They say, “Your business processes are like piano cords. Right patterns make melody, while wrong ones take you down”.
Process mining is an innovative technique that aims to uncover the hidden realities of business processes by analyzing event logs. This article explores the reasons for the existence of this technology and highlights its significance for both small and larger organizations.
We delve into the notion that business-process-mining is not a one-off process but rather a continuous endeavor that enables transparency, identifies gaps, facilitates monitoring, and enhances reporting.
By connecting their database event logs directly to the platform, organizations can establish an ongoing framework that yields valuable insights and drives operational improvements. Let’s understand how you can mine processes for your organization, identify the types of data to gather, and the benefits you can achieve in the short and long term. We also discuss the key stakeholders involved in the process, the average project length based on complexity and the methods for identifying target processes.
What on earth is Process Mining?
In the vast realm of business operations, every organization aspires to optimize its processes to enhance efficiency and effectiveness. However, the complexity and interdependencies of these processes often make it difficult to pinpoint bottlenecks, identify areas for improvement, and ensure smooth operations. Thus, business-process-mining emerges as a powerful tool that uncovers the true nature of processes by leveraging event logs and data analytics.
The Essence
It is more than a mere investigation; it is an ongoing endeavor that establishes a continuous loop of process improvement. Once organizations start extracting event logs from their systems, these logs can be connected with relational databases to create a real-time, transparent view of their processes. Continuous-process-mining benefits organizations with the proactive identification of gaps, monitoring of performance metrics, and timely reporting, thereby fostering a culture of data-driven decision-making.
The Initiatiation
To embark on the mining journey, organizations need to gather either structured or unstructured processes or both. Structured processes are the low-hanging fruits in process mining whereas unones need pre-processing before mining. We need to extract transactional records, and Key Performance Indicators (KPIs) from such processes before turning those into event logs. By amalgamating these diverse data sources, organizations can obtain a comprehensive understanding of their processes and unearth valuable insights.
Short and Long-Term Returns on Investment
The adoption brings immediate benefits to organizations, such as improved process efficiency, reduced costs, and enhanced customer satisfaction. Short-term Returns On Investment (ROI) include quick wins achieved through the identification and elimination of bottlenecks. However, the long-term ROI are far more significant, as it enables organizations to foster a culture of continuous improvement and achieve sustainable operational excellence.
Who are the Stakeholders ?
Successful implementation requires the involvement of multiple stakeholders within an organization. These stakeholders may include process owners, IT departments, data analysts, subject matter experts, and executive management. Collaboration among these individuals is essential to ensure the smooth execution of such projects and the realization of their full potential.
Project Length and Complexity
The duration of such projects vary depending on the complexity of the targeted processes, the volume and quality of available data, and the organization’s readiness for change. Smaller organizations with simpler processes may complete projects in a matter of weeks, while larger enterprises with intricate processes may require several months or more. Proper scoping and project management play a crucial role in delivering successful outcomes.
Do you know: Persistent Systems provide a transparent process-mining project evaluation tool to all our customers? Talk to us to get a fairer understanding of your process mining investments.
Identifying Target Process Models
One of the most important steps in this journey is driving intelligence from mining analytics. Mining thousands of event logs can extract a wide range of statistical output with multiple attributes with potential impact. Organizations should rely on experienced teams to display the right picture to stakeholders and suggest target models with maximum efficiencies.
Process mining is like having a Sherlock Holmes for your operations, solving the mysteries of inefficiency. And every Sherlock needs a John 😉.
Persistent Benefits
Just like every new undertaking, Businesses often look for low-hanging fruits. Areas where they can get maximum value.
If you are one of them, Persistent can help you get the following benefits within your organization, your business unit or department.
- Cost Savings: Persistent’s Intelligent Automation experts enable organizations to identify and eliminate inefficiencies, bottlenecks, and non-value-added activities within their processes. By streamlining operations and reducing waste, organizations can achieve significant cost savings. For medium to large enterprises, implementing such projects can realize cost savings of several hundred thousand dollars or more annually.
- Improved Productivity: We provide insights into how work is performed and highlight opportunities for optimization. By identifying and addressing process inefficiencies, organizations can enhance productivity and achieve higher output with the same or fewer resources. Increased productivity can result in substantial financial gains and additional value generated. Check out Persistent case studies across the globe to know more.
- Enhanced Customer Satisfaction: Organizations can identify areas where customer experience can be improved by analyzing process data and uncovering customer touchpoints. It helps streamline customer interactions, reducing response times and ensuring smooth end-to-end experiences. Higher customer satisfaction leads to increased customer loyalty, retention, and, ultimately, higher revenues.
- Fraud Detection and Prevention: Persistent also helps organizations identify patterns and anomalies in transactional data to detect and prevent fraudulent activities. By leveraging such techniques, we can help proactively monitor and analyze data to identify potential fraud risks, resulting in significant financial savings and preserving the organization’s reputation.
- Compliance and Risk Management: We also assist organizations in ensuring compliance with regulatory requirements and internal controls. By analyzing process data, organizations can identify potential compliance gaps, assess risks, and implement corrective measures. Effective compliance and risk management not only mitigate potential financial losses due to penalties or legal issues but also enhance the organization’s reputation and trustworthiness.
“It is important to note that the actual ROI will vary based on the organization’s specific circumstances, the complexity of processes, and the successful implementation of process improvements. The monetary value of these returns will depend on factors such as industry, scale of operations, and the extent of process optimization achieved.”
Conclusion
Process mining offers organizations a transformative path toward operational excellence, providing transparency, insights, and continuous improvement opportunities. By gathering data, and involving the right stakeholders, organizations can embark on a journey of process optimization that yields both short and long-term returns on investment. The true potential lies in its ability to unravel the hidden pathways of organizational efficiency, leading to enhanced competitiveness and success in the ever-evolving business landscape.
Persistent Systems has been a transformative partner to many of our customers in their process mining journey. Reach out to us today to learn more.
