Data Capture for Accounts Payable

Transcription

1 Data Capture for Accounts Payable Putting the See in OCR Q Featuring Insights on... Benefits of Automated Data Capture Underwritten in part by ABBYY AnyDoc Software Perceptive Software (Brainware) Esker Metafile OpenText/AliTek ReadSoft Front-End and Back-End Document Capture and Archiving Manual versus Automated Data Capture Different Forms of Image Recognition Data Capture Solution Providers

2 Table of Contents Executive Summary...1 The Case For Capture...2 The Data Capture Universe...4 The Data Capture Process...6 From Back to Front...7 Manual vs. Automated Capture...9 Front-End Automation Forms of Image Recognition...13 Quality Control / Validation / Reporting...15 ABBYY...16 AnyDoc Software...19 AnyDoc Software Case Study...23 Brainware...24 Brainware Case Study...28 Esker...30 Esker Case Study...33 Metafile...34 Metafile Case Study...37 OpenText / AliTek...39 OpenText / Alitek Case Study...43 ReadSoft...45 ReadSoft Case Study...48 Conclusion...49 About PayStream Advisors, Inc...49

3 Executive Summary When we first reported on Optical Character Recognition (OCR) and Data Capture, with our Market Discovery Report in 2008, AP departments were just beginning to realize they d put the cart before the horse. By scanning documents at the back end they were missing the huge potential for cost savings, workflow acceleration, increased accuracy, improved compliance and reporting. Flash forward to Automated workflow is now the state of the art. Most AP departments are able to process electronic payments. And yet, worldwide, two of every three invoices still arrive from vendors on paper. Unwilling to wait for technology to trickle down to all of their vendors, many AP departments, particularly those that process high volumes of invoices, have started scanning paper invoices upon receipt to reap the benefits of electronic workflow improved efficiency, lower costs, increased accuracy, and regulatory compliance now. Solution providers have seen the potential in this developing market for OCR/ Data Capture solutions, but also as a gateway for end-to-end epayment solutions and are pushing for perfection, each searching for the right combination of fault-tolerant algorithms that will enable companies to simply open the mail and process stacks of paper invoices straight-through, without any special document preparation or manual corrections. This report examines current demand for OCR/Data Capture solutions and should serve as a guide for AP decision-makers considering a data capture solution. It also includes an overview of several popular OCR/Data Capture solutions, and case studies, organized for easy comparison. For more information on this and other research reports available from PayStream Advisors, visit:

4 The Case For Capture In a 2012 survey of more than 300 AP professionals, more than half (52 percent) listed the handling of paper invoices as their number one invoice management challenge, followed closely by manual data entry and inefficient processes. No wonder, when you consider that the same survey found that they still receive almost two thirds of their invoices (64 percent) on paper. Almost half of the companies surveyed said they scan invoices on the front-end as soon as they are received and data shows that almost half of those still extract data from scanned invoices manually. Figure 1 Biggest Invoice Management Challenges Majority of invoices received in paper format 52% Decentralized invoice receipt 16% Lost or missing invoices 14% Manual data entry & inefficient processes 47% Lack of visibility into outstanding liabilities High number of discrepancies & exceptions Inability to approve invoices in time to capture discounts 21% 19% 23% Manual routing of invoices for approval 34% With the benefits of front-end data capture clearly established, progressive companies are moving to convert static paper invoices into dynamic data to increase operational efficiency, add management control and visibility into spend, and comply with Sarbanes-Oxley reporting rules. In fact, short of increasing electronic invoicing, implementation of invoice imaging and automated workflow are the top two priorities in AP automation today. And 76 percent of practitioners say they plan to act on their top priority within the year.

5 Increase electronic invoicing 28% Figure 2 Top AP Automation Goal for 2012 Implement invoice imaging Automated approval workflow for Invoices 17% 19% Automate payment processing 11% ERP application upgrade 9% Outsource portions of AP process 2% Other 15% Figure 3 Timeline for Implementation of Top AP Automation Initiative 29% 31% 25% 16% Already Started 1-6 Months 6-12 Months More than 12 Months

6 The Data Capture Universe If we can land a rover on Mars, you would think that someone, by now, would have devised a foolproof way for a computer to read a stack of paper invoices and accurately convert them to electronic data. The benefits of Automated Data Capture are clear: reduced processing costs, faster processing, fewer keying errors, better reporting, and Sarbanes-Oxley compliance. And yet, only 28 percent of companies surveyed by PayStream Advisors in 2012 currently use such technology. That s only a little better than half of the companies that use front-end imaging that is, companies that already scan paper invoices and move them through their system electronically. Figure 4 Imaging Technology Use Currently Use Implementing in 6 Months 70% 61% 49% 47% 28% 16% 19% 16% 14% 12% Front-end Imaging OCR / Automated Data Capture Automated Workflow Electronic Payments Purchasing Cards Challenges What s keeping people on the sidelines? A sampling of responses from various sources suggests there are two main reasons: Concern for extraction accuracy Lack of budget

7 Turns out the fuzzy logic required to locate, interpret, and convert printed and sometimes handwritten characters on a page, from myriad forms, in hundreds of languages, is harder to calculate than the immutable physics of trajectory, deployment and landing. It s a question of consistency. It s not unusual for a large, or even a medium-sized company to have more than 20,000 vendors spread over multiple continents. Some have more than 80,000. Larger vendors, who, themselves know how hard it can be to work with so much paper, may submit their invoices electronically, or, if on paper, at least in a scan-friendly format. Others, there s no way of telling. Anyone who has ever tried to decipher a doctor s prescription can understand the challenge a machine might face translating handwritten squiggles into alpha/ numeric values. Solution providers compete on whose solution can read the widest range of documents, in the widest range of languages, in the shortest time, with the least amount of document prep and manual corrections. There is no denying that front end automation and data capture saves both time and money. The technology that solution providers utilize to go about this can vary some solutions learn; some can be taught; and some, especially at the lower end, simply promise to do the best they can, eliminating the need for manual keying on most structured documents and leaving dicier data for human intervention. How do you know which solution is a good fit for your company? Do your homework and be sure a solution provider you choose to work with is capable of meeting the needs of your organization.

8 The Data Capture Process This report focuses on OCR technology as it relates to accounts payable functions and improving the invoice-to-pay cycle. The graphic below illustrates the components of most OCR applications, although different vendors may place greater emphasis on one component over another. Figure 5 Different Components of OCR Applications Data Extraction Reporting & Analysis Data Validation Quality Control Document Classification Automatic / Manual Indexing

9 From Back to Front All scanning and OCR solutions share the goal of eliminating the manual handling of paper. Not every solution follows the same approach or provides equivalent functionality at each step of the process. Back-end Document Capture and Archiving The digital successor to microfilm and microfiche, documents are scanned at the end of the receipt-to-pay process and indexed for retrieval. Historically Accounts Payable departments have used scanning solutions in this manner to eliminate physical storage, facilitate document retrieval for dispute resolution, audits and supplier inquiries. This method has largely been replaced by front-end imaging with electronic routing and approval. Figure 6 Biggest Benefits of Front-End Imaging Quicker approval of invoices 55% Fewer lost invoices 35% Increased employee productivity 50% Improved visibility over liabilities 27% Lower processing costs 58% Reduction in late payment penalties and interest 15% Better compliance with regulatory requirements (SOX, FASB) 5% Other, please specify 15%

10 Front-end Document and Data Capture In this scenario, paper invoices are scanned remotely or at a central processing facility upon receipt. Information is extracted from the invoice images either manually or through automated data capture to facilitate internal review and approval. Front-end data capture is a big functional improvement from back-end imaging, because it facilitates a genuine improvement in the invoice receipt-to-pay cycle. But as a mission-critical process, capacity is critical to avoid bottlenecks.

