process mining - a new governance approach
DESCRIPTION
This Slide Deck was presented at the annual international conference of itSMF Slovensko on May, 6th. in Bratislava. It gives an introduction into Process Mining as a new useful approach to discover real life processes in IT Service Management end everywhere else where processes are driven by tools providing log file information. Many thanks to Anne Rozinat http://fluxicon.com for the graphs and information she provided to itSMF Austria. Many thanks to Celonis for providing a demo application. Please recognize the further links and recommendations at the end of the presentation.TRANSCRIPT
The IT Service Management Forum (itSMF) is anindependent, international, non-profit organization of IT Service Management (ITSM) professionals worldwide. Around the operation of IT services the itSMF collects, develops and publishes “best practice”, supports education and training, discuss the development of ITSM tools, initiates advisory ideas about ITSM and holds conventions.
The Austrian itSMF Chapter was founded 2002.
Join our discussion about ITSM topicson http://itsm-blog.at.
Why us?This is an independent best practice presentation
2Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Ing. Martin Pscheidl, MSc, MBA, CMC
30 years in IT business 15 years in ITSM Engineer, MSC, MBA - all in ICT Certified Management Consultant ITIL® Expert Distinguished Professional in
Service Management DPSM(CM)
Chair of itSMF Austria Manager at KPMG IT Advisory Management Consulting
Please find my profile on XING and LinkedIn …
Why me?I like sharing experiences
3Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
ITIL® is a Registered Trade Mark of AXELOS Limited IT Infrastructure Library® is a Registered Trade Mark of AXELOS Limited Fluxicon© and Disco are Trademarks by Fluxicon Process Laboratories Celonis and Celonis Process Mining are Trademarks by Celonis GmbH
All other brand and product names are trademarks or registered trademarks of their respective holders.
All materials have been prepared for general information purposes only to permit you to learn more about the experience of our association members and their thoughts and best practices.
The information presented is not legal or technical advice, is not to be acted on as such, may not be current and is subject to change without notice.
Trade Mark AcknowledgementWe can’t live without these companies
4Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Process Mining - Discovery, Conformance and Enhancement of Business Processes
Written by Wil van der Aalst, 2011, XVI, 352p. 184 illus., 6 illus. in color. ISBN 978-3-642-19345-3
Wil van der Aalst is a full professor at the Department of Mathematics & Computer Science of the Technische Universiteit Eindhoven (TU/e), The Netherlands, where he chairs the Architecture of Information Systems (AIS) group.
Prefaceif you are interested in the theory read this book
5Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Process mining is a process management technique that allows for the analysis of business processes based on event logs.
The basic idea is to extract knowledge from event logs recorded by an information system.
Process mining aims at improving this by providing techniques and tools for discovering process, control, data, organizational, and social structures from event logs.
Process Mining DefinitionUse the log data in your tools to analyze your processes
6Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Source wikipedia.org
Step 1 Step 2
Process Mining Techniquea step by step approach
7Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Sequence 1 Sequence 1 Sequence 2
Step 3
Process Mining Technique (cntnd.)extract all sequences from log
8Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Sequence 1 Sequence 2 Sequence 3
• To find all your sequences you have to analyze all Activities in your log file.
• The identifiers are your case numbers. Eg. internal uid or the incident number of your incident record.
Step 4
Process Mining Technique (cntnd.)distill all activities
9Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Sequence 1 Sequence 2 Sequence 3
• Now we’ve found all activities within all sequences
• But how is the process really running?
Step 5
Process Mining Technique (cntnd.)build the process
10Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Sequence 1 Sequence 3
• Combined process of sequence 1 and sequence 2
Sequence 2
Step 6
Process Mining Technique (cntnd.)Visualize how things are running
11Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
Sequence 1 Sequence 3
• That’s the visualization of your process!
Sequence 2
Another dimension in a typical ITSM tool log is the time You can use it e.g. to analyze the transfer time of your tickets
Process Graphto visualize your processes
12Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Celonis
Process mining, just like data mining, is a generic technology and can be applied in many different ways.
This is an advantage, but at the same time it makes it difficult for you to understand what exactly the added value would be for your situation.
Should you be interested in process mining and learn more about it? Which kinds of processes can be analyzed with process mining? What benefits would it bring?
We give you a framework for the most common process mining use cases, so that you can see where you fit in ..
Should you use Process Mining and Why?Several questions about this new methodology
13Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Fluxicon
One way to look at the processes that can be analyzed is to use Porter’s Value Chain Analysis framework (Source: Porter, 1985).
This figure shows an overview of the processes that exist within and outside of an organization.
Which Processes Can be Analyzed ?any processes that are supported by an IT system
14Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Typical common examples: Sales processes (e.g. CRM system) Customer services (e.g. CRM, Complaints Management system) Material management (e.g. Warehouse Management System)
There are also core processes that are company or industry specific, for example: Loan application processing at a bank Regulation translation process in the EU Diagnosis and treatment processes in a hospital Claim processing in an insurance company Government handling subsidy applications Software development for a software vendor
Primary processesmany companies have these in common
15Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Human Resources processes (e.g., supported by a case management system)
Purchasing processes (e.g., supported by an ERP system) IT Service Management processes
(e.g., supported by an ITSM system) Service desk processes Incident management Service level management Asset & configuration management Change management Self service Service Fulfillment and all other processes, too ..
Support processesSecondary processes to run the company
16Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Usage processesIt is essential to understand how customers use products
Supplier processesCompanies that have a high dependency on external suppliers should align their processes to be successful.
