Driving efficiency with invoice processing in complex business environments Here’s your chance to learn how AP automation provides so much more than just automating one single process. This session will walk through some of the other tangible benefits AP automation provides around process excellence in complex business environments. Hear how automation delivers a foundation to support and deliver results against wider strategic objectives in your organization despite a complicated process and systems landscape. Learn how automation can then be applied and is relevant for the Procurement landscape even in complex business environments.

1. Driving Efficiency with Invoice
Processing
23rd June 2016
Simon Collins
Product Marketing Director
Finance Process Automation

2. © 2015 Lexmark International, Inc. All rights reserved. 2
Session overview

3. Context
3
Changing finance is hard!
Large, complex global companies have many processes and systems.
Consolidation is not always practical and cost-effective, and is often not a
priority
So how can you achieve process excellence and deliver on wider strategic
objectives through invoice automation?
Today, we will run through how companies in complex environments (often
with multiple ERPs) use automation to improve their P2P processes and
deliver on wider strategic objectives

4. Quick quiz
4
How many people in the audience would say their company works in a
complex business environment?
How many people in the audience would say they work for a multinational?
How many people in the audience would say they work with multiple systems
and processes to get the results they require?
How many work in a multi-ERP environment (more than one brand
of ERP and / or more than one instance of the same ERP) ?
?
?
?
?

5. Accounts Payable goals
5
Faster time to entry Fewer errors No late payments
2015
Better visibility
Streamline approval
process
Better communication
with vendors

6. Financial Process Automation?
6
RECORD-TO-REPORT
QUOTE-TO-CASH
ERP
PROCURE-TO-PAY

7. Financial Process Automation – Major Processes
Sourcing
Contracting
Requisitioning / Other purchasing
Receiving
Invoicing
Payment
 Pricing, Quoting & Contracting
 Sales Order creation
 Order fulfillment
 Billing
 Collection
 Cash Application
 Accounting Close
 Journal Entries
 Period Close
 Reconciliation
 Consolidation
 Presentation
Procure-to-Pay Quote-to-Cash Record-to-Report
7

8. The finance transformation challenge
8
Complexity drives cost, not revenue
75% of global CFOs are in a transformation today
Only 25% of those succeed

9. What is the goal?
9
Simplify
Enhance
Standardize

10.  Lexmark and SSL survey
 Explored the quality of
P2P process in complex
business environments
 Particularly between
those with multiple and
those with single ERP
instances
 Examined how those in
complex business
environments used 3rd
party tools to solve pains
around complexity
The Data
10
27%
73%
72%
Shared service organisations
Still on a journey to create shared services
Multinational organisations

11.  86% of respondents who
said they worked in
complex environments
were multi-national
organisations in a multi-
ERP environment
 So while a single ERP
system could help to
simplify and standardize
processes, many do not
have that luxury and it
will not always guarantee
to solve all process pain
The Data
11
86% Multi-ERP environment

12.  56% couldn’t do this as
had other higher priorities
 Effort and cost was too
high to justify
 Different ERPs served
different purposes and
offered greater flexibility
 Consolidating ERPs was
too complex a project to
undertake
The Data
38%
Considering consolidating
ERP landscape
12

13. Quick quiz
Which of the following pain points do you have in your organisation?
 Manual entry across multiple systems
 Breakdowns in workflow
 Disparate processes
 Poor visibility and access of documents such as invoices
 None of the above
13
?

14.  Of those companies in
complex environments
these were the top 5 pain
points
Pain points in complex environments
0 10 20 30 40 50 60
Access to data
Performance measurement
Disparate processes
Workflow breakdown
Manual entry
% respondents
14

15.  The top line shows those
companies without
automation and the
bottom line those with
automation
 We can see a clear
difference between the
two, but it does also
highlight the need to use
the right types of
automation tools
Pain Points – with or without automation?
0 10 20 30 40 50 60 70 80
Access to data
Performance measurement
Disparate processes
Workflow breakdown
Manual entry
% respondents
15

16.  Capturing all types of information, both structured and unstructured, is
crucial for assuring full visibility. The best types of tools are those
which capture all document types, including electronic and paper, so
they can be translated into insightful and actionable information
 The tools should be capable of working across multi-ERP and multi-
system environments
16
1 Achieve global visibility and insight across multiple systems

17.  AP technology has changed dramatically in the last few years. It’s no
longer just about capturing invoice information. Today, end-to-end
analytics provide real-time valuable information for measuring user
productivity, optimizing cash management, enhancing supplier
relationships and ensuring compliance
 Optimized processes mean higher throughput, reduced costs
and improved performance
17
2 Leverage technology for process improvement

18.  When technology is complex or not user-friendly, user adoption
will be challenged
 Device-independent (multi-tenant) interfaces ensure employees will
be effective and more willing to engage with the application from their
computer, tablet or smartphone
18
3 Ensure tools are as user-friendly as B2C technology

19. Financial Process Automation – Major Processes
Sourcing
Contracting
Requisitioning / Other purchasing
Receiving
Invoicing
Payment
 Pricing, Quoting & Contracting
 Sales Order creation
 Order fulfillment
 Billing
 Collection
 Cash Application
 Accounting Close
 Journal Entries
 Period Close
 Reconciliation
 Consolidation
 Presentation
Procure-to-Pay Quote-to-Cash Record-to-Report
19

20. Need for visibility to purchasing, expense and liquidity
20
 Automate check and remittance
processing
 Integrate receivables processing
with downstream systems
 Reduce / eliminate manual data
entry
 Deliver a complete picture of
purchasing and payment
 Increase options for
timing payment
 Optimize working capital
 Increase visibility into financial
operations
 Shorten cash
conversion cycle
+
-
DSODays Sales Outstanding
Cash Conversion CycleDays Cash Conversion
DOIDays of Inventory
DPODays Payables Outstanding

21. What sets us apart
21
more invoices
with fewer resources
PROCESS
for how you
do business
FLEXIBLE
investment
across the enterprise
LEVERAGE
process owners with
visibility and control
EMPOWER

22. What did we achieve?
22
Focuses on
value-add work
 Better knowledge worker decisions
(not keying, but analyzing)
 Repurposed 3 employees—
recovered $1.6M with in-house
Credit Recovery team
Increases efficiency
 76% automation efficiency benefit
 35%-plus of invoices now received
directly via e-mail (no paper)
 Month-end accrual is now simple!
Enhances
vendor relations
 Proactively identify invalid invoices
 Track invoices through the entire
cycle
 Immediate feedback upon SAP
posting
 Vendors send invoices electronically,
enabling immediate review for
accuracy
 Speeds payment approval
 Avoid late payment fees
 Reduces emergency payment
requests for missing invoices

23. Thank You
23rd June 2016
Simon Collins
Product Marketing Director
Finance Process Automation
Simon.Collins@Lexmark.com