Professional Documents
Culture Documents
Presentation
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Member Of Group # C
Name ID No.
1. Md. Zahed Hasan Patowary-- 10435307
2. A.B.M. Robiul Islam-------------- 10435182
3. Shaikat Barua----------------------- 10435181
4. Md. Ohidur Rahaman-------------- 10435238
5. Mohammad Anwar Hussain------ 10435174
6. Md. Al Amin---------------------------10435243
7. Mohammad Hasan Ullah----------10435271
8. Md. Ahsan Uddin Sarowar--------10435190
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Topics of Case Study
• Managing Travel
Expenses :New tools, New
savings
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Business travel and entertainment are requirements of many jobs, and
often a hefty component of corporate expenses. Accounting to
American Express and Concur Technologies, travel and entertainment
expenditures for U.S. companies amount to more than $200 billon each
year in 2004, IBM spent $493 million on airline tickets alone while
General Electric spent $280 million.
Processing travel and entertainment expenses reports adds to the
cost. According to the Aberdeen Group consulting firm in Boston, the
cost to process a single expenses report is $48 dollars Aberdeen found
that an employee typically takes 57 minutes to complete an expenses
report.
Processing travel and entertainment expenditures is especially
burdensome for smaller companies whose processes tend to be paper
based. MarketStar, an Ogden, Utah-based provider of outsourced sales
and marketing services to other companies was drowning in a sea of
expenses reports. About 650 of its 1200 employees regularly file
expense reports to its accounting department. Three full time
employees were required to manually approve process and audit 300
expenses reports per week, most from remote locations. Expenses
disbursements were delayed for several weeks.
Jeff Jones, MarketStar’s controller, likened this process to building a
dam when the flood waters were rising around your knees. We could
never get ahead of the curve and it was all we could do to just keep
pace. In addition to processing reports, MarketStar’s staff was also
required to audit every single expenses report to ensure that reports
were accurately tabulated and all expenses were properly coded.
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MarketStar decided to implement Concur Expenses Service
Software, which automates the travel and entertainment expenses
reporting process. Employees can input their expenses data via a
Web interface from wherever they are working with a computer or
telephone or Palm handheld device. The system also automatically
imports travel and expenses data from corporate credit cards.
Electronic receipt imaging uses any available fax machine to
digitize and attach receipts to expenses reports.
Managers approve reports with just a mouse click cutting
processing time in half while boosting accuracy and productivity.
Reports produced by the system help managers keep tabs on travel
spending as transactions occur.
Control and compliance tools help firms minimize fraud and
maximize compliance with company policies and government
regulations such as Sarbanes-Oxley. The system capture firm’s
business rules about corporate travel policies, such as the
maximum amount allowed for airfare, hotel rooms and meals. A
built in audit feature helps companies identify employees who
aren’t booking airline flights with their companies preferred
vendors those who are padding their expenses accounts with
fictitious expenses for taxis and tips, or even those who use their
expenses accounts for unauthorized purchase.
Corporate executives assert that instant feedback of information
helps curb pervasive abuses. If, for example, the system shows a
red flag on a Delta Airlines booking when cheaper Southwest flight
is available, the traveler can be a alerted to rebook or pay the
difference.
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Concur software can be customized. MarketStar bills
approximately 80 of its employee expenses back to its
clients, who have their own expense policies. So it had to
build special rules into its travel management application.
MarketStar employees frequently work on a variety of
projects at one time, and the software enables them to tie
their expenses to a specific project as well as to a specific
client.
Since implementing Concur Expenses Service in early 2001.
MarketStar was able to reduce staff size for travel and
expense processing down to one person and reduce the
time to reimburse employees to a few days. It has used
information provided by the system to negotiable better
rates from preferred vendors, saving over $134,000.
Altogether, MarketStar has realized over $1 million in
savings, representing a return on investment of 19 percent
per year.
Many other companies have benefited from Concur and
competing expense reporting systems. For instance, Mercer
HR Consulting reduced the number of auditors required to
process and audit employee expense spending by 75
percent and Dell Computer reduced the cost of processing
an expense report to less than $2.
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Case Study Questions:
1. What kinds of systems are described here?
What valuable information do they provide for
employees and managers? What decision do
they support?
2. What problems do automated expense reporting
systems solve for companies? How do they
provide value for companies that use them?
3. Compare MatrketStar’s manual process for
travel and entertainment expenses reporting
with its new process based on Concur Expense
Service. Diagram the two processes.
4. What management, organization and technology
issues did MarketStar have to address when
adopting Concur Expense Service?
5. Are they any disadvantage to using
computerized expense processing systems?
Explain your answer.
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Question- 01.
What kinds of systems are described here? What valuable information do
they provide for employees and managers? What decisions do they
support?
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Manual Process
Time Consuming
Lengthy Process
Delayed Feedback Concur
Expenses Service
Possibility of Corruptness
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Question-04.
What management, Organization, and
Technology issues did MarketStar have to
address when adopting concur expense
service?
Ans: Management and employees of the company
will have to train upon the IT systems and its
uses. When they become trained, they will be
able to follow the system.
For the organizations to adopt the system- A IT
based organization structure will have to create.
And for this some technological equipments
supporting systems have to take. For example;
Computer, Internet, Web conference system and
other technical devices.
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Question-05.
Are there any disadvantages to using
computerized expenses processing systems?
Explain your answer?
Ans: In generally there are no large disadvantages
to using this system. But, initially during
launching the system some little problem may
arise. Such as, a big budget which is problem for
the company. As the employees and
management are not familiar with the system.
They will have to train before starting the system
which may effect at the company regular
activities.
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