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Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
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Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
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Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
Industry solutions 2012 final
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Industry solutions 2012 final

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Strategy/training presentation for key industry solutions

Strategy/training presentation for key industry solutions

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  • 1. © © Copyright2011 Hewlett-Packard Development Company, L.P. The information INTERNAL USE Copyright 2011 Hewlett-Packard Development Company, L.P. HP contained herein is subject to change without notice. Confidentiality label goes hereONLY
  • 2. What you will learn today?1. IPG‘s Vertical approach2. 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? © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 3. IPG Focused Vertical Approach1. Choose vertical industries2. Indentify document centric business problems with greatest pain3. Define solutions for the customer‘s specific business processes4. 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
  • 4. Market opportunity by industry 3X $58.8B IPG TAM for document management solutions including hardware, software, and services $63.9B (Office 52%, Commercial 25%, Production 23%) 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 5. Banking & Mnfg. Healthcare Govt. Education Retail Utilities Media Insurance Loan Product Patient care Governme Student Supplies Service On demand applications lifecycle documentation nt Records distribution Tracking printing and $2000M Mgmt. $585M Contract Mgmt. and Inventory $158M publishing $132M Bids and $291M $158 $190M Awards $456M Insurance Product Patient Records Mgt Cost On Demand Billing and Customer Digital Rights Policy design $468M Containment Printing of Invoicing Billing Mgmt. Issuance $110M (Capture is minimal) $365M Course materials $78M $78M $70M $850M $291M Compliance Supplier Patient Government Student Marketing Customer Subscriber $210M Relationship admissions Constituent records Collateral Supplier Processing Manageme $351M $274M admissions $38M Contract $60M nt solution Management $66M $182M $38M 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 Existing solutions Solutions to be defined Source: McKinsey, InfoTrendsThe $ amounts includes SW (Capture, forms Automation, Workflow and Document Mgmt.), HW (SFP, MFP andscanners), system integration services, and custom web front end development.
  • 6. Savings from MPS allows customers to investOpportunity to improve document centric business processes FOCUS ON COSTS FOCUS ON GROWTH ―Whereas 201 was a 1 MPS DOCUMENT CENTRIC stabilization year for corporate WORKFLOWS America, 2012 will be a year of investing in laying the foundation for growth,‖ says PEAK Mark Spelman, global head of strategy at Accenture, a ECONOMY consultancy. That is likely to mean tapping into some of the TROUGH mountains of cash that 2012/2013 American firms have accumulated over the past few CONTRACTION EXPANSION years. TIME Source: Economist © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 7. Ideal Customer Profile Key targets for Document Workflow Integration Services Enterprise activity to look for:  Lines of Businesses that manage Streamline their paper based workflows. document centric processes. Reduce:  Desire to automate, looking for significant improvements. • Time to money. Shorten the time to complete  Pre-existing investments in document the business process processing hardware • Headcount. • Cost of processing. Content management behavior to • Better Return on Assets look for: • Print and related document management costs  Content spread across disparate Drive continuous process improvements through systems that is both complex and costly to access and manage business analytics, monitoring and reporting.  Difficulty managing regulations in Demand for instant access to documents and document management & electronic content. discovery  Current approach to direct marketing Ensure data security & regulatory compliance. is "one-size fits all" (e.g. relies largely Improve customer messaging and experience. on generic, pre-printed document inserts, etc.)7 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 8. SEAMLESSLY flow information through bottlenecks Healthcare Publishing Education Insurance Retail FSI Solution Partners / System Integrators 2011 2012 scan-enabled business devices SMBs & Enterprises IPG on/ IPG on/off-ramp off-ramp seamless, secure, context-aware experiences Ad agencies Print Service Providers Publishers Content owners Profitability Better RoA Customer Retention Revenue Growth Time 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. Typical Challenges in a DocumentIntensive Environment © 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
  • 10. Document Process – Future StateFuture State © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here 10 July 2011
  • 11. Office & Workflow Document DigitizationA pre-integrated stack of HP and Partner products to help optimize the document lifecycleCreate / Digitize: Authenticate:Create Digitally, Scan & OCR Identify, Tag, SecuritySmart document design &Integration Content Classification, federationwith business applications : Conversion frompaper, audio, video & Tracking: Policy enforcement over unstructured content PD ENTERPRISE Digitization workflow CONNECTORS Graphical workflow modeling and approvals Connectors to enterprise databases and applications (IDOL) Store/Analytics/ECM:Off-ramp: HP Cloud Storage Serv. Repository Workflow process reviewPrint, Publish-to-web ECM, Search & Analytics, Digital Iron MountainMulti-channel delivery Records RetentionOptimized multi-channel messagingand offers © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here 11 July 2011
  • 12. DWIS Reference Architecture builds on theDocument Digitization Workflow © 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
  • 13. Business Value Framework ULTIMATE BUSINESS GOAL SHAREHOLDER VALUE Grow our business Improve Customer Loyalty Become leading U.S. P&C Reinvent Protection & Retirement Executive KPI Insurer in U.S. in 10 years for the Consumer Customer satisfaction Reduce Operating Expenses Improve Book Value (Direction) Grow Premium 100% Measure (TBD) Intent to renew Operating Margin (TBD) (TBD) Willingness to refer Improve share 810 pts. Core Financial KPI REVENUE COST CAPITAL (Direction) 7% annual growth (Required to achieve #1) (Reduce Operating Expenses TBD) (Increase Shareholder Equity, TBD) Business Initiatives Sales and 2011+ Customer Reinvent Agency and Next Infrastructure My Network Marketing Data Center (Strategy, Priority Growth Focused Products and Direct Channel Information Generation Services Cons Desktop Language) Initiatives Reinvention Services Performance Claims Transformation (Thin Client) Strategy • Improve Combined Ratio • Increase Virtualization (~50%) • Increase Customer Retention (TBD) • Improve Expense Ratio • Reduce IT Op Expense (TBD) • Increase Auto/Property Premiums (7%/year) • Improve Claims Ratio • Automate IT Services/Ops (TBD) • Increase Allstate Financial Revenue (TBD) • Improve Customer SetClaims • Reduce IT Labor Costs (TBD) Operating KPIs • Reduce Desktop Costs (TBD) Process/Function • Product Management • Insurance Ops & Customer Service • Application Consolidation (TBD) • Sales (Agency/Direct) • Claims Management • Reduce Networking Costs (TBD) • Marketing • Policy Administration • Customer Service • Underwriting/Risk Management • IT/Infrastructure and Application Services ―HP One to One Insurance‖ HP ―Instant On‖ Enterprise ―HP Flex IT for Insurance‖ • HP Business Intelligence Solutions • HP Software/BTO (Automation) • Application Transformation • HP Exstream/ Multi Channel - • HP ConvergedInfrastructure • Converged Infrastructure HP Solution • HP ES App ServicesApp/Portal Development – Text • HP TS Consulting/Support Text • Enterprise Security Text Initiatives • HP Software: BTO (Quality) • HP Networking / Services • Information Optimization • HP Insurance Industry Solutions • Hybrid Delivery • HP ES App Services ( ITO, BPO Modernize), • HP Policy Accelerator • HP Thin Client / • IPG Dynamic Marketing / Publishing • 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
  • 14. Consultative sales engagement EB AGM IPG ACCOUNT MANAGER RESULTS TECHNICAL SERVICE BUSINESS PROCESS A leading MPS CONSULTANT CONSULTANT provider8 of top 10 CONSULTANT Insurance companies useIPG services and solutions — +$8B in TCV7 of top 10 —Healthcare companies useIPG services and solutions 23B Pages under contract Conduct a program Perform an Optimize or workshop assessment results © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 15. Document Workflow Integration Services Framework Document Process Invoice Processing Solution Optimization Claims Processing Solution • Improve process efficiency & meet compliance needs • Process improvement bringing cost • Lower operating costs through Cloud up to $15-20 per claim saving solution • On-demand document retrieval for Workflow Technology quicker approvals • Gain 2-3% early payment discount Roadmap • Straight through processingpprovers Product Evaluations & POC Document Workflow Industry Solutions Product Assessment Implementation MphasiS/HP Labs Industrie s Bankin Insuranc Manufacturin Retai Public Sector CME Educatio Healthcar Transportatio g e g l n e n Enterprise Industry Global Intellectual Architecture Expertise © Copyright 2011 Hewlett-Packard Development Company, L.P. The information Delivery Property contained herein is subject to change without notice. Confidentiality label goes here 15 July 2011
  • 16. 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
  • 17. Dashboard to track your Funnel and Wins/Losses Business Questions Addressed: • Am I winning more opportunities? • Who are my top customers? (top deals by Data Filters: deal value) • View by region: WW, AMS, EMEA and • Is the average deal size of won deals APJ increasing over time? • Is the average deal size of lost deals • View by industry and sub-vertical: includes decreasing over time? all as in the Vertical Hierarchy • Why are we winning deals? Against whom are we winning? • View by Product Line: includes select IWS, LES, GSB and MES product lines • Why are we losing deals? Against whom are we losing? 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.comgroupsIP © Copyright 2011 Hewlett-Packard Development Company, L.P. The information GFunnel contained herein is subject to change without notice. Confidentiality label goes here
  • 18. How to Download the Tool Click Run on Start Menu Paste Shared Drive link – (URL) fileshares.corp.hp.comgroupsIPGFunnel 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
  • 19. Who can help? IPG MES Industry ExpertsMarket DevelopmentConsultants. Over 250 years of Vice Presidentcombined experience. Market Development John Tomesco John.Tomesco@hp.com Executive Assistant Lindsey Stratton 858.655.3434 Commercial & Service to Enterprise Solutions Pub Sector & Healthcare Services Industries Strategist Peggy Dunlea TBD Akila Kumar Peggy.Dunlea@hp.com @hp.com akila.kumar@hp.com 832.878.2146 408.223.8217 Asst., LeeAnn McBath Asst., LeeAnn McBath 208.396.2806 208.396.2806 MDC – Financial Services MDC – Process Mfg, MDC – Communications, MDC - Defense & Security MDC -- Government MDC – Healthcare Solutions Business Mgr Utilities/Energy Media & Entertainment Agencies Elisabeth Rochman Randy Hickel Joe Wagle Robert Penrod Eileen Griffee Alan Saxton Elisabeth.Rochman@hp.com Randy.Hickel@hp.com Joe.Wagle@hp.com Robert.Penrod@hp.com Eileen.Griffee@hp.com Alan.Saxton@hp.com 410.919.7370 510.693.6721 +41 79 8282832 917.975.8133 301.874.1779 208.599.5994 MDC – Healthcare MDC – EMEA Sales/ MDC - Public Sector MDC – Government MDC – Retail Banking MDC – Discrete Mfg Valeria Phillips Gary L. Rodgers Laurie Eldridge- Chuck Gowin Marie-Amélie Masnou Dev/Market Support Valeria.Phillips@hp.com Gary.Rodgers@hp.com Shanaman Chuck.Gowin@hp.com Marie-Amélie.Masnou@hp.com Valérie Da Fonseca 856.308.7799 765.520.6267 Laurie.Eldridge@hp.com +49.162.289.7745 Valérie.Da-Fonseca@hp.com 813.454.3801 610.850.1237 +34. 616.181.980 MDC – Retail-CPG- Distribution Marc Monsonego Marc.Monsonego@hp.com +521.555.4329950 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 20. Account opening accelerator forcommunications, media andentertainmentEileen Griffee1 October 201 1 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 21. 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 Potential21 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 22. Business problem definitionWhat service providers are looking for – Transform customerexperiences though enhanced service delivery • 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 requirements22 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 23. 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 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 system23 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 24. Target customer profile CEO, COO COO, Business Director of Retail Operations Operations ―We need to improve our customer ―It‘s more than reducing costs – it‘s ―We need to provide the best customer experience while we reduce linking across and automating business experience from the moment they walk operations costs, reduce complexity processes and improving the customer in the store until the time they leave.‖ and the impact on environment.‖ experience‖ Director of Director of Corporate Retail Marketing Counsel Information Media/Library Technology Heads ―We need to reliably support our ―Using our business output to provide a ―Our customers entrust us with their customers and provide the best service the best customer experience and to information. Also, compliance is not and support to our internal and support our customers with a an option and requires security and external customers. personalized user experience. tracking of critical information.‖24 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 25. 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained25 2/16/2012 HP Confidential herein is subject to change without notice. Confidentiality label goes here
  • 26. How do I sell the solution to the LOB?Who to call on/Questions to ask • Ask for a tour of a retail store. • Director of Retail • What is the process for opening an Operations account or adding a new service? • What type of forms are required? • Director of Retail • Do you need a copy of the Marketing Operations customer‘s license, credit card, etc.? • What type of documentation do you • Director of Retail Sales provide to the customer? Coverage • Divisional Retail maps, terms and conditions, rates, additional services available? Manager • How are the forms processed after • Director of Retail IT 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? © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained26 2/16/2012 HP Confidential herein is subject to change without notice. Confidentiality label goes here
  • 27. Before After• time spent w/customer • improve customer experience• time spent processing paperwork (reduce churn) (store manager and store rep) • increase number of customers• storage costs served • reduce printing costs• risks associated w/unsecure customer info • eliminate storage costs• contract fraud • reduce carbon footprint• inability to attach new svcs to • secure information existing contract • contract/sales audit• inability to locate contract • central repository lookup for information beyond store services – contract available to mktg, call center, sales, etc.
