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Process Mining en

Process Mining is a data-driven approach that analyzes and improves real-life business processes by utilizing event logs from IT systems, enabling organizations to enhance efficiency, compliance, and decision-making. The technology has seen rapid growth, with a projected revenue increase to $2.3 billion by 2025, as more organizations adopt it to optimize operations and reduce costs. The document outlines various techniques, use cases across multiple industries, and the role of emerging technologies like AI in advancing Process Mining capabilities.
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0% found this document useful (0 votes)
5 views31 pages

Process Mining en

Process Mining is a data-driven approach that analyzes and improves real-life business processes by utilizing event logs from IT systems, enabling organizations to enhance efficiency, compliance, and decision-making. The technology has seen rapid growth, with a projected revenue increase to $2.3 billion by 2025, as more organizations adopt it to optimize operations and reduce costs. The document outlines various techniques, use cases across multiple industries, and the role of emerging technologies like AI in advancing Process Mining capabilities.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 31

Process Mining

A Strategic Technology for


Organizational Efficiency and
Compliance
June 2024
‫ــ‬ Executive Summar 3

Contents
1 Process Mining – an Overview 5

1.1 What is Process Mining? 6

1.2 Why Process Mining? 7

1.3 Event Logs 8

1.4 Process Mining Main Techniques 9

2 Process Mining Landscape Overview 10

3 Process Mining Use Cases 12

3.1 Healthcare 13

3.2 Manufacturing 13

3.3 Government 14

3.4 Education 15

3.5 Technology 15

3.6 Telecommunications 16

3.7 Financial Services 16

3.8 Utilities 17

3.9 Consumer Goods 17

3.10 Services 18

4 Process Mining as a Regulatory Enabler 19

4.1 Process Mining for Regulated Entities (CompTech) 20

4.2 Process Mining for Regulators (SupTech) 21

5 Emerging Trends, Innovations, and Future Outlook 22

5.1 Emerging Trends and Innovations 23

5.2 The Role of Artificial Intelligence (AI) in Process Mining 24

5.3 Process Mining, Automation, and Task Mining 25

6 Conclusion and Recommendations 27

7 References 29
EXECUTIVE
SUMMARY
Processes live at the heart of any modern
organization. Business processes are series of
functions or activities carried out in a specific
order to achieve organizational goals [1]. These
processes range from simple flows such as
processing an invoice to complex ones such as
product development or customer service.
As businesses expand and their operations
become more complex, maintaining efficiency,
and ensuring that processes operate as planned
can be difficult. Process Mining offers a solution
to this challenge.
Process Mining is a field that combines elements
from data analytics and business process
management to analyze, monitor, and improve
real-life processes [2]. It is an innovative approach
that turns event logs data residing in IT systems
into insightful, actionable information, helping
organizations to optimize their processes. In
today’s data-driven world, where processes are
increasingly complex and digital, Process Mining
has emerged as a crucial tool for understanding
and improving process performance.
The primary goal of process mining is to bridge the gap between traditional business process
analysis and how processes are really performed. This is achieved through three key activities:

01
Process Discovery
Automatically generating process models from event logs, giving an accurate visual
representation of the processes as they are really performed.

02 Conformance Checking
Comparing the discovered processes with existing process models or norms, to
identify deviations and compliance issues.

03
Process Optimization
Using insights gained from the analysis to optimize processes, enhance operational
efficiency, reduce costs, and improve customer satisfaction.

Process Mining tools and techniques are versatile and can be applied across various domains,
such as supply chain management, healthcare, finance, and government. By unlocking the
potential of available logs data that organizations already possess, Process Mining offers a
powerful means to transform process management and drive digital transformation.

The field of Process Mining is experiencing rapid advancement,


paralleled by a significant increase in its adoption. In 2021, the global
revenue from Process Mining industry surged by 46%, with
projections of a growth to $2.3 billion by 2025 [3]. This represents a
robust compound annual growth rate (CAGR) of 33% from 2020 to
2025. It is anticipated by 2025 that 80% of organizations, motivated
by the aim of reducing costs and improving efficiency through
automation, will integrate Process Mining tools into some of their
business processes [4].
This paper demonstrates the use of Process Mining in ten diverse
industries, showcasing its benefits in improving efficiency and
reducing costs. It also highlights Process Mining's role as an effective
regulatory instrument for both regulators and regulated entities,
facilitating compliance management and adherence to standards.
In addition, the paper reviews current trends and future directions in
Process Mining, highlighting its ongoing innovation driven by
technological advancements. Specifically, it points to Artificial
Intelligence as a key driver in boosting process analysis capabilities,
alongside the discussion of Task Mining and its integration with
Process Mining and Robotic Process Automation (RPA) to advance
automation efforts.
The paper concludes with actionable recommendations for
organizations looking to implement Process Mining to successfully
adopt and leverage this technology to optimize operations, improve
efficiency, and ensure compliance.

