This document provides an overview of developing a business case for automation opportunities in deduction management. It discusses identifying opportunities by analyzing key processes like deduction processing, cash application, and sales agreements. Specific improvement areas are highlighted like managing deduction documentation and validation of trade promotion claims. The document also covers quantifying the opportunities by calculating current operational costs and estimating potential cost savings. It demonstrates calculating return on investment by determining implementation costs versus estimated savings. Finally, it provides a sample business case template for identifying sub-processes, improvement opportunities, and modeling potential benefits.
Présentation du secteur TIC : Composition, spécialisations, forces, faiblesses, opportunités, menaces, projets. Comparaison avec le secteur TIC alsacien. Présentation de la Charte eTIC (Exposé à l'Université de Strasbourg, à l'attention des étudiants en Master 2 Commerce Electronique et des entreprises du Cluster RhénaTIC)
La veille Du concept à la réalité : Culture, Méthode et OutilsLina Ben Brahim
Dans un monde ou on accorde une importance particulière à l’information, de nouveaux métiers ont pris naissances. On parle, aujourd’hui de, cabinet de veille, expert en veille, veilleur, équipe de veille, expert de l’information, chargé de veille, etc.
Présentation du secteur TIC : Composition, spécialisations, forces, faiblesses, opportunités, menaces, projets. Comparaison avec le secteur TIC alsacien. Présentation de la Charte eTIC (Exposé à l'Université de Strasbourg, à l'attention des étudiants en Master 2 Commerce Electronique et des entreprises du Cluster RhénaTIC)
La veille Du concept à la réalité : Culture, Méthode et OutilsLina Ben Brahim
Dans un monde ou on accorde une importance particulière à l’information, de nouveaux métiers ont pris naissances. On parle, aujourd’hui de, cabinet de veille, expert en veille, veilleur, équipe de veille, expert de l’information, chargé de veille, etc.
Version DRAFT d'une formation Data Scientist que j'ai conçue à partir de sources diverses (voir références bibliographiques à la fin de chaque diapositive).
La formation est destinée aux personnes possédant des bases (~BAC+2) en statistiques et programmation (j'utilise R).
Je reste ouvert à tout commentaire, critique et correction. Je continuerai à mettre à jour les diapositives et à en ajouter d'autres si j'ai le temps.
SAP Financial Accounting - Business Process DocumentMahmoud Mohamed
Business Proce Doc of one of My SAP Financial Accounting Projects on IDES Client 800 - The purpose of my creation of these documents, Maybe the documents show my skills This may help me to get a better chance to evaluate my skills and get a job opportunity
Control Your Practice and Your Future. Today\'s revenue cycle encompasses countless activities in your practice. See how ALN can help you manage your revenue cycle and turn your good practice into a great business.
Version DRAFT d'une formation Data Scientist que j'ai conçue à partir de sources diverses (voir références bibliographiques à la fin de chaque diapositive).
La formation est destinée aux personnes possédant des bases (~BAC+2) en statistiques et programmation (j'utilise R).
Je reste ouvert à tout commentaire, critique et correction. Je continuerai à mettre à jour les diapositives et à en ajouter d'autres si j'ai le temps.
SAP Financial Accounting - Business Process DocumentMahmoud Mohamed
Business Proce Doc of one of My SAP Financial Accounting Projects on IDES Client 800 - The purpose of my creation of these documents, Maybe the documents show my skills This may help me to get a better chance to evaluate my skills and get a job opportunity
Control Your Practice and Your Future. Today\'s revenue cycle encompasses countless activities in your practice. See how ALN can help you manage your revenue cycle and turn your good practice into a great business.
Banking Solutions: Managing Customer Data to Improve EfficiencyIBM Banking
IBM banking front office solutions help banks solve their enterprise customer management issues; manage data effectively to create a single view of the customer and leverage opportunities of up-sell and cross-sell.
Wealthplanned! Financial Plannning and Wealth Management softwareCMC Ltd.
