Availability of Customer Dossier interfacing with different applications
Case Studies
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Mphasis horizontal capability snapshot
Cloud
• 800+ Person yrs Experience
• 20+ Global Customers
• Expertise in Virtualization
BPM
• 250+ Person yrs Exp with Expertise in Pega , PRPC, ALBPM (Fuego) & IBM WPS
BIDW
• 470+ BI & Analytics
• Solutions in Retail and claims analytics
• Expertise in Informatics, Cognos & Business Objects
ECM
• 10+ yrs Exp
• Strong architectural & domain skills
• Integration with MS Office
• Meta data, content & user migration
EAI
• 850+ Person yrs Exp
• Global pool of over 175+ resources
• Expertise in TIBCO, web methods & websphere
Portal
• 510+ experience resources across various products
• Successfully executed 70+ Portal & ECM projects
• Projects in the areas of Portals, CMS, eCommerce, Search, Collaboration, AJAX, Click stream, Open Source Portals/CMS and Web 2.0 technologies
Oracle
• 200+ Oracle Consultants with rich Industry Experience, avg experience : 5+ yrs
• Successfully executed 60+ Oracle/PeopleSoft/JDE projects and providing ongoing support across 30+ clients globally
• Strong focus on Applications Management, PeopleSoft Factory, Upgrades
SAP
• 500+ experienced SAP Professionals
• 40+ global customers supported out of India
• Enhanced capabilities in SAP Netweaver components such as XI/EP & MDM
• 40% resource base are SAP certified consultants,35% resources in PMP, ITIL
• 15000+ consultants handling 290+ million transactions annually
• CRM, Transaction Processing and Shared services (F&A & HRO)
BPO
• 14000 + Resources across various domains , technologies & practices
• Financial Services : 4200 + FTE, Manufacturing : 2562 FTE, Healthcare : 1100+ FTE. Consumer & Retail : 534 FTE, Transportation : 910 FTE
Apps
• 6500+ Experience & Certified team
• 70+ Global Customers,
• Supporting 28000+ Servers, 253 GB storage, 7 mn contacts annually, 72 mil measurements daily
• ITIL v3, BS15000, BS7799, Six Sigma, SAS70, HIPAA
Infr
a
Towers
Practices
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Engagement summary
Client onboarding shared service
Regions: NA (US)/EMEA (UK)
Line of Business: Capital Markets
Tools & Technologies • C#, .NET 2.0: Development
and framework • SQL Server 2005/Oracle 9i • Tibco iProcess (workflow
management)
Client Investment bank LOB of a universal bank headquartered in Frankfurt
Highlights
Services Offered • Business requirements • Technical architecture/design • Information architecture • Development • Testing/UAT • Production Support
Engagement Details • Model: Onsite- Offshore • Peak Team Size: 20 • Duration: Ongoing (started
March 2007) • Location: New York and
London/Bangalore
Support for business growth • Scalable system that can support global business growth Substantial improvement in the efficiency of the client onboarding process • Replacement of the existing inefficient manual process with an automated process supported by technology • Substantial reduction in time spent in onboarding clients, speeding up revenue streams from new clients • Integrated workflow across teams working globally to smooth task handovers and coordination across teams • Incorporation of a pricing calculator to support client negotiations, improving efficiency and reducing manual
data re-entry Improved visibility for clients and business management • Easy availability of MIS reports from different perspectives: sales; on boarding times; projected revenues;
bottlenecks
Key Business Benefits Delivered
Design and build a client onboarding application as a shared service for clients across asset classes and geographies
Statement of Purpose
Internal (>200 users): • Sales team • New Business committee • Compliance managers • Risk managers • Legal team • Client onboarding team • Collateral management team • Business management
Client Audience Business Need/Objective
• Standardized, integrated client onboarding process applied globally across different teams
• Decreased time to onboard a client • Greatly enhanced MIS from a single repository • Quick identification of onboarding bottlenecks and resolving
issues
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
ONBOARDING APPLICATION
Onboarding Initiation Form Client Data Enrichment