11 Manual vs. Automated Capture There are two ways to extract data from these front-end OCR scans manual and automated. Right now, the tally is running about 60/40 in favor of automation, and that lead is expected to widen as accuracy improves. Manual In a manual data capture system, AP staff key information from invoice images into forms on their computers. This method has traditionally been most effective for companies that get a lot of handwritten, or other non-standard invoices. Automated With automated extraction, the computer analyzes scanned documents and extracts data according to programmed criteria. This process dramatically reduces or eliminates manual keying of data. Automated capture raises the bar for image quality, because machines are typically not as intuitive as humans when it comes to interpreting partial or garbled data. Figure 7 Percentage of Invoices Captured with Manual Keying 37% 25% 17% 10% 12% Zero (None) 1-25% 26-50% 51-75% More than 75%

12 65% Figure 8 Percentage of Invoices Processed with Automated Capture 10% 10% 10% 5% Zero (None) 1-25% 26-50% 51-75% More than 75%

13 Front-end Automation 101 Unlike a Mars mission, where you have one launch site and one target and the challenge is to manage the transit in a highly controlled environment, successful front-end data capture is all about developing a fault-tolerant system capable of accurately extracting data from a wide variety of non-standard invoices, of inconsistent print quality and page count, in random order, in multiple languages. In other words: creating order from chaos. Today s best practices call for front-end imaging and data capture. Paper documents are scanned at receipt, either at a central processing site or remote facility, to digitize the data they contain. Information is then extracted using one of several types of recognition technologies: OCR and ICR are character-based recognition systems and are acronyms for Optical Character Recognition and Intelligent Character Recognition, respectively. OMR, or Optical Mark Recognition, recognized the presence of marks put in specific locations on an invoice. Barcode Recognition is another method of electronic data capture. Figure 9 Front-End Processing Using Scanning and OCR Document Receipt Scanning Classification OCR and Data Capture are the central elements of modern AP automation initiatives. Data Capture IDC / OCR Validation Image & Data Storage Retrieve & Export

14 While some solutions require a classification system to determine what needs to be forwarded to OCR, others rely on Intelligent Data Capture (IDC) which classifies by utilizing the full text content. A classification system can also utilize document attributes (such as height, width, and file size), keywords and algorithms, full text content, and image-based comparisons. All of these technologies offer excellent accuracy, usually 80 percent or above on the first pass read rate, depending upon the quality of the original document and the hardware used. Accuracy can be increased to more than 99 percent by validating the information against back-end databases (more on that in a minute). Today s solutions support a wide range of brand name hardware, including network and desktop scanners. In addition to offering image and data capture, the applications provide image enhancement features such as de-skewing, de-speckling, text smoothing, edge trimming, dot/line/border, flipping, and more. Once invoices have been scanned and enhanced to optimize recognition, some solutions use scripted rules to locate, extract, and validate the desired information, regardless of its location on the invoice. State of the art data capture uses IDC. State of the art systems can locate, extract and validate directly out of the box without the need for scripting.

15 Form Types The structure of a business s incoming documents is an important consideration in selecting a data capture solution. With some so-called structured documents, such as an employment application, information always appears in the same location on the page. For example, an applicant s name may always appear in the same box in the same place on the form. With unstructured documents, such as a contract, the information is more freeform and can appear virtually anywhere on the page. Invoices, which tend to vary in format from vendor to vendor, are called semistructured documents and fall somewhere in between. The types of documents a company processes will have a direct bearing on the extraction solution it selects. Figure 10 Characteristics of Structured/Unstructured Documents Document Type Structured Semi Structured Unstructured Document Characteristics Examples Ideal Data Capture Method Use By Accounts Payable Familiar data appears in familiar places Credit card applications and medical claim forms Template based OCR/ICR Low volume operations for relatively few invoice formats Familiar data appears in both familiar and unfamiliar places Invoices, payment orders Intelligent Data Capture, keyword search Invoice processing Unfamiliar data appears in unexpected places Contracts, hand written notes Pattern recognition technology based on scripted rules High volume operations and many invoice formats Image Recognition Methods Templates Fast and fairly accurate, template-based image recognition works like a digital cutand-paste, with users defining fixed capture zones or floating zones tied to visual anchor elements to accommodate routine position shifts in documents during scanning. The biggest advantages of template-based recognition are speed and accuracy with first-pass accuracy approaching 100 percent after validation. Most documents processed by AP departments are not structured, however, so templates are rarely applicable.

16 Free-form/Intelligent Data Capture A sophisticated solution with fuzzy search capabilities, Intelligent Data Capture (IDC) enables end-users to accurately extract content from documents of all types, without prior knowledge of the layout of the documents or the type of data they contain. An ideal IDC engine is able to correctly identify and sort batches of both structured and unstructured documents on the fly, locate data fields in both kinds of documents, and extract the desired content from those fields. An IDC solution does not require time to code elaborate sets of rules or design form templates. Fault-tolerant search capabilities improve extraction results by allowing the solution to search the complete document text for similar information rather than relying on keyword searches.

17 Quality Control / Validation / Reporting Most solutions provide users with the ability to capture specific fields, classify documents, view invoice information, and correct errors or low-confidence characters. Typically this is in the form of a color-coded interface for operators to validate or correct exceptions. Invoices where the data capture accuracy falls below the pre-defined acceptable confidence levels are culled into a separate work queue, to be manually reviewed and corrected by an accounts payable operator. Many solutions display the invoice image and the data that the OCR engine has extracted side-by-side on a single screen for simple click-and-fix corrections. Some solutions include auto learning, and teaching, capabilities, by which the system can be trained to more accurately read and classify specific types of data. With smart indexing, the capture solution can populate missing data by pulling it from vendor information already stored in the vendor database. Although OCR applications don t typically include their own data repositories, they do integrate with existing document management, ERP, accounting or other backend systems for data storage and retrieval. Some solution providers offer data storage products that complement their OCR applications, typically as an add-on. OCR solutions typically come bundled with a variety of standard reports, including batch status, operator statistics, extraction accuracy, etc. For more robust reporting, most solutions integrate with third-party reporting tools, such as Business Objects or Crystal Reports.

18 ABBYY ABBYY, headquartered in Moscow, Russia, is a leading provider of document recognition, data capture, and linguistic technologies and services. Its key products include the ABBYY FineReader line of optical character recognition (OCR) applications, ABBYY FlexiCapture line of data capture solutions, ABBYY Lingvo dictionary software, and development tools, supporting a variety of platforms and computing environments. Paper-intensive organizations from all over the world use ABBYY solutions to automate time- and labor-consuming tasks and to streamline business processes. ABBYY products are used in large-scale government projects such as those of Australian Taxation Office, Lithuanian Tax Inspectorate, Ministry of Education of Russia, Ministry of Education of Ukraine, Montgomery County Government of the USA, and Government of Canada. ABBYY OCR applications are shipped with equipment from the world s top manufacturers such as Epson, Fujitsu, Fuji Xerox, Microtek, Panasonic, Plustek, Ricoh, Toshiba, and Xerox. Website Founded 1989 Headquarters Moscow, Russia Other Locations Milpitas, USA; Ontario, Canada; Munich, Germany; Kiyv, Ukraine; Theale, UK; Taipei, Taiwan; Tokyo, Japan; Sydney, Australia; Nicosia, Cyprus Number of Employees Number of Customers 30 million (across all ABBYY products) Key Clients Datacap, Fujitsu, EMC Documentum, IBM, Microsoft, Panasonic, Xerox, Ricoh, Pitney Bowes, HP, Nokia, Toshiba, HTC, Lexmark, Datacap, KnowledgeLake, Konica Minolta Partners / Resellers NewWave, TechData, Ingram, ScanStore, CDW, Scantron, Digital Documents, Formtran Transactions 9.3 billion pages per year Processed Annually Awards / Recognitions KMWorld Trend-Setting Product; AIIM Best Practice AWARD; Buyers Lab; PC Magazine; ZDNet Editor s Choice Solution Name ABBYY FlexiCapture Year Introduced 2011

