Process Mining: Let there be light

Who created a process, when, why and for what? According to which scheme does it run? Are there process variants that are controlled by different parameters?

Many companies are unable to answer these questions and optimize their operational processes - with the result that they can neither increase their transparency nor reduce costs and benefit from competitive advantages. Especially for companies in the finance environment, transparent, up-to-date documentation is mandatory.

Only in this way can auditors or audit departments identify irregularities and violations of compliance guidelines in processes and prove that companies comply with normative requirements such as the Minimum Requirements for Risk Management (MaRisk) of BaFin (German Federal Financial Supervisory Authority).

Make processes visible

Process mining provides insight. It makes the processes hidden in technology visible. As a component of business process management (BPM), it enables processes to be reconstructed and evaluated from their digital traces in ERP, CRM or proprietary systems.

Many companies do not know how many digital processes there are, how they proceed chronologically, how they are interrelated, which process variant how many users go through how often - and what this costs.

The starting point of process mining is a collection of the process steps. Statistical models can then be used to determine the core process, which reveals deviations as the basis for all process flows.

Particularly good in SAP

One system that enables particularly good analysis of digital traces is SAP ERP. In use in many companies for years, if not decades, a wide variety of users have adapted processes relevant to them over time, creating countless process variants.

As a result, no one uses the original standard process anymore - if it is still known at all. Operational processes in the SD, CRM, FICO, PP and MM modules can be examined in a targeted manner using process mining:

Since every transaction, no matter how small, is optimally documented, companies can obtain meaningful results on the basis of which they can subsequently adjust or optimize the corresponding processes - for a gain in efficiency.

Create purchase requisition in SAP

The standard process involves only a few steps: Enter the purchase requisition in the SAP ERP system, send it to the process release manager, have him check it and release it. In reality, however, the process can be quite different:

Employee A sends an e-mail to Employee B with the request to create the process of a purchase requisition in SAP. Employee B then collects relevant information in an Excel list and stores it on the server - already a deviation from the defined standard process.

Since employee B is not allowed to follow the work order without approval from A's supervisor, he emails the boss to ask if he can initiate the order - another deviation.

In response to the supervisor's approval, employee B sends the purchase order to the supplier without first creating a purchase requisition in SAP - after all, time is of the essence.

As a result, neither a purchase requisition nor a release is noted in the ERP system. How this happened - and why - can no longer be traced in retrospect.

Analyze purchasing process in SAP

In addition, process mining can also provide information about the status quo of the purchasing process and possible variants, for example. By collecting relevant key figures, deviations from the defined standard process can be uncovered:

Which suppliers go through which process variants? In what time? How frequently? For example, it may turn out that only one supplier deviates from the main process strand.

Taking into account key figures such as quantities, time and costs, it may then be necessary to part with it because the deviating process causes too high costs, or to adapt the process for all suppliers because the variant is much more efficient.

Examine sales process in SAP

Process mining can also provide valuable insights in customer relationship management. Salespeople document various steps of new customer acquisition, such as evaluating sales opportunities, making appointments, conducting appointments, etc., in the SAP CRM module.

At lead level, it is then possible to find out exactly how long it takes to acquire or close a lead, what it costs to acquire a new customer, how long it takes and how many parallel process branches there are.

If you look at the costs per lead, it could become apparent that in a certain lead group the costs are too high and the margins too low. In this case, one measure would be to no longer deal with this target group in the future.

Visualize and model

Process visualization brings light into the darkness. If processes are represented in dashboards, diagrams, tables and tacho elements, companies can easily understand how processes and their variants run and how they are linked.

On the basis of visualization, it is possible to model individual processes: Process flows are transferred to a standardized model that contains process information such as inputs and outputs, roles involved, documents and IT systems.

Extensive analyses and simulations then allow processes to be evaluated and optimization potential to be uncovered. If it is comprehensible how an overall process runs with all variants, companies can reduce modifications and define an efficient process.

In addition to process visualization, the process mining solution should also support process release, taking governance requirements into account. This allows employees to be assigned roles such as process owner, approver or reviewer and to establish an automated release.

If the data is cleanly versioned and stored centrally, complete documentation is ensured. To inform employees accordingly, the tool should support simple publishing and provide information on risks, key figures and IT systems. In addition, employees should be able to participate in the process design.

Evaluate in the cloud

In order to create process documentation automatically, an algorithm is needed that feeds process-relevant information from all IT systems and applications into the BPM tool.

It can be seamlessly connected to existing systems via connectors to SAP ERP, Microsoft Dynamics CRM and proprietary IT solutions. This allows information to be compared in a targeted manner, prepared according to requirements, and used profitably.

Ideally, process mining software is an integral part of a BPM system (BPMS) that supports process planning, execution, analysis and optimization. A monitoring component should allow key figures to be recorded, monitored and evaluated.

Maximum flexibility is ensured if the BPM system can be operated in the cloud and adapted as needed. This allows users to respond to cyclical load peaks with individual resource management.

Eyes open when choosing a provider

In addition to the scope of functions, the IT service provider is also important. Ideally, it offers a BPM suite with process mining as a subcomponent. A large, international IT system integrator with experience in all industries has the necessary manpower and experience for complex BPM projects.

Ideally, it offers companies state-of-the-art technology and provides them with competent, experienced process consultants who support them in technical matters such as setup, integration and commissioning, as well as the extraction of data from IT systems - for targeted process optimization and effective change management.

If the service provider provides valuable assistance beyond the BPM project, companies can become more competitive, more innovative and thus more successful in the long term thanks to process mining.