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Benefits from Implementing Newgen's BPM Solution at a Shared Service Centre
Transcript of Benefits from Implementing Newgen's BPM Solution at a ...lead.cioandleader.com/pdf/newgen/case...
Benefits from
Implementing Newgen's BPM Solution
at a Shared Service Centre
Overview
Newgen was selected to implement a unified business
workflow automation and document management
solution in order to streamline the Accounts Payable (AP)
process at a Shared Service Centre (SSC)
Website: www.newgensoft.com
The client is a leading Indian pharmaceutical company
manufacturing a wide range of affordable and high quality
generic medicines, trusted by healthcare professionals and
patients across geographical boundaries. It is ranked
amongst the top ten generic pharmaceutical companies
worldwide.
With a presence in over 49 countries, 11 manufacturing
facilities and a diverse product portfolio, the company has
vendors scattered across multiple locations in India. As a
result of this geographical spread, company's Finance &
Accounts (F&A) Department had a difficult task
coordinating payments made and received on behalf of the
company.
Key Operational Challenges
• Increase in employee efficiency and productivity
• Reduction in bill payment cycle
• Better audit and compliance management
• Establishment of an efficient tracking and monitoring
mechanism
• Reduction in cost incurred per employee
• Efficient utilization of capital assets and infrastructure
• Scalable solution that enables faster roll-out of
initiatives
• Various activities and systems involved in invoice
processing working in isolation
• Dependence on physical movement of invoices across
departments and locations
• Lack of an efficient monitoring and tracking
mechanism
• Difficulty in conducting internal audits and meeting
compliance standards
Key Challenges
Key Benefits
With a pan India presence, the F&A Department had the
task of tracking and monitoring invoices raised by its
vendors. Coordination of this activity affected the day-to-
day operations with frequent instances of loss of invoices.
This had an adverse impact on the overall performance of
the department.
The absence of a robust tracking and monitoring
mechanism affected audit and compliance management.
The audit process was time consuming, and an average of
two days was required to locate physical documents.
Tracking the lost invoices was difficult and time consuming
At a Glance
Return on Investment 1of 135%
1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated
1 of 6 2 of 6
Overview
Newgen was selected to implement a unified business
workflow automation and document management
solution in order to streamline the Accounts Payable (AP)
process at a Shared Service Centre (SSC)
Website: www.newgensoft.com
The client is a leading Indian pharmaceutical company
manufacturing a wide range of affordable and high quality
generic medicines, trusted by healthcare professionals and
patients across geographical boundaries. It is ranked
amongst the top ten generic pharmaceutical companies
worldwide.
With a presence in over 49 countries, 11 manufacturing
facilities and a diverse product portfolio, the company has
vendors scattered across multiple locations in India. As a
result of this geographical spread, company's Finance &
Accounts (F&A) Department had a difficult task
coordinating payments made and received on behalf of the
company.
Key Operational Challenges
• Increase in employee efficiency and productivity
• Reduction in bill payment cycle
• Better audit and compliance management
• Establishment of an efficient tracking and monitoring
mechanism
• Reduction in cost incurred per employee
• Efficient utilization of capital assets and infrastructure
• Scalable solution that enables faster roll-out of
initiatives
• Various activities and systems involved in invoice
processing working in isolation
• Dependence on physical movement of invoices across
departments and locations
• Lack of an efficient monitoring and tracking
mechanism
• Difficulty in conducting internal audits and meeting
compliance standards
Key Challenges
Key Benefits
With a pan India presence, the F&A Department had the
task of tracking and monitoring invoices raised by its
vendors. Coordination of this activity affected the day-to-
day operations with frequent instances of loss of invoices.
This had an adverse impact on the overall performance of
the department.
The absence of a robust tracking and monitoring
mechanism affected audit and compliance management.
The audit process was time consuming, and an average of
two days was required to locate physical documents.
