how to quit paper in any document process - esker
TRANSCRIPT
How to Quit Paper in Any Document Process
with One SAP®-certified Solution
ESKERwww.esker.com
2
Introduction
Business runs on documents, and until recently that has meant paper. Today virtually every organization recognizes the need to quit paper and eliminate, as much as possible, manual processing of those documents — to realize the cost savings and efficiency gains that automation brings.
Companies know they can no longer overlook the high costs and inefficiency of having staff spending so much time pushing paper around the office. With paper there is no visibility, no control and low productivity.
Where businesses may have tolerated this situation in the past, many are looking to reduce costs and avoid losing customers to competitors who operate at lower cost and deliver better service. They need to capture incoming documents quickly and accurately, be able to prioritize them, know where they are in the process, monitor processing metrics such as time and volume, deliver outbound documents as efficiently as possible, and have immediate access to the documents as needed.
IT analyst research consistently finds that top-performing companies process a higher percentage of documents like orders and invoices electronically in comparison with their peers. Still, justifying the investment is one of the biggest implementation challenges companies face today.
Assessing automation valueAny strategic value assessment of solutions to automate a document process like order processing or invoicing, or a specific document communication medium such as faxing, should consider a key factor: The fundamental issues driving the need for automation of the process or media are also present in other areas. Many companies automate one or two document processes while other processes continue to rely on paper. Often, different business units have their own applications. Processes span across locations and departments, and applications do not always communicate directly with another. As the number of customers and suppliers increases, communication becomes less efficient and more costly.
Because all business processes in an organization are essentially intertwined, inevitable delays happen when paper document processing starts a chain reaction that affects the entire enterprise — inflating the time and cost of doing business. By automating as many document processes as possible, starting with the top priorities, companies can capitalize on valuable opportunities to improve cash flow and overall profitability.
So what is the best way to quit paper?While a specialized application may be effective in automating a particular process, it may do nothing at all to help with others. As a result, companies find themselves investing time, money and resources in different solutions for each process they want to automate.
The alternative is a comprehensive solution for all document process improvement efforts. Such a platform can provide a unified set of automation capabilities combined with specific functionality for core processes within the order-to-cash and procure-to-pay cycles, such as sales order processing or customer invoicing.
There is no doubt that automating document processes throughout a company brings immediate additional value to SAP solutions, reduces costs, and streamlines business communications. The question is whether to choose stand-alone solutions or a platform to automate it all. This paper is intended to help you make an informed decision.
Order
Invoice
3
Process Management Challenges
Business and IT professionals tasked with managing business document processes share several common concerns.
VisibilityWhere is the order? Who has the invoice? Companies need transparency to see what and where business documents are at any time, and to manage document processing workload.
ProductivityVisibility has a direct correlation to productivity — how much non-value work people are doing to support business processes. Companies also need to optimize productivity of document processing to be able to deal with fluctuations in document volume due to business growth or decline, seasonal demand, and sales or purchasing trends.
ErrorsWherever there is manual document processing, there is always a considerable risk of human error that can end up stretching out the business cycle and driving up operating costs. These errors and the delays they cause can have a direct impact on cash flow, supply chain performance and finance.
CostEveryone is looking to cut costs and do more with less of both IT resources and staff resources. Along with the hard costs of labor, equipment and materials that we can quantify, there are also the soft costs of low customer satisfaction and lost business.
ImplementationAddressing these issues requires a flexible solution that is easy to deploy, does not impact existing systems, carries minimal risk and will work to automate communications with as many customers and suppliers as possible.
Visibility
Produc
tivity
Error Rate
Cost per order
or invoice
Business DocumentProcessing
Business DocumentProcessingIm
ple
me
ntat
ion
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IT Landscape Complexity Explosion
In looking to optimize document processes, companies often respond to one specific automation need at a time with different tools, creating a complex mix of technologies. Introducing new systems into an increasingly complex infrastructure can create process bottlenecks and astronomical costs — not only to purchase the various technologies, but also to implement and maintain them, and to train staff to use them. And if anything in the environment changes, as it inevitably will, modifying the affected applications can be extremely expensive and time-consuming when there are so many pieces of the puzzle. Below is a high-level example of what a typical business IT infrastructure can look like.
