Technology is finding its way into all aspects of our lives and businesses are going through a real digital transformation. It’s all about using technology to make them work faster, smarter, and to become better at handling everyday challenges.

In this fast-moving world, companies need tools that help them stay ahead, and this is where process mining comes in. In short, it analyzes data from the company’s systems to see how it works and then it uses that data to spot problems, improve efficiency, and help make better decisions.

In this quick article, we’ll break down how process mining works, how it speeds up digital transformation, and how you can use it.

Process Mining: Definition and Overview

Before we discuss how you can use it, let’s make sure everyone understands business process mining.

Process mining is a method/tool that helps companies understand how their operations really work (in intricate detail).

It does this by analyzing event logs from systems like ERPs or CRMs to create visual maps of business processes. This is a huge improvement compared to older methods, where companies relied on manual observations or interviews to figure out how their business processes flowed. Instead of guessing, process mining uses real data to show what’s happening.

The concept for it comes from data science and business process management (BPM). It’s more accurate and way more efficient to analyze business data this way because the information is real-time.

Here’s how it works: when a company does their tasks, they leave digital traces (e.g., timestamps from orders or customer interactions). Business process mining takes these traces and creates a visual representation of how tasks go through the system.

There are 3 types of process mining: discovery(which builds process models from scratch based on data), conformance (which checks if processes follow the intended model or not), and enhancement (which improves processes using real-time insights).

The three types of process mining are adopted into businesses in the following percentages: discovery 38%, enhancement 28%, and conformance 34%, with an increased trend toward enhancement where it’s estimated that this type will reach up to 42%, thus exceeding discovery which is the most popular one at this time (this is according to a Gartner 2021 report).

How Business Process Mining Speeds Up Digital Transformation

Digital transformation is all about using technology to improve how a business works, from everyday tasks to customer experiences.

According to Market and Markets, the global process mining market size is expected to grow from 185 million (USD) in 2018 to a staggering 1.42 billion (USD) by 2024. This is at a Compound Annual Growth Rate (CAGR) of 50% during the forecast period.

Business process mining can speed this up because it can help you see where you can work smarter, not harder. It supports key transformation goals like cutting costs, becoming more flexible, and creating better experiences for your customers.

If you use process mining, you can pinpoint the processes that slow you down or waste resources. But that’s not all; another big benefit is that this tool will give you insights based on up-to-date data. Instead of guessing or using information that’s outdated, you get accurate info that will help you make better decisions. When you combine this with AI or machine learning, process mining can even predict future problems and suggest how to handle them before they even happen.

And speaking of problems – you don’t want to go against any regulations, and process mining can help you out there, too. It makes sure you’re staying compliant, which can be tricky if you’re starting to use new technologies.

Process mining, however, makes it easier to track and make sure everything runs smoothly while also reducing risks.

4 Ways to Use Business Process Mining in Digital Transformation

Business process mining is a game-changer if you want to improve your business operations because you can use it in many ways to improve the way your company works.

1. Improving Customer Experience

Process mining will help you figure out where customers have issues, like delays or confusing steps.

Say you have an online store – you can use process mining to see why customers abandoned their carts at checkout. If you fix this problem, the entire checkout process becomes smoother, your customers are happier and more loyal to your brand, and in the end, it means more revenue for you.

It’s also important to notice that 78% of automation implementers say that process mining is critical in enabling their robotic process automation (RPA) efforts, thereby directly enhancing customer interaction points (according to a 2020 Process Mining Sector Scan).

2. Making Supply Chains Simpler

Supply chains have a lot of moving parts, from suppliers to deliveries, and a lot of things can go wrong and slow you down.

Process mining gives you a clear view of what’s slowing you down, whether it’s late shipments, issues with inventory, etc. When you fix these bottlenecks, you can save money and get products to your customers faster.

QRP research shows that using process mining during RPA implementation can increase the value of the business by a massive 40%, while reducing RPA implementation time and project risk by 50% and 60%, respectively.

3. Improving IT System Regulation

When you upgrade or add new IT systems, you usually encounter a few hiccups, but process mining helps spot issues that slow the integration down.

For instance, if you install a new customer management system, process mining can show you where the new setup is causing delays or errors.

In a case study by Jan Claes, it was reported that providing factual process data for further diagnosis is the most prominent benefit of process mining (key for IT system optimization), according to 61% of respondents.

4. Ensuring Compliance

Everybody has to stay compliant with laws and regulations, and as much as you try to, it’s easy to let something slip.

Take a bank or any financial institution, for example – they have to follow strict rules, especially when it comes to money laundering. Process mining can keep an eye on transactions and alert the company if something looks off. It can check that a business follows all required steps during large transactions and help avoid fines.

19% of executives see significant opportunities in control/audit-related activities via process mining (according to QPR).

Conclusion

Process mining can show you exactly where your company has issues so you can fix them on time.

It can help improve pretty much all aspects of your business and make you become more efficient, cut costs, and keep up with the pace of today’s digital world.