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August 9th, 2005

FTA Conference

What Would It Be Like If…

The most relevant, up-to-date content wasimmediately available?Process steps wereautomated or executedby the right people atthe right time?The right systems aretransparentlyconnected and updated?

They can makeBetter Decisions, Faster

Collaboration

Electronic

Forms

Records

Management

BPM VCM

Digital Asset

Management

WCM

Document

Management

Imaging

ECM

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CollaborateCollaborate

Create, access, and manageCreate, access, and manage

SearchSearch

SecureSecure

Lifecycle managementLifecycle management

Content

ArchiveArchive

ENTERPRISE WIDE

Print Output

EnterpriseApplications(Invoices,Statements,etc.)

Databases

Forms

Photos,Graphics,Video

Email

Web Pages

Paper Documents & Files

Electronic Documents

Fax

Process

AuditableAuditable

Consistency and controlConsistency and control

Handle exceptionsHandle exceptions

Automate, streamline, and optimizeAutomate, streamline, and optimize

Simulate and analyzeSimulate and analyze

Activating contentActivating content

ENTERPRISE WIDE

AccountsPayable

Web Content Review & Approval

Customer Service

Human Resources

RegulatoryCompliance

Contract Review

3

Connectivity

People to peoplePeople to people

Multiple repositoriesMultiple repositories

Virtual Content ManagementVirtual Content Management

Systems to peopleSystems to people

Systems to systemsSystems to systems

CRMCRMERPERP DataDataWarehouseWarehouse

LegacyLegacyApplicationsApplications

Other ContentSources

3rd PartyApplications

Email

Citizens

Employees Sister Agencies

Employers

Legacy Interface Application

Derived fromService Credit

System

Derivedfrom

CorporateDatabase(Oracle)

BackgroundCalculationInternal

Database

Derivedfrom

systemcalculation

4

National GovernmentBelgium Ministry of FinanceBelgium TreasuryCanada Treasury BoardCyprus Ministry of FinanceDutch Tax Authorities UKFrance Ministry of FinanceHong Kong, Inland RevenueMorocco Ministry of FinanceOntario Ministry of FinanceNetherlands, Slovak Ministry of FinanceSingapore, Inland RevenueUK Her Majesty's TreasuryUS Department of the TreasuryUS Regional Income Tax Agency (RITA)US Internal Revenue Service (IRS)US Department of Revenue Recovery

FileNet Tax Customers

State and Local GovernmentArizona Dept. of RevenueDC Office of Tax and RevenueGeorgia Dept. of RevenueIdaho State FinanceIllinois Department of RevenueIndiana Department of RevenueKansas Department of RevenueKentucky Revenue CabinetMinnesota Dept. of RevenueMississippi Tax CommissionMaryland Comptroller of CurrencyMichigan TreasuryNebraska Dept. of RevenueNew Jersey Dept. of RevenueNew Jersey Department of TreasuryNorth Dakota Dept. of RevenueOklahoma Tax CommissionOhio Regional Income Tax CommissionSouth Carolina Department of RevenueVirginia Department of Taxation

Virginia Tax Department

BackgroundProcesses 1.8 million returns/year“The Virginia Department of Taxation continues toembark on an ambitious private-public partnership to re-engineer our business processes.” – Department’s homepage

Pre-TACS ChallengesDeposits late =State lost $$ interest earningsRefund Checks held up due to manual process

Which meant angry citizens = increase in calls & lettersThen citizens would call and staff didn’t have access to file

Often Returns given to unqualified staff = multiple handoffsStorage Costs soaringErrors in processing, citizen inquiries, and inappropriate auditsDepartment had terrible reputation on customer service

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Virginia Tax Department

ResultsReturns/hour processed from 34 to over 75Refunds issued in 12 days from 85% to 92%

Reduced Headcount by 230Reduced Storage Space by more than 50%

Inventory of incoming taxpayer correspondence from50,000+ to less than 5K since January 2002

Can now reallocate staff to work correspondencewithout any need to transport the paper documents

Correspondence is scanned and categorized with 48 hours 37,306 fewer telephone calls (down 18%) 11,125 fewer letters (down 20%)

Active Content

Content now becomes an “active” participant in a business process –vs. a passive element

Transaction events trigger the use, creation and management of contentand associated processes

Content and processes are tightly integrated with applications that runthe organization – the difference from workflow!!