Process Mining 04
PROCESS MINING –
AN OVERVIEW
In the modern business landscape, organizations
continually strive to optimize their operations. At
the heart of this endeavor are business processes.
Business processes are series of functions or
activities carried out in a specific order to achieve
organizational goals [1]. They are fundamental to
any organization's operations, regardless of size or
sector. They range from simple flows such as
processing an invoice to complex ones such as
product development or customer service.
Understanding business processes is essential for
improving efficiency, productivity, and customer
satisfaction.
Organizations need business processes for many
reasons, such as efficiency, clarity, accountability,
performance measurement, and innovation and
improvement. However, as businesses grow and
processes become more intricate, it becomes
challenging to maintain efficiency and ensure that
these processes are running as intended. This is
where Process Mining can help.
1.1. What is Process Mining?

Process Mining is a field that combines elements from data analytics and business process
management to analyze, monitor, and improve real-life processes [2]. It uses the digital footprints
left behind in today’s information systems in the form of event logs -records of events that have
taken place within an organization's IT systems- to understand and improve how these processes
work.
Unlike traditional business process management, which relies on planned models, Process
Mining builds on actual data, providing an objective view of process flows. Process Mining
provides a detailed, data-driven view of how processes really operate within an organization. This
visibility allows businesses to optimize efficiency, improve performance, and ensure compliance
with regulations and standards. Figure 1 shows an example of process discovery output, one of
the techniques in Process Mining.

608

Create Purchase Requisition


608

374

234 Analyze Purchase Requisition


382
307
11 8

Amend Purchase Requisition


Create Request for Quotation
11
544
544

Analyze Request for Quotation


1,107
563
413 563

Amend Request for Quotation


563
Send Request for Quotation to Supplier
413
413

Create Quotation comparison Map


413

413

Figure 1: process discovery output

Process Mining has evolved significantly since its beginning, developing alongside advances in
technology and the growing need for process optimization in various industries. Throughout its
development, Process Mining has transitioned from an academic concept to a component of
business process management in organizations worldwide. Its ability to provide transparent,
data-driven insights makes it an invaluable tool for businesses seeking to thrive in an increasingly
data-centric world. Figure 2 illustrates major milestones in the evolution of Process Mining field.

Process Mining 06
Emergence
of Process Maturation and
Mining Commercialization
Technological
Concept Integration with
Advancements
Early
and Increased Big Data and AI
Foundations
Late 1990s Data Availability 2010s
- Early 2000s

Late 1970s - 1990s 2000s Late 2010s - Present

Figure 2: major milestones in the evolution of Process Mining field

1.2. Why Process Mining?

With Process Mining, businesses can gain deep insights into their operations. It allows for the
discovery of the actual flow of processes, revealing inefficiencies, bottlenecks, and deviations
from intended workflows [2]. Organizations can use these insights to optimize processes,
enhance compliance, and improve overall operational efficiency. In essence, Process Mining
bridges the gap between the theoretical model of how things should work and how things really
work, enabling data-driven decision-making for process improvement. Figure 3 illustrates key
benefits of adopting Process Mining.

Efficiency Improvements Compliance and Risk Management


Process Mining can ensure compliance
Process Mining can uncover hidden
with regulations and internal policies
bottlenecks, redundancies, and
by monitoring adherence to prescribed
inefficiencies in business processes.
processes and highlighting deviations.

Enhanced Transparency Cost Reduction


It provides a clear, objective view of how Businesses can significantly lower
processes really work, revealing variations operational costs by optimizing process
and deviations from the intended process. efficiency and reducing bottlenecks.

Monitoring and Control Data-Driven Decision Making


Continuous monitoring of processes
Since Process Mining is based on actual
becomes possible, enabling real-time
data rather than assumptions, it provides
adjustments and agile management
a solid foundation for decision making.
of operational activities.

Predicting Future Issues


Enhanced Collaboration
Advanced Process Mining tools, integrated
By providing a common and clear
with predictive analytics, can forecast
objective view of processes across
potential future issues in processes. This
departments, Process Mining facilitates
allows businesses to take preemptive
better collaboration among teams.
actions to avoid problems.

Figure 3: key benefits of adopting Process Mining

Process Mining 07
1.3. Event Logs

Event logs are the main data source for Process Mining. They are records of sequential events
that have occurred within an organization's various IT systems, like ERP, CRM, or EPM tools.

Event logs are crucial because they provide raw data that reflects the actual execution of
business processes. They are the objective traces of process activities and are essential for an
accurate Process Mining analysis.

Event data can be originated from many sources and in different formats, including database
systems, transaction logs, ERP systems, APIs, CSV files, and spreadsheets (Figure 4).

