3M Health Information Systems (3M HIS), a division of 3M Company, is a leader in clinician, revenue cycle and performance management technology and services for the healthcare industry. During the last half of 2005, 3M HIS engaged in a broad search for a new billing and contract renewal management system that could support the complex revenue recognition accounting rules under ASC 605. After an extensive evaluation period, 3M HIS selected SOFTRAX, and implementation began in early 2006. As with many companies relying on disparate systems, 3M HIS was saddled with many legacy sales and billing practices. While some systems could be phased out, many could not, requiring multiple integrations with the SOFTRAX infrastructure.
In the years since teaming with SOFTRAX, the 3M HIS business practices evolved, and the company led several acquisitions that required rapid incorporation of these businesses into the HIS application infrastructure.
With SOFTRAX’s flexibility, 3M HIS was able to quickly integrate the acquisitions for billing and revenue processing, and the 3M HIS billing and revenue processing kept pace.
In 2019, 3M faced two simultaneous and completely new challenges familiar to many companies in today’s environment. First, 3M HIS needed to support the significant changes to revenue recognition accounting policies through the new ASC 606 accounting guidance. 3M HIS also needed to integrate a significant and sizeable acquisition that brought new requirements to offer subscription and consumption-based billing.
With the existing needs around legacy software license billing already handled by the SOFTRAX Operations implementation, 3M HIS decided to bring SOFTRAX Revenue Manager into the mix to tackle the new revenue recognition requirements and SOFTRAX Contrax to manage the new subscription and consumption-based billing models. Because SOFTRAX integrates these applications out of the box, these implementations were able to progress rapidly and, in parallel to, significantly condense the timeline to value.
Today, 3M HIS uses one of the most broad-based revenue management application infrastructures available, relying on SOFTRAX solutions to automate existing forms of billing, contract renewal and revenue recognition.
“I consider the team at 3M HIS to be thought leaders when it comes to automating key revenue management processes,” said Tom Zauli, SVP and General Manager of SOFTRAX. “Where many companies have fallen back to spreadsheets, and reliance on manual controls to meet current and new complexity challenges, 3M HIS has focused on proper operationalization of these needs via acquisition of robust, integrated point solutions to augment their backbone ERP system. This places the company at the top in terms of financial controls, minimization of risk and optimization of efficiencies in the back office.”
From 3M HIS:
“SOFTRAX has been a great partner as 3M HIS evolves and grows,” said John Mathison, VP of Operations, 3M HIS. “The SOFTRAX suite of products is uniquely positioned to offer the flexibility to handle the various forms of complex billing and revenue recognition we require. It drives our contract renewal process, which protects our revenue base and helps to manage all in-term contract adjustments and new business. SOFTRAX helps us maintain our controls at a system level, keep close times short and avoid a need to scale human resources as our business has grown. We look forward to evaluating the new platform to be released at the end of 2021.”
SOFTRAX provides the only complete revenue management solution that combines enterprise-level billing and revenue recognition capabilities in a multi-tenant cloud-based tool. Independent modules seamlessly integrate with each other and existing core systems to deliver enterprise-level functionality that streamlines the entire revenue management process and advance an organization’s path toward continuous without the need for large platform customization or replacement.
We would greatly appreciate an opportunity to help your company and you reach full revenue
automation. Please contact SOFTRAX today at email@example.com, or 972.715.4028.