Presentation on theme: "The 7 Steps to Go Paperless"— Presentation transcript:
1 The 7 Steps to Go Paperless A Hands-On WorkshopForFlorida Government Finance Officers Association2012 School of Governmental FinancePresented by :Kurt WachtendorfV.P., National Product Manager - EIPPSenior Solution Consultant
2 Your Workbook The 7 Steps to Go Paperless You received a workbook when you registeredThis workbook will be used throughout the workshopAll content is in the workbookYour exercises are in the workbookUse it to take notes, write down ideas and follow-up itemsThe workbook will become the first draft of your Solution Design
3 Making Sense of the Alphabet Soup The 7 Steps to Go PaperlessMaking Sense of the Alphabet SoupEDM (Electronic Document Management): the management of different kinds of documents in an enterprise using computer programs and storage.DM (Document Management): The capture and management of documents within an organizationECM (Enterprise Content Management): the technologies, tools, and methods used to capture, manage, store, preserve and deliver information, content, and documents related to organizational processesWorkflow: The automatic routing of documents to the users responsible for working on themBPM (Business Process Management ): a systematic approach to improving an organization's business processesDI (Document Imaging): The online storage, retrieval and management of electronic images of documents.EIPP (Electronic Invoice Presentment and Payment): The Commerce Bank Solution
4 Business Challenges The 7 Steps to Go Paperless Paper-intensive, inefficient business processesNeed automated workflow functionality for AP and other processesGain new levels of efficiency without adding staffEliminate paper processing and reallocate staff to value-added workSolve issue of processing and distributing paperwork across departments and locationsMissed discountsStreamline audit preparation and response timeManual data entry is prone to error
5 What drives organizations to go paperless? The 7 Steps to Go PaperlessWhat drives organizations to go paperless?Intensive, paper-based, manual processesTime consuming activities (shuffling paper, copying, filing, etc.)Difficult to track (lost documents, filed in wrong folder, setting on someone’s desk)Matching invoices to PO’s and/or ReceiversManaging high volume of documents from different sourcesReceive faxes, s, EDI and LOTS of paper from many locationsHigh document processing and storage costsFile cabinets occupying expensive real estatePaying for outside storageLack of visibility of invoice and other documents in the processWhat happened to that documents I sent you?
6 Small or large, size doesn’t matter The 7 Steps to Go PaperlessSmall or large, size doesn’t matter“We have years of paper documents stored everywhere. Our hallways are overflowing with file cabinets filled with paper. We can’t afford not to be in control of how our paperwork is processed. Our environment demands it.”“Even as a private organization, our paperwork trail for doing business day-in and day-out is incredible. Getting control of how we process documents means time and money saved. And in today’s aggressive business environment, that gives us a competitive advantage.”
8 What Would You Like To Accomplish The 7 Steps to Go PaperlessWhat Would You Like To AccomplishList 5 things you’d like to accomplish today22.214.171.124.5.
9 What would you like to accomplish? The 7 Steps to Go PaperlessWhat would you like to accomplish?5 things you’d like to accomplish todayWhat can a paperless process do for me?Learn what other organizations are doingwith their processesHow to get my project on trackCalculate ROI and present a businesscase for my projectNetwork
10 Have you ever asked yourself… The 7 Steps to Go PaperlessHave you ever asked yourself…Why exactly are we doing this?How do we implement this solution?Do we know the expectations of the solution?Why have we started with this process?How long will it take?Who will manage the project?Has anyone seen a project plan?How much will this cost me?
11 It’s like there is a wall between us The 7 Steps to Go PaperlessIt’s like there is a wall between us
12 The answer: Solution Design The 7 Steps to Go PaperlessThe answer: Solution DesignSolution Design is a tool that helps you understand the problem, design a solution, and plan the approach in a way that gives you complete control over the project and its outcome.
13 Taming your projects The 7 Steps to Go Paperless The Solution Design helps you:Solidify your understanding of the problem and the desired solutionSelect the best solution providerEnsure everyone is on the same pageDocument clear objectivesCreate a feasible scheduleGet commitment to implementing the solution you needDefine a common language among the team and when talking with solution providerDescribe the requirements and the expected resultsAvoid surprises!
