Presenters Elaine Nowak Tony Hiatt Sarah Fane Director of Product - - PowerPoint PPT Presentation

Presenters

Tony Hiatt Credit Manager Ivanti Sarah Fane Head of Research sharedserviceslink Elaine Nowak Director of Product Management and Marketing HighRadius

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Context

Digital transformation is happening everywhere we look. From how we book taxis to how we pay bills and interact with customer service robots, technology has re-invented many of our day-to-day processes. But what does digital transformation look like for shared services – and particularly, order-to-cash? Advanced technology is now changing the O2C landscape. Today we will explore how Ivanti are using AI to predict payment dates, improving productivity, leveraging better information about their team and supporting their business’ growth.

Agenda

SSC Evolution from Cost Reduction to Cost Effectiveness Role of Digital Transformation in Driving Cost Effectiveness Case Study: Digital Transformation at Ivanti AI-Enabled Cash Forecasting at Ivanti Results of Digital Transformation Lessons Learned About High Radius and Q&A

Early Stage

Shared Service Centers Objectives

• Standardize operations
• Enhance efficiency

Primary focus

Cost Reduction

Next Generation

Shared Service Centers Objectives

• Enhance value by driving bottom-line impact
• Improve customer relationships & service delivery
• Support business scalability and profitability

Primary focus

Cost Effectiveness

Digital Transformation

Key Driver for Building a Next Generation SSC PWC survey results on the impact of digital transformation on revenue growth and profitability

Customer Experience

1876 1266 1087

Improve customer experience Launch new products/services Enhance existing products/services Ensure cross-channel consistency Automate

• perations

Enhance productivity of workers Improve internal communication Expand to new customers Launch new businesses Develop new business models Transition physical products to digital products

Source: http://www.iqpc.com/media/1002156/32454.pdf

Operational Improvements Business Model Improvements

• No. of Responses

Which of the following are you looking to improve?

• Cash Forecasting
• Collections process
• Receivables aging
• AR Reporting
• Other / None of the above

POLL QUESTION

Improving Cash Forecasting, Receivables Aging and Reporting with Digital Transformation The Ivanti SSC Story

Digital Transformation at Ivanti

A Real Life Success Story

Ivanti’s Strategy for Cost Effectiveness

A 3-Fold Approach to Digital Transformation

Scalability Process Performance Reporting Framework

SSC

Process Performance Reporting Framework Scalability

Ivanti’s Top 3 Focus Areas for Improvement

Revamping the collections operations with digital transformation

Customers Ivanti

Collections Process Before Automation

Collections Department

Past-Due Invoices Manual Prioritization On spreadsheets Manual Correspondence Call logs and Notes Customer Contacts Ad-hoc Reminders

Collector

Order fulfilment Invoice Payments

Customers Ivanti

Collections Department

Past-Due Invoices Manual Prioritization On spreadsheets

Manual Correspondence Call logs and Notes

Customer Contacts

Ad-hoc Reminders

Collector

Collections Process Before Automation

• Manual dunning through emails, fax, calls

– difficult to cover most of the accounts

• No centralized repository to track

reminder calls, e-mails, notes, payment commitments

50% of analyst’s time spent in dialling for

dollars, writing emails, requesting escalations

Order fulfilment Invoice Payments

Customers Ivanti

Collections Department

Past-Due Invoices Manual Prioritization On spreadsheets

Manual Correspondence Call logs and Notes

Customer Contacts

Ad-hoc Reminders

Collector

Collections Process Before Automation

• Difficulty in prioritizing customer list
• Cumbersome task to manage & track

tasks across multiple spreadsheets

Lack of focus on strategic accounts impacting the receivables ageing

Order fulfilment Invoice Payments

Collections Automation

Automated fetching of customer details Automated Correspondence Automated Reminders Repository for Call Notes

Customers Ivanti

Automated fetching of invoices Automated Prioritized Worklist

Automated Collections Operations

HighRadius Collections Cloud

• Automated, multi-dimensional prioritization of worklist
• Maximum account coverage: Dunning of all assigned accounts

with automated correspondence

• Improved collector’s productivity: More focus on strategic

accounts

Impact of Digital Collections

90%

Analyst’s time now spent in researching and contacting the top customers

Process Performance Reporting Framework Scalability

Ivanti’s Top Three Focus Areas

Revamping the collections operations with digital transformation Building a robust reporting framework with digital transformation

In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections

Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements

• Difficult to evaluate individual employee performance
• Inaccurate appraisal process, chances of missing

promotion of deserving employees

• Minimal scope for continuous process & performance

improvement due to minimal visibility into metrics

Challenges

Lack of Defined Performance Metrics for Employees

Designing In-Depth KPIs for Employees

Visibility into collector performance enabled identification of scope

• f improvement

Improved focus on individual KPIs of collectors with HighRadius reporting

In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections

Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements

Challenges:

Minimal Executive Visibility in the Overall Performance Metrics

• Lack of single-view visibility for CXOs to analyze

performance on global as well as business unit level

• Cumbersome data extraction and report building
• Difficult for the senior management to take data-driven,

proactive course corrective measures

The CXO Dashboard to Monitor Performance

Increased executive visibility into critical performance metrics such as DSO, cost of A/R operations, and bad debt write off trends

