ADP Slashes Costs and Increases Volume by Switching to Ascent Capture

Case ADP Slashes Costs and Increases Volume by Study Switching to Ascent Capture ASP now captures 2 million pages per month for stock brokerage customers In the world of documents, Application Service Providers thrive or fail by fractions of pennies per page. When an ASP finds a way to reduce costs while simultaneously Business increasing throughput, it glitters like gold. Such is the experience of ADP’s Brokerage Service Group (www.bsg.adp.com) based in Edgewood, N.Y. The Group’s clients are traditional stock brokers who want to outsource their paper processing. Investors apply for new accounts by filing “We didn’t need to signed papers. For brokerages, processing the account documents calculate a return-on- is costly and time consuming – opening a new account could take investment,” Hunt a week. In today’s world of Instant Everything, yesteryear’s slow pace continues. “We knew does not compete. we were getting a great A few years ago, ADP offered to process brokers’ account deal. I cancelled my documents in less than a week maintenance agreement on the old system and at a competitive price. One of America’s oldest and most venerable brokerage houses signed up. ADP agents collected used the money to buy the documents in Manhattan and trucked the paper to the Kofax.” Group’s Long Island facility. Workers scanned the paper, indexed it, and archived both the electronic images and the paper. That system worked well for the first client/broker. However, a second prospective broker also wanted to integrate document capture, ADP’s workflow, and its legacy mainframe system. Simultaneously, ADP strategists wanted to use barcodes to improve indexing. These technologies were beyond the capability of ADP’s legacy scanning system. In 2001, the Brokerage Services Group had purchased a scanner from Digital Storage Solutions (www.digitalstorageinc.com) a New York-based systems integrator and service bureau. Recognizing the expertise at DSS, ADP’s Nick Hunt, director of the imaging and workflow solutions area, asked DSS to confer in search of an improved capture solution. Hunt knew that his first broker/client had captured images using Ascent Capture from Kofax (www. kofax.com) and that DSS was one of Kofax’s leading Certified Solutions Providers. DSS Business Development Manager Michael Thomas assured Hunt that not only could Ascent Capture use barcodes for indexing, DSS could show ADP how to write release scripts that would launch workflows right into brokers’ systems. “We went in and met with their entire project team, going over the whole concept and process,” recalls Thomas. “They didn’t want to jump through the integration hoops that [their old capture software] required. That would have taken longer than the time they had available.” The subject turned to cost. “Kofax offered us a half-million scans per month for far less than the cost of the other vendor’s software. And their Ascent Capture product included modules like barcodes and workflow that raised the value for us. “We didn’t need to calculate a return-on-investment,” Hunt continues. “We knew we were getting a great deal. I cancelled my maintenance agreement on the old system and used the money to buy Kofax.” The second brokerage started with the Kofax solution first. In this solution, the online broker purchased its own scanners Consultants at Digital Storage wrote the original rules and release and Kofax software while ADP expanded its Ascent Capture scripts with ADP, demonstrating and teaching so the ADP staff Internet Server installation. All of the licenses reside at ADP, but would become independent and competent with Ascent Capture they are dedicated to the online brokerage. ADP captures the integration. “This all unfolded in about 45 days,” explains images from ACIS and enters specific information into dedicated Thomas. “We implemented the solution with a release script that databases. Further, ADP stores the information and hosts loaded directly into ADP’s workflow software.” retrieval and workflow systems. ADP found that – in contrast to its original capture software Depending on its customers’ needs, ADP sends images directly to – Kofax made the question of future functionality a non-issue. its clients’ in-house workflow systems. It delivers data as well. Its Ascent Capture software platform, its Adrenaline certified At this writing (Q4, 2004) ADP serves seven major brokerages scanner connectivity family, and its VirtualReScan image- and scans up to 2 million pages per month. For DSS, the processing technology comprised the broadest single source burgeoning business brings satisfaction on several levels. “One of capture products in the industry. Integrating with existing of the greatest tools was Kofax’s flexibility,” Thomas lauds. workflow software was quicker, and Kofax’s modular design “They were totally willing to make it possible for all parties to conserved resources. It used a point-and-click interface for meet their needs. Kofax’s software and management have been release scripts and automatic indexing. A staff member easily agreeable to all of our needs. ADP and the online broker have added the barcode recognition module when appropriate. had the most demanding requirements, but our relationship with The manifest success automating ADP’s second client raised Kofax allowed us to meet those needs without complication.” the question: What would a switch in capture products do for Hunt echoes that evaluation: “We keep adding clients. Now they the original broker? About that time, ADP sold its services to range in size from 25,000 pages per month to 250,000 pages per a third major brokerage. Hunt asked Thomas for a proposal to month. It all goes into one Kofax system which feeds different standardize all three capture processes on Kofax. workflow systems. After working with Kofax and Digital Storage The dawn of 2002 saw ADP scanning up to 200,000 images Solutions for three years, we consider them Best of Breed. It’s per month. The entire transition cost less than $100,000. The great to be on a single platform! operation grew from there. “The cost savings behind the new software and the efficiencies it Distributed Capture Fuels Growth brings please upper management,” Hunt adds. In 2003, ADP encountered prospective clients that did not or At ADP, business development continues, and Thomas expects could not let their paper go to Long Island. For a Brooklyn DSS and Kofax to play integral roles. “We have spoken with ADP firm the issue was security: its stock certificates never left the about implementing Ascent Collection Server, for capture at even premises. It stored images on microfiche, where capture was more remote locations, even when the volume of images is small cheap but retrievals were expensive. and the hardware is only a multi-function copier,” he reports. Another prospect, in London, faced a new law requiring digital “Also we will be introducing Kofax’s Advanced Forms modules, images. Cost and logistics prohibited sending paper to ADP for such as Neurascript and Xtrata to ADP in the immediate scanning. future. With these solutions, the potential to keep driving down operational costs is nearly unlimited.” Fortunately, Digital Storage Solutions realized that Kofax Ascent Capture Internet Server (ACIS) would address these needs for For more detailed product information, visit www.kofax.com, or distributed capture. With this component, scanners anywhere call us today (949) 727-1733. in the world capture images and electronically send them to a remote location for release, storage and retrieval. Indexing and quality control occur at either the scanner site or home base. ADP proposed solutions based on ACIS and dedicated transmission lines to both the Brooklyn and London firms. Hunt’s group won both accounts. Now, phone lines bring streams of images to Long Island for indexing, quality control, archiving, and release to workflow systems. The next challenge came when ADP approached a leading online Corporate Headquarters brokerage. Although this business specializes in online trading, it Kofax Image Products, Inc. 16245 Laguna Canyon Rd. Koning Albert 1 Laan 64-66 still generates copious quantities of paper. ADP proposed remote Irvine, CA, 92618 B-1780 Wemmel, Belgium scanning at paper repositories on the East and West Coasts.