WealthPlanned is INdia's 1st integrated Financial Planning and Wealth Management solution on cloud. It is also available on Enterprise model. From CMC Ltd., a TATA group company
ex of my work for a client: Wealthplanned presentationPravin Gandhi
- Enjoyed branding Wealthplanned (tm of CMC Ltd.) as "Art of Making Your Clients Affluent"
- Packaged an integrated offering of Financial Planning and back office Wealth Management software
- on in-house or cloud platform;
- created awareness of product through linkedin and social media,
- designed promotional material
** this presentation is freely distributed on online media by client for procuct awareness **
We will examine how to create a cost benefit analysis document that clarifies your customer’s problem, explains your intended solution, and details the work required. We will break down costs of the current state and future state compared to forecasted benefits to show payback of the solution over time. This session will guide you through a simple process to help you understand how to calculate and communicate the business value of your SharePoint solutions.
Mobile Convention Amsterdam 2012 - Managing Mobile ChaosVirtual Affairs
Vraag je je af hoe je de project- en beheerkosten voor apps kunt verlagen? Hoe je een multi-channel of multi-device beleid managed? Hoe je applicaties veilig kunt koppelen aan complexe back-end systemen? Hoe de mobiele chaos te managen? Op 8 mei gaven we antwoord op o.a. deze vragen tijdens de Mobile Convention Amsterdam.
Mobiele toepassingen worden momenteel bijna altijd ontwikkeld per besturingssysteem, zoals Android, iOS, BlackBerry en Windows Phone. Naast het feit dit hoge projectkosten en een relatief lange ontwikkel heeft, is vooral het beheer een uitdaging.
Virtual Affairs en Kony leggen uit hoe deze mobiele chaos te managen. Het is mogelijk een mobiele applicatie te ontwikkelen die werkt voor alle benodigde besturingssystemen en apparaten (smartphones, tablets, kiosken en desk-/ laptops) tegen de laagste total cost of ownership.
Learn about Voice-of-the-Customer business practices:
* This report defines, explores the potential benefits, and illustrates a planning methodology for VOC
* Presents findings from a Best Practices in VOC study
* Explores some emerging VOC technologies
Similar to How To Develop A Business Case For FSCM (20)
1. Developing a Business Case
SAP FSCM Seminar
Jessica Butler
Principal
Attain Consulting Group February 2011
jbutler@attainconsultinggroup.com
2. Agenda
• Introduction
• Identify the Opportunities/Improvements
• Quantify the Opportunities/Improvements
• Develop the Return on Investment (ROI)
• Sample Business Case
Attain Consulting Group 2011 – Developing a Business Case
3. Introduction
What is a Business Case?
Attain Consulting Group 2011 – Developing a Business Case
4. Introduction
Definition
A business case captures the reasoning for initiating a project
or task. It is often presented in a well-structured written
document, but may also sometimes come in the form of a
short verbal argument or presentation
Contains 3 Key Components
• Identify the Opportunities/Improvements (What am I going to get?)
• Quantify the Opportunities/Improvements (What is it going to cost?)
• Develop the Return on Investment (What is my Payback?)
Attain Consulting Group 2011 – Developing a Business Case
6. Identify the Opportunities/Improvements
How do you know what opportunities or improvements are
available?