19 Differentiators Premium accuracy in locating and recognizing data in documents of any complexity in a wide range of languages All-in-one solution scales from a stand-alone installation for SMB or departmental level to a distributed enterprise system Flexible workflows accommodate any specifics of the business process offering database lookups, custom processing stages, connecting thirdparty processing engines, and modification of user interface Installation ABBYY installation typically takes less than half a day and can be handled by any administrator with knowledge of Windows OS and IIS. ABBYY also supports remote installation via Active Directory and SMS. Setup time/solution engineering can take from eight to 80 hours, depending on the number of document types and their complexity. The average implementation can take from two weeks to four months, depending on the scale of the project, the number and complexity of document types, and the desired level of automation. Configuration For semi-structured documents, such as invoices, FlexiCapture uses a proprietary FlexiLayout technology based on keywords and the relative position of elements including text, separators, barcodes, white spaces, etc. A FlexiLayout can be created to capture defined fields from a wide range of common invoice formats. Template-based recognition is also available to accommodate large volumes of standardized documents. Document Acquisition Intelligent rules eliminate the need for barcodes and separators, with no sorting required, except to make sure that multi-page documents are arranged in the proper sequence. Although 300 dpi scanning is recommended, 200 dpi is supported. Classification Documents captured by FlexiCapture can be automatically classified using image-based or content-based approaches. In the image-based classification mode, the system can quickly process similar looking documents, such as forms or invoices from the same vendor, and allows users to achieve much faster data extraction. The content-based approach helps classify and process unstructured documents that may have very different layouts within the same document type (e.g. contracts, letters, etc.).

20 Automatic Learning FlexiCapture can learn parts of the basic document layout automatically from sample images. For the most precise capture, however, especially with automated document separation, manual tweaks may be required. In the next release of the software, FlexiCapture is expected to also provide operator-assisted learning. That means that when the software fails to find a required field, the operator can show it where to find the data. The software will use that information to build rules for finding that data on subsequent documents. Five to ten samples of each type of document are typically required to teach the system a document. Validation / Correction Business rules are validated automatically on the server and may include database validation, list validation, format check as well as any scripted rules. Rule errors are presented to the operator at the visual validation stage. Manual corrections, via rubber banding, take five to 30 seconds. Product also supports visual validation, double visual validation requiring agreement by two users, distributed validation where different fields are verified by different users, and other custom validation configurations. The system can accommodate up to 10,000 validations an hour, with each user able to validate up to 200 invoices an hour. Matching / Error Detection Data matching is automatic. Maintainability New documents have to be defined, unless they fall under the generic definition, in which case changes may not be required. FlexiCapture recognizes almost 200 languages, including Chinese, Japanese and Korean. Pricing ABBYY software is sold primarily through VARs and systems integrators, who provide the quote and the first line of product support. Presales support and technical support from ABBYY are available 9 to 5 on workdays by phone and . There is an annual software maintenance and upgrade assurance fee, typically added on as a percent of the annual software licensing fee.

21 AnyDoc Software Founded in 1989, AnyDoc Software provides award-winning automated document, data capture, and classification solutions. Their flagship software, OCR for AnyDoc, enables companies around the world to cut costs and inefficiencies of manual processes. AnyDoc Software solutions are capable of identifying and capturing data from nearly any business document, including invoices, remittances, and checks for delivery into workflow, financial management, patient accounting, document management, and other business systems. More than 3,000 clients and 70,000 users worldwide in 45 countries rely on AnyDoc to eliminate millions of hours of manual data entry while improving productivity and accuracy; including such well-known clients as Sony Pictures Entertainment, BlueCross BlueShield, U.S. Census Bureau, Fastenal Company, Northeast Utilities, and Coop Retail Group. Read client case studies at www. anydocsoftware.com/casestudies. Website Founded 1989 Headquarters Tampa, FL Other Locations Zug, Switzerland; Slough, UK; Wiesbaden, Germany; various U.S. satellite offices Number of Employees Number of Over 3,000 Customers Number of End Over 70,000 Users Key Clients Fastenal Company, Sony Pictures Entertainment, BlueCross BlueShield, the U.S. Census Bureau, LeasePlan, Coop Retail Group, and more Target Verticals Banking and financial services, Healthcare, Insurance, Mortgage, Utilities, Manufacturing, Service bureaus, Technology, Government, Retail/Catalog, Pharmaceutical Partners / Resellers Worldwide network of resellers and expanding list of industry and technology partners

22 Awards / Recognitions Innovation Award Runner Up (Institute of Financial Operations/Huntington Bank), 2012 (KLN Family Brands) Best Practices Award Winner (AIIM), 2012 (The Johnson Smith Company) 100 Companies That Matter in Knowledge Management (KMWorld), Best Channel Product (Business Solutions magazine), ACE Award Winner (ECM Connection), 2010 (Leggett & Platt for AP and AR) Innovation Award Winner (TAWPI), 2009 (Pepsi Bottling Group) ACE Award Winner in Banking & Finance (ECM Connection), 2009 Solution Name AnyDoc INVOICE Year Introduced 2000 Differentiators High capture accuracy No templates or manual software training required No barcodes or separator sheets required between documents Scalability Seamless data transfer to ERP Process single and multi-page invoices Line-item capture Auto-balancing of line item and total amounts Installation A typical AnyDoc installation takes five to ten business days, and can be handled by AnyDoc Professional Services or an Authorized AnyDoc Software Reseller. Solution engineering averages one week for summary invoice data capture and two weeks for line item detail invoice data capture, but can require as little as three days, depending on the client s specific customization needs. Configuration AnyDoc s award-winning AnyApp technology automatically locates and captures

23 data down to line-item detail without static templates. Algorithms, keywords, logical combinations and discrete data elements allow AnyApp to locate required information regardless of where it resides on the invoice. AnyApp can even process new vendor invoices on-the-fly, without having to train the software. Document Acquisition Separator sheets and pre-scan document sorting are things of the past with AnyDoc. Scanned images can be read at 200 or 300 dpi. Faxed images are received at varying dpi and the software has tools to accommodate. Automatic Learning AnyApp technology captures the essential data from all invoice images, regardless of where it may be located on each invoice page from one vendor to the next; there are no manual steps. AnyApp also remembers the location of the data it has found for each vendor and uses that information each subsequent time that a vendor s invoice is received, thereby increasing processing speed and overall productivity. This memory technology means data can be captured from thousands of vendors without requiring the inefficient setup and maintenance of thousands of corresponding fixed templates as each new vendor is encountered. Validation / Correction AnyDocINVOICE incorporates data validation tools to ensure data accuracy - such as data formatting, database table lookups, edit masks, data normalization, automatic balancing of subtotals and totals, verifier review - to minimize the need for manual correction. Users have achieved up to 99.9 percent accuracy rate by leveraging these capabilities. When the data from an extracted field contains a questionable OCR character, breaks a business rule, doesn t balance, etc., the operator is alerted to the possible error with a color-coded warning dialog explaining the concern and can be provided with a dropdown list for easy structured resolution. The cursor is positioned at that location in the data record and the corresponding location of the data on the image is highlighted as well, allowing the operator to quickly make the correction. Matching/Error Detection Automatic data matching follows a client s business rules. For example, using database table lookups, a client can ensure a purchase order within their database matches the corresponding invoice. Line item details of quantity, unit price, etc. are compared and when discrepancies occur, the line item details can be automatically displayed to the verifier for review. Invoices requiring in depth accounting review are routed to a research process.

