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Process Mining for Digital Transformation

May 7, 2020 / by Teemu Lehto    |    7 min read

Digital transformation, a topic that's all too familiar and relevant to any business in 2020. Although digital transformation is possibly mentioned in every corporate playbook, many organizations have failed to achieve the desirable outcomes with their digital transformation initiatives. Why? And how can business leaders successfully use new technology to solve their business problems?

In this blog post, I will discuss about what I believe to be the optimal companion in your digital transformation journey: process mining.

Contents:

1. Background: Digital transformation challenges

2. Value stream mapping

3. Agile organization

4. Business transparency

5. Process mining benefits in digital transformation

See our webinar recording and download the presentation slides the end of the blog.

1. Digital transformation challenges

From our experience of delivering more than 400 process mining projects to customers worldwide, a good number of which are digital transformation projects, we can identify the most common challenges that organizations face:

 


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Speed of change: As technology nowadays is changing by the minute, companies also need to keep themselves updated and proactive accordingly! In the midst of this corona crisis, we've seen that everything is changing suddenly and rapidly around the world, and that business plan you prepared last year might no longer be relevant.

From the technology viewpoint, changes keep coming faster than ever. Organizations need to have a solution to guide themselves through these new circumstances, and process mining is the optimal choice.

Take the camera industry for example: film cameras were beloved 20 years ago then swiftly replaced by digital cameras in every household. For the past 10 years, phone cameras keep getting better and better, aiming to take digital cameras out of business. Interestingly, the digital cameras kept evolving by themselves and gave birth to mirrorless ones. Interestingly, film cameras recently have made their way back to the competition, proving that the most unexpected things can and will always happen in business.

New business models: In the span of 10-20 years, we are able to witness how some old business models have been totally replaced by new ones. Before, people go the stores to shop for groceries, clothing, or electric devices. Nowadays, almost everything can happen digitally: online shopping, remote working, and so on. The advancement of technology plays a huge part in this change. If you're able to purchase everything from your sofas and have home deliveries, why bother going to the stores?

The changes in B2B organizations, though slowly, are also happening, thanks to the shift in behaviors and mindsets in the B2C setting.

Big complexity to manage and automating end-to-end processes: The business world has always been complicated where everyone wants to simplify their processes in order to make them one size fits all. However, the more businesses are trying to simplify their approach, the more customers prefer customized products and services, especially in the B2B world. This is one dilemma for business leaders to consider in their digital transformation journey: how to make the processes simple, but keep the customers happy.

Process mining is the tool that gives you 100% coverage of your end-to-end process, hence the guidance for your next digital transformation activities, i.e how and where to apply RPA.

No humans - need for data-driven analysis: Back in the days when there were not as much automation in the process, the insights and evaluations of a process come from the experts and the workers. The more you automate in your business processes, the less human are involved. Eventually, you'll be able to achieve zero-touch processes, but how do you know if everything is going well or not?

The answer for this challenge is again process mining. Even when your circumstances allow you to conduct interviews and group discussions to review how well a process go, I would still advise you to use process mining for KPI reporting, monitoring and auditing purposes. In my experience, it's almost impossible to gather unbiased opinions from workers, whereas process mining provides you with fact-based insights based on data from your own system.

 

2. Value stream mapping

The concept of value stream mapping is that you should understand what activities can add value to your customers, and avoid the unnecessary and costly steps in your processes. I'll show you how you can achieve this with QPR ProcessAnalyzer.

 

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By clicking on the pictures below you'll see the corresponding demonstration video.

 

3. Agile organization

With the reasons mentioned above, it's crucially to make your organization agile by understanding the changes around you and react rapidly to them. Moreover, you should continue monitoring and keeping things in check so that you can achieve the ultimate goal of creating an agile culture in your own organization.

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How can QPR ProcessAnalyzer help you do this? Check out my demonstration by clicking on the image below:

4. Business transparency

Last but not least, process mining helps you to achieve business transparency, which is a long-term, comprehensive goal in your digital transformation journey.

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Check out my demonstration with QPR ProcessAnalyzer by clicking on this image below:

 

 

 

5. Process mining benefits in digital transformation

 In conclusion, here are the benefits that process mining can bring to your digital transformation journey:

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Check out the full recording of my webinar and download the presentation slides below!

It’s a good time to take a look at Process Mining if your company hasn’t already. The capabilities and usability of Process Mining software are improving rapidly, and the market is quickly becoming mature, although there’s still much work to be done. If you think your company is ready to step it up with the future of as-is process modeling and process efficiency maximization, the fastest way to get things moving is to follow these steps:

Topics: Process Mining, QPR ProcessAnalyzer, Digital Transformation, Best Practices

Teemu Lehto
Written by Teemu Lehto

Process Mining evangelist active in marketing, sales, consulting, product development and research. Teemu has been involved in 200+ end customer process mining project from order-to-cash, purchase-to-pay, plant maintenance, auditing and service. Teemu is also an active speaker delivering the process mining message as well as writer for several process mining and machine learning scientific articles. Book a meeting with Teemu using the link: https://outlook.office365.com/owa/calendar/TeemuLehtoQPR@QPR.onmicrosoft.com/bookings/

 

Find out more about popular Process Mining use cases through these guides:

4 Steps of RPA with Process Mining

Process KPI Reporting

Featured Success Story from EY UK:

Internal Audit and Risk Management