Benefits from

Implementing Newgen's BPM Solution

at a Shared Service Centre

Overview

The client is a leading Indian pharmaceutical company

manufacturing a wide range of affordable and high quality

generic medicines, trusted by healthcare professionals and

patients across geographical boundaries. It is ranked

amongst the top ten generic pharmaceutical companies

worldwide.

With a presence in over 49 countries, 11 manufacturing

facilities and a diverse product portfolio, the company has

vendors scattered across multiple locations in India. As a

result of this geographical spread, company's Finance &

Accounts (F&A) Department had a difficult task

coordinating payments made and received on behalf of the

Key Operational Challenges With a pan India presence, the F&A Department had the

task of tracking and monitoring invoices raised by its

vendors. Coordination of this activity affected the day-to-

day operations with frequent instances of loss of invoices.

This had an adverse impact on the overall performance of

the department.

The absence of a robust tracking and monitoring

mechanism affected audit and compliance management.

The audit process was time consuming, and an average of

two days was required to locate physical documents.

Tracking the lost invoices was difficult and time consuming

2 of 6

At a Glance

Key Benefits • Increase in employee efficiency and productivity

• Reduction in bill payment cycle

• Better audit and compliance management

• Establishment of an efficient tracking and monitoring

mechanism

• Reduction in cost incurred per employee

Newgen was selected to implement a unified business

workflow automation and document management

solution in order to streamline the Accounts Payable (AP)

process at a Shared Service Centre (SSC)

Website: www.newgensoft.com

Key Challenges• Various activities and systems involved in invoice

processing working in isolation

• Dependence on physical movement of invoices across

departments and locations

• Lack of an efficient monitoring and tracking

mechanism

• Difficulty in conducting internal audits and meeting

compliance standards

• Efficient utilization of capital assets and infrastructure

• Scalable solution that enables faster roll-out of

initiatives

Return on Investment 1of 135%

Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated

1 of 6

1

Newgen was selected to implement a unified business

workflow automation and document management

solution in order to streamline the Accounts Payable (AP)

process at a Shared Service Centre (SSC)

Website: www.newgensoft.com

• Increase in employee efficiency and productivity

• Reduction in bill payment cycle

• Better audit and compliance management

• Establishment of an efficient tracking and monitoring

mechanism

• Reduction in cost incurred per employee

• Efficient utilization of capital assets and infrastructure

• Scalable solution that enables faster roll-out of

initiatives

• Various activities and systems involved in invoice

processing working in isolation

• Dependence on physical movement of invoices across

departments and locations

• Lack of an efficient monitoring and tracking

mechanism

• Difficulty in conducting internal audits and meeting

compliance standards

Key Challenges

Key Benefits

At a Glance

Return on Investment 1of 135%

1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated

1 of 6

Overview

The client is a leading Indian pharmaceutical company

manufacturing a wide range of affordable and high quality

generic medicines, trusted by healthcare professionals and

patients across geographical boundaries. It is ranked

amongst the top ten generic pharmaceutical companies

worldwide.

With a presence in over 49 countries, 11 manufacturing

facilities and a diverse product portfolio, the company has

vendors scattered across multiple locations in India. As a

result of this geographical spread, company's Finance &

Accounts (F&A) Department had a difficult task

coordinating payments made and received on behalf of the

Key Operational Challenges With a pan India presence, the F&A Department had the

task of tracking and monitoring invoices raised by its

vendors. Coordination of this activity affected the day-to-

day operations with frequent instances of loss of invoices.

This had an adverse impact on the overall performance of

the department.

The absence of a robust tracking and monitoring

mechanism affected audit and compliance management.