Other Systems EPM CSV files PROCESS


EVENT LOGS
MINING REAL
PROCESS

CRM APIs ERP

Figure 4: event logs sources and collection

An event log typically contains information about each event within a process, including a
timestamp (indicating when the event occurred), a case identifier (the instance or context of the
process to which the event belongs), and the activity or state (what happened). Additional data
may include the resource (who performed the activity) and other relevant attributes. Figure 5
shows an example of a log entries.

Case ID Timestamp Activity Customer ID

Order_001 2023-01-01 08:00:00 Order Placed Cust_001

Order_001 2023-01-01 09:00:00 Payment Processed Cust_001

Order_001 2023-01-01 10:00:00 Item Packed Cust_001

Order_001 2023-01-01 13:00:00 Item Shipped Cust_001

Order_001 2023-01-03 08:00:00 Item Delivered Cust_001

Order_002 2023-01-01 11:00:00 Order Placed Cust_002

Order_002 2023-01-01 12:00:00 Payment Processed Cust_002

Order_002 2023-01-01 14:00:00 Item Packed Cust_002

Order_002 2023-01-01 18:00:00 Item Shipped Cust_002

Order_002 2023-01-04 08:00:00 Item Delivered Cust_002

Order_003 2023-01-01 10:00:00 Order Placed Cust_003

Order_003 2023-01-01 11:00:00 Payment Processed Cust_003

Order_003 2023-01-01 12:00:00 Item Packed Cust_003

Order_003 2023-01-01 16:00:00 Item Shipped Cust_003

Order_003 2023-01-02 20:00:00 Item Delivered Cust_003

Figure 5: example of a log entries

Process Mining 08
1.4. Process Mining Main Techniques

Process Mining encompasses a set of techniques that are critical for analyzing and improving
business processes. The three primary techniques are process discovery, conformance checking,
and process optimization [5]. These three techniques form a thorough approach for
understanding, monitoring, and improving business processes.

Process Discovery

01 Process Discovery is the first and fundamental step in Process Mining. It involves
automatically generating a process model from event logs data. This model visually
represents the actual execution of a process, as it happened, based on the event
logs in the IT systems. Discovery is crucial for organizations that lack formal
documentation of their processes or where the existing documentation is
outdated. It provides a starting point for process analysis and improvement.

Process discovery helps to understand the true nature of a process — how it is really
being carried out — as opposed to how people think it is being executed. It reveals all
variations of the process, including the most common paths, exceptions, and
deviations.

Conformance Checking

02 Conformance checking is a technique used to compare the discovered process


model with a normative or pre-existing model (how the process is supposed to
operate). This technique identifies deviations of the real processes from the model
processes. These discrepancies might include violations, exceptions, shortcuts,
bottlenecks, or inefficiencies. Conformance checking is essential for ensuring
compliance with policies and regulatory requirements.

Conformance checking is particularly valuable in highly regulated industries or in


scenarios where adherence to standard operating procedures is critical. It aids in
maintaining compliance and identifying areas for process standardization.

Process Optimization

03 Process optimization involves using the insights gained from process discovery and
conformance checking to make informed changes to the process. Optimization
may include automating certain steps, reordering tasks to reduce delays,
eliminating redundant activities, or implementing controls to ensure compliance.

Process Mining 09
Process Mining
Landscape Overview
The recent years have witnessed a remarkable
acceleration in the adoption of Process Mining
technology. In 2021, the worldwide revenue for
Process Mining industry experienced a significant
surge, increasing by 46%. This upward trajectory is
expected to continue, with projections indicating
growth to $2.3 billion by 2025. This represents a
robust compound annual growth rate (CAGR) of
33% from 2020 to 2025 [3]. Furthermore, by the
year 2025, it is anticipated that 80% of
organizations, motivated by the dual goals of cost
reduction and improved efficiency through
automation, will integrate Process Mining
capabilities into a minimum of 10% of their
business operations [4].

Process Mining 04
Organizations have noticed the importance of automation in business process management.
Forrester Consulting investigated the practices of process improvement within enterprises [6].
This study involved a survey targeting 461 decision-makers globally who are involved in process
management. The results showed a clear trend: 78% of these leaders emphasized that quickly
identifying and automating essential processes is vital for achieving success. Despite this, many
still depend on manual discovery methods, such as interviews and workshops, which are not only
time-consuming but also subject to biases and errors. Interestingly, only about 36% of the
participants indicated that their organizations predominantly use automated discovery tools,
including process or task mining. These tools are notably more efficient in enhancing the analysis
of processes objectively and can be applied on a larger scale.