  • 28. 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
  • 29. Account opening for CME workflowBefore HP HIGHLY PAPER-BASED PROCESS NEGATIVELY IMPACTS CUSTOMER SERVICE and can pose significant costs and risks associated with unsecure information.Customer provides Retail associate Customer Retail associate Customer receives information scans and copies signs documents prints multiple copies hard copy of required documents for record-keeping contract $70K PER YEAR 13 $2.34 Total costs (Off-site storage) Total pages printed Total page dollars/contract $ $ Service event requires retrieval of contract Off-site archive Courier to archive In-store storage from off-site and physical transport back to store
  • 30. Current state process workflowCustomer experience and cost per gross add(current overall process cost) $300 to $400/customer Avg transaction 57 Significant minutes Print volume from contracts Reduce environmental impact through reduced pages Reduce risk of exposure to loss of confid info Approx 1 hr/day per Reduce store storage Required for sales costs audit Reduce environmental impact by Improve overall eliminating customer experience storage trips = increased revenue and reduce churn Black line = in store contract process Red Line = process to retrieve contract30 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 31. Value propositionSuggested offer addresses key pain points in the current process Service Provider Financial Efficiency Cost Savings Market visibilityFROM current state… HP offer details • Ability to offer completely paperless• Multiple copies of contract • Contract copies printed and • Cost to acquire a customer – • Revenue vs. CPGA contract process. printed and stored manually stored in retail environment by Cost per Gross Add (CPGA) sales associate under scrutiny • Controlling operating • After data is captured in contract, copy• Service providers deal with expenses to enable improved of proof of identification may be paper based processes for • Fax copies to review contract • Operating expenses are technology and services required. Ability to capture and route customer transactions and originated in different store unknown and out of control internal processes in the retail (printing, off site storage) • Reduced opportunity for fraud proof of identity – license, passport or environment • Manual document based bank statement into customer processes are inefficient, database. No hard copy doc to store increase exposure to security or expose to loss. risk, labor intensive and reduce time spent • No need for any documents or w/customers signature to be retained or archived (subject to legal approval).TO future state… • After signature, customers may want an electronic copy of agreement or• Improved customer • Process automation • Reduced costs (printing, • Lower churn rate drives experience, reduced churn storage/retrieval) improved revenue and small % will request hard copy. • Efficient end-to-end processes increased margin • Provide real time search and retrieval• Decreased risk of exposure of resulting in improved • Increased productivity and to speed up customer service across all secure information operation, increases the reduced CPGA • Fast, transparent and number of customers served auditable processes resulting touch points. Ability for customers,• Reduce issues with • Potential for faster time to in confidence, satisfaction, other stores, mktg and call center reps compliance audits • Ability to view contract - real market low customer churn and to view agreements on-line. time search and retrieval to increasing revenues• Ability to create targeted improve customer experience • Reduced carbon footprint • Store copies may be missing or customer communications across organization incomplete • Store copies are subject to theft, fire, or flood. • Daily audit by mgmt of contract Offer addresses key pain points and presents opportunity to improve customer experience, reduce and improve multiple transactions automated with electronic aspects of CPGA and reduce churn. contracts SOURCE: Customer interviews, JD Power, team analysis © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 32. Account opening for CME workflowAfter HP Account Opening Accelerator AUTOMATED PROCESS IMPROVES THE CUSTOMER EXPERIENCE and can reduce costs, administration time, security risks, and carbon footprint. Mail E-mail WebCustomer provides Retail associate Customer signs CUSTOMER DATABASE MULTI-CHANNEL information scans proof of ID signature pad; wet DELIVERY if required signature if required. Contract delivered to customer platform of choice 75% REDUCTION IN STORAGE COSTS 0 PAGES PRINTED Documents delivered via email, internet portal, etc. ELECTRONIC ARCHIVE Contract image (not just data) accessible to other retail locations, marketing, customer service, and call >$2M SAVINGS centers for services FOR 1M NEW CONTRACTS
  • 33. Future state – Hybrid process workflowImproved customer experience, reduced churn and Cost per GrossAdd (current overall process cost) reduced by $3.5 mil* 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 Reduced printing costs by >60% $324K for 1 mil/yr Eliminating paper contracts eliminates (sm % of customers still request risk and loss of confidential information paper contracts but none required on site. by store.) Millions saved from lack of data HP Capture breach software 100% improvement 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 HP Exstream Eliminating need for off site storage. $77K for 100 stores - 100% savings Significant reduction in opex and impact Electronic contracts enable on the environment (no wkly/monthly pickup) access to contract by all retail outlets, 100% improvement 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 Dotted line = adding the barcode or metadata via enterprise or Exstream Blue line = process to retrieve contract from external storage provider Black line = in store contract process *based on 1 mil contracts © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 34. 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
  • 35. Business process – High level flow Manage Operational Business Activity SLA tracking/ Dashboard BI Analytics Data store Monitoring Op. monitoring Retail Operations Notify Real-time analyzed data Real-time data Retail associate Channels Capture Validate Collaborate Integrate Customer Back-end Systems Format Workflow Real-time Scanning Verification management Integration EDI* ERP Image Backend Queue Batch Enhancement Validation management Integration CRM Variable Adapter Legacy Data extraction Data Enrichment Document printing factory Fax Others Process Specific Applications Mail Shared services Corporate HQ IT Document Operational Security Reporting tool Audit Trail Utilities Data storage Management © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 36. Savings per contractCurrent average CPGA = $300Savings and new average cost = $297Total $ savings over 1 mil contracts = $3.5 milType of savings Cost per contractReduced print costs .32Reduced storage costs .31Reduced contract retrieval .46Reduced fax costs .07Subtotal hard costs 1.16Reduced labor cost for contract/document retrieval .57Reduced time per transaction .96Reduced labor for audit .82Total 3.51 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 37. Creating the ROIElements Input Data Input variables Input valuesNo Of Stores 400No Of Contracts 1000000Average Pages Per Contract 3No of Boxes per Month Per Store 3% of Contracts Retrieved 5%No Of Working Days 312No of contracts per store per day 10 Fixed Data Fixed variables Fixed valuesCost per page $0.18Cost per Pick Up $2.01New contract Archiving per Box $19.56Time Taken per retrieval (Hrs) 1labor cost of an average retail associate ($) $11.51Contract Retrieval fee $9.2Fax line Cost reduction $180Time per transaction (mins) 57Reduction in time (mins) 5Time taken For Audit (mins) 30Average Week 6Reduction 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
  • 38. Creating the ROI (cont’d)Results Particulars $ SavingsReduced/Eliminated Printing Costs $324,000Reduced Storage Costs $310,608Reduced Time and Cost per Contract retrieved $1,035,500a) Labor Savings $575,500b) Contract Retrieval fee Savings $460,000Fax line Cost Reduction $72,000Reduced Time Per transaction $959,167Auditing Savings $718,224Total $ 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
  • 39. Impact areasDescription Impact Hard Soft Customer Cost Cost ExperienceCustomers• Unable to view agreements on-line X• Unable to view agreement at other stores XOperations• Printing (paper, toner, maintenance, downtime) X X X• Delivery of agreements to Iron Mountain X X• Retrieval of agreements from Iron Mountain X X X• Too-frequent printer failures may create sales bottlenecks in stores during periods of peak volume X X X• Inefficient process for viewing agreements archived at Iron Mountain X X• Inconsistent processes in place for retention of agreements within stores X X X• Ability to complete a sales transaction without printing store copy or obtaining customer signature X X © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 40. Impact Areas (cont’d)Description Impact Hard Soft Customer Cost Cost ExperienceCall Centers• Unable to view agreements on-line to resolve customer disputes X• Refer customers to stores to obtain a copy of the agreement X X• Increases time and expense for dispute resolution X XSecurity• Agreements with sensitive information in back office and mall storage areas X• No disaster recovery if copies (in-store, in-mall, or at Iron Mountain) are destroyed by fire or flood XSales & Marketing• Customer experience varies by store X• Competitors offer paperless agreements XStore Management• Spend time daily reviewing 100% of agreements even if not all have exceptions X• Storage of agreements could be used for marketing materials or additional product X © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 41. Account opening accelerator for service providersTotal first year cost per 100 stores - $977,955 Devices all extensible MFP‗sMPS - 2 MFPs x 100 stores = $194,370 Software HP Exstream Content Capture OCR or OmTool Management tools/Composition engines or Hyland Exstream or NuanceKofax Capture License for 2 MFPs x 100 stores = $264,868 and $250,000 Exstream Services & Support • Assess it • Design it • Implement it • Keep it runningKofax 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
  • 42. Value propositionService provider economics: Offer presents a $1.5 M opportunity Economics for service provider (cost per gross add) 300 Key assumption: 3 HP can capture half of savings through 200 paperless contracts. 300 297 100 0 Current cost per Value released by Future cost per gross add offer gross add Account opportunity ($ 5MM for 400 stores) 300 297 200 300 1.5m 100 3 1.5m 0 Total cost per Spend not Spend addressed by Value released to Revenue opportunity 1 2 2 contract addressed by offer offer customer = 400 stores 1. 1m in Europe net adds contracts net adds in 2010 2. Spend on non-document processing activities SOURCE: customer data, industry analysis42 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 43. Market opportunity:Service provider industry analysisBusiness imperatives for service providers, challenging retailoperations 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
  • 44. Business case for HP Account OpeningAccelerator/Paperless ContractsImprove customer experience—reduce operating expenses 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 45. Account Opening Accelerator for CMEBefore After•time spent w/customer •improve customer experience (reduce churn)•time spent processing paperwork (store •increase number of customers servedmanager and store rep) •reduce printing costs•storage costs •eliminate storage costs•risks associated w/unsecure customer info •reduce carbon footprint•contract fraud •secure information•inability to attach new svcs to existing •contract/sales auditcontract •central repository lookup for services –•inability to locate contract information contract available to mktg, call center, sales,beyond store etc.© Copyright 2011 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. Confidentiality label goes here
  • 46. Customer – Telefonica O2 Account Opening Accelerator - paperless contractprocessing (first step - deploying mfp’s, next steps planned) (4) Electronic version of(1) Data entry into AOA (2) Electronic signed contract sent via Module signature of email to customer the contract captured by AOA (5) Electronic archiving of contract in SharePoint (3) Image of signed contract + contract information O2 (6) Scanning of required attachments sent to CRM (ID, bank statement…) archived into CRM SharePoint (attached to the contract) © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 47. Communications, Media and Entertainment SnapshotCM&E• 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 OSS BSS BPO M&E• Application development and • Supporting mission Critical • Supporting Wired Line, • Content Production maintenance Services • Content Management Billing applications both retail Wireless and Cable• Fraud Management & Service and wholesale systems • Providing end to end services • Content Distribution Assurance - COTS platform enhancements and support • Application Development and from new customer acquisition • Editorial Services Maintenance for Convergent to servicing through multiple • Entertainment Experience• Network Management Mediation COTS Platform channels Management• Supporting critical Provisioning • Market Research and service fulfillment systems • Systems Integration • Data migration and transition of • Media Monitoring &• Supporting critical Order management systems a critical billing system Analysis 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 47 and testing leading to an improved customer experience 2/16/2 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here 012
  • 48. MphasiS CME Offerings & Solutions • Over 10+ years of service excellence • Right mix of voice and non- voice footprint • BI on Mobility •E-Bonding with committed focus on process excellence • Complete portfolio of CME BPO Services • Revenue Assurance • Mobile Payment • iCRM • Commission • End-to-end data processing in a secure • • Deep pool of experienced Siebel resources Identity Management environment • •Order Management • Global Delivery Team (Right Shoring) Click to Connect • 800+ deep pool of experienced • Marketing Analytics • E2E solution from strategy to AMS • Test Lab • Experts in Managing Complexity meeting • Digital Media Management Framework clients needs • Strong alliance with Oracle in Siebel space Point • Customized methodology designed to meet • Dedicated Apps team the specific needs of Siebel Projects BPO Solutions • Apps Consolidation , Modernization Mergers, Rationalization CRM Acquisitions • Apps Portfolio Assessment & • Domain & Industry experts – • Dedicated Application Services Team focused Divestitures US,EMEA & APAC on Billing, Mediation and Interfacing Applications CME • Mission Critical Billing Operations for one of the Offerings largest Custom Billing Platforms Billing • Native Apps • Certified Billing Professionals at various levels - Mobility • Application Data Mgmt Fundamentals, Advance, Proficient, specific • Mobile Web Connect COTs Products • Device Drivers • COTS expertise – Intec, LHS, Oracle BRM • Usability • Billing Solutions COTS Billing Product Adapters Enterprise Portals Testing Applications • End-to-end services • Self-Service -to manage their accounts and implementation, upgrades, perform transactions migration, maintenance and • CMS -to provide dynamic information about • Test Automation Framework support product services and network management • Call Graph - Regression and infrastructure information to clients Testing Framework • Portal Platform Architecture • Orthogonal Array • Multi-Functional Web Portal Integration 48 2/16/2 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here 012
