Process Mining with SAP Signavio: Turning Operational Data into Insights

Organizations frequently collect information about their processes through workshops, interviews and documentation. The effectiveness of these approaches is often limited because they can be very subjective and lead to incomplete information. The introduction of process mining creates a data-driven method of analyzing the event logs to better understand how processes really operate in the real world. This transition from assumption to fact is very important in the current business environment.

With SAP Signavio Process Intelligence, organizations can visualize how each process operates in real time and across all of their systems and departments. The visualization of execution paths, performance metrics, and variations gives organizations unprecedented insights into real-time process execution enabling faster decision-making, targeted improvement opportunities and greater commitment to reducing the risks associated with transformation activities. Process mining turns raw operational data into actionable information allowing organizations to optimize their operations, strengthen their compliance and improve the customer experience on a large scale.

What Is Process Mining and Why It Matters

Through the use of actual event information from enterprise systems, Process Mining provides an analysis of the actual flows of processes. Process Mining differs from traditional process modeling because it provides a true representation of the way a process actually works rather than a representation of the way an organization would like a process to work; This difference is very important to find the areas where improvements may be made and where there are areas of inefficiencies.

Organisations use Process Mining to:

• Identify the true end to end process flows.
• Locate areas of delay or bottlenecks.
• Identify areas of rework.
• Identify areas where the process has deviated from the standard process.

Organisations can measure performance using factual data instead of using guessing and having disagreements on how to interpret the analysis. SAP Signavio Process Intelligence is a tool for using Process Mining in an easy way by providing visual representation of the data for Users in both Business and IT roles. The shared understanding of Process Mining by both Business and IT users allows for Improved Collaboration and Faster Implementation of Process Improvements. Process Mining is the best way for organisations to achieve their goals of Transparency, Accountability, and Continuous Improvement.

SAP Signavio Process Intelligence Overview

SAP Signavio Process Intelligence is a key element in the SAP Signavio portfolio and will provide you with insight into how well your business processes operate. This is accomplished by mapping both process models to actual execution data so that you have a complete feedback loop from design through to execution and vice versa.

Key Features:

• The ability to automate the discovery of processes based on data stored within large information systems.
• Understanding how processes behave across multiple variants and identifying what is driving top performance versus the bottom.
• The ability to perform conformance checks to expected or desired “target” processes.
• The ability to determine why processes are failing or why delays are occurring based on the available data (root cause analysis).

The technology allows you to gain visibility into all departmental functions throughout the enterprise, whether using SAP systems or not. SAP Signavio Process Intelligence provides users with tools for creating interactive dashboards and visual process maps that provide easy access to process information for all types of stakeholders. Data is linked to process information enabling users to see how they can look beyond individual performance metrics to a “big-picture” view of process performance – creating the foundation for data-driven change and improving operational excellence.

Discovering Real Process Variants and Bottlenecks

Through process mining, it is possible to determine the various ways that an organisation executes its processes. Due to the nature of an organisation, it is not unusual for processes to take multiple forms when they are executed. These multiple forms may be as a result of the nature of the process; or the intervention of humans into an automated process’ execution; or due to the constraints that are placed on an automated process by the systems that execute them.

Process mining allows SAP Signavio to provide:

• Visualisation of each of the various ways a process can be executed, as well as the frequency of execution.
• Assessment of their execution paths for the potential for increased cost or risk.
• Identification of bottlenecks and recurring delays.
• Identification and analysis of the root causes of process complexity.

By determining where and how processes can take on additional forms, a business can focus its improvement efforts on the specific areas that will yield the greatest benefit. Due to this level of transparency, organisations can make visible bottlenecks and remedy the underlying problems rather than attempt to address the symptoms of the bottlenecks. This will permit businesses to streamline their operations, reduce waste and increase predictability.

Measuring Performance with Process KPIs

Data from actual execution of a process can be used to determine a company’s performance against objectives by defining these KPIs as a means for measuring the process. SAP Signavio also provides pre-configured and custom KPI’s to meet the specific objectives of both the business and the organisation, as well as their operational priorities.

There are many examples of common KPIs used for assessing processes, including:

• Cycle time and throughput
• Reworking and exception rates
• Compliance and conformance metrics
• Cost and use of resources.

All of these KPIs enable organisations to evaluate how effectively their process is working, and where they can improve. Additionally, SAP Signavio allows for drill-down capabilities; users can view the specifics of the KPIs at different detail levels. When linked to a specific process step, KPIs provide organisations with visibility into which areas would benefit most from process improvement activities.

By measuring performance as opposed to responding to problems after they arise, organisations are able to move from a reactive to a proactive approach toward process improvement.

Supporting Compliance and Risk Management

Process mining allows you to review policies/controls for compliance with your defined process. Process mining provides a governance, risk & compliance (grc) value proposition. There are many benefits of using process mining and sap signavio as your governance, risk and compliance application.

Benefits specifically related to compliance include:

• the ability to identify whether or not policy violation/control exists.
• the ability to identify compliance and non-compliance process variants
• provides evidence-based audit support
• ongoing monitoring and auditing of compliance status.

Taking a proactive stance towards Monitoring & Auditing not only reduces the need for Periodic Audits, but also Reduces the amount of time needed (Manual reviews) to identify and mitigate Risk. Using SAP Signavio, an organization can embed Compliance Information directly into the process to integrate compliance, reduce the requirement for manual reviews & improve Governance. Using Process Mining gives an organization the ability to Manage and Mitigate Risk while being agile and transparent operationally.

Enhancing Transformation and ERP Initiatives

Process mining is particularly useful when organizations undertake large-scale transformation programs or projects such as an ERP modernization or migration of systems. Organizations employ SAP Signavio to gain an understanding of their current business processes prior to initiating the redesign or migration process.

Process mining assists transformation efforts by:

1. Creating an objective baseline based on evidence.
2. Identifying which processes can become standardized.
3. Removing unnecessary customizations and reducing overall process complexity.
4. Monitoring how well the business performs after complete transformation has occurred.

SAP Signavio gives organizations the ability to utilize actual data to help them determine which processes should be redesigned, automated, or eliminated altogether. Furthermore, SAP Signavio provides organizations with an ongoing monitoring capability, which helps to ensure that organizations will realize the anticipated benefits of their transformation.

Organizations that utilize process mining during their transformation will significantly reduce the risk involved and accelerate the ability to derive value. Therefore, process mining allows organizations to engage in transformation initiatives from a place of actual operations versus speculation about what was performed previously.