Process Mining, despite being a relatively recent technological innovation, has experienced a
remarkable surge in its application over the past decade. HSPI Management Consulting has
conducted an extensive study and compiled a database highlighting the diverse use cases of
Process Mining [7]. Figure 6 presents a clear depiction of this technology's increasing adoption
rates. Additionally, Figure 7 provides an insightful overview of how these use cases are distributed
across various countries, revealing a notable concentration of Process Mining users in Europe.
This trend aligns with the historical context, as Europe was the birthplace of most early Process
Mining research and pioneering companies. Furthermore, Figure 8 offers a detailed breakdown of
how these use cases are spread across different industries.

120
Case Distribution Per Year (2005-2020) 113
96
100
85
80 73 79
67
60
52
41
40 34

20 18
1 1 1 5 5 6
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 6: use cases per year [7]

Russia 1%
4%
10% 17% India 1.2%
Europe 47.9%
South Korea 4.8%
4%
Canada 1.2% Saudi Arabia 0.5%
5%
15% USA 5.6% South Africa 0.3% China 0.5%
3%
6% Colombia 0.3% Indonesia 0.2%

6% Argentina 0.2%
8% 22%
Brazil 3.8%

Australia 4.1%

Financials Healthcare Industrials Public

Technology Consumer Services Utilities Basic Materials

Consumer Telecommunications Services


Goods

Figure 8: use cases per industry [7] Figure 7: use cases per country [7]

Process Mining 11
Process Mining
Use Cases
This section presents a selection of use cases from
various industries, illustrating the application of
Process Mining in different scenarios. The benefits
and impacts of Process Mining in each of these
contexts will be highlighted, providing an in-depth
understanding of its utility and effectiveness.

Process Mining 04
3.1. Healthcare

IQVIA is renowned as a major provider of clinical research services


and advanced analytics. It has 80,000 employees, and its revenue
is $14 billion. The shared service center at IQVIA is responsible for
reporting, Procure-to-Pay1, Order-to-Cash2 and about 80% of
payroll. It was challenging for the center to scale as the company
grows without cost increase.

IQVIA used Process Mining for their processes in Order-to-Cash


and Procure-to-Pay [8]. A visible success was fixing
misclassification in payment terms in Procure-to-Pay processes
with terms that they would've paid earlier. They identified 190
misclassified invoices valuing about $30 million. Resolving this
issue led to an average increase of 32 days of Days Payable
Outstanding, which saved about $600,000 of working capital.

Another use case is Alexianer, a non-profit German organization


[9]. The organization runs 27 hospitals and has 27,900 employees

80%
reduction in the
and 44 nursing homes. In its strive to achieve process excellence,
Alexianer initiated a pilot project to analyze event logs with
time between Process Mining in order to better understand the billing process
patient discharge and think of a way to optimize critical emergency room processes
and the issuance of which improve quality of care for patients. As a result, there was an
the final invoice 80% reduction in the time between patient discharge and the
issuance of the final invoice.

3.2. Manufacturing

TK Elevator (TKE) used Process Mining for credit and rebill processes
[9]. TKE is a global manufacturer of elevators, escalators, and moving
walkways. It operates in over 100 countries and employs over 50,000
employees and 24,000 service technicians. The reason for choosing
credit and rebill processes is their sophistication with many points of
interaction, in addition to their large number of cases.

By using Process Mining, TKE discovered that there are many


process variants, and two variants cover 60% of the cases. After
investigating these variants, they found a nonessential approval
step that delays on average about 2 to 3.5 days to the process cycle
time. Moreover, they discovered that 10% of the requests are
cancelled because of insufficient information, a reason that could be
tackled easily. Based on these insights, TKE devised an action plan to
solve the found issues which potentially could save over 2000
manager hours per year and increase operational efficiency.

1. This process encompasses the entire journey from identifying a requirement for goods or services to making the payment to the supplier.

2. Refers to the complete set of processes from receiving a customer’s order to collecting the payment for that order.

Process Mining 13
3.3. Government

In Austria

The City of Vienna Court of Audit stands as an independent


and self-governing body for public auditing. It audits the
financial management and security protocols of various
institutions and entities within Vienna. The Court of Audit uses
various audit methods according to the audit situation. It has
been using Process Mining to conduct several audits since
2016 [10].

For example, in 2020, an analysis of the Procure-to-Pay


process was conducted for Wiener Staktwerke, a leading
infrastructure group in Austria. The analysis of such process is
challenging for several reasons, such as difficulty of access to
data, complexity of the process and large number of events in
the analyzed log data.

Process Mining allows for complete analysis of the processes


rather than taking samples as it had been done with manual
inspection. This enable 100% coverage of all the cases, here it
was 2550 cases. Deeper analysis is still conducted, but on
selected cases based on the observations from Process
Mining analysis. This led to a more efficient auditing process
with a higher quality result. Process Mining could also be used
to assess the effectiveness of any implemented changes to
the processes in subsequent future audits.