  • 49. 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 follow49 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 50. Solutions and capabilities are in place but not utilized forCompetitive landscape industry solution.Xerox/ACS: Account opening capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Global offices and • DocuShare CPX • Xerox and ACS both • Offered across verticals, Telecom delivery centers – software application have in-house including: • Aliant‘s re-designed strategic alliances acts as enabler – can be professional services – Healthcare monthly bills to please enable global reach integrated with Kofax teams customers and cut costs – Insurance• A/P services delivered • May also choose to use • ACS‘s acquisition of • Telecom Egypt, the from near-shore/off- other capture/workflow Systech Integrators – Manufacturing & country‘s only provider shore locations – products (2006) added focus on Distribution of fixed telephone lines, courtesy ACS SAP consulting services – Retail • Ability to turn statements outsourced billing to – added offshore• Through ACS, Xerox into advertising vehicles – Telecom improve cash flow and consulting capabilities can offer completely - courtesy PlanetPress save $12 million (US) outsourced account Suite from ObjectifLune. • ACS provides – Transportation annually on overdraft opening – contracts BI engine? integration capabilities – Banking charges printed in store, with major ERP systems Network Equip Provider processed and archived by ACS • 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 rate50 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 51. Solutions and capabilities are in place with partnersCompetitive landscape but not utilized for industry solution.Lexmark/Perceptive: Account opening capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• On premise & SaaS • Account opening In house consultative • Financial Services Telecom solutions: solution solution combines division providing: • Healthcare Signage and shelf label• Customizable workflows Lexmark hardware & • Discovery programs • State Government solution• Indicates worldwide but Perceptive ImageNow • Solutions Development Workflow improvements • Retail likely to be North platform and Integration Systems • Mfg & Distribution Healthcare: America and Europe • Perceptive has industry- Engineering Resources • Hospitality • Cedars – Sinai centric specific partnerships. • Perceptive industry- Ex: Brainware for • Energy & Utilities • Invoice processing;• Perceptive is the IP and specific partnerships Integrated with intelligent data capture (Lexmark hardware & solution arm – however also includes consulting PeopleSoft doc distributor software NA centric. Lexmark will solutions in accounting in some & financials industry integrated with FileNet • Mercy Medical Center need to leverage regions/countries. • *ImageNow provides capture; hardware also Accounts Payable; presence in other Ex: Optim2 in ANZ for unified has embedded Kofax Integrated with geographies to scale financial-related back environment/platform DES client and Meditech & Mysis Vision delivery/offering office functions for document integrated with Kofax apps • Integration with ERP Doc Exchange Server) management Energy & Utilities: systems, as well as workflows/processes • Telecom • Deep Marine legacy applications Technology Accounts Payable; Integrated with Microsoft Dynamics SL • Aqua America, Inc. Accounts Payable; Integration with Lawson Financials51 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 52. Solutions and capabilities are in place with partnersCompetitive landscape but not utilized for industry solution.Ricoh: Account opening capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Largely Europe and NA • Ricoh provides the • Owned professional • Publicly announced Manufacturing centric hardware, and services capability solution wins have been • Mammoet• Have capture and combines with partner mainly through IKON across manufacturing Scanning, data capture, partner solutions that capture, routing & • Fills gaps with regional and postal/parcel routing & storage of could provide in house workflow software to SI partners that may be services accounts payable or outsourced – account deliver on premise aligned to specific • Ricoh has limited invoices; Ricoh opening solution but not invoice processing verticals marketing message to combined with ReadSoft messaged to industry automation industry and CTAC (Dutch IT • Solution partners service provider – include: EMC Captiva & customization of Documentum; Kofax; invoices to integrate Interwoven, IBM, Open with SAP ERP) Text, and Oracle (Stellent), ReadSoft, Manufacturing Basware (Ricoh acts as • Mammoet reseller) i-invoicing solution; • Leverage IBM production of invoices & relationship as access statements at Ricoh‘s point for enterprise external print facilities; accounts claims to have cut time- to-invoice by 4 days and cut production costs by 20%52 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 53. Solutions and capabilities are in place with partnersCompetitive information but not utilized for industry solution.Canon: Account opening capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Mainly in Europe and • Several software • In house consultants for • No specific verticals Real Estate North America partnerships for OCR, assessment, targeted for account • Customer name: NA• On premise only capture, archival, implementation, opening Worked with Canon• Owns imageWARE retrieval etc deployment, training • Industry focus solutions Professional Services to software – includes • For invoice processing and support highlighted – education, implement solution; document manager, main partner is IRIS – • Acquired PS from Océ financial, legal and customer installed web document server, provides an automated but mainly in healthcare imageWare scan scan manager, workflow document & information commercial & • Success stories show manager, imageWare composer capture solution in production space that solution is available document manager and• No specific/articulated Europe. Canon also • No mention of ERP for a variety of verticals Canon hardware solution with regard to bought a 17% stake in integration such as, real telecom or account the company estate/property opening solutions management53 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 54. Competitive differentiation:Account opening capabilities Business • Gap in competitor Intelligence offerings around Exstream, SaaS and SaaS business intelligence • Emphasis around these Professional Services capabilities will create differentiation for MES Integration offerings w/ ERPCustomization • Competitors are Retrieval equipped with basic component of account Archiving opening solutions • No industry messaging Routing/ Workflow • Many overlapping partners but they are not Capture developing the solution to meet the customer needs Xerox Lexmark Ricoh Canon MES/ MphasiS High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)54 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 55. Existing MPS footprint 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 X55 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 56. Examples of the number of retail storesper service provider Owned and partner Vodafone (globally) 2200 + 10,300 (franchise) Vodafone Hutchison Australia (VHA) 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) Approx 1,000 total Telyco 500 Remaining franchise56 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 57. HP Distributed Workflow Solutionfor Healthcare© Copyright 2011 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. Confidentiality label goes here
  • 58. 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 Footprint58 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 59. Business problem: Admissions process challenges 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 59 contained herein is subject to change without notice. Confidentiality label goes here
  • 60. Target customer profile Chief of Chief Medical Chief Nursing Compliance Information Officer Officer ―Propose solutions that will ensure ―Help me get the right information to ―Increase productivity to improve security of private health information the right place at the right time and in facetime with patients. Help automate and reduce risk of breach. Understand the right format, reduce medical error paper intensive workflows & patient compliance laws in my country‖ while improving outcomes.‖ communications to improve outcomes‖ CIO/IT Director of Director of Manager HIM, Admissions Medical Media/Library Records or Heads the Records Manager ―IT resources are tied up with EHR ―I need to find a way to reduce the ―Help me reduce the number of steps initiatives like CPOE and compliance number of paper records per patient it takes to admit a patient and guidelines. I need solutions that will chart via distributed departmental automate to reduce human error., free up IT resources to focus on these scanning‖ speed up revenue cycle‖ projects as well as secure PHI‖.60 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 61. Patient Admissions for Healthcare ProvidersAfter HP Laser Patient Identification and Distributed Workflow Solutions PRE-ARRIVAL PROCESS ADMISSIONS + COMPILE ADMISSIONS PACKET ADMITSchedule in-house services & orders, assign bed Admit and deliver treatment Process information • Securely scan hardcopy data digitally to workflow via HP MFP. with EMR • eSignatures applied to eForms. Pull record from • Print patient admissions MR storage packet from same MFP Replace a copier, laser printer, fax, thermal printers, pre-printed forms, and an addressograph machine with one HP MFP Archive medical records electronically with pull printing and color wristband printing capability and eForms-enabled software.Collect external diagnostic documentation © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 62. $ Labor cost hours FTE//patient 1Value proposition $/hour FTE cost 2Current state: Patient admissions Print, Wristband, label, Prep/Info Collected Data Entry/Signatures Pre Printed Forms Pre Admission/Storage blue card Retrieval New patient – I 5 6 labor costs 80 % of this process is paper in worst case scenarios, external documents Admitting picks Admitting picks up may arrive electronically, via fax from Primary Care Phys Pre –admission up Patient labels Patient Wristband from Wristband from Wristband scheduling, bed 0 1 2 3 4 Medical records Patient Admissions Patient signs Pre-Printed Printer Printer assigned pulls patient documents personnel HIPAA/conse forms record from MR collected, populate nt forms, collected per storage and copied, & (type) EMR Health diagnosis per .03 40 .03 40 .50 30 sends to placed into w/patient History insurance admissions – chart- copy update & forms coverage and 1.20 1.20 15.00 external of insurance admits completed. other documents rec‘d card patient into Forms are situations and delivered to HIS placed into placed into finance chart record .5 30 .16 40 .16 40 .08 40 .16 40 8 7 Offsite paper chart Addressograph Admitting picks up storage/retrieval 15 6.40 6.40 3.20 6.40 embosses blue face sheets from required per card – picked up Printer admission for 7 yrs Manual Collect docs such Collection of Collection of by admitting aduls, 20 yrs child. paper as referral forms, documents and forms that transport – Physician Orders, manual chart become obsolete .06 40 .03 40 .25 30 Data Courier, fax, test results : entry creation and lengthen 2.40 1.20 7.50 email, copy, Courier or revenue cycle phone fax .15 hrs per patient ~.75 hours/patient $6.00/patient ~$22.50/patient ~1 hour per patient per 4 day stay ~$ 40 per patient ~1.90 hours per patient per 4 day stay ~$ 68.50 per patient (~58% in-hospital, ~42% pre admit & post discharge) Assumptions: Relevant fees ~$30 per month/analog phone line4 Times refer to labor touch time processing the paper forms and not cycle time ; based on case studies and assessments IT costs ~$1,0 00.00 patient/year 350 bed hospital in process of EMR & CPOE Implementation • Key cost driver: Manual Paper Processes2. Source – Forrester Total Economic Impact of Perceptive ImageNow, April 2008 • Result in human error3. Sources – ROI Case Study, ImageNow at Citizens Memorial Healthcare by Nucleus Research • Missing/lost info can cause adverse events/delay rev cycle © Copyright 2011 Hewlett-Packard Development Company, L.P. The information • Pre-Printed Paper forms that turn obsolete delay claims contained herein is subject to change without notice. Confidentiality label goes here
