drive paper out of your processes

In association with: Presented by:

Drive Paper Out of Your Processes: 4 Tips to Digitize and Automate Document-Intensive Workflows

Presented September 9, 2015


About AIIM

AIIM is the Global Community of Information Professionals AIIM believes that the information systems we use at work should be simple, secure, and available anywhere, anytime, and on any device. Our mission is to improve organizational performance by empowering a community of leaders committed to information-driven innovation. Learn more at www.aiim.org

http://www.aiim.org/


AIIM Presents:

Drive Paper Out of Your Processes: 4 Tips to Digitize and Automate Document-Intensive Workflows

Host: Theresa Resek Director AIIM

Richard Medina Co-Founder & Principal Consultant Doculabs

Pete Stein Vice President Capture and Intelligent Data Novitex


Introducing our Featured Speaker

Richard Media

Co-Founder & Principal Consultant

Doculabs


Agenda

1. When to digitize and automate

2. How to leverage the latest advances in “upstream” capture

3. How to leverage the latest advances in “downstream” capture

4. How to plan and manage your capture operation

• When does it make good business sense?

• Whether to do it yourself or outsource


About Doculabs

Doculabs is a strategy consulting firm; our clients rely on us to help them improve the way they manage information. We provide services such as developing strategic roadmaps and business cases, program management, and content migration assistance. Our consultants are experts in helping clients manage content such as Office documents, web content, email, customer communications, and records to improve operations, lower costs, increase revenue, and reduce risk.

Differentiators • 20+ years of information management experience • Objective recommendations • Provide empirical data from over 1,200 engagements • More than 550 customers in financial services, insurance, energy,

manufacturing, and life sciences


WHEN TO DIGITIZE AND AUTOMATE


Detailed Process Flow: Current State Example


Modeling a Loan Application Process


HOW TO LEVERAGE THE LATEST ADVANCES IN “UPSTREAM” AND

“DOWNSTREAM” CAPTURE


The Mess: Upstream and Downstream Capture


So What’s the Problem?

1 No consistent, enterprise-standard process for ingesting documents

2 No easy way to upload electronic documents

3 No online-fillable dynamic forms

4 E-signatures aren’t integrated (no click-to-sign for customers)

5 Indexing and vetting are manual

6 High percentage of submissions are out of order – requiring manual exception processing by Operations staff

7 Hard to scale and maintain


Improving Upstream and Downstream

Document Capture: Input Channels and Formats

Scanners, MFPs

E-signEmail MobileDevice

Paper Fax

Users(branch, field, operations staff) Customers

Exce

ptio

n H

andl

ingException H

andling

Business Processes

Document Repositories

Digital Documents(hard dr ive, shared drive)

Business Applications

DOCUMENT PROCESSING PLATFORM

Image Processing/Enhancement

Other Automated Recognition and Indexing (e.g. OCR, form ID)

Out-of-Order Processing/Exception Handling

Notification/Confirmation

Release

Manual Indexing

Data Validation Quality Assurance

Electronic Forms

Monitoring of Document Processing

Barcode Recognition and Automated Indexing

Document Vetting

Operations Staff

Some exceptions are routed to a business process for resolution.


Key User Capabilities for Document Input

• Any user (branch staff, field staff, customers) can submit documents in any format (paper or electronic) via multiple mechanisms (e.g., scan, email, fax, digital upload) into the centralized capture platform for consistent processing

• Customers can securely upload electronic documents directly via the online banking web site or a mobile app

• Customers can fill out forms electronically online and sign them using a “click-to-sign” approach


Scanners, MFPs


Paper Fax


Exce

ptio

n H

andl

ing

Exception Handling

Business Processes









Release

Manual Indexing


Electronic Forms



Document Vetting

Operations Staff



Key Benefits


Scanners, MFPs


Paper Fax


Exce

ptio

n H

andl

ing

Exception Handling

Business Processes









Release

Manual Indexing


Electronic Forms



Document Vetting

Operations Staff


1 Support for multiple channels of ingestion (including paper, fax, and digital documents) through a common input mechanism

2 Reduced complexity for users

3 Improved data quality

4 Reduced out-of-order submissions

5 Time savings for Operations in indexing and document vetting

6 Tighter controls and visibility into document processing status, metrics, etc.

7 All documents are processed consistently, improving maintenance ease and scalability

8 Fewer “moving parts” means fewer potential break points


HOW TO PLAN AND MANAGE YOUR CAPTURE OPERATION


Benchmarking Best and Worst Practices

• Model and evaluate your opportunities in the ways just described • Then benchmark your ingestion operations according to the following criteria:

Quality Mechanisms

Primary Processes

Supporting Processes

Primary Technology Capabilities

Supporting Technology Capabilities

Operations Business Continuity

Human Resources

Customer Satisfaction

Financial Management

Vendor Management

+


1. Primary Processes

Criteria 1. Mailroom (Receiving, Prep, Sort,

Certified Mail, Return Mail) 2. Doc Prep 3. Scanning 4. Fax 5. Indexing/Data Entry 6. Quality Assurance 7. Release/Commit

