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Best Practices

Process Mining based Innovation of Business Processes

Inov-1

In today’s competitive market businesses are adopting process management approaches to ensure their survival and growth. Approaches like business process re-engineering (BPR) and Six Sigma are contributing to the improvement of performance. However, the possibility of failure in BPR and process innovation initiatives is as high as 60-70%.

Most process management approaches include traditional interviews within the business process analysis (BPA). This approach requires a lot of time.

The observation-dependent business process analysis yields subjective and incomplete results and does not provide an accurate method to measure the improvement.

A way to overcome limitations of conventional BPA is Process Mining software capable of analyzing massive amounts of process data from the company’s information systems. Processing Mining helps leaders gain insights into business processes in a fast and objective manner by automatically analyzing data and visualizing actual process flows.

Guide to your first Process Mining project

How Process Mining facilitates Innovation of Processes

As a process management technique Process Mining technology considerably reduces the time and costs needed to understand current processes. As soon as process data is loaded into the software, it will automatically create a fact-based map of the process with performance statistics and metrics. It will highlight bottlenecks and show unwanted deviations from the prescribed flow.

Process Mining software visualizes the process as an interactive map, so it is easy to dive into different process variants, compare statistical information and uncover exceptions, unusual transactions and potential risks in the process. The Business Process Owner and Stakeholders can immediately begin discussing these findings and the "as-is" process by looking at the data in the Process Mining software to determine why the process is handled the way it is. This is the opportunity to verify the different hypothesis, clarify the open questions, validate the findings and uncover improvement points.

Also, the same analysis can be repeated anytime almost without additional costs. This way Process Mining facilitates improvement based on a continued assessment of the effects of changes.

Process Mining is easily scalable throughout the enterprise and creates a happy partnership with modern day agile business – dexterity and quick validation are built in. It’s about taking big data, manipulating it in a way to reveal hidden secrets, making decisions based on given outcomes, and then validating these decisions with further (scalable) data analysis. 

This competency of Process Mining makes a big contribution to solving the problems of conventional BPA. In fact, hundreds of organizations around the globe have experienced beneficial effects such as cost reduction and value innovation through Process Mining.

The improvement of processes through Process Mining can be tackled from two perspectives: performance perspective and compliance perspective, depending on the whether the questions and problems the project is aiming to solve are performance or compliance-centered.

Process mining is in a position to fill a gap between the analysis techniques (e.g., simulation) focusing on a process model without considering real event data and classical data-centric analyses (e.g., data mining).

Different uses of Process Mining

Process Mining analysis can be divided into three types: Process discovery, conformance checking and enhancement of business processes

Process discovery

Process discovery is the most typical technique of process mining. It uncovers a process model which represents the execution of actual processes in the log data even without knowledge of the process model. Through the process discovery technique, the analyst gains insights on how the process is actually carried out and on the interactions among the resources relating to the business operation.

Conformance checking

Conformance checking focuses on comparing and analyzing differences between a pre-defined process model and process behavior recorded in the information system. Through this comparison and analysis, it uncovers the cases which are executed differently from an ideal process model that reflects standards, guidelines, and project policy or discover deviation parts. It is also able to measure the severity of this difference.

Enhancement of business processes

The enhancement of business processes analysis focuses on enhancing the process from different viewpoints. For example, using the time information relating to business operation in the event log, it is able to analyze process performances from the perspective of time or discover a bottleneck point. You can also analyze the effects of certain elements in a decision-making point on the decision of execution paths through analysis on previous cases.

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Simona Parnicka Marketing Manager at Minit

02. 08. 2018