  • 63. Value propositionSuggested offer addresses key pain points in the current process AdmissionsFROM current state…Prone to Human error that can cause adverse events and delay reimbursement… HP offer details • Scan and digitize all incoming docs• Manual pulling of • Insurance verification • Pre-Printed forms • Multiple devices • Storage needs for all directly into Workflows to ECM or records from Medical slow as insurance become obsolete and needed to complete patient records, high EMR Repositories and/or BI systems Records storage and cards are copied and delay reimbursement admissions packet: 1 cost and slow courier to Admissions faxed to finance • Multi step admissions printer for retrieval of important • Conduct OCR, if necessary, on docs to• Patient completes • Patient completes process with manual wristbands, 1 printer information needed extract relevant information multiple forms multiple forms copying of for labels, Copier to when patient • Check for errors in information requiring duplicate requiring duplicate documents and copy patient readmits extraction and correct them data data pulling Pre printed documents 1 printer • Provide patients longitudinal health forms to create for face sheets, record at point of care admissions packet Addressograph for blue cards, etc. • Convert paper based forms to electronic with e-signature capability • Speed up revenue cycle with all correctTO future state… versions of forms made available electronically and all necessary• Medical History • Revenue cycle • One step admissions • One MFP with • Storage needs information is available at time of pulled electronically improved as process including Access Control eliminated with claim at point of insurance verification eForms processing needed to automate electronic medical admissions greatly is immediate greatly reduces the Admissions records and all • Provide real time search and retrieval reducing costs & • Digital signature human error! Packet incoming paperwork to greatly improve patient outcomes by improving clinical eliminates need to digitized at the point getting the right information to the right decisions. print paper of capture place at the right time in the right• Improve patient • Eforms allow fast format so more informed decisions can satisfaction with patient onboarding be made at the point of care simple verification of • Data is now available to the Health existing data in PHR. Information Exchange for all key stakeholders in ACO to access as Offer addresses key pain points, improves patient outcomes, speed sup revenue cycle and presents opportunity to needed reduce processing time by 50% SOURCE: Workflow Assessments, Strategy Consultation Programs, Team analysis Detailed flow follows © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 64. In-Patient Admissions for Healthcare ProvidersBefore HP PRE-ARRIVAL PROCESS ADMISSIONS COMPILE CHART ADMIT Print sheet of labelsSchedule in-house services Copy inpatient ID, physician Enter data to Admit and & orders, assign bed scripts, insurance card, update EMR in HIS deliver treatment lab results, etc. Print wristband on thermal printer Copy forms to Pull record from Collect hardcopy updates add to chart MR storage to medical history, signed consent to treat & HIPAA consent forms Pull preprinted forms Archive Begin to medical records compile chartCollect external diagnostic Imprint hospital documentation blue card Print face sheet © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 65. $ Labor cost hours FTE//patient 1Value proposition Enabled by pull print, doc Enabled by $/hour FTE cost 2Future State: Patient admissions capture & automation & ECM EMR Admit Workflow Print, Wristband, label, Data Entry Pre-Printed Pre Admission/Storage EMR Accessed Doc Capture Data Entry blue card Retrieval Packet printed Forms 5 6 Admitting picks up Admitting picks up Pre –admission 0 1 2 3 4 Patient labels from Patient Wristband scheduling, bed Wristband Printer from Wristband assigned Patient is admitted Pre-Printed forms Printer Admissions Admissions Admissions into HIS system & collected per personnel pulls advocate personnel Complete diagnosis per patient record authenticates populate 0 0 0 0 .50 30 Admissions packet insurance coverage from EMR, patient at MFP and (type) EMR prints on MFP: and other situations updates history scans all w/patient 0 0 15.00 eForms, face sheets, and placed into via tablet and patient update & wristbands and record signs all forms documents admits patient labels digitally directly into into HIS workflows .25 40 .16 40 0 0 .08 40 0 0 8 7 Offsite paper chart 15 6.40 0 3.20 0 Addressograph Admitting picks up storage/retrieval embosses blue card – face sheets from required per admission picked up by admitting Printer for 7 yrs aduls, 20 yrs Scan to workflows Admissions packet Collection of forms child. on MFP GUI printed that become 0 0 0 0 0 0 obsolete and E-admit Data entry lengthen revenue 0 0 0 cycle 0 hrs per patient ~.5 hours/patient $0/patient ~$15.00/patient ~.5 hour per patient per 4 day stay ~$ 24.60 per patient ~1.0 hours per patient per 4 day stay ~$ 39.60 per patient (~62% in-hospital, ~38% pre admit & post discharge) vs. ~$68.50 per patient in current state Patient Chart retrieve from storage &deliver to Admissions Results: Following Collect docs & insurance then copy, courier or fax 42% DECLINE IN COSTS Processes EMR Data Entry of patient updates CUT TIME TO ADMIT IN HALF handled by Pre-Printed forms stored and collected during admit, • Key cost driver: Manual Paper Processes ECM or requiring periodic audit of forms on hand for obsolescence • Result in human error/adverse event reduction eliminated: Blue Card creation and embossing of forms and ID bands • The right info is at the right place at the right time, saving lives! Multiple devices each printing one thing: wristbands, l • Pre-Printed Paper forms that turn obsolete delay claims abels, face-sheets, blue cards consolidated to one MFP2. Source – Forrester Total Economic Impact of Perceptive ImageNow, April 20083. Sources – ROI Case Study, ImageNow at Citizens Memorial Healthcare by Nucleus Research © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 66. High level solution –HP patient admissions automation Smartphone Electronic Portal Medical Record HP Business Intelligence Solutions 4. Hyland OnBase Repository HIE Health Information Exchange Patient Accounting Fax email System/Revenue Cycle Patient referral documents, test results, imaging, consent forms, HIPAA Once scanned automated workflows based on rules based logic, willforms may also be faxed , emailed, sent to the automated workflow via direct information to the EMR, BI System, Patient Accounting as portal or smartphone prior to admission 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
  • 67. High level solution – HP in-patient documentation (On Premise and SaaS) Patient Documentation Route HR, AP, Admissions, Nursing Station, Electronic Content Medical Records, ER Management (Hyland OnBase) (Hyland OnBase) Tablet MultiFunction printer w/ automated workflows based on authentication w/HP Access Control 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
  • 68. Patient Documentation LifecycleBusiness process high level flow Admissions Discharge Process Clinical Workflow Hospital B/O• Patient documentation DL, Ins Card, Referral Manage• Forms processing – HIPAA, proc consent…• Scheduling Deficiency Electronic Operational• Admission packet creation – face sheet, Longitudinal Access Data store wristband, forms, labels Health Record Reporting Signatures Notify Real-time analyzed data OnRamp and Real-time data Off-Ramp Admissions Clerk/Nurse Pt. Claims Clinician Smartphone Capture Validate Collaborate Integrate Hospital Tablet, Back-end Systems Signature Pad HP MFP Format Workflow Real-time for Scanning Verification management EMR Integration LAN/Analog Fax (from Phys Ofc) Hyland/KOFAX? HIS Image capture, Backend enhancement Validation Real-time CRM Clinical Decision Integration EMR Support Patient ID Real time HIS ERP Referring Applications MFP Physician Integration Data extraction CRM Data Enrichment eForms Real-time AP/AR Legacy Integration Multi-Channel Shared services Admin HPAC Operational Reporting tool Audit Trail Utilities For Security Data storage © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 69. Solution offer/pricingHP patient documentation/admissions solution Customer Profile • 2000 FTEs/350 hospital beds etc. Devices • Workgroup & Dept MFP CM3530,HP ScanJet 7000 PC attached • HP Access Control Example reference price • Slate (WebOS) 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 Price: $2.01M • Hyland – $550K, Capella – $250K, HPAC – $250K , Hardware $969K • Incl. sw license, installation, training and one year maintenance69 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 70. Solution offer/pricingHP patient documentation/admissions solution Customer Profile • 4000 FTE‘s/700 hospital beds etc. Departmental/Enterprise Devices • Workgroup & Dept MFP, HP ScanJet Scanners Example reference price • HP Access Control, Slate (WebOS) 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 Price: $4M: • Hyland – $1.1M, Capella – $500K, HPAC – $500K Hardware $1.9Mncl. sw license, installation, training and one year maintenance70 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 71. Solution offer/pricingHP patient documentation/admissions solution Customer Profile • 12000 FTE‘s/2100 hospital beds (IDN). Departmental/Enterprise Devices • Workgroup & Dept MFP , HP ScanJet Scanners Example reference price • HP Access Control, Slate (Web OS)) 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 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 maintenance71 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 72. Value Proposition – Sentara healthcareoffer presents a $22.25 MM savings opportunityEconomics for healthcare provider (e.g., Sentara Health) per patient ($) Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM300 Key assumption:250 HP can capture ~78% of the value released by the offer200150 $193 ($193) with full automation of paper processes in100 $248 Admissions, ED, Patient Care, Medical Records and50 Discharge $55 0 Current cost per patient Value released by offer Future cost per bid packetSentara Health Benefit Summary ($22.25 MM Total) 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% © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 73. Market opportunity: Healthcare industry analysisBusiness 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 74. Xerox/ACS: Patient care documentation Software Professional Services Delivery Capability Partnerships/Capability Capability Key Customer Wins• On-site solution: End-to-end • DocuShare and DocuShare • Xerox and ACS both have in- Healthcare/Hospital Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM capture, workflow, archiving, CPX are owned content house professional services • White Memorial Medical Center retrieval and customization. management platforms that teams Structured to meet compliance enable capture, collaboration, • Combined DocuShare with • ACS‘s advisory services span – needs – HIPAA and JCAHO workflows, archival and Aquifer and Nile Pharmacy hospital-wide assessments, retrieval and Xerox MFPs to scan &• Cloud-based solution: clinical transformation, manage patient files and • Host of partners across the readiness assessments, end-to-• Recent acquisition of Credence medical records. Claims to patient care documentation end revenue cycle assessment, Healthcare Inc, provider of have saved as much as process for scan, capture and RHIO assessment, modeling software that captures and $200,000 per year on storage workflow – Ex: Aquifer EHD and planning analyzes patient data fees & admin. Costs Edition from WaterWare • Case studies indicate that• ACS has a strong presence in Internet Services – allows Healthcare (ACS) Xerox performs a government and commercial hospitals and medical clinics to comprehensive evaluation of • Mater Dei Hospital healthcare sector – acquisition gather & organize patient the workflow & integration of (Government of Malta) of Midas in 1998 provided information the proposed solution • Deployed laboratory and capabilities around data • ACS offers transactional BPO, radiology information systems; mining and analytics through IT infrastructure management, and a picture archiving and the MIDAS+ software suite analytics systems, advisory communication system.• ACS has long history of services and application Integrated with existing patient acquisitions and partnerships in services across the healthcare administration system. healthcare sector* industry Partnered with iSoft and GE Healthcare using their software for the new digital systems * See backup for list of ACS acquisitions in healthcare sector74 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 75. Lexmark/Perceptive: Patient care documentation Software Professional Services Delivery Capability Partnerships/Capability Capability Key Customer Wins• Lexmark‘s on-premise healthcare • Perceptive has specific partners for Lexmark’s in house consultative Healthcare Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM solutions span patient admissions the healthcare sector – example: division provides: • Genesis Health System to forms on-demand and scan to IPeople, provider of HIT • Discovery programs medical records. Includes owned integration, solutions and • Needed centralized forms software – Document Distributor professional services to the • Solutions Development and management for patient for routing & Document Producer MEDITECH industry Integration registration; Lexmark conducted for forms creation thorough evaluation and • Lexmark’s solution involves print • Systems Engineering Resources implemented a solution consisting• Perceptive offers automated fleet rationalization and routing Perceptive also has a professional of laser printers, Lexmark patient scheduling & registration software (Lexmark Document services team that provides: Document Producer for forms as well as health information Distributor) – the solution is creation and Document Distributor management for patient hardware-centric • Business Consulting for routing. Claims that print times information • Perceptive’s solution is based on • Environment Consulting for an entire patient packet• Perceptive ImageNow platform ImageNow and emphasizes the dropped from 90 seconds to 30 • Deployment Methodology conforms to IHE standards & platform’s ability to provide HIPAA seconds – improvement of 66% integrates with a number of HIS privacy compliance – this is more • RIM Consulting Healthcare applications of a software-based solution • Perceptive‘s partner network also • Anderson Hospital• Solutions seem to be SMB-centric includes industry-specific partners & do not have SaaS option for integration and consulting • 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 record75 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 76. Ricoh: Patient care documentation Software Professional Services Delivery Capability Partnerships/Capability Capability Key Customer Wins• Ricoh offers healthcare • Ricoh provides the hardware, • Owned professional services Healthcare Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM solutions for medical claims and acts as a reseller of partner capability mainly through IKON • Premier Purchasing Partners forms, patient documents and capture, routing, workflow and • Fills gaps with regional SI (healthcare purchasing medical records documents content repository software partners that may be aligned to network)• Solutions are a combination of • IKON also acts as reseller for specific verticals • Contract is focused on the Ricoh hardware and partner several document workflow software conversion, management and software products including: archiving of paper to electronic• Ricoh is effectively a reseller Documentum, KnowledgeLake documents (mainly forms); Capture & Imaging; Kofax,• IKON caters to SMB clients document imaging needs; and Nuance, OpenText etc and is centered around on-site & off-site management document services leading to • Ricoh has specific business process of print shop functions pure-play MPS contracts automation partners that cater to forms processing and business• DocumentMall provides SaaS process management. Example: solution for forms Appian is a strategic partner processing/distribution – that provides a suite of however not specific to vertical components for process, rules, forms, content management, reporting, identity management, integration & collaboration76 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 77. Canon: Patient care documentation Software Professional Services Delivery Capability Partnerships/Capability Capability Key Customer Wins• Canon‘s on-premise • Partner with EMC Captiva for • In house consultants for None available Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM healthcare solutions include distributed capture and EMC assessment, implementation, capturing and storing Documentum deployment, training and medical records ApplicationXtender for support electronically; facilitating storage and retrieval • Acquired PS from Océ but HIPAA compliance through • No evidence of integration mainly in commercial & restricted access and with other healthcare production space sending; as well as applications/systems automated document • No evidence of specific distribution • No evidence of partnerships system integrators for for business process healthcare sector• Canon also offers automated automation patient test analysis and reporting• Solutions combine Canon imageRUNNER Advance scanners and partner capture and content management systems77 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 78. Competitive benchmarking:Patient care documentation Business • Xerox‘s portfolio is the most Working Draft – Least Modified 11/11/2010 15.02 AM Printed 9/3/2010 12:41:04 AM Intelligence comprehensive thanks to business intelligence capabilities SaaS from ACS • Lexmark has the core components to provide patient Professional Services care documentation solutions They have capture and route built into the hardware –Integration w/ however they their focus remains EMR app SMB and NACustomization Retrieval Archiving • Ricoh and Canon can do the Capture, Route, Archive and Routing/ Workflow Retrieve but cannot articulate the end to end solution well Capture Xerox Lexmark Ricoh Canon MES/MphasiS High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence) Thru DocumentMall but no vertical focus © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 79. 