Data-driven Finance For Your Accounts Receivables Operations

Introduction
to wherever you are this is Akshay Kumar from Emagia Corporation let me take
the honor to thank you all for joining us today let’s go over a few housekeeping items before we start I’d
like to request you to please mute your phones during the presentation for all the attendees with questions we will
have a Q&A session at the end of the presentation and request you to clean your questions on the WebEx chat to the
host your questions will be answered sequentially if you are unable to get to any of your questions due to time
constraints we will respond to them separately or an email just to let you know that we will be recording this
session and we’ll share it with all the attendees and the registrants but for this session about the data-driven
finance for your accounts receivables operations we will focus on how to liberate digital technologies to
minimize cost per transaction scale your business and achieve optimal efficiency with digital credit collections and cash
applications we have with this felissa Saavedra director or auditor cash
solutions at Emagia Corporation and John Santa ma vice president dependent
solutions and consulting at Conduet Phyllis has been a very distinguished
speaker and has been in the industry for more than 20 years concentrating in the
fields of credit and collections over the years she has held several senior management roles in companies such as
Cisco aspect novelist and Ascan Saba software additionally she has extensive
experience as a consultant in all areas of the order – life cycle while John is
a banana sauce formational professional with over 20 years of experience as a solutions focus finance operations and
consulting experts John has extensive experience supporting transformation initiatives for global organizations in
US Europe and Asia John comes with a very rich experience leading
cross-functional teams and delivering finance and I knew transformation initiatives but achieve strategic
objectives in that range from 1450 to new starters
without taking much of your time anymore let me welcome police to start the
presentation oh do you police thank you thanks Akshay welcome everyone and thank

About homogeneous
you again for joining us this morning as Akshay said if you have any questions
please submit them through the chat and John and I will try and get to them at the end of the presentation before I
begin I just want to tell you a little bit about in Majah the company that I work for homogeneous been in business
about 14 years we really specialize in the digitalization and the optimization
automation of all of the order to cash functions we are a software company we
have implemented and deployed our tool at many different companies as you can
see over in the top right some of our key customers again our whole goal is to
make more efficient and intelligent the various finance operations that fall
within the order to cash accounts receivable life cycle today I’m going to

Agenda
talk about a few things first the new directive for finance then a little bit
about data-driven order to cash transformation and then of course the the street strategic benefits of
utilizing all this data utilizing digitalization and automation within the
order to cash accounts receivable rolls so with that let’s get started when we
talk about the new directive for finance operations the real goal is to
understand how the role of managers and executives are changing as well as how
the roles of each of the individual members of the team are changing to be able to accommodate this new directive
and certainly get the most value from it pardon me so you know people have joined
this webinar today for a whole variety of reasons some of you may just be
intrigued you want to learn a little bit more about data it’s data driven technologies so you may have a directive
that came from an executive or your Board of directive Board of Directors that you need to learn more or adopt
some of these technologies others like you know may have a finance transformation project in the works and
possibly some of you have been told you need to do more with less you might have to cut headcount you might need to scale
your business all of those things probably brought you to us today and
hopefully by the end of this webinar we’ll be able to give you some really good ideas on how to address these
things so as we begin you know when you look at the center of the slide there’s
some really good questions you should be asking yourselves so what are some of
the benefits that my company can realize from these technologies understanding at
the outset what the benefits are is very important you want to know what your ROI is going to be how can i leverage new
advancements in technology there’s a lot of Technology new technology out there you hear people talk about artificial
intelligence robotic process autom automation all these kind of different things how can you leverage them to best
benefit your business how can I use
these order to cash analytics to help my company so what are the drivers in your
company what are trying to understand what the key performance drivers are
what are the directives that are coming down from the top what are the analysts saying how can analytics specifically
help your company and which types of analytics and then you know the thing
that we’ll probably talk about most at the end is how can I transform my operations how can I make my operations
more efficient how can I make them more effective how can I improve cash flow
how can I improve my working capital metrics and most of all which you know
you want to be able to get from these technologies is how can I improve shareholder value and how can I improve
the value to my customers
so let’s talk a little bit about data-driven order to cache transformation specifically our need to
far so what is data driven what is really the definition of data-driven
data-driven means the progress and inactivity is compelled by data rather
than by intuition and personal experience the key word in here is really progress you want to make
progress in your activities in your daily activities within your business by using all of that data counts receivable
order to cash is it’s a hub of data there’s tons of information that you can
get from the business order information credit information risk information all
of those things using that information get what our data-driven organizations
managing business performance process outcomes and people behavior using
insights derived from data we’re going to talk a lot about these insights where we talk about analytics and some of the
coming slides and bring the nexus of forces so bringing all of these things
together digital data management analytics automation RPA bringing all
these technologies together so that you can gain insights into your business and
you can certainly improve and operationalize all these different components of the business to make you
more efficient effective and certainly you know improve things like cash flow

