Drive Paper Out of Your Processes

In association with: Presented by:
Drive Paper Out of Your Processes:
4 Tips to Digitize and Automate
Document-Intensive Workflows
Presented September 9, 2015

About AIIM
AIIM is the Global Community of
Information Professionals
AIIM believes that the information systems
we use at work should be
simple, secure, and available
anywhere, anytime, and on any device.
Our mission is to improve organizational
performance by empowering a community
of leaders committed to information-driven
innovation.
Learn more at www.aiim.org

AIIM Presents:
Drive Paper Out of Your Processes:
4 Tips to Digitize and Automate Document-Intensive Workflows
Host: Theresa Resek
Director
AIIM
Richard Medina
Co-Founder & Principal Consultant
Doculabs
Pete Stein
Vice President Capture and Intelligent Data
Novitex

Introducing our Featured Speaker
Richard Media
Co-Founder & Principal Consultant
Doculabs

Agenda
1. When to digitize and automate
2. How to leverage the latest advances in “upstream” capture
3. How to leverage the latest advances in “downstream” capture
4. How to plan and manage your capture operation
• When does it make good business sense?
• Whether to do it yourself or outsource

About Doculabs
Doculabs is a strategy consulting firm; our clients rely on us to help them improve the
way they manage information. We provide services such as developing strategic
roadmaps and business cases, program management, and content migration assistance.
Our consultants are experts in helping clients manage content such as Office documents,
web content, email, customer communications, and records to improve operations,
lower costs, increase revenue, and reduce risk.
Differentiators
• 20+ years of information management experience
• Objective recommendations
• Provide empirical data from over 1,200 engagements
• More than 550 customers in financial services, insurance, energy,
manufacturing, and life sciences

WHEN TO DIGITIZE AND AUTOMATE

Detailed Process Flow: Current State Example

Modeling a Loan Application Process

HOW TO LEVERAGE THE LATEST
ADVANCES IN “UPSTREAM” AND
“DOWNSTREAM” CAPTURE

The Mess: Upstream and Downstream Capture

So What’s the Problem?
1 No consistent, enterprise-standard
process for ingesting documents
2 No easy way to upload electronic
documents
3 No online-fillable dynamic forms
4 E-signatures aren’t integrated (no
click-to-sign for customers)
5 Indexing and vetting are manual
6 High percentage of submissions are
out of order – requiring manual
exception processing by Operations
staff
7 Hard to scale and maintain

Improving Upstream and Downstream
Document Capture: Input Channels and Formats
Scanners,
MFPs
E-signEmail Mobile
Device
Paper Fax
Users
(branch, field, operations staff)
Customers
ExceptionHandling
ExceptionHandling
Business
Processes
Document
Repositories
Digital Documents
(hard drive, shared drive)
Business
Applications
DOCUMENT PROCESSING PLATFORM
Image Processing/Enhancement
Other Automated Recognition
and Indexing (e.g. OCR, form ID)
Out-of-Order Processing/
Exception Handling
Notification/Confirmation
Release
Manual Indexing
Data Validation Quality Assurance
Electronic
Forms
Monitoring of Document
Processing
Barcode Recognition and
Automated Indexing
Document Vetting
Operations Staff
Some exceptions are routed to a
business process for resolution.

Key User Capabilities for Document Input
• Any user (branch staff, field staff, customers) can submit documents in any
format (paper or electronic) via multiple mechanisms (e.g., scan, email, fax,
digital upload) into the centralized capture platform for consistent
processing
• Customers can securely upload
electronic documents directly via
the online banking web site or a
mobile app
• Customers can fill out forms
electronically online and sign
them using a “click-to-sign”
approach
Scanners,
MFPs
E-signEmail Mobile
Device
Paper Fax
Users
Customers
ExceptionHandling
ExceptionHandling
Business
Processes
Document
Repositories
Digital Documents
Business
Applications
Exception Handling
Release
Manual Indexing
Electronic
Forms
Processing
Automated Indexing
Document Vetting
Operations Staff