Connected to business/transaction events – greater responsivenessUtilize valuable human and system resources when and where theyprovide the most value - automatically

Reducing costs, cycle time and increasing responsiveness

TAX PAYER

FILE

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Data Aggregation

Associated contentScanned images, electronic content

Leverage data in existing systemsvia EAI

Better decisions. Faster

Tax Payer

File

ECM in a Government ContextTax Return Processing

Enterprise App Integration Employer - Payroll System CRM System Updates Accounting & Audit Banks – Funds Transfer File Your Taxes.Com

Misc. Information Customer Detail Return Detail

Lifecycle Management Submit Return Process Return Corrections & CRM Refunds Auditing Accounting For Return

Security Info (Roles) Citizen Service Agent Auditor Collector

Processes Assistance With Filing Tax Processing Error Resolution Collections Accounting Auditing

Content Tax Return E-forms Filing Instructions Check, W2 Correspondence

Events Submit Return Process Return Audit Return Error Correction Citizen Inquiry

Rules Tax Laws Forms Instructions Audit Procedures

ActiveActiveContentContent

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ECM in a Government ContextTax Return Processing

Response

EnterpriseApplications-Processing-Cashiering

-CRM

Return

Filed

Attorney General

DocumentsImages

W-2Return

Correspondence

Exceptions

Workflow/Processes

Updates

Event

Trigger

ActiveContent

Citizen Views Status

ECM in a Government ContextTax Return Processing

DevelopProducts

MarketAnd Sell

AdministerBrokerRelationships

UnderwriteAdminister Loan Contracts

Manage/ServiceLoans

ECM

CollectReturns

ProcessReturns

AuditReturns

MonitorCompliance

DistributeFunds

Tax ReturnPreparation Tax Processing Compliance Finance

Accounting& Auditing

Business Process Management

Web ContentManagement

E-Forms ComputerOutput/

Print Stream

ImageManagement

ContentManagement

EAI

EducateCitizen

Tax FormInstructions

On-lineTax Forms

ComplianceReports

CRM &Audits

CollectionInformation

BankTransfers

Dec

isio

ns

Pro

cess

Sys

tem

s

Ou

tpu

t

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National Assembly of Wales

Background:It has 3,500 employees and a budget ofapproximately £11bn.Annual subsidies worth approximately £270mCustomers are farmers, agri-businesses, landowners

Challenges:Slow payment of grants and subsidies to 18,000farmersAccommodate 2500 rule changes per year

Sheep schemes, Cow Schemes, CornSchemes, etc.

Heavy reliance on clerical input to old system, withmuch paper chasingLack method of getting independent confirmation offarmers claimsDistributed operation with 600 users in 14 locations

National Assembly of Wales

ResultsFaster payments and reduction in errors andcomplaints

Use GIS to confirm claims –Changes in rules and regulations can be done,via process, in minutes vs. weeks or months

Ability to smooth workload peaksWeb interface for claims & queriesReduction in administration overheadStaff concentrate more on value-add – exception workStaff performance increased in promotions.

Now most popular place to work in WalesCulture improvements - flexibility, openness,customer focus. (Had been a bad environment)

Over 1.6 million pounds per year savings

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Miami Dade Clerk of Courts

Background3000 cases per day6th Largest Traffic Court in the US28 geographically dispersed courts

Pre-SPIRIT Challenges:Case handled minimum 37 timesGrowing backlog of cases and lost revenue – speedy trialsOften times took 3 weeks for entry in systemPoor Customer Service: Staff spent significant time shuffling filesNo visibility into size of backlog, employee efficiency or bottlenecksMillions in Police OvertimeErrors in Disposition of Case by JudgesHad to dismiss many cases because of backlog = Lost RevenueSafety Concerns of Mail HandlingAttorneys come down to review documents and file motions

Miami-Dade’s move toSpirit [FileNet] hasdelivered:

Reduced continuances –no longer is court timerequired to processcontinuances to aligncalendars or availability ofparties, paperwork ormulti-part casesReduced demands onPolice officer time –leveraging the calendaringworkbench, calendars areoptimized to increase useof everyone’s timeAbility to manageincreased case loadswithout adding additionalcourt rooms, clerks orsupport staff. Spirit[FileNet] has enabled theelimination of Night court

