1. Automating Capture with KTM
Ryan Bazler Director, Product Marketing, Kofax
4/19/2017

2. The First Mile Video: 7 Ways to Make the First Mile™ Smarter
Web: Seven Ways to Make Your First Mile Smarter
4/19/2017

3. Multi-Channel Capture Feeds Business Processes
Paper documents
Social collaboration
Paper
Fax
Mobile applications
SMS
XML
Office
PDF
Social
So lets dig a little deeper and take a look at how capture does this
Electronic formats
4/19/2017

4. Without Kofax Understand Decide SharePoint Portal ERP/LOB/CRM ECM/RM
Paper
Fax
SMS
SharePoint
XML
Office
Portal
ERP/LOB/CRM
PDF
ECM/RM
Database
Social
For every piece of information that comes in, before it can be of value, the organization has to look at that information, understand what kind of information it is, decide what to do with it, & then put it in the appropriate system or business process.
This understanding & deciding is usually done by a person, but doing this manually is very labor intensive, expensive, slow & prone to error. & it prevents that person from performing more valuable tasks for their organization.
What is it?
What do I do with it?
4/19/2017

5. Kofax Provides an Essential Link
Paper
Understand
Decide
Understand
Decide
Process Management
Fax
SMS
SharePoint
XML
Office
Portal
ERP/LOB/CRM
PDF
ECM/RM
Database
Social
Capture leverages the capabilities of Kofax’s market leading capture capabilities to capture information before a business process is initiated or “in process” as needed to obtain trailing documents and forms for image and content capture needs. Paper documents and forms can be captured using production scanners to address high volume, batch processing needs, multi-function peripherals (MFPs) and desktop scanners can be used at distributed sites for on-demand needs and the cameras in mobile devices can be used at the Point of Origination where customer facing interactions occur. Electronic content can be captured from faxes, s and attachments, web portals, text messages and EDI or XML data streams. This overcomes traditional challenges of capturing images and content regardless of how, where and when it arises, and then automatically classifies, separates, extracts, perfects, validates and delivers relevant information into systems of record.
The time required to understand & decide what to do with the information is drastically shortened. This eliminates the errors & exceptions that come from manual processing, & enables significant cost savings… & delivers clean, accurate, purified information directly into your business processes.
Kofax software is Enterprise Ready… it easily integrates with existing IT infrastructure and applications including ERP, LOB, CRM and other BPM applications to provide easier installation, deployment, operation, administration and maintenance. This translates into a lower total cost of ownership (TCO) and higher return on investment (ROI).
4/19/2017

6. Kofax Value Proposition
Touchless
Processing
Dynamic
Case
Management
Paper
Understand
Decide
Understand
Decide
Analytics for Capture
Process Management
Fax
BI/Analytics
SMS
Capture
Classify
Separate
Extract
Validate
Communicate
SharePoint
XML
Office
Portal
ERP/LOB/CRM
PDF
ECM/RM
Database
Social
Our resulting value proposition can be summarized in this slide.
Kofax solutions capture information at the Point of Origination, as soon as it is available, whether from a customer’s home, local branch office, or field representative using a smartphone or mobile device. Kofax then both automates and dynamically manages the flow of that information throughout the organization for increased and faster access to that information for increased process efficiency and business agility.
After Capturing information, Kofax Touchless Processing solutions automatically
CLASSIFIES them to enable the most appropriate handling throughout the process
SEPARATE the captured documents to eliminate the need to manually insert separator sheets
EXTRACT the information they contain to avoid the time consuming, costly and error prone process of manual keying
VALIDATE the information according to business rules to ensure accuracy
COMMUNICATE with applications, devices and users to receive and deliver documents, information, alerts and notifications; and
DELIVER the information to the right people and systems for immediate and appropriate action.
Kofax Dynamic Case Management automates and dynamically manages the business process and information throughout the organization, enabling Collaboration and resulting in more effective decisions by knowledge workers. Customers and customers can also participate in the business process all the way to the Point of Origination on Mobile devices. Analytics are incorporated throughout the solution environment with management, reporting, and dashboards available at all steps in the process.
Kofax Enterprise Ready solutions easy integrate with existing IT infrastructure and applications including ERP, LOB, CRM and other BPM applications providing our customers with enterprise ready, scalable solutions. This enables them to more quickly and easily take advantage of Capture enabled BPM, improving the agility of their businesses without the costly and complex task of configuring ECM and LOB systems at the same time.
STOP! Any Questions
Collaboration
Mobile
Point of
Origination
Analytics
Enterprise
Ready
4/19/2017