In Spain

Another use case was conducted by the Municipal of Granada,


a city of 250,000 population in Spain [11]. Process Mining is
used to analyze the process of appeals and complaints
regarding tax collection and other public revenues, where
citizens register claims and await responses, leading to
complaints about delays.

A thorough investigation was conducted to find out the


reasons for the delays, and if the claims are suspended or
pending for any reason. The two main reasons found were
unnecessary manual work and bottleneck in required
signatures from certain people. The suggested solutions are
temporarily adding more employees until automating manual
entry parts in the system, and by making changes to resource
organization to resolve the issue of signatures in case a key
employee is absent.

Process Mining 14
3.4. Education

Student admission is an important experience that the


University of Melbourne wanted to improve [12]. Enhancing
this experience would reduce the turnaround time, optimize
employees allocation, and improve the conversion rate.

To better understand how the process is really working, rather


than depending on assumptions they relied on logs data. By
using Process Mining process discovery methods, real
processes were identified and visualized in a way that helps
the team to assess the situation and take informed actions.
The analysis allowed the team to identify bottlenecks areas,
From 2017-2020:
28% faster inconsistencies, and potential optimization opportunities.
turnaround, 56% Between 2017 and 2020, significant operational improvements
more applications,
65% quicker in stage were evident, highlighted by a 28% decrease in overall
2 turnaround time turnaround time, a 56% increase in application volume, and a 65%
reduction in stage 2 turnaround time.

3.5. Technology

Founded in 1921 in Phoenix, Arizona, Avnet has grown to


become a leading global provider of electronic components
and services, particularly in the EMEA region. With a global
workforce of approximately 14,500 employees, the company
reported revenues of $19.53 billion in 2021.

They have adopted Process Mining to discover


opportunities for automation and to verify if the automation
strategies they have already employed are effectively
supporting their team's daily tasks [13].

They believed they were conducting 100% of their


transactions electronically. Surprisingly, the analysis showed
it was around 70%. Through Process Mining, they pinpointed
areas with lower adoption rates and successfully increased
this figure to over 90%.

Process Mining 15
3.6. Telecommunications

Deutsche Telekom Services Europe (DTSE), a subsidiary of


Deutsche Telekom, implemented Process Mining to analyze
Procure-to-Pay processes [14]. These processes handle about
9 million invoices per year and process over 2 million order
items, with an order volume of more than €7 billion.

This led to a 96% cash discount rate3 through real-time invoice


monitoring and tracking, resulting in an annual saving of €40
million. Increased automation improved the rate of
transactions that required no manual intervention which led
Real-time monitoring to saving €12 million. Furthermore, over 90% of purchase
and tracking saved orders are now accurate on the first attempt. Systematic
€40 million annually, examination of contracts for penalties also contributed to
with additional €12 receiving approximately €1.6 million in penalties in 2019.
million from automation

3.7. Financial Services

A success story of applying Process Mining in banking is


Piraeus Bank in Greece [15], a bank with 8800 employees, 5.7
million customers, net loans of €34.7 billion, and €55.8 billion
deposits. Piraeus Ban face difficulties with the loan process.
Each month 20,000 loans application are submitted, with a
total process step of 110,000 to process them. It was difficult
to understand and map the processes in a manual way.

This was solved with Process Mining, by analyzing logs data


the bank was able to understand and visualize the processes
Process
and discover inefficiencies and bottlenecks. The root causes
improvements
of such problems were traced and understood, and from
resulted in cutting
that it was easier to optimize the processes and identify
process lead time by
potential automation opportunities. Process improvements
resulted in cutting process lead time by 86%. 86%

3. A percentage reduction on invoice amounts offered to buyers for early payment within a predetermined period, aimed at accelerating payment and enhancing

the seller’s cash flow.

Process Mining 16
3.8. Utilities

Located in the city of Bonn, Germany, Stadtwerke Bonn


supplies gas, electricity, and water to its residents. In a
strategic move to enhance operational efficiency and
customer satisfaction, the company focused on improving
its Meter-to-Cash4 process. To achieve this, Stadtwerke
Bonn initiated a Process Mining project, aimed at better
understanding its workflows [9].

Through the application of Process Mining, the company


discovered that about 75% of their plausibility checks were
unnecessary, which amounted to around 571 working days.
Additionally, they uncovered opportunities to add value by
implementing automation in manual procedures. The
outcome was a significant improvement in workflow efficiency
and the introduction of time-saving automated processes.
These changes not only streamlined operations and cut costs,
but also led to an increase in customer satisfaction.

3.9. Consumer Goods

Currently, PepsiCo employs Process Mining in several key


processes, such as accounts receivable and payable,
Procure-to-Pay, Order-to-Cash, and Make-to-Deploy5,
having started with accounts payable in 2019 [16]. Within
their Order-to-Cash process, the team identified
inefficiencies in inventory management, resulting in a
significant number of sales order rejections. They found
there are 30% rejected orders. These rejections stemmed
from various issues, including exceeded credit limits,
customer cancellations, as well as challenges related to
system integration and inventory stockouts.

