What Is Process Mining?


5 Ways Process Mining Can Help You with Your Business

What Is Process Mining?
5 Ways Process Mining Can Help You with Your Business
Process Mining & Intelligence provides a data-driven view into how your business runs today and, more importantly, how your business can be optimized to run tomorrow. It should be a prerequisite for any transformation program as it quickly pinpoints process areas that will improve your customer experience, operations, and margins.
Tom Madsen, COO, Revive


What is Process Mining

Process mining is a method of analyzing complex systems to understand business-critical problems and find solutions to them. Process Mining is a visualized, data-based view of a process. It displays the current state of the actual process, uses real-time data and incident logs to identify bottlenecks, reduce unnecessary steps, and present factual findings. Process Mining delivers insights into the business’s processes, operations, and workflows. This is particularly useful for digital transformation, for example, the ability to look at change management, business change management, or the execution of customer-facing processes to understand where they’re breaking down and what changes are necessary.

Techniques of Process Mining:
  1. Process Discovery: This includes the discovery, mapping, and visualization of your process and all associated variants. The mapping is completed via algorithms that take simple, event log data and map all your current processes. Process Discovery elaborates more on data-driven visualization of process and is the fundamental method in process mining. This model is mostly generated based on the event log data available. The discovered model is demonstrated instantly, following the graph. The prime target is transparency and knowledge of how the process comes into being.
  2. Process Analysis: Make use of process mining software to better understand the triggers/improvement opportunities of individual processes. This helps recognize the operational significance and the impact of the process on KPIs.

We’ve listed out a few examples below:

  • Customer Satisfaction
  • Operating Cost
  • Timely delivery
  • Automation rate
  • Risk reduction
  • Working capital
  1. Process Optimization: Optimizing the core operational process surrounding a difficult strategy is a massive task but proves to be a competitive benefit that not many companies can pull off as of today. It generates clarity into the process environment and syncs fine-grained data to advanced business results and accomplishes profound business agility, which is reproduced only with the help of process mining.
  2. Process Compliance: The monitoring and maintenance of industry standards and guidelines is process compliance. A majority of industries employ standards and guidelines relevant to the business processes they manage. A failure to fulfill might result in penalties and, in dire cases, imprisonment of the officials in the company.
Why Process Mining

In a world where business efficiency relies on rapid, reactive decision-making, only simulation and modeling are key to unlocking real, continuous improvements. Process Mining uses clearly defined parameters such as fall load, execution time, unused resources, and process flow, and can only be used through simulation to create hypothetical models that show the true 360-degree effects of even the smallest decisions.

  1. Reduces Cost: Identify and eliminate weak areas and bottlenecks in process stages to reduce long-term company expenses.
  2. Improves Transparency: Process mining tools can absorb large amounts of data and present it in a usable format, allowing you to view all the processes and identify inefficiencies as well as improvement opportunities.
  3. Fast, data-driven approach: Organizations tend to get to the root of the problem faster, letting them react quickly and deliver the best possible customer service.

Some of the key business drivers include:

Optimize your business:

  • Standardize, streamline and simplify your business to improve margins.

Improve the customer experience:

  • Customers demand consistent and simplified experiences. Process mining delivers this.

Quality is important:

  • Many processes require Quality of Service (QoS) measures. Now you can see which processes and participants in your value chain deliver on that QoS promise.

Ensure compliance

  • Many processes required strict adherence to certain flows and sequencing. Now you can be confident in your process compliance
How Process Mining Can Help Your Business

Companies can extract log data from their information systems - combined with data mining and process analysis - to better understand the performance of their processes and identify bottlenecks and other improvement opportunities.

  • Improving process performance

It's fast, more efficient, and more accurate than the time-consuming, subjective process mapping workshops. It is useful in identifying areas of improvement in the process and presenting facts based on your business data. When performed over a longer time period, process mining can help forecast issues and create a business plan for improvements.

  • Identifying bottlenecks

Process Mining gives you the ability to assess and visualize all the points of contact between the customer and the organization. As a result, you get a clearer understanding of the current state of your processes and how this affects the customer experience.

  • Reducing unnecessary steps & rework

It can identify common errors and errors that may occur during the process. It can also identify issues in the process that might need human intervention. The main goal is to identify both short-term and long-term errors to improve the process. Process Mining solutions can be used to increase efficiency by identifying the way the process is run. Process Mining solutions can also detect steps that are not needed in the process.

  • Finding ways to improve efficiency

Businesses have discovered that continuous improvement can be achieved by monitoring the work being done, using process improvement initiatives, and correlating workload data across the business. It also allows businesses to make process improvements to ensure the current performance of their processes is efficient.

  • Evaluating the impact of improvements

With process mining, you can improve the processes without making changes to the system architecture. This significantly reduces the risk of changing architecture for continuous improvement. Organizations can watch KPIs, observe how the optimization efforts are affecting process performance, adjust the plan in response to external changes, and stay on track while improving their business.

 

Summary

Process mining is a natural extension of your data collection and analytics process. As of today, companies collect a lot of data on the customer journey and experience, information on products, and numerous KPIs. In earlier times, you could not extract true data on the processes that drive the performance of your business. Now you have that capability. This is crucial in today’s times as companies are shifting their interactions to the digital sphere. The basic working principle of process mining is to garner knowledge from the event records that you see in modern-day’s information systems to help visualize the business process and its various changes whilst execution.

Process mining is the perfect way to visualize and analyze the actual execution of business processes with logged process data from operational and transactional systems. The rise of social media, sensor data, Internet of Things (IoT) technologies and RFID has led to more event data being available suited for analysis using process mining software.

Author : Re-vive