The audit process was time consuming, and an average of

two days was required to locate physical documents.

invoices was difficult and time consuming

Tracking the lost

2 of 6

Business Workflow Automation Solution

Invoices/Documents are scanned, indexed and uploaded in the workflow from multiple locations

Faster access to invoices through workflow, leading to reduction in waiting and processing time. Also, invoices are segregated on the basis of PO or Non-PO

Data Entry andVerification

Exception Resolutionby Supervisor

Posting of case detailsdirectly into SAP

Payment RunCheque Details

Data Entry andVerification

Exception Resolutionby Supervisor

Posting of case details directly in OmniFlow and SAP

OtherException

CorrectInvoice

ImageException

Rescan

POTransactions

Cheque details captured and payments approved in SAP

OtherException

CorrectInvoice

ImageException

Rescan

Non-POTransactions

4 of 6

The SolutionIn order to address these challenges and streamline its

Accounts Payable (AP) process, the management decided to

establish a Shared Service Centre (SSC). The primary

objective was to centralize the AP process and increase its

efficiency, accuracy and productivity. In addition, it was

decided that a unified Business Workflow automation

solution was required to support the business needs of the

Shared Service Centre.

Newgen was selected to implement the business workflow

automation solution and integrate it with SAP. The products

used for implementing the solution by Newgen are TMOmniScanTM (OmniCapture), OmniFlow and OmniDocsTM

All the invoices and supporting documents are sent to the

SSC, where they are scanned and introduced into

OmniFlowTM (workflow system) using OmniScanTM. The

invoices are then segregated based on their work type

(PO/Non-PO) and routed to the respective users for further

processing.

The rule- and role-based BPM solution processes these

workitems, and enables the company to efficiently and

accurately make payments to its vendors.

Automation and the absence of physical movement of

documents have made the AP process more efficient. The

solution also allows the company to archive invoices and

other supporting documents in OmniDocsTM from where

they can be viewed, downloaded and printed online as per

user requirements.

Minimized user interface has increased accuracy of data being captured

3 of 6

In order to address these challenges and streamline its

Accounts Payable (AP) process, the management decided to

establish a Shared Service Centre (SSC). The primary

objective was to centralize the AP process and increase its

efficiency, accuracy and productivity. In addition, it was

decided that a unified Business Workflow automation

solution was required to support the business needs of the

Shared Service Centre.

Newgen was selected to implement the business workflow

automation solution and integrate it with SAP. The products

used for implementing the solution by Newgen are TM TM TMOmniScan (OmniCapture), OmniFlow and OmniDocs

All the invoices and supporting documents are sent to the

SSC, where they are scanned and introduced into TM TMOmniFlow (workflow system) using OmniScan . The

invoices are then segregated based on their work type

(PO/Non-PO) and routed to the respective users for further

processing.

The rule- and role-based BPM solution processes these

workitems, and enables the company to efficiently and

accurately make payments to its vendors.

Automation and the absence of physical movement of

documents have made the AP process more efficient. The

solution also allows the company to archive invoices and TMother supporting documents in OmniDocs from where

they can be viewed, downloaded and printed online as per

user requirements.

Minimized user interface has increased accuracy of data being captured

The Solution

3 of 6

scanned, indexed and uploaded in the workflow

Faster access to invoices

the basis of PO or Non-PO

Data Entry and

Exception Resolution by Supervisor

Posting of case details

Payment Run Cheque Details

Data Entry and

Exception Resolution by Supervisor

Posting of case details

Other Exception

Invoice

Image Exception

Rescan

PO

Other Exception

Invoice

Image Exception

Rescan

Non-PO

Invoices/Documents are

from multiple locations

through workflow, leading to reduction in waiting and processing time. Also, invoices are segregated on

Verification directly into SAP

Verification directly in OmniFlow and SAP

Correct

Transactions

Cheque details captured and payments approved in SAP

Correct

Transactions

Business Workflow Automation Solution

4 of 6

The ROI calculation represents the relative value of a

project's cumulative net benefits over the analysis period,

divided by the project's cumulative costs, expressed as a

percentage. In a formula, this can be represented as: ROI =

cumulative net benefit / total costs. The ROI achieved from

implementation of Newgen's BPM solution was derived on

the basis of total benefits achieved and investments made

by the client over a period of three years.