7. Market Evolution and Growth
Market Size
$5B
“Everyone has a scanner
in their pocket today.”
Geoffrey Moore,
Best-selling business author
Smartphones & Tablets Used by Employees & Customers
$4B
Desktop Scanners & MFPs in Highly Distributed Front Offices
1B+
$3B
Mid Range Scanners in Distributed Regional Offices
100M
$2B 1M
Production Level Scanners in Centralized, Back Offices
We can see the evolution of capture technologies over time, from large back office scanners, to distributed scanners, to desktop scanners and MFPs, and now to smart phones and tablets. Capture has now become mainstream, as best-selling author Geoffrey Moore states, “Everyone has a scanner in their pocket today.” Companies can capitalize on this trend by allowing their customers, suppliers, partners and employees to capture documents at the Point of Origination, right from their own mobile device.
$1B
500K
Monolithic Page Scanners in Centralized Back Offices
100K $0
1985
1990
1995
2000
2005
2010
2015
4/19/2017

8. Importance of Mobile in the First Mile
67% consider mobile devices to be important to improving business processes 45% believe mobile devices would improve their speed of response by > 3X Yet … >75% have made no progress toward these goals
Financial Services
Customer onboarding
Mortgage & loan apps
Appraisals
“Trailing documents”
Insurance
New policy quotes
Customer onboarding
Claim submissions
“Trailing” documents
Mobile use is central to the interactions we see in the First Mile. Although organizations realize the importance of mobile to improve overall business processes, and half believe response times would be improved threefold when supporting mobile devices, most have made no progress toward empowering their customers and workforce with mobile apps and solutions that are integrated with their overall business processes...
Whether those processes involve customer onboarding, applications and quotes, claims submissions, and other trailing or supporting documents.
The potential is there for mobile-enabled business processes, but the platforms to easily develop and support them have simply not existed.
Healthcare
New patient onboarding
Clinical documentation
Medical claims submission
Revenue cycle management
Government
Citizen benefit enrollments
Claim submissions
Licenses, permits & renewals
“Trailing” documents
Source: AIIM – April 2012

9. Mobile – An Emerging Channel
Survey reveals preconceptions about mobile apps, including frequency of usage, buying behavior and likelihood to use for customer service purpose.
48% use mobile apps more than 10 times a day.
Almost half use apps on their mobile device 10+ times per day, more frequently than general grooming and eating.
Brush teeth up to 3 times a day.
Shower up 2 times a day.
How many times do you use a mobile app each day? Half of consumers use them more than 10 times day – that’s more than grooming and eating combined! Mobile apps are changing the world, and changing how you do business with customers.
Eat up to 5 time a day.
4/19/2017

10. Mobile – An Emerging Channel
customer Onboarding
Smart Mobile Apps
Mortgage Automation
AP Automation
Mailroom Automation
Mobile Onboarding
Claims Processing
Mobile Mortgage
Use of mobile devices is exploding and shows no signs of slowing down. As a system of engagement, mobile apps are natural entry points for Smart Process Applications. Smart mobile apps like mobile onboarding, mobile mortgage, mobile quote, mobile capture, and mobile pre-registration work hand in hand with Smart Process Applications such as Customer Onboarding, Mortgage Automation, AP Automation, Mailroom Automation, Claims Processing, Underwriting and Patient Onboarding. Smart mobile apps extend the processes, forms, and rules in TotalAgility 7.0 all the way to the customer’s hands, for optimal customer experience—that’s what makes these mobile apps “smart.”
Mobile Quote
Underwriting (New Business)
Mobile Capture
Patient Onboarding
Mobile Pre-registration
4/19/2017

