Finance Transformation: Finance Transformation:

E di G l f R d d C &E di G l f R d d C &Exceeding Goals for Reduced Cost & Exceeding Goals for Reduced Cost & EfficiencyEfficiency

Dr Ido SchechterDr Ido SchechterDr. Ido SchechterDr. Ido Schechter

CEO, Top Image SystemsCEO, Top Image Systems

TIS Profile

Market Leader in end‐to‐end Intelligent Document Recognition (IDR) solutions to automate Document and g ( )Business Processes

19 years in the information management business

Listed on NASDAQ since 1996 (TISA)

Offices in Israel, Europe, America and Asia Pacific:– Singapore Hong Kong Shanghai Japan Australia– Singapore, Hong Kong, Shanghai, Japan, Australia

– Europe: UK, Germany, Italy, Spain, France, Benelux

– America: USA & Latin America

– Israel: HQ, R&D

Challenges: Diff Document Structures

Structured Semi‐Structured Unstructured

Office Docs PDFsWeb Pages Image filesText filesEmail

Intelligent Document Recognition

• It says “invoice” in 3 places– So it’s probably an invoice

• The number “21007250” appears nearest the words “Invoice No.”

– So it’s probably the invoice number

• The total column figures add up– So the line items are probably right

How eFLOW achieve “Optimal Data Accuracy”

Quality of Base OCR DataPage Level Multi-Engine VotingField Level Engine Tuning

ICR A ICR B ICR C

*oshua Jo*hu* J*sh*a

VotingVotingMethod

Joshua

Easy adjustments and enhancements to the modular, transparent workflow, p

DynamicLearning

Automatic Routing

Input into the system

Automatic recognitionand validation

Manual Completion

Export to theERP-System

eFLOW Controller to monitor and administer the entire system

Auto. Routing to Export (SAP) of invoices, where everything was recognized

Learning supports ongoing increase in recognition ratesg pp g g g

Workflow can be flexibly expanded and changed (i.e. for other document types)

Manual Invoice ApprovalAccounts Payable ProcessManual Invoice Approval

Receive Invoice atAP dept

Sort Invoice by

Cost center, Di i i

Send invoiceTo the

Appropriate APt ti

Invoice isStamped/

Annotated/h t i dAP dept. Division… representative photocopied

AP Rep Log/ C d ApproveAP Rep. Scans invoice

(header/footer/line items)

Log/ RegisterInvoice intoThe ERP)

Code Invoice

LinePhotocopy

ApproveInvoice

(by cost center)

Entercoding

& archive

AuthorizePayment

The Process with eFLOW

eFLOW

Receive Invoice atAP dept

Sort Invoice by

Cost center, Di i i

Send invoiceTo the

Appropriate APt ti

Invoice isStamped/

Annotated/h t i d

Automated Automated Automated

AP dept. Division… representative photocopied

AP Rep Log/ C d ApproveAP Rep. Scans invoice

(header/footer/line items)

Log/ RegisterInvoice intoThe ERP)

Code Invoice

LinePhotocopy

ApproveInvoice

(by cost center)

Entercoding

& archive

AuthorizePayment

Automated Automated Automated Automated Automated

Reporting

Internet Portal: Help Desk, Supplier supportInternet Portal: Help Desk, Supplier support

SaaS The BenefitsSaaS - The BenefitsLow initial costs and fast deployment lead to quicker ROIUsage based on-going costsUsage based on going costsCustomer retains control of the business processSolid system architecture ensures system continuity and redundancyredundancy

• Data transfer by secure protocol (SSL/Secure FTP)• 24/7 monitoring ensures operational continuity • Secure server bay hosted in data centre• Fire prevention measures• Managed upgrades

No hardware acquisition/management costsl b b d f f hSimple web based user interface gives access from anywhere

Application supported directly by the vendorFlexibility to introduce other components (Purchasing, C t t M t F P i )Contract Management, Forms Processing...)