• Internally driven: Identified need or pain point – search
for solution
• Externally initiated: Hear about a solution – creates a
previously unknown opportunity
Attain Consulting Group 2011 – Developing a Business Case
7. Identify the Opportunities/Improvements
Deduction management automation
TOPIC
Deduction Processing
Cash Application / Remittance Processing
Sales Agreements
Attain Consulting Group 2011 – Developing a Business Case
8. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Managing Pre-Deduction Notification Information
Gathering Supporting Documentation
Preparing Customer Correspondence
Deduction Processing
Credit / Debit Memo Matching
Credit Memo Approval
Cross Functional Workflow & Collaboration
Attain Consulting Group 2011 – Developing a Business Case
9. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Use of Bank Lockbox Services
Cash Application /
Manipulation of Remittance Info. Prior to Posting
Remittance Processing
Reason Code Mapping
Attain Consulting Group 2011 – Developing a Business Case
10. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Importance of Program / Claim Validation
Sales Agreements Validation Drivers
Validation Process
Attain Consulting Group 2011 – Developing a Business Case
11. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Managing Pre-Deduction Notification Information
Gathering Supporting Documentation
Preparing Customer Correspondence
Deduction Processing
Credit / Debit Memo Matching
Credit Memo Approval
Cross Functional Workflow & Collaboration
Use of Bank Lockbox Services
Cash Application /
Manipulation of Remittance Info. Prior to Posting
Remittance Processing
Reason Code Mapping
Importance of Program / Claim Validation
Sales Agreements Validation Drivers
Validation Process
Attain Consulting Group 2011 – Developing a Business Case
12. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Managing Pre-Deduction Notification Information
Gathering Supporting Documentation
Preparing Customer Correspondence
Deduction Processing
Credit / Debit Memo Matching
Credit Memo Approval
Cross Functional Workflow & Collaboration
Use of Bank Lockbox Services
Cash Application /
Manipulation of Remittance Info. Prior to Posting
Remittance Processing
Reason Code Mapping
Importance of Program / Claim Validation
Sales Agreements Validation Drivers
Validation Process
Attain Consulting Group 2011 – Developing a Business Case
13. Identify the Opportunities/Improvements
Remittance processing
Improvement Area:
Manipulation of remittance information prior to posting
Common Situation:
• Customer’s remittance information needs manual processing prior to
posting deductions in ERP. For example:
– Deleting / adding columns
– Changing column signs
– Removing prefixes/suffixes from invoice numbers associated with
deductions
• Hours are spent manipulating unique formats and logic associated with
remittance information
Attain Consulting Group 2011 – Developing a Business Case
14. Identify the Opportunities/Improvements
Remittance processing
Automation Opportunity:
• Rules based engines
• Allows customer specific automated pre-processing
• Increases on-invoice hit rate / decreases manual remittance processing
• Offered as SaaS (software as a service)
– Minimal IT involvement
– Avoid in-house EDI mapping
Attain Consulting Group 2011 – Developing a Business Case
15. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Managing Pre-Deduction Notification Information
Gathering Supporting Documentation
Preparing Customer Correspondence
Deduction Processing
Credit / Debit Memo Matching
Credit Memo Approval
Cross Functional Workflow & Collaboration
Use of Bank Lockbox Services
Cash Application /
Manipulation of Remittance Info. Prior to Posting
Remittance Processing
Reason Code Mapping
Importance of Program / Claim Validation
Sales Agreements Validation Drivers
Validation Process
Attain Consulting Group 2011 – Developing a Business Case
16. Identify the Opportunities/Improvements
Sales agreement validation
Improvement Area:
Validation of Trade Promotion Claims
Common Situation:
• Customers take deductions with minimal program reference
• Matching & retrieving program documentation is labor intensive
– May be maintained in internal system
– May be available on customer vendor portals
• Programs may require Sell Through or Sell In information for validation
• Validation may required “clicking through” numerous screens and
supporting documentation may need to be manually analyzed for
validation
Attain Consulting Group 2011 – Developing a Business Case
17. Identify the Opportunities/Improvements
Sales agreement validation
Automation Opportunity:
• POS information can be routinely extracted from key customers and
customer reports generated using SaaS solution
• Claim documents and deal sheets maintained on customer vendor
portals can be automatically retrieved and pasted within ERP using
