This is the first in a series of blogs on the subject of process bionics – how to provide insight by mining data to help organisations make better decisions and transform.
In this issue I explain what process mining is; why everyone is talking about it; what the benefits are; and how you can take action to begin your team’s journey into process mining and analytics. I also share wider Deloitte experiences in the market and key insights to achieve success.
What is process mining?
Process mining is a method of discovering, improving, and monitoring processes. It takes live data, direct from backend systems, to instantly produce an accurate and empirically based view of an end-to-end process. In essence, it shows you how a process is really performed by the user, rather than how it is perceived. The data is then analysed by placing it into an interactive visualisation, together with bespoke dashboards, to highlight areas of interest, risk, or opportunity.
Why is it a hot topic?
Most analysts pointing to a 40-50% CAGR until 2028, to between $8bn and $10bn annual market value. That is huge growth and an exciting market opportunity both for organisations, software providers like Celonis and UiPath, and service providers like Deloitte. Successful evidence from use cases in the market, reinforce the view of adoption and strong growth ahead.
In our recent Deloitte Process Mining Survey 2021, respondents described the improvements they both desired and realised, including:
• Process optimisation (improvement) (77%)
• Process transparency (57%)
• Implementation of solutions to reduce throughput time (28%)
Process mining can be applied across the business, but there are some particularly hot areas such as finance operations and procurement (as seen in our Deloitte Process Mining Survey 2021).
Beyond the essential process improvement benefits, leaders recognise that process mining is a powerful tool for achieving digital transformation. 48% Of respondents claimed mining is now a key lever in realising their transformation ambitions.
Figure 1. Areas where process mining is currently applied
What are the benefits of process mining?
Process mining has been effective in finding more opportunities, in reducing the time it takes to find the opportunities, and in reducing the work that people need to do to find them.
At one of our major UK banking clients, using Celonis as part of our Digital Discovery service, the average value of each improvement opportunity identified has increased from $200k to $750k.
Use cases prove that process mining can save companies large amounts of capital each year, be it through the initial deployment of pilot projects or a full-scale implementation and integration of the ‘Always On’ capability. This will enable the businesses to gain real time and continuous process insights and give you the edge over your competition.
In the Deloitte Process Mining Survey 2021, respondents highlighted the following benefits:
- Real-time operational insights
- Increased process transparency
- Expedited benefits realisation
- Supporting better investment choices
- Enhancing the confidence in identified benefits
- Identify process risks and mitigations
With this, we can target investments in areas that create the greatest return, and not waste time and money on things that might be easy to do, but don’t deliver the results we want.
84% Of adopters believe that process mining will or has already delivered value to their business. As these solutions becomes easier to access and more organisations realise benefit, Deloitte expects the use of process mining to increase.
Figure 2. Expectations of process mining
Process mining enables organisations to re-imagine the end-to-end process and become more customer-centric in their approach to a customer sales and servicing.
Where to begin?
Selecting the first “proving process” is key. A popular starting points for the deployment of process mining includes business areas, such as finance operations or procurement, as they have highly standardised data sets, which means they will have high efficiency potential for solutions but low impact compared to comparable corporate core processes.
In Deloitte’s experience, organisations should start with high value processes as they have the most potential for enhanced improvement compared to processes that might only have high efficiency potential. This allows businesses to realise the benefits more quickly and then expand into different areas for further benefit realisation.
35% Of respondents expected Process Mining to deliver better process compliance while 7% and 4% expect it to deliver greater regulatory compliance and better risk assessments. These responses were not expected as the deployment of Process Mining provides greater insight and transparency into how a process is completed. It enables process adjustments to be made both for process improvement & optimisation as well as the removal of actions which may have compliance risks. This is why we expected to see these results higher up because with increased optimisation and regulatory compliance it can mitigate the cost of regulatory penalties, PR issues or reputational damage which in today’s social media world is key to growing your business.
As organisations increase their use of process mining and activate the ‘Always On’ capability, there may be a shift towards a greater emphasis on employee satisfaction. Equipped with greater insights, employees will be empowered to solve root cause issues and reduce repetitive administrative tasks, which can lead to greater productivity and satisfaction.
In the near future we expect to see a greater number of organisations implementing the ‘Always On functionality’ in their day-to-day operations. This will enable businesses to design effective solutions and increase customer-centricity to further elevate customer experiences. Real-time insights provide a strong competitive edge by enabling adaptive processes and operations performance management.
Want to discuss process mining for your organisation?
If you are ready to bring process mining into your business, please contact our leads:
• Deloitte Centre for Process Bionics Lead: Oscar Hamilton (firstname.lastname@example.org)
• Financial Services: Tanya Urbaniak (email@example.com)
• Private Sector: James Condon (firstname.lastname@example.org)
• Public Sector: Helen Diana Cross (email@example.com)
Think Big, Start Small, Scale Fast