Deloitte Article
pardon me so a Deloitte article talks
really about what will the role of the CFO look like in 2020 you know the role
of the CFO historically has been one of a reporting of providing information
about what’s happening in the business but the world is changing and the role
of CFO is actually changing to a point where they need be able to leverage technology in order
to gain mobility in the business in order to be able to use all the
technologies that are out there to manage risk to make the business run
more effectively to be able to incorporate all of this within the corporate strategy so what does today’s

Todays AR Department

order the cash accounts receivable department look like most order to cash
departments are very complex what you see on the screen is kind of gives you a visualization of what’s going on there’s
a lot of different departments there’s disparate groups everything is very complex
it’s siloed the operations are not running together you might have a lot of
different locations you might operate you know you might be part of a multinational organization or you’ve got
a lot of different operations you might have a lot of different ERP or legacy
systems you’re running on you might have grown by merger or acquisition so you’ve
got a lot of different processes and you’ve got a lot of different tools it’s a very complex organization and the key
to being successful in these organizations is understanding how you
can centralize and see all this information in one place how you can
gain insights from it and how you can really automate and digitalize all that
information that’s out there to make you an efficient streamlined organization

Pressure on AR Teams

so when we talk about finance transformation and digitalization it’s important to know what the executives
are looking at or looking for today you know what you see on the screen is you
know there’s a lot of pressure on the AR teams what are the executives putting
this pressure on them for number one to improve cash flow not just improve cash
flow but also to be able to predict how much is coming in when it’s coming in so
that the executives your controllers your CFO your CEO your board knows how
they can spend that money and where they might need to save money as it’s been
four years these departments are also asked being asked to reduce the Esso reduce stays outstanding in other words
minimize the sales turn why are they being asked that why is that continuing
to be an age-old issue for these departments because every day a sale is out there it’s costing your business
more and more money so when we talk about these new technologies we talk about what people are looking for we
really look to be able to find tools to be able to find ways to be able to
transform your business to be able to improve the cash minimize these metrics
like DSO and then additionally doing things like managing risk minute
minimizing write-offs to things like bad debt and all of those kind of things improve transaction efficiency the
functions that fall within the accounts receivable organization are heavily manual they’re heavily transactional
there are any number of ways as you’ll see later in the presentation that you
can actually improve the efficiency of the business and improve your cash flow just by automating some of these very

What Can Work

also important to know is what what can
work what what are the drivers of what can and will work in transformation and
what needs to be the drivers of it I’m here tomorrow we really talk about the four C’s of order to Cash transformation
primarily the first being cost when we talk about digitalization we talk about
transformation we want to look at reducing the cost of the operation how can I do more with less how can I
automate to make the team efficient if I need to reduce headcount or I need to
grow without adding headcount how can I reduce these costs control reducing
cycle time how can I speed up the time to get cash in the business how can I
speed up my customer onboarding customers I guess you know there have been many many surveys out there that
show that customers that have an easy process to be brought on board are happier
customers they tend to come back more frequently for sales and they tend to
have higher customer satisfaction scores so cycle times whether it’s from the
customer side or whether it’s on the cash flow side one of the things that’s always important and that we should not
forget when we start looking at these new technologies as compliance whether
you fall under audit compliance survey into Oxley compliance you need to look
at transformation that can also be aligned with the compliance and regulatory needs of your company and
finally you know we’ve said it many times and I’ll probably say and 20 more times in this presentation
what can improve cash flow cash is the lifeblood of every organization we need
to be able to bring it in faster we need to be able to use it to grow the
business cash caches you know no matter how technologically advanced we get cash
is still king within every organization

