Process Mining
Process Mining
What Process Mining Is
Process Mining is a data-driven process analysis technique that objectively analyzes and monitors business processes based on digital “event logs.” These log files are automatically generated by IT systems that record the execution of processes (such as ERP, CRM, or HR systems). By analyzing this data, we can see how processes run in daily practice rather than how people think they do.
What The Importance Is
Business performance relies on the true behavior of your daily operations. To manage and enhance this performance effectively, you need clear, data-driven insights into actual workflow execution. Traditional methods—such as Brown Paper process mapping or standard BPM tools—often offer a partial or idealized view of how processes should operate. In contrast, Process Mining provides a comprehensive, evidence-based perspective, illustrating exactly how tasks unfold within your organization. This realistic visualization empowers companies to identify inefficiencies, promote workflow optimization, and integrate advanced RPA or IDP solutions for sustainable improvements. By leveraging the power of Process Mining, businesses gain a competitive advantage, foster operational excellence, and confidently advance in their digital transformation journey.
What Process Mining Can Do
Reveal the As-Is Process
● Process Mining visualizes the as-is processes as they occur in your day-to-day operations. No guessing — just fact-based insights.● It identifies bottlenecks, rework loops, process variants, process lead times, social networks, and more.● Process Mining reveals the as-is process at any level of aggregation, from the entire process down to individual cases moving through it.
Improve Compliance & Reduce Risk
● Process Mining ensures compliance, such as enforcing the separation of duties, to help prevent fines and potential fraud.● It also identifies how well the actual (de facto) process aligns with the intended process and highlights deviations, ensuring adherence to policies.● As a powerful auditing tool, Process Mining helps assess process conformance and compliance effectively.
Enhance Resource Allocation
● Process Mining identifies workload distribution across roles and maps social networks within the organization.● These insights help determine necessary actions for a healthy and efficient organization, such as targeted training, realigning activities and roles, redesigning processes, balancing the number of people in roles, and optimizing Full-Time Equivalent (FTE) resources.
Better, More Predictable Performance
● Process Mining measures actual process performance in real time.● When the right KPIs are selected, Process Mining provides early warnings based on events occurring early in the process.● By analyzing a KPI’s performance gap, Process Mining pinpoints the exact stage in the process where the gap originates.
Facilitate Continuous Improvement
● Process Mining provides insights to continuously identify and eliminate bottlenecks in the process.● It also reveals the impact of actions taken, helping to assess their effectiveness.● Process Mining offers valuable insights for handling customer complaints efficiently and enhancing customer satisfaction.
Accelerate Digital Transformation
● Process Mining helps identify the best opportunities for automation using Robotic Process Automation (RPA) and IDP, including providing input for the business case.● It offers insights to effectively streamline ("lean out") processes and better align them with company strategy.● Process Mining delivers real-time process insights and can transmit data to RPA software robots, enabling them to execute necessary actions. As a result, business processes become significantly faster, more reliable, compliant, and cost-effective.
How to apply Process Mining
Process Mining can be applied in two ways: either ad-hoc as an analysis tool or as a permanent installation.
Ad-hoc
Process Mining is utilized on an ad-hoc basis to identify performance bottlenecks and compliance issues, enabling the formulation of targeted improvement actions. For example, analyzing business processes at the end of each quarter in conjunction with business results to identify areas for improvement to drive actual performance to target. Another example is employing Process Mining to identify opportunities for RPA and IDP.
Permanent
A permanent installation of Process Mining enables continuous business process monitoring. Unlike conventional Business Intelligence (BI) tools, Process Mining does not generate static Key Performance Indicators (KPIs). Instead, it derives KPIs directly from the processes themselves. Rather than merely highlighting the gap between actual and target performance, Process Mining pinpoints the exact areas within the business process where the gap originates. For dashboarding, users can either leverage the built-in dashboard of the Process Mining tool or integrate it with external BI platforms.
What Process Mining Delivers: Key Examples
Shorter Order Cycle Time and Better Asset Utilization
● Real-Time Order Control: Prevent orders from starting too early or too late, reducing idle time and bottlenecks.● Accurate Raw Material Management: Verify availability before production begins to minimize disruptions and delays.● Quick Adjustments via Early Warnings: Leverage Process Mining insights for timely planning tweaks when deviations occur.● Improved Collaboration: Strengthen supplier and customer relationships by staying on schedule and communicating effectively.
Higher Marging &
Lower Working Capital
● Enhanced Acivity-Based Costing: Process Mining provides the insight to fully understand what the real cost of a product or service is and how to lower it.● Optimized Inventory Profile: Eliminate overstocking or shortages by monitoring real-time stock levels, lowering inventory costs, and boosting workflow optimization.● Optimized Cashflow: Send invoices promptly and follow up effectively to minimize the Days of Sales Outstanding (DSO). Pay Suppliers punctual to maximize the Days of Purchase Outstanding whilst strengthening supplier relationships.
Continuous Improvement in Action
● Real-Time Optimization: Use Process Mining insights to identify and address bottlenecks, driving ongoing workflow optimization.● Better Conformance & Compliance: Compare actual process data against regulations to maintain high standards and minimize risk.● RPA Readiness & Digital Operating Model: Pinpoint automation opportunities for Robotic Process Automation (RPA) and streamline digital initiatives.● Smoother ERP Implementations: Leverage process insights to reduce disruptions and accelerate digital transformation when launching new ERP systems.