15 Understand the Problem The 7 Steps to Go PaperlessStep #1Understand the Problem
16 Step 1: Understand the Problem The 7 Steps to Go PaperlessStep 1: Understand the ProblemInvolve key users/departments and understand the problem:Paper reduction in the workplaceToo many file cabinetsDifficulty in finding information (time + costs)Distributed offices make it challenging to share documentsNeed for increased security in accessing informationIndustry/Government regulationsToo many systems, not integrated, difficult to distribute documentsTime and cost to retrieve and distribute documentsManaging the approval processFax machines, MFD (Multi-Function Devices), scanners, etc.Sorting and deliverySlow response to inquiries
17 P2P Process – Executive View The 7 Steps to Go PaperlessP2P Process – Executive ViewSends copy to ReceivingPurchasingUser fills out requisition formWalks to Purchasing to deliver requisitionEnters PO in thesystemPrints approved POMails / Faxes PO to vendorFile copy in PurchasingSends copy toAccountingReceivingMake copies of documentsSends copy toAccountingLocate receiving documentAdvanced Shipping NotificationMatch to packing slipNotate exceptionsAccept orderFiles in receivingAccounting files copyPurchasingPurchasing files copyAP receives documentsMakes copiesSends copy to ApproverMatching of documentsConformingNon-ConformingReconcile processGL CodingVoucher entryPrint checksMatch checks with paperworkApprove / SignMailA/P
18 The 7 Steps to Go Paperless P2P Process – User View
19 Purchasing Process – Real World The 7 Steps to Go PaperlessPurchasing Process – Real World
20 Receiving Process – Real World The 7 Steps to Go PaperlessReceiving Process – Real World
21 The 7 Steps to Go Paperless AP Process – Real World
22 Step 1 Exercise The 7 Steps to Go Paperless List the top 10 problems / bottlenecks of your Purchase-to-Pay process from your perspective.
23 Step 1 Exercise The 7 Steps to Go Paperless List the top 10 problems / bottlenecks of your Purchase-to-Pay process from your perspective.
24 What others say… The 7 Steps to Go Paperless Customer AP Problems - Examples:Average time taken from receipt of invoice to payment: 42 daysCost of manually handling, checking and processing a paper invoice and cutting a paper check: $8 to $12 dollarsTaking advantage of vendor discount offers due to processing timeOn average, 3.6% of invoices handled by AP have errors2 Way & 3 Way matching of PO’s, Receivers, and Invoices are manualMultiple AP processing locations creating redundancy and delivery costCost to reproduce documents for audits or customer researchIncreased cost of postage for mailing purchase orders and checksLack of control during approval processAverage days in payables is too high / too lowAverage cost to process vendor payment: $8.15
25 Step 1 Exercise Review The 7 Steps to Go Paperless Tips to help you out:Think about the process you go through every day in your functional areasWhere does the process break down?How much time is your payment process taking?What keeps you from taking advantage of discounts when paying invoices?How can you improve the process?Does it take too many people to get things done?What is it about your process that keeps you up at night?What other departments interact directly and indirectly with you? Who sends you requests, approvals, etc.? Who asks you for reports?How many (and who are they) external entities do you interact with? Vendors, customers, partners… how do they affect your process?Sit down with your users and managers and document your processASK YOUR USERS
26 Action Step – write this down The 7 Steps to Go PaperlessAction Step – write this downAsk the users to list their Top 10 Problems/BottlenecksList their namesVerify whether their list matches mineOK, time’s up. Who would like to share his/her problems and results? [get 3 to 5 people to share with others the problems they have identified and the departments]
27 Identify Goals and Requirements The 7 Steps to Go PaperlessStep #2Identify Goals and Requirements
28 Step 2: Identify Goals and Requirements The 7 Steps to Go PaperlessStep 2: Identify Goals and RequirementsWhat would you like to accomplish?Eliminate paper-based retrievalProvide immediate access to AP related documentsAutomate routing of exceptions to the proper personStreamline workflow and exception handling processProvide automated audit trail to meet regulationsReduce people costs / timeEliminate off-site storageNotification of exception invoicesMake more space availableTake full advantage of AP discount opportunities in a more timely mannerConsolidate operations in one single office, eliminating redundant processes at other locations
29 Step 2: Identify Goals and Requirements The 7 Steps to Go PaperlessStep 2: Identify Goals and RequirementsWhat would you like to accomplish? (Continued)Utilize immediate access to information for more timely and accurate analysisProvide access to all authorized users at any location from their workstationElectronically capture invoices when they arrive and utilize electronic workflow for approval and processingReduce or eliminate the need for multiple copies of certain documentsReduce labor expense for processing these documents (printing, copying, filing document research, etc.)Reduce mailing and shipping costs associated with delivery of documents to and from remote locationsReduce time and work effort for audits with imaged documentsReduce cost of check payments
30 Step 2: Identify Goals and Requirements The 7 Steps to Go PaperlessStep 2: Identify Goals and RequirementsKey questionsWhat are the manual steps in the process (photocopying, delivery, sorting, following-up on approval)?Can we automate anything in the purchasing process?Can we centralize any of the Purchase-to-Pay processes?How do you handle receiving documents (invoices, other docs, etc.)?How do you send your payments?Who and how do you get your checks signed?Who needs to review and approve invoices with exceptions?How do you file and retrieve the documents?