Outsourced processesAn increasing number of non-core processes are outsourced to specialized service providers who can offer these services more efficiently and at cheaper costs. IT Services are often at least partly handled by external service providers.In times of increasing numbers of consumed Cloud Services integrated processes are essential.
All other processessupported by IT can be analyzed
17Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
In this service process a bottleneck with one of the forwarding companies was detected
Common Use Case 1Finding bottlenecks
18Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Once the bottleneck is discovered, you can then change the process or allocate resources to resolve this bottleneck.
Source Fluxicon / Screenshot of the Process Mining Software Disco in performance analysis view.
There are often additional activities that are carried out but which actually should not occur, or at least not so often
Common Use Case 2Reducing waste
19Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Removing waste in a process provides opportunities for significant cost savings.
Source Fluxicon / Screenshot of the Process Mining Software Disco in frequency analysis view.
To see whether process changes are actually effective, the process mining analysis can be repeated and performed in a regular manner.
Common Use Case 3Verifying the effectiveness of process changes
20Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
The Figure shows a fragment of an incident management process before (left side) and after (right side) of a process improvement.
Source Fluxicon
To see whether process changes are actually effective, the process mining analysis can be repeated and performed in a regular manner.
Common Use Case 4Ensuring compliance
21Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Change requests went directly to implementation although it is required that each request be analyzed and explicitly approved before being implemented.
Source Fluxicon
Process mining follows the options known from business process engineering and goes beyond with feedback to business process modeling: Process Analysis
filters, orders and compresses log-files for further insight into the connex of process operations.
Process Design may be supported by feedback from process monitoring, which means basically action or event logging
Process Enhancement uses results from process miningbased on logging for triggering further process operation
Process Governancedriven by Process Mining
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• enhance
• (re)design
• analyze
Process mining is a new technology that enables many exciting application scenarios.
Most business areas perform their business processes with the support of IT systems, which makes process mining possible because the data already exists.
Often there is already manual work being carried out to look at these data, with dashboards, or with statistical tools like Excel.
However, process mining makes it easy to analyze the data from a process-oriented perspective.
The results are fact-based, visual, and enable exploration in a way that creates a process transparency at a whole new level, and much more quickly compared to manual approaches.
ConclusionUse your process data to support process governance
23Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter, Free Press United States, 1985 (ISBN 0684841460)
High Level Approach to Process Mining by Preben Ormen, 2014, URL: http://prebenormen.com/process-improvement/high-level-approach-process-mining
Accelerate DMAIC using Process Mining by Frank van Geffen and Rudi Niks, Business Process Intelligence Challenge 2013, CEUR proceedings, URL: http://ceur-ws.org/Vol-1052/paper5.pdf
Case Study: Process Mining to Improve a Service Refund Process by Anne Rozinat, 2012, URL: http://fluxicon.com/blog/2012/11/case-study-process-mining-to-improve-a-service-refund-process/
Business process analysis in healthcare environments: A methodology based on process mining by Álvaro Rebuge and Diogo R. Ferreira, Information Systems, Volume 37, Issue 2, Pages 99-116, 2012.
Process Mining – Ana Aeroportos de Portugal by Alberto Manuel, 2012, BPTrends, www.bptrends.com Case Study: Process Mining to Compare Procure-to-Pay Processes in Different Countries by Ard-Jan
Vethman and Anne Rozinat, URL: http://fluxicon.com/blog/2012/11/case-study-process-mining-to-compare-procure-to-pay-processes-in-different-countries/
Donna Stewart, Suncorp Executive Manager, talks about process mining, Interview by Marcello La Rosa, YouTube, URL: http://www.youtube.com/watch?v=_UUiwkBMn7g
Reinvent Your Business With Business Process Mining by Steve Kilner, IBM Systems Magazine, 2013, URL: http://www.ibmsystemsmag.com/power/Systems-Management/Performance/process_mining/
The case for process mining in auditing: Sources of value added and areas of application by Mieke Jans, Michael Alles, and Miklos Vasarhelyi, International Journal of Accounting Information Systems 14, 201, pages 1–20
Process Mining Software Disco. URL: http://fluxicon.com/disco/ Process Mining Software Celonis. URL: http://celonis.de
ReferencesThere exists a growing number of posts in blogs
24Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Visit our German speaking blog http://itsm-blog.at
or our homepage http://www.itsmf.at
itSMF Österreich
Kaiserstraße 14/2
1070 Wien
+43-1-5223636-13
or write an email to me
Questions?Feel free to come back to us!
25Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Process Mining Tool Screenshot 1Incident Routing Support Groups 100% Coverage
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Source Celonis
Process Mining Tool Screenshot 2Incident Routing Support Groups 80% Coverage
27Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Celonis
Process Mining Tool Screenshot 3Incident Routing Support Groups 56% Coverage
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Source Celonis
• After reduction to 56% coverage only the Service Desk Support Group left on the Graph
• 73.069 tickets were opened here• 55.682 tickets ended here• And 13.015 times the ticket was re-routed
to the own organization
Process Mining Tool Screenshot 4Incident ended in the Server Administration 92% Coverage
29Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
Source Celonis
Process Mining Tool Screenshot 4Incident passing Plant IT Service Desk 92% Coverage
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Source Celonis
• Filtered all tickets passing one special support unit to see how process flows
Process Mining Tool Screenshot 4Incidents sent to Communication provider
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Source Celonis
• With and without flag “VIP”
• With and without flag “VIP”
• 3 times more communication incidents with VIP customers