VALUE Creating
T H R O U G H B P M
ABOUT
ABOUT Enterprise Concept was founded in 2005, based on the beliefs of the
founders that they can help others create value and change the way of
doing business. In order to set up the practice of those beliefs, the
founders, management and their followers embraced three major
innovative concepts: Decision Management System, Business Process
Management and Business Performance Management. All of them are
related to the new design of business logistics; therefore we consider that
our expertise is pure art.
The practical aim has been to bridge the gap between management
consulting and technological execution.
WE CREATE VALUE, POWER AND
PERFORMANCE.
We consider every single client an outstanding asset
and a pillar of our common development.
25 companies have chosen us
HISTORY
HISTORY D E V E L O P I N G M I N D S E T S
2005: CONSULTING 2012: SCIENCE 2014: DESIGN
We are committed to the human-centered approach to innovation that draws from our mission to integrate the needs of people, the possibilities of technology, and the requirements for business success.
2013: QUALITY
ORGANISATIONAL
CAPACITY
IMPACT W E C R E A T E I M P A C T T H R O U G H P R O C E S S M A N A G E M E N T D E S I G N
Enterprise Concept brings together a team of 32
Business - IT Certified Senior Consultants, trained
to provide Strategic Consulting Services throughout
all stages of implementation: from Business
Analysis, to Business Process Optimization and
Change Management.
CREATING CONDITIONS
FOR PROFITABLE
CUSTOMER BEHAVIOUR. Gathering 9 years of hands-on experience, the
company has evolved into a team of consultants
excelling at redesigning business models that
generate added value - by positioning technology
as the basic structure when creating BUSINESS
LOGIC.
EMBEDDING DESIGN
THINKING IN BUSINESS
1. CREDIT MANAGEMENT
2. RESTRUCTURING
UNDERPERFORMING ASSETS
3. CLAIMS MANAGEMENT
4. GARNISHMENT MANAGEMENT
5. CUSTOMER ONBOARDING
INCREASING VALUE
THROUGH OPERATIONS
IMPACT ON VALUE A C A S E B A S E D P E R S P E C T I V E
The Concept of Decision and its
THE OPERATIONAL
DECISION
Value is commonly related to:
1. COSTS (objective & subjective)
2. REVENUES (objective & subjective)
3. PERCEPTION (subjective)
THE CONCEPT OF VALUE
THE OPERATIONAL
DECISION
IMPACT ON VALUE
• Based on the group EBIDTA targets;
• The relationship between management and
shareholders;
• Limited and mostly irrelevant.
• Create and enforce the normative framework for the operational layers;
• The creator of the transactional costs and its components (enforcement
costs and measurement costs)
1. THE STRATEGIC DECISION
3. THE OPERATIONAL DECISION
2. THE ENFORCEMENT DECISION
MIN 60 %
“The increasing computing capabilities and the complexity have changed the structure of power inside business organizations.” ❞
DECISION: THE PRACTICAL LINKAGE BETWEEN BPM AND VALUE
• Small and many decisions happened in the normative framework;
• Responsible for the subjective (sunk & opportunity) and objective (costs rationally recorded) costs.
• Relevant as its cumulative effect
IMPACT ON VALUE 10 – 15 %
IMPACT ON VALUE MAX 20%
THE OPERATIONAL
DECISION
OPERATIONAL DECISION
ITS NATURE, IDEAS AND EVOLUTION
Since early 1990 the operational decision-making has changed its nature.
The classical theories for analyzing the operational decision-making
process such as expected utility theory (Blaise Pascal) and prospect
theory (Tversky & Kahneman) cannot address the new operational
decision-making. Because its normative structure, the operational
decision-making has become an institution. It can be analyzed using the
costs theories such as transaction cost theory (Coase & North).
1. A CHANGE IN NATURE
The behavioral aspects that should be addressed are the free-rider
problem and procrastination.
2. BEHAVIOURAL ASPECTS
The time and information represents the environment where the decision
takes place.
3. EVOLUTION
These aspects have important practical consequences.