Miami-Dade County Clerk StrategicBenefits:

“Spirit has doubled if not tripled efficiency –should go paperless for all processes” – Beth Bloom, Judge

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FileNet’s ECM solution isincreasing value to Miami-Dade County Clerkthrough:

Reduced need for storage– over 3500 cubic feet ofstorage eliminatedReduced headcount (over40 positions returned tobudget office -- $1M+/per year saved)Enabled overtimereduction (over $7Msaved in Police Officerovertime alone)Increasing availability anddata quality

Multiple parties cannow simultaneouslyshare files

Single on-line system ofrecord provides:

Greater linkagebetween courtoperations and IT

Miami-Dade County Clerk BusinessBenefits:

“Worse than doctors – can’t read handwriting let alone make legible for others” – Steve Leifman, Judge

FileNet’s ECM solution is increasingvalue to Miami-Dade County Clerkthrough:

Ability to close 65% of cases set in the pre-trial hearings75% reduction in the total number of cases going to trialProduced over $100K of savings per month for the Miami-Dade PoliceDepartment; saving 1800 Police Office hours per month (more policeon street fighting crime, crime rates have reduced). Anticipate thisnumber increase 400% to over $5M in overtime expense savings forthe combined police departments; saving 100,815 on-duty PoliceOfficer hours per year, which is equivalent to 50 full-time police officersCollection of fines and court costs has increased by over $1.2M inthree months with expectations that $10M in collected costs and finesannuallyReduced dismissals due to speedy trial rules, “speedies,” by over 48%

Miami-Dade County Clerk BusinessBenefits:

“State Attorney’s don’t need to keep files now, everything is online” – Bart Armstrong,

Assistant State Attorney,

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Missouri Public ServiceCommission

Background:Regulates 1400 Utilities in State of Missouri

Accepts complaints, tracks outages, manages ratesand carries out legislative changes

300% increase in utilities since early 90’s

Challenges Pre-EFIS:9m documents on file; 1m added per year20% increase in workloadNo headcount increase since 1992Swimming in 9 million documents

Stacks of paper filings from Utilities were starting to be laid inthe hallways of the Commission Office.All of which were manually entered into 4 separate legacysystems

Missouri Public ServiceCommission

Results:Reduced Processes from 158 to 60

Before: 35 intersected with main systemAfter: All 60 intersect with EFIS

Reduced # of dept. applications from 64 to 10Reduced # of databases from 20 to 6Did away with 5 million docs stored redundantlySouthwestern Bell has stated:

In the first month they saved 40 staff hours 4,440 pages of paper Thousands in postage and courier fees

One year Savings of $3.3 million

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Think “Process”

“Technology is simply a vehiclefor carrying out processes.The power of your company iscontained in the processesthemselves.The most valuableopportunities for establishingcompetitive differentiation arein how a product or service iscreated, sold, delivered, andsupported.”

– Jack Welch, former CEO of GE

Redefining Business ProcessManagement

Automate

Integrate

Optimize

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Total Process Integration

Manage the entire processA single view of the entire processUnified process management environment

Connect processes to those applications and systemsthat run and drive the business

EAI and component integrationIntegrate without additional coding

The Heritage of Business ProcessManagement

Source: Gartner, FileNet

Workflow

-Process Flow for human-to-human work:

Task Completion, Work Queues, Content Lifecycle, Forms Routing

Application Processes

-Process Flow for automation among systems:

-Application Events, Dynamic Data Routing, Automatic Updates

External Process Enablement

-Process Flow Outside the Enterprise:

-User Inbox, Customer Interaction, Partner CollaborationSuppliers PartnersCustomers

Process Lifecycle Management

-Continual Process Optimization:

Measurement, Analysis, Simulation, Change Management

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..but what about..?