In-Depth KPIs for Employees CXO Dashboard to Monitor Performance Effective Aging Analysis to Fastrack Collections

Developing a Robust Reporting and Tracking Framework: The 3 Essential Elements

Challenges:

Poor Aging With Minimal Focus on Critical Accounts

• Analysts working on spreadsheets, with limited access to

real-time data

• Difficult for the collections teams to focus on high-risk,

delinquent accounts

• Difficult for the collections teams to plan and adopt

customer-specific collections strategies

Effective Aging Analysis to Fastrack Collections

50000 100000 150000 200000 250000 300000 350000 400000 450000

Open Amount Customer

Top 10 Delinquent Customers

November December

Accurate aging reports and visibility into critical delinquent accounts enable modification of collection strategies

Process Performance Reporting Framework Scalability

Ivanti’s Top Three Focus Areas

Revamping the collections

• perations with digital

transformation Building a robust reporting framework with digital transformation Achieving business scalability with digital transformation

Building Scalable Business Operations with Technology

Two-fold objectives of scalability

Handle increase in transaction volumes with business growth Support growth via mergers & acquisitions

Scalability with Digital Transformation

Elimination of manual, repetitive tasks Strategic utilization of resources for value-add tasks Enterprise-wide standardization of processes

Ivanti’s Tech-Enabled Scalability

10 12 13 15 17 20 7 7 7 8 8 9

• 5

10 15 20 25 30 35 Current year Year 1 Year 2 Year 3 Year 4 Year 5

A/R STAFF SIZE

A/R Staffing without Automation AR Staffing with HighRadius

Achieved 20% YoY growth without adding any resources Acquisition and growth roadmap for the next 2-3 years does not include additional FTE costs Technology enabled faster and smoother transitions for the recent acquisitions of RES & Heat Software

Unpredictable component These data are accurately predicted

Cash Forecasting

Accounts Receivable Accounts Payable Other Operational and Non-Operational Cash Flows

Traditional Cash Forecasting Model Inaccurate Cash forecasting

Artificial Intelligence Enabled Cash Forecasting

Going the Extra Mile with Digital Transformation

Unpredictable component

Cash Forecasting Accounts Receivable Accounts Payable Other Operational and Non-Operational Cash Flows

Inaccurate Cash forecasting Accounts Receivable

• Cash forecasting is based on the assumption that the customers

will pay on time while customer payment behaviour remains unpredictable

• No visibility into payment prediction at an invoice-level for

accurate cash forecasting

Artificial Intelligence Enabled Cash Forecasting

Going the Extra Mile with Digital Transformation Traditional Cash Forecasting Model

Machine Learning

Algorithms

Rules Generation

Payment Date Prediction

Customer Data Invoice Data Past Payment Data Self learning through comparison with actual payment dates

Accurate Cash Forecasting

With AI-Enabled Payment Prediction

Cash Forecasting

Accounts Receivable Accounts Payable Other Operational and Non-Operational Cash Flows

Accurate Cash Forecasting

Artificial Intelligence Enabled Cash Forecasting

Where We Stand Now

ZERO invoices past-due beyond 90 days Aging%

1 2 3 4 5 6 7 8

MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR

61-90 Days >90 Days

2018 2019

Lessons Learned

✓ Technology is a necessity, not a constraint ✓ Employees should be encouraged to view digitalization as an enabler of performance improvement and job satisfaction ✓ Effective technology training and coaching helps to allay the fear of job loss ✓ Merger/acquisition related changes should be communicated to the customers using technology for smoother transition ✓ Digital transformation combined with effective people management is the key to sustained business growth

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POLLING QUESTION

Are you interested in learning more about how to drive digital transformation at my company?

• A. Yes, of course
• B. Yes, but later in 2019
• C. I am interested in a demo of the integrated receivables cloud

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• Confidential. Not to be copied, distributed, or reproduced without prior approval.

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Hig ighRadiu ius at a Gla lance

37 375+ Cl

• Clients. 150 in last 2 years.

#1 in Fortune1000 market.

£1

1 Tri rillion in receivables processed annually.

In Integ egrated Rece eceivable les Clo Cloud Pla latf tform

Bootstrapped for a decade

2006 Fou

• unded

Profitability & Growth

Ph Philo ilosophy

75% CAGR

Gr Growth

Americas HQ - Houston Europe HQ - London Asia HQ - Hyderabad 850+ employees

Glo lobal Presence

$60+ Million Growth Funding

St Strategic Par artnerships

2017-2019

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Partial List of Customers

Partial List of Customers

650+

A/R Transformation Projects

z

Credit Cloud Cash Allocation Cloud Collections Cloud

Credit Workflow Payment Gateway Integration Deduction Coding Automated Claim Denial Packages Automated Correspondence

Deductions Cloud EIPP Cloud

Credit Scoring Dispute Management Invoice Matching Shortage/Price Variance Analysis Dispute Management Credit Bureau Integration Invoice Templates Email, EDI, Web Data Capture Automated Trade Matching Notes, Reminders & Payment Commitments Online Credit Application Merchant Branded Portal Image Data Capture Claims, POD Backup Automation Collection Strategies

Integrated Receivables Platform

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• Use this opportunity to get the answers/info you seek
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• Remember to stay on for Q&A in the last 10 minutes of the session

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