Cost and complicationsIn an environment of point-to-point systems creating high costs (administration, knowledge, maintenance, hardware and upgrades), getting all of the applications to work well together can be a never-ending nightmare. You may be faced with some or all of the following challenges:
Gaining expertise with each solution
Having different administrators for each solution, which drives total cost of ownership (TCO) up and can create a situation where no one in the company really “owns” document processing
Managing relationships with each of the solution vendors
Building a warehouse for data from all of the different systems
Modifying applications to meet your specific requirements
Understandably, business and IT leaders are often reluctant to add new technology or tamper with existing systems, as this can be time-consuming and risky. Though effective inbound and outbound document delivery management presents obvious business advantages and financial benefits, a successful technology solution must work within the existing IT framework to bring the necessary capabilities without adding complexity.
CRM
SAP
LEGACY
Fax
EDI
Supplier
Customer
Partner
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Creating Success
What is making broad automation a practical reality for many companies is not simply technology that actually works to streamline a particular business process. It is the larger value of the capabilities and operational benefits of a platform that brings together all the necessary functionality for automation of processes throughout the procure-to-pay and order-to-cash cycles.
Companies are finding that they can leverage the same solution they use for sales order processing, for example, to automate purchase order delivery, customer billing and vendor invoice processing as well. With such a solution in place, organizations have a platform to automate virtually any business process that runs on documents.
A unified platform offers the advantages of using a shared group of functions, along with the added benefits of leveraging capabilities that are specifically designed for core processes. Replacing point-to-point solutions with a single automation platform frees IT departments and customer service teams from tasks that burden their budget, and at the same time saves hours of work that can be redeployed to new projects.
Benefits of increased efficiency and productivity with the platform approach also result from:
Less time spent on training, administration and vendor relationship management
Lower infrastructure costs
Consistent application of policies
Less repetitive work
Lower error rates
All elements of the platform should be accessible and controlled by a single set of business rules to allow automation of document processes from end to end without the need for third-party products. This allows each process to be automated and measured as an entity rather than as a collection of different functions.
Fax andEmail
IDoc
EDI/X
ML
Data
Ca
pture
Validation
Formatting
Arc
hiving
Delivery
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What the Platform Does
In comparison with multiple point-to-point solutions, the Esker platform brings together all the necessary functionality for unified customer and supplier communications to enable the efficient flow of information — independent of data format or document media. With the Esker platform at their disposal, businesses have a single solution to:
Receive sales orders, vendor invoices or any other incoming documents from any source
Send purchase orders, customer invoices or any other outgoing documents directly from SAP applications and other systems
Store documents and data inside the SAP system or other common repository
What it takesTo deliver this additional value, the Esker platform provides components for automated document processing that encompass:
Document capture and workflow management functionality, including OCR plus content recognition, prioritizing capabilities and the ability to make data available to SAP applications
Formatting capabilities to create high-usability documents from multiple media (fax, PDF, HTML, XML/EDI, etc.)
A full range of transport options, including connection to Esker-hosted fax and postal mail services, with the ability to automatically send and receive faxes and notify of successful delivery
Web-based document workflow to automate the approval process, including support for mobile devices
Electronic document archiving capability to store and easily retrieve documents
Reporting capabilities to produce management reports on Key Performance Indicators for the process
DO
CU
ME
NT
CA
PT
UR
E
1
Paper Documents(scan)
Faxes
E-documents(XML, IDoc, …)
Fax & Mailon Demand
Fax
Archive
XML
SMS
Web Publishing
DO
CU
ME
NT
TR
AN
SP
OR
T
3
Capture Read Route Format Transport
2 DELIVERYWARE RULES ENGINE
n Sales Ordersn Confirmationsn Proposals n Contracts n Accounts Receivablen Purchase Requisitionsn Invoicesn …
n Invoicesn Purchase Ordersn Remittance Advice n Confirmationsn Lettersn Quotesn Reportsn …
Capture Read Route Format Transport
UN
IVE
RSA
L APPLICATION CONN
EC
TO
RSSAP
Applications
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SAP Integration Flexibility
The SAP-certified Esker platform leverages connectivity that brings together four integration components designed to offer maximum flexibility in receiving and sending business data and documents. Esker solutions combine SAPconnect for fax, email and wireless message communications; SAP print interface for full routing of documents directly from SAP applications to the Esker platform; SAP directory interfaces allowing delivery information lookup in the SAP vendor master and customer master records; and SAP integration interfaces allowing data to be passed into and out of SAP applications, including data extracted from scanned, faxed, emailed and printed documents.
Integration features and benefitsWith Esker solutions you can:
Integrate document process automation with multiple SAP applications via SAPconnect, SAPscript or SAP Smart Forms as well as SAP External Output Management Interface (SAP spool) or Enterprise Services
Automatically deliver information in multiple electronic formats for high-volume production needs, with status notification sent back to the SAP system for delivery confirmation
Import data from incoming documents, such as sales orders, into SAP applications through BAPI or Enterprise Services interfaces to eliminate the need for manual data entry
Check data extracted from incoming documents against SAP master data to ensure accuracy, with user validation workflow capabilities available where required by the business process
Access archived documents directly from SAP applications
Receiving, sending, viewing, and managing documents is easy for SAP application users, who access Esker solutions from within their familiar SAP application interfaces or through a convenient web interface.