SaaS – Data Capture

Outsource Provider

eFLOW Hosting

Environment

Customer Site(s)

SCANNING PROCESSINGDATA

COMPLETIONDATA EXCEPTION EXPORT

Solution DescriptionS p

12

Points to discuss before commencing -gFinance Transformation

ROI – financial, service, HR, visibility aspects

RTL – model

Per click, rent, rent to own, ,

Person on site

Knowledge base of the application

P SI BPO / SAASPartners - SI or BPO / SAAS

Maintenance and upgrades/updates

Technology

Length of implementation

Vision

ies

Stu

d C

ase

omer

sCu

sto

C

Project requirements

Die Österreichische Post ist Österreichs führender Dienstleisterin der Postbeförderung. Sie wurde am 3. März 1999 rechtlichverselbständigt. Zu den Hauptgeschäftsbereichen der Öster‐

• Mailroom‐projects as UNIQA insurance

• Invoice and PO Projects asverselbständigt. Zu den Hauptgeschäftsbereichen der Öster

reichischen Post AG zählen die Erbringung von Leistungen desPost‐ und Paketdienstes, sowie die Abwicklung von Finanz‐geschäften in Kooperation mit dem langjährigen PartnerBAWAG P.S.K.. Der Bereich Postautodienst wurde rückwirkend

• Linde, ABB, Telekom, Hutchison, Angst and Pfister

• Total volume BAWAG P.S.K.. Der Bereich Postautodienst wurde rückwirkendmit 1.1.2000 abgespalten. Im Zuge einer marktadäquatenSegmentierung wurden die bestehenden Geschäftsfelder Brief,Filialnetz, Infomail, Kurier.Express.Paket (KEP) und Medienpostin die Divisionen Brief, Paket & Logistik und Filialnetz

> 100 Mio pages / year

l ti, gzusammengefasst.

solution

• TIS / BT First Enterprise Mailroom

Austrian Post AG1010 Wien

www.post.at

A Leader in High Volume Projects

India Census 2002 ……………………Over 500 million images (15 sites)

British Petroleum Europe Over 400K invoices/year (2 sites)British Petroleum, Europe……….… Over 400K invoices/year (2 sites)

3M, Europe …………………………… Over 1M invoices/year(Up to 8 sites)

Deutsche Post, Germany……………1.2 million images/day

Czech Post …………………………………1 million images/day (on going)

FedEx, USA ………………………………62.5 million forms/year (on-going)

Slovak Post, Slovak Rep. …………30 million images/year (on-going)Slovak Post, Slovak Rep. …………30 million images/year (on going)

Social Security Admin., USA ……55 million forms/year (on-going)

Sanlam Insurance, South Africa ……7.5 million images in 90 days

Brazil Census 2000 …………………330 Million forms in 100 days

Vietnam Census 2009 ……………. 65 Million forms in 100 days

Requirements:

40 Millions docs/yearHMRC (IRS)HMRC (IRS)BPO of UK Tax Benefits & Claims

Products:

ll d leFLOW All modules

an operator to open, extract,identify, prep, capture, orient,

d di

Batchin IEM Format

read, sort, create an audittrail and output mail content

in one step.

L i ll ‘lik ’

Chart Legend

One unstructured physicalbatch created for every

batch. Data ImportFunction

MS SQLDatabase

Logically groups ‘like’transactions to create virtual

batch views.

S is a stubC is a checkFP is full page (may or may

not require data entry)CC is credit card applicationCR is correspondenceI is an invoiceO is an order

Workflow MultipleOperators

UnstructuredPhysical Batch

Virtual BatchView

1. S - C

2. FP - C

3. S - S - S - C

4 S C

3. S- S - S - C5. S- C - C - C

1. S - C2. S - C Singles

Multiples4. S - C

5. S - C - C - C

6. FP - FP- FP - C

7. S - S - C

8. I - CC - CR

9. O - CC

2. FP - C6. FP - FP -

FP - C

8. I - CC - CR9. O - CC

7. S - S - C

Full Pagew/ Check

Multiples

Non-Financial

Trans.