Web Aggregation technology
• Internal source documents can be:
– Retrieved and attached within dispute case
– Calculations can be performed automatically to streamline validation
processing
Attain Consulting Group 2011 – Developing a Business Case
18. Identify the Opportunities/Improvements
Deduction management automation
TOPIC AREA OF POTENTIAL IMPROVEMENT
Managing Pre-Deduction Notification Information
Gathering Supporting Documentation
Preparing Customer Correspondence
Deduction Processing
Credit / Debit Memo Matching
Credit Memo Approval
Cross Functional Workflow & Collaboration
Use of Bank Lockbox Services
Cash Application /
Manipulation of Remittance Info. Prior to Posting
Remittance Processing
Reason Code Mapping
Importance of Program / Claim Validation
Sales Agreements Validation Drivers
Validation Process
Attain Consulting Group 2011 – Developing a Business Case
19. Identify the Opportunities/Improvements
Deduction processing
Improvement Area:
Deduction Processing
Common Situation:
• External supporting documents require significant manual effort to
retrieve (e.g., PODs, claim copies)
• Internal supporting documents are stored throughout multiple systems
• Preparing customer correspondence (e.g., denial letters and dispute forms)
is labor intensive
• Credit memo approval process is multi-step process
• Limited cross-functional workflow & collaboration
Attain Consulting Group 2011 – Developing a Business Case
20. Identify the Opportunities/Improvements
Deduction processing
Automation Opportunity:
• Retrieval of supporting documentation, such as PODs and customer
claims can be can be automated using Web Aggregation technology
• Paper documents, such as customer claims, BOL can scanned and
indexed (using OCR technology)
• Internal source documents can be automatically attached to dispute
case eliminating need to manually retrieve
• Customer dispute forms can be auto-populated
• Workflow engine can be used to streamline & automate manual
processes:
– Credit memo approval process
– Deduction research by reason code
Attain Consulting Group 2011 – Developing a Business Case
22. Quantify the Opportunities/Improvements
Current Costs
1. Calculate Current Operational Cost
% of
Depart. / Benefits Number of Resources Full Time FTE
Role Division FTE Salary Markup Resources on Process Equivalent Total Amount
Attain Consulting Group 2011 – Developing a Business Case
23. Quantify the Opportunities/Improvements
Estimate savings
2. Estimate Min/Max Savings
% of # FTE FTE Min Max Min FTE Max FTE Avg FTE
Task/Sub-Process Time Resources Equiv Amt Automation Automation Savings Savings Savings
Attain Consulting Group 2011 – Developing a Business Case
25. Calculate the ROI
Estimated Savings
Minimum Maximum Average
OPERATIONAL EXPENSES
TOTAL VALUE CAPTURE
Implementation Costs
IMPLEMENTATION COSTS Provider Internal Total
First Year
Second Years onwards (Annual Recurring)
Return on Investment
Minimum Maximum Average
NET YEARLY SAVINGS
First Year savings
Second Year and Ongoing Savings
Attain Consulting Group 2011 – Developing a Business Case
27. Sample Business Case
Identify Key Processes
Break into Sub-Processes
Identify Improvement Opportunities
Model Potential Benefits
Summarize Results
Attain Consulting Group 2011 – Developing a Business Case
28. Sample Business Case
Identify Key Processes
Break into Sub-Processes
Identify Improvement Opportunities
Model Potential Benefits
Summarize Results
Attain Consulting Group 2011 – Developing a Business Case
29. Sample Business Case
Identify Sub-Processes
Process # Deduction Sub-Processes
1 Gather Supporting Documentation
2 Prepare Customer Correspondence
3 Credit Memo Approval
4 Cross Functional Workflow & Collaboration
30. Sample Business Case
Identify Improvement Opportunities
Deduction Sub-
# Improvement Opportunities
Process
A % of backup can be automated via Web Aggregation, scanning/indexing etc and automatically
attached to Dispute Case so Analyst does not have to retrieve manually. Relevant SAP
transactions such as Sales Order, Delivery Invoice, Return Credits can be linked to Dispute Case
Gather Supporting - Automatically retrieve and attach BOL or POD from carrier websites
1 - Automatically retrieve and attach debit memos from customer websites
Documentation
- Automatically retrieve check and remittance backup from bank lockbox
- Scan / index mailed documentation & attach to dispute via matching rules
- SAP A/R documents are automatically linked
- SAP SD transactions can be linked using the standard SD document flow logic
Standardized Repay package can be created in SAP via SmartForms including Cover letter and
Preparing Customer Denial Form that can be automatically populated and generated. Backup documentation such as
2
Correspondence Invoice Copy, Claim Copy and POD Copy can be automatically included in package based on
reason codes etc.