By utilizing Process Mining to identify key areas for

86% improvement, PepsiCo successfully reduced its order


rejection rate to 4%. This strategic approach led to the
decrease in rejected
unlocking of millions in accounts receivable, an 86%
sales orders
decrease in rejected sales orders, and over 1,000 hours
saved annually in accounts payable, alongside millions in
reduced write-offs.

4. In the utilities sector, this process spans from measuring usage (via meters) to issuing bills and collecting payments from customers.

5. This process covers the entire cycle from manufacturing goods, managing inventory levels, to fulfilling and deploying orders to customers.

Process Mining 17
3.10. Services

Accenture, a well-known professional services provider,


employs over 624,000 employees who serve more than
three-quarters of the Fortune 500 companies, having an
annual revenue exceeding $50 billion. The company used
Process Mining to optimize Request-to-Order6 processes
[17].

Process Mining offered Accenture valuable insights, allowing


for data-driven discussions with stakeholders about areas of
improvement, which led to a 50% reduction in
Request-to-Order cycle times. By analyzing the results from
Process Mining, they eliminated several unnecessary steps in
the procurement, finance, and tax departments.
Consequently, Accenture achieved $35 million in annualized
working capital benefits, and their customer satisfaction
score (C-SAT) improved, demonstrating the enhanced
service quality resulting from automation of certain tasks.

6. Initiates with a customer’s request for a product or service and ends with the creation and processing of the order to meet that request.

Process Mining 18
PROCESS MINING
AS A REGULATORY
ENABLER
“RegTech is a portmanteau of the words
‘Regulatory’ and ‘Technology’, and it refers to the
use of advanced and emerging technology for
adherence to regulatory requirements.” [18]

The relationship between Process Mining and


Regulatory Technology (RegTech) is increasingly
becoming significant in the modern business
landscape, where compliance with regulations is as
crucial as operational efficiency. The relationship
between Process Mining and RegTech is mutually
beneficial and increasingly essential. Process
Mining enhances the capabilities of RegTech
solutions by providing deep insights into process
compliance and efficiency, while RegTech offers a
critical application domain for Process Mining
technologies. As regulatory environments become
more complex and dynamic, this synergy will be vital
for organizations aiming to maintain compliance
while optimizing their operations.

Process Mining 04
4.1. Process Mining for Regulated
Entities (CompTech)

By enhancing compliance, Process Mining not only protects


organizations from legal and financial repercussions but also
contributes to building a robust, transparent, and trustworthy
operational foundation. Process Mining significantly
enhances compliance in organizations by providing a deep,
data-driven understanding of business processes. This helps
to ensure that operations are in line with both internal
standards and external regulatory requirements. Figure 9
shows how Process Mining contributes to these areas.

Real-Time Monitoring
Process Mining enables real-time monitoring of business
processes and automating reporting, ensuring they adhere
to predefined standards and regulatory requirements.

Transparent Process Documentation


Process Mining tools provide clear and detailed
documentation of processes as they are performed. This is
crucial during internal audits or regulatory inspections.

Standardization of Processes
By identifying deviations from processes, Process Mining
encourages standardization, which is often a key
component of regulatory compliance.

Enhanced Audit Trails


Process Mining creates detailed and transparent audit
trails of business processes, which are invaluable in
regulatory audits.

Automated Compliance Checks


It automates the compliance checking process, reducing the
need for manual audits, and minimizing human error. This
automation ensures continuous compliance with less effort.

Historical Compliance Data


It offers historical data that can be analyzed to ensure
processes have remained compliant over time.

Risk Management
Process Mining offers predictive insights that can be used
to preemptively address compliance risks before they
materialize.

Figure 9: Process Mining for regulated entities (CompTech)

Process Mining 20
4.2. Process Mining for Regulators
(SupTech)

From the perspective of regulators, Process Mining as a


Regulatory Technology (RegTech) can be a powerful tool
to enhance regulatory oversight, ensure compliance,
and foster a more transparent and cooperative
regulatory environment. By adopting Process Mining,
regulators can move towards a more data-driven,
proactive, and effective regulatory framework. Figure 10
lists points on how regulators can leverage Process
Mining.

Enhanced Oversight and Monitoring


Regulators can use Process Mining to monitor compliance
with regulations in real-time across various organizations
and automate parts of the audit process.

Improved Transparency and Accountability


Process Mining provides visibility into how organizations
execute their processes and allows regulators to pinpoint
where compliance failures occur.

Data-Driven Regulation Development


Insights from Process Mining can inform the development
of regulations. Regulators can craft more effective and
practical regulations and analyze their potential impact on
existing ones.

