AutoBank for SAPCase study

Stan TomkoCorp FT & Technology Manager

May 2010

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Table of contents

• Intro• Company overview• Key challenges & pain points• Tool/technology selection• Implementation approach• Scope• Roadmap

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Company Overview

128,000 employees in more than 100 countries

A Fortune 100 company – sales of $36.6 billion in 2008

“World’s Most Ethical Companies“

– Ethisphere Institute

“America’s Most Admired Companies”

– Fortune magazine

“Best Places to Launch a Career”

– BusinessWeek magazine

“The Alexander Hamilton Award”

– Treasury and Risk magazine

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Honeywell’s Business

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Key challenges & pain points

Labor intensive cash application process

Very low degree of automation (both in and outside of SAP)

Long cycle time

Process inconsistency across businesses

Standard SAP functionality not robust enough to accommodate our key requirements

Cumbersome and labor intensive cash application process

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Tool selection / requirements

SAP enabled

Ability to process any type of bank feed / customer remittance

Ability to handle large volume of transactions

Ability to automate complex payments (FX, discounts, bank fees, etc)

Ability to use a variety of references in matching (Invoice #, SO #, PO #, etc)

Ease of implementation

Robust and efficient process in SAP

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Program scope

All 4 Honeywell’s division

100% of the SAP based revenue

All payment methods (Wire, Lockbox, ACH, etc)

AR/AP/GL

AutoKonto (bank feeds) and AutoAvis (remittance advices)

Cash allocation done quicker with less effortAutoBank deployed across Honeywell

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Business case

Completed for each division separatelyCumulative saving after 3 years of $1.3M USDGlobal FTE reduction of ~40%

Before AutoBank implementation9 bank accounts in scope

8 auto-processed by standard SAP, 1 manualAverage auto clearing rate of 37%Required effort: 13.7 hrs

After AutoBank implementationAuto clearing rate increased to 82%Effort reduced by 44%FTE reduction realized in Mar 2010

Specialty materials US

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Implementation approach

Pilot implementations carried out by Hanse Orga

Honeywell Global implementation team to work-shadow the HO consultants throughout sample implementations

Honeywell Global implementation team to lead or partner in implementations for all subsequent roll-outs with Hanse Orga’s guidance if required

AutoBank support to be owned by SBG specific SAP support teams

Savings through internal knowledge and expertise on AutoBank

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Key milestones

AutoKonto Pilot implementation (UK and NL)Started in May 2009Completed in October 20096 bank accounts in scopeAR/AP/GL

Subsequent implementations:Specialty Materials US (live in Feb 2010)Turbo US (live in January 2010)

Planned roll-outsAerospace US & Europe (go-live in June 2010)SM US Lockbox (go-live in September 2010)Turbo Australia (go-live June 2010)

AutoAvis Pilot implementationTo be commenced in Q4 2010

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Roadmap (April 2010)

Q4Q3Q2Q1

2012

Q4Q3Q2 Q3Q2Q1

2011

Q4

ACS*

TS

SM

AERO

Q1

2010

* Strong partnership with CP/S

Aerospace

SM Leg

ACS NL&UK Phased with future SAP roll outs

Phased with future SAP roll outs

Turbo

Go-Live

IT infrastructure in place

Aerospace (1000 & 4000)

AutoKonto

AutoAvis

SM Legacy (CC1000)

SM Legacy EU

CPG

Remainder of Turbo

Aerospace (remaining CCs)

UOP Global

UOP Global

CPG

FM

FM

ACS EMEA

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Key Benefits for HON

Implementation timePilot implementation of AutoKonto took 4 months!Subsequent roll-outs less than 3 months

Ease of implementationInternal HON teams driving implementations with no or minimal support from Hanse Orga

Ease of maintenance Cash app teams capable of maintaining rules without having to go to IT

Robust and flexible rule enginePost-processing with guidance by AutoKontoDashboard identifying weak spots immediately (Performance cockpit)

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Opportunities

Work with Bank to ensure that all data gathered from customers are being fed overStimulate customers to start providing data allowing for easy bank reconciliationSAP customer master accuracy

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Questions

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