SAP
Busi
ness
Sui
te
FAX
WIRELESS
XML
WEB
IDOC
EDI
SAPCONNECT SAP DIRECTORY INTERFACE
SAP INTEGRATION INTERFACESAP PRINT INTERFACE
� EDI In/Out� XML In/Out� IDoc In/Out
� SQL Query/Publish� Enterprise Sevices – ESOA
(BC-XOM SAP Certified)� SAPscript (RDI files)� SAP Smart Forms (XSF files)� SAP Reports
(BC-SMTP SAP Certified)� Fax� Email� SMS
� Vendor master lookups� Customer master lookups� ABAP/BAPI function calls
SAP ERP
SAP CRM
SAP SCM
SAP PLM
SAP SRM
� R
DI �
XSF
� P
o s t Sc r i p t � P C L � PDF � I Doc
� XM
L � RD
I � XSF � PostScript � PCL � PDF �
IDoc
� X
ML
APPLICATION INTEGRATION DELIVERY
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Outcomes of Comprehensive Automation
Working with businesses in a range of industries over the past two decades, Esker has found that automation typically helps companies process business documents like orders and invoices at:
A minimum of 40 percent lower cost than manual processing, and
Up to 90 percent higher speed than manual processing.
Additional benefitsEfficiency Increase productivity and reduce Days Sales Outstanding (DSO), procurement delays and late payments
Consistency Standardize document processing across departments and operational units of the business
Transparency Gain 100% visibility to control document processing and identify areas for further improvement
Customer service Improve customer satisfaction and competitive advantage as a result of having documents readily accessible
Accuracy Dramatically reduce order fulfillment and reprocessing costs, supply chain disruptions and billing disputes
AUTOMATIONAUTOMATION
Cut documentprocessing costs
by 40-70%
Cut documentprocessing costs
by 40-70%
Reduce documentprocessing time
by 40-90%
Reduce documentprocessing time
by 40-90%
Process Efficiency
Proc
ess
Consiste
ncy
+99.
5%A
cc
ura
cy
ServiceC
ustomer
Transparency
Process
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Implementation Options
How to startWith Esker the advantages of a broad automation strategy are available either as a traditional on-premise software implementation or through on-demand services. Esker offers access to its comprehensive platform as a set of Software as a Service (SaaS) solutions to automate specific business processes. While managing the software in-house gives some companies levels of flexibility and control that they want, others take the SaaS approach to shift cost from the project level to the document level (moving from capital to operational expenditures) for immediacy in ROI.
You can choose the traditional solution deployment and administration model — purchasing licenses upfront and installing the software using internal staff, resources and technology. Or you may prefer to have Esker implement, host and manage your document management system externally in a secure and reliable Esker-hosted data center.
Either way, the automation cuts processing time and costs, brings complete visibility to every document processed, reduces or eliminates the need for paper filing, reduces resource requirements and literally saves tons of paper everywhere it is used. Esker supports customers’ unique requirements while ensuring maximum effectiveness of the system to deliver the highest value.
SaaS for sustainabilityAlong with delivering the benefits of removing paper from business processes, Esker SaaS solutions help eliminate the need for hardware to support document processing. Companies spend less on power to run server computers, fax machines, printers and other equipment. SaaS supports the Esker GreenerDocs philosophy — a commitment to helping customers not only improve green performance but also take full advantage of the time and cost savings that result from using less paper.
EskerSales OrderProcessing
Solution
Service Usage Fee
Permanent
LicenseRente
d
Licen
se
Planning
On Premise
On Dem
and
Syste
m In
sta
llatio
n, Setup and Testing – On Premise / Hosted
Plan
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and
Bus
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s Process Analysis
D
eplo
ymen
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Tra
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D
eployment and Training Deployment and Training Deployment and Training
Setup and Conn
ectio
n
Going paper-free step by step
Esker solutions enable a phased approach to implementing automated document processing. In fact, many organizations initially use the Esker platform to address one specific document process, then begin tapping into its full potential as a solutions development tool that can be applied to any number of existing and future process automation initiatives.
And even within a process, companies can start with a basic “quit paper” solution and then add capabilities and integration features as time and needs dictate.
As part of its solution methodology, Esker encourages customers to outline document processing steps, identify manual touch points, prioritize based on cost and return, and automate the top priorities first.