The operational aspects of the organizational structure are the places where the routine processes happen (standardized, scientific or random). These processes dramatically influence the organization performances and its positioning the competition framework.
THE OPERATIONAL
DECISION
CASE-BASED
DECISION-MAKING
ARHITECTURE
ERP BI
SOFTWARE BEHAVIOUR
BPM
&
BEHAVIOUR
COST
TIME
EVENT
DATA
INFORMATION
DECISION
C1
C2
C3
C4
T1 T2 T3 T4
METHODOLOGY
1.THE DECISION AUDIT
2.THE MATURITY AUDIT
3.SUBJECTIVE & OBJECTIVE COSTS AUDIT
4.DESIGNING BPM (USING BPMN)
5.REDESIGNING THE DECISION NODES
6.TECHNICAL IMPLEMENTATION.
PRACTICAL ASPECTS FOR VALUE-BASED BPM
METHODOLOGY
1 2 3
4 5 6
DESIGN C R E A T I N G & C A P T U R I N G V A L U E
The concept of
DESIGN THINKING
WHAT IS DESIGN?
DESIGN THINKING
problem finding problem solving
doing the right thing doing the thing right
value creation + value capture
WHY DESIGN THINKING? Fundamental cultural differences...
DESIGN THINKING
problem finding problem solving
doing the right thing doing the thing right
value creation + value capture
DESIGN THINKING = VALUE
The Efficiency Movement: Outsourcing, Total Quality Management (TQM),
Six Sigma, Lean Manufacturing, Maximizing
Return on Assets, Corporate Redesign, Market
Segmentation, Licensing, Line Extensions &
Diversification, etc.
DESIGN THINKING
problem finding problem solving
doing the right thing doing the thing right
value creation + value capture
DESIGN THINKING = VALUE
Design is the one business discipline
whose primary concern is innovation. When design thinking becomes a core
competency, companies become more
nimble in the face of rapidly changing
markets and new competition.
DESIGN THINKING
problem finding problem solving
doing the right thing doing the thing right
value creation + value capture = advantage
DESIGN THINKING = ADVANTAGE
DESIGN THINKING
Technology Business
People & Human Values
Process Innovation: Manufacturing
Emotional Innovation: User interaction
and interface,
Relationships,
Marketing
Functional Innovation: Organizational Behavior
Marketing & Branding
DESIGN
THINKING AND
VALUE
CREATION
DESIGN THINKING
Technology Business
People & Human Values
Process Innovation: Manufacturing
Emotional Innovation: User interaction
and interface,
Relationships,
Marketing
Functional Innovation: Organizational Behavior
Marketing & Branding
DESIGN
THINKING AND
VALUE
CREATION
DESIGN THINKING
MRI Scan
Technology
Adventure
Frame
Cost Avoidance
Less sedations,
more patients
DESIGN
THINKING AND
VALUE
CREATION
DESIGN THINKING
MRI Scan
Technology
Adventure
Frame
Cost Avoidance
Less sedations,
more patients
DESIGN
THINKING AND
VALUE
CREATION
DESIGN THINKING
Image Credit: Stanford Design School
DESIGN THINKING:
A PARADIGM
SHIFT
TECHNOLOGY A N A C T I V I T Y B A S E D P E R S P E C T I V E
Business Process Management
TECHNOLOGY
optimize
control
standardize Processes are modeled and executed using dedicated technologies, in order to
orchestrate business activities and obtain relevant key performance indicators. Thus:
1. Real time visibility and control over data and business frameworks is achieved.
2. BPM manages existing systems and processes throughout the organizations IT
infrastructure using non-intrusive integration methods.
3. Using connectors, data I/O with legacy systems is performed synchronized or
unsynchronized enabling information consistency and structure throughout the
entire IT architecture.
4. Agility and adaptability in a controlled framework are enabled towards efficiently
adapting to new business strategies and goals.