New Business Committee
Review
Functional architecture
Client onboarding shared service
Other Internal Systems
Client onboarding process
Perform credit-risk due diligence
Manage support task setups (e-trading and down stream
applications)
Onboard Clients and associated
products
Coordinate operational task
and setups
Client Profile Maintenance
Manage client, LE, investment manager
Maintain account hierarchy
Management Information
View and extract reports
View and query Dashboard
Workflow Management
Manage Routing & Process business
rules
Create and maintain
Audit trails
Communicate: Alerts, mails & Notifications
Manage Approvals &
Rejects
Change status across process
Create, Edit, Search, View & Copy Form
Capture Parent, Legal Entity, Investment
Manager
Capture products/services/LO
B information
Add legal docs and assign legal officers
Validate revenue forecast
Add LOB/Service related information
Client Reference Data Systems
Portfolio Accounting
System
Data Warehouse
Other Systems
Capture pricing terms & issue pricing letter
Assign credit risk and on boarding coordinator
Manage and monitor legal doc
status
Administration
Manage users, groups, roles
Pricing Calculator Entitlements Service
Equities Prime Brokerage
FX Prime Brokerage
F&O FX
Trading Precious Metals
Structured Investments
Equity Swaps
Direct Market Access (DMA)
PRODUCTS SUPPORTED
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Engagement summary
Client onboarding enhancements
Regions: North America (US)
Line of Business: Commercial Banking/Capital Markets
Tools & Technologies • Cold Fusion 8.0 • Weblogic 8.1.6 (App Server) • DB2 Connect 9.7 • Oracle 10g • Apache 2.2.6 • Visual FoxPro 9SP2
Client Banking and securities services arm of a major universal bank
Highlights
Services Offered • Functional requirements • System technical design • Development • Testing (SIT)
Engagement Details • Model: Onsite- Offshore • Peak Team Size: 30
(leveraged team supporting multiple onboarding apps)
• Duration: Ongoing (since October 2007)
• Location: Houston, Chicago/Bangalore
Extended coverage across products and customers • Covered additional Bank products with a standardized process and applications suite, and provided additional
granularity at sub-product level • Extended coverage to customers in new locations • Migration of customers from a subsidiary bank Process transparency • Ability to monitor onboarding status easily Improved features to speed up the onboarding task • Enabling customized workflows and different approval processes for different situations • Enhanced user interface to easily capture relevant information, manage permissions, and navigate the
application
Key Business Benefits Delivered
Enhance a client onboarding application used by multiple groups within the Banking and Securities Services lines of business of the Bank
Statement of Purpose
Internal (>200 users): • Onboarding team • Back office operations users
Client Audience Business Need/Objective
• Speed up and streamline the client onboarding process to allow clients to start doing business sooner
• Consolidate multiple onboarding systems arising from a banking merger
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Functional architecture
Client onboarding enhancements
Interfaces
Client Reference Data
Accounts Manager
Entitlements Manager
Others (20 integrated applications)
On-boarding System
Customers
Create Customers
Capture & Update Customer Information
Search Customer
Deactivate Customer
Products
Maintain Product Details
Pricing & Billing
Pricing Options & Fee Schedule
Billing Account setup
Billing Account Maintenance
Report Configuration
Report Selection User Information Report Options Transmission
Schedule Reporting Accounts
Accounts
Customer-Product Mapping
Capture Product Details
Workflow Management
Assign Users to Teams
Monitor Workflow Status
Assign/re-assign workflow tasks to Teams
Account Setup
Account Maintenance
Account-Product Mapping
Capture Account Details
Supported Products
Electronic Statements
Global ACH
US-Only ACH
Account Transfer
Cash Reporting
Real-time wire reporting
Funds Transfer
Cash Concentration
~20 other products/se
rvices
© Copyright 2011 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. Confidentiality label goes here
Thank you