process bionics @ government agencies · 2018 deloitte center of process bionics 5 use case -...

Process Bionics @ Government Agencies Deloitte Center of Process Bionics (CPB)

December 10th 2018

2018 Deloitte Center of Process Bionics 2

Process Mining creates full transparency on all processes

To manage a government agency transparency is required

Processes can be optimized for more efficiency (e.g. less bureaucracy) while simultaneously becoming more effective. Risk is reduced while operating costs go down.

Cross-functional interface

End-to-end evaluation of processes across system boundaries

Multi-dimensional advanced drill-down for root-cause analyses

Company-wide internal benchmarking based on comparable process KPIs

Value-add of Process Mining

Automated process conformance check

Single source of truth with fully fact-based insights

Deloitte’s smart process mining algorithms reconstruct digital workflows

ERP

Digital footprints

IT-based process

Actual processes are visualised on transactional level and deliver fully fact-based insights for process analysis

Full transparency

Process

Processes and workflows are supported by IT systems

1

3

2

Identify Analyse

Monitor Control

WASTE & RISK


Multiple agencies, external partners, processes, and systems can be connected to generate near real-time insight into transactions

Process Mining establishes a non-invasive connection to processes

Central Database

or Data Lake

System landscape Process Mining approach

Full Transparency Actual process flows are visualized in real time

Activity

Time

ID

Digital footprints Process Mining finds & reconstructs digital workflow traces

Transparency over actual process flows allows to:

• optimize internally

• make quality transparent and reveal need for change to service providers

• improve government service (speed / quality), e.g. for the acquisition of various permits

Promise Reality

IT-based work Support of work-flows by IT systems Slovenian

state Cloud

STATIST

e-VEM

Car register


Live demonstration

Deloitte Center of Process Bionics (CPB)


Use case - Conduct risk: Identification and prevention of maverick buying

Process Bionics in P2P-Process

Situation and challenges

• Purchasers operate under time pressure due to a high volume of incoming purchase requests

• Insufficient transparency of purchasing guidelines and contract conditions within the organization

• Common control mechanisms provide insufficient insights about violating cases

Optimization and control levers

• Real-time monitoring of incoming invoice without purchase order (proactive alerts)

Analysis results & potential impact

Identification:

• Process starts with incoming invoices

• Purchase orders were entered into systems after invoice was received

Root causes & Result:

• Purchases weren’t conducted via Purchasing department; purchasing guideline was ignored

• Existing contracts were not used, therefore higher purchasing costs and fraud investigation

Case for Process Mining

Assumption:

In 0.5% of all cases potential fraudulent behavior associated

Insights

• 74.6k suspicious maverick buying cases

• Overall net value of all orders amount to 224 Mio. € with

maverick buying

Potential impact:

0.5% x 74.6k = 373 potential frauds

0.5% x 224Mio€ = 1.12€M impacted


Example: Process Mining throughout all process levels

Process levels covered by Process Mining

Level 1

C-Suite

Level 2 Level 3

Heads Process Owner

Strategic Tactical Operational

Overview of all Processes

Example:

Monitoring of efficiency, quality and risk (including the automation rate) for all core processes with underlying action items for alerts (“traffic light”).

KPI monitoring per process Full process transparency

Example:

Overview and development of the underlying KPIs for each category, such as efficiency or quality, for every core process of Level 1.

Example:

Full transparency of the core process accompanied by deep dive and automated root cause analysis.


Deloitte Center of Process Bionics – Front End

Our own App Store allows for efficient reuse of previously created analysis

Working Capital Snapshot

VAT Analysis

Order-to-Cash: Internal Benchmarking Transfer Pricing Analysis in Multilevel Order-to-Cash

RPA/RCA Implementation Monitoring

Expense Breakdown for Purchase-to-Pay


Minimum participation of external SMEs

• Governance

• Efficiency

• Cost reduction

• Quality

• Alignment

• Compliance

Level 1: Insights - Try -

Level 3: DNA - Do -

high

low time

Process Mining abilities

Level 2: Impact - Building capacities -

Proof-of-Concept

• Understand the abilities as well as the potential of process mining through hands-on exercises

• Identification of optimization potential

Define & Design (Optional)

• Definition: Effort

• Design: Approach

Technical and functional

Roll-Out & Training

• Integration of the process mining solution into the production system (hybrid agile methodology)

• Create functional and regional customer specific in-depth analyses

• Generation of insights for improvement through analysis and prioritization of potentials

• Training of BI and Lean Sigma experts in their respective task area

• Establishment of centralized Center-of-Excellence

Continuous Improvement

• Use of process mining for status reporting and control of process improvements, compliance, internal benchmarking, etc.