24 Maintainability AnyDocINVOICE is self-maintained through unsupervised learning by the software. AnyApp technology supports locating and extracting invoice data from many different countries invoices which could have varied currencies, currency symbols, VAT tax, address formats and date formats, and multi-country marketplaces such as the Eurozone. AnyDocINVOICE also provides international companies with the ability to install the application with either English, German, Spanish, or French language menus and windows. Workflow Management Workflow functionality is provided in the AnyDocINVOICE BPM Suite. Administrators have the option to control an individual user s access rights. Users and user groups are assigned rights to only the specific process flows and activities required for that user there is no access at all until specifically assigned by an administrator. The solution has the flexibility to follow a client s own organizational hierarchy and enhances this existing knowledge, training and policies with automation. Pricing AnyDoc Software solutions are purchased, with annual software licensing and maintenance fees. Technical Support is available by phone or Monday through Friday, 9a.m. to 6 p.m., with 80 percent of issues resolved in only one contact. A customer library on the AnyDoc website contains a variety of resources from manuals to selfhelp files. File-specific problems may be addressed via secure data upload to a technical support server.

25 AnyDoc Software Case Study Northeast Utilities Challenge Northeast Utilities operates New England s largest utility system serving more than 3.5 million electric and natural gas customers in Connecticut, Massachusetts and New Hampshire. As a provider of energy products and services, the company is continually striving for innovative ways to streamline its operations and maximize its efforts. Northeast Utilities was processing over 300,000 invoices from vendors annually half of which were on paper. In an effort to reduce processing costs due to the high volume of manual entry and catch up on the three to four week backlog of invoices in accounts payable, the company embarked on a two year investigation into automated document processing and data capture solutions that would reduce their processing costs while increasing their productivity. Solution Northeast Utilities implemented AnyDoc Software s AnyDoc INVOICE solution to meet their accounts payable processing needs. The solution worked to free up their resources sooner and streamline the process of getting critical data into its backend systems. AnyDoc Software s technology goes through a vigorous validation process and achieves maximum throughput efficiency. AnyDocINVOICE played a key role in lowering Northeast Utilities processing costs, labor costs, and the number of days it took the company to process an invoice. Result AnyDocINVOICE simplified and accelerated the processing of Northeast Utilities invoices. The company can now quickly and accurately process invoices in less than two hours when the process used to take an entire day. The efficiency of AnyDocINVOICE shrunk Northeast Utilities backlog by 90 percent, reducing the backlog of invoices from 22 days to just three days. Instead of hiring five additional data entry operators as planned, Northeast Utilities reassigned four of its existing team to more business critical tasks, saving the company $240,000 in labor costs. Vendor communications were also improved by AnyDocINVOICE. With quicker access to data, vendors can quickly check on the status of their payment online, resulting in fewer phone calls to Northeast Utilities. The success of AnyDoc Software s solution has led Northeast Utilities to explore future plans to broaden its implementation beyond the borders of its AP department. Staff from Northeast Utilities Conservation and Load Management department has expressed interest in using the software to automate their processing of applications. In addition, Northeast Utilities is considering using the software to process time sheets that come from employees in the field.

26 Perceptive Software (Brainware) Perceptive Software, a Lexmark company (NYSE: LXK), is a leading creator of enterprise content management (ECM) and business process management (BPM) software products and solutions committed to superior engineering and unmatched customer focus. Following Lexmark s acquisition of Brainware in 2012, the Brainware Distiller platform for intelligent data capture has been rebranded as Perceptive Intelligent Capture, powered by Brainware (referred to as simply Brainware in the following text), and can be implemented as a standalone intelligent capture platform, or as an embedded technology in other solution providers offerings. Brainware was built from the ground up to process unstructured documents without templates, keywords, exact definitions, taxonomies or indexing. Brainware automatically classifies documents based on their content, extracts fieldlevel and line-item data from documents, verifies the accuracy of the extracted data, identifies discrepancies, and then exports the data into any number of enterprise systems such as enterprise resource planning (ERP), enterprise content management (ECM), and many others. The typical results are that 90% or more of data entry keystrokes are eliminated thereby improving productivity by 3 to 5 times or more. Errors are reduced or even eliminated, and input cycle times are improved measurably, enabling early payment discounts and better working capital visibility. This allows AP departments to redeploy data entry personnel to other, more value-added activities within the organization, such as developing continuous improvement strategies. Website Founded 2006 (acquired by Lexmark International in 2012) Headquarters Perceptive Software based in Shawnee, KS, with Brainware executive offices in Ashburn, VA Other Locations Maidenhead, UK; Nottingham, UK; Neuchatel, CH; Freiburg, DE; Miami, FL Number of More than 1200 within the Perceptive Software Division Employees Number of Customers Key Clients Partners / Resellers Transactions Processed Annually There are more than 350 implementations of Brainware technologies worldwide Mayo Clinic, Sun Chemical, Philip Morris International In March 2012, Brainware was acquired by Lexmark International and became a unit within Lexmark s Perceptive Software division. Other valued partners and resellers include Microsoft, Dolphin, CSC, Oracle, and Concur Brainware customers are licensed to process billions of pages of documents per annum

27 Awards / Recognitions Solution Name The Walt Disney Company and Mayo Clinic recently received awards largely due to the results they have been able to achieve through Brainware s technology Perceptive Intelligent Capture, powered by Brainware (previously Brainware Distiller ) Year Introduced V5.4 introduced in May 2012 Differentiators Exceptional accuracy No-touch extraction Patented, proprietary technology Unabashedly high-end solution Installation For on-premises AP deployments, Brainware s software can be easily installed, operational and ready for User Acceptance Testing within a few weeks. Brainware uses a foundation configuration based upon best practices, validations and integration points accumulated from hundreds of deployments. This baseline requires neither templates nor vendor-specific rules, can recognize foreign languages (including Chinese, Japanese, Korean, and Thai), distinguish a large number of foreign currencies and taxes, and perform vendor matching and PO line pairing right out of the box. Actual implementation time depends on the level of customization and complexity. Brainware is also available as Software-as-a-Service (SaaS), hosted on Microsoft Azure. Configuration Brainware uses proprietary neural network-based classification technologies, combined with template-free data extraction, that enable processing of any document type through a single platform. As a result, Brainware provides materially higher extraction rates and scalability, while also being significantly less expensive to implement and maintain. Brainware will automatically classify incoming paper or electronic documents based on content, extract any needed data from them based on context (without the use of templates, zonal maps, and/or keywords and anchors), validate the data against external databases or reference sources, and pass the document image and the validated data on for further processing or archiving all with little or no manual keying or document separation. Different document types can be automatically classified after scanning in order to reduce manual sorting. Furthermore, documents can be input from virtually any source including scan,

28 , fax, file system, and database, and in any format including TIF, PDF, DOC, XLS, and many more. Document Acquisition Little or no sorting is required for incoming documents. Scanned documents are OCR d as soon as they enter Brainware so that the system can then read and classify them based on their content. Batch size is configurable and batches can include myriad document types within each one. As part of data extraction in Brainware, the system validates nearly every field being processed. Some fields are validated mathematically (e.g. subtotal + freight + tax = total), or logically (invoice date is not greater than today s date), while others are validated against external data sources (e.g. vendor is matched to valid vendor master file, or PO lines are paired with invoice lines). As a result, Brainware has one of the highest levels of straight-through-processing (i.e., touchless) in the industry. Automatic Learning The standard accounts payable implementation is based upon an initial learn set of 31 samples. For other document types, Brainware requires 2-5 sample documents to learn to process them. Brainware s supervised learning adapts to changes suggested by the business users of the system via a verification interface. An administrative layer is included in order to ensure that such requests are reviewed for acceptability before being deployed globally. Validation/Correction Brainware routinely achieves average field-level extraction rates of 90% or more out of the box. In the event that data is not extracted properly within preestablished accuracy thresholds (e.g., the sum of line items does not match the extracted subtotal) or a business rule creates an exception, Brainware sends an image of the document at issue to a verifier for error correction and/or business rule processing, prompting the verifier for a suggested correction (typically completed with a few keystrokes). Matching/Error Detection During export processing, information on line items extracted from invoices are compared to PO data in the customer s financial system. When a match is found, the PO number and the line number associated with the invoice line item is added to the export data to further automate reconciliation in the financial system. Fault tolerant search capabilities prevent false exceptions, reducing the number of verifications required while maximizing straight-through-processing.

