leading Content Managemen

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BancTec’s Range of Transactional Content Management System and Records Management Solutions help global organizations build effective Transactional Content Processing & Document Management systems, find the right fit for your organizations need, visit www.banctec .com to learn why a growing number of companies are calling on BancTec for scalable, cost-effective solutions to control and optimize business processes.
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    BancTec’s Range of Transactional Content Management System and Records Management Solutions help global organizations build effective Transactional Content Processing & Document Management systems, find the right fit for your organizations need, visit www.banctec .com to learn why a growing number of companies are calling on BancTec for scalable, cost-effective solutions to control and optimize business processes.
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leading Content Managemen

  1. 1. PROCESSING & MANAGEMENT OFINBOUND TRANSACTIONAL CONTENT IN THE GLOBAL ENTERPRISE A BancTec White Paper
  2. 2. SUMMARYReducing the cost of processing transactions, while meeting clients’expectations, protecting the information and minimising any related risks,present major challenges to global enterprises. This applies particularlywhen they operate in widely dispersed geographies and have to complywith local, regional & global regulatory requirements.This white paper looks at how we can optimise the costs and the servicelevels associated with processing inbound documents within the globalenterprise. It also contains a set of steps that need to be consideredwhen developing an effective strategy for the processing andmanagement of inbound documents across the global enterprise. Page | 2
  3. 3. PROCESSING & MANAGEMENT OF INBOUND TRANSACTIONAL CONTENT IN THE GLOBAL ENTERPRISEINTRODUCTIONAll enterprises are continuously looking for ways to optimise the costs of deliveringservices and business transactions to their clients. Global enterprises are no exception asthey try to benefit from their global model by utilising the most economical resourcesavailable, across their global base and local market places.From another perspective, clients’ expectations continue to rise and global enterprisesmust meet these expectations to stay ahead of the competition. Global Enterprises needto react swiftly to critical information coming from geographically dispersed locations. Thisinformation must be routed to the right business stream for processing; while ensuring it isprotected and any risks associated with the transactions are managed.Let us look at a typical transaction - processing orders. Orders come from differentgeographies via a variety of channels including post, faxes and emails. Losing,misrouting or delaying any of these orders will impact the business and may mean losingbusiness opportunities or losing new or existing clients.These orders need to be captured, protected, classified and routed to the relevant “Line ofBusiness” as soon as possible, and all these steps need to be performed efficiently andaccording to certain service standards. These orders need to be securely archived andretained in-line with the applied legal regulations. Also, all the captured information mustbe available, within the required retention period, for any future legal discovery process. Page | 3
  4. 4. WHAT IS TRANSACTIONAL CONTENT?The content of an inbound document (coming to the organisation) that initiates or drives aback office business transaction (business process) within the organisation is calledTransactional Content (TC), for example the content of a purchase order, an applicationform, an invoice, an insurance claim or a complaint letter. If we look at a purchase order,the content incorporates the information on the order document, such as the name andaddress of the purchaser, the order reference number, the date of order, the requireddelivery address, etc.The point of entry of a TC document, for most large organisations is the Mailroom (or theMail Processing Centre). Most large organisations have several mailrooms (related todifferent geographies or Line of Businesses). It is in the mailroom, where the inbounddocuments are prepared, classified and routed to the relevant Line of Business (LoB). Ina survey BancTec carried out recently, we found that most global organisations havemore than one centre for processing inbound documents: Area of ConcernOur study also highlighted some common concerns Lost or Mis-routed documentsrelated to processing inbound documents & mailrooms(see table). Late response time to mailMost global organisations try to address these concerns in Inaccurate deliveryparallel to optimising the cost of processing inbound Poor efficiencydocuments by taking measures such as: Late delivery of documents Typing errors from invoices  Automaton of the mail processing activities. Need to forward hard copy  Introduction of a shared mailroom service; by Poor audit trail sharing or centralising mailroom services across different LoBs or regions. Poor accountability Poor security and privacy  Outsourcing part, or all, of the mail processing service to specialised external managed service Mismatched data to invoice providers. Slower processing of payments  Off-shoring part, or all, of the mail service to Low productivity another lower cost geographical location in their Need to create multiple copies own global base, or in their external global Source: Marketing Research Study, commissioned by market place.. BancTec (USA) in April 2008. The Study involved 200 senior executives, from medium to large enterprises (60% with revenue >$500m, 46% with revenue > $1B.) Page | 4
