How to Invest in Process Mining Software for Positive ROI
Positive return on investment (ROI) is the end game of any BPM project. Process mining software is a business investment into both an organization's immediate needs (inadequate process performance) and long term vision (process excellence). Understanding how to approach such an investment will help lead to desirable business outcomes.
If you’re reading this article, it means you’ve already built a business case for investing in process mining software and have assembled a team for process mining vendor selection. Now the team is ready to dive into the details of selecting the right process mining software to match business goals and safeguard investment.
Make the most out of your business investment by approaching ROI through the lens of price performance ratio. This means evaluating process mining vendors based on a balance of business needs, willingness to invest, access to scalability, vendor business model, and importantly, power of performance.
Here are the top 4 things to consider when investing in process mining software.
What is the minimum cost of process mining investment?
Not every business has the ability nor desire to throw a million dollars/euros at process mining. Even large corporations or those with solid funding should approach technology investment by way of scalable and measurable means. Understanding the minimum cost of investment from both sides of the vendor/client relationship is a good starting point.
This is why you have someone on your process mining software selection team with a mind for costs. Is there a maximum spend authorized for this type of investment? Do different vendors have different barriers to entry in terms of getting started with process mining? Know your own budget limitations upfront in order to make best use of your time.
Remember, the highest price tag does not equate to the best vendor match.
Is the technology scalable?
Moving on from minimum spend, one must consider scalability of investment. Some investment is fixed and tangible. Consider office furniture — a desk, for example. Perhaps a bulk purchase can bring costs down, but generally, the cost and product is fixed. The desk will not be deconstructed later or built onto in order to fit more people at the same workspace.
Process mining software is different, it’s scalable. Depending on need, different levels of access and licenses can be purchased. Whether your business wants to start small and scale up, or has a big vision for full operational transformation, consider how this technology investment can grow with business needs.
Scalability is strongly connected to the next point for ROI evaluation — business model.
What is the process mining vendor’s business model?
Process mining software, as with most SaaS, is licensed based on a vendor’s defined business model. There may be additional cost components to consider such as consultancy and business analysis, but the core element to examine in terms of ROI is a ‘per user’ vs ‘per process’ business model.
A per user business model means each additional user must pay for access to or use of software. Contrarily, it also means there are no limitations on the number of processes which can be mined under that single user license. This model enables users to freely explore the power of process mining and let process discovery lead to process optimization. If you have a small, dedicated team of process miners and an unfixed or unknown number of processes to be mined, this model is best for your business.
- Unlimited number of processes can be mined under single user license
- Option to discover additional processes without additional investment
- Ability to shift process focus as learnings amass
- Large process mining teams must pay per user access
- Limits simultaneous user access
A per process business model puts limitations on process access rather than user access. This approach might work well for organizations which have a very specific workflow which needs to be mined, and for those with large teams which require individual access to such software.
- Unlimited number of users can access the system simultaneously
- Good for management oversight
- Limits ability for organic process discovery without additional investment
- Agile approach to process discovery is limited by budget
Can the concept be proven before full investment?
Proof of concept is an idea that makes positive ROI nearly foolproof. It’s a try before you buy model which allows you to dip your toes in the pool before plunging into the deep end. Proof of concept in terms of process mining is when a vendor lets you apply their technology to a specific process or subset of data before committing to a complete license purchase.
Check to see which process mining vendors offer a product trial.
How can Minit process mining help deliver positive ROI?
The returns in which a business receives in relation to the investment of money, time and resources defines project success. Our team understands the importance of smart investment and can help solidify favorable returns on your process mining journey. Whether those returns are measured in terms of revenue generated, money saved, supplier relations improved or employee empowerment, Minit can help build your roadmap to process mining success.
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Michal Rosik Chief Product Officer & Product Visionary at Minit
13. 06. 2019