Core Technologies

so what are the core technologies that help us to achieve this transformation
the first one that we look at is big data the ability to centralize these
large amounts of data that you’ve got in your company companies today have years
and years of data whether it’s structured data or unstructured data we
want to be able to utilize this data pull it in and be able to have a
repository to which we can make use of all these that all this information to
help us get to a more modern and advanced organization in addition to Big
Data and sort of you know alongside of Big Data I would say analytics there are
various types of analytics there’s predictive prescriptive as well as you
know the historic type of analytics that report things that are going on today you pull all this data in you’ve got
large pools of data you want to get insights on it you want to be able to
use analytics dashboards visualizations so that you can gain insights into
what’s going on in your business and finally digital automation utilizing
you know built on a structure of big data you’re getting insights now you need to be able to operationalize these
things you want to be able to automate many components of your business manual
tasks that have historically been done you can automate these you can make your
your company far more efficient we you know as a company traditionally try and
look at getting to a place of 80% automation as I said previously the
accounts receivable order to cash functions are heavily manual they’re heavily transactional roles if you can
automate 80% of that and you can free up your team’s to be doing more but
provocative um more highly you know thinking type roles
or focus on those kind of activities you’re going to be able to achieve all
of the goals that you need to get

Datadriven Approach

so when we talk about all of this we really recommend a data-driven approach
to order to catch what is it you know we talked about what data-driven is meaning
we want to be able to utilize all the data that’s in in the organization we
want to eliminate the silos we want to be able to have a single source source
of truth in our business on the AR order the cache type role is what that means
is whether you’ve got one or multiple systems whether you’ve got a variety of business units or countries you’re
operating from you want to eliminate that you want to be able to get a global picture of your AR that you can use to
minimize risk you can use to gain insights in your business to provide
reporting and things like that you want to then be able to turn that data into
insights into decisions within your business so how does all of this being
able to get the big picture on what’s going on in your business can help you understand customer payment behavior it
can help you look at DSO DSO patterns and things like that we often use our
tools to be able to do things like gaining reports or collector efficiency
so deciding where do I place my collectors where should they be spending
the most time looking at deductions and short pays and chargebacks within your
business seeing what types are coming in operationalizing this data so that I can
re redeploy people within the entire business perhaps on product failures or
or salespeople that are not efficient or processes that are not efficient and then finally you know digital up
digitalising and automating to the core start with your high impact areas each
of you needs to analyze your own business look at it and see what exactly
whether the air that are going to have the greatest impact on your business are you
struggling with cash flow are you struggling with working capital metrics are you getting low customer
satisfaction scores from customers because of your onboarding process look
at these and these are great places to start and start you know considering
things like workflows and task list and making use of processes like our PA and
and the like so when we talk about this we talk

Unified Data Platform

really about three steps in the process and the first step you know as I
mentioned earlier is bringing all of your order to cash data together we
think you know it’s very important to have a unified data platform whether it’s a big data platform or a central
hub where you’re pulling all the information in on your accounts receivable whether it’s from one system
or several entities pulling it all into a central hub keep providing you with
that single source of truth for your a are giving you views into your customers you
want to be able to manage your customers in a hierarchical fashion managing
credit risk and things like that at the parent level being able to make decisions about your customers whether
it’s who’s going to be collecting that money how you’re going to assign credit limit all of that if you have a single
view of your customer and your receivables it makes all these decisions much more easy not to say that you can’t
bring them down into a transactional level but you want to be able to see it
both on both sides so from the very details to the extreme summary level I
talked a little bit about customer master governance when I talk about parent-child hierarchy you want to be
able to map these things you want to be able to see all your data in a single place see all your customers in a single
hub whether you’ve got a customer that’s residing over several different time zones or several different countries
it’s important to be able to have that centralized view and it is important as
well as to be able to have an ability to extract that data report that data be
able to pull it out whether it’s in a reporting tool of you know a dynamic reporting tool and Excel based reporting
tool or an animal being able to extract that information and gain insights into that information