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) * This is only won MPS customer footprint. Note there are many other opportunities in funnel that we will target – See speaker notes79 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 80. 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 * Note that these are accounts where we have MPS opportunities and/or Distributed Workflow Solutions opportunities in the funnel80 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 81. Insurance policy issuance andclaims processingJoe WagleWW FSI MDC © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 82. 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 Footprint82 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 83. Policy issuance business problem definition 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 83 contained herein is subject to change without notice. Confidentiality label goes here
  • 84. Claims business problem definition 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 sectors 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 84 contained herein is subject to change without notice. Confidentiality label goes here
  • 85. Target customer profile Director of Director of Director of Policy Policy Services Claims Services Distribution ―I want to accelerate and automate our ―I want to increase the efficiency with ―Increase claims service staff processes for getting policies issued. I which we service policies, and process productivity to improve the need to increase the speed of new changes to policies and renewals. Cost policyholder experience. Automate policy setup and policy servicing & time need to be reduced‖ paper intensive workflows to improve cycles‖ claims efficiency‖ Underwriting New Business Agent Operations Media/Library Heads ―I need to underwrite and Issue ―I need to scale the new policy ―I want to empower agents to spend policies more quickly, more efficiently business and provide a compelling less time with paper, and more time and at lower costs in time and customer experience that creates new with prospects. Increase the speed of resources. Help me underwrite smarter leads. I want to use technology to new policy setup.‖ and more profitably.‖ grow the business faster‖85 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 86. Insurance Claims Processing workflowBefore HP AVERAGE CYCLE TIME: 8–10 DAYS Processing requires 12 steps and costs $175–225 per claim.Customer/Agent files Claims Service Agent Request additional Route claim folder Claims review FNOL with carrier enters data into system claim documents to claims supervisor and Decision Process, tag, and enter Sort work by LOB, Claim payment Create and send Print Claim claim document data channel and profile and/or notification acknowledgement Checklist (AK) letter Create Claim folder File checklist, FNOL and AK letter © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 87. $ Non-labor expense hours FTE/policy 1Value proposition $ Labor cost $/hour FTE costCurrent state: Life policy workflow and costs Underwriting and Inquiries and collecting Application Case management Processing and fulfillment issuing claimsNew business – Inforce – 7 $15 courier costs ~80% by courier 3labor costs labor costs Back-office processing to update ~50% by courier Pricing includes review of info or create simple change (e.g., Incoming 6 add beneficiary) 1 2 medical, risk assessments Handler validates 0 Review applications financial review and call center ~80% identity and 0.13 23 3 HQ mailroom (applicant situation, answers determining the premium or web Broker/agent retrieves customer receives docs to questions) inquiry 8 file application data Produce customer update, file and manually 0.08 25 and archive docs on-boards into 1 30 30 2.5 55 138 system 2 0.13 23 3 4 Exceptions Assemble policy docs after ~.34 hr/year (for ~15 years) 0.25 55 modification to risk and ~$8/policy/year ($120 for ~15 years) 14 coverage ~20% 100% ~50% rework 4 10 0 0.5 23 0.25 25 6.5 9 Request Validate Process claims – evaluate ~20% Broker files Call Online medical lab medical findings and make decision 11 5 complex center/handler application exams records 0.7 55 37 Create customer package and claims (e.g., routes claim and Collect docs and disability and docs (e.g., tests) send back to broker or place 11 file electronically death) on secure site 0.2 25 Fulfill claim – make payment and 4 file for future processing 135 0.25 25 6.5 0.5 23 12 n/a Claims – ~4.5 hours per policy labor costs ~1.3 hours per policy ~$ 206 to issue a policy ~$52 claim cost per policy Courier Fees ~$15 per policy 4 IT costs ~$10/policy/year 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 Current state costs ~$378 per policy loaded, w/o OH allocations $15 per policy courier costs 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 analysis87 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 88. Value propositionSuggested offer addresses key pain points in the current process Inquiry and Processing Case Underwriting Application claim and management and issuing collection fulfillmentFROM current state… HP offer details • Scan and digitize all incoming docs• Receive substantial • Manual doc • Send policies issued • Docs received • Manual filing, and • Conduct OCR, if necessary, on docs to volume of documents assembly and time back to brokers using through multiple archiving of extract relevant information from brokers via wasted locating courier service channels need to be supporting docs courier services misclassified digital manually filed by the relating to service • Check for errors in information • Multiple asks to extraction and correct them• Delays in physical and physical docs retrieve customer claims handler and claims (e.g., in folders) • Automatically remind agent and/or on-boarding and docs • Call back agent or • Inability to use applicant to send required docs scanning at HQ • Ask broker of • Face delays in customer in case of already collected mail room affect customer to resend or preparing missing documents information for cross • Index, tag, and file documents by cycle time send additional docs sell customer and request modifications and • Assemble all docs into one package customer packages when complete for review and flag the workflow when the package is readyTO future state… for review and underwriting • If any doc expires (due to life time• No work to receive, • Review application • Have automated print • All docs already • All docs limits)) request new docs scan, file, or only once when all for customer policy filed, stored, and automatically filed organize documents necessary docs have packet backed up with on- and archived • Assemble docs on-demand based on been received demand access for insurer workflow request type• Required data • No need for courier • Use all information the handler • Ensure DRM on data stored already in the SW • Complete doc deliveries back to available for solution package ready for agent/broker • Be assured of customer in any • Destroy documents based on rules and case management completeness of customer touch defined regulations• Be assured of quality incoming docs • Provide authentication, security, and of incoming docs identification on access • Provide real time search and retrieval to speed up customer service across all touch points Offer addresses key pain points and presents opportunity to reduce processing time by 15-20% SOURCE: Industry interviews, Mortgage Bankers Association, Team analysis Detailed flow follows88 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 89. Insurance Claims Processing workflowAfter HP Claims Transformation Solutions CYCLE TIME REDUCED TO 5 DAYS PROCESSING COSTS REDUCED BY 45% SYSTEM AUTOMATICALLY • Creates and sends acknowledgement letter • Prints claim checklistCustomer/Agent files Claims Service Agent Digitally route claim folder Claims review FNOL with carrier enters data into system. • Creates claim folder to claims supervisor and Decision • Files checklist, FNOL and AK Digitally request and process AUTOMATED WORKFLOW Claim payment additional claim documents • Sorts work by LOB, channel and/or notification and profile © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 90. INSURANCE POLICY PROCESSING $ Non-labor expense hours FTE/policy 1Future state: $ Labor cost $/hour FTE cost 2Offer can release ~$61 per policy Enabled Inquiries andthrough Application Enabled Case Underwriting Processing and management and issuing collecting Repository & claims fulfillment through New business – document Exstream 100%courier & 0$ reduction Inforce – 7 labor costs capture $15 savings costs 3 Pricing includes review of medical, labor costs Back-office processing to update info or create simple change (e.g., add Incoming call 6 Handler validates risk assessments financial review beneficiary) 0 1 2 center or web identity and retrieves ~80% Review applications (applicant and determining the premium .2 hr & $.5 labor situation, answers to questions) inquiry customer data 0.11 23 2.5 Broker/agent file HQ mailroom reduction application receives docs and 8 Produce update for customer and file manually on- 0.08 25 .1 hr & $3 labor .2 hr & $11 labor and archive docs boards into system .9 30 reduction 27 2.3 reduction 127 55 2 .2 hr & $.5 labor 4 0.11 23 reduction 2.5 Exceptions Assemble policy docs after 0.25 55 modification to risk and coverage ~.3 hr/year (for ~15 years) 14 ~$7/policy/year ($105 for ~15 years) ~20% 100% 10 6.5 9 23 0.3 & $4.1 .2 hr 0.25 25 Broker files Process claims – evaluate findings and 0 ~20% Request Validate Call center/handler Online labor reduction medical lab medical complex claims routes claim and docs make decision 6.9 .2 hr & $9 labor application exams records 5 (e.g., disability (e.g., tests) 0.5 55 28 Create customer package and send and death) reduction Collect docs and file back to broker or place on secure 11 electronically 0.2 25 site Fulfill claim – make payment and file for future processing 4 .2 hr & $5 labor 135 0.25 25 6.5 0.3 23 reduction 7 n/a Claims – ~4 hours per policy labor costs ~1 hour per policy ~$ 188 per policy ~$39 claim cost per policy Relevant IT costs ~$10/policy 4 Future State labor costs ~$332 per policy ($46 per policy) 1. Times refer to labor touch time processing the policy and not cycle time Eliminate $15 per policy-courier costs 2. Source – McKinsey Life benchmarking with companies that are MetLife peers; assume 2000 hours/year and all costs Unlocking per policy in new labor & courier savings ~$61 fully loaded, w/o OH allocations 15% application cost reduction (labor + courier) 3. Sources – McKinsey Life benchmarking with companies that are MetLife peers and interview based triangulations 13% servicing cost reduction (labor only) 4. Includes IT costs ($10); courier fees ($15) are addressed by future state and taken out; does not include other fees (e.g., 25% claims reduction (labor only) medical fees) SOURCE: Industry interviews, McKinsey Life Benchmark survey, Team analysis90 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 91. High level solution – Insurance claims91 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 92. High level solution – Policy issuance92 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 93. Reference architecture for insurance claimsdoc capture Manage HP SDS for Operational Business Activity Billing/ Dash board BI Analytics SLA tracking/ Data store Monitoring Metering Op. monitoring Supervisor Notify Real-time analyzed data Channels Real-time data Agent Approver External Print Services Capture Validate Collaborate Integrate Output/ Off-site Service PSP Claims CRD Bureau Correspondence Agent Branch Distributed/ Validate customer Claims Workflow Claims System Notifications Office Centralized and policy Integration Integration Customer Scanning Back-end Claim gate LOB/Skill based Policy Admin Systems KOFAX/Hyland Status Updates checks Queuing System Integration For Image Claims capture, enhancement Missing document Document End Follow-up Requests Policy Customer Claims Claim CRM Indexing Processing Disposition Broker/Agent Mail Shared services Admin room Scanning Account, Audit, HP TRIM Output Reporting tool Audit Trail Authenticate, Authorize for DMS Server Operational Data storage93 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 94. Solution offer/pricingPolicy issuance and claims processing 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% Services94 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 95. Value propositionMetLife account economics: Offer presents a $20 MM opportunity Economics for insurance provider (e.g., MetLife) per life policy ($)400300 46 Key assumption: HP can capture ~50% of the value200 378 332 released by the offer ($59), e.g., assume100 $23 per policy with the rest captured by 0 the customer Current cost per policy Value released by offer Future cost per bid policy MetLife account opportunity ($ MM) 400 326 300 19 200 364 38 100 19 0 1 2 3 Total policy processing spend Spend not addressed by offer Spend addressed by offer Value released to customer Revenue opportunity 1. 