  5. 5. These measures are being increasingly considered particularly in the Financial ServicesSector, where organisations are under enormous business pressures to cut their costs,improve profitability and competitiveness.These measures have become widely accepted, because of:  Acceptance of the Global Enterprise Concept.  Increased adoption of the Process-Oriented Organisation model.  Increased interest in outsourcing the business application support using Software as a Service (SaaS) model.  Increased appreciation of the Service Oriented Architecture (SOA) as a reference model for the enterprise technology architecture because of its agility & flexibility.  Availability of different relevant matured technologies at reasonable costs, that: o Automate, monitor and manage the mail activities across geographical boundaries. o Manage, control, securely protect, save and real-time monitor content.  Wide availability of Internet technologies and the relatively low costs of communication and distributed systems infrastructure and managementOrganisations implementing any of the above measures are looking to achieve:  Quick Return on Investment (RoI) (within less than 2 years).  Rapid noticeable improvements to the mail services (addressing the concerns highlighted above).  Fast deployment of the selected measure(s) and quick transition to the new model.THE JOURNEY OF THE TRANSACTIONAL CONTENT WITHIN THE ENTERPRISEWhen the Transactional Content (TC), in the form of a document (paper or electronic),arrives at an organisation, it passes through certain preparation steps before it reachesthe LoB application. A document can be classified as one of these:Structured, where the data is always in fixed locations on each document page (forexample application forms)Unstructured, where the data is in unfixed locations on each document page (for examplea correspondence letter)Semi Structured, where the document has some of the data on fixed locations and someon unfixed locations. (for example a purchase order or an invoice document) The handling of inbound paper documents, in a manual environment, usually involvesthese steps: Page | 5
  6. 6. Most organisations, particularly the ones that receive large volume of inbound documents, have designated mailroom(s) to handle these preparation steps and may have already introduced some form of automation to the above steps to reduce the time and costs of processing. Experienced operators can open and take out the contents of 450 – 550 paper envelopes in one hour. This figure is reduced to about 300 – 320 when the operator is required to open large envelopes, remove staples, and unfold the different documents. Sophisticated envelope opening machines can slit open and take out contents of 9000-22000 envelopes in one hour! Scanning and Optical Character Recognition (OCR) technologies are used to read the content from paper and convert it into digital content that can be more quickly and less costly transferred to the LoB and to electronic archiving. JUST THE FACTS OUR RESEARCH SHOWS One-half of all respondents indicated that their organization digitally scans inbound mail paper documents during a typical workday. Those companies which handle more than 25,000 documents daily (70%) are significantly more likely than those handling fewer than 25,000 documents (45%) to digitally scan inbound mail. Further, 39% of respondents report using OCR/ICR technology to process inbound mail. The diagram below illustrates the introduction of limited automation to the processing of inbound TC in the mailroom (automated steps are represented in yellow). The classification step could be done manually or automatically (with a provision of manual handling of exceptions). Page | 6
  7. 7. Nowadays, the TC journey can be fully automated using different technologies (withprovision for human intervention to handle exceptions and to carry out validation andquality control). Automation can dramatically improve the control and monitoring of theprocessing and reduce its duration and cost. Cost reduction can reach up to 90%.The automated end-to-end process for processing inbound TC involves these steps:IMPORTIn this step, the inbound content, from the different input channels (fax, scanner, internetor electronic files) is gathered automatically and fed to the next steps. Each document willbe registered with a unique identification that will be used for future searching, monitoringand control.CLASSIFYThe documents are classified automatically, using different technologies, into differenttrays. The classification is carried out using defined rules, related to: a) The layout of the document (in structured documents). b) The recognition of key words (in certain context) (in unstructured documents). c) Combination of both.Different intelligent software engines are used to classify the documents, they haveprogrammable / configurable classification rules and optical character recognition (OCR).Some have built in advanced self-learning intelligence.CAPTUREThe content is extracted from the documents, using extraction engines. The extraction iscarried out according to defined rules related to the type of the originating document andthe Service. Some engines combine recognition, classification and extraction functions. Page | 7
