Process Mining in Digital Transformation

"Process mining is the key to unlocking true operational insights in an era where assumptions can derail even the most ambitious strategies." – Adapted from insights by Wil van der Aalst, the "Godfather of Process Mining"

Imagine sitting in a boardroom, staring at reports that promise efficiency but deliver only half the story. You've invested millions in digital tools, yet processes drag on, costs creep up, and customer satisfaction dips. What if there was a way to see exactly what's happening beneath the surface— not what you think is happening, but what actually is? That's where process mining in digital transformation comes into play, acting as the x-ray for your organization's operations. As a consulting partner at ICX, I've seen firsthand how this technique turns vague hunches into actionable intelligence, propelling companies toward faster growth and sharper competitiveness.

Let's start by clarifying what process mining really is. It's a data-driven technique that dives into event logs and other digital traces from your IT systems to uncover, track, and refine real-world business processes. Think of it as creating a live map of how work flows through your organization, showing not just the ideal path but every detour, loop, and snag along the way. By pulling from electronic footprints in systems like ERPs or CRMs, it builds visual models complete with variations, subtle differences, and hard stats. This isn't about guesswork; it's about revealing inefficiencies, bottlenecks, and untapped opportunities that hide in plain sight. In tangled setups, like those massive enterprise resource planning environments, process mining tools extract data effortlessly, offering ongoing oversight and even automated suggestions for fixes. It's like having a silent auditor who never sleeps, always ready to highlight where things go off track.

Now, why does process mining stand out as a key lever for accelerating digital transformation? Digital transformation isn't just about slapping on new tech—it's a deep shift in how businesses run, create value, and respond to market shifts. Process mining steps in as the bedrock, delivering unbiased, up-to-the-minute views into your operations. It shatters departmental silos, spotlights real issues, and steers meaningful upgrades. Without it, you're building on sand: efforts based on outdated assumptions lead to wasted resources and stalled projects. Instead, it grounds your initiatives in solid data, helping prioritize where to automate, streamline, or reinvent. For example, it enables what-if simulations, accurate ROI forecasts, and forward-looking analytics that shape smarter choices. In a world buzzing with AI, IoT, and smart automation, process mining ensures these tools land where they'll make the biggest splash, scaling your digital ambitions without the usual pitfalls.

Diving deeper, there are several compelling reasons why process mining accelerates transformation. First off, it provides deep visibility into processes, exposing the true picture that old-school methods like employee interviews or manual audits often overlook. Bottlenecks, redundant steps, or duplicated efforts pop out clearly, paving the way for quicker innovations and redesigns. In competitive markets where efficiency rules, this translates to a real edge—faster operations, better quality, and happier customers. Take order processing or risk assessment: optimized flows mean you hold onto business that might otherwise slip away. Then there's the empowerment of your workforce through standardization. By automating routine drudgery and unifying workflows, it cuts errors, ramps up productivity, and lets your team focus on creative, high-impact work. Finally, it serves as the foundation for any transformation push, assessing if processes are ripe for automation, maximizing returns on digital spends, and charting a clear path forward. Without this, you're navigating blind; with it, every step is informed and purposeful.

To make this even more concrete, let's look at the three primary ways process mining propels digital transformation forward. Based on industry insights, here are the core mechanisms that drive faster, more effective shifts.

The first way is by improving core business functions. This involves streamlining vital operations through pinpointing inefficiencies and their root causes, which leads to redesigned processes and slashed cycle times. In manufacturing, for instance, it fine-tunes production lines to minimize downtime; in retail, it sharpens supply chains and inventory management for smoother flows. A standout example comes from Sanofi, the pharmaceutical giant. They harnessed process mining to revamp their HR job change process, slashing the median cycle time by 87%—from eight days down to under one. This was achieved through targeted redesigns, intuitive dashboards, and a global automation rollout spanning 70 regions. The result? Not just speed, but consistency and scalability that rippled across the organization.

Next up is increasing visibility and transparency. Process mining generates precise models from actual data trails, sidestepping human biases or errors that creep into manual reviews. It uncovers hidden gems for improvement without needing endless surveys or meetings. This fuels design thinking sessions where teams brainstorm innovations, strip out needless steps, and ramp up automation. It also flags odd transactions or chokepoints, laying the groundwork for better customer experiences. Imagine detecting delays in customer onboarding that you never knew existed—now you can fix them before they erode loyalty.

The third mechanism is enhancing automation. By spotting repeatable patterns, it primes processes for robotic automation, blending seamlessly with IoT and AI for systems that adapt in real time. This prioritizes efforts on high-ROI areas, merging operational data for a complete view of user actions and cutting reliance on manual labor. With machine learning layered in, continuous monitoring keeps things flexible, evolving as needs change. It's not a one-and-done; it's a living system that grows with your business.

Integrating process mining into your digital transformation yields benefits that build on each other, creating a compounding effect. It excels at problem identification and resolution, swiftly highlighting bottlenecks, rework loops, and deviations so you can address them head-on. Real-time monitoring paired with predictive insights lets you track key performance indicators, test scenarios, and forecast results to continually refine workflows. Then there's the transparency in ROI and business cases—armed with factual data, you can build ironclad justifications for investments and showcase clear value to stakeholders. Simplified roadmaps emerge from end-to-end visibility, aiding agile planning and smooth scaling as business needs shift. Plus, it bolsters security and standardization: a holistic view strengthens cybersecurity measures, while consistent processes minimize errors and risks.