• Implementation of improvement measures

• Further integration across regions and functions

• Develop and enhance a decentralized process mining expert network to support local Lean Sigma improvement projects

• Technical and functional support from Deloitte on request

• Starting point for RPA, machine learning, AI and process redesign

Implementation approach

Project Phase I Project Phase II

M

A

I

C

D

M

A

I

C

D

Culture of continuous improvement

A typical Process Mining project requires a phased roll-out



A set of business related criteria determines the ideal pilot processes for the digital journey of each organisation individually

Where to start? – PoC selection criteria

Is the level of transparency on process KPI and process flow low; only inputs and outputs fixed and some major steps known?

Transparency on process

What is the level of risk associated with the process and is manual intervention a must to deliver superior quality?

Risk & customer experience alignment

What is the level of dependencies or constraints that would impede benefit realization

Dependencies & constraints

Criteria

Is the core or supporting system scheduled for an upgrade/replacement in the near future?

Likelihood of changes in near future

Description

What is the amount of required labor involvement and what is the volume of transactions involving manual intervention?

Volume and labor requirements

Are major parts of the process executed in a single IT-system (program) or is the downstream information reflected in the main system?

Number of systems involved

Low preferred

High preferred

Criteria to drive the Process Mining business case Core criteria

Support / need for change of the functional owner

Is the process owner involved and ready to support the change activities?


The Deloitte approach to answer challenges

Process Bionics in government agencies

Typical challenges

• One process touching many heterogeneous systems with different data formats, quality etc.

• Overlapping purposes of systems

• Elaborate integration into one data model

• Different object identifiers in different systems within one process

• Missing links between systems due to manual work (digitalization gaps)

• Scoring data cannot be linked to process data

• Complexity of processes: Many process stakeholders, activities and regulatory requirements

• Complexity of systems: System-specific measurements and parallel operating systems

• Complexity of data: High volume of data distributed over various interconnected databases

Diversity of

Systems

Connectivity

of Systems

Complexity

Deloitte approach

• Step by step integration into one data model by focusing on data format harmonization and event log creation to provide a base for KPI calculation

• Dedicated toolset to automate format harmonization and data integration from multiple source systems

• Linking systems by identifying, structuring and including missing information

• Dedicated toolset to identify gaps & reliable paths and to automatically link

• Interaction & inclusion of all stakeholders from any dept. (e.g. process owner, IT)

• Tailored dashboards to fit specific needs

• Consolidation of results into one unified process approach


Team Experience

More than 7 years Process

Mining experience

Global Process Mining Roll-out

projects

Financial Services and

Production Industry knowledge

Business Process Know-how

Proven Methodology

Our Process Mining methodology

has proven to deliver cost savings,

increase transparency, reduce lead

time and much more.

Innovation

Dedicated Research towards

integrating new technologies in

order to enhance Process Mining

capabilities

(e.g. simulation and deep learning)

Leveraging cross-functional expertise,

we tailor and facilitate the utilization

of Process Mining in a variety of

application areas

Tax & Legal

Consulting

Financial Advisory

Risk Advisory

Audit & Assurance

Delo

itte

Glo

bal

Org

an

isati

on

Center of Process Bionics (CPB)

Infrastructure

CPB is hosting more than 10 Celonis

instances globally in order to train

and work with the tool on a daily basis.

These instances host up to 200 million

process instances and 100

concurrent users.

Global Centre of Excellence

Process Mining hubs with local teams

and ambassadors in GER, UK, CH, RU,

US, CZ, FR and etc, with more than

50 trained Process Mining

practitioners


Global center of excellence with more than 50 trained practitioners and experience with Process Mining of more than 7 years

Cross functional


Connect with us

Thank you! Lars Biermann

Center of Process Bionics

Senior Manager

e-mail: [email protected]

Phone: +49-(0)151-58076369

Polona Cufer Klep

Deloitte Consulting - Slovenia

Director

e-mail: [email protected]

Phone: +386 31 33 91 33

Jurij Kodre

Deloitte Consulting - Slovenia

Manager

e-mail: [email protected] Phone: +386 51 610267

For more information visit the Center of Process Bionics here

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process bionics @ government agencies · 2018 deloitte center of process bionics 5 use case -...

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