Process Mining? Data Mining? Business Intelligence? There are many analytical terms and it can be challenging to understand them all. This course will help you understand the terms associated with Process Mining and how it can be used to improve business processes.
Before we dive into the world of Process Analytics, let's first understand:
- What is Process Mining?
- What are key terms in Process Mining?
- What are the benefits of Process Mining?
- Why do companies use Process Mining analytics?
Process Mining combines different analytical fields to analyze operational processes based on their actual "as-is" data, which is available as log files in ERP-Systems. It's derived from the field of Data Mining as it uses similar technology to mine processes for improvements.
The goal of Process Mining is to transform data into actionable insights by revealing the current state of processes and create opportunities for improvement.
In comparison to Data Mining, Process Mining focuses on business processes and its transactional data in ERP systems.
The idea of Process Mining is to discover, monitor, and improve business processes.
Throughout processes and operations, every detail gets recorded. These details leave behind a trace called digital footprints and can be found throughout different systems in an organization. Process Mining captures these footprints and allows you to visualize them in a step-by-step journey view.
When we talk about Process Mining, it's important to clarify the common terms. Let's use an example to explain the key terms. Imagine you work at a company selling T-shirts with custom prints to customers (customers can also buy ones with existing print). The following terms are commonly used. Please select each term for more details and select the 'x' to return to the overview
Process Mining Terms
The Core of Process Mining
What are the capabilities of process mining?
Large business processes often contain millions of cases, which are distributed in hundreds of different variant.
The core of Process Mining is to identify the actual as-is state of processes and reveal the inefficient variants to improve processes.
Capabilities of Process Mining
So far, we've learned that Process Mining captures digital footprints of system-based tasks to deliver insights into the actual operational process. Sounds great! But what exactly are these insights?
Process Mining has three important capabilities:
- Process Discovery
- Process Conformance
- Process Performance
Process Discovery visualizes the way executed tasks are performed and backtracks the process flow.
This helps companies to:
- Identify the actual "as-is" process in a system
- Identify process deviations, exceptions, or outliers
- Identify the critical path (the longest sequence of tasks from start to finish) and the total number of executions
- Get a starting point to dig deeper into processes
Process Conformance focuses on the mapping of "as-is" data to an existing predefined "to-be" process, e.g. a BPMN process model.
This helps companies to:
- Identify the total of non-conform cases
- Identify the root course of each case
- Develop measures to ensure conformance
Process Performance is about measuring the process and define performance indicators that are shown in a dashboard.
This helps companies to:
- Create and evaluate measures for improvements
- Benchmark performance (e.g. of different regions)
- Monitor the overall performance process in real-time to react more quickly in case of changes
Why do Companies Use Process Mining?
There are several reasons why companies investigate and improve their operational processes, but the main one is a common reason that impacts almost every business.
Digital Transformation is one of the most used terms in today's world and will be a challenge for many companies in the next years.
Digital Transformation means the change in process of a company to adapt to the fast changing global market and customer expectations by using digital technologies and implementing a digital infrastructure. It combines the latest innovative tools and processes with the company's expertise in order to meet customer expectations and ensure a competitive position for the business.
This means that many companies need to adapt their processes in a way which new technologies can be implemented to meet customer expectations and gain new customers. Previous analog processes need to be transformed into digital ones.
Digital transformation combines the latest innovative tools and processes with the company's expertise in order to meet customer expectations and ensure a competitive position for the business.
Three Important Topics
- Big Data and Real-Time Process Analytics
Data mining helps identify trends, patterns, and customer behavior in a large data set. Combined with Process Mining, this allows a seamless stream of operational process and production data for real-time analytics.
- Cloud Technology
Cloud technologies allow for remote resources, storage and process data on demand, and the reduction of hardware and infrastructure costs. Cloud-based Process Mining tools provide powerful connectors to many systems and analyze millions of cases within seconds to deliver process insights.
- Artificial Intelligence (AI) and Machine Learning (ML)
AI gives companies a completely new basis for decision-making, enabling them to make more informed decisions. Due to its rapid development, it's already implemented in many industries, including IT, financial services, automobile manufacturing and healthcare. AI in Process Mining, is based on actual "as-is" data and can predict the process for cases, for example, incoming orders.
Alright! Now that you've learned the role of Process Mining with digital transformation, let's now look at the impact and benefits of Process Mining.