Key Benefits
Scanners,
MFPs
E-signEmail Mobile
Device
Paper Fax
Users
Customers
ExceptionHandling
ExceptionHandling
Business
Processes
Document
Repositories
Digital Documents
Business
Applications
Exception Handling
Release
Manual Indexing
Electronic
Forms
Processing
Automated Indexing
Document Vetting
Operations Staff
1 Support for multiple channels of ingestion
(including paper, fax, and digital documents)
through a common input mechanism
2 Reduced complexity for users
3 Improved data quality
4 Reduced out-of-order submissions
5 Time savings for Operations in indexing and
document vetting
6 Tighter controls and visibility into document
processing status, metrics, etc.
7 All documents are processed consistently,
improving maintenance ease and scalability
8 Fewer “moving parts” means fewer potential
break points

HOW TO PLAN AND MANAGE
YOUR CAPTURE OPERATION

Benchmarking Best and Worst Practices
• Model and evaluate your opportunities in the ways just described
• Then benchmark your ingestion operations according to the following criteria:
Quality Mechanisms





Primary Processes
Supporting Processes
Primary Technology
Capabilities
Supporting Technology
Capabilities
Operations Business Continuity
Human Resources
Customer Satisfaction
Financial Management
Vendor Management
+

1. Primary Processes
Criteria
1. Mailroom (Receiving, Prep, Sort,
Certified Mail, Return Mail)
2. Doc Prep
3. Scanning
4. Fax
5. Indexing/Data Entry
6. Quality Assurance
7. Release/Commit
Best in Class
1. Process design is conducted prior to implementation of a new application
2. Product management takes an active role in advising clients on their options
and encouraging document redesign
Typical Challenges
1. Manual paper sorting; not using technology to reduce paper sorting and
complexities
2. Too many unique and complex manual processes

2. Supporting Processes
Criteria
1. Error and exception handling
2. Records management (paper storage
and retrieval)
3. Work scheduling
4. Customer service
Best in Class
1. Automated routing based on index assignment
2. Real-time reporting and exception monitoring
3. Work load balancing based on volumes, capacity, and SLAs
Typical Challenges
1. Manual work scheduling
2. Poor product management discipline
3. Most supporting processes are manual or supported by a variety of MS Office
tools

3. Primary Technology Capabilities
Criteria
1. Dedicated capture software
2. Auto-indexing via OCR/forms
recognition
3. Distributed capture and index
4. Acquisition channels (color scanning,
fax, email, EDI)
5. Workflow and automated routing
Best in Class
1. 30% to 60% of document volume is automatically indexed (1+ fields)
2. Distributed capture capabilities are provided to high-volume remote locations
3. Intelligent forms redesign
4. Bar codes, intelligent forms recognition, auto-processing, and workflow
Typical Challenges
1. Poor use of available technology to provide efficiencies
2. Too many scanning processes and ingestion technologies
3. Lack of automated tools for processing, reporting, and maintaining

4. Supporting Technology Capabilities
Criteria
1. Service-level or application billing
2. On-line reporting
3. Integration (“tight coupling”) with
downstream ECM repository and
workflow
Best in Class
1. Capture solution is multi-functional, with ability to front-end multiple systems
with tight integration, full error checking and control, real-time reporting,
queue workload management
2. End-user online reporting
Typical Challenges
1. Inconsistent reporting mechanisms
2. Lack of dedicated IT resources within the capture area
3. No on-line reporting or visibility provided to business units

5. Operations
Criteria
1. SLA conformance (cycle time, quality)
2. Device utilization
3. Employee productivity
4. Shifts/hours of operation
5. Percentage of temporary labor
Best in Class
1. Daily work volumes are monitored through various functions via online
reporting to identify bottlenecks
2. Temporary/contract labor represents 30% or more of workforce
3. Equipment, software, and staff utilization level are reviewed quarterly
Typical Challenges
1. Equipment, space underutilized (in anticipation of volume spikes)
2. High number of “same-day” turnaround requirements result in excess capacity

