Why do organizations struggle despite great process model, data analytics, machine learning & digitization- complex processes, bottlenecks, failing processes, deviations?
Two problems, that are responsible for the fact that process management and improvement is, among many companies, a back-burner issue at the moment.
- One problem involves the creation of “current state” processes — how a business process is being performed today. Organizations are primarily interested in an improved “to be” process, so often they have little interest in exploring “as is,” or how the process is currently performed. As a result, some companies tend to either skip current process analysis altogether, adopt shortcuts to it, or pay consultants a lot of money to analyse the “as is” process.
Companies that adopt an incremental improvement method, tend to spend too much time on analysing the “as-is.” In addition, their current process analysis is based on interviews and sticky notes, which executives regard as overly subjective and treat with justifiable scepticism.
- The problem with is the lack of connections between business processes and an organization’s enterprise information systems. Some systems are process-oriented in the sense that they support processes, but there is no easy way to understand how the process is being executed from the information system.
In classical data mining, people typically do not look at processes. Especially not end to end processes. Processes are the heart of every business and crucial for success. Organizations always have a clear idea of what its own processes should ideally look like. Process mining provides much information about how processes actually work.
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Is all about making our processes more efficient may not require huge capital spend on technology.
- Expenditure saving and rationalisation.
- No guess work in the reality of how the process is actually working.
- Existing data (using logs) will show the reality.
VALUE PROPOSITION OF USING PROCESS MINING
Process Mining is already popular among audit, banking, and insurance companies. This gives a proper understanding of the trends. The technology helps to reduce time spent on audits decreasing it by 50%. With all the attention process mining gets today, and the value process mining brings, it is destined to become a must-have tool for organizations. Organizations are paying more and more attention to this solution, employing and using process mining solutions as a competitive advantage over those that haven’t discovered the approach yet. The solution reduces cost by almost 50% making it easier to use. Fortunately, process mining is applicable for any type of company or industry from Retail, FMCG, Manufacturing, and Healthcare to government institutions. The process can be based on data from your ERP systems, workflow tool or any other databases, focusing on your main processes (e.g. production process) or support processes (Order to cash, Purchase to Pay, Service Management.
Customer journey mapping is a technique that enables professionals to better understand customers’ experiences when they interact with the steps involved in a service. These interactions, called touch points, are increasing and are used by customers in erratic ways. Hence, being able to use customer journey maps is becoming increasingly important. Process mining provides a set of tools that support multiple ways to discover, monitor, and improve processes based on real event logs. Its main idea is to provide a link between process models (e.g., BPMN) and the “reality” captured process. Customer journey analysis is extremely useful in other to understand and improve customer service experience for users. Analysing how customers navigate their journey is critical to access their needs. With process mining, organizations can see all touchpoints customers come in contact with, and allow organizations to have an overall idea of how customers behave. To also compare this behaviour with what they expect and make sure the user experience is more personalized and unique. Process mining fills the gap between the data driven method to build customer journey maps and analyse the customer journey by creating a repeatable framework to analyse the online customer journey on a website or web application.
BENEFITS OF PROCESS MINING
Using process mining, you will be able to control and continuously improve your business processes. Traditionally, to understand a process, people need to map out their processes manually, which is difficult and imprecise. Especially problem areas are not captured well enough in such a manual approach. Because process mining is based on objective IT records, the discovered process flows show a much more accurate picture of what is actually happening. Furthermore, because process mining correlates and visualizes data from a process perspective, it compliments classical dashboards by in-depth process analysis capabilities that are necessary for root cause analyses. In contrast to pre-configured reports, process mining allows for exploring the real processes (and getting new ideas for improvement opportunities) in a fact-based manner without upfront assumptions. Some of your benefits of using process mining are:
- Understanding how the process is actually performed (complete overview, objective picture, more focused and evidence-based discussions).
- Improving the process flow by knowing the actual flows, frequencies, and delays in the process (decreasing variance and increasing efficiency; understanding where the bottlenecks are).
- Saving costs by improving the productivity of employees and reducing non-added-value activities.
- Decreasing risks by better role authorizations.
- Improving the quality of executed activities by identifying which cases were sent back (reducing overhead and improving the service level target for the overall process completion time).
- Controlling outsourced processes to understand what is happening there.
- Harmonizing processes in different regions (understand how people work in different ways to see what the best practices are and to align processes).
- Improving the quality and increasing the efficiency of auditing. Verify that prescribed processes are followed.
- Verifying that implemented process changes have had the expected effect by comparing the old process to the new process (objective comparison to see whether new is actually better, avoid that people slip back into old patterns).