How does process mining support mergers and acquisitions?
Use process mining to get a fact-based and objective understanding of the actual process execution and system usage in often politically delicate situation to make educated decisions of the way forward.
What benefits can you achieve using process mining to support mergers and acquisitions?
- Fast realization of the planned synergies
Nokia's M&A with Alcatel-Lucent
“With QPR ProcessAnalyzer, our BPM office delivers data-driven process analysis to support business transformation.”
- Fauzia Khan, Business Process Manager, Nokia
As the Order-to-Cash and Purchase-to-Pay processes of these two companies were different, they need to be harmonized to achieve uniform customer experience, economies of scale and business synergies. Using the exact data stored in the source systems, Nokia gains knowledge on what happens in the processes and what kind of actions they need to take to make these operate in conjunction in the coming years.
"In the pilot, we decided to take three different processes. The Order-to-Cash process, the Procure-to-Pay process, and Nokia at that time last year (2017) was going through a major merger and acquisition with Alcatel-Lucent.
So we had on the left side legacy Nokia processes, on the right side legacy Alcatel-Lucent processes. And we were looking for one tool that would help us understand in an organization with 50% of employees coming from Nokia and 50% coming from Alcatel-Lucent, and none of them know completely the entire story, so what would be the tool that would help you before you start harmonizing your new processes and your old processes into new ones?"
"We selected QPR to basically assess that situation, and make the Nokia people aware of what the Alcatel-Lucent processes are, and vice versa. We did that with one year's data on both sides. The processes of former Nokia and former Alcatel-Lucent were two very distinct processes into totally different tool landscapes. Our goal was to create a new harmonized Nokia process within SAP Ariba. We utilized process mining and ran it for about six months, to really assess how the legacy Nokia and legacy Alcatel-Lucent processes looked like. Then those findings contributed to the new process redesign of Procure-to-Pay in Ariba."
"The ultimate proof-of-value was, we developed the insights into different redesigning projects through our funnel, and right now, we are industrializing, or scaling the process mining exercise into leveraging it for different other things like, a digital value stream mapping (VSM).
We identified roughly, there were 21 different approval steps before starting an order. We went back to the team and asked, why do you have so many different approval steps? That lead to limiting the number of approval steps, identifying the role and responsibilities of the team that they are aware of what they have to do, and they know how exactly the process flows, and other things like automation, robotics kicked in. One of the outcomes that has been happening this year (2018), is that the new Nokia process went live for Procure-to-Pay."