12.6M insurance policies 2. Spend on non-document processing activities SOURCE: Literature search; Team analysis95 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 96. Market opportunity: Insurance industry analysisBusiness imperatives for insurance companies, challenging the oldInsurance 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 97. Competitive differentiation: Insurance policy andclaims processingPrint/Imaging • ES/Mphasis Doc outsourcing Devices offerings Distributed • Kofax partners Capture Centralized Capture • Hyland Onbase is our only Document software offering hereManagement • ES/Mphasis Doc outsourcing offerings Workflow Document Composition • Beware Lexmark & Xerox hereMobile Printing • Exstream provides Integrations forIndustry Focus their platform • Partner solutions have their ownIntegrated with connectors delivered by partners Core apps or Mphasis Xerox Lexmark Ricoh Canon HP MES High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence) © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 98. Competitive landscapeXerox/ACS: Insurance industry solutions Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Global offices and delivery • ACS can deliver and • Xerox and ACS both have • Deep Insurance expertise • Health Insurance centers – strategic support key ECM offerings in-house professional at ACS Strong services • Regence, a leading health alliances enable global including OpenText, services teams connect with Claims and insurer with more than 2.5 reach Documentum, FileNet • ACS‘s acquisition of Policy Servicing workflows million members in the• Document capture and • Xerox SMARTsend is a Systech Integrators (2006) • No Vertical focus on Northwest and policy processing complete document added focus on SAP device and infrastructure Intermountain Region of delivered from near- capture, conversion and consulting services – software (fully applicable, the U.S., partnered with shore/off-shore locations – routing solution added offshore consulting just no industry marketing Xerox to reengineer its courtesy ACS • Xerox DocuShare™ capabilities or depth) Explanation of Benefits• Through ACS, Xerox can enables document • ACS provides integration (EOB) documents. offer completely outsource management, capabilities with major ERP Transforming the EOBs claims collaboration, review and systems improved information approval, and Web clarity, reduced calls to publishing ―DocuShare Customer Service, provides a complete end- enhanced member loyalty to-end document and helped differentiate management solution from Regenc a single • A leading U.S. insurance • trusted vendor.‖ company redesigned its • Partner distributed capture billing statements to offerings: eliminate customer – eCopy ShareScan® confusion, build customer Suite™ 7 loyalty, and facilitate cross- – iXware 8 selling – Nuance ScanFlowStore™ • es brand 10 – Omtool Accuroute® 12 – Open Text Fax Server, RightFax Edition98 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 99. Competitive landscapeLexmark/Perceptive: Insurance solutions capability Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• On premise & SaaS • Touting Industry-specific In house consultative division • Financial Services AmFed solution document capture, providing: • Perceptive is string in mid- • Claims & Benefits management and• Customizable workflows • Discovery programs sized Insurers, Management, workflow solutions. Underwriting, Utilization• Indicates worldwide but • Solutions Development and • While there is a reference • *ImageNow provides Management likely to be North America Integration to Insurance claims in their unified and Europe centric device solutions, there are • AmFed is the largest environment/platform for • Systems Engineering no insurance solutions provider of insurance and• Perceptive is the IP and document management Resources described insurance-related services solution arm – however workflows/processes • Perceptive industry-specific in Mississippi NA centric. Lexmark will • Healthcare • Scanning America partners partnerships also includes need to leverage presence Braishfield Associates with Perceptive Software to consulting in some • State Government in other geographies to provide backfile & day- regions/countries • Accounts Payable & scale delivery/offering • Retail forward scanning services. Finance, Billing & • Integration with ERP • Mfg & Distribution Collections, Claims & systems and financial Benefits Management, applications, as well as • Hospitality Underwriting legacy applications • Telecommunications • ImageNow supports Braishfields intricate, 125- queue workflow system in the underwriting, accounting, data entry and customer service departments without disrupting existing processes99 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 100. Competitive landscapeRicoh: Insurance solutions capability Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Largely Europe and • Ricoh Globalscan is • Owned professional • Lack of Insurance • Ricoh increases NA centric their in-house capture services capability specific solutions and insurance company‘s platform. Make up mainly through IKON services printing efficiency 85+% of their capture • No mention of Claims • With an existing host solution sales or policy Admin print vendor contract • RiSVP Capture system integration set to expire, an Software partners industry leading • Fills gaps with include: Nuance insurance company regional SI partners eCopy, Nsi Autostore was in search of a that may be aligned to & Omtool Accuroute, more affordable specific verticals Kofax printing solution • Leverages SI partners • Doc Mgmt services • ―Ricoh’s more to integrate automated partners include: EMC invoice process with comprehensive Captiva & approach to imaging ERP Documentum;; and output services is Interwoven, IBM, expected to save our Open Text, and company over Oracle (Stellent), $2 million per year.‖ • Leverage IBM relationship as access point for enterprise accounts100 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 101. Competitive landscapeCanon: Insurance solutions capability Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Mainly in Europe and • Nuance eCopy still a • In house consultants • Generalized FSI • No Insurance specific North America major capture partner for assessment, brochures, but no wins identified implementation, Insurance -specific• On premise only • Several software deployment, training solutions and services partnerships for OCR,• Owns imageWARE and support capture, archival, software – includes retrieval etc • Acquired PS from Océ document manager, but mainly in web document server, • For invoice processing commercial & scan manager, main partner is IRIS – workflow composer provides an automated production space document & • No mention of Claims information capture or policy Admin solution in Europe. system integration Canon also bought a 17% stake in the company101 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 102. Existing customer footprintTop insurance carriers by revenue MPS Trans SolsAllianz ($142B) X X XAssicurazioni Generali ($103B) X XAIG ($96B) X XAXA ($81B) X X XMunich Re ($68B) X X XNippon Life ($66B) XAegon ($62B) X X XState Farm ($61B) X XChina Life ($54B) XMetlife ($51B) X XCNP Assurances ($38B) X XSumitomo Life ($36B) XAviva ($35B) X XTokio Marine ($35B) XZurich ($32B) X X XManulife ($31B) X XNew York Life ($31B) XCathay Life ($30B) XAllstate ($30B) X XPrudential Financial ($30B) X X X102 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 103. Invoice processingMarie-Amélie Masnou © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 104. 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 Footprint104 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 105. Business Problem and Industry TrendsSource: Aberdeen Research – Cloud Invoice Management – January 2012 – Scott Pezza• 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 106. Target customer profile CFO A/P Manager LOB pain points pain points pain points • Visibility to cash flow • Invoice verification approval routines • Suppliers and vendors management • DSO • Invoice • Payment • Reports • Audits & Reports reconciliation authorization • Dispute and issue management • Control over invoicing process and • Late payment fees • Exception costs • Errors management • Rules and IT 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 • Down time hosted and Software-as-a-Service (SaaS) models, which • Help desk calls • Maintenance have lowered the upfront cost of implementing AP automation solutions and reduced the hassle of maintaining them significantly.‖ Source: © 2010 PayStream Advisors, Inc106 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 107. Accounts Payable for Manufacturing WorkflowBefore HP ON AVERAGE, THE MANUAL PROCESS TAKES 26 DAYS 9 copies, 6 people and costs $25 to pay an invoice Invoices Routing to Invoices Data entry, Forwarded Invoice Review Invoice Invoice Invoice Post & Release File and received Central Office received/sorted copying, to Accounting & Approval Verification Approval Accepted Invoice Store processing (Local Office) (Local Office) INVOICE SENT BACK TO SUBMITTER REJECTED ACCEPTED INVOICES RECEIVED FROM MAILROOM ACCOUNTING DEPT. COST CREATOR AUTHORIZER/ACCOUNTING DEPT. VENDORS AND SUPPLIERS • Paper Invoice received, sorted • Manual data entry of key • Invoice Verification (buyer/ • Invoice validated into back end finance system• 80% in paper-format and stamped with date of accounting information (e.g. local office) • Post & release payment• Received in various formats receipt PO number, amount), and processing (e.g., copies) • File & store (structured /unstructured) • Initial routing and processing depending on country of (e.g., copies) • Invoice Review & Approval origin and supplier • Invoice sent to Accounting Dept. – Reject—back to vendors – Accept—distribution to original buyer office for verification © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 108. OFFER 4: INVOICE PROCESSINGCurrent state: Invoice processing flow and costs Order placement Order receiving and processing Invoice receiving and processing Payment Accounts Payable Dept. of Buyer Purchase Payment Routing & Order Accounts Routing & Exceptions/ Routing & Procurement Invoice Receipt Order (PO) Approval/ Switching Processing Receivable Switching Research Switching Matching Origination Generate Transmit/ Receive Log P.O. Transmit/ Receive Collate in- Reconcile Review and Transmit and transmit deliver PO P.O. and into AR deliver invoices from voices with invoice and approve invoice and POs to to vendor match with system of Invoice to delivery PO and PO reconciled payment to vendors customer file record buyer channel goods invoices for vendor (USPS, received payment courier, documenta- email, etc.) tion Investigate Archive P.O. Input new Update Log invoice invoice ex- Settle copies with customer recurring data into AP ceptions with payments AP for info invoices system of Areas to vendor/pro- processing record go after curement Research Input order Generate Sort invoices missing PO‘s Current state details for invoice/ by order of invoice costs: production credit note priority/de- partment for ▪ $6-8 per invoice to Maintain buyer processing PO/ invoice ▪ $1.5 to $2 to seller archive 0.30-0.50 0.40-0.60 1.0-1.5 1.0-1.50 3.0-4.01 1.2-1.71 This cost can be higher for an invoice in investigation/research for incomplete/incorrect invoices (<5% of occasions)Source: Expert interviews, GCI data Buyer activities Seller activities $ $ Spend per step108 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 109. OFFER 4: INVOICE PROCESSINGSuggested offer addresses key pain points in the current process Invoice Order receiving Order placement receiving Payments and processing and processingFROM current state… HP offer details• Generation process needs • Paper invoices depend on • Paper based invoices • Multiple/duplicate invoicing • Receive and scan all paper manual input goods delivery receipts generating manual work create duplicate payments invoices collection, generating manual• Costs related to preparation • Highly manual, often leading • Delays lead to late/inaccurate and mailing of documents work to doubts on accuracy of data payments and poor • Intelligently OCR and capture • Paper invoices need to be compliance with negotiated important field data from all• Archiving POs and managing • High costs for processing and data is not streamlined, matched to customer records matching invoices payment terms paper invoices; intelligent manually making order tracking time • Missing early payment capture of all electronically consuming • Reconcilement documents do • Queries may be run in one or discounts more ERP systems received invoices not directly plug into single unique ERP system, generating • Tracking of information is • Interface with client systems to manual work often based on in-house extract PO information and knowledge that is not retained smart matching to invoice content to eliminate manual ‗triple‘ matching (3 wayTO future state… matching)• Orders transmitted via secure • Received orders automatically • Intelligent translation engine • Workflow status updates and electronic medium with receipt matched to customer record that recognizes all form types notifies authority upon invoice • Update correct invoices as notification to fully automate invoice processing completion ‗processed for payment‘ within • Data integration with capture• Automatic electronic backup automatic 3 way matching to • Single payment order issued customer workflow of PO with metadata tagging eliminate need for manual • Seamless back-end integration per invoice upon reconciliation to ordering systems to authorization • Flagg erroneous invoices for eliminate ‗matching‘ • On time payment ensuring no exception handing in customers late fees and securing early work flow system payment discounts Initial scope of solutionSOURCE: Industry interviews, McKinsey GCI database, Forrester research109 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 110. Accounts Payable for Manufacturing WorkflowAfter HP Automated Invoice Processing Solution THE AUTOMATED PROCESS CAN REDUCE PAYMENT CYCLES TO 2–4 DAYS AND LOWER PROCESSING COSTS BY 40–60% DOCUMENT CAPTURE INFORMATION EXTRACTION BACK-END SYSTEM INTEGRATION Invoice captured at source Information automatically extracted, validated and Automated accounts payable process routed into system workflow during capture and customer communications customization Invoices received from HP CAPTURE SOLUTIONS • Invoice verification and posting vendors and suppliers • Automatic data extraction and interpretation of • Consolidation of information key accounting meta data (e.g. invoice number, • Approval workflow and payment PO, amount…) • Automated posting • Validation of accounting information • Transfer of accounting data to back-end system © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 111. OFFER 4: INVOICE PROCESSING Steps touched by offer Buyer activities $ $ Spend per step Seller activitiesFuture state: Invoice processing flow and costs Order placement Order receiving and processing ERP workflow integrationand processing