Benefits from Implementing Newgen's BPM Solution at a Shared Service Centre

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leading Indian pharmaceutical company manufacturing a wide range of affordable and high quality generic medicines, trusted by healthcare professionals and patients across geographical boundaries. It is ranked amongst the top ten generic pharmaceutical companies worldwide.

Newgen was selected to implement a unified business workflow automation and document management solution in order to streamline the Accounts Payable (AP) process at a Shared Service Centre (SSC)

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Benefits from Implementing Newgen's BPM Solution at a Shared Service Centre

  1. 1. Benefits from Implementing Newgen's BPM Solution at a Shared Service Centre
  2. 2. At a Glance Newgen was selected to implement a unified business workflow automation and document management solution in order to streamline the Accounts Payable (AP) process at a Shared Service Centre (SSC) Website: www.newgensoft.com Key Challenges • Various activities and systems involved in invoice processing working in isolation • Dependence on physical movement of invoices across departments and locations • Lack of an efficient monitoring and tracking mechanism • Difficulty in conducting internal audits and meeting compliance standards Key Benefits • Increase in employee efficiency and productivity • Reduction in bill payment cycle • Better audit and compliance management • Establishment of an efficient tracking and monitoring mechanism • Reduction in cost incurred per employee • Efficient utilization of capital assets and infrastructure • Scalable solution that enables faster roll-out of Return on Investment initiatives of 135%1 1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated 1 of 6
  3. 3. Overview The client is a leading Indian pharmaceutical company manufacturing a wide range of affordable and high quality generic medicines, trusted by healthcare professionals and patients across geographical boundaries. It is ranked amongst the top ten generic pharmaceutical companies worldwide. With a presence in over 49 countries, 11 manufacturing facilities and a diverse product portfolio, the company has vendors scattered across multiple locations in India. As a result of this geographical spread, company's Finance & Accounts (F&A) Department had a difficult task coordinating payments made and received on behalf of the Key Operational Challenges With a pan India presence, the F&A Department had the task of tracking and monitoring invoices raised by its vendors. Coordination of this activity affected the day-to- day operations with frequent instances of loss of invoices. This had an adverse impact on the overall performance of the department. The absence of a robust tracking and monitoring mechanism affected audit and compliance management. The audit process was time consuming, and an average of two days was required to locate physical documents. Tracking the lost invoices was difficult and time consuming 2 of 6
  4. 4. The Solution In order to address these challenges and streamline its The rule- and role-based BPM solution processes these Accounts Payable (AP) process, the management decided to workitems, and enables the company to efficiently and establish a Shared Service Centre (SSC). The primary accurately make payments to its vendors. objective was to centralize the AP process and increase its Automation and the absence of physical movement of efficiency, accuracy and productivity. In addition, it was documents have made the AP process more efficient. The decided that a unified Business Workflow automation solution also allows the company to archive invoices and solution was required to support the business needs of the other supporting documents in OmniDocsTM from where Shared Service Centre. they can be viewed, downloaded and printed online as per Newgen was selected to implement the business workflow user requirements. automation solution and integrate it with SAP. The products used for implementing the solution by Newgen are OmniScanTM (OmniCapture), OmniFlowTM and OmniDocsTM Minimized user All the invoices and supporting documents are sent to the SSC, where they are scanned and introduced into interface has increased OmniFlow TM (workflow system) using OmniScanTM. The accuracy of data being invoices are then segregated based on their work type (PO/Non-PO) and routed to the respective users for further captured processing. 3 of 6
  5. 5. Exception Resolution by Supervisor Other Exception Faster access to invoices Correct through workflow, leading to Invoice reduction in waiting and Data Entry and Posting of case details processing time. Also, Verification directly into SAP invoices are segregated on Image the basis of PO or Non-PO Exception PO Transactions Rescan Cheque details captured and payments approved in SAP Non-PO Payment Run Transactions Cheque Details Exception Resolution by Supervisor Other Exception Correct Invoice Invoices/Documents are scanned, indexed and Posting of case details Data Entry and uploaded in the workflow directly in OmniFlow and SAP Verification from multiple locations Image Exception Rescan Business Workflow Automation Solution 4 of 6