6. Quality Mechanisms
Criteria
1. Item-level automated error tracking
2. Statistical manual sampling
3. Feedback reporting (closed-loop)
4. Certifications
Best in Class
1. Real-time, automated tracking of
quality statistics within each function
2. Third-party quality assessments via samples sent to external data entry firms
3. Six Sigma Black Belt quality reviews on a periodic basis
Typical Challenges
1. Limited ability to systematically diagnose problems using automation
2. Feedback from business unit customers is informal
3. Inability to effectively and efficiently scale the manual QA processes

6. Quality Mechanisms: Military Sampling Table
Military Standard 105E
Double Sampling AQL = 1.5%
Inspection Level = II
Normal
SAMPLE 1 SAMPLE 2
Batch Size Sample Size Accept
Go to 2nd
Sampling
Failed - Email
team leader
Sample
Size Accept Failed
2 - 280 20 0 1 2 or more 20 1 or less 2 or more
281 - 500 32 0 1 - 2 3 or more 32 3 or less 4 or more
501 - 1200 50 1 or less 2 - 3 4 or more 50 4 or less 5 or more
3201 - 10,000 125 3 or less 4 - 6 7 or more 125 8 or less 9 or more
10,000 - 35,000 200 5 or less 6 - 8 9 or more 200 12 or less 13 or more
Inspection Level = II Tightened
Go to 2nd
Sampling
Failed - Email
team leader
Sample
Size Accept Failed
Inspection Level = II
Reduced
Go to 2nd
Sampling
Failed - Email
team leader
Sample
Size Accept Failed
Normal to Reduce: Must pass quality
for 5 consecutive days
Reduce to Normal: If LOB FAILS 1 day
sample size will return to normal.
Normal to Tightened: If 2 of 5 consecutive days work for
the LOB are rejected, the sample size will be tightened.

7. Human Resources
Criteria
1. Training
2. Turnover/tenure
3. Variable compensation and incentive
systems
4. Management
Best in Class
1. Train all staff on each function to address
peaks in the flow of work
2. Retain only the staff that finds piece rate incentives attractive
3. Rotate management and supervisory staff across various functions to increase
end-to-end process knowledge
Typical Challenges
1. Inability to introduce incentive systems
2. Diversity of work mix extends training period and limits use of temporary staff

8. Customer Satisfaction
Criteria
1. Business unit satisfaction (internal
customer)
2. IT satisfaction
3. Compliance/internal audit satisfaction
4. Customer satisfaction survey methods
Best in Class
1. Understand the dynamics between customer
satisfaction and unit costs
2. Actively solicit input via surveys and phone interviews, and statistically monitor
progress
Typical Challenges
1. Lack of regularly scheduled customer surveys
2. Need to increase promotional efforts internally

9. Financial Management
Criteria
1. Application / service level pricing
2. Reinvestment levels / Profit levels
3. Job costing
4. Variable pricing (based on SLA or
time period)
Best in Class
1. Applications are variably priced based
on supply and demand
2. Costs are tracked by application to monitor contribution margin
3. New investments are focused on software automation rather than equipment
Typical Challenges
1. Too many manual tools and man-hours to create the financial analysis
2. Pricing does not sufficiently vary by service level
3. No significant investment in new technologies to improve process and reduce
overall cost

10. Vendor Management
Criteria
1. Centralized relationship management
2. Measurement, review and evaluation
processes
3. Contracting process
4. Escalation process and issue resolution
Best in Class
1. All vendors are accountable to SLA
performance, and incentives and penalties
are used
2. Contracts are renewable annually to encourage renegotiation and review
Typical Challenges
1. Not fully leveraging the capabilities of the current vendors
2. Internal IT unit is not treated or managed as a vendor formally, with regular
performance reviews, goal setting, etc.