EAIEAI provides excellent integration betweenapplications, but fails to embrace humaninteractionsWorkflowWorkflow provides a high level of processperformance but does not natively provideintegrated, automated applicationtransactions and optimization services.Rules/BRE Rules/BRE provides policy and flowmanagement but does not provideoptimization services and good humanfactors interactionsProcess analytics & simulationsProcess analytics & simulations provideadditional process insight, yet lack the abilityto put it directly into use

Possible

Registration

Deliver to

Underwriter

Sort for 9 Regions

Deliver to

Manager

Sort Mail

Files FAXed

Change Condition

Status in Bravura

Underwrite LoansOrder Flood

Insurance

Restatus Loan &

FAX Disposition

Letter

Generate & FAX

Approval Letter

Underwriter Inbox

Manager Outbox

Michigan

Committee

Outbox

Michigan

Committee Inbox

Manager Outbox

Manager Inbox

Outbox of

Underwriter

Underwriter InboxRegional InboxMailroom Outbox

C.

Michigan

Committee

Review

Deliver to

Michigan

Committee

Manager Review

Deliver to

Manager

Manager

Distributes

File Delivery to

Designated

Regions

Fileroom InboxOutbox to

Fileroom

Underwriter InboxConditions

Outbox

Wait for

Conditions

Fileroom InboxOutbox to

Fileroom

Mortgage

Insurance Inbox

Fileroom InboxUnderwriter

Outbox

Outbox to

Portfolio

Department

Manager Outbox

Deliver to

Fileroom

C.

Review

Conditions

Deliver

Conditions to

Underwriter

Match Conditions

with FileConditions FAXed

File the FileGenerate BarcodeDeliver file to

Fileroom

1008 FAXed to

Mortgage

Insurance

Company

Generate Barcode

B.

Deliver to

Portfolio

Department

A.

Deliver to File

Room

Generate Reject

Letter and FAX

out

Generate Reject

Letter and FAX

out

A. Mortgage Insurance

B. Conditions Processing

File the File

Flagstar Bank Underwriting

Current Loan Documents Workflow

Legend

Manual Task

Wait

Automated Task

Semi-Automated Task

Loan Origination

Initial Customer Process• RED – Requireshuman intervention

• BLUE – Semi-automated activity

• GREEN – Fullyautomated activity

• YELLOW – Processlatency

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BPM-enabled Process

Extreme ROI

76% cost savings, totaling over $5OM

Dramatic decrease in processing times

All parties, including clients, now have immediateaccess to information and are part of the solution

Generate OtherInternal Docs

Generate Reject

Letter and FAX to

Correspondent

Assistant

Reviews

Conditions

Index Documents

Manager Queue

Underwrite LoanPossible LP & DUQC & Index

Documents

Possible

Registration

Start of C.

B.Auto IndexDocuments

Generate and

FAX ApprovalLetter

Order Flood &

MortgageInsurance

Inbox ofUnderwriterRelease to IDM

FAX Received

Route to

Assistant

Route to

Underwriter

Inbox

Route to

Manager

Route to

UnderwriterQueue

B. Conditions Processing

Done.

Restatus Loan &

FAX Disposition

Letter

B.

FAX Received

Flagstar Bank UnderwritingElectronic Document Workflow

Legend

Manual Task

Workflow Route

Wait

Automated Task

Semi-Automated Task

Route toAuditing Audit Loan10%

Route to 4506

Review

4506 ReviewProcess

Auto Transferfrom LOS

Loan Origination

Results•Underwriting processreduced from 7 days to48 hours or less•Processing costsreduced from $250 to$60 per loan•Supported a 400%increase in volume oforiginations

•Eliminated lostdocuments•Effortless documenttransfers to investors•Near-STP environmentwith minimal humaninteraction

