Process Mining, the pounding heart of the intelligent enterprise
Process Mining provides you with an objective and quick diagnosis on the actual execution of your business processes by extracting the necessary information from your IT systems. In the past this was a tedious task based upon lots of interviews and in more than 98% a misrepresentation of reality. Process Mining removes this unreliability of this tedious task and provides so much more untapped potential and all of this in Power BI to give you all the flexibility to do a 360 analysis of your processes. What Process Mining could mean for you? Just keep on reading.
Interested in what this untapped potential could mean for you? Process Mining has a lot of benefits. Just naming a few clear ones: Eliminating unnecessary steps, detecting bottlenecks, shorter lead times, enabling process automation, compliance benefits & fraud detection, … Typically these add to the bottom line by reducing costs, improved customer experience & compliancy.
The top 3 gains we typically see in Process Mining projects are:
- Reduced costs by eliminating loops, rework and unnecessary steps
- Improving throughput time of a process
- Process standardization which leads to easier RPA or automation and also easier software migrations. Think of the importance of having your processed exactly mapped out before you start selecting a new ERP.
That is why we often experience Process Mining as the pounding heart of the intelligent enterprise. Process Mining has the ability to show you the full process reality over your organization. By doing so you have all the power at your fingertips to make changes in your processes where your organization would benefit from.
You are probably wondering, how does this work?
Let us show you.
As your organization executes their business model which is translated into processes this leaves a digital trace. This digital traces are the transactions in your operational systems.
Every transaction in your operational system leaves a digital trace. The combination of these traces is what we call an event log. Too fast? Let us show you what an event log looks like in the end after we have extracted it from your operational systems.
Basically it needs at least 3 important fields to be able to visualize your processes:
- Case Id: This symbolizes 1 specific process execution from start to finish. F.e. a paid invoice grouped with all it’s preceeding steps like Goods Receipt, Purchase Order & Purchase Request.
- Activity Name: This are typically the names of your different process steps. F.e. Purchase Order Creation, Change PO price, Goods Receipt, … So every name of a step in the process.
- Timestamp: This is the easiest part. This is just the recorded time of the activity. This makes it able to calculate the duration between the execution of the different activities
Based upon this event log we build Process Mining Insights. Some typical scenario’s here are:
- Root Cause Analysis: Do you want to know the root cause of certain bottlenecks in your processes?
- Benchmarking: Are you interested why your plant in Italy is more productive than your plant in Germany?
- Automation: Do you want to know which (sub-) processes are prime candidates to automate?
- And many more:
Here is just one straight-forward example of a process tree that is automatically generated from the event log.
Why you should invest in Process Mining now?
Process Mining is a domain that already exists already many years. However it is only recently that it stepped out of the shadows of the Academic world and is made practical and pragmatical to prove instant business value. Now this becomes available with a low entry barrier in your favorite reporting tool Power BI toghether with PAFnow’s highly specialized data visualisations.
Another reason we see why Process Mining should be a top priority is because of the hyper-speed of digitalization we are in. Let us explain. Having a 100% accurate process overview enhances your agility as a business. Examples here are: Robot Process Automation, more accurate vendor selection for new applications that fully aligns with your processes, next-step predition based on previous process executions, … These are more and more becoming the game-changers to transcend your competitors.