Best in Class 1. Process design is conducted prior to implementation of a new application 2. Product management takes an active role in advising clients on their options

and encouraging document redesign

Typical Challenges 1. Manual paper sorting; not using technology to reduce paper sorting and

complexities 2. Too many unique and complex manual processes


2. Supporting Processes

Criteria 1. Error and exception handling 2. Records management (paper storage

and retrieval) 3. Work scheduling 4. Customer service

Best in Class 1. Automated routing based on index assignment 2. Real-time reporting and exception monitoring 3. Work load balancing based on volumes, capacity, and SLAs

Typical Challenges 1. Manual work scheduling 2. Poor product management discipline 3. Most supporting processes are manual or supported by a variety of MS Office

tools


3. Primary Technology Capabilities

Criteria 1. Dedicated capture software 2. Auto-indexing via OCR/forms

recognition 3. Distributed capture and index 4. Acquisition channels (color scanning,

fax, email, EDI) 5. Workflow and automated routing

Best in Class 1. 30% to 60% of document volume is automatically indexed (1+ fields) 2. Distributed capture capabilities are provided to high-volume remote locations 3. Intelligent forms redesign 4. Bar codes, intelligent forms recognition, auto-processing, and workflow

Typical Challenges 1. Poor use of available technology to provide efficiencies 2. Too many scanning processes and ingestion technologies 3. Lack of automated tools for processing, reporting, and maintaining


4. Supporting Technology Capabilities

Criteria 1. Service-level or application billing 2. On-line reporting 3. Integration (“tight coupling”) with

downstream ECM repository and workflow

Best in Class 1. Capture solution is multi-functional, with ability to front-end multiple systems

with tight integration, full error checking and control, real-time reporting, queue workload management

2. End-user online reporting

Typical Challenges 1. Inconsistent reporting mechanisms 2. Lack of dedicated IT resources within the capture area 3. No on-line reporting or visibility provided to business units


5. Operations

Criteria 1. SLA conformance (cycle time, quality) 2. Device utilization 3. Employee productivity 4. Shifts/hours of operation 5. Percentage of temporary labor

Best in Class 1. Daily work volumes are monitored through various functions via online

reporting to identify bottlenecks 2. Temporary/contract labor represents 30% or more of workforce 3. Equipment, software, and staff utilization level are reviewed quarterly

Typical Challenges 1. Equipment, space underutilized (in anticipation of volume spikes) 2. High number of “same-day” turnaround requirements result in excess capacity


6. Quality Mechanisms

Criteria 1. Item-level automated error tracking 2. Statistical manual sampling 3. Feedback reporting (closed-loop) 4. Certifications

Best in Class 1. Real-time, automated tracking of

quality statistics within each function 2. Third-party quality assessments via samples sent to external data entry firms 3. Six Sigma Black Belt quality reviews on a periodic basis

Typical Challenges 1. Limited ability to systematically diagnose problems using automation 2. Feedback from business unit customers is informal 3. Inability to effectively and efficiently scale the manual QA processes


6. Quality Mechanisms: Military Sampling Table

Military Standard 105E Double Sampling AQL = 1.5% Inspection Level = II

Normal

SAMPLE 1 SAMPLE 2

Batch Size Sample Size Accept Go to 2nd Sampling

Failed - Email team leader

Sample Size Accept Failed

2 - 280 20 0 1 2 or more 20 1 or less 2 or more

281 - 500 32 0 1 - 2 3 or more 32 3 or less 4 or more

501 - 1200 50 1 or less 2 - 3 4 or more 50 4 or less 5 or more


3201 - 10,000 125 3 or less 4 - 6 7 or more 125 8 or less 9 or more

10,000 - 35,000 200 5 or less 6 - 8 9 or more 200 12 or less 13 or more

35,001 - 150,000 315 7 or less 8 - 10 11 or more 315 18 or less 19 or more Double Sampling AQL = 1.5% Inspection Level = II Tightened











Double Sampling AQL = 1.5% Inspection Level = II Reduced











Normal to Reduce: Must pass quality for 5 consecutive days

Reduce to Normal: If LOB FAILS 1 day sample size will return to normal.

Normal to Tightened: If 2 of 5 consecutive days work for the LOB are rejected, the sample size will be tightened.


7. Human Resources

Criteria 1. Training 2. Turnover/tenure 3. Variable compensation and incentive

systems 4. Management

Best in Class 1. Train all staff on each function to address

peaks in the flow of work 2. Retain only the staff that finds piece rate incentives attractive 3. Rotate management and supervisory staff across various functions to increase

end-to-end process knowledge

Typical Challenges 1. Inability to introduce incentive systems 2. Diversity of work mix extends training period and limits use of temporary staff


8. Customer Satisfaction

Criteria 1. Business unit satisfaction (internal

customer) 2. IT satisfaction 3. Compliance/internal audit satisfaction 4. Customer satisfaction survey methods