Tracking the lost invoices was difficult and time consuming
At a Glance
Return on Investment 1of 135%
1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated
1 of 6 2 of 6
In order to address these challenges and streamline its
Accounts Payable (AP) process, the management decided to
establish a Shared Service Centre (SSC). The primary
objective was to centralize the AP process and increase its
efficiency, accuracy and productivity. In addition, it was
decided that a unified Business Workflow automation
solution was required to support the business needs of the
Shared Service Centre.
Newgen was selected to implement the business workflow
automation solution and integrate it with SAP. The products
used for implementing the solution by Newgen are TM TM TMOmniScan (OmniCapture), OmniFlow and OmniDocs
All the invoices and supporting documents are sent to the
SSC, where they are scanned and introduced into TM TMOmniFlow (workflow system) using OmniScan . The
invoices are then segregated based on their work type
(PO/Non-PO) and routed to the respective users for further
processing.
The rule- and role-based BPM solution processes these
workitems, and enables the company to efficiently and
accurately make payments to its vendors.
Automation and the absence of physical movement of
documents have made the AP process more efficient. The
solution also allows the company to archive invoices and TMother supporting documents in OmniDocs from where
they can be viewed, downloaded and printed online as per
user requirements.
Business Workflow Automation Solution
Minimized user interface has increased accuracy of data being captured
Invoices/Documents are scanned, indexed and uploaded in the workflow from multiple locations
Faster access to invoices through workflow, leading to reduction in waiting and processing time. Also, invoices are segregated on the basis of PO or Non-PO
Data Entry andVerification
Exception Resolutionby Supervisor
Posting of case detailsdirectly into SAP
Payment RunCheque Details
Data Entry andVerification
Exception Resolutionby Supervisor
Posting of case details directly in OmniFlow and SAP
OtherException
CorrectInvoice
ImageException
Rescan
POTransactions
Cheque details captured and payments approved in SAP
OtherException
CorrectInvoice
ImageException
Rescan
Non-POTransactions
The Solution
3 of 6 4 of 6
In order to address these challenges and streamline its
Accounts Payable (AP) process, the management decided to
establish a Shared Service Centre (SSC). The primary
objective was to centralize the AP process and increase its
efficiency, accuracy and productivity. In addition, it was
decided that a unified Business Workflow automation
solution was required to support the business needs of the
Shared Service Centre.
Newgen was selected to implement the business workflow
automation solution and integrate it with SAP. The products
used for implementing the solution by Newgen are TM TM TMOmniScan (OmniCapture), OmniFlow and OmniDocs
All the invoices and supporting documents are sent to the
SSC, where they are scanned and introduced into TM TMOmniFlow (workflow system) using OmniScan . The
invoices are then segregated based on their work type
(PO/Non-PO) and routed to the respective users for further
processing.
The rule- and role-based BPM solution processes these
workitems, and enables the company to efficiently and
accurately make payments to its vendors.
Automation and the absence of physical movement of
documents have made the AP process more efficient. The
solution also allows the company to archive invoices and TMother supporting documents in OmniDocs from where
they can be viewed, downloaded and printed online as per
user requirements.
Business Workflow Automation Solution
Minimized user interface has increased accuracy of data being captured
Invoices/Documents are scanned, indexed and uploaded in the workflow from multiple locations
Faster access to invoices through workflow, leading to reduction in waiting and processing time. Also, invoices are segregated on the basis of PO or Non-PO
Data Entry andVerification
Exception Resolutionby Supervisor
Posting of case detailsdirectly into SAP
Payment RunCheque Details
Data Entry andVerification
Exception Resolutionby Supervisor
Posting of case details directly in OmniFlow and SAP
OtherException
CorrectInvoice
ImageException
Rescan
POTransactions
Cheque details captured and payments approved in SAP
OtherException
CorrectInvoice
ImageException
Rescan
Non-POTransactions
The Solution
3 of 6 4 of 6
Key Benefits and ROI
Benefits accrued to the company were both direct and
indirect. Reduction in operating costs, travel and
communication expenses, office stationary and
infrastructure usage were some of the benefits achieved by
centralization and implementation of the BPM solution. The
company also achieved other benefits like increase in
productivity and reduction in IT infrastructure costs through
better utilisation of capital assets.