Convert complete credit memo approval process to electronic within SAP
Credit Memo - Analyst/Manager approval/reject process can be orchestrated within SAP workflow
3
Approval - Eliminates need for offline email, printing & approval process
- Automatically release credit memo and clear deduction upon approval
All communication via email/fax/mail between various departments & analysts regarding Dispute
Cases will be orchestrated via SAP Workflow so a user can "Forward" the Dispute Case within SAP.
Cross Functional
4 - Most offline email communication can be eliminated brought into SAP within Dispute Case
Collaboration
- Eliminate need for scanning or manually attaching back up documentation
- Eliminate need tor searching through email communication to review history
Attain Consulting Group 2011 – Developing a Business Case
31. Sample Business Case
Identify Key Processes
Break into Sub-Processes
Identify Improvement Opportunities
Model Potential Benefits
Summarize Results
Attain Consulting Group 2011 – Developing a Business Case
34. Quantify the Opportunities/Improvements
Quantify savings
Role Sub - Process Automation Rational
Division 1 operations comprised of 85% deductions & 15%
Deduction Supporting Documentation invoice collections. On the higher-end we are assuming 70%
Analyst Gathering Automation of Debit Memos and 80% automation of PODs. Max
Automation = (0.7 x .85 + 0.8 x 0.15) = 70%
Deductions: Auto-generate coversheet, customer sepcific claim
Deduction Customer Correspondence denial form, invoices, debit memo & POD copies etc.
Analyst Collection: Auto-generate collection letters, invoice copies and
POD copies. 70% of automation above
Deduction Productivity increase by converting the complete credit memo
Credit Memo Approval
Analyst approval process to electronic within SAP. Currently paper copies
are printed for approval or reports are reviewed manually
Productivity increase due to orchestrating the deduction
Deduction Inter-Departmental Workflow
resolution process within SAP workflow eliminating offline
Analyst & Collaboration
collaboration via email, scanning documents etc
Attain Consulting Group 2011 – Developing a Business Case
35. Sample Business Case
Identify Key Processes
Break into Sub-Processes
Identify Improvement Opportunities
Model Potential Benefits
Summarize Results
Attain Consulting Group 2011 – Developing a Business Case
36. Quantify the Opportunities/Improvements
Calculate ROI
Estimated Savings
Minimum Maximum Average
OPERATIONAL EXPENSES
Division 1 $ 157,987.50 $ 225,225.00 $ 191,606.25
Division 2 $ 164,500.00 $ 234,937.50 $ 199,718.75
Division 3 $ 223,234.38 $ 326,125.00 $ 274,679.69
TOTAL VALUE CAPTURE $ 545,721.88 $786,287.50 $666,004.69
Implementation Costs
IMPLEMENTATION COSTS HighRadius Internal Total
First Year $ 580,614.80 $ 76,428.00 $657,042.80
Second Years onwards (Annual Recurring) $ 74,400.00 $ - $ 74,400.00
Return on Investment
Minimum Maximum Average
NET YEARLY SAVINGS
First Year savings $(111,320.93) $129,244.70 $ 8,961.89
Second Year and Ongoing Savings $ 471,321.88 $711,887.50 $591,604.69
Attain Consulting Group 2011 – Developing a Business Case
37. Conclusion
“The sole role of a business case is that of a
communication tool, composed in a language that the
target audience understands and with enough detail to
facilitate decision making on his or her part.”
“The vast majority of unsuccessful projects fail not because
of poor project management, but because of poor decisions
with respect to the choice of projects. A good business case
helps to make right decisions and avoid horrible waste.”
Ilya Bogorad
Principal of Bizvortex Consulting Group
Attain Consulting Group 2011 – Developing a Business Case