Risk-Based Regulations
Process Mining help regulators to identify areas that pose
higher risks of non-compliance to focus on them. It can
also be used to predict future compliance risks based on
historical data.

Standardizing Compliance Reporting


Regulators can use Process Mining to establish standard
reporting formats and procedures, making it easier to
compare and analyze data, and reduce the reporting burden
on organizations.

Collaborative Compliance
Process Mining can facilitate collaboration between
regulators and regulated organizations by providing a
common framework and language for discussing process
efficiencies and compliance and how to improve them.

Figure 10: Process Mining for regulators (SupTech)

Process Mining 21
EMERGING
TRENDS,
INNOVATIONS,
AND FUTURE
OUTLOOK

Process Mining 04
5.1. Emerging Trends and Innovations

Emerging trends and innovations in Process Mining are


shaping the future of how organizations analyze and
optimize their business processes. As technology
evolves, new capabilities are being introduced, enhancing
the power and scope of Process Mining, and making it
more accessible and applicable to a broader range of
industries and users. Figure 11 gives an overview of some
key emerging trends and innovations in this field.

Enhanced Data Analytics Capabilities


New tools are providing more sophisticated data
visualization and analytics capabilities, making it easier to
interpret complex process data.

Process Mining-as-a-Service
The rise of cloud-based Process Mining solutions is making
the technology more accessible to a wider range of
businesses, reducing the need for significant upfront
investment in IT infrastructure.

Enhanced Privacy and Security Features


As Process Mining often involves sensitive data, and with
increasing concerns about data privacy and security, features
to comply with related data regulations are being developed.

Integration with Other Business Systems


Seamless integration with existing business systems like
ERP, CRM, and BPM is increasing the value and applicability
of Process Mining.

Internet of Things (IoT) Integration


Integration with IoT devices will enable capturing machines
process data in real-time, enhancing the accuracy and
expanding the scope of Process Mining.

Cross-Enterprise Process Mining


Process Mining could be applied to entire supply chains,
providing insights across several entities, not just within
single organizations.

Democratization of Process Mining


Tools are becoming more intuitive and accessible, allowing
non-technical users to perform Process Mining without
deep technical expertise.

Figure 11: an overview of key emerging trends and


innovations in Process Mining field

Process Mining 23
5.2. The Role of Artificial Intelligence
(AI) in Process Mining
The use of AI (and its subfield Machine Learning (ML)) in
Process Mining is transformative, offering major
enhancements of existing capabilities and opening new
avenues for innovation in process analysis and optimization.
Organizations can achieve a more profound, predictive, and
dynamic understanding of their processes, leading to
significant improvements in efficiency, compliance, and
decision-making. Figure 12 illustrates how AI is playing a
transformative role in Process Mining.

Enhanced Data Analytix and Pattern


Recognition
ML algorithms excel at identifying patterns in large data
sets, enabling more efficient and accurate discovery of
process-related insights.

Anomaly Detection and Compliance


AI-enhanced Process Mining tools can identify anomalies
and deviations from standard processes in real time, which
is crucial for compliance and risk management.

Advanced Process Modelling


AI can simulate various future states of a process, allowing
organizations to evaluate the potential impact of changes
before implementing them.

User Interaction and Accessibility


The integration of Natural Language Processing (NLP)
allows users to interact with Process Mining tools using
natural language, making them more accessible to
non-technical users.

Process Optimization and Recommendation


AI can provide recommendations for process optimization
by analyzing Process Mining data and suggesting actions
to eliminate inefficiencies.

Enhanced Decision-Making
The integration of AI in Process Mining facilitates deeper,
data-driven insights, enabling more informed decision-making.

Predictive Process Analytics


AI can be used to predict future process behaviors based
on historical data, enabling organizations to anticipate and
proactively address potential issues.

Figure 12: AI’s role in Process Mining

Process Mining 24
5.3. Process Mining, Automation, and Task Mining

Robotic Process Automation (RPA) is a technology that automates routine tasks using software
bots. These bots mimic human actions to perform tasks such as data entry, report generation,
and system integration with high efficiency and accuracy. RPA is user-friendly, scalable, and
reduces the risk of human error, making it ideal for repetitive, rule-based processes in various
industries.

Process Mining has a wider scope compared to RPA, and its implementation doesn't always
involve RPA. However, it plays a crucial role in enhancing RPA projects. Not every task is suitable
for RPA, while RPA is a potent tool for automation, its success hinges on thoughtful
implementation. By visualizing and pinpointing processes primed for automation, Process
Mining aids in the effective development, testing, and deployment of RPA bots based on these
identified processes.

There are three suggested ways to use Process Mining for RPA:

Prioritizing Optimizing processes Monitoring automated


tasks for for maximum processes to ensure
automation automation value proper execution.