11. Kofax Stairway to Value
Optimize Customer Experience
Deliver Total Enterprise Agility
Radically transform & simplify the First Mile of customer interactions
Increase Customer Intimacy
Establish new levels of engagement & collaboration
Achieve Operational Excellence
Streamline processes to greatly reduce costs
Value Proposition
Improve Information Visibility
Digitize paper for better access & compliance
TotalAgility 7.0 appeals to different types of buyers with different value propositions. We can classify these value propositions into four areas:
Information Visibility – digitizing paper for better access and compliance purposes
Operational Excellence – streamlining processes to greatly reduce costs
Customer Intimacy – establishing new levels of engagement and collaboration
And Enterprise Agility – radically transforming and simplifying the First Mile of customer interactions – bringing together the three other value propositions to achieve maximum agility across the organization.
Whether you are an IT manager, IT or line of business executive, or C-level executive, TotalAgility 7.0 delivers significant value to your organization.
Reduce Operating Costs
Market Evolution
4/19/2017

12. Enterprise Framework for Capture
Extend capture to the earliest point in the process
Automate, accelerate and reduce operating costs
Enable standardized corporate systems
Standard resources utilized by the entire platform
End to end process monitoring and reporting
Collect
Transform
Deliver
ECM
BPM
ERP
Business Systems
Scan
Recognition
Validation
Release
Kofax Transformation Modules
Intelligent Document Recognition
Kofax Capture
Capture
Basic Transformation
100+ Connectors
Kofax Analytics and Kofax Monitor
Reporting
Systems Management
CA, IBM ,HP, MSFT
Platform Shared Services
4/19/2017

13. KTM Product Overview
Manual document separation and data entry is slow, expensive and error prone.
To solve these challenges, KTM:
Provides Touchless ProcessingTM solutions that reduce the time to understand and decide what to do with information
Automates document classification and separation, and information extraction and validation.
Increases productivity, speeds processes, improves data quality and lowers costs
Use cases:
Invoice processing
Records processing
Digital mailroom
Kofax Transformation Modules (KTM) is a suite of add-on applications for Kofax Capture that streamlines the transformation of documents into structured electronic information by automating the process of document classification, separation, data extraction and validation.
KTM has the greatest value in applications containing a wide variety of document types and document variation, where automation of manual classification and data entry makes the most sense. KTM is a key driver of the Kofax value proposition – it enables touchless processing by reducing the time and effort to understand documents and information and decide where to send them within the organization.
Use cases include those listed here – basically, any information-intensive business process where data from documents used in the process is fed to other systems for storage or further processing.
Mortgage processing
Insurance claims processing
New account opening
4/19/2017

14. KTM Product Overview What business benefits are delivered by KTM? Cost
Exceptions
Risk
Speed
Productivity
Capacity
Executive Sponsor: “I want all our processes to be streamlined – we need be more efficient and differentiate by providing better service.”
Process Manager: “I want a secure, reliable, and easy-to-manage process where my people focus on serving our customers, not handling documents.”
KTM delivers many business benefits. It delivers a reduction in costs because we are removing the need for manual labor to classify, separate, and extract documents. KTM also reduces the number of processing exceptions by eliminating erroneous data at the front end of a business process. KTM reduces risks because we are able to extract rich metadata that can be stored along with the documents and used to apply the correct retention and security policies.
KTM increases the speed of the process because we are using high-powered computers to perform classification and extraction instead of slow manual labor. KTM increases staff productivity because it allows people to focus on value-adding tasks such as supplier and customer service rather than document-handling and data entry. KTM increases the processing capacity of the organization to serve customers because it allows staff to devote more of their time to value tasks.
These are messages that resonate strongly with C-level executives. These executives sponsor the investment in solutions that streamline their business processes and differentiate their service offerings to their customers against their competition. These messages also resonate with process and line of business managers. For example, a manager in the accounts payable department or a customer services manager within a financial services organization wants to offer a reliable and secure process for handling customer documents and wants the staff to focus on serving customers and suppliers.
4/19/2017