Technology Dimensions
TECHNOLOGY
CONSULTING
1. Design the processes To-Be - flows, roles responsibilities
2. Design the models: user interfaces, reports
3. Intermediary and final Presentations & Validations of the concept with
the stakeholders
4. Training (concepts)
5. Design and validation of the business case (expected benefits)
TECHNOLOGY 1. Design to-be models: database structure and information flows
2. Simulations, mock-ups (forms)
3. Technical validation
PROJECT
MANAGEMENT
1. Planning and managing activities and project team
2. Documentation project activity
3. Notices towards stakeholders and team
4. Validate the design and functional specifications documents
5. Validation Planning and Implementation Planning - Milestones, Work
Breakdown, Risk Mitigation Plan, Change Management Plan
ACTIVITIES AT THE DESIGN STAGE
TECHNOLOGY
Charts future processes (optimized) and compared with the existing ones
New IT architecture
Roles and responsibilities in
the process
Optimized business rules /
new
Measurements - Estimates
of the future performance &
process level metrics
Implementation Plan
Risk Management Plan
Change Management
The proposed general
model
Business Case updated:
estimating benefits
Prime subscrise 2010
pondere
in total 2011
pondere
in total 2012
pondere in
total ∆ 2011/2010 ∆ 2012/2011
clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%
clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%
clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%
clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%
clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%
clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%
clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%
Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%
Activitate
Activitate
Activitate
Activitate
Activitate
Regulă
Iniţializare
Rezultat
Resurse
Resurse
Resurse
ResurseResurse
output/input
input
Company website
BPM Engine
SecurityCommunication Engine & DMS
Service Oriented Architecture / ESB*
WEBPortal
Accounting CRM App1 App2
Legacy systems
DESIGN & MODELING BUSINESS PROCESSES - RESULTS
TECHNOLOGY
ACTIVITIES IN THE IMPLEMENTATION PHASE
CONSULTING
1. Intermediate validations - user interface - technical
2. Elaboration of documentation: manual test scripts, support training
3. training users
4. Internal testing
TECHNOLOGY
1. Application development
2. Intermediate validations/ early prototyping
3. Intermediate and final tests
4. Integration with existing applications, configuration settings
5. Post Go-Live support
PROJECT
MANAGEMENT
1. Planning and managing project activities and team - see Plan
2. Documenting project activities
3. Notice towards stakeholders and team
4. Correlation with all areas of risk (eg other projects / areas impacted)
5. Preparation and release / Go-Live
6. Acceptance signature
TECHNOLOGY
THE BPM SYSTEM ENSURES CONTINUOUS OPTIMIZATION
The last two stages of the BPM cycle (at the end of implementation) are already preparing the start of a
new loop:
Measurement & Monitoring
processes results
(optimized)
Identify problems /
optimization potential Refining / reoptimization
New Reports and
Dashboards Meniu
Suport furnizori
My dashboards
Management facturi
Suport online
Conditii Generale
Ultimele noutati
Oportunitati
Evolutia numarului de receptii cu probleme pe ultimele 12 luni
New optimization projects
KPI
Duration
Cost
Errors
As-Is Target
Value
gap
gap
gap
Gap analysis
TECHNOLOGY
BUSINESS PROCESS ANALYSIS - RESULTS
Process Diagrams
Existing and future IT
architecture & required
integrations
Roles and responsibilities in
the process ("Ownership")
Current business rules
Measurements - Estimates
of the current level of
performance & process
metrics
User requirements and
functional specifications
(including reports)
The proposed general
model
Business case: estimating
benefits
V.1. Bugetpreliminar
TOP-DOWN
Bugetsubunitate
Bugetsubunitate
Bugetsubunitate
….PDOTPALTSRPASRPESFEZSPFPSALTLINVLREPLALT
V.2. Bugetcentralizat
BOTTOM-UP
Machete Planuri
Plan Investitii
Plan Achizitii
Plan Payroll
Plan Reparatii
Plan Formare
Plan Amortizare
Vizualizare plafoane aferente subunitatii / compartimentului
Completaremachete planuri*
Planificarebuget top-
down sialocare
plafoane
Centralizare automata a sumelor planificate la nivelulfiecarui plan si categorie de
cheltuiala din BVC
AC – Structuri centralizatoare
Subunitati / CompartimenteAC planificatoare
*Completarea
Planului de Payroll se va face de catreserviciul HR
Comparare/ Ajustare
BVC
AjustarePlanuri
1
2
3
4
5
6
vv
Web Server
(Apache Tomcat)
+
FTP Server
Suppliers DB Server
(Microsoft SQL Server)
Internal Firewall
External Firewall
DMZInternet
Stores, Buyers, Helpdesk
Accounting, Management
(Browser),
External Link
HTTPS
Internal Link
Internal
Network
JDBC
Send FTP files
Mega Image Servers
(Artemis, SAP)
Generate and Im
port
Linked Servers,
Generate and Im
port,
Web Services etc.
