Four Key Considerations When Automating For the First Time Presented by: Sponsored by: Jess Scheer, IOFM Helee Lev, Goby Tyler Yates, Cedar Street Companies
Today’s Presenters Jess Scheer Tyler Yates Helee Lev IOFM, Executive Editor Cedar Street Companies, Goby Chief Revenue Officer Director of Asset Management
You’re Not Ready to Automate Until You’ve Considered: Your current pain points Gain Insight Through A Four-Dimensional Vision of Your Process Tomorrow’s goals and needs Prioritizing automation vendors that can meet those needs Selling your automation recommendations internally
Identifying and Prioritizing Your Current Pain Points 1. Identify 4. Identify 2. Map 3. Identify Standard Knowledge Process Duties For Process For Each Steps Each Step Steps Step
Identifying and Prioritizing Your Current Pain Points PCF ID Hierarchy ID Name of Process Step 10301 4.2.1 Develop sourcing strategies 10302 4.2.2 Select suppliers and develop/maintain contracts 10733 4.2.3 Order materials and services 10756 4.2.4 Manage suppliers 1. Identify 10869 9.6.1.1 Verify AP pay file with purchase order vendor master file 10870 9.6.1.2 Maintain/Manage electronic commerce standard 10871 9.6.1.3 Audit invoices and key data in AP system 10872 9.6.1.4 Approve payments process 10873 9.6.1.5 Process financial accruals and reversals 10874 9.6.1.6 Process payroll taxes steps 10875 9.6.1.7 Research/Resolve payroll exceptions 10876 9.6.1.8 Process payments 10877 9.6.1.9 Respond to AP inquiries 10878 9.6.1.10 Retain records 10879 9.6.1.11 Adjust accounting records Source: American Productivity & Quality Center’s Process Classification Framework www.apqc.org/pcf
Identifying and Prioritizing Your Current Pain Points Select suppliers and Develop sourcing Order materials and develop/maintain Manage suppliers strategies services contracts Look For 2. Map Handoffs, Verify AP pay file Maintain/Manage Audit invoices and with purchase order electronic key data in AP Approve payments vendor master file commerce system Bottlenecks, Process and Single Points of Steps Process financial Process payroll Research/Resolve accruals and Process payments taxes payroll exceptions Failure reversals Respond to AP Adjust accounting Retain records inquiries records
Identifying and Prioritizing Your Current Pain Points 3. Identify Duties Responsible Consulted Person(s) responsible for completing the task. Person(s) who should have input into decisions. Schedules meetings Provide input into meeting agenda Accountable Informed Person ultimately answerable for the activity. Person(s) who need to be kept in the loop on decisions. Leads meetings CC'd on outcome of meeting
Identifying and Prioritizing Your Current Pain Points 4. Identify Knowledge For Each Step
You’re Not Ready to Automate Until You’ve Considered: Your current pain points Envision Your Ideal Future State by Addressing: • People, process, and automation needs Tomorrow’s goals and needs • Assess current state and benchmark your performance against peers • Conduct a basic cost/benefit analysis Automation vendors that can meet those needs Strategies for selling your recommendations internally
Incremental Vs. Transformational Change Automation Process Automate: invoice receipt, routing, Internal People approval, changes processing, payment, Onboard new staff Expose veterans to External etc. faster best practice changes
People & Process = Incremental Change Invoices Per FTE 14,000 11,911 11,327 12,000 10,494 9,306 10,000 8,000 6,000 4,000 2,000 - IOFM Certified Not IOFM Certified IOFM Certified Not IOFM Certified Limited Automation Moderate Automation Share of E-Invoices Low: <10% Received Requiring Limited: 10%-29% No Manual Intervention Moderate: 30%-49% Significant: 50%-80% High: >80%
Automaton = Transformational Change Cost Per Invoice Invoices Per FTE $13.09 19,403 17,723 14,224 13,912 $8.33 $7.37 10,763 $5.56 $4.02 LOW LIMITED MODERATE SIGNIFICANT HIGH LOW LIMITED MODERATE SIGNIFICANT HIGH LEVEL OF AUTOMATION LEVEL OF AUTOMATION Share of E-Invoices Low: <10% Received Requiring Limited: 10%-29% No Manual Intervention Moderate: 30%-49% Significant: 50%-80% High: >80%
You’re Not Ready to Automate Until You’ve Considered: Your current pain points Tomorrow’s goals and needs Who Can Help You Achieve Your Goals? Automation vendors that can • Research vendor solutions and features • meet those needs Develop an RFP/RFQ & distribute it to the most appropriate vendors • Prioritize vendors based on your needs Strategies for selling your recommendations internally
RFP Automation Considerations Hardware Operating System Networks Multi-User System Security Recovery Configuration Supported Supported Features Installation and Help Desk Customization and Import/Export Program Setup Import User Interface Features Programmability Capabilities Specifications Functions System Vendor Master Workflow and Account Number Manager/General Chart of Accounts Master File Data Fields Routing Options Format Information Support Processing Additional AP Reports Capability Features RFP Checklist https://www.iofm.com/ap/process- improvement/automation/ap-software-rfp-checklist-template
You’re Not Ready to Automate Until You’ve Considered: Your current pain points Tomorrow’s goals and needs Automation vendors that can meet those needs Keys to Being a Strong Influencer Strategies for selling your • Evaluate results recommendations internally • Prepare a detailed business case • Engage your advocates to gain approval
CASE STUDY Supercharging CRE performance through invoice automation THE BUXE Company
Tyler Yates Helee Lev Director of Asset Management Chief Revenue Officer Cedar Street Companies Goby THE BUXE Company
Thankyou! We hope to see you at a future IOFM event! For upcoming events please visit: www.iofm.com
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