Investments includes both one time and annual recurring

costs incurred by for components like

• Implementation, software and initial license cost

• Hardware

• Maintenance and production support

• User training

Benefits were calculated by quantifying the returns

achieved through higher employee productivity and

reduction in various cost parameters. The key benefits

identified for analysis were:

Methodology• Resource savings – from reduced hiring

• Time savings – reduction in processing time for audits,

faster vendor payment processing

• Capital expense reductions – savings in expenses such

as facilities, administrative overheads

• Productivity benefits – increase in volumes of

transactions processed per day

The above mentioned data and information was sourced

through the following:

• Primary Research (customized questionnaire)

• Secondary Research (Third Party Industry Reports and

Deloitte Global Benchmarks and Survey Reports)

6 of 6

Key Benefits and ROI

Benefits accrued to the company were both direct and

indirect. Reduction in operating costs, travel and

communication expenses, office stationary and

infrastructure usage were some of the benefits achieved by

centralization and implementation of the BPM solution. The

company also achieved other benefits like increase in

productivity and reduction in IT infrastructure costs through

better utilisation of capital assets.

Newgen's BPM solution has enabled the company establish

a comprehensive monitoring and tracking mechanism.

The company achieved a headcount reduction

*

the global average of #20%

of 60% compared to

Image enablement of SAP helped in streamlining internal

audit and soft archival of physical documents to meet company to identify bottlenecks and take appropriate compliance standards. remedial action.

Key benefits from the solution include the following: • Efficient utilization of capital assets and

• Improved employee productivity: Newgen's rule- infrastructure: Capital assets and infrastructure are

and role-based workflow solution ensures efficient being utilized more effectively. The branch offices of

workload balancing, resulting in higher employee the company are being utilized for other core activities

utilization and productivity. of the pharmaceutical company.

• Better audit and compliance management: • Scalable solution that enables faster roll-out of

Internal audit, a tedious and rigorous process, which initiatives: The company is better equipped to

took 5* days at an average, is currently completed manage growth and strategic initiatives because the

within 3* days. Newgen's system maintains a solution is scalable and it enables faster roll-outs. Over

complete history of every invoice, including the the years, the company has been able to increase the

approval and processing history along with an workload at the Shared Service Centre, thereby

electronic image of the document. Also, customized facilitating other offices to concentrate on their core

reports give the administrator complete control over activities.

the activities of the SSC. • Seamless integration with SAP: The solution has

• Reduced cost: The solution has also enabled the been seamlessly integrated with SAP to further

company to streamline its process, thereby reducing enhance the efficiency of the overall system.

the cost per transaction. It has also resulted in

reduction of administrative overheads incurred per

employee.

• Efficient tracking and monitoring mechanism:

Vendor payments are made much faster due to

accurate data capturing and faster bill payment cycles.

Real-time tracking of invoices is possible, enabling the

The company has 1

over a three year period achieved a 135% ROI

Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated * As per data provided by Newgen's client # As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared

services organizations around the globe

5 of 6

1

Key Benefits and ROI

Benefits accrued to the company were both direct and

indirect. Reduction in operating costs, travel and

communication expenses, office stationary and

infrastructure usage were some of the benefits achieved by

centralization and implementation of the BPM solution. The

company also achieved other benefits like increase in

productivity and reduction in IT infrastructure costs through

better utilisation of capital assets.

Newgen's BPM solution has enabled the company establish

a comprehensive monitoring and tracking mechanism.

Image enablement of SAP helped in streamlining internal

audit and soft archival of physical documents to meet

compliance standards.

Key benefits from the solution include the following:

• Improved employee productivity: Newgen's rule-

and role-based workflow solution ensures efficient

workload balancing, resulting in higher employee

utilization and productivity.

• Better audit and compliance management:

Internal audit, a tedious and rigorous process, which

took 5* days at an average, is currently completed

within 3* days. Newgen's system maintains a

complete history of every invoice, including the

approval and processing history along with an

electronic image of the document. Also, customized

reports give the administrator complete control over

the activities of the SSC.