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Case Study Snapshot: Equipment Manufacturer
The following examples illustrate initial and subsequent phases of document process automation leveraging the Esker platform.
Phase 1: Automated Sales Order Processing
Before
After
Phase 2: Automated Accounts Receivable Invoice Processing
Before
After
SALES ORDER SAP® APPLICATIONS
CaptureCapture
ReadRead
ValidateValidate
FAX
Incoming sales order received by fax
1 Esker solution captures, reads and makes data available for verification
2 Esker solutionautomatically creates IDoc for the SAP system
4
Web form validation3
IDoc
?
?
?
Postal Network
Email Delivery
Nightly Batch
?AR
Email Delivery
Nightly Batch
AR
MAIL FACTORY
Esker mail production facility
NOTIFICATION
HTTPS
DOCUMENTMANAGER
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Conclusion
Core issues driving the need for automation are common to all document process. With IT resources scarce and expensive, managing separate solutions for each document process is not cost-effective. The ability to receive and deliver documents in multiple formats and through multiple channels, like mail, fax, email, Web, or EDI/XML, that match customer preferences, is essential to the success of document process automation projects.
A single solution can automate and capture any inbound document (e.g., sales orders, confirmations, vendor invoices), deliver any outbound document (e.g., customer invoices, purchase orders, receipt acknowledgements), and store the data inside of SAP applications. Having the option to implement the solution either as Software as a Service (SaaS) or on-premise offers flexibility for project execution.
For business and IT leaders alike, getting a clear picture of their organization’s total communication infrastructure may seem difficult if not impossible. They simply don’t know where to start. Effectively assessing and quantifying the business value and the impact of implementing document automation requires enterprises to fully understand key aspects of current processes, including:
Procure-to-pay and order-to-cash performance: Measuring the time the cycles take from beginning to end
Quality: Identifying process errors that impact daily business and slow down reactivity
Quantity: Calculating the volume of documents processed for customer and supplier communications
Document-based costs: Assessing the amount of money currently spent on creating, processing, handling, and delivering business documents
Archaic information exchange: Determining how much paper-based methods such as traditional mail and manual fax limit profitability
Archiving: Calculating potential for automating current means of storing documents
What Esker customers say “The technology is incredibly flexible. Esker, compared with the other solutions we considered, provides a complete document workflow platform for automation.”
— Steve Snyder, Director of Information Technology, National Office Furniture
“The top reasons we selected Esker over other solutions were ease of use and seamless integration with our existing SAP infrastructure.”
– Mike Green, Technical Analyst, MEDRAD
“There is no need for paper at all anymore.”
— Roman Rozman, Senior Director of IT, Aearo Technologies
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About Esker
Document process automation leadershipEsker is a recognized leader in helping organizations eliminate manual processes, gain visibility and control, and reduce the use of paper by automating the flow of documents into, within and out of the organization. With its comprehensive platform and patented technology, Esker delivers the advantages of automated document processing either as a powerful on-premise solution or as an on-demand services (SaaS) leveraging Esker-hosted infrastructure. Customers achieve significant and immediate operational efficiencies, cost savings and measurable ROI in as little as three to six months.
As an established SAP software solution partner with certified integration, and an SAP customer itself, Esker has made serving the needs of SAP customers a top priority. The results of the SAP and Esker partnership are demonstrated around the world by SAP customers who have automated document processes with Esker solutions. Esker has a dedicated R&D team focusing on SAP applications, and a primary objective to offer SAP customers the best solution for document process automation.
Founded in 1985, Esker operates globally with more than 80,000 customers and millions of licensed users. Esker has global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. For more information, visit www.esker.com.
Solutions
Procure-to-Pay and Order-to-Cash and AutomationTo help organizations quit paper and speed cash conversion, enhance customer satisfaction, improve supply chain performance, and increase profitability, Esker solutions span the procure-to-pay and order-to-cash cycles:
Sales Order Processing to automate entry and routing of incoming customer orders
Accounts Receivable Invoicing to automate delivery of billing documents based on customer preferences
Accounts Payable Processing to automate entry and routing of incoming vendor invoices and other payables
E-Purchasing to automate delivery of supply chain documents based on vendor preferences
E-PURCHASINGSALES ORDER PROCESSING
ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE
Your VendorsYour Customers Your Company
CustomerOrder
CustomerInvoice
VendorInvoice
PurchaseOrder
Payment Payment
ORDER-TO-CASH PROCURE-TO-PAY
Esker, Inc.1212 Deming Way, Suite 350Madison WI 53717 Tel: 800.368.5283Email: [email protected]
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