Newgen's BPM solution has enabled the company establish
a comprehensive monitoring and tracking mechanism.
Image enablement of SAP helped in streamlining internal
audit and soft archival of physical documents to meet
compliance standards.
Key benefits from the solution include the following:
• Improved employee productivity: Newgen's rule-
and role-based workflow solution ensures efficient
workload balancing, resulting in higher employee
utilization and productivity.
• Better audit and compliance management:
Internal audit, a tedious and rigorous process, which
took 5* days at an average, is currently completed
within 3* days. Newgen's system maintains a
complete history of every invoice, including the
approval and processing history along with an
electronic image of the document. Also, customized
reports give the administrator complete control over
the activities of the SSC.
• Reduced cost: The solution has also enabled the
company to streamline its process, thereby reducing
the cost per transaction. It has also resulted in
reduction of administrative overheads incurred per
employee.
• Efficient tracking and monitoring mechanism:
Vendor payments are made much faster due to
accurate data capturing and faster bill payment cycles.
Real-time tracking of invoices is possible, enabling the
The company achieved a headcount reduction
*of 60% compared to the global average of
#20%
1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated* As per data provided by Newgen’s client# As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared
services organizations around the globe
company to identify bottlenecks and take appropriate
remedial action.
• Efficient utilization of capital assets and
infrastructure: Capital assets and infrastructure are
being utilized more effectively. The branch offices of
the company are being utilized for other core activities
of the pharmaceutical company.
• Scalable solution that enables faster roll-out of
initiatives: The company is better equipped to
manage growth and strategic initiatives because the
solution is scalable and it enables faster roll-outs. Over
the years, the company has been able to increase the
workload at the Shared Service Centre, thereby
facilitating other offices to concentrate on their core
activities.
• Seamless integration with SAP: The solution has
been seamlessly integrated with SAP to further
enhance the efficiency of the overall system.
The company has 1
achieved a 135% ROI over a three year period
The ROI calculation represents the relative value of a
project's cumulative net benefits over the analysis period,
divided by the project's cumulative costs, expressed as a
percentage. In a formula, this can be represented as: ROI =
cumulative net benefit / total costs. The ROI achieved from
implementation of Newgen's BPM solution was derived on
the basis of total benefits achieved and investments made
by the client over a period of three years.
Investments includes both one time and annual recurring
costs incurred by for components like
• Implementation, software and initial license cost
• Hardware
• Maintenance and production support
• User training
Benefits were calculated by quantifying the returns
achieved through higher employee productivity and
reduction in various cost parameters. The key benefits
Methodologyidentified for analysis were:
• Resource savings – from reduced hiring
• Time savings – reduction in processing time for audits,
faster vendor payment processing
• Capital expense reductions – savings in expenses such
as facilities, administrative overheads
• Productivity benefits – increase in volumes of
transactions processed per day
The above mentioned data and information was sourced
through the following:
• Primary Research (customized questionnaire)
• Secondary Research (Third Party Industry Reports and
Deloitte Global Benchmarks and Survey Reports)
5 of 6 6 of 6
Key Benefits and ROI
Benefits accrued to the company were both direct and
indirect. Reduction in operating costs, travel and
communication expenses, office stationary and
infrastructure usage were some of the benefits achieved by
centralization and implementation of the BPM solution. The
company also achieved other benefits like increase in
productivity and reduction in IT infrastructure costs through
better utilisation of capital assets.
Newgen's BPM solution has enabled the company establish
a comprehensive monitoring and tracking mechanism.
Image enablement of SAP helped in streamlining internal
audit and soft archival of physical documents to meet
compliance standards.
Key benefits from the solution include the following:
• Improved employee productivity: Newgen's rule-
and role-based workflow solution ensures efficient
workload balancing, resulting in higher employee
utilization and productivity.
• Better audit and compliance management:
Internal audit, a tedious and rigorous process, which
took 5* days at an average, is currently completed
within 3* days. Newgen's system maintains a
complete history of every invoice, including the
approval and processing history along with an
electronic image of the document. Also, customized
reports give the administrator complete control over
the activities of the SSC.
