What is process mining?
Process mining is an analytical approach that utilises a company’s IT infrastructure in order to identify and improve problems and workflows at an operational level. Process mining allows for the visualisation of processes in combination with perceptive analysis.
What is Business Process Management (BPM)?
Methods and approaches that are used by companies in order to measure, analyse, improve and model business processes is called business process management. Companies use BPM in order to ensure processes are efficient and optimised which can then result in cost reduction and performance improvement.
Now let’s have a look at 3 benefits of Process Mining for companies.
1. Transparency and visualisation
Requirements of data-driven decision-making are quality of data, data visualisation, data analytics and relevancy of data. Without process mining, businesses find it hard to visualise process data. Process mining tools see through and fill the gap between raw data and the actual process sequence.
According to the research conducted by Jan Claes, 60.6% of respondents stated that factual process data such as order numbers, product types and timestamps is the most prominent benefit of process mining.
2. Process optimisation and workflow improvement
There are always inefficiencies present within IT systems that are often hidden. Internal resources intrinsically understand there are errors slowing down the process and productivity but without data, these assumptions cannot be trusted. Process mining helps managers to dive deep into these data and uncover errors and inefficiencies in order to improve the workflow and optimise the process.
3. Automations and cost reductions
As mentioned earlier, process mining helps to find errors and bottlenecks in the process and workflow. Business process efficiency is generated when errors are discovered and fixed, these processes can be improved using tools such as automation. The automation of business processes will reduce the cost of overall business operations.
For example, let us say the company ‘ABC’ wants to reduce customer interaction delay from 5% to 3%. With current processes in place, if the average cost of resolving a certain issue is $10, but simply refunding the customer is $8, then company ABC could go ahead and refund the customer and still save money while enhancing customer experience.