Process Mining is a technology for collecting and analyzing data from business processes. The findings from data analysis can be used to optimize business processes at various points. This can bring companies the following benefits, among others:
- Higher efficiency and productivity
- Increased employee satisfaction
- Lower running costs
- Automation of individual process steps or complete processes
- Improved product quality
The benefits vary depending on the business processes to which Process Mining is applied. In the following sections, we give several examples of how Process Mining techniques can be used in companies.
First of all, we would like to point out that the prerequisites for Process Mining, which we wrote about in the linked blog post, must be met for the technology to be applicable. So, if necessary, read the post to make sure that you meet the conditions for using Process Mining in your company.
Application example: Optimization of ordering processes
Delays are a common problem in ordering processes. Sometimes the fault lies with the shipping department, which does not deliver the ordered goods on time. Sometimes the production of the goods is too slow, or the cause of delays lies in a process upstream of production.
To analyze the causes, the entire ordering process is broken down into its components (i.e. the individual sub-processes) in the Process Mining software. Each process is examined by the software. This could reveal, for example, that products cannot be delivered to customers on time because production is taking too long. Why is this the case? The software finds the answer:
- Individual parts for manufacturing products are always missing. As a result, production comes to a standstill.
- An analysis of the process steps reveals that it takes several days to approve the reordering of production parts.
- The core cause of the delayed delivery process is therefore the unnecessarily long approval process for reordering production parts.
To optimize the process, companies can adapt their internal communication. For example, hierarchies could be flattened or the release of approvals for reordering production parts could be automated.
The variety of possible inefficiencies and errors in ordering and delivery processes is huge. Particularly in view of the modern business environment, which is constantly changing dynamically, companies should also include external influences in the process analysis - such as price changes by suppliers.
Process Mining software, which also incorporates external influences on processes into analyses, helps with this. The only prerequisite for applicability is that the processes must be digitalized.
Solving complex problems in IT systems
There are two types of Process Mining: classic Process Mining and Object-Centric Process Mining (OCPM). In classic Process Mining, only individual processes with a clearly defined beginning and end (end-to-end processes) can be considered. OCPM, on the other hand, is suitable for a holistic view of processes, taking into account, among other things, interrelationships and interfaces between the processes.
When using a Process Mining tool with OCPM, complex problems in IT systems can be uncovered. Imagine the following example: Invoices are often paid a few days late by a company. As a result, some of the company's partners are disgruntled. The company only becomes aware of the problem after using a process mining tool:
- The Process Mining tool determines that, on average, there is a late payment for every fourth invoice.
- One reason for this is the late posting of invoices in the accounting software. But why are invoices posted too late?
- A further analysis of the business processes reveals that the invoice data from the email program used to receive the invoices is incorrectly recorded by the accounting software .
- One reason is incorrect programming of the interface between the e-mail and accounting program.
Process Mining tools with OCPM are a mature technology that – as you could see from the example – also detect errors at the interfaces between different applications. It is essential to use process mining software with advanced technology, especially for complex problems. It enables a holistic analysis of business processes and eliminates errors directly at the root.
Automation of individual steps and tasks
A process comprises several steps or tasks. It may not be possible to automate all steps. However, experience shows that there is at least a small potential for automation in most business processes. Automation often reduces errors during process execution. This is because most errors are made by those carrying out tasks manually.
Task mining enables the collection of user interaction data on desktops. When evaluating user activities, automation options are revealed. A technology known as process discovery is used for this purpose. There is software on the market that combines Process Mining and Task Mining into a powerful overall solution .
Considering the example above, software with Process Mining and Task Mining would recognize that the release of approvals for reordering product parts can be automated.
For example, companies could then use a program that compares the inventory data in the warehouse with the requested reorder. The program would recognize that the requested product parts are actually missing in the warehouse and finally release the order.
Use of Process Mining in the compliance area
Companies are bound by legal regulations in various areas. Process Mining can support compliance with these regulations and thus help to ensure compliance. For example, the way in which customer data is handled as part of business processes can be compared with legal regulations in the case of a corresponding Process Mining solution. Process Mining software with integrated task mining makes it possible to evaluate whether a company's employees are acting in accordance with regulations in their individual work tasks. For example, the software could detect that employees have access to data that they are not actually authorized to view. To optimize this, the company would redefine the access rights and rectify the error.
Areas of application for Process Mining
The application examples show how Process Mining can be used to identify inefficiencies and improve the process landscape. Following the detailed insight into the application examples and functions of Process Mining tools, we would like to conclude by listing some areas of application for Process Mining:
- Financing decision processes
- Procurement processes
- Quality management
- Administration
- Service processes
- Production planning
- Resource management (e.g. with enterprise resource planning systems)
- System maintenance
- Registration of people
- Issuing authorizations
- System migration from one IT system to another
- Checking compliance with legal regulations
- Improving feedback to employees through transparent insight into data
In contrast to Data Mining, Process Mining enables dynamic analyses of changing processes. It therefore expands the scope for improvement in companies and promotes the development of high-quality business process models.