11. Business Continuity
Criteria
1. Documented strategy, policies and plans
2. Site redundancy/dedicated backup
location
3. Third-party backup site
4. IT system availability
Best in Class
1. Business continuity exercises are
conducted twice a year
2. Manual, paper-based processing is conducted once a year
3. Critical and non-critical documents are identified and prioritized for business
continuity
Typical Challenges
1. Capture process is not considered a high priority for the overall BC plans
2. System incompatibilities limit the number of BC options available or result in
workarounds and added cost

Doculabs Consulting Services doculabs.com
Doculabs Maturity Assessment
Benchmark your capabilities against your peers
• 20 years of industry data included in the study
• Financial Services and Insurance are the primary data points
Doculabs Gap Assessment and Validation
Will your plan work?
• Reviewed 100’s of plans similar to what you are working on
• Seen the warts and the pitfalls that you are likely to face working on the first
time effort
Doculabs Strategy and Roadmap
Build your plan for the future
• Understand the key requirements of your organization translated into
document management capabilities
• Build a vision that you will sell to the leaders and investors in your program

NEXT STEPS…

Introducing our Sponsor Speaker
Pete Stein
Vice President Capture and
Intelligent Data
Novitex

CAPTURE VOLUME
BY FORMAT:
• Paper approx. 60%
• Electronic approx. 30%
• Fax approx. 10%.
• Electronic growing faster
GOING DIGITAL
VS. PAPER:
• Although there is a shift away from legacy
systems and processes, the lack of management
directives are slowing migration.

REASONS TO GO DIGITAL:
• Search and share documents
• Faster customer (internal, external) response times
• Record security and regulatory compliance Reduced physical space
• ROI benefits still difficult to achieve in general backfile conversions.
• Focus on high value, high-touch documents
• Acceptance of cloud capture deployment as viable and a secure solution growing
• User rate approx. 12% in 2015; expected to grow to 20% in 2016 and 25% in 2017

Mobile Capture and Content Access
• High degree of recognition of value
• Still low levels of planning and activity
• Privacy / security concerns are large factors
in slow adoption

Scan and index models:
• On-site
• Off-site / near-site
• Hybrid
Each provide different benefits.
• Hybrid is most preferred for a balance of costs and compliance support
• Off-site / near-site for cost containment and security
• On-site for compliance support and convenience
Current growth trend:
1. Hybrid
2. Off-site / near-site
3. On-site

RESULTS:
• Established tight controls for document processing.
• Reduced headcount by 30 percent during the first phase. Plan to continue to optimize labor.
• Improved processing time by 4X.
Leveraging a best-site, hybrid approach
CLIENT:
A healthcare provider of Medicare and Medicaid managed care plans for approximatively 4 million members.
CHALLENGE:
The client was manually entering information from its members and subscribers’ correspondence around claims and open enrollment. In an
attempt to improve turnaround times, the provider hired a vendor to manage the processing of these documents. However, this did not
solve the client’s inefficient workflows and also resulted in lost member information.
SOLUTION:
We developed a cloud-based, hybrid scanning model that enables us to scale up and down as volumes drive processing. We automated the
capture of data as it arrived through physical mail and digital communications from various departments. Previously, our client was
collecting documents, printing them and then scanning them. With our process and best-in-class technology, we eliminated this efficient
workflow. Once documents were captured, we stored the information in our private, secure cloud, and indexed it at our Windsor, Conn.,
production center, providing cost-efficient, hybrid approach. The intelligent data was then automatically entered into our client’s content
management system, enabling faster, easier decision making. Our end-to-end reporting capabilities provided complete visibility into each
document’s workflow, offering our client a “Work in Process” view of their documents throughout processing.

To learn more, visit Novitex.com or contact us at
marketing@Novitex.com
30 YEARS
Of Industry Experience
9,000
On-the-ground Employees
FORTUNE 500
Client Base
1,400
Client Sites
6.6 BILLION
Annual Multi-channel Transactions
Thank You!

QUESTIONS?

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