29 Maintainability Brainware processes documents the same way a human would by examining content and locating information that needs to be extracted. With Brainware, there is no IT cost or time required to develop new templates when new vendors are on-boarded or existing vendors change invoice formats. Brainware can process any document type in over 200 languages and in any currency. Pricing Brainware solutions are licensed on either a per-click or perpetual basis. Per-click pricing charges monthly based on the number of document pages processed, subject to monthly minimums. Software license fee and maintenance are included. Upfront costs include implementation and licensing. A perpetual license includes an upfront fee based on anticipated volume. This model tends to offer a lower overall cost of ownership, because annual fees include only maintenance. Support staff is available Monday through Friday from 8 a.m. to 8 p.m., as a standard service. Plans are currently underway to establish a 24/7 customer support system. Brainware s customers can communicate with support staff via phone, and FTP, as well as remote access programs such as GoToMeeting and WebEx. Brainware works with each customer to determine the manner in which they would prefer to be supported. Analytics Brainware Visibility provides business intelligence through a dashboard, reporting, and analytics module that is included with the Brainware intelligent data capture platform. The system provides real-time insight into document status, accounts payable staff productivity; spend data, and many other key AP performance metrics and trends, through a configurable, browser-based user interface.

30 Perceptive Software (Brainware) Case Study Royal Dutch Shell Challenge Royal Dutch Shell is a global group of energy and petrochemical companies with 90,000 employees in more than 80 countries and territories. Providing transport fuel to about 10 million customers each day through its 44,000 service stations worldwide, Shell produces the equivalent of 3.2 million barrels of oil and natural gas per day, saw 2011 revenues of $470 billion and is headquartered in The Hague, Netherlands. The company is currently ranked #1 on Fortune s Global 500 list. Shell needed a scalable platform for header-level data extraction that would enable internal controls and accelerate the processing of new vendor invoices. The company was looking to centralize accounts payable for all of its global operations and needed to establish standard global AP invoice processing protocols. Solution Shell first implemented Brainware Distiller in 2003, having selected the technology as a scalable platform for header-level data extraction, enabling internal controls and processing new vendor invoices swiftly. In 2009, Distiller played a key role in centralizing accounts payable operations to Shell s shared services center in Manila, as well as establishing a standardized global protocol for processing invoices into SAP. Result We ve counted on Brainware as a cornerstone of our global SAP rollout since 2003, relying on Distiller s capabilities for handling multiple languages, countless document formats and a complex array of regional compliance needs with a single platform, which supports the efficiency goals of our captive financial shared services operation, the world s largest, said Steven Breaden, Senior Manager of Expenditure Technical Strategy at Shell. Furthermore, automated capture has given us greater control throughout the accounts payable process, and has allowed us to implement a standardized process for payables in our global Downstream business. Now able to process and reconcile line-item data against an internal purchase order database, the company was achieving significant levels of straight-through (touchless) processing on PO-based invoices, and the

31 technology s language-agnostic capabilities supported the processing of documents from diverse regions using a single data capture platform. From the outset, the company was surpassing 90% field extraction. Breaden also noted Distiller s ability to provide an end-to-end solution capable of handling both high-volume suppliers and the long tail of invoices that typically require manual keying to process.

32 Esker Esker began in 1985 as a company focusing on fax technology, but has evolved into a recognized leader in helping organizations eliminate paper and improve business processes by automating the flow of all types of incoming and outgoing business documents with on-demand and on-premise document automation solutions. Based in Lyon, France, Esker serves more than 80,000 companies from offices in nine countries. Its Americas headquarters are in Madison, Wisconsin. Esker solutions speed the revenue cycle, improve customer satisfaction and increase profitability. For organizations running SAP applications or other ERP systems, Esker offers a comprehensive solution spanning multiple business processes in the cash conversion cycle. Esker develops cutting-edge document automation technologies specializing in integration within any enterprise system to automate inbound and outbound document processes. Website Founded 1985 Headquarters Corporate: Lyon, France; Americas: Madison, Wisconsin Other Locations France, UK, Germany, Italy, Spain, Australia, Malaysia and Singapore Number of 275 Employees Number of Customers Key Clients 80,000 companies are using Esker software or services around the world Brady Corporation; Hershey Foods Corporation; Hertz Corporation; Honeywell International; John Deere; Microsoft; SAP France; Samsung; Siemens; Starbucks; Whirlpool Corporation Partners / Resellers To view a list of additional Esker customers, please visit Certified partners Connectis; Intelligence, Inc; Merkur Group; NETech Corp.; CDW; Unity Business Systems OEM partners Epicor, Infor, Merge Healthcare; Merkur Group; Produce Pro; Singapore Post; Pitney Bowes Asterion; Paragon; Belgian Post Group; Neopost Technology partners Crystal Decisions; Dialogic; FileNet; Fujitsu; Hewlett-Packard Co.; Hyland Software; IBM; Lotus Software; Microsoft; Novell Inc.; Nuance; SAP AG; Trancepta; Tangible Software; Xerox

33 Transactions Processed Annually Awards / Recognitions More than 400 millions of pages are automated and sent by Esker on Demand services Business rule engine patented software Solution Name Esker on Demand 4.1 and Esker DeliveryWare 5.0 Year Introduced 2008 Differentiators End-to-end solution for vendor invoice processing No additional software required for fax or capture Available both on premise and on demand Tightly integrated into SAP, but ERP independent works with most ERP systems Cloud solution meets SAS70 requirements Global operation supports cross-border implementations Installation Esker on Demand SaaS requires no installation. Upon signature of Esker service contract, the customer is provided with his/her login required to connect to the solution using a standard web browser. Customers subscribing to the entry level package can be up and running in only a few days. Configuration Configuration of the solution can vary depending on the project complexity and geographical scope. The solution comes pre-packaged, featuring generic invoice recognition, exception management workflow, user profiles, preset reports and document queues that can be easily customized to meet specific customer needs. Document Acquisition Esker emphasizes its data acquisition, which uses system intelligence including keywords, relative positions of information, fuzzy search and database comparison. The solution does not require pre-scan document sorting or separators. It detects document separation automatically and provides an easy point-and-click splitting interface for any necessary corrections. Automatic Learning Esker s solution learns from user corrections in addition to manual explicit teaching

34 from the user via a point-and-click teaching interface. If information extracted does not meet the preset quality criteria, the order will be presented to the user for verification so that only correct information is entered in the ERP. Validation/Correction Users are able to easily change data incorrectly extracted by the system using the copy and paste feature that comes with all packages. Keyboard shorts are also available to users in order to speed up the correction process. The system will draw the user s attention by highlighting required fields in red when empty. Users can tab through the captured fields to reconcile extracted data against the scanned document. Documents with low capture/extraction quality are flagged by the system and sent to a teach/reteach queue. Matching/Error Detection Esker matches scanned invoice data against purchase orders and goods receipts, flagging exceptions for user intervention. Maintainability After configuration, new document formats can be added and taught to the system in the same manner as the initial training. The system manages a number of different languages out of the box. Other language templates can also be easily uploaded. Pricing Esker on Demand, the cloud-based solution, includes a one-time setup fee, a monthly subscription fee and traffic fees (based on total volume). Esker DeliveryWare, the on-premise solution, is sold as a perpetual license with installation, setup and configuration charges, plus a yearly maintenance and support fee. Support Standard office-hour support and 24/7 support are available, along with remote or local trainings and an online knowledge base.