Gain Insight

so the second step we talk about is gaining insight I talked a little bit
about you know the type you know analytics that are out there and you
know in terms of accounts receivable there are a lot of different insights you can gain into your business you know
whether it comes from a descriptive nature predictive prescriptive or a cognitive nature there are analytics
that you’re pulling in and dashboards that are available whether it’s executive reporting it’s closed
reporting whether you want to gain insights on your DSO how efficient your
collectors are how how your cash flow is going all of these various types of
analytics are available and are there to help you really understand and manage
your order to cash performance so the types of areas that we really

Types of Analytics

think are key and essential in the order to cash area really fall under the
different components of order to cash things that you should consider when you start looking at your business and start
trying to determine what kind of analytics do I need this is really great
now Phyllis is telling me I need to get insights into my business but what would be of use specifically
you know in the order arena things like um cycle time margin analysis
cost-effectiveness those kind of things when we talk about credit risk analysis you’d like to be
able to look you know whether it’s country risk or its regional risk
utilization credit limit utilization in terms of sales using these kind of
analytics to help drive future business their receivables analytics things like
you know turnover and payment term analysis it’s really good to be able to
look at your customers payment terms so if I’ve got a bunch of customers that are net 30 and my net 30 customers are
all paying you know around 45 days but my net 90 customers all tend to pay on
time that’s going to tell you something about your business I could go through
all these again we’ll have the PowerPoint and presentation available I
think you know as you start to think about how you want to utilize analytics in your business I think you need to you
know as I said at the outset what are the key drivers of your business are your issues right now falling under the
header of cash application is it credit risk management gives your collections
operations when you start looking at those then you start considering what types of analytics you need you can use
these to either assess the business and see where you need to make your changes so you can use them at the front end you
can also utilize these at the back end to see how your performance is doing

Descriptive Analytics

so I did I talked about three different types of analytics I just want to you
know give you a quick definition of what each type is because they are very different and each serves a very
different need within the business descriptive analytics are kind of what
we think about as your daily reporting your executive dashboards your
executives may come to you and say I want to come in in the morning I want to push a button and I want to see all of
my a are at a glance these really help you understand what has historically
happened in your business and why it’s happened it helps you to aggregate
things like the KPIs you can see DSO you can see aging buckets
you can see how collectors have performed it helps you to manage things
like SLA service management within your business all of these things would fall
under the guise of descriptive analytics the second type are predictive analytics

Predictive Analytics

what are predictive analytics well it’s just like what it seems you know it’s a crystal ball it’s going to they will
tell you based on machine learning and these you know sort of complex
algorithms what is going to happen in your business so you can use these it’s
really important in a are to utilize these to help you drive proactive behavior if my analytics are predicting
high DSO before I get to that point I can start looking at these customers I
can start analyzing why they’re not paying on time and drive proactive
business and know within your organization so using the future
predictions to actually change what’s going to happen in the future it becomes
a very important part of managing the order of the cash life cycle and finally

Prescriptive analytics

the analytics that people probably you are looking for most these are the kind
of analytics that we we probably get the most requests for as of late and these
are the prescriptive analytics what should I do how do I get to where I you know what I
want to happen I want you know we can use these to drive strategies in the
business to help drive the resources within a shared service environment how
to optimize things like cash flow and minimize risk so you’re kind of using it
sort of combines all what happened historically what is predicting and it’s
telling you the kind of things that you should be doing to improve your performance it really is it’s the true game changer
when you talk about you
so there’s an there’s a strong need within the business especially within
the accounts receivable function to map your performance plan and figure out
what do I need to do to achieve this performance whether your goals are cost
management control within the business changing your customers behavior how do
I map out exactly what I need to do to change this and optimize the performance
of my business so with that we talked about the third

Automation

step and the third step is really key in changing what happens within the
business this is what we call the component of automation it happens to be
a specialty of our company this is what we do we automate operationalize and
digitalize the various functions within the credit cash lifecycle so that the
various things you know you can look at automating whether it’s your onboarding process you can digitalize your credit
onboarding process from credit applications to credit scoring your
receivables I’m looking for tools that have electronic invoices and statements
that allow you to analyze your customers and predict cashflow forecasting driving
strategies within collections is another great way to to digitalize and automate the process managing your deductions
earlier I mentioned being looking at your deductions so you can do reason
code analysis and drive change in the business and operationalizing and automating things like cash flow for
excuse me cash application finding a tool that links to your bank or third
party system and automating a process that has historically been extremely
manual so when we look at these areas that make

