WHAT IS PROCESS MINING?

Process mining is a technique designed to discover, monitor, and improve real processes by extracting readily available knowledge from the event logs of information systems (as stated in Gartner report).

PROCESS MINING MARKET

Process Mining market had a steady growth in the last 5 years and expected to grow to $2.3 billion by 2025. The adoption can be majorly seen in Manufacturing and CPG sectors, while Banking and Healthcare industries are quickly catching up with the technology.

(Snippets shows the Celonis buyer Industry and Geography taken from Everest Peak Matrix Assessment Report 2023)

REASON FOR INCREASING ADOPTION

Increased digitization: With the availability of large amount of data and the growing need for digitization, organizations are seeking ways to effectively utilize this data to gather business insights.

Compliance & Risk management:Adhering to specific guidelines and regulations are very critical in regulated sectors, thereby the need for Process mining tools that can spot compliance issues and any deviations from expected processes.

Digital transformation Initiatives:Organizations are undergoing digital transformation drives that will help to streamline their operations, cut costs and enhance customer & employee experience. Process Mining plays a vital role by providing insights into the current state of the process and guiding the design and implementation of optimized process.

Increasing awareness among leaders:The awareness among business leaders on process mining as a useful technique for performance measurement has been growing. As more and more success stories and case studies emerge, organizations are recognizing the value of process mining and are willing to invest.

CHOOSING THE RIGHT PROCESS MINING TOOL

Though there are several vendors in the process mining space, there is one name that stands above the rest—Celonis. Celonis is the global leader in Process Mining, trusted by thousands of organizations worldwide.

Celonis EMS

The Celonis EMS capabilities are a combination of process intelligence and automation capabilities that help enterprises to find and capture business values by improving the performance of their core business processes. The EMS integrates in near real time with various sources with its built-in data integration capabilities. Celonis recently launched its advanced object centric process mining capability of Process sphere that captures interactions between multiple objects (eg., sales order and purchase order). The EMS also allows user to take targeted action through its action flow capabilities.

USECASES THAT WILL BE A GOOD START FOR PROCESS MINING PROGRAM

• Accounts Payable Process: The AP process involves the management of invoices, payments, and supplier relationships. Process mining enables organizations to optimize KPIs by:
• Streamlining Invoice Processing Time: By analyzing process flows, organizations can identify bottlenecks and high manual touchpoints where automation can help, reducing the time required to process invoices.
• Improving Invoice Accuracy: Process mining provides visibility into the invoice validation and approval process, allowing organizations to detect errors and implement corrective measures, leading to improved accuracy.
• Enhancing On-time Payments: Process mining helps identify delays in payment processing, quantify missed discounts and penalties and enable organizations to streamline workflows and ensure timely payments, improving supplier relationships.

Usecase: One of the largest CPG firms deployed process mining and optimized the AP process by identifying payment delays and missed cash discounts resulting in $27M savings in working capital.

• Accounts Receivables: Efficient management of the AR process is crucial for maintaining healthy cash flow. Process mining can enhance this process by uncovering inefficiencies, optimizing collections, and reducing payment delays from customers. Key KPIs for optimizing the Accounts Receivables process includes,
• Reducing Days Sales Outstanding (DSO): By analyzing the collections process, process mining helps identify delays and bottlenecks, allowing organizations to streamline activities and shorten the collection cycle.
• Enhancing Collection Efficiency: Process mining provides insights into the collections process, enabling organizations to prioritize high-value customers and implement targeted strategies for improved collection effectiveness.
• Accelerating Dispute Resolution: Process mining helps identify common sources of disputes, enabling organizations to implement proactive measures and streamline dispute resolution processes, reducing resolution time.

Usecase: A US based pharmaceutical company identified savings worth $29M in cash collection. They visualized the E2E accounts receivable process and identified gaps and inefficiencies that cause delays in collection.

• Order Management:The Order Management process encompasses the entire lifecycle of customer orders, from order placement to fulfillment and delivery. Key KPIs for Order Management process optimization include,
• Shortening Order Cycle Time:By analyzing process flows, organizations can identify unnecessary steps, streamline order processing, and reduce cycle time from placement to fulfillment.
• Improving Order Accuracy: Process mining provides visibility into the order fulfillment process, allowing organizations to detect errors and implement quality checks, leading to increased order accuracy.
• Enhancing Order Fill Rate:Process mining helps identify bottlenecks in order fulfillment, enabling organizations to optimize inventory management and logistics to improve order fill rates.

Usecase:A global appliance manufacturer deployed Celonis process mining and yielded 20 % Reduction in cancellations through improved click & reserve.

• Procurement:The Procurement process involves sourcing goods and services to meet organizational needs.
• Streamlining Purchase Order Cycle Time: By analyzing procurement workflows, organizations can identify process inefficiencies, streamline approval processes, and reduce the time required for purchase order creation and approval.
• Enhancing Supplier Performance: Process mining enables organizations to assess supplier performance by analyzing data related to delivery times, quality, and pricing, facilitating informed decision-making and improved supplier management.
• Maximizing Cost Savings:Process mining provides visibility into the procurement process, enabling organizations to identify cost-saving opportunities such as negotiating better prices, optimizing supplier selection, and reducing maverick spending.

Usecase:Telecom provider saved $13M by increasing the no-touch rate up to 86%. Using Celonis, customers identified the activities with high manual touch rate and low exceptions that are suitable for automation. And, the Non-PO were categorized and moved to catalogue PO.

• IT Service Management (ITSM): The ITSM process involves the management of IT services, incidents, requests, and problem resolution. Process mining helps optimize KPIs within the ITSM process by:
• Reducing Incident Resolution Time: By analyzing incident management workflows, process mining identifies bottlenecks and inefficiencies, allowing organizations to streamline incident resolution processes and shorten resolution times.
• Improving First Call Resolution Rate: Process mining provides insights into the ITSM process, enabling organizations to identify areas for improvement, enhance knowledge management systems, and empower front-line support teams to resolve incidents more effectively on the first call.
• Enhancing Change Success Rate: By analyzing change management processes, process mining helps organizations identify factors affecting the success rate of IT changes, leading to better change management practices.

Usecase:A US based retailer leveraged process mining in their customer operations and optimized customer service, ITSM and onboarding process. This resulted in $30M /yearly savings by improving first time right KPI and enhanced the customer experience.

CONCLUSION

Process mining empowers organizations to achieve operational excellence by optimizing key business processes. Embracing process mining as a strategic tool enables organizations to drive continuous improvement, reduce costs, and achieve sustainable success in today's dynamic business landscape. By leveraging process mining insights and focusing on specific KPIs, organizations can streamline workflows, enhance productivity, and deliver superior customer experiences.