Invoice receiving Automatic Payment with electronic match reduces error Accounts Payable Dept. of Buyer and speed up process, reducing processing time Payment Routing & Accounts Routing & Purchase Order Exceptions/ Routing & Procurement Order Processing Invoice Receipt Approval/ Switching Receivable Switching (PO) Matching Research Switching Origination Generate and Transmit/ Receive P.O. Log P.O. into Transmit/ Receive Develop Electronically Review and Transmit ERP workflow integration transmit POs deliver PO to and match AR system of deliver Invoice invoices from electronic reconcile approve invoice and to vendors vendor with customer record to buyer delivery match invoice and with electronic reconciled payment to file channel between PO PO reconciliation speeds up invoices for vendor (USPS, and e-copy payment invoice processing courier, of invoice • OCR reduces manual key entry and email, etc.) avoid large teams workload dedicated to information entry • Scan + OCR reduces/removes costs of sending papers Investigate Archive P.O. Input new Update Scan and invoice ex- Settle copies with customer info recurring OCR invoice ceptions with payments AP for invoices into repository vendor/pro- processing curement, research PO WHY is there a saving? • Eliminate the cost of sending papers back and forth to Update status ▪ Future state: Buyer Assign priority in workflow central shared services Input order Generate through rules- spends ~$6 on invoice details for invoice/ • Less people involved, less labor, less errors, less rework production credit note based ▪ $2 savings in labor • Speed up process means better cash flow management, processing corresponding to 25% Maintain PO/ early payment discount invoice e- or higher savings archive 0.30-0.50 0.40-0.60 1.0-1.5 21 1.2-1.7 1 This cost can be higher for an invoice in investigation/research for incomplete/incorrect invoices (<5% of occasions) SOURCE: Expert interviews, GCI data111 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 112. High level solution DOCUMENT CAPTURE INFORMATION EXTRACTION BACK-END SYSTEM INTEGRATION Invoice captured at source Invoice captured at source Customer developments and customization, and automated accounts payable process VALIDATE ROUTING EXTRACT ACCOUNTING AND META DATA DIGITIZE INFORMATION WORKFLOW • MFP Scanning HP CAPTURE SOLUTIONS • Invoice verification and posting • HP Scanners • Consolidation of information • Automatic data extraction and interpretation of key accounting meta data (e.g. invoice number, PO, • Approval workflow and payment amount…) • Automated posting • Validation of accounting information • Transfer of accounting data to back-end system 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 systems112 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 113. Reference architecture for invoice processing Manage Operational Business Activity HP SDS for SLA tracking/Op. Data store Dash board BI Analytics Monitoring monitoring CFO Notify Real-time analyzed data Real-time data A/P Approver Customer Back- Channels Capture Validate Collaborate Integrate end Systems Suppliers office Distributed HP MFP , Invoice format Real-time Workflow EDI centralized HP and ERP Management, Integration scanners amounts/content alerts, exceptions for Scanning verification Batch handling Integration CRM Image capture, Backend Validation (P.O. Queue Payments cleanup, MFP/Scanner etc) management authorization Legacy enhancement, routing Data entry Approvals, correction and suppliers portal Others Data extraction, validation indexing Mailroom scanning Mail Admin/IT Services Operational Authenticate, Authorize Reporting tool Audit Trail HP Trim for DMS Data storage113 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 114. Solution offer/pricing – Solution on premise 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% Services114 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 115. OFFER 4: INVOICE PROCESSINGValue propositionEconomics: Offer presents a $1M revenue opportunity for HP at typicalcustomer processing 1M invoices annually Economics for Buyer per invoice ($)10 2 5 8 6 0 Current cost per invoice Value released Future cost per invoice Example Invoicing spend and HP opportunity ($M) with 1M Invoices 10 8 6 4 6 8 2 1 0 2 1 Total current invoice Spend not addressed Spend addressed by Value released to Revenue oppurtunity processing spend by offer offer customer 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.115 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 116. 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 117. Competitive landscapeXerox/ACS: Invoice processing capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Global offices and • DocuShare CPX • Xerox and ACS both • Offered across verticals, Transportation delivery centers – software application have in-house including: First Group of America strategic alliances acts as enabler – professional services – Healthcare Scanning, data capture, image enable global reach integrated with Kofax teams – Insurance processing & storage of accounts• A/P services delivered invoice capture & • ACS‘s acquisition of – Manufacturing & payable invoices; claim to process from near-shore/off- APFlo – automated A/P Systech Integrators Distribution about 19,000 invoices per month shore locations – workflow solution from (2006) added focus CDIT Inc. – Retail Retail courtesy ACS on SAP consulting • May also choose to use services – added – Telecom Office Depot• Through ACS, Xerox can offer completely other capture/workflow offshore consulting – Transportation Expanded contract in 2006 to cover outsourced invoice products such as, Top capabilities – Banking 86% of Office Depot‘s receivables processing – 98% of Image Systems‘ eFlow • ACS provides • NelsonHall estimates that portfolio; claims to have reduced process owned by Invoice Reader integration capabilities ACS processes 40mn invoice processing from several weeks ACS, 2% owned by • Ability to turn invoices with major ERP systems invoices per year in to hours client into advertising vehicles education and healthcare Manufacturing• Looking to introduce - courtesy PlanetPress insurance sectors Western Forest Products software-enabled Suite from ObjectifLune. BI engine? Scanning, capture, image processing & BPO/DPO offerings – storage of invoices; combines unsure of progress • Can detect DocuShare CPX, AP-Flo from CDIT and with regard to invoice discrepancies & put in Kofax; estimate cost savings of processing ―failure queues‖ – $20,000 per month powered by ACS Workflow, owned solution117 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 118. Competitive landscapeLexmark/Perceptive: Invoice processing capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• On premise & SaaS • Invoice Processing In house consultative • Financial Services Mfg. & Distribution: solution solution combines division providing: • Healthcare • 20:20 Mobile Group• Customizable Lexmark hardware & • Discovery programs • State Government Accounts Payable; Integrated with workflows Perceptive ImageNow • Solutions Development • Retail JD Edwards OneWorld app.• Indicates worldwide platform and Integration • Mfg & Distribution • Ben E. Keith Company but likely to be North • Systems Engineering • Hospitality Accounts Payable; Integrated with America and Europe • Perceptive has industry- • Resources • Energy & Utilities (Lexmark PeopleSoft centric specific partnerships. Ex: Brainware for • Perceptive industry- hardware & doc distributor Healthcare:• Perceptive is the IP intelligent data capture specific partnerships software integrated with Cedars – Sinai and solution arm – • solutions in accounting also includes FileNet capture; hardware however NA centric. Invoice processing; Integrated with & financials industry consulting in some also has embedded Kofax Lexmark will need to PeopleSoft regions/countries. Ex: DES client and integrated leverage presence in • Mercy Medical Center Optim2 in ANZ for with Kofax Doc Exchange other geographies to • *ImageNow provides Accounts Payable; Integrated with financial-related back Server) scale delivery/offering unified Meditech & Mysis Vision apps office functions • Telecommunications environment/platform for document • Integration with ERP Energy & Utilities: systems and financial • Deep Marine Technology management applications, as well workflows/processes Accounts Payable; Integrated with as legacy applications Microsoft Dynamics SL • Aqua America, Inc. Accounts Payable; Integration with Lawson Financials118 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 119. Competitive landscapeRicoh: Invoice processing capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Largely Europe and • Ricoh provides the • Owned professional • Publicly announced invoice Manufacturing NA centric hardware, and services capability processing/i-invoicing wins • Mammoet• On premise – accounts combines with partner mainly through IKON have been across Scanning, data capture, routing & payable solution capture, routing & • Fills gaps with regional manufacturing and storage of accounts payable invoices;• Fully outsourced – workflow software to SI partners that may postal/parcel services Ricoh combined with ReadSoft and invoice production deliver on premise be aligned to specific • Likely that invoice CTAC (Dutch IT service provider – offered mainly in invoice processing verticals processing offered across customization of invoices to integrate Europe automation • Leverages SI partners verticals however this is not with SAP ERP)• SaaS A/P – through • Accounts Payable to integrate automated explicit in Ricoh‘s industry partners include: EMC invoice process with solutions brochures Manufacturing DocumentMall using Captiva & ERP • Mammoet Karora App Connector Documentum; Kofax; i-invoicing solution; production of Interwoven, IBM, Open invoices & statements at Ricoh‘s• i-invoicing solution – Text, and Oracle external print facilities; claims to have takes manual process (Stellent), ReadSoft, cut time-to-invoice by 4 days and cut and over 3 years Basware (Ricoh acts as production costs by 20% helps customer reseller) migrate to electronic invoicing. Not • Leverage IBM automation (?) relationship as access point for enterprise accounts119 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 120. Competitive landscapeCanon: Invoice processing capabilities Software Professional Services Delivery Capability Partnerships/Capability Capability Vertical Focus Key Customer Wins• Mainly in Europe and • Several software • In house consultants • No specific verticals Real Estate North America partnerships for OCR, for assessment, targeted for invoice • Customer name: NA• On premise only capture, archival, implementation, processing Worked with Canon Professional• Owns imageWARE retrieval etc deployment, training • Success stories show that Services to implement solution; software – includes • For invoice processing and support solution is available for a customer installed imageWare scan document manager, main partner is IRIS – • Acquired PS from Océ variety of verticals such as, manaer, imageWare document web document server, provides an automated but mainly in real estate/property manager and Canon hardware scan manager, document & information commercial & management workflow composer capture solution in production space• No Europe. Canon also • No mention of ERP specific/articulated bought a 17% stake in integration solution with regard to the company automated invoice processing although it is mentioned as a capability120 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 121. Competitive differentiation:Invoice processing capabilities Business • Gap in competitor Intelligence offerings around SaaS SaaS and business intelligence • Emphasis around these Professional capabilities will create Services differentiation for MES offeringsIntegration w/ ERP • Competitors areCustomization equipped with basic component of invoice Retrieval processing • ―Vanilla‖ offering Archiving • Many overlapping Routing/ partners Workflow • MES will not be able to differentiate around these Capture parameters/facets Xerox Lexmark Ricoh Canon MES/Partners High Capability/Presence (Owned) Medium Capability/Presence (Partner owned) Low Capability/Presence (No evidence)121 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 122. Existing customer footprintTop Discrete Manufacturing Top Automotive CompaniesCompanies based on their $ sales MPS Trans Solutions based on their $ sales MPS Trans SolutionsGeneral Electric X Toyota Motor Corporation X XSiemens X Volkswagen A.G.Hitachi X General Motors XBASF X Ford Motor company XTHYSSEN KRUPP AG X X Daimler AG X XTATA Group X Honda Motor Co., Ltd. X X XMitsubishi X Nissan Motor Co., Ltd. XCaterpillar X FIAT XPhilips X PSA Peugeot Citroën S.A.APPLE X BMWINTEL X Robert Bosch XABB XAnglo American Corp. Hyundai Motor3M Renault S.A. X X X XJABIL Circuit X Chrysler Group Bridgestone Corporation XOther companies to consider MPS Trans Solutions SAIC (Shanghai Auto IndustryNestle X X X Corp)Lufthansa Magna International Inc.Wal-Mart GoodyearViacom Delphi Automotive, LLPAlcatel Porsche Automobile Holding SENATOUGAPAdventist HealthSara Lee © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 123. Success Story:PETROBRAS, Brazil – Oil&Gas industry Challenge HP Solution Results • Customer was looking • HP Invoice Processing • Efficient distributed at a way to make their Automation Solution invoices scanning invoice processing more based on HP MFPs with HP MFPs under efficient and ReadSoft MPS • High number of invoices Software with • Automated and processed manually on customization efficient document paper throughout the • Running on190 HP workflow country MFPs, 125 locations, • Integration within • MPS contract renewal 95,000 invoices per MPS contract under way month, 1M+ invoices per year Total TCV: Software $301K – Capture, Extract & Route HP MPS $14.6M© Copyright 2011 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. Confidentiality label goes here