• Reduced cost: The solution has also enabled the

company to streamline its process, thereby reducing

the cost per transaction. It has also resulted in

reduction of administrative overheads incurred per

employee.

• Efficient tracking and monitoring mechanism:

Vendor payments are made much faster due to

accurate data capturing and faster bill payment cycles.

Real-time tracking of invoices is possible, enabling the

The company achieved a headcount reduction

*of 60% compared to the global average of

#20%

1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated* As per data provided by Newgen's client# As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared

services organizations around the globe

company to identify bottlenecks and take appropriate

remedial action.

• Efficient utilization of capital assets and

infrastructure: Capital assets and infrastructure are

being utilized more effectively. The branch offices of

the company are being utilized for other core activities

of the pharmaceutical company.

• Scalable solution that enables faster roll-out of

initiatives: The company is better equipped to

manage growth and strategic initiatives because the

solution is scalable and it enables faster roll-outs. Over

the years, the company has been able to increase the

workload at the Shared Service Centre, thereby

facilitating other offices to concentrate on their core

activities.

• Seamless integration with SAP: The solution has

been seamlessly integrated with SAP to further

enhance the efficiency of the overall system.

The company has 1

achieved a 135% ROI over a three year period

5 of 6

MethodologyThe ROI calculation represents the relative value of a

project's cumulative net benefits over the analysis period,

divided by the project's cumulative costs, expressed as a

percentage. In a formula, this can be represented as: ROI =

cumulative net benefit / total costs. The ROI achieved from

implementation of Newgen's BPM solution was derived on

the basis of total benefits achieved and investments made

by the client over a period of three years.

Investments includes both one time and annual recurring

costs incurred by for components like

• Implementation, software and initial license cost

• Hardware

• Maintenance and production support

• User training

Benefits were calculated by quantifying the returns

achieved through higher employee productivity and

reduction in various cost parameters. The key benefits

identified for analysis were:

• Resource savings – from reduced hiring

• Time savings – reduction in processing time for audits,

faster vendor payment processing

• Capital expense reductions – savings in expenses such

as facilities, administrative overheads

• Productivity benefits – increase in volumes of

transactions processed per day

The above mentioned data and information was sourced

through the following:

• Primary Research (customized questionnaire)

• Secondary Research (Third Party Industry Reports and

Deloitte Global Benchmarks and Survey Reports)

6 of 6

Disclaimer

The ROI analysis was commissioned by Newgen and has been done by Deloitte for the clients provided by Newgen. The analysis was done based on

data provided by Newgen and its clients and Deloitte makes no assertions on the potential ROI that other organizations might receive by using

Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain

assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation

of the benefits that client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for

competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not

to endorse its solutions by Deloitte.

This document contains general information only and Deloitte Touche Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering

accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such

professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or

taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities

shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication.

Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published

document.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and

independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its

member firms.

About Newgen

Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Document Management System (DMS),

with a global footprint of about 750 installations in over 35 countries. Newgen is recognized by distinguished analyst firm IDC in its exclusive report

“Newgen Software: Global Leader in Business Process Management and Document Management Solutions.” With HSBC and SAP investment,

Newgen is one of the rare product companies to have backing of both leading financial and technology companies of the world.

Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award 2008”, Frost and Sullivan's “Market Leadership Award for Document

Management System and Workflow Software & Services” and “Distinguished Application Product Company” by NASSCOM, Newgen Software is

an ISO 9001:2000, ISO 27001 certified and CMM Level 4 company.

Newgen Software Technologies Ltd. Newgen Software Inc.

A-6, Satsang Vihar Marg, Tel: +1-703-749-2855

Qutab Institutional Area, Tel: +1-510-794-6724

New Delhi – 110 067 Email: info@newgen.net

Tel: +91-11-26964733, 26963571, 26856871

Email: newgen@newgen.co.in

Website: www.newgen.co.in