L08 - Process Mining Flashcards
Today’s Challenges for Businesses
Customer expectations, shorter product cycles, mass customization, digital transformation, disruptive technologies, global supply chains
What is a Process?
Processes are the engine of every experience.
A business process is a collection of related, structured activities or tasks that in a specific sequence produce a service or product.
Process Mining
Process mining is an objective and complete way to analyze processes within in a firm. It helps immediately and is continuously enhancing.
It has an interdisciplinary approach: It takes process management, automation, process control and improvement and operations management from process science and combines it with data mining, statistics, machine learning, databases and predictive analytics from data science.
Process mining is a data analytics technology to reconstruct, analyze and improve business processes on log data from transactional IT systems. Process mining bridges the gap between model-based process analyses and data-centric analysis techniques. In today’s universe data is logged everywhere and every time. As businesses heavily rely on IT Systems, they store much data in event logs.
An event log contains at least three columns: case ID, activity name and timestamp.
Process Mining Techniques
Discovery: uncovers how processes are executed by replicating a process model from the event log.
Conformance checking: compares the ‘as-is’ process from the log data with the ‘to-be’ model.
Enhancement: uses insights from discovery and conformance to improve the process.
Example in the YouTube Video.
Business Impact of Process Mining
Efficiency: Perfect Order, Automation
Speed and Agility: On-Time Delivery
Quality and Fulfillment: Rework, Rejections
Compliance: Should-be vs. As-is, Process monitoring
Process Mining reduces process costs, increases revenue, reduces working capital and improves risk management.
Example Lufthansa and the Slides with PROMOTE (PROcess Mining for OperaTional Excellence)