  • 124. New account opening acceleratorChuck Gowin © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 125. 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 126. Banking industry — Business drivers • Compliance changes are top priority for survival (ex. Dodd Frank & Basel III) Key facts • Economy slowly ramping up with mixed indicators for recovery • Innovation in product distribution and customer service Actively manage Differentiate customer Growth in competitive compliance requirements experience banking market• Measure Risk more effectively • Higher customer expectations for • Innovate the experience in• Improved data and document service levels, mobility, and branch, web & mobile channels security with process digitization, privacy • Product innovation- reaction to audit trail authentication, • Drive personalized content technology and customer encryption, archival through multiple and flexible expectations• Adapt to global ―sea-change‖ in communications channels • Regional and market focus for compliance requirements • Adapt to shifts in customer profitability• Meet demands for transparency demographic • Create and capture demand with • New approaches to growth innovative products markets © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 127. 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) © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 128. Target customer profile Chief Retail Branch Retail Marketing Banking Operations Officer Officer pain points pain points pain points • Must grow customer base • Current On-boarding costs • Abandonment rates • High Staff Turnover • Errors and re-work • Customer service scores & VOC • Regulatory Compliance • Fraud • Time-to-market for new products • Control • Compliance w/KYC & AML • Channel/product management • Rules and approval routines • Payment authorization • Exception management CIO/IT • Large Enterprises and SMB organizations with more pain points than 50 branches: ―The time it takes to enroll new and multiple accounts at financial institutions (FIs) is a barrier to effective and• Help desk calls efficient cross-selling — and ultimately a key inhibitor• Maintenance of organic growth.‖ Forrester Research © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 129. Current state paper issues Items lost or misrouted Information moves Latency = fraud (slowly) on paper Slow, expensive Poor process exception visibility processing Limited process Current state Expensive courier control/flexibility paper issues contracts Paperwork burden Shadow copies on staff Customer service Compliance risks impact Difficult to secure information © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 130. Account opening accelerator solution No manual sorting and routing Items sent to back Accelerate fraud office in real time detection Improved exception Improved visibility processing Process Lower process cost control/flexibility Improved Reduced Information paperwork burden Security Improved audit Improved customer & compliance experience controls Green © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 131. HP account opening accelerator © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 132. HP account opening accelerator Secure MICR Authentication, Access, Check Printing and Audit Control HP MFP, Printers & Scanners Bar Code Integrated Form Capture Print Support and Routingh HP Total Solution Delivery and Support h © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 133. BenefitsChallenges HP Account Opening Accelerator BenefitsAbandonment 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 logStaff 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 quicklyCustomer Privacy Capture sensitive documents and get rid of paper; end shadow copy; mask sensitive fieldsLost/Misrouted Items Automate document recognition and routing with bar codesCompliance 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 informationcontained herein is subject to change without notice. Confidentiality label goes here
  • 134. New account opening acceleratorexample 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
  • 135. Top 10 North American FSI firmAccount opening accelerator for banking 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 HP solution Business benefits • The North American FSI firm • Utilised HP Account Opening • Faster, cheaper process with wanted to accelerate and Accelerator better customer experience. streamline the account • Re-design of documents to Transactions carried out in opening process for its improve machine recognition minutes rather than days customers and readability • Enhanced compliance and • It wanted to automate manual • Integrate HP MFP with information security paperwork and reduce the account opening systems to • Improved service to Line of amount of time and cost of eliminate courier to back Business customers using couriers to transfer office • Superior, remotely documents back and forth • Real time transaction to manageable print from branches process documents infrastructure • Improve customer experience • Reduced carbon footprint due and ensure compliance with to reduced use of couriers FSI legislation © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 136. So how can document workflowintegration services help close thisbusiness?© Copyright 2011 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. Confidentiality label goes here
  • 137. MphasiS DWIS capability snapshotIndustries Fact Sheet Skills Differentiators • 10+ yrs exp with leading Document & • 50 + resources having expertise in Document • Reference architecture (for Invoice Processing Records Management products Capture, Manage , Workflow & Document & Account Opening) • Successfully executed 70+ Document & Output products • IPG Lab – Solution Accelerators and Content management projects • 150 + Integration Experts with 600 + person Frameworks (Mframe ,etc)DWIS • Multiple Models – Managed Services, years of Integration experience across the • Customer driven POC led Solutioning Professional Services, Shared Services company (Invoice & Claims processing, Marketing • Competency in HP partner products like – • 150+ Domain experts (Banking, Capital Material) Kofax , Extream , Onbase markets, Insurance, Healthcare, Retail) • Cloud based Industry Solutions • A large pool of Technical resources (Java , .Net , SOA , MQ , Biztalk , Tibco) • 70 + Architecture & process resources (Enterprise Architects , Information Architects across the company) Foundation ECM BPM EAI BIDW Cloud Practices • 15000+ consultants handling 290+ • 70+ Global Customers, • 14000 + Resources across various million transactions annually Apps Infra BPO domains , technologies & practices • 6500+ Experience & Certified team, • CRM, Transaction Processing and 24x7 Ops Shared services (F&A & HRO) Products © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 138. MphasiS BCM capability snapshotFact Sheet Skills• 8,000+ resources focused on Financial Services • Strong FSI Business Analysts group (FSI-BAG) for across applications, BPO and ITO domain expertise• Retail Banking, Investment Banking & • Dedicated Financial Services Competency Brokerage, Credit Cards & Loans, Accounting Center (FSCC) for domain focus training & Taxation & certifications • Industry Solutions Group (ISG) for building domain focused solution in for Banking &Case Studies Capital Market space• Record and Content Management System • Opportunity assessment methodology and ISO Implementation for a Large Investment Bank in certified transition methodology successfully Middle East tested on over 300 processes• Workflow Automation and Document • BASE 24 Support Capabilities & Management System for a leading TAL Programming 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 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 139. Mphasis horizontal capability snapshot Towers • 14000 + Resources across various • 6500+ Experience & Certified team • 15000+ consultants handling 290+ domains , technologies & practices • 70+ Global Customers, million transactions annually • Financial Services : 4200 + FTE, • Supporting 28000+ Servers, 253 GB • CRM, Transaction Processing andApps Manufacturing : 2562 FTE, Healthcare : Shared services (F&A & HRO) Infra BPO storage, 7 mn contacts annually, 72 mil 1100+ FTE. Consumer & Retail : 534 measurements daily FTE, Transportation : 910 FTE • ITIL v3, BS15000, BS7799, Six Sigma, SAS70, HIPAA Practices ECM BPM EAI BIDW Cloud• 10+ yrs Exp • 250+ Person yrs Exp with • 850+ Person yrs Exp • 470+ BI & Analytics • 800+ Person yrs Experience• Strong architectural & Expertise in Pega , PRPC, • Global pool of over • Solutions in Retail and • 20+ Global Customers domain skills ALBPM (Fuego) & IBM WPS 175+ resources claims analytics • Expertise in Virtualization• Integration with MS Office • Expertise in TIBCO, web • Expertise in Informatics,• Meta data, content & user methods & websphere Cognos & Business Objects migration Portal Oracle SAP • 510+ experience resources • 200+ Oracle Consultants with • 500+ experienced SAP across various products rich Industry Experience, avg Professionals • Successfully executed 70+ Portal experience : 5+ yrs • 40+ global customers supported & ECM projects • Successfully executed 60+ out of India • Projects in the areas of Portals, Oracle/PeopleSoft/JDE projects • Enhanced capabilities in SAP CMS, eCommerce, Search, and providing ongoing support Netweaver components such as Collaboration, AJAX, Click across 30+ clients globally XI/EP & MDM stream, Open Source • Strong focus on Applications • 40% resource base are SAP Portals/CMS and Web 2.0 Management, PeopleSoft certified consultants,35% technologies Factory, Upgrades resources in PMP, ITIL © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 140. Regions: NA (US)/EMEA (UK)Client onboarding shared service Line of Business: Capital MarketsEngagement summaryHighlights Statement of PurposeClient Design and build a client onboarding application as a shared service for clients across asset classes andInvestment bank LOB of a geographiesuniversal bank headquartered inFrankfurtServices Offered Client Audience Business Need/Objective• Business requirements• Technical architecture/design Internal (>200 users): • Standardized, integrated client onboarding process applied• Information architecture • Sales team globally across different teams• Development • New Business committee • Decreased time to onboard a client• Testing/UAT • Compliance managers • Greatly enhanced MIS from a single repository• Production Support • Risk managers • Quick identification of onboarding bottlenecks and resolving • Legal team issues • Client onboarding teamTools & Technologies • Collateral management team• C#, .NET 2.0: Development • Business management and framework• SQL Server 2005/Oracle 9i Key Business Benefits Delivered• Tibco iProcess (workflow management) 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 technologyEngagement Details • Substantial reduction in time spent in onboarding clients, speeding up revenue streams from new clients• Model: Onsite- Offshore • Integrated workflow across teams working globally to smooth task handovers and coordination across teams• Peak Team Size: 20 • Incorporation of a pricing calculator to support client negotiations, improving efficiency and reducing manual• Duration: Ongoing (started data re-entry March 2007) Improved visibility for clients and business management• Location: New York and • Easy availability of MIS reports from different perspectives: sales; on boarding times; projected revenues; London/Bangalore bottlenecks © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 141. Client onboarding shared serviceFunctional architecture ONBOARDING APPLICATION Other Internal Systems Onboarding Initiation Form Client Data Enrichment Capture Parent, Legal Create, Edit, Search, Add LOB/Service Validate revenue Client Reference Entity, Investment New Business View & Copy Form related information forecast Data Systems Manager Committee Capture Review Assign credit risk and Capture pricing terms Add legal docs and products/services/LO on boarding & issue pricing letter assign legal officers Portfolio B information coordinator Accounting System Client onboarding process Perform credit- Manage and Coordinate Manage support task setups Onboard Clients risk due monitor legal doc operational task (e-trading and down stream and associated Data diligence status and setups applications) products Warehouse Client Profile Maintenance Management Information Manage client, LE, Maintain account Pricing Calculator View and query View and Entitlements investment manager hierarchy Dashboard extract reports Service Workflow Management Administration Create and Manage Communicate: Manage Routing & Change status Manage users, Other Systems maintain Approvals & Alerts, mails & Process business across process groups, roles Audit trails Rejects Notifications rules PRODUCTS SUPPORTED Equities Prime Direct Market FX Prime Equity FX Structured Precious F&O Brokerage Access (DMA) Brokerage Swaps Trading Investments Metals © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 142. Regions: North America (US)Client onboarding enhancements Line of Business: Commercial Banking/Capital MarketsEngagement summaryHighlights Statement of PurposeClient Enhance a client onboarding application used by multiple groups within the Banking and Securities Services linesBanking and securities services of business of the Bankarm of a major universal bankServices Offered Client Audience Business Need/Objective• Functional requirements• System technical design Internal (>200 users): • Speed up and streamline the client onboarding process to allow• Development • Onboarding team clients to start doing business sooner• Testing (SIT) • Back office operations users • Consolidate multiple onboarding systems arising from a banking mergerTools & Technologies• Cold Fusion 8.0• Weblogic 8.1.6 (App Server)• DB2 Connect 9.7• Oracle 10g• Apache 2.2.6• Visual FoxPro 9SP2 Key Business Benefits Delivered Extended coverage across products and customers • Covered additional Bank products with a standardized process and applications suite, and provided additionalEngagement Details granularity at sub-product level• Model: Onsite- Offshore • Extended coverage to customers in new locations• Peak Team Size: 30 • Migration of customers from a subsidiary bank (leveraged team supporting Process transparency multiple onboarding apps) • Ability to monitor onboarding status easily• Duration: Ongoing (since Improved features to speed up the onboarding task October 2007) • Enabling customized workflows and different approval processes for different situations• Location: Houston, • Enhanced user interface to easily capture relevant information, manage permissions, and navigate the Chicago/Bangalore application © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 143. Client onboarding enhancementsFunctional architecture Interfaces On-boarding System Workflow Management Monitor Workflow Assign Users to Assign/re-assign workflow Client Reference Data Status Teams tasks to Teams Accounts Customers Products Pricing & Billing Account Setup Create Customers Maintain Product Pricing Options & Details Fee Schedule Accounts Manager Account-Product Search Customer Mapping Capture Product Billing Account Capture & Update Details Maintenance Account Maintenance Customer Information Entitlements Manager Capture Account Customer-Product Deactivate Customer Billing Account setup Details Mapping Report Configuration Others (20 integrated Reporting Transmission applications) Report Selection User Information Report Options Accounts Schedule ~20 otherSupported Funds Cash Global Account US-Only Electronic Cash Real-time wire products/seProducts Transfer Concentration ACH Transfer ACH Statements Reporting reporting rvices © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Confidentiality label goes here
  • 144. Thank you© Copyright 2011 Hewlett-Packard Development Company, L.P. The informationcontained herein is subject to change without notice. Confidentiality label goes here

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