35 Esker Case Study Paper Company Challenge An Australian paper company, one of the world s leading merchants of paper and communication materials, converted accounts payable to a shared services model and decided to bring its outsourced invoice processing in-house. The move, part of an SAP accounting conversion, created a need for a solution that would provide increased functionality, management control, and processing efficiency, as well as the ability to handle a threefold increase in invoice processing volumes without overloading existing staff. Three-way matching was required to meet company s strict No purchase order, no pay requirement. Solution Building on an existing relationship with Esker, the company selected the Esker Accounts Payable imaging and processing solution. Phase 1 of the process involved the rollout and automation of the accounts payable process as well as simplifying invoicing on SAP and later the addition of 3-way invoice matching. Results Esker delivered the project on time and on budget through its integrated technical services team. Client complimented both the solution functionality and Esker s project management process. Processing time for each invoice has been significantly reduced Processing errors reduced Excellent response time Satisfied customer

36 Metafile Metafile Information Systems, Inc. delivers content management, imaging and workflow solutions to help organizations efficiently capture, manage and access documents in accounts payable, accounts receivable and human resources. Founded in 1979, the company pioneered in the development of advanced content and funds management software. The MetaViewer solution was introduced in Website Founded 1979 Headquarters Rochester, MN Other Locations 6 offices throughout the US, Partners Worldwide Number of 3500 Customers Number of End 100,000 + Users Key Clients Titleist Footjoy, Lennar Homes, GEXPro, Winn Dixie, Welch Foods, Gate Petroleum, Tropicana, Siemens, Ingersoll Rand, Blue Cross/Blue Shield Target Verticals Manufacturing, Distribution, Retail Partners/Resellers Microsoft Dynamics, Oracle, Microsoft Dynamics Resellers Worldwide Transactions Millions Processed Annually Awards / Recognitions Solution Name Current Version 7.0 Year Introduced 2001 Matt Akin, MetaViewer Regional Manager named a Supply Chain 2012 Pros to Know, Microsoft Certified Partner MetaViewer Differentiators Full text indexing Extracting text from documents Complete end-to-end solution from a single provider Out of the box best practices and workflows reduce implementation costs yet still provide for complete customization and integration into your existing resources and business processes Brower-based interface

37 Installation Software installation is performed by Metafile as part of the initial implementation project. The average implementation takes six to nine months, with actual results depending on the complexity of the implementation and the number of unique workflows and ERP integrations. Metafile will install the software on a customer s servers. It also provided a hosted option, with the entire system residing on servers in Metafile s SAS70 compliant data center. Configuration Customers, with the assistance of the Metafile solution analysts and project management team determine what data fields are needed to customize the workflows and ERP integration. The MetaViewer solution templates provide the foundation for the most common client implementations, but there is no limit with what workflows, document types, and paperless solutions the client may implement. MetaViewer s Accelerator intelligently reads documents to extract the data in the same way a human would. It scans the document looking for key anchor words that define the data value. When it finds these values it extracts the data near that value to auto populate the data field. Document Acquisition MetaViewer supports batch scanning of documents both locally and remotely. As a preferred alternative, MetaViewer can retrieve electronic documents directly from a watched address or FTP site. This way no one has to open up mail or do any manual scanning. Utilizing the included full-text indexing capability MetaViewer can also preserve the full textual information these documents contain with 100% accuracy. Documents captured electronically do not require QA review as the solution simply copies textual information from the documents. Scanned paper documents go through the identical capture workflow but require MetaViewer s industry standard OCR technology to extract the desired summary and line item detail information. Automatic learning MetaViewer s Accelerator intelligently reads documents to extract the data in the same way a human would. It scans the document looking for key anchor words that define the data value. When it finds these values it extracts the data near that value to auto populate the data field. Electronic documents require little to no correction or entry. Scanned documents are typically processed, or corrected, within a few seconds per page as opposed to minutes required to enter all data without MetaViewer s Accelerator product.

38 Validation / Correction Validation and exception handling can be performed in real time at many levels on field values, elapsed time, against third party ERP data and more throughout the workflow process. Specific needs and current business practices are discussed with the client during the onsite Requirement Analysis visit. Fields that fall below a specified confidence threshold, invoices coming due and other key metrics are graphically indicated for quick review and drill down to specific documents and workflow queues. Anomalies of all types can be put into exception queues for further user interaction. Matching / Error Detection Matching and error detection is a dynamic and interactive process that combines automatic, semi-manual, and manual matching and detection. Maintainability After implementation, MetaViewer will flag new document types or unknown invoices for easy exception handling MetaViewer also offers a completely cloud based, hosted solution offering turnkey implementation and administration services Since MetaViewer web-based technology is virtually the same regardless of the implementation method, clients can switch from one form to another, providing flexibility into the future. Pricing MetaViewer is available as a purchased solution, a hosted solution, or an on-premise subscription, priced according to functionality and the number of users. In addition there are annual maintenance fees. Support includes a 24-hour helpline, online tutorials, and onsite training for users and administrators.

39 Metafile Case Study Entercom Challenge One of the top five radio broadcasters in the United States, Entercom wanted to maximize functionality and workflow automation in its Microsoft Dynamics SL ERP system. Specifically, it wanted to reduce costs, eliminate manual invoice processing, and improve the visibility and accountability of its accounts payable operation, which was spread over 110 stations in 23 markets, including San Francisco, Boston, Seattle, Denver, Portland, Sacramento and Kansas City. In its least efficient markets, paper invoices were handled by five to seven people, physically moving paper. By centralizing payable functions, Entercom hoped to save considerable payroll costs, and actually improve accountability, accuracy, data visibility and workflow. Solution Metafile began by integrating MetaViewer with Microsoft Dynamics SL at the corporate level, and plans to follow up with a strategic rollout to local offices. Entercom plans to establish 21 scan stations at consolidated business offices, where paper invoices will be scanned into MetaViewer and sent to the corporate office for coding and routing for approvals. There are currently three offices active on the program, with plans for a rapid deployment to the other offices. With MetaViewer, AP clerks at the corporate office are able to create vendor profiles for companywide use. Using these profiles, MetaViewer locates and extracts specified data from scanned invoices, converting paper to data that can be speed through the system accurately and expeditiously. Results Accuracy has risen and the timeliness of our payments is better, says Entercom Financial Systems Manager Willis Markuske. A big benefit to me is, when a vendor calls, we have great vendor history that s more accurate and consistent than going back to paper file folders, which may be missing documents. Metafile is helping Entercom develop an alert system to send s to staff who may be holding up the workflow to indicate deadlines for

40 approvals, a methodology that will help identify bottlenecks and improve audit reporting. Markuske is looking at uses for MetaViewer beyond accounts payable. We print 1,500, or so, 1099 forms a year, and SL keeps only two years of 1099 information, he says. I m interested in using MetaViewer to capture the 1099s for the appropriate year.