Task Mining is another crucial component in the landscape of business process automation and
optimization. It plays a pivotal role in the broader context of process optimization and
automation. By providing detailed insights into how tasks are executed at the user level, it
complements Process Mining and enhances the effectiveness of RPA implementations.

Task Mining focuses on capturing and analyzing user interaction data while performing their
work [19]. It collects data on how employees conduct tasks on their computers, including actions
like clicking, typing, and navigating through applications. While Process Mining provides a
macro-level view of processes across the enterprise, Task Mining dives into the micro-level
details of how individual tasks are performed.

Task Mining complements Process Mining by providing detailed insights into tasks that are not
captured in system logs, which is where Process Mining primarily draws its data from.

The insights from Task Mining can be used to further refine RPA implementations. By
understanding the nuances of how tasks are performed, RPA bots can be programmed more
effectively to mimic human actions. Figure 13 shows some applications of Task Mining.

Process Mining 25
Identifying Automation Opportunities
Task Mining helps in identifying repetitive, rule-based tasks
performed by humans that are ideal candidates for RPA.

Training and Development


Insights from Task Mining can be used to improve training
programs, showing where employees struggle or where
processes are not intuitive.

Benchmarking and Performance Analysis


Organizations can use Task Mining to benchmark
performance and analyze how different approaches to the
same task affect outcomes.

Improving Efficiency and Accuracy


Automating the tasks identified through Task Mining
increase the efficiency and productivity and helps in
reducing errors that can occur in manual processes.

Tasks Standardization
It can reveal variations in how different employees perform
the same task, offering opportunities for task
standardization and optimization.

Error Reduction
Task Mining helps identify areas prone to human error,
allowing to implement measures to reduce these errors,
which might improve quality and compliance.

Customer Experience Enhancement


By streamlining and optimizing task performance,
businesses can improve response times and service quality,
directly impacting customer satisfaction.

Data-Driven Decision Making


Task Mining provides analytics that can guide
decision-making in tasks improvements and RPA
strategies.

Figure 13: applications of Task Mining

Process Mining 26
CONCLUSION AND
RECOMMENDATIONS

Process Mining 04
In this paper, a thorough exploration of Process Mining has been undertaken. The study has
focused on comprehending its multifaceted impacts and potential, and regorously investigates
how Process Mining not only transforms existing business processes but also provides leaders
with essential insights for future-proofing their operations. By examining Process Mining from
diverse perspectives – including its applications, landscape, trends, and future potential – key
insights have been gathered. These insights are of great value to business leaders and
decision-makers across various industries. The exploration into Process Mining aims to reveal
the subtle ways this technology can be utilized to effect significant enhancements in
organizational performance and strategic outcomes.

Drawing on the insights from this study, the following strategic recommendations are presented
for organization’s leaders (Figure 14). These recommendations are intended as a guide to
effectively harnessing Process Mining to enhance organizational operations and strategy.

Phased Implementation Integration with Existing Systems


Start with a phased approach to implementing Ensure seamless integration of Process Mining
Process Mining, focusing initially on tools with existing IT infrastructure. Prioritize
high-impact areas to demonstrate value and solutions that offer compatibility and can
build internal support. leverage data from current systems.

Skill Development and Training Data Quality and Governance


Invest in training and skill development for Maintain a strong focus on data quality and
employees. Understanding how to interpret governance. The effectiveness of Process
Process Mining data and act on insights is Mining is heavily reliant on the accuracy and
crucial for maximizing its benefits. consistency of the underlying data.

Customization and Adaptation Continuous Monitoring and


Customize Process Mining solutions to fit
Improvement
Use Process Mining as a tool for continuous
specific business needs and processes. Avoid a
improvement. Regularly review process
one-size-fits-all approach and adapt the tool to
performance, identify new areas for
address unique operational challenges.
optimization, and adapt strategies as needed.

Compliance and Risk Management Stay Informed on Emerging Trends


Leverage Process Mining in regulatory Keep abreast of emerging trends and
compliance and risk management, particularly innovations in Process Mining to continually
for businesses in heavily regulated industries. enhance its application and stay ahead in a
rapidly evolving market.

Figure 14: recommendations to use Process Mining in an organization

In conclusion, this paper underscores the pivotal role of Process Mining in reshaping the
contemporary business landscape. For leaders and executives, the adoption of this
technology is not just a step towards innovation but of strategic importance. Process
Mining emerges as a key driver of efficiency, transparency, and competitive advantage,
offering a clear pathway to transforming data into actionable insights. It is a technology
that not only addresses current operational challenges but also equips organizations to
navigate the complexities of the future. Thus, for any business aiming to excel in an
increasingly data-driven era, embracing Process Mining is a decision of strategic
foresight and operational excellence.

Process Mining 28
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Process Mining 04
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Process Mining 30
www.cst.gov.sa

Process Mining 04

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