FTP
Server E-mail
Basic Security
Rules (TBD)
SMTP
Prime subscrise 2010
pondere
in total 2011
pondere
in total 2012
pondere in
total ∆ 2011/2010 ∆ 2012/2011
clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%
clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%
clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%
clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%
clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%
clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%
clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%
Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%
TECHNOLOGY
PROCESS ANALYSIS & REQUIREMENTS:
PROPOSED GENERAL MODEL
Draft a high-level model of the future process:
YesStop
Payment mngt
Invoice capture
Process StartCreate & Send
order
Placing & Receiving ordersCapturing Invoices
ComparisonInvoice Processing
Compensation Integration
Litigation Management
Litigation Management & Invoice clearing
Reception capture
TECHNOLOGY
PROCESS ANALYSIS & REQUIREMENTS:
PROCESS DIAGRAM
• Steps
• Roles
• Business rules
• IT systems involved
• Documents involved
• Materiality & Process Metrics
• Linked processes
TECHNOLOGY
DESIGN & MODELING BUSINESS PROCESSES - RESULTS
Charts future processes (optimized) and compared with the existing ones
New IT architecture
Roles and responsibilities in
the process
Optimized business rules /
new
Measurements - Estimates
of the future performance &
process level metrics
Implementation Plan
Risk Management Plan
Change Management
The proposed general
model
Business Case updated:
estimating benefits
Prime subscrise 2010
pondere
in total 2011
pondere
in total 2012
pondere in
total ∆ 2011/2010 ∆ 2012/2011
clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%
clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%
clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%
clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%
clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%
clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%
clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%
Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%
Activitate
Activitate
Activitate
Activitate
Activitate
Regulă
Iniţializare
Rezultat
Resurse
Resurse
Resurse
ResurseResurse
output/input
input
Company website
BPM Engine
SecurityCommunication Engine & DMS
Service Oriented Architecture / ESB*
WEBPortal
Accounting CRM App1 App2
Legacy systems
SOME CASES A V A L U E C E N T E R E D A P P R O A C H
Business Process Management
SOME
CASES
BPM FOR RETAIL PROJECTS
Invoice litigations management
General expenses management
Logistic Litigations Management
Document Management
Management and Financial Reporting
BPM FOR BANKING PROJECTS
Data Warehouse, Management and Financial Reporting,
US GAAP and IFRS Reporting, Credit Risk Pillar Methodology
Credit & Collection Management BASEL II – Operational Pillar
Back Office Management, Loan Management, SOA based BPM
Cross Selling, Predictive Customer Interaction, Cash Management
BPM FOR PHARMA INDUSTRY
Order Management
Debt recovery Management
Invoice litigations management
Document Management
Distribution management
BPM FOR TELCO INDUSTRY
Product Lifecycle Management,
Social BPM for Cohesive Customer Experiences
Regulatory Compliance, Agile Order Cycle Processes
Best Practice Alignment
Cross Selling, Predictive Customer Interaction
SOME
CASES
1. Increase the costumer oriented approach
2. Optimise the process of credit granting
The Client: Universal Bank in Romania; a network of over 250 subsidiaries
In the course of rebranding and launching new products
CREDIT MANAGEMENT
CONTEXT
OBJECTIVES
1. The thorough analysis of the Mortgage Credit Analysis Process
2. Process standardization for every credit type
3. Modifying the sales performance indicators and capturing the seller’s
information
4. Designing the TO BE processes – flow, roles, business rules, functional
specifications
5. Implementing the BPM solution to manage the entire flow
1. Long term needed to process the credit applications
2. Quantification for the individual performance management system
3. Uneven client experience quality (from one subsidiary to another)
THE PROBLEM
OUR APPROACH
Reengineering the creditation process for mortgage credits
SOLUTION
1. Reduced the processing time by 40%
1. Reduced the process cost by 50%
1. Transparency and increased flow control
– all cases can be monitored
BENEFITS
“To-Be“ Process
(and activities)
Flow Modeling
Developing
Specifications and
interfaces for every
role
SOLUTION
The restructuring flow steps were integrated as
different interfaces within the application
Specific interfaces were developed for every
role in the flow, incorporating role-specific
demands.