41 OpenText / AliTek From humble beginnings as a search engine research project at the University of Waterloo in Ontario, OpenText incorporated in 1991 and evolved into a world leader in Enterprise Information Management (EIM) known for its highly accurate intelligent data recognition algorithms. OpenText entered the Capture market at the end of 2008 with the acquisition of Captaris Document Technologies (formerly Océ Document Technologies), with a clear focus on the SAP Invoice Management market. AliTek is a business consulting and systems integration firm that helps clients better use their technology, data and employees more effectively and efficiently through systems integration, process optimization and regulatory compliance. AliTek Consulting uses technology and industry best practices to streamline work steps for your business process, generating efficiencies and profit for years to come. AliTek has been a Premier Partner of OpenText since 2005 and in 2009 became one of the exclusive partners accepted into Open Text s SAP Competence Partner Program. Website Founded 1991 Headquarters Waterloo, Ontario Other Locations European headquarters: Grasbrunn, Germany Field offices in AsiaPac and Japan; Canada; Middle East, Europe, Africa (EMEA); Latin America; USA. Please see: company-offices.htm Number of Employees Key Clients Partners / Resellers Awards / Recognitions Solution Name Approximately 5,000 globally 90 percent of the Fortune 500 customers SAP, Microsoft, Oracle OpenText has received the SAP Pinnacle Award every year for the last 5 years Invoice Capture Center Travel Receipts Capture Center Year Introduced Invoice Capture Center Travel Receipts Capture Center Differentiators»» OpenText is the only capture vendor to provide solutions that are resold by SAP and went through the SAP Premium Qualification process validating the SAP product standards. These solutions include Invoice Capture Center (ICC) and Travel Receipts Capture Center (TRCC). Each unique solution is designed to specifically integrate directly with the applicable ERP application module rather than having one generic solution.

42 Integrated knowledge bases for invoices and travel receipts deliver high recognition rates for header fields and line items out of the box. The input for the knowledge base has been derived from millions of unique invoices collected over more than 10 years worldwide. Patented adaptive algorithms add learning with point-and-click teaching for custom optimization. OpenText Capture Recognition Engine (formerly RecoStar Professional) established the industry standard and is used by many other capture vendors. OpenText also provides additional best in class solutions to address archive storage and records management of the captured meta data associated with downstream business processes. Installation OpenText s ICC solution is installed together with SAP Invoice Management. Simple scenarios are implemented in less than a month, while complex OCR rollouts can take as long as six months, including a user acceptance test phase. Configuration ICC provides invoice recognition support for more than 100 countries. Ready-to-run invoice knowledge base provides full out-of-the-box recognition of invoices from 28 countries. Software comes pre-configured with free-form recognition algorithms, combined with preconfigured field cues, keywords, and text-based pattern matching, eliminating the need for templates. Additional fields can be added simply by configuration which is fully stored in SAP. Document Acquisition The document lifecycle is controlled in SAP. Paper invoices and travel receipts are visible in SAP directly after scanning. For best results, OpenText recommends presorting invoices into single-page and multiple-page batches, with multi-page invoices separated by separator sheets or barcodes. This is the only presorting required, with the possible exception of sorting by country, to optimize scanning intelligence. For invoices including supporting documentation, automatic attachment separation function is included. A scan resolution of 300 dpi is recommended, but 200 dpi is acceptable with a good production scanner. TRCC provides for automatic receipt separation and classification. All methods of image capture including mobile are supported. Automatic Learning Mechanism A key component of the OpenText OCR solution, is the combination of the in depth knowledge base with interactive Controlled Learning based on a patented adaptive algorithm. Best practice is to control the learning algorithm by teaching it interactively, by pointing and clicking, to recognize specific vendor writing styles that are not part of

43 the knowledge base. This highly sophisticated technology can be taught to recognize a particular class of documents with a single example. Teaching time less than five seconds per field varies according to the number of fields that need to be taught. The software comes configured for all standard invoice fields. Customer-specific fields may be added, either by switching on an optional field, or using a graphical design tool. Validation/Correction The percentage of fields requiring manual correction varies from zero to 25 percent, depending on image quality, invoice printing quality, and legibility / recognition of handwritten fields. Most reasonably readable fields, especially those that can be verified against vendor master data, will pass without manual correction. If required manual corrections are accomplished by clicking data from the scanned image. OCR is designed to capture and assure that complete meta data is transferred to the SAP ERP. To assess the accuracy of the meta data, OCR passes the information to SAP Invoice Management which contains all ERP business rules to ensure correct posting. Matching/Error Detection Software matches scanned data against the ERP master data tables, using intelligent data matching algorithm. Maintainability The invoice recognition knowledge base will work for typical invoices as delivered by new vendors. It is normal for typical OCR solutions to require some human intervention due to insufficient confidence level. When this occurs, the OpenText solution provides the user the ability to mark the invoice image for training. OpenText believes strongly in the superiority of interactive teaching over unsupervised automatic learning. Client specific requirements that extend beyond the delivered solution are easily addressed through a combination of interactive teaching and new rules. These extensions can be implemented with minor effort through client internal resources, OpenText Global Services or partners such as AliTek. Support is available in various packages up to and including a 24 x 7 critical support model. OpenText also provides various training opportunities for partners and clients related to OCR solutions.

44 Within the OpenText support system, tickets follow a normal classification of bug or enhancement request. Fixes are prioritized by client classification according to their service agreement. Enhancement requests are considered for future version release or service pack. Pricing In addition to the volume based purchase price for either the complete Invoice Capture Center or Travel Receipts Capture Center license, OpenText charges annual maintenance fees that vary according to service level.

45 Within the OpenText support system, tickets follow a normal classification of bug or enhancement OpenText / request. AliTek Fixes Case are Study prioritized by client classification according to their Distribution Company Challenge A large distribution company with over 50 operating locations was processing 10 million invoices a year. The decentralized process included four unique invoice capture systems and AP workflow management solutions. In addition to system variability, the processes at each plant were not centrally directed or supported company infrastructure or change management. The organization had embarked on a larger business process redesign project that included centralizing all financial systems onto SAP as well as centralizing the accounts payable process. They needed a solution that not only worked seamlessly with the SAP AP solution, but that could handle centralized processing of millions of invoices per year, and support a single structured process for all Invoices. Solution AliTek and OpenText partnered to implement a centralized invoice capture and OCR processing solution. A common scanning and invoice data recognition process was defined coupled with implementation of OpenText Enterprise Scan and Invoice Capture Center (ICC) products to meet the Invoice scanning and recognition needs. The solution allows vendors to mail, fax, or invoices to the plant locations or directly to the central AP processing location. Once received, invoices are scanned (if necessary) and archived into the SAP VIM system for processing. The ICC component performs invoice data recognition, processes the metadata to SAP Vendor Invoice Management, and updates the invoice status as a single step in the AP workflow. This Optical Character Recognition(OCR) and Intelligent Document Recognition (IDR) process is supported by a knowledge base of thousands of invoice formats that come with ICC as well as any invoices specifically trained as part of the implementation. The ICC integration with SAP VIM and use of SAP Master Data for validation of extracted data seamlessly allows invoices to be paid based on preset rules with no additional intervention required. If the invoice does not match the predetermined thresholds for amount, supplier information, or PO number, the invoice is routed to the correct agent for validation or exception processing.

46 Result The solution allowed the distribution company to enhance their document ingestion methods and invoice indexing aspects of their AP process. The result was streamlined invoice data capture in SAP and reductions in the cost of invoice processing. The process continues to be evaluated and updated based on business growth and supplier behavior. Support for remote or centralized receipt and ingestion of AP invoices into SAP Enabled centralized processing of invoices Automatic recognition of invoice header data as well as line item data without use of templates Streamlining of invoice capture, indexing and metadata correction