31 Step 2 Exercise The 7 Steps to Go Paperless List the goals you would like to accomplish with a paperless solution.You can break it down by functional area (purchasing, receiving, and accounts payable) to make it easier.
32 Step 2 Exercise The 7 Steps to Go Paperless List the goals you would like to accomplish with a paperless solution.Functional Area: ________Functional Area: __________Functional Area: __________
33 Action Step – write this down The 7 Steps to Go PaperlessAction Step – write this downDo my goals match the organization’s goals?I will NOT let my current situation cloud my vision for the future!
34 Map the Current Process The 7 Steps to Go PaperlessStep #3Map the Current Process
35 Step 3: Map the Current Process The 7 Steps to Go PaperlessStep 3: Map the Current ProcessIt’s more than just technologyThink about the documents you receive or createInvoices, Packing Lists, Bills of Lading, Purchase Orders, Credit/Debit Memos, AP Checks, Receiver Reports generated from your business applicationThink about the ways in which you send/receive documentsFaxes, s, MailIt is more than simply transforming paper into image format, it includes:Scanning, Indexing, ArchivingSearching, RetrievingSending it out to other people for approval, getting alerts and notifications, etc.Integrating into your business applicationAND it includes integrating your business process into the equation
36 Step 3: Map the Current Process The 7 Steps to Go PaperlessStep 3: Map the Current ProcessHow to map the current process:Identify points of origin, decisions and where it endsMap the process, not only one taskIdentify all personnel involvedIdentify potential user issuesIdentify all integration points with core applicationsIdentify document-related as well as activity-related tasksIdentify the ‘problem areas’ or ‘opportunity areas’
37 Step 3 Exercise The 7 Steps to Go Paperless Map your current process: Create the flow for your current Accounts Payable process, using the previous example as a templateTips to help you outThink about the functional areas first, and list all activities that happen there (e.g. Purchasing)Think about the activities that cross functional areasList exceptions - There are always exceptionsAre all invoices handled all the same way?How does play in the process?Do you have a clean audit trail?How many people are involved in handling each document?Is the process the same in other locations?
38 Action Step – write this down The 7 Steps to Go PaperlessAction Step – write this downI will remember to always keep the following in mind:WhatWhoWhenWhy… and what if… ?