Receivables

up the order to cash life cycle you know the first one that we talked about in terms of smart automation is receivables
as I mentioned there are many areas that you can automate within the receivables
lifecycle so first off you automating your agents looking at tools that will
automate and give you the ability to analyze your aging predict DSO predict
payments send invoices and statements electronically gone are the days of
somebody sitting in a mail room and mailing out an invoice or a billing statement that should all be done in an
automated fashion we should be redeploying all these mailroom people to
tasks again that are more thoughts provocative if you know you want to improve the information access to
information for you and your customer you want to make it readily available if
I want to see an aging or I want to see a DSO for desk or a cash forecast my
Custer wants to be able to pull up all this information it’s important that they have it right at their fingertips
and then it doesn’t as a customer told me the other day it takes them 30 hours
to run an aging those people cannot see customers that have paid on a daily
basis it’s important to have an automated tool that will give you instant access to what your receivables
are today and give your customers instant access to be able to see all the
information around that the next area is the credit process credit onboarding as

Credit Onboarding

I said should be an easy process looks for a tool that is entirely digital your
customers should be able to access an online credit applications references trade and bank should be checked
digitally they should integrate with third-party credit bureaus and do
automated scoring rules should be set up that you only have to manage the high-risk customers
low-risk customers should automatically go through a workflow process be fed
through and be given credit limits like I said 80% of your credit business
should be part of an automated tool these days in my system dis rose up next

Collections Process

is the collections process collections process is one of those areas that I
like to say you get the most bang for your buck with automation the collections process is really setting up
strategies within your accounts receivable automating it so that collectors only have to see a task list
of things they need to do today only focusing on those high-touch customers
those high-touch tasks those high-risk tasks everything else in the business
should be automated 20% of their business should be appearing in these task lists and those should be the
customers that you’re managing if you have a customer that pays on time every
single month just by sending them an invoice a collector should not be wasting their time making a call to that
customer that should all be automated they should be calling the customers that historically pay late or need
additional information along with collections come from dispute process if

Dispute Process

you have a business that has short pays that chargebacks
a lot of deductions in the payment process you want to look for a tool to
automate these disputes not only just being able to provide reason codes so that you can report on it and change the
behavior in your business but you want something that will work for the entire credit credit memo process you want to
be able to send them through the business so that they can be cleared up very quickly again customers tend to pay more
quickly when their credit memos or issues fast when their issues are
resolved more timely it improves customer satisfaction and agree and brings people back to your business for
further repeat customers that we’re all looking for

Selfservice Portal

one of the last things that is the self-service portal the self-service portal is what you call an electronic
invoice payment and presentment portal this is one of those newer mods modules
that we find people asking a lot about customers don’t necessarily want to talk
to the accounts receivable department they want to be able to go into a system 24/7 pull down their own invoices to
suit their own issues make payments and
do everything in an automated self-service type of way so this is an
issue if you see your customers complaining about things like this consider a tool with a self-service
portal last is the cash application