  6. 6. Key Benefits and ROI Benefits accrued to the company were both direct and indirect. Reduction in operating costs, travel and communication expenses, office stationary and The company achieved infrastructure usage were some of the benefits achieved by centralization and implementation of the BPM solution. The a headcount reduction * company also achieved other benefits like increase in productivity and reduction in IT infrastructure costs through of 60% compared to better utilisation of capital assets. the global average of Newgen's BPM solution has enabled the company establish a comprehensive monitoring and tracking mechanism. 20%# Image enablement of SAP helped in streamlining internal audit and soft archival of physical documents to meet company to identify bottlenecks and take appropriate compliance standards. remedial action. Key benefits from the solution include the following: • Efficient utilization of capital assets and • Improved employee productivity: Newgen's rule- infrastructure: Capital assets and infrastructure are and role-based workflow solution ensures efficient being utilized more effectively. The branch offices of workload balancing, resulting in higher employee the company are being utilized for other core activities utilization and productivity. of the pharmaceutical company. • Better audit and compliance management: • Scalable solution that enables faster roll-out of Internal audit, a tedious and rigorous process, which initiatives: The company is better equipped to took 5* days at an average, is currently completed manage growth and strategic initiatives because the within 3* days. Newgen's system maintains a solution is scalable and it enables faster roll-outs. Over complete history of every invoice, including the the years, the company has been able to increase the approval and processing history along with an workload at the Shared Service Centre, thereby electronic image of the document. Also, customized facilitating other offices to concentrate on their core reports give the administrator complete control over activities. the activities of the SSC. • Seamless integration with SAP: The solution has • Reduced cost: The solution has also enabled the been seamlessly integrated with SAP to further company to streamline its process, thereby reducing enhance the efficiency of the overall system. the cost per transaction. It has also resulted in reduction of administrative overheads incurred per employee. The company has • Efficient tracking and monitoring mechanism: Vendor payments are made much faster due to achieved a 135%1 ROI accurate data capturing and faster bill payment cycles. Real-time tracking of invoices is possible, enabling the over a three year period 1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated * As per data provided by Newgen's client # As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared services organizations around the globe 5 of 6
  7. 7. Methodology The ROI calculation represents the relative value of a • Resource savings – from reduced hiring project's cumulative net benefits over the analysis period, • Time savings – reduction in processing time for audits, divided by the project's cumulative costs, expressed as a faster vendor payment processing percentage. In a formula, this can be represented as: ROI = cumulative net benefit / total costs. The ROI achieved from • Capital expense reductions – savings in expenses such implementation of Newgen's BPM solution was derived on as facilities, administrative overheads the basis of total benefits achieved and investments made • Productivity benefits – increase in volumes of by the client over a period of three years. transactions processed per day Investments includes both one time and annual recurring The above mentioned data and information was sourced costs incurred by for components like through the following: • Implementation, software and initial license cost • Primary Research (customized questionnaire) • Hardware • Secondary Research (Third Party Industry Reports and • Maintenance and production support Deloitte Global Benchmarks and Survey Reports) • User training Benefits were calculated by quantifying the returns achieved through higher employee productivity and reduction in various cost parameters. The key benefits identified for analysis were: 6 of 6
  8. 8. Disclaimer The ROI analysis was commissioned by Newgen and has been done by Deloitte for the clients provided by Newgen. The analysis was done based on data provided by Newgen and its clients and Deloitte makes no assertions on the potential ROI that other organizations might receive by using Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation of the benefits that client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not to endorse its solutions by Deloitte. This document contains general information only and Deloitte Touche Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication. Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published document. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. About Newgen Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Document Management System (DMS), with a global footprint of about 750 installations in over 35 countries. Newgen is recognized by distinguished analyst firm IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management Solutions.” With HSBC and SAP investment, Newgen is one of the rare product companies to have backing of both leading financial and technology companies of the world. Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award 2008”, Frost and Sullivan's “Market Leadership Award for Document Management System and Workflow Software & Services” and “Distinguished Application Product Company” by NASSCOM, Newgen Software is an ISO 9001:2000, ISO 27001 certified and CMM Level 4 company. Newgen Software Technologies Ltd. Newgen Software Inc. A-6, Satsang Vihar Marg, Tel: +1-703-749-2855 Qutab Institutional Area, Tel: +1-510-794-6724 New Delhi – 110 067 Email: info@newgen.net Tel: +91-11-26964733, 26963571, 26856871 Email: newgen@newgen.co.in Website: www.newgen.co.in

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