Kofax Digital Mailroom Webinar Idc Slides V4

Optimizing Document-Intensive Business Processes: Time for the Digital Mailroom? Melissa Webster, Program Vice President Content & Digital Media Technologies IDC

June 19, 2009 Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Agenda  Automating document-intensive business processes

– Use cases – Capture & image management market growth – Business drivers for capture, classification and extraction  Big gap in practice: what customers tell us  Rethinking the broader workflow: digital mailroom

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Document-intensive business processes

Invoice processing

Engineering change order management

New employee onboarding

Patent and copyright management

Plant management Claims processing

eGov case management, entitlements

Retirement plan processing Contract management

Crime investigation

Warranty management

New drug application New account opening

Patient records management

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Doctor credentialing

Grant management

Customer care, call center support

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Plans to invest next 12 months Q. How likely is your organization to invest in document/forms imaging/ capture solutions for the following business processes in the next 12 months? % of respondents

0

20

40

60

80

100

Invoice processing

PO processing

Sales order processing

HR documents Customer correspondence Contract management

Case management

Using

Very

Somewhat

Not

DK

n=97, organizations w/ 2,000+ employees (total sample n=308); multiple responses allowed. Source: November QuickPoll Document Processes, IDC's Enterprise Panel, November 2008 © 2009 IDC

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Front-office capture enables dozens of business processes… Invoice processing

Engineering change order Project Expedited managementmanagement Materials orders safety Quote to ship Employee Return accidents authorizations Payment confirmations

Claims Policy processing management

eGov case management, entitlements

New employee onboarding Recruitment Contractor management Plant management MRO

Patent and copyright management

Money Transfer Loan investigations origination Retirement plan processing Trade confirms Warranty management

Contract Partner management transactions Crime Reseller New drug investigation enrollment application Court Agent New account Evidence scheduling accreditation Clinical trials opening New account production notifications opening Customer care, Commercial call center support Patient records Patient leasing RPI/RFP/RFQ management discharge Doctor Compliance Grant credentialing management Cross/up-sell training management

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Evolution of capture in the enterprise… Beyond…  Back-office capture – scan to archive (compliance, retention, optimizing on-premise storage, etc.) – capture marks the end of the business process to…  Front-office capture – scan-enabled applications – capture takes place at the beginning of a given workflow, so it can drive the business process

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Evolution of capture in the enterprise… And beyond…  Simple capture and imaging to…  Sophisticated classification and extraction capabilities that enable documents to be automatically identified, sorted, and routed, and that enable information in the document to automatically drive one or more business processes

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Capture/image management software market revenue growth $B

%

2

12

10

1

8

C&IM Revenue C&IM Growth

6

0

4 2007

2008

2009

2010

2011

2012

Source: IDC, Worldwide Capture & Image Management 2008-2012 Forecast and Analysis, #215520, Dec. 2008 © 2009 IDC

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Information overload Organizational Information “Unit” Growth WW (Petabytes)

# Files (T) 70000

300,000

Enterprise Information (PB) No. of "Files" (T)

250,000

60000 50000

200,000 40000 150,000 30000 100,000

Amount of information created / replicated within enterprises by bytes and number of files, e.g., images, voice packets, RFID signals, computer files

50,000

0

20000 10000 0

2005

2006

2007

2008

2009

2010

Source: Expanding Digital Universe, IDC, 2008 © 2009 IDC

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What do information tasks cost the enterprise? Hours per week

Annual cost per worker

Email: read and answer

13

$20,990

Search/gather information

8.8

$14,209

Analyze information

8.1

$13,078

Communicate/collaborate within organization

6.4

$10,333

Manage projects

6.2

$10,011

6

$9,688

Communicate/collaborate with customers, suppliers, etc.

5.2

$8,396

Manage people

4.4

$7,104

4

$6,458

3.7

$5,974

Task

Create content

Data entry and other structured tasks Publish information

n=706; based on an annual salary of $75,000 with benefits Source: IDC Information Worker Productivity Studies, 2008-2009.there's an additional fee for that, and © 2009 IDC

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Business Drivers for Investing in Capture/Imaging Q. Which of the following are important business drivers for your organization in terms of investing in capture/imaging of business documents? % of respondents 0

20

40

60

80

100

Reducing paper filing/storage Reducing costs Reducing errors Improving information sharing Reducing processing cycle time Ensuring compliance/auditability Improving visibility into business process Improving litigation preparedness

n=97, organizations w/ 2,000+ employees (total sample n=308); multiple responses allowed. Source: November QuickPoll Document Processes, IDC's Enterprise Panel, November 2008 © 2009 IDC

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Still a big gap in practice today  Even in large organizations, most paper-based processes are still largely manual  Scan-enabled business processes don’t always leverage classification and extraction for full business efficiency  And what about electronic information? We have similar needs for classification and extraction  This is especially true for the digital mailroom: our research shows few organizations have taken advantage of capture, classification, and extraction to automate the document flow from the mailroom out

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How Paper-Based Documents/Forms Are Captured/Processed Q. Which of the following describe how paper-based documents/forms are captured/processed at your organization? 0

20

% of respondents 40 60 80

100

Departments scan business-critical documents into a CMS

Have one or more automated systems that electronically extract information from scanned documents All paper-based document processing is manual today; information is manually keyed

Use barcoded hard-copy forms to help automate some of the data capture/processing Incoming mail is scanned (digitized) at the mailroom, classified, and then distributed electronically

Only 13%…

n=97, organizations w/ 2,000+ employees (total sample n=308); multiple responses allowed. Source: November QuickPoll Document Processes, IDC's Enterprise Panel, November 2008 © 2009 IDC

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How Electronic Documents/Forms Are Captured/Processed Q. Which of the following describe how electronic documents/forms are captured/processed at your organization? % of respondents 0

20

40

60

80

100

We are using electronic forms to capture information directly into our enterprise applications and reducing/eliminating data entry/keying We have automated systems that extract data from electronic documents of different types, and help to automate data entry tasks

We have automated systems that classify incoming electronic documents and route them to appropriate departments

Only 27%…

We have automated systems that classify emails and mark them as records, according to rules

n=97, organizations w/ 2,000+ employees (total sample n=308); multiple responses allowed. Source: November QuickPoll Document Processes, IDC's Enterprise Panel, November 2008 © 2009 IDC

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Evolution of capture From…  Back-office capture – scan to archive (compliance, retention, optimizing on-premise storage, etc.) – capture marks the end of the business process and …  Front-office capture – scan-enabled applications – capture takes place at the beginning of a given workflow, so it can drive the business process

to…

 the mailroom – putting capture, classification, and extraction to work to automate the processing (classification, extraction, routing) of all of the organization’s paper and electronic documents… ultimately initiating the business process at the mailroom! © 2009 IDC

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Summary  Huge opportunity to automate document-intensive business processes: – – – – – –

Cost savings from more efficient, consistent, error-free processes Improved visibility into processes for continued process improvement Reduced risk, improved compliance controls More agile enterprise Improved information worker productivity Improved customer support

– THE ROI IS COMPELLING!  Moving capture/imaging, classification, and extraction up earlier in the

process helps maximize ROI and assure these benefits  The process needs to start at the mailroom

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