Cash Application

automation cash application is exactly what it sounds like you want you know
look for an automation tool if you’ve got a lot of people that are manually
entering cash receipts if you have a lot of errors in your cash receipts if you
have a lot of transactions this is a really good area to consider automating within the business you most tools get
to a place of automating over 90 92% of the receipts that come in so you’re only
managing the small percentage of the business so again the key to automation
is getting to a place where you can automate 80 to 90% of your business
leaving the rest of that business for more provocative types of tasks and with
that I’m going to turn this over to John to go to the next part of our
presentation
you you
don’t know okay okay Thank You Phyllis Krisha appreciate
the insight into what emoji does and is
always I’m uh increasingly impressed with the with the
functionality and the thought leadership that the homogeneous began to put in
their front as I said in the beginning I’m responsible for finance and
accounting solutions at con doing and you just want to spend a few minutes
really shifting the focus here to talk
about release to focus on the how how
are we doing things or how or how how should things be being done as you’re
thinking about transforming your business especially related to the order to cash space so the UH I’ve included
this slide here is X give you know a Gardner slide but I but I thought it was very telling that you know
transformational change is really hard work the biggest threat to innovation is
actually the cultural change in your the cultural impact that it has and to
reimagine your business you really have to be willing to let go a lot of the
fundamental thinking that historically takes place with respect to control governor’s motivation and change
management so you know a lot of things that Phyllis talked about you know in
the earlier in her and her presentation I myself and my realization are really
focused on working with companies like ammaji to help companies embrace this and say
promises you
just a little bit about about con doing we were actually for most most people
haven’t heard of us performed January 1st of 2017 we actually used to be a
part of the Xerox where I think of us as a six billion dollar startup our part of
the business is nowhere nearly that big but we’re still working with a parent a
you know a decent sized organization we have about 5,000 employees working
around the globe we have about of a thousand people 2020 or so percent of
our people involved in order to cash activities and we’re looking at Amasya
to begin to help us grow that doing even bigger percentage of our business

The Digital Office

here we go now when we talk about the
the digital office but I think that’s that’s a buzzword that’s beginning to
kind of creep into the lexicon really across across business and across up the
cost of Finance and Accounting space but this is a point of context here every
day according to IBM the world creates two-and-a-half quintillion bytes of data
I don’t know how many zeros that is but I think it’s a heck of a lot so what
we’re seeing in the enterprise level is an increasingly an increasing focus
around digital when it comes to comes to finance and I think Phyllis and and
Amasya are really beginning to embrace that you heard a lot of the conversation in the analytic space about focusing on
on digital if you if your company was born in the cloud like like uber for
example where everything runs seamlessly and it’s integrated and you don’t have any you know you have any collects
issues right because everything happens instantaneously that’s great but most of
us don’t have that benefit and most of us are working in a more traditional environment but what we’d all like to be
able to get to the same kind of point is as where we live in the cloud and everything is digital so what we’re
really migrating to is an environment where automation becomes native to the entire conversation that decisions are
made on predicting events not merely reacting to to history so what we were
then focusing on is from a transformational perspective we’re looking at really a complete
re-engineering of how we think about doing business and really kind of abandoning a lot of the lot of the
traditional perspectives so how do we capitalize on this as we begin to focus
a lot more on analytics and automation

Analytics and Automation

now in a there’s an analyst company out there that some of you may have heard of
maybe maybe some of you or not it’s called for such resources they’re they’re kind of an up-and-coming Gartner
Forrester type of firm but basically in one of their recent surveys of the
global 2000 companies the their survey confirmed that 98% of those four of
those global 2000 companies have some element of an automation strategy that
they’re that they’re currently deploying now when you think about you know how
can I begin to drive significant value from you know from the ammaji tools or
from other other digital or automation type tools your your year you’re looking
at improving your your delivery offering you’re looking at improving your policy
and governance processes you’re looking at really looking the tools by commodity
to really give you kind of an end-to-end process matters with you and certainly you’re looking at a really a best
practices type of model well when we looked at you know it tools like these
our point of view is that the smart automation and the process digitization
is really going to be on where you’re going to drive is the most significant value from the from the conversation so
companies like ammaji and con doing are really helping helping companies on this journey these are not in some cases
immediate savings or values but I think if you look at it from a partnership
perspective automation is certainly going to be enabling how we how we transform to the next level

Partnership Perspective

now from a capabilities perspective a con doing this involved and really all
of the all of the engine solutions from source to pay order to cash and record
for poor but today we clearly want to stay focused on the on the order to cash

Transformational Perspective

business I think that that on this slide here this looks very similar to what uh
to what Bill is shown a few minutes ago but what I want to call out though is that from a transformational perspective
that these these activities run generally sequentially from from left to
right the primary pain points tend to be on the right side collection dispute cash
applications and that’s where the magis certainly is as its developed some some
automation and some tools that are very powerful so those are the primary pain
points but what we’re seeing is that you can’t look at the backend without also
looking at the front-end because typically the root cause a lot of the
problem is actually on the front-end so we encourage companies that are plies
to focus on getting the you know the quote management getting the risk
management giving the order management right on the front end and and that
actually eliminates some of the pain on the back end but they said some of the
tools for example that Phyllis talked about in terms of this in the in the managing credit space I can go a long
way and ensuring that well you’re not going to have the same collection problems that you might have today if
you were better managing the other risk management in credit management stuff only on the front end so it’s you know
something to think about as you’re thinking about deploying some of these solutions so this is a graphic that I