15. Kofax – Extensible Capture Platform
Capture & Cleanse
Identify
Review
Extract
Validate
Manage
Content is captured and image is cleaned and perfected
Automated document identification and separation is performed
Document classification is examined for accuracy
Automated metadata extraction is performed on the documents
Extracted metadata is examined for accuracy and rules adherence
Documents and metadata are able to connect to multiple data sources with flexible maps and schemas
The enterprise capture process starts with the capture of electronic or paper “pages”. I use the term pages because, at the time of capture, we may not know what makes up a document. Any number of devices, such as scanners, MFP’s, fax and the file system can be the source for this step. The next step in the process, the identify step, arranges the pages into documents. The common term for this is separation and classification where separation is recognizing the physical boundaries of the document (i.e. is it 1 page, 2 pages, etc) and classification is assigning a type to the document (i.e. this is an invoice). The review step allows an operator to make corrections to this automated identification. Documents contain useful data and once we understand what type a document is we can meaningfully extract this information for later use. For example, we can read the PO number from an invoice so that we can look up that PO and use it to reconcile the line items that we also extracted. Validate, similar to Review, allows an operator to make corrections. The last step in the capture process is Export. This could be simply archiving an image of the document along with the extracted data or starting a business process, such as an AP approval workflow.
Process Any Document Type: Structured, Semi-structured, unstructured
Capture, Validate and Match Data – Bar Codes, OCR, ICR, OMR
Database Matching – Leverage Your Data Sources
Form, Field and Character Level Confidence Scores
Optimize user experience and automation through your control
4/19/2017

16. Document Learning, Not Templates, Rules, and Coding
The Problem
Templates, rules and programming are not viable…
When you have hundreds of document types
When you have hundreds of variations of each doc type
When you have frequently changing layouts or fields for each document type
A learning approach is needed
For initial project configuration in design time – Learn By Example
For ongoing project maintenance in production – Online Learning
Prior to learning, the best way to achieve maximum automation of capture tasks like classification and extraction was to manually configure templates and rules, and make use of IT programmers to create custom code, for each and every document type and variation being processed. This may be doable for a few document types and variations, but is completely unrealistic as projects scale to hundreds or even thousands of document types and variations. Making matters worse is when the marketing department decides to alter the layout of a form or add a field that wasn’t there before. Or when your key supplier changes the layout of their invoice—necessitating manual configuration updates.
To handle a variety of document types, variations of each document type (for example, different languages, different versions, different years), and changes that inevitably occur to the documents over time, it is clear that more automated and streamlined approach is needed – a learning approach applicable to both initial project configuration and ongoing maintenance. We call the learning applied to initial, design-time project configuration “Learn By Example” and we call the ongoing learning in production “Online Learning.”

17. KTM Learn by Example Learn-by-example – done pre-production
Simple training process: provide samples and KTM starts learning!
No rules or programming
Business challenge
Tight deployment schedules and budget
Business benefits
Less costly deployment – lower initial development costs
Quicker deployment – shorter application development times
KTM’s Learn-by-example automatically learns the key features of each document type through a training process which involves gathering samples and “showing” the system which documents fall into which class. Once the key features have been learned for a sufficiently broad set of documents, previously unseen documents can be classified, separated and extracted to a high degree of accuracy. No manual extraction of keywords, key phrases or document features is required, so the configuration process is quicker, less costly, and less error prone, helping companies meet tight deployment schedules and budget constraints.

