Process Mining - a new governance approach

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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.

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  • It is astonishing that the service providing process (= servuction process), i.e. the process for effectuating & rendering a service has not been described although this process must be run whenever an authorized service consumer explicitly triggers a singular & unique service. In the course of the respective real-time service transaction, the triggered service must be seamlessly & reliably rendered explicitly to the triggering service consumer so that he can simultaneously consume it for efficiently executing his upcoming activity & create value in so doing.
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  • Many colleagues which are responsible for the one or the other process in their service providing environment need new ideas how to improve processes, find bottlenecks or root causes for too long resolution times, etc. Process Mining is a very good new approach to help them all, independent if their processes are in production or servuction environments. Even your perfect definition of services would not help if processes are running wrong!
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  • For ensuring reliable & efficient service providing Management, a consistent & stringent Service Providing Governance is required instead of a process mining and/or process management governance.

    Such a Service Providing Governance is explained in the article 'Service-Erbringung mit Sicherheit: In 4 Schritten zur Service Providing Governance'.
    http://www.wendia.com/de/vier-schritten-zur-service-providing-governance/
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Process Mining - a new governance approach

  1. 1. Martin Pscheidl, MBA, MSc, CMC martin.pscheidl@itsmf.at
  2. 2.  The IT Service Management Forum (itSMF) is an independent, 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 topics on 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
  3. 3. 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
  4. 4.  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 Acknowledgement We can’t live without these companies 4Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  5. 5.  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. Preface if you are interested in the theory read this book 5Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  6. 6.  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 Definition Use 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
  7. 7. Step 1 Step 2 Process Mining Technique a step by step approach 7Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Fluxicon Sequence 1 Sequence 1 Sequence 2
  8. 8. 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.
  9. 9. 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?
  10. 10. 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
  11. 11. 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
  12. 12.  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 Graph to visualize your processes 12Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis
  13. 13.  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
  14. 14.  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
  15. 15. 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 processes many companies have these in common 15Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  16. 16.  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 processes Secondary processes to run the company 16Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  17. 17.  Usage processes It is essential to understand how customers use products  Supplier processes Companies that have a high dependency on external suppliers should align their processes to be successful.  Outsourced processes An 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 processes supported by IT can be analyzed 17Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  18. 18.  In this service process a bottleneck with one of the forwarding companies was detected Common Use Case 1 Finding 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.
  19. 19.  There are often additional activities that are carried out but which actually should not occur, or at least not so often Common Use Case 2 Reducing 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.
  20. 20.  To see whether process changes are actually effective, the process mining analysis can be repeated and performed in a regular manner. Common Use Case 3 Verifying 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
  21. 21.  To see whether process changes are actually effective, the process mining analysis can be repeated and performed in a regular manner. Common Use Case 4 Ensuring 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
  22. 22. 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 mining based on logging for triggering further process operation Process Governance driven by Process Mining 22Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl enhance (re)design analyze
  23. 23.  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. Conclusion Use your process data to support process governance 23Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  24. 24.  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 References There exists a growing number of posts in blogs 24Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  25. 25. 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 office@itsmf.at or write an email to me martin.pscheidl@itsmf.at Questions? Feel free to come back to us! 25Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl
  26. 26. Process Mining Tool Screenshot 1 Incident Routing Support Groups 100% Coverage 26Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis
  27. 27. Process Mining Tool Screenshot 2 Incident Routing Support Groups 80% Coverage 27Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis
  28. 28. Process Mining Tool Screenshot 3 Incident Routing Support Groups 56% Coverage 28Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl 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
  29. 29. Process Mining Tool Screenshot 4 Incident ended in the Server Administration 92% Coverage 29Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis
  30. 30. Process Mining Tool Screenshot 4 Incident passing Plant IT Service Desk 92% Coverage 30Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis • Filtered all tickets passing one special support unit to see how process flows
  31. 31. Process Mining Tool Screenshot 4 Incidents sent to Communication provider 31Process Mining - a new governance approach ©2014 itSMF Austria by Martin Pscheidl Source Celonis • With and without flag “VIP” • With and without flag “VIP” • 3 times more communication incidents with VIP customers

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