Leading experts and BeyondCore's patented award-winning solution reveal that companies systematically underestimate business process error rates and related costs. BeyondCore is offering free quality evaluations as part of a unique process quality study to confirm the extent of this problem.

SAN MATEO, Calif., Feb. 2, 2012 /PRNewswire-iReach/ -- Leading experts have highlighted quality concerns with business processes, especially in an outsourcing context. Michele Cantara, VP BPM Research at Gartner noted, "Process owners and BPO customers often underestimate the true error rate of their processes. Gartner has seen instances where the true error rate for an outsourced process turned out to be 13 times higher than previously reported by manual quality audits. Advanced BPM technologies that support process discovery are revealing such underestimation of error rates."  Forrester's 'Creating An SOA-Enabled BPO Platform' report specified, "The quality with which an outsourced process is being performed is critical to BPO customers, particularly as standards for accuracy are escalating. Providers are turning to quality control tools like BeyondCore, which help identify which data entry fields are subject to recurring errors and which individual BPO agents are most error-prone, to help optimize delivery of BPO processes."  A 2009 Stanford University student research study facilitated by BeyondCore concluded, "US insurance firms drastically underestimate their Total Cost of Ownership, because they misunderstand, underestimate, and ignore many of the hidden costs, such as Total Cost of Errors and Cost of Control, for their business process."

BeyondCore also estimates that over half of business processes do not actually conform to their quality service level agreements (SLA). The underlying reason for the systematic underestimation of error rate is that human auditors only catch 25% to 80% of errors and manual audits often do not look at all of the fields in a transaction. During the first half of 2012 BeyondCore is conducting a unique study of the quality of business processes to establish the true extent of this problem. Up to 25 companies with revenues over $1 Billion can participate for free in this study as long as they sign up by March 30, 2012. Participants will receive highly accurate error rate reports for their invoice, claim or application/policy processes. Detailed participation terms are available at www.beyondcore.com/2012study.htm.

Since its inception in 2004 at the Harvard Business School, BeyondCore has leveraged its patented award-winning technologies to accurately evaluate and improve the quality of manual back-office processes such as insurance claim, invoice, and insurance policy processing. Such evaluations have spanned 10% of the Fortune 100 companies and six of the leading outsourcers on four continents. In every such evaluation, the true error rate of the business process was at least 10% more than previously believed. BeyondCore also rapidly reduces the operating cost of manual back-office processes by improving the first time quality of these processes. By leveraging breakthrough technologies such as collective intelligence algorithms and a broad database of peer-group error patterns, BeyondCore has delivered up to 30 percent quality improvement and 10 percent operating cost reduction in a matter of weeks. 

For example, at one Fortune 500 airline, certain types of invoices were being incorrectly processed as 'urgent.' This single error pattern resulted in a two day impact on the overall Cash Conversion Cycle which led to multi-million dollar hidden costs.  At a Fortune 500 financial institution, for 6% of credit card applications, the data entry operators were leaving the "Middle Name" field blank to save time. This field was considered non-critical in the SLA but in fact is relevant for Know Your Customer (KYC) regulations. At a leading insurer, certain operators were processing Spanish policy forms incorrectly because they interpreted the word 'Mujer' to mean male rather than female. These policy form errors were later leading to incorrect claim rejections for 'pregnant men' for example. In each of these cases, the error pattern was difficult for manual audits to identify and was leading to significant downstream costs. BeyondCore technology not only accurately identified the errors; it also enabled the process owner to address the root cause of the problem through targeted training or system changes. In addition to the free quality evaluations, these BeyondCore quality improvement capabilities would be available to study participants at preferential prices.

About BeyondCore: BeyondCore's patented breakthrough technology has successfully delivered up to 30% quality improvements to 10% of the Fortune 100 companies and six of the top 10 global outsourcing providers, and has received industry awards and eight patents. The BeyondCore team's background spans Oracle, SAP, Microsoft, IBM, HP, Stanford, Harvard Business School, MIT, and Caltech. For additional information, go to: www.beyondcore.com. To see success stories on BeyondCore customers go to: www.beyondcore.com/customers.htm.

For further information contact:

Sujata Sah
1.408.786.5119
ssah@beycondcore.com 
info@beycondcore.com

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SOURCE BeyondCore, Inc.

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