  8. 8. CHECK EXTRACTED CONTENT: Most engines extract contents originated from printed characters with high accuracy (high level of confidence), however, the same does not apply to content originated from handwritten documents. Manual validation of the extracted content is sometimes required to ensure its correctness. This validation exercise is usually carried out by experienced operators in mailroom centres. They check the extracted content against the digital images of the original inbound documents, correct wrongly extracted characters or key missing ones. EXPORT & ARCHIVE : After ensuring the extracted content is correct, it is exported to the relevant Line of Business Process for further processing. The digital image of the originating document is also usually archived into an archiving, document management or content management system. The image stays secured there during the required retention period, in compliance with the applied regulations. The availability of different technologies and a high performance networking infrastructure have made this automated process an affordable reality. Area of Concern Percent* Lost or Mis-routed documents 59% Late response time to mail 51% NOTE : Inaccurate delivery 50%Most of the participants in our Research Poor efficiency 50%Study agreed that an automated end-2-end Late delivery of documents 47%solution for processing inbound TC, similarto the one described above, will resolve or Typing errors from invoices 46%minimize the concerns highlighted earlier Need to forward hard copy 46%(refer to the table on the right). 45% Poor audit trail Poor accountability 42% Poor security and privacy 42% Mismatched data to invoice 41% Slower processing of payments 39% Low productivity 38% Need to create multiple copies 37% * Percent of votes based on 200 multiple responses Source: Marketing Research Study, commissioned by BancTec (USA) in April 2008. The Study involved 200 senior executives, from medium to large enterprises (60% with revenue >$500m, 46% with revenue > $1B.) Page | 8
  9. 9. WHAT ARE THE KEY ISSUES RELATED TO PROCESSING INBOUND TRANSACTIONALCONTENT?1. CENTRALISED VS DISTRIBUTED TRANSACTIONAL CONTENT PROCESSING:Most organisations have already invested in automating one or more of the above stepsor inherited some of the relevant technologies as a result of mergers & acquisitions. Also,it is common to find silos of automated mailroom solutions dedicated to some Line ofBusiness Streams in some regions.Is it economically more effective for a geographically dispersed organisation toconsolidate all the different mailroom processing platforms and move into a centralisedshared process using a low-cost and effective resourcing model? Logically the answer isYes.However, this is not always an easy decision, as regional organisations and successfulLoBs, want to be more autonomous, exercise control over their content processing steps,control own local Service Level Agreements (SLAs) and deal with local resources whospeak the same language and work within the same time zones. So they usually try topush for local TC processing solutions.It is possible to reach a model that nearly satisfies all stakeholders, a model thatincorporates the required business benefits by building a solution that supports acombination of: a. Distributed remote scanning or distributed remote capture, that provides some local control & monitoring, for the Regions and LoBs. b. Centrally managed Shared Service that provides managed mailroom services at reduced costs by sharing highly utilised resources/systems across different LoBs. c. The Centralised Shared Service, can further optimise the costs by using lower cost resources available offshore for specific services, such as keying/checking from image.This model is possible and it delivers a high business return, it requires the righttechnology platform that supports the end-to-end processing of inbound TC in a globalconfiguration and provides real-time document, services and process management. Page | 9