ICR Flow

System Capabilities– Fast, efficient and accurate forms processingast, e c e t a d accu ate o s p ocess g– Flexibility in building validation rules, external database

validations can be incorporated with ease (e.g. zip code validation)

– Ease of creation/modification of templates (logical or physical)

– Easy additions of new applications in the flow– Easy implementation/modifications of business rules– Ease of data entry (option of contextual data entry)– Complete visibility and control of forms at all steps of the

process– Significant reduction of error rates

US Social Security Administration

• Requirements:

W2 W3 d M diAdministration • W2, W3 and Medicare forms

• 55+ Million forms in 6 months

• 30% manually capturedy p

Products:• eFLOW

Achievments:•95%+ forms are automatically processed•Over $1.5M yearly savings

Requirements

BMW Financial Services Case Study

Requirements• post office outsourced to

XGS in Munich• complete solution for

mailroom workflow

From individually creating individually tailored leasing plans to providing flexible financing packages and always

• > 400 different document classes

• 5 mio pages/year

financing packages, and always based on expert investment advice, BMW Financial Services is ready to assist you with your fi i l d

TIS solution• eFLOW4 Integra/ Freedom

and Smart• Interface to ITYX mailroom

financial needs.

• Located in 53 countriesworldwidee ace o a oo

workflow/ Email response

A d 500K USD

• In operation since 1971

Around 500K USD

BMW Bank GmbHHeidemannstrasse 16480788 Mü h80788 Münchenhttp://www.bmwbank.de

Preparation Post

customers traders

Mail/MediaTrix

Fax

WorkflowHi M di T i

Web/PdfHier: MediaTrixContracts Applications

Archiv

Komm.

Prozess eFlow

Flow: daily mailFlow: daily mail

Flow: Online Documents

Flow: late scanning

Requirements:

• Automating incoming mailroom • Over 100.000 income document • Various sources: paper, fax,

XML and email• Main goal - reduce theMain goal reduce the

processing time

Products:•Smart (eFLOW3)

Dutch Department of Employee Benefits

•Smart (eFLOW3)

Achievments:

•Reduction of FTE’s involved in document processing by 50%•Shorter process throughput time and lower error rates•A single platform instead of g pmany small solutions allows lower operational IT costs

Requirements:

1,000 docs/weekRevenue & benefits claimsERP – Oracle

Products:

eFLOW Integra

Requirements:

Process 388,000 Pages / Day, g yAutomaticaly reading and checkingMore than 250 validationsComplex custom stations150 clients connected to one serverUp to 3000 pages/Batch

Irish Census 2006Up to 3000 pages/Batch

Solution:

• eFLOW• Finish processing

15,000,000 pages In 5 months

• 50% saving in manpower50% saving in manpower in comper to 1996. 12% saving in comper to 2002

Saving of 25%

S i fSaving of ~50%

(Source: CSO – Central Statistic Office Ireland)

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Requirements:

3,000 docs/dayInvoice processingInvoice processingERP - OracleOne site to support all Defra offices

Products:

eFLOW InvoiceeFLOW Invoice Reader

Requirements:

6,000 docs/weekI 30 000 dIncrease to 30,000 docsVarious formsERP - SAP8 agencies across DfT

Products:

b leFLOW Ability

Requirements:

35,000 docs/yearA li ti fApplication forms 1-7 page documentsERP - Oracle

Products:

eFLOW Integra

Requirements:

3.5 million docs/yearExam papersExam papers

inc GCSE/A Level43 completion stations7,000 schools & colleges

Products:

eFLOW Integra

Requirements:

12 million docs/yrU 18 illi dUp to 18 million docsBPOMulti doc formatNumerous ERP systems

Products:

l feFLOW PlatformeFLOW Invoice Reader

• Requirements:

26 countries project with eFlow Ability

• 2 SAP insttallations• 1 flow for both invoices

and vendor machines contractcontract

Products:• eFLOW InvoiceReader• eFLOW Ability for SAP

What next? :•Rolling out to all the countries throughout 2010

Thanks…………Thanks…………Questions, comments ?Questions, comments ?

Dr Ido SchechterDr Ido SchechterDr. Ido SchechterDr. Ido Schechter

CEO, Top Image SystemsCEO, Top Image Systems