• Reduced cost: The solution has also enabled the
company to streamline its process, thereby reducing
the cost per transaction. It has also resulted in
reduction of administrative overheads incurred per
employee.
• Efficient tracking and monitoring mechanism:
Vendor payments are made much faster due to
accurate data capturing and faster bill payment cycles.
Real-time tracking of invoices is possible, enabling the
The company achieved a headcount reduction
*of 60% compared to the global average of
#20%
1 Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated* As per data provided by Newgen’s client# As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared
services organizations around the globe
company to identify bottlenecks and take appropriate
remedial action.
• Efficient utilization of capital assets and
infrastructure: Capital assets and infrastructure are
being utilized more effectively. The branch offices of
the company are being utilized for other core activities
of the pharmaceutical company.
• Scalable solution that enables faster roll-out of
initiatives: The company is better equipped to
manage growth and strategic initiatives because the
solution is scalable and it enables faster roll-outs. Over
the years, the company has been able to increase the
workload at the Shared Service Centre, thereby
facilitating other offices to concentrate on their core
activities.
• Seamless integration with SAP: The solution has
been seamlessly integrated with SAP to further
enhance the efficiency of the overall system.
The company has 1
achieved a 135% ROI over a three year period
The ROI calculation represents the relative value of a
project's cumulative net benefits over the analysis period,
divided by the project's cumulative costs, expressed as a
percentage. In a formula, this can be represented as: ROI =
cumulative net benefit / total costs. The ROI achieved from
implementation of Newgen's BPM solution was derived on
the basis of total benefits achieved and investments made
by the client over a period of three years.
Investments includes both one time and annual recurring
costs incurred by for components like
• Implementation, software and initial license cost
• Hardware
• Maintenance and production support
• User training
Benefits were calculated by quantifying the returns
achieved through higher employee productivity and
reduction in various cost parameters. The key benefits
Methodologyidentified for analysis were:
• Resource savings – from reduced hiring
• Time savings – reduction in processing time for audits,
faster vendor payment processing
• Capital expense reductions – savings in expenses such
as facilities, administrative overheads
• Productivity benefits – increase in volumes of
transactions processed per day
The above mentioned data and information was sourced
through the following:
• Primary Research (customized questionnaire)
• Secondary Research (Third Party Industry Reports and
Deloitte Global Benchmarks and Survey Reports)
5 of 6 6 of 6
The ROI analysis was commissioned by Newgen and has been done by Deloitte for the clients provided by Newgen. The analysis was done based on
data provided by Newgen and its client and Deloitte makes no assertions on the potential ROI that other organizations might receive by using
Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain
assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation
of the benefits that the client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for
competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not
to endorse its solutions by Deloitte.
This document contains general information only and Deloitte Touche Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering
accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such
professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or
taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities
shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication.
Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published
document.
About Deloitte
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independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its
member firms.
About Newgen
Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Enterprise Content Management (ECM),
with a global footprint of about 750 installations in over 35 countries. More than 100 of these implementations are large, mission-critical solutions
deployed at world's leading BFSI, BPO and Fortune Global 500 companies.
Newgen is recognized by distinguished analyst firms like Frost and Sullivan as A 'Hot Company to Watch for' in their global ECM Market report,
2009 and by IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management
Solutions”. Newgen is a winner of prestigious award, such as CNBC-TV18, “Emerging India Award 2008”.
With HSBC and SAP investment, Newgen is one of the rare product companies to have backing of both leading financial and technology companies
of the world. Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been
assessed at CMMI Level3.
Disclaimer
Newgen Software Inc.
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McLean, VA 22101
Tel: +1-703-439-0703
Email: [email protected]
Corporate Office
Newgen Software Technologies Ltd.
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New Delhi - 110 067 INDIA
Tel: +91-11-4077 0100, 2696 3571, 2696 4733
Fax: +91-11-2685 6936
Email: [email protected]