  10. 10. 2. MONITORING, CONTROLLING AND MANAGING THE CONTENT JOURNEYThe digitised TC travels across the organisational boundaries and across multiplegeographies. It flows according to the end-to-end process described above. The journeyof the TC needs to be monitored and controlled to ensure that a) Only authorised personscan access & process the relevant content and b) The content reaches the requireddestination, in the right quality and within the required performance indicators. While theend-to-end process has its own SLAs, each step in this journey, has an associated SLA todefine expected service measures and Key Performance Indicators (KPIs). These SLAsneed to be set, measured, monitored and continuously optimised to achieve the requiredlevel of service. Different performance indicators are required by different managementlevels. Senior managers are interested in monitoring costs of transactions and customerretention/satisfaction levels; Supervisors are interested in monitoring the performance oftheir teams and their local SLAs. Operators may want feedback on their own performanceand volume of work.A key regulatory requirement is that all the activities that happen during the TC journeythat have an impact on the content must be recorded for future auditing and tracking.The Business Process Management (BPM) technology provides the tools to design andautomate processes across organisational boundaries, to control the execution of theseprocesses, to monitor, to record changes and to control the progression of the steps.While enterprise wide Systems Management suites provide the enterprise with tools tomonitor and manage (in real-time) the different systems components - at an infrastructurecomponents level: The BPM suites provide the enterprise with tools to monitor andmanage the business process execution and performance and the delivery of services.3. HANDLING EXTENSIVE VARIETY OF INBOUND TC DOCUMENT TYPESThis is another key issue. The different types of inbound documents required by thedifferent LoBs and their anticipated volumes have an impact on the type of activitiesrequired within the end-to-end process, the required resourcing model, the achievableSLAs and the technology components of the solution.Assessments need to be carried out to capture the types of documents required by thedifferent LoBs in the different geographies currently and in the future. The organisation,needs to evaluate and optimise the designs of the different types of structured documentsacross the LoBs, to cut the time of processing and to reduce required manual exceptionhandling. The organisation needs to focus on the documents that have a real impact onthe business.4. REUSING & INTEGRATING EXISTING SOLUTION ASSETSAs mentioned earlier, most organisations have already invested in one or more solutionsto automate the mail processing steps.It is reasonable that most organisations want to re-use and leverage some of the existingassets. Proper assessment of the existing assets needs to be carried out to consider ifthe business benefits from re-using them and to plan for their possible integration with thenew solution. Page | 10
  11. 11. 5. SUPPORT FOR DIFFERENT LOCAL LANGUAGE VARIANTS Suitable automated solutions for the global enterprise need to have provisions for supporting different required local language variants. 6. COMPLIANCE A new solution needs to comply with the requirements of the applicable global and regional regulations. Sometimes regional requirements are missed due to lack of understanding or ignorance.WHAT TECHNOLOGIES FORM TRANSACTIONAL CONTENT MANAGEMENT PLATFORMS?Business Process Management (BPM)This technology provides the core platform to automate the end-to-end TC processing and to manage:1- The different steps during the execution of the process.2- The services provided by the different engines used in these steps.BPM provides the real-time business monitoring, control and tracking of the documents, activities and SLAs at local andglobal levels.Classification, Capture & Image Handling TechnologiesThese are engines that provide document classification, (according to defined rules), data character recognition andextraction of relevant content from the variety of input sources and image processing & conversion.Archival or Content Management TechnologiesOnce the content is classified and verified it is usually securely stored using archiving or content managementtechnologies, for future retrieval, management and destruction. Usually these platforms provide some level of support forSecurity, Retention Policies, Record Management,, Information Right Management and Data Protection.On top of the above key technologies, there are additional technologies for Data Retrieval, Business Reporting tools, DataProtection, Security and Keying Clients.A Transactional Content Management solution incorporates all the above technologies fully integrated in a unifiedapplication platform. 7. PROVISION FOR A POTENTIAL E-DISCOVERY PROCESS The costs of e-discovery of digital data following any litigation is very high and organisations need to consider solutions that have the tools that can identify and classify content for effective discovery to reduce the costs of any future litigation. 8. INTEGRATION OF MAILROOM WITH THE DIFFERENT LINE OF BUSINESS APPLICATIONS The requirements for integration with the different existing LoB applications need to be considered at an early stage. Page | 11