Before

After

Eliminates process latency

Eliminate time associated with routing of workReduce process cycle time

Eliminate time associated with route determinationIncrease productivity

Abstract task execution from work routingMinimize training requirements

Execute TaskExecute TaskDetermine Determine

next task next task

Move to Move to

next task next task

Exe cute Ta skExe cu te Ta skDe te rm ine De te rm ine

ne xt ta sk ne xt ta sk

Move to Move to

ne xt ta sk ne xt ta sk Exe cu te Ta skExe cu te Ta sk

De te rm ine De te rm ine

ne xt ta sk ne xt ta sk

Move to Move to

ne xt ta sk ne xt ta sk Exe cu te Ta skExe cu te Ta sk

De te rm ine De te rm ine

ne xt ta sk ne xt ta sk

Move to Move to

ne xt ta sk ne xt ta sk Exe cu te Ta skExe cu te Ta sk

De te rm ine De te rm ine

ne xt ta sk ne xt ta sk

Move to Move to

ne xt ta sk ne xt ta sk Exe cu te Ta skExe cu te Ta sk

De te rm ine De te rm ine

ne xt ta sk ne xt ta sk

Move to Move to

ne xt ta sk ne xt ta sk

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Enforces process integrity

Ensure complianceState Tax Laws

Rapid deployment of changesAs Legislation and CodeChange

Enhances process execution

Parallel processingReduce cycle times

Resource poolingWorkload balancing

Location independentMore effective resource utilization

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Elevates business logic

Processes (Tax Laws) changemore frequently than applications

Increased process agility

Change processes withoutchanging code

Reduced cost of ownership

Process changes are business leadProcess owners are bothaccountable and responsible forimplementing process change

Auto Escalation

Maintain SLA’sProcess timersStep deadlines

Parameter drivenException handling

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Process Notifications

Need for Process Visibility

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Macro-Visibility: Analytics

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Total Sales

East

West

North

Process cost breakdown

13%

17%

57%

13%Approval

Credit Check

Underwriting

Sales Admin

Processing Time

0

20

40

60

80

100

120

140

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North

Reports

Data Cube

Find exactly the rightinformation

Flexible OLAPinfrastructure

Tailored views

Track Key PerformanceIndicators“On-the-Fly” Analysis

Micro-Visibility: Process Tracking

Visibility down toan individualprocess and worktasks

Complete recordof processed tasks

“Real-Time” view

Audit Research

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Process Analytics

Find exactly the right informationFlexible OLAP infrastructureDifferent viewsEase of accessibility

Track KPI’sExtendable analytics schema

Drive down operational costsCost per transactionCosts per step

Forecasting: Simulation

Squeeze out every ounceof process value

Cost and time-basedanalysisEnsure optimal resourceutilization

Mitigate RiskSimulate change prior todeploymentEnsure benefits arerealized

Refine business modelDirect comparison withrealoperational process data

Predictive modelingPreempt known events

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Simulation in Action

Process Simulation

Consistent simulation environmentDirectly leverage analytical dataSimulate multiple processesSimulations stored as objects in Content Store

Version controlSecurity access control

Design Simulation

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“Point in Process” Collaboration

TeamspaceTeamspaceExceptionException

Complex issueComplex issue

Error conditionError condition

Requires multipleRequires multiplepeople to solvepeople to solve

““Point in ProcessPoint in Process””CollaborationCollaboration

People invitedPeople invited

Content providedContent providedautomaticallyautomatically

Tasks to be doneTasks to be done

“Exceptional” exceptionprocessingSingle audit trailNo programming required -OOTB

FileNet P8 | Simplified Architecture

FileNet P8 Platform

Enterprise Infrastructure

Applications

Hardware OperatingSystem

ApplicationServer Database Storage Directory

Server

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FileNet Throughout the U.S.

Maine

Rhode Island

Connecticut

New Jersey

Delaware

Maryland

Washington DC

Vermont

New Hampshire

New York

Pennsylvania

West Virginia

Virginia

Ohio

Michigan

IndianaIllinois

Wisconsin

Minnesota

North Carolina

South Carolina

Georgia

Florida

Alabama

Mississippi

LouisianaTexas

Arkansas

Tennessee

Missouri

Iowa

North Dakota

South Dakota

Nebraska

Kansas

Oklahoma

New Mexico

Colorado

Wyoming

Montana

Idaho

UtahNevada

Arizona

California

Oregon

Washington

Alaska

Hawaii

Massachusetts

Kentucky

No presence1-4 State Agencies5-9 State Agencies10+ State Agencies

FederalLocal

Business Process Management Business Process Analysis

The Unique Value of FileNet

Integrated DocumentManagement

Content + Process + Connectivity = Business Value

* Magic Quadrant Disclaimer: The Magic Quadrant is copyrighted (2004) by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of amarketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner doesnot endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant.The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to thisresearch, including any warranties of merchantability or fitness for a particular purpose.

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FTA Presentation

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