Working Capital

think is kind of kind of interesting it’s really kind of a 3d view of working
capital now what’s interesting here is that there’s nothing if you will kind of
end-to-end about this right it’s it’s there’s a lot of moving parts and a lot
of interactions Queens between different parts of the organization whether it’s the only you
know the sales channels or the operations coming out of the counting or the system’s coming out of I T or your
interactions with banks and risk management so you know the factors that influence working capital go go well
beyond the boundaries of your traditional order to – processes and the gaps in any one of these can have a
significant impact on your working capital so when we work with clients

Understanding the Problem

this decides accepting some rises in a very very high level the approach that
we typically follow with all of our clients and obviously the first the
first step is understanding what the problem is so in in the typical
situation you say well you know the problem would be real simple you know we have about a problem either in our in
our collection space or we’re doing all the Spaniel activity or the orders that
we have of coming you name correctly well you really have to stay focused on on really understanding what the root
cause analysis really becomes we had one client that that does that I’ve worked
on recently where we determined that the real problem wasn’t necessarily on the
collection side but it was actually on the order process a side because there
was you know a significant amount of bad data on the other side so understanding what that end-to-end process looks like
and getting to an agreement of at around the approach can actually begin to help
you focus on on the on the end and process through a much more digital and
hotel and technology perspective but once you have that mapped out then deploying tools like Amasya can really
become a game changer for for companies just a little bit here in terms of just

Typical Approaches

understanding what – what the typical approaches would look like obviously you
know we end up breaking them down into what I consider to be growth options
the options and effectiveness options and obviously you know effectiveness
gets to you know what’s impacting my customer what’s impacting the quality of
the work that I do and how can I improve that in the middle category efficiency
focuses on eliminating waste and going through Leonore Six Sigma type
activities and then the growth opportunities are really things that are then or barriers to being able to grow
your business whether it’s having enough capacity or being able to effectively manage your risk all of these then get
involved in in prioritizing the the solutions that you might want to put
together in terms of moving forward with your transformation from a strategic

Moving Beyond Costcutting

perspective we’re talking about moving well beyond cost-cutting if you if
you’ve already done this if you aren’t if your organization has already been involved in in the traditional
cost-cutting there really is nothing more or you can cut you know I’ve seen organizations that keep trying to cut it
cut it cut but what the cost of that actually turns into a negative impact
because they are actually cutting elements that are that are inherently
required to actually grow the business if you haven’t if you haven’t gotten to a point of any kind of a cost cutting
activity there would be no point in even focusing on the traditional approach when there are so many approaches now
that have a digital focus that are much more highly scalable that produce better
value and really focus on on positioning the company much more better or much
much better from a strategic perspective

Pain Points

so I mentioned a little bit earlier yes some of the pain points that were
involved in the in the order to catch a working capital space and I know that
the fileted had covered off on some of these but clearly the things that that
we have been able to help companies with successfully is really focusing on on
right off on unresolved deductions and disputes I mean dispute management and deduction
management can be a very painful processes as you would know if you’re on this call you know the manual hand offs
and interfaces between multiple erps and any kind of non value related
activity are things that that we focused on clients are trying to eliminate and
one common I mean here in men would make here is that a lot of the activities in
automating the process and try and recently have tried to employ robotics
but they but even some of those activities tend to be if you will more
tactically focus robots and I think that what we’re seeing now coming into the
marketplace are tools like a mafia they really have embedded robotics and
embedded machine learning that actually eliminating more of the manual effort as
opposed to just taking kind of an incremental incremental approach so it