Best in Class 1. Understand the dynamics between customer

satisfaction and unit costs 2. Actively solicit input via surveys and phone interviews, and statistically monitor

progress

Typical Challenges 1. Lack of regularly scheduled customer surveys 2. Need to increase promotional efforts internally


9. Financial Management

Criteria 1. Application / service level pricing 2. Reinvestment levels / Profit levels 3. Job costing 4. Variable pricing (based on SLA or

time period)

Best in Class 1. Applications are variably priced based

on supply and demand 2. Costs are tracked by application to monitor contribution margin 3. New investments are focused on software automation rather than equipment

Typical Challenges 1. Too many manual tools and man-hours to create the financial analysis 2. Pricing does not sufficiently vary by service level 3. No significant investment in new technologies to improve process and reduce

overall cost


10. Vendor Management

Criteria 1. Centralized relationship management 2. Measurement, review and evaluation

processes 3. Contracting process 4. Escalation process and issue resolution

Best in Class 1. All vendors are accountable to SLA

performance, and incentives and penalties are used

2. Contracts are renewable annually to encourage renegotiation and review

Typical Challenges 1. Not fully leveraging the capabilities of the current vendors 2. Internal IT unit is not treated or managed as a vendor formally, with regular

performance reviews, goal setting, etc.


11. Business Continuity

Criteria 1. Documented strategy, policies and plans 2. Site redundancy/dedicated backup

location 3. Third-party backup site 4. IT system availability

Best in Class 1. Business continuity exercises are

conducted twice a year 2. Manual, paper-based processing is conducted once a year 3. Critical and non-critical documents are identified and prioritized for business

continuity

Typical Challenges 1. Capture process is not considered a high priority for the overall BC plans 2. System incompatibilities limit the number of BC options available or result in

workarounds and added cost


Doculabs Consulting Services doculabs.com

Doculabs Maturity Assessment Benchmark your capabilities against your peers

• 20 years of industry data included in the study • Financial Services and Insurance are the primary data points

Doculabs Gap Assessment and Validation

Will your plan work? • Reviewed 100’s of plans similar to what you are working on • Seen the warts and the pitfalls that you are likely to face working on the first

time effort Doculabs Strategy and Roadmap

Build your plan for the future • Understand the key requirements of your organization translated into

document management capabilities • Build a vision that you will sell to the leaders and investors in your program


NEXT STEPS…


Introducing our Sponsor Speaker

Pete Stein

Vice President Capture and Intelligent Data

Novitex


CAPTURE VOLUME BY FORMAT:

• Paper approx. 60%

• Electronic approx. 30%

• Fax approx. 10%.

• Electronic growing faster

GOING DIGITAL VS. PAPER:

• Although there is a shift away from legacy

systems and processes, the lack of management

directives are slowing migration.


REASONS TO GO DIGITAL:

• Search and share documents

• Faster customer (internal, external) response times

• Record security and regulatory compliance Reduced physical space

• ROI benefits still difficult to achieve in general backfile conversions.

• Focus on high value, high-touch documents

• Acceptance of cloud capture deployment as viable and a secure solution growing

• User rate approx. 12% in 2015; expected to grow to 20% in 2016 and 25% in 2017


Mobile Capture and Content Access

• High degree of recognition of value

• Still low levels of planning and activity

• Privacy / security concerns are large factors

in slow adoption


Scan and index models: • On-site

• Off-site / near-site

• Hybrid

Each provide different benefits. • Hybrid is most preferred for a balance of costs and compliance support

• Off-site / near-site for cost containment and security

• On-site for compliance support and convenience

Current growth trend: 1. Hybrid

2. Off-site / near-site

3. On-site


RESULTS: • Established tight controls for document processing.

• Reduced headcount by 30 percent during the first phase. Plan to continue to optimize labor.

• Improved processing time by 4X.

Leveraging a best-site, hybrid approach

CLIENT: A healthcare provider of Medicare and Medicaid managed care plans for approximatively 4 million members.

CHALLENGE: The client was manually entering information from its members and subscribers’ correspondence around claims and open enrollment. In an attempt to improve turnaround times, the provider hired a vendor to manage the processing of these documents. However, this did not solve the client’s inefficient workflows and also resulted in lost member information.

SOLUTION: We developed a cloud-based, hybrid scanning model that enables us to scale up and down as volumes drive processing. We automated the capture of data as it arrived through physical mail and digital communications from various departments. Previously, our client was collecting documents, printing them and then scanning them. With our process and best-in-class technology, we eliminated this efficient workflow. Once documents were captured, we stored the information in our private, secure cloud, and indexed it at our Windsor, Conn., production center, providing cost-efficient, hybrid approach. The intelligent data was then automatically entered into our client’s content management system, enabling faster, easier decision making. Our end-to-end reporting capabilities provided complete visibility into each document’s workflow, offering our client a “Work in Process” view of their documents throughout processing.


To learn more, visit Novitex.com or contact us at [email protected]

30 YEARS Of Industry Experience

9,000 On-the-ground Employees

FORTUNE 500 Client Base

1,400 Client Sites

6.6 BILLION Annual Multi-channel Transactions

Thank You!


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