To truly maximize these gains, many organizations turn to Centers of Excellence (CoEs) for process mining. These dedicated teams pool expertise and champion adoption across the board. From real-world implementations, we've learned that CoEs dramatically amplify ROI—companies with them are 8.8 times more likely to see positive returns. They deliver heightened transparency for 92% of users, cost savings for 75%, and quicker automation for 57%. Success hinges on several factors. Executive sponsorship tops the list, with 94% of thriving CoEs backed by a high-level champion who aligns strategies and locks in resources. Building a qualified, committed team is next—scale it to your maturity level, starting with under five full-time equivalents for beginners and growing to 20 for enterprise-wide efforts. Roles might include a CoE lead, data analysts, and subject matter experts. Business knowledge and engagement are crucial too; loop in SMEs for deep process insights and tackle barriers like disinterest with compelling stories. Change management and community building are emphasized by over 90% for smooth adoption—deploy playbooks for communication, training, and spotlighting successes. Set up the CoE early, right after acquiring tools, and prioritize vertical expansion into new use cases while training teams for independence. A centralized or hybrid model works best for 67%, ensuring efficiency. Finally, focus on execution excellence, evolving from basic support to comprehensive transformation guidance, always tying back to strategic priorities.

Real-life success stories underscore how process mining serves as a key lever for accelerating digital transformation. Beyond Sanofi, consider Siemens, the engineering powerhouse. They applied process mining to their procurement operations, uncovering variances in supplier interactions that were inflating costs by millions. By mapping out actual flows, they standardized approvals and automated routine checks, cutting procurement cycles by 40% and boosting supplier reliability. This not only saved money but aligned their digital tools with strategic goals, enabling predictive maintenance integrations that prevented disruptions. Another compelling case is from Vodafone, the telecom leader. Facing customer churn due to sluggish service resolutions, they used process mining to dissect their support processes. The insights revealed hidden bottlenecks in inter-departmental handoffs, leading to AI-driven rerouting and automation that reduced resolution times by 65%. This transformation didn't just retain customers; it opened doors to new revenue streams through personalized upselling, all powered by data-backed decisions.

>> Mapping friction micromoments to reduce churn <<

In the banking sector, ING Group leveraged process mining to overhaul their loan approval workflows amid digital shifts. Traditional methods masked delays from manual verifications, but process mining exposed them, allowing for blockchain integrations and AI assessments that sped approvals from weeks to days. The outcome? A 50% drop in operational costs and a surge in customer satisfaction scores, positioning ING as a digital frontrunner. These stories aren't anomalies; they're proof that process mining in digital transformation delivers measurable wins, from efficiency gains to innovation sparks.

If you're nodding along, thinking this could reshape your own operations, why not take the first step? At ICX, we're here to guide you through integrating process mining into your strategy. Reach out today to explore how we can tailor a process mining approach that fits your unique needs and accelerates your digital journey.

Shifting gears a bit, let's talk about the Target Operating Model (TOM) and why it's intertwined with process mining in digital transformation. Broadly, a TOM outlines how your organization will operate in the future to achieve strategic goals—it's the blueprint for aligning people, processes, and technology. Its core functionalities focus on enhancing efficiency, empowering teams, and making critical tasks more manageable to gear up for success. This includes defining roles, streamlining governance, and integrating tools that support agile decision-making. A strong TOM identifies and addresses standalone single-department applications that automate traditional tasks but often conceal hidden workflows—like approvals, follow-ups, and coordinations—that create dynamic bottlenecks. Through process mining, these shadows come to light, revealing opportunities to migrate them to lighter, more efficient solutions. For instance, shifting to automated flows within your CRM, low-code apps, ERPs, or even AI agents can eliminate redundancies and foster seamless integration.

This disconnect between technological systems and the actual flow of information has profoundly impacted the corporate world. In many companies, siloed apps lead to fragmented data, slowed responses, and missed synergies, stifling growth and innovation. We've seen firms lose market share because outdated workflows couldn't keep pace with digital demands, resulting in higher costs and lower agility. But when boards and C-suite executives arm themselves with knowledgeable decision-making—fueled by process mining insights—they turn the tide. They spot trends early, allocate resources wisely, and drive growth through informed strategies. For example, data-driven boards have reported up to 20% higher revenue growth by prioritizing transformations that address real pain points, as noted in a Harvard Business Review article on executive analytics.

At ICX, we ensure success by leveraging proven methodologies, world-class AI-powered process optimization tools, and relevant best practices frameworks like APQC's Process Classification Framework. Our customer-centric approach combines these with our expertise in pricing and revenue, customer experience, marketing and sales, digital transformation, and operational efficiency. Powered by efficiency, optimization, automation, and measurement, we deliver outcomes like attracting new customers, converting opportunities, retaining loyalty, enhancing service, and boosting profits. Whether developing a Digital Transformation Maturity Model or mapping processes, we guide you every step.

>> APQC el recurso olvidado para beNchmarks <<

To remain competitive in today’s fast-evolving digital landscape, organizations must establish a Digital Transformation Office to centralize and drive the Operation Model update (TOM) in order to be aligned with the business model strategy and the adoption of innovation efforts. A well-structured DTO, led by a Chief Transformation Officer and supported by cross-functional teams, can align technology with business goals, foster a culture of continuous improvement, and leverage the adoption of emerging technologies to create new growth opportunities. By prioritizing experimentation and data-driven strategies, a DTO positions the company as a market leader, ready to adapt to changing customer demands and industry disruptions. Start your digital transformation journey today by setting up a DTO to unlock your organization’s full potential. Establish a DTO to ensure digital transformation is a collective effort.

As we wrap this up, remember that process mining isn't a nice-to-have—it's the accelerator your digital transformation needs. From revealing hidden inefficiencies to enabling smarter automation, it empowers leaders like you to make decisions that drive real growth. If you're ready to see how process mining in digital transformation can elevate your organization, contact ICX today. Let's chat about crafting a customized plan that harnesses our five powerful paths and four growth drivers to propel your success.