40 The 7 Steps to Go Paperless Design the Solution
41 Step 4: Design the Solution The 7 Steps to Go PaperlessStep 4: Design the SolutionExplore different scenarios to solve the problems identifiedValidate chosen scenario with key usersIdentify the technology requiredIdentify changes to business processes, business rules, etc.Prioritize implementation planSchedule review of solution design with executive management
42 Example Accounts Payable Before: The 7 Steps to Go PaperlessExample Accounts Payable Before:
43 Example Accounts Payable After: The 7 Steps to Go PaperlessExample Accounts Payable After:
45 Step 5: Calculate ROI The 7 Steps to Go Paperless Hard Savings Reduction / Reallocation in personnelBusiness operating costs (paper, photocopying, postal mailing, courier services)Reduction in infrastructure costs (sell a building, remove filing cabinets, etc.)Increase in productivity measured by man hours saved not handling paper (standing at fax machine, looking for lost or misplaced files, etc.)Increased cash flow (vendor discounts, improved terms, payment options, etc.)Reduction in cost of processing invoiceGo GreenSoft SavingsImproved vendor/user serviceBetter and faster access to informationFaster internal communications
46 Step 5: Calculate ROI The 7 Steps to Go Paperless One of the best ways to fully capture ROI is to understand what the current costs are (Step 3) and identify how much you will save by implementing a paperless solution (Step 4)
47 Step 5: Calculate ROI The 7 Steps to Go Paperless Areas to look at for savings:Legal mandates and regulatory compliance – Sarbanes-Oxley, SEC Rule 17Off-site storage costs and retrievals for existing documentsLabor reductions possible or additional labor required in the futureEmployee retentionRemote access to documents – no need to FedEx, fax, and/or courier documentsElectronic voucher entryFiling, retrieving, document, matching, audit preparationLost documents (a lost document may cost as much as $150 to replace)Misplaced documents – searchAllows increased productivity around shared documentsReduced printing, mailing, faxing, special delivery costsReduced storage costs from eliminating paper
48 Step 5: Calculate ROI The 7 Steps to Go Paperless Areas to look at for savings (continued):Electronic payment optionsOverall document management costs for existing resources and facilitiesCost of file cabinets/cost of file cabinet real estateCost of off-site storage and retrievalCost of paper, paper clips, staples, folders, index cards, etc.Cost of printing and printers (total cost of ownership for printers)Moving documents between departments/locations and making better decisions quickerImproved securityDisaster recovery
49 Step 5: Calculate ROI The 7 Steps to Go Paperless Examples of areas to analyze – Accounts PayableInvoices sorted into groups (PO vs. Non-PO)Delivery of sorted invoices to usersCoping/scanning and ing problem invoicesDelivery of problem invoices to approversDelivery of resolved invoices back to APInvoices sorted and packaged for delivery to corporate from remote locationsCopying and filing each locationWasted time trying to track problem invoicesExternal auditor - AP user’s timeFiling of completed invoice packetsInvoices matched to related documentsFiling of invoices, statements, order acknowledgements
50 Step 5: Calculate ROI The 7 Steps to Go Paperless The cost of handling paper:Knowledge workers spending >20% of their time on document management tasksThe average document is copied, either physically or electronically, nine to 11 times at a cost of about $18Documents cost about $20 each to fileRetrieving a misfiled document costs about $120Average cost of faxing a document: $2.60Average cost of printing and distributing a paper form: $0.17 per pageAverage cost of the process of creating, modifying, printing and distributing a paper form: $1.26 per pageGoing “Green” can save money and the environment:One tree yields 8,333 sheets of paperEach office workers print 1,000 pages per month (10,000 to 12,000 year)45% of documents are thrown out within 24 hours768 million trees to produce world’s annual paper supplyEnergy consumption (12% of total manufacturing energy)
54 The 7 Steps to Go Paperless Document and Present
55 Step 6: Document and Present The 7 Steps to Go PaperlessStep 6: Document and PresentHelps solidify your ideas, the goals, the analysis and all other steps you took until nowGives other people an opportunity to review the Solution Design as a whole (some people may have only participated in parts of this process)Good way to ensure everyone is literally on the same pageYou can always go back to the document to check why certain things are (or are not) being doneYou have something to hold the Solution Provider accountable
56 Contents of a Solution Design The 7 Steps to Go PaperlessContents of a Solution DesignExecutive SummaryGoals and RequirementsCurrent ProcessSolution OverviewProposed SolutionBenefitsReturn on InvestmentImplementation Methodology
57 Now what? The 7 Steps to Go Paperless You’ve presented the Solution Design and your team has bought in, it’s time to kick-off the Technical Design.
58 How technology projects are usually carried out! The 7 Steps to Go PaperlessHow technology projects are usually carried out!
