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Best Practices

When is Process Mining Strategically Important?

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Here at Minit we believe that companies need to analyze and improve their processes all the time. Just like people, organizations need to regular health check-ups to maintain fitness.

That being said, Process Mining and Process Improvement programs that do not expressly target competitive advantage are often doomed to fail. Moreover, while it may sound like common knowledge, it happens again and again. Process Improvement zealots will push for continual improvement of processes for its own sake. Such an indiscriminate approach leads to improving the wrong activities and ignoring the ones that matter.

20 Ways to Benefit from Process Mining

Wal-Mart, FedEx, McDonald’s and other companies that compete by providing customers consistent, reliable, and low-cost products and services need to improve a wide range of operational processes continually.

However, in many companies, most processes don’t need continual tinkering. Companies like Google, Apple, and Nike — which compete by offering the latest and most exceptional products and services — don’t need to focus on excellence in every process; for them, the processes they need to focus on to achieve or maintain industry leadership are product development and production.

However, focusing solely on core processes is not the answer to selecting the right candidates for Process Mining and Process Improvement. Leadership changes, economic cycles, mergers and acquisitions, shareholder pressures, reorganizations and changes to incentive systems affect strategic priorities.

With all these factors impinging on which processes matter most, advocates must help top management determine where to focus attention. As these initiatives need to rise above other demands on senior executives’ time, its champions must clearly show why and where it’s strategically important. They need to translate the firm’s competitive strategy (i.e., why customers buy its offerings and not the competition’s) into a process improvement strategy — what few activities out of hundreds or even thousands will mean the difference between significant revenue and profit gained or lost.

 

Objective

Timeframe

Relevance

Process Mining candidates

Earnings

Short-term

Medium

Cost reduction; Customer service/retention

Earnings

Long-term

High

Productivity improvement; Customer service/retention/big company

Growth

Long-term

High

New infrastructure platforms; Integration (one company); Merger and acquisition integration; Customer service/retention.

 

Strategic Ways to Utilize Process Mining


Faster and better decisions through a process transparency

Process Mining is crucial, particularly if a company is implementing a new technology platform or merging two organizations. Actionable insights into complex processes help managers reimagine their internal operations and business strategies. 

Optimizing expense structure and controlling costs

When a dramatic economic downturn forces a company to cut costs quickly, Process Mining is the tool to identify where the cuts will have the least negative impact on the organization’s bottom-line.

While it’s tempting to reduce all department budgets by the same percent, this is one of the most significant mistakes a firm can make. To get things right, companies need to drill into the end-to-end cost structures and trim expenses that don’t differentiate the business and invest in capabilities that do. 

Monitor real performance and compare versus benchmarks

Determine if performance is aligned with appropriate benchmarks. Quantify improvement by comparing performance between regions, branches, departments, teams or time periods. Uncover best-performing processes to learn from.

Identify sources of additional revenue

Process Mining facilitates data-based decisions, speeding up decision-making. Organizations can use Process Mining to optimize Go-To-Market strategies, determine required capabilities, develop a plan to build a portfolio and seize market opportunities. 

Auditing, Compliance, Fraud prevention

Auditing of executed processes will identify fraudulent and abusive behavior that may lead to severe problems. Process Mining can analyze complex processes from pooled data, strengthening your risk management environment, and implementing controls more effectively.

To learn more about how Process Mining technology like Minit applies to your business needs, speak to our team. We can help you build a proof of concept and understand specific elements of Process Mining in order to achieve your business goals.

Simona Parnicka Marketing Manager at Minit

15. 10. 2018