The interfaces have fields that are completed
or populated form the bank’s database.
According to the user's options, the flow is
automatically guided towards the next logic
step.
The restructuring solutions are based on a
predefined decisional tree (by credit type)
TIME 40%
COST 50%
MONITORING 100%
VALUE
SOME
CASES
GARNISHMENT
MANAGEMENT
1. A management system objectified into a BPM Platform that orchestrates the
entire garnishment activity through:
2. A consistent interface including all the roles involved in the process –
integrated with the internal systems of the bank
3. Standardization and automation of the communication and interaction
between roles/departments, teams
4. Traceable accelerated execution through process automation and
optimization
5. Capturing the processed documents generated inside the process
6. Archiving the documents into a Document Management repository,
integrated with the BPM platform
1. High costs associated to non-productive activities
2. Lack of traceability within the entire workflow
3. High probability for error encounters (communication, human, procedural,
managing exceptions, etc)
4. Long execution time needed for the garnishment procedure – quantified in
penalties applied to the bank
5. The risks associated to sanctions being applied to the bank in situations
when cases were dealt with inappropriately
THE PROBLEM
THE SOLUTION
1. The Garnishment Management Process was automated by more than 70%
2. More than 50% decrease in cost associated with the implementation of a single
garnishment
3. More than 90% decrease in human error
4. More than 90% decrease in applied sanctions penalties
5. Real time reports and performance indicators
6. Flexibility in terms of legislation adaptability
BENEFITS
AUTOMATION 70%
COST CUTTING 50%
HUMAN ERROR DECREASE 90%
APPLIED SANCTIONS DECREASE 90%
REAL TIME KPI'S AND REPORTING 100%
FLEXIBILITY AND ADAPTABILITY 100%
SOME
CASES
Business process automation and integration with existing systems was the
main requirement for aligning the existing processes into a solution capable of
solving imperfect business operations. It made it possible to:
1. Automate the process of cash register report generation and data sync in
core systems;
2. Compare and interpret data regarding sales, declared, end of day for all
cash registers in all locations;
3. Identify, label and close gaps in extracted data from cash registers;
4. Management of all payment methods accepted by the retailer (cash, card,
coupons and others);
5. Product return management;
The solution is designed to extract, interpret and compare data and turn it into
information. It then transfers the information to key users, which only have to
validate what the system already interprets and recommends (based on
business rules). The system also communicates with users event-based. It
interprets data, creates events and requires the user to take action through
automatic custom messages.
Modular Web-based solution: automatic data extraction, data sync with core
systems (ERP), files generation, reports generation, communication module (in
platform and email), user tasks (validation, data entry, file generating)
CASH RECONCILIATION
THE SOLUTION
BUSINESS CONCEPT
1. Reduced the cash register closing time by 90%
1. Daily and monthly statistics
1. Data transparency regardless of location
BENEFITS
TECHNICAL
ARCHITECTURE Up to 70 % less time spent daily for cash
register information management and up to 80
% overall automation.