47 ReadSoft ReadSoft is a leading global provider of software solutions for Document Process Automation. ReadSoft s software enables companies to automate document processes such as accounts payable processing, document capture, document sorting, and order to cash. Created in 1991, the company has grown to a worldwide group with operations in 16 countries on five continents and a network of local and global partners. ReadSoft s market strategy includes both direct and channel sales for its SAP and Oracle integrated solutions and a channel-only strategy for its capture products. The company s objective is to provide its unique experience to the SAP and Oracle segment for companies with annual revenues in excess of $500 million, while leveraging partners to service smaller companies. Website Founded 1991 Headquarters Helsingborg, Sweden International New Orleans North America Other Locations Amsterdam, Bern, Copenhagen, Frankfurt, Helsingborg, Helsinki, Kuala Lumpur, London, Madrid, Oslo, Paris, Santiago, Sao Paolo, Stockholm, Sydney, Wroclaw International New Orleans, Chicago, Raleigh North America Number of 542 worldwide Employees Number of Customers Key Clients Partners / Resellers Transactions Processed Annually Awards / Recognitions Solution Name 7,700 total AP automation customers, 10,000 overall customers Lockheed Martin, Sony, Time Warner Cable SAP, Oracle, Microsoft, Fujitsu, KnowledgeLake, Hyland Software, Lawson, Basware, Gimmal (ERP-Link), IFS, Altec, IMB, Accenture, Deloitte, NMS Imaging, Acuite Consulting Solutions, DataBank IMX, DISC, DocuSource, Optiform 2 billion invoices ERP Executive s Best of SAP SAPPHIRE NOW award for Best Green Initiative, ECM Connection s ACE Award Winner in compliance DOCUMENTS by ReadSoft, ReadSoft Online (SaaS Solution Offering) Year Introduced DOCUMENTS by ReadSoft 2004, ReadSoft Online 2011

48 Differentiators Line-item Data Capture: The DOCUMENTS system can recognize line item data automatically even if line items differ in length or are not symmetrically spaced. Line items may also be read from any and all pages of a multi-page invoice as standard product functionality. First to Market: ReadSoft was the first to market a semi-structured capture product. DOCUMENTS, released in 1996 as INVOICES, launched the autolearning technology that currently enables ReadSoft to support customers with thousands of suppliers. High Data Security: ReadSoft Online is built with Microsoft.NET technologies and is run on Microsoft s cloud, Windows Azure. The underlying infrastructure and related technologies are key factors in providing a foundation for security for any cloud solution. Industry standards and best practices enable secure communication between client and server, the same type of security used for online banking transactions. Installation ReadSoft s web-based solution, ReadSoft Online, can be installed in minutes. Capture-only solutions, such as DOCUMENTS by ReadSoft can be installed, on site or remote, in one or two weeks. Installation is managed by ReadSoft consultants or certified partners, following a client-specific procedure developed in a four to eight hour mapping session Configuration Although ReadSoft DOCUMENTS comes with a number of preset fields, they can be amended, deleted or appended, to match a client s workflow. The software uses a proprietary auto-learning process to memorize invoice layouts, extract relevant data and associate that layout with a specific supplier. Data capture is free-form, using advanced logic and learning capabilities. There is also a teaching step, in which AP staff verify and tweak automated captures, to make sure that the right data is being extracted and properly identified. Compatible with all commonly used image formats and data feeds, during configuration it is generally recommended that clients provide a representative sample of documents by layout type, with one of each type being sufficient. Document Acquisition Scanning is performed by departmental or production level scanners at speeds ranging from 15 to 130 pages per minute. DOCUMENTS accommodates most document separation routines, including blank sheets, barcodes, patch codes, and in some cases page logic or keywords with no manual separation prior to scanning.

49 In addition to any document enhancement performed at the scanner level, DOCUMENTS allows for text-based auto rotation, character smoothing, and other imaging algorithms to ensure an optimal image. Automatic Learning ReadSoft DOCUMENTS has always had auto-learning capability, and it has evolved to a high level of accuracy. What little the system doesn t pick up on its own can be easily taught through human intervention. Validation/Correction There is typically no need for human intervention for invoices from repeat suppliers, provided that the source documents are of reasonable quality and scanned at 300 dpi. Many organizations, for their own peace of mind, will check captured data at regular intervals, however, to verify data integrity. Manual corrections can be performed in seconds by double-clicking the field, rubber-banding, or keying the correct information from the scanned image (KFI). Typically only critical fields invoice number, PO number, tax, and total are visually validated. Business rules for validation are configurable, with status icons to flag exceptions, and notification. Matching / Error Detection DOCUMENTS uses a color-coded stoplight interface in which items in green are given the green light and moved on to be paid without further human intervention. Yellow items may require a second look. And red items are held aside pending corrective action. Maintainability Once the solution has been configured, new document formats can be added easily. Auto-learning is unsupervised, with users rarely having to manually append new invoice types. As a global company, ReadSoft offers out-of-thebox functionality that includes the ability to process international invoices in 13 languages including Chinese, Japanese, and Taiwanese. Immediate fixes are provided for showstopper issues, and enhancements and nice to haves are typically delivered through the normal software release cycle. Pricing DOCUMENTS can be purchased on a perpetual or subscription (rental) basis, with fees based on transaction volume.

50 ReadSoft Case Study Time Warner Cable Challenge At the forefront of the telecommunications industry, Time Warner Cable places cutting-edge technology at its customers fingertips. As the secondlargest multiple service provider in the U.S., the company is in the business of connecting people through advanced cable systems. Time Warner Cable needed to revamp its internal operations and streamline accounts payable. With accounts payable departments scattered across multiple business units, the company was strained by the constraints of a disjointed AP process and in need of a trusted and consolidated solution. Knowing the value of front-end OCR and data capture, the company went shopping for a solution provider with the best ERP partnerships and a large world presence. Solution After integrating its AP processing operations into a single shared services center in 2003, the company searched for a front-end data capture solution to help meet its imminent growth needs without expanding its resources to process invoices. The company implemented ReadSoft s OCR and data capture solution for AP in 2004 and subsequently added ReadSoft s FAX MANAGER solution and other functionalities for additional time and cost savings as success built on success. Results Reinvigorating its AP function with one unified and highly automated process yielded compelling results within a year, as the system processed one million invoices with 95 percent verified accuracy. The improved AP process helped TWC in its 2006 acquisition of Adelphia Communications by increasing invoice processing volume by 40 percent and significantly reducing manual labor. Automation helped facilitate other AP innovations, such as increasing the use of p-cards at former Adelphia locations. With these initial successes under its belt, TWC began to explore possibilities for other time and paper-saving initiatives within its manual document handling. ReadSoft s FAX MANAGER enabled high volume and discount vendors to eliminate paper by converting faxed invoices directly to digital data. The company continues to process over one million invoices a year, and saves over 30 million keystrokes with ReadSoft s AP automation solution.

51 Conclusion The persistence of paper invoices in an increasingly electronic marketplace has progressive AP practitioners looking for proactive solutions to paper paralysis. More than half of practitioners surveyed by PayStream Advisors in the first quarter of 2012 go so far as to say it is the biggest challenge they face in invoice management, followed closely by the manual data entry and inefficient workflow paper requires. With the benefits of front-end data capture clearly established, progressive companies are moving to convert static paper invoices into dynamic data to increase operational efficiency, add management control and visibility into spend, and comply with Sarbanes-Oxley reporting rules. In fact, short of increasing electronic invoicing, implementation of invoice imaging and automated workflow are the top two priorities in AP automation today. And 76 percent of practitioners say they plan to act on their top priority within the year. With even an average company getting invoices from more than 20,000 vendors in myriad formats, finding a scanning and data capture solution flexible enough to accommodate their specific vendor profile is critical. This report, and the accompanying vendor profiles provide a good overview, for any company seriously considering an OCR/Data Capture solution. Research Methodology The findings in this report are based on the results of PayStream Advisors 2012 Invoice & Workflow Automation Adoption and Electronic Invoice surveys. Participants in the surveys included more than 300 AP professionals. Based on our experience and the number of respondents, the survey has a confidence level of +/-5 percent. About PayStream Advisors, Inc. PayStream Advisors is a technology research and consulting firm that improves the way companies plan, evaluate, and select emerging technologies to achieve their business objectives. PayStream Advisors assists clients in sorting through the growing complexities of IT applications related to business process automation with the goal of making objective, analytical, and actionable recommendations. Wherever business process automation technology is an issue, PayStream Advisors is there to help. For more information, call (704) or visit us on the web at com.

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