  12. 12. 9. SUPPORT FOR THE DIFFERENT INBOUND CHANNELS ACROSS DIFFERENT REGIONSEarly consideration needs to be given to the different inbound channels (currently used orwill be required) in the different regions. No arbitrary assumptions on the availability andlevel of usage in the different regions should be made. Input from the local organisationsand market research need to be considered. Market research is particularly useful as itshows future trends of channel usage. It is important that selected solutions either directlysupport key channels or can be customised to provide this function.STEPS TO CONSIDER WHEN DEVELOPING A STRATEGY FOR A TRANSACTIONAL CONTENTPROCESSING SOLUTIONChoosing a suitable strategy for building an effective TC management/ processingplatform that supports the enterprise’s global (and local) business needs is not easy. Therecommended approach involves these steps:1. UNDERSTAND YOUR GLOBAL ENTERPRISE VISION, BUSINESS OBJECTIVES & DRIVERSThese will give you a good framework or context that will define your critical successfactors for the design & implementation of a Transactional Content Management platform.For example if one of your enterprise’s business objectives is to extend to a newgeographical region, you need to consider LoB’s requirements in the new region, theapplicable local regulations, the blockers, and so on.2. CONSIDER THE CURRENT & FUTURE NEEDS OF THE DIFFERENT LOBS & REGIONS  Current & new streams of business.  Required types of inbound channels, documents, volumes (now & future).  Applied regulatory / security requirements.  Required SLAs by LoBs and users.3. SURVEY THE CURRENT DIFFERENT MAILROOMS ACROSS THE ORGANISATION  The services they provide.  The volumes of inbound TC processed in each mailroom, using the different inbound channels and for each LoB.  The level of maturity of their current mailroom processes.  The level of automation in each mailroom.  The resources engaged and their level of skills and experience.  Current costs of processing documents in different mailrooms.  The applied regulatory requirements, with regards to security, data protection, document retention and auditing.  The available communication infrastructure.  Required SLAs and current levels of achievements.  Any external Service Providers and the services they provide. Page | 12
  13. 13. 4. IDENTIFY THE GAP BETWEEN CURRENTLY AVAILABLE & FUTURE SERVICES  The new services that need to be supported.  New SLAs that need to be met.  The changes that need to be supported (document types, channels, volumes and regulatory requirements).5. DEFINE A GENERIC END-TO-END MAILROOM PROCESS FOR TC PROCESSING  Review the current mailroom processes in the key regions: Focus on the 20% of the key regions that generate 80% of the core business (using Pareto 80/20 principle). Use the outcome of the previous steps to produce high level process map(s) of the mailroom process for each region. Compare the process maps to find if there are duplicate steps that can be provided as centralized, shared or off-shored services. Also consider the steps that can be automated or discarded. Assess the impact of the process changes in each region.  Define an applicable generic process: Identify the steps that are applicable to most regions. Could these be designed as a single shared service? What is the impact? Where are the most economic places to run the services within the enterprise global base? Could it be outsourced or off-shored? Define which steps of the process can be centralised and which need to be locally available. Produce a reference map for the end-to- end generic process. You may need to consider more than one end-to-end generic process map.6. DEFINE THE REQUIRED SOLUTIONThe captured requirements in the previous steps and the defined generic end-to-endprocesses will help you define the parameters of the required solution. You need toconsider issues such as:  Reusing existing technology assets.  The requirements for future scalability.  Existing IT strategies & policies with regards to H/W platforms, content management, communication infrastructure, security, enterprise systems management & BPM platforms.Also you need to consider the available Transactional Content Management & Processingsolutions in the market, their suitability to your requirements and the requiredcustomisation.7. DEFINE THE POSSIBLE TRANSITION OPTIONSThe transition option defines the steps that migrate your current diverse mailrooms to yourrequired solution. Consider different Transition Options and their impact on the globalbusiness, organisation and resources. Page | 13
  14. 14. 8. DEVELOP THE BUSINESS CASE Calculate the cost of implementing the different transition options. Identify all the tangible and non-tangible business benefits and cost them to produce a Return on Investment projection. You also need to consider the cost of the change management programme associated with the transition. 9. OTHER ISSUES THAT NEED TO BE CONSIDERED IN YOUR STRATEGY FOR GLOBAL ENTERPRISE Finally, when thinking about building a Global Transactional Content Management/ Processing strategy you also need to consider for each region:  The culture, needs & blockers to the programme.  The impact of the change on the local business processes and resources.  The local and global Change Management programme that need to be put in place to handle: re-training, redeployment and communication across the regions.BancTec offers a set of services & solutions that help clients in this domain.BancTec’s CenterVision solution is a leading Transactional Content Processing andManagement Solution.The BancTec Services Delivery Methodology incorporates a set of methods, techniques,tools and services that help global organisations build effective Transactional ContentProcessing & Management solutions. Page | 14

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