BEFORE
• 20 reports handled
by users for each
shop (daily)
• 50 – 60 user daily
user tasks (mainly
excel, phone,
email)
TIME 90%
REPORTING 100%
MONITORING 100%
VALUE PROPOSITION
Hardware and Software requirements:
1. BPM Platform;
2. DBMS Platform;
3. Web Interfaces, BPM layer,
interoperable system database, with
ERP databases;
4. Web Server: 8GB RAM, 1 Quad
Core3.
PHASES - APPROACH
Defining business concept and creating
the application involved the following
steps:
1. Analysis;
2. Implementing and systems’
integration;
3. User Acceptance Testing & Training;
4. Deploy & Go Live;
5. Maintenance & Support.
NUMBERS
AFTER
• 1250 excel reports
generated daily;
• 10 user tasks per
day;
• 478805 payment
method reports
integrated;
SOME
CASES
The implementation of the Enterprise Concept Expense
Management Solution was fast and efficient with the client
quickly realizing increased performance and cost savings.
The BPM modules automated the following processes:
Invoicing, Provision, Ticket Invoice, Provision Notification,
Payment Notification.
The General Expenses Solution streamlined the retailer’s
entire Accounts Payable process, helping the company
pay its suppliers faster and strengthening its relationships
with them. The client can now see which suppliers they’re
using for what more clearly, allowing them to be more
strategic in getting the most out of those suppliers, as
opposed to just looking at individual buys every time.
GENERAL EXPENSES
MANAGEMENT THE SOLUTION
BUSINESS CONCEPT 1. Close cooperation with subcontractors
2. Standardization of products and services
3. Deployment of logistic solutions
4. Continuous cost reduction and 100% compliance with established
processes
BENEFITS
TECHNICAL
ARCHITECTURE
BEFORE
COST of processing 1 order:
2,45 EUR
Clearing orders team: 40 people
TIME for processing an incorrect
order: 60 days
TIME for processing a correct
invoice: 6 days
VALUE PROPOSITION
RETURN ON INVESTMENT
4 months after GO LIVE
AFTER
COST of processing 1 order: 0,55
EUR
Clearing orders supervisors: 2
people
TIME for processing an incorrect
invoice: 7 days
TIME for processing a correct
invoice: 1.5 minutes
• Enhanced spend leverage and strategic sourcing saved 16 million EUR
in fiscal year 2010.
• Enabled the client to reduce its cost per order by 70%.
• Improved cycle and delivery time 5-7 days, and invoices that
traditionally took 30 days to pay are now paid in minutes.
• Improved user productivity and helped the retailer achieve its goal of
shifting purchasing’s focus toward value creation and away from day-to-
day tactical buying activities.
• 90% reduction in operating costs
PHASES - APPROACH
Defining business concept and creating the application
involved the following steps:
1. Business Analysis
2. Invoicing Module
3. Provision Module
4. Reports
5. UAT
6. Go LIVE
1. Centralization and automation of all data
related to subcontractors, suppliers,
invoices, accounting and provisioning
2. Automating the process of bills and
contracts comparison by providing
automated validation through the system
3. Integration with all existing information
systems
4. Enabling controls through a strong
approvals workflow
5. Pre-defining the expense types and set
limits compliant with the organizational
policy
NUMBERS
1. Resolved bill and contract comparison - Store: 8,007,000 EUR.
2. Cost Savings – Warehouse: 4,079,000 EUR
3. Sourcing Cost reduction: 3,521,000 EUR
SOME
CASES
The solution started with the understanding the entire
lifecycle of an invoice inside the company's financial
processes. The analysis highlighted the segments of the
existing process that needed to be revised and improved.
It aimed to achieve a high level of automation concerning
human based activities. The departments involved in the
processes were: Merchandising, Compensation
Department, Financial and the Stores.
The Enterprise Concept Invoice Management Solution
provided the client with a simplified and automated tool
for monitoring, managing, verifying and routing invoices
for payment or correction.