18. KTM Online Learning Online Learning – done in production
Learn documents quickly, without stopping (“on the fly”)
Increase system “knowledge” and improve automation over time
Business challenge
Maintain and improve performance once in production
Business benefits
Achieve same-day efficiency improvements
Be responsive to new or changing documents
To maintain system performance and deliver a consistent return on investment, it’s vital that learning continue as documents are processed in production. Online learning technology allows new document types to be incorporated into the solution without having to take it offline. For example, it should be possible to add the layout of invoices coming from a new supplier and to increase the automation levels for a known supplier. Such learning is impossible with rules based extraction solutions; they are essentially static and require human intervention in order to make changes and improvements.
The learning process needs to be simple and straightforward. Learning is triggered once all data on a document has been extracted and validated. The validation operator can tag individual documents for learning or send all documents by default. Training commits the details of the document to a specific or generic knowledge base so they can be used to classify and extract documents of the same type when the next batch is processed.

19. Kofax Transformation Modules  Key Competitive Advantages
Capture and process any document
KTM supports all documents and information types so customers benefit from a single solution that extends the benefits of capture across the organization, increasing ROI. Many competitive solutions are departmental and focus on specific document types.
Maximize touchless processing
KTM uses advanced recognition technologies that provide industry leading extraction rates on all types of text, including machine print, hand print and cursive handwriting in over 140 languages. Higher extraction rates mean greater reductions in manual labor and headcount and more touchless processing.
Minimize upfront configuration costs
KTM uses learn-by-example technologies for classification, separation and extraction that can be trained rapidly and work on all document types. Many competitive solutions use complex document templates and rules that take weeks or months to develop, or use auto-templating that doesn’t work on letters, reports and other unstructured documents.
Minimize ongoing maintenance costs
KTM continues to learn as documents are processed in production, improving classification and extraction rates on the fly to increase ROI, and removing the need for manual reconfiguration when documents change or new documents are introduced.
Streamlined exception handling
KTM provides modern, intuitive and customizable user interfaces that allow exceptions to be handled quickly and efficiently.

20. Overview – Medical Claims Add-on Pack
Benefits
Near-complete medical claims capture implementation
Automated processing of CMS-1500 and UB-04 forms
More medical claims processed with existing staff
Faster case resolution, greater customer satisfaction
Reduced processing costs
Improve HIPAA transparency, control & compliance
Integration with existing claims management systems
Ability to process all document types, not just medical claims
A majority of KTM configuration work is done – remaining portion is a PS engagement
Up to 21 person months of work saved!
4/19/2017

21. Overview – Invoice Add-on Pack 1.1
Value Proposition
Out of the box invoice processing demos
Improve speed and performance of invoice processing proof of concepts (POCs)
Internal benchmark: >75% extraction rate for unknown invoices for 5 different countries
Internal benchmark: >97% extraction rate for known invoices for 5 different countries
Reduce Professional Services work for production deployments
Provide best practice methodology and documentation
Functional Overview
Optimized extraction, formatting, validation and pre-configured scripting
Localization in 4 languages (DE, FR, ES, EN)
Demo invoices and databases for 5 different countries
Documentation on how to demo the project
Documentation on how to deliver a POC and customer implementation
The Kofax Invoice Add-On Pack 1.1 for KTM includes:
Proven extraction results of >75% for unknown invoices for 5 different countries
Proven extraction results of >97% for known invoices for 5 different countries
Optimized extraction, formatting, validation and pre-configured scripting
Localization in 4 languages (DE, FR, ES, EN)
Demo invoices and databases for 5 different countries
Documentation on how to demo the project
Documentation on how to configure the project for delivering a proof of concept (POC) and customer implementation

22. Kofax Case Study – Invoices
Customer: Corporate Express
Business: Subsidiary of Staples, $23B in annual revenue & operations in 27 countries
1M+ invoices annually, 35,000 suppliers
Challenges
3.5M invoices, over 35,000 suppliers, multiple processing centers
Labor intensive and expensive manual process
Delays increase risk of lost discounts and poor supplier relations
Benefits
74% are now automated
Expenses reduced >$1M per year
Accelerated processing times
Increased accuracy
Increased discount capture
Improved supplier relations
| Transform Capture Driven Processes

23. Demos
Invoice Processing with KTM

24. Thank you
4/19/2017