59 What the user requested The 7 Steps to Go PaperlessWhat the user requested
61 What the vendor suggested The 7 Steps to Go PaperlessWhat the vendor suggested
62 What the proposal described The 7 Steps to Go PaperlessWhat the proposal described
63 What the team implemented The 7 Steps to Go PaperlessWhat the team implemented
64 The tech support you received The 7 Steps to Go PaperlessThe tech support you received
65 What you were charged for The 7 Steps to Go PaperlessWhat you were charged for
66 The 7 Steps to Go Paperless What was really needed
67 The results are well-known The 7 Steps to Go PaperlessThe results are well-knownLack of communication between IT and usersLack of understanding from the vendor of what the problem really isResistance from users on changing the way they usually do thingsSystem integration issuesShort-term focus sacrificing long-term viabilityScope creepMissed deadlines
68 About that project management thing… The 7 Steps to Go PaperlessAbout that project management thing…49% of IT projects fail 1Total U.S. project waste is $55 billion ($38 billion in lost dollar value and $17 billion in cost overruns) 155 % to 75 % of IT projects fail to meet their objectives 240% are never fully implementedExecutives from 117 organizations stated that support costs after software implementation were 20% over original estimate 386% of projects fail for reasons other than technology 432% of project failures occur due to poor project management skills 41: CHAOS Report, Standish Group; 2: META Group; 3: The Conference Board Survey; 4: KPMG Information Risk Services study
69 Business Design So Solution Design is the… The 7 Steps to Go Paperless or
70 Implementation (Activation) The 7 Steps to Go PaperlessStep #7Implementation(Activation)
71 Implementing a Solution The 7 Steps to Go PaperlessImplementing a SolutionInitiate & PlanStrategic VisionCurrent Process ReviewStatement of Goals & ObjectivesExecutive Sponsor MeetingSolution DesignControl & ExecuteOnsite WorkshopRevise Solution DesignProject PlanPayment Solution InstallationIntegration & System ConversionStatus UpdatesStabilize & CloseUser TrainingProject LaunchProject SummationOngoing SupportPost Launch Recommendations & Next Steps
72 Implementation Plan should include: The 7 Steps to Go PaperlessImplementation Plan should include:Project ManagementDefined ProcessPhase 1 – PLANNINGPhase 2 – EXECUTIONPhase 3 – STABILIZE Responsibilities / RequirementsClient ResponsibilitiesProvider Responsibilities
73 Did we accomplish everything? The 7 Steps to Go PaperlessDid we accomplish everything?Let’s go back to the list we created in the beginning of this workshop.
75 The Seven Steps to Go Paperless The 7 Steps to Go PaperlessThe Seven Steps to Go Paperless
76 Involve key users along with management The 7 Steps to Go PaperlessThings to keep in mindInvolve key users along with managementUnderstand how things are done today(the flow, the documents, the systems, etc.)Identify the costs associated with current processes(this will be later used for ROI)
77 The 7 Steps to Go Paperless Things to keep in mindLook at the full process, not just an activity (functional areas)Accept change(change really can be good)Use the Solution Design to guide your selection for the correct solution provider
78 The 7 Steps to Go Paperless Things to keep in mindDocument your findings, your goals, requirements, etc.Plan, then review, then stick to the planTake pride in what you accomplished!
79 Summary The 7 Steps to Go Paperless Paperless projects are more than just technologyUse the Solution Design to understand the problems, how to solve them and set goalsSelect a solution provider that can help you with a Solution Design…… or use the Solution Design to help you select a solution providerBeware of those who say “you don’t really need this, just trust me”Project management is key to any implementation. Be on top of it and make sure there is a methodology and a process in place
80 About Commerce Bank The 7 Steps to Go Paperless Strength, Stability and Growth for over 140 yearsEstablished in 1865; Family operatedTop 50 bank holding company based on asset size, assets of $18 billion 11.5% annual EPS growth over past 10 yearsOne of the largest banks in the country that declined TARP fundsIssuing commercial cards for more than 40 yearsTop 10 on Forbes magazine’s list of Best Banks three years in a rowConsistently ranked in the Top 10 Best Performing Banks by Bank Director magazine
81 Next steps The 7 Steps to Go Paperless Review your workbook Get together with other users/departmentsUse the workbook and start planning your Solution Design in detailIf you’d like us to help you with your Solution Design, contact us