INVOICE MANAGEMENT
AND LITIGATION
THE SOLUTION
BUSINESS CONCEPT
1. Maximized early-payment discounts by accelerating the retailer’s supplier
invoice management
2. Carrefour now benefits from earlier and more accurate knowledge of
current invoices for each store
3. Minimized administrative tasks for field managers
BENEFITS
TECHNICAL
ARCHITECTURE
BEFORE
COST of processing 1 invoice:
2,35 EUR
Clearing orders team: 40 people
TIME for processing an incorrect
invoice: 40 days
TIME for processing a correct
invoice: 3 days
VALUE PROPOSITION
RETURN ON INVESTMENT
3 months after GO LIVE
AFTER
COST of processing 1
invoice:0,75 EUR
Clearing orders supervisors: 2
people
TIME for processing an incorrect
invoice: 3 days
TIME for processing a correct
invoice: 1.5 minutes
5,000 invoices introduced in the system – daily.
800 suppliers receive daily e-mail reports on the status of payments
30% of suppliers NOW use the system to send electronic invoices
80% - the level of automation in the business process
1.5 minutes – average Invoice Processing time.
200 invoice-related tasks are handled daily to classify errors of price and
quality
4000 Order-Invoice cases are completed daily and integrated within the
company
30% - the level of improvement achieved during the year in cases of litigation.
PHASES - APPROACH
Defining business concept and creating the application
involved the following steps:
1. Business Analysis
2. Analysis - Integration
3. Implementing
4. Integration
5. UAT & Training
6. Go LIVE
1. Proven reduction in billing processing time
by up to 90% in the first month after
implementation
2. Productivity increase of 35% in terms of
invoices processed
3. Time to register an invoice reduced by up to
40 days
4. Cost savings; Reduction of errors and
elimination of paper leads to lower operating
costs
5. Performance Monitoring and Management
6. KPI monitoring, effective workload balancing
7. Invoice lifecycle monitoring and
management
NUMBERS
1. Resolved litigations value - Store: 4,323,000 EUR.
2. FTE Reduction (Full Time Equivalent): 9500 FTE = 237.500 EUR.
(Avg. Salary = 500 EUR
SOME
CASES
1. Guides users towards a standard procedure, whilst
eliminating fraud.
2. Views and solves the logistic litigation tasks (along
with information about reception and related
products)
3. Generates responsibility among reception
supervisors, transporters, warehouse workers.
4. Keeps a history of the decisions
5. Generates reports and statistics
6. Views and modifies user information
7. Provides technical support for solving the problems
and tasks associated with each user.
The Enterprise Concept Logistics Management
Solution provided the retailer with a tool to improve
the relationship between stores and warehouses, thus
having a direct impact on the relationship with
customers and the company performance indicators.
LOGISTICS
MANAGEMENT THE SOLUTION
FUNCTIONALITIES
1. Defined the accuracy of litigations from the first steps of the process
2. Created a database in which all information is stored.
3. Optimized and automated litigations communication methods (Excel
tables elimination, dozens of email addresses elimination, etc.)
4. Reduced the risk of failure in forwarding the e-mail to the intended
recipient
5. Automated invoices and stock corrections (changes pro-forma invoices,
stock regularization, etc.)
6. Resolved disputes through accountability operations, validation, etc.
7. Empowered staff (reporting, traceability)
8. Reduced manual work and integrates it into an efficient process based on
validations and decisions, at user level
BENEFITS
VALUE PROPOSITION RETURN ON INVESTMENT
3 months after GO LIVE • Value of resolved litigations / Markets: 2 781 232 EUR
• Value of resolved litigations / Warehouses: 465 290 EUR
• 8130 receptions manually checked;
• 975 cases including 1248 litigations were managed using Mail, SMS, XLS
files
• Corrective Actions:
• 783 command changes;
• 532 new invoices;
• 1990 stock regularization.
• 7882 Exported Invoices.
PHASES - APPROACH
1. Business Analysis
2. Invoicing Module
3. Compensation Module
4. Reports
5. UAT
6. Go LIVE
The solution solved these types of litigations by:
1. Matching invoices with purchase orders or
with receptions.
2. Automating validations and internal
communication.
3. Using reporting tools and statistics for
process overview.