Client Examples

ended this space here just summarizes some of the examples that we’ve seen in
terms of being able to work with our clients first and foremost in the
accounts receivable space significant reductions in overdue DSOs you know bad
debt reserve numbers that are a fraction of what they had difficulty been in the past unallocated cash
less than 1% reducing the number of cash application FTE by up to 40% vo there’s
so much automation that can take place now in the invocation a space that it’s uh it’s pretty amazing
with the with even even with unstructured data we’re seeing the
ability to really manage that much more effectively and it turned around time of less than two days on on 95% of all
customer care interactions but they all of these things go to improving working
capital and they also go to to really improving the customer experience especially when you employ a portal is
what is what Phil is dimension before so I think those are just you know to meet
some of the highlights to some of the things that we’ve been able to you have to provide for some of our clients and

Customer Experience

when you when you can do all of these things effectively that visual that I
showed you previously looks a lot different when everything connects together in a seamless matter with
efficient Treasury operations and robust cash flow and an integrated like
technology they are environments

Big Data

and I like to close so just maybe a little a little buzz of a thought-provoking thought here is that
you know the world is changing very fast as I wouldn’t even work with with the
Omashu team here for the last couple of years the advancements in technology
that that I’ve seen coming out of this group have just been been amazing and
but but this is a cartoon on the left that was published in 2014 and in 2014
big data that was just a buzzword I mean we kind of all heard it but you know we
didn’t really know what you do with it and who was involved in it so this cartoon kind of gets to the point of you
know we were going to solve this problem by using big data that none of us have the slightest idea either what it is or
what to do with it but it’s when you fast forward to today everything is
cloud enabled that means that that you can really manage massive amounts of
data Amazon Web Services I mean they advertised on television you know they
were on the baseball game the football game of the day and I spawned at the airport when I was flying this to San
Jose yesterday so it’s you know because if things become really part of the domain and you’ve got Watson’s you know
sitting everywhere and really machine learning and AI which are really the
biggest disruptors for big data analytics are embedded in applications
like amaz so I think that you know the it’s an exciting time but I think the
world is changing really fast and we really need to think about how we how we embrace it and how we begin to transform

Wrap Up

you know in that context so just to kind of wrap up from my perspective the
automation and analytics are really changing solutions and behaviors there’s
a significant potential for in working capital improvements in most companies
even if you think you’re in a good place there’s a pretty good chance that you even move the bar even farther and you
know pilots and assessments for these kind of reviews they can actually be
accomplished in a matter of weeks in a fairly non-invasive manner and cloud-based solutions are making
implementation of any of these kind of solutions and much more quick work more
quick quickly and much less painful than they would have been in the past and the advantage of that is that you can begin
to accrue some business benefits fairly quickly you know longer term it’s a long
transformation journey but the payback begins to start fairly early in the
process and with that I will turn it back to Akshay and if there’s any
questions
thank you John appreciate it thanks thanks lost ELISA we have a few more

QA

minutes so we’ll look for any questions that is that that the attendees have for
us
so we have one question through chat and
the question is you know where would be a good place to start we have initiatives in our business and where
would be a good place to start you know I think John and I both talked about a lot about analytics I think you
kind of know the areas of your business and it really is business specific so are your issues credit or your issues
cash flow working capital and if you’re not sure where your issues are starting
with something like some general receivables analytics or you know consulting firm coming in and sort of
assessing what you’ve got is a really good place to start from an overall
approach and then starting to look at the various automation areas and components in order to move forward
you
just the Stila to remind that in case if you have any questions you can pull the questions in the chat box for the host
okay I think we have another question that came in for John yes so the yeah
the question really had had to do with you know from from an end-to-end
perspective you know what are you what are you really finding is the you know
the key pain points and then to maybe you can end up in your clarify on some of that yeah I think what you know what
we’re seeing is that the I think it still is kind of hit indicator earlier
that the the collection management process is one that can really be highly
automated and that can really glean out or lean out a lot of inefficiency in the
business and from a from the automation that’s available from a dispute
management perspective I think it has really beginning to transform that space
as well just in terms of being able to eliminate a lot of the the
back-and-forth interactions that are frustrating to to consumers
hey I think with that we hit off of the hour
yeah thanks John thanks Phyllis Appaloosa we can move one more slide
ahead we have some contact information we’re in the audience can look at or any
more information in the most pieces will be due right towards that information
calm or calling it one eight six six Amasya one or you can also try and
connect with the Phyllis of Edra thank you very much thank you everyone