4. The solution aimed to optimize and
automate the logistics litigations process,
respectively to solve disparities between
warehouses delivery and stores reception.
5. There were several types of litigations in this
process:
• Qualitative
• Quantitative
• Expired items
• Anomalies
• Faulty reception
NUMBERS
1. 318,263 invoices and receptions
2. 31,793 litigations
3. 6,124 bills created
4. 9,490 command changes
5. 28,673 stock adjustments
6. 242,183 invoices exported BEFORE
• Duration –1 day at least
• Resources Involved – 3, 4
persons
AFTER
• Duration – 7 min
• Resources Involved – 0
persons
SOME
CASES
1. Attaining accurate and complete visibility of spend
across company
2. Leveraging scale across diverse divisions and
operating groups (purchasing power)
3. Segmenting spend and applying the appropriate
category management and sourcing strategy to
each category (Centralized, Central-Led,
Decentralized)
4. Outlining clear ownership, accountability and fiscal
responsibility around spend management
5. Driving efficiency and effectiveness of procure - to-
pay processes and clarity of roles and
responsibilities
6. Managing risks associated with poorly-written
contracts
7. Controlling spend and ensuring contract
compliance across the organization
Enterprise Concept’s Procurement Management
Solution for Retail enables full transparency in the
procurement - ordering – delivery- financial
transactions flow, thus enabling the client – the
biggest retailer on the EU market - to consolidate
purchasing and enforce the correct workflow and
logistical consolidation to optimize the cost and
quality for sourcing.
PROCUREMENT
MANAGEMENT THE SOLUTION
BUSINESS CHALLENGES 1. Provided spend and supply information that enabled the supply base to
be rationalized from in excess of 5,000 suppliers to less than 100
2. Developed strategic business relationships and close contract
management of first-tier suppliers
3. Implemented an industry-standard consumables catalogue order
placement system that connected the client’s requisitions with suppliers
via the Internet;
4. Reduced inventory stock value level
BENEFITS
VALUE PROPOSITION RETURN ON INVESTMENT
3 months after GO LIVE 1. Contract compliance has improved more than 80% overall. Just as
importantly, the higher compliance rate has been sustained.
2. The system has also streamlined the client’s procurement process,
allowing the company to capture more detailed spend information,
enhancing spend analysis.
3. Manual purchase orders have been eliminated, allowing the retailer to
reduce headcount or reassign resources.
4. Operation expense was reduced from 0.95% of total spend in 2009 to
0.35% in fiscal year 2010.
1. The complete elimination of paperwork and
paperwork handling
2. Productivity increase of 80% in terms of
processing purchase orders and invoices
3. Time between need recognition and the
release and receipt of an order reduced by up
to 40 days
4. Cost savings; Reduction of errors and
elimination of paper leads to lower operating
costs
5. Performance Monitoring and Management
6. KPI monitoring, effective workload balancing
7. Improved communication both within the
company and with suppliers
BEFORE
COST of processing 1 invoice:
2,35 EUR
Clearing orders team: 40
people
TIME for processing an
incorrect invoice: 40 days
TIME for processing a correct
invoice: 3 days
AFTER
COST of processing 1
invoice:0,75 EUR
Clearing orders supervisors: 2
people
TIME for processing an
incorrect invoice: 3 days
TIME for processing a correct
invoice: 1.5 minutes
IMPACT
Enterprise Concept worked with the retailer to
select, configure and implement BPM to optimize
their value chain, thus having a direct impact on:
1. Sourcing and Procurement Transformation
2. Spend Analysis and Opportunity Assessment
3. Strategic Sourcing
4. Procure to Pay Process Improvement
5. Contract Management and Compliance
6. Supplier Management and Partnering
Programs
7. Governance and Organization
8. Technology Enablement
Q&A Thank you!
SOCIAL MEDIA
CONTACT INFO
Tel: +0 371 464 524
Fax: +0 371 464 524
Email: [email protected]
Web: www.enterprise-concept.com
ENTERPRISE CONCEPT
Strada Aviator Traian Vasile nr 58,
Sector 1, Bucuresti
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