Business Process Optimization Leveraging Process Intelligence
Role of Process Optimization in Process Transformation
Process transformation is becoming an essential component of digital transformation initiatives. As organizations embark on their digital transformation journey, they realize that process transformation will play a key role. This is also reflected in the importance placed on process transformation in the RISE with SAP offering from SAP. Process transformation can be defined in a simple way as making changes to your process such that your process becomes more efficient and effective. One of the key levers to attain that goal is business process optimization (BPO), which enables organizations to understand the optimal way to execute their processes and identify improvement or re-engineering opportunities.
Role of Process Intelligence in Process Optimization
The starting point of understanding the opportunities to optimize processes is analyzing the data from the current state. This is where process intelligence comes into the picture. Process intelligence, derived through process mining, helps capture current state data and insights. This data can then be leveraged to understand the bottlenecks in the current state and optimal flows and opportunities to re-engineer segments of the process or the entire end-to-end process. SAPinsider Process Automation SOM research report covers this aspect in detail.
Key Considerations for SAPinsiders
Map and understand process interdependencies. While the focus is on reducing errors and increasing process efficiency, it is critical to understand process interdependencies. A comprehensive business process mapping on key processes needs to occur simultaneously to understand their interdependencies. Build swim-lane-style process maps that clearly illustrate how each process interacts with the other. Leverage best-in-class process mapping and design methodologies like SIPOC diagrams.
Understand the root cause of errors and inefficiencies. It is important to understand what the drivers are for inefficiencies and errors in a process. Methodologies like Lean Six Sigma and Six Sigma can be useful to perform the analysis. Some of the most widely used and effective root cause analysis methods are Failure Mode and Effects Analysis (FMEA), Scatter Plot diagram, Fishbone diagrams, and Pareto charts. These need to be developed in conjunction with process maps.
Formulate a process visibility strategy. Process visibility remains a key aspect of any process transformation. However, it is important to realistically pre-define what is the desired level of process visibility and evaluate the feasibility of attaining that level of visibility.
Embrace intelligent automation. Technology today allows us to take process automation beyond merely automating manual, non-value-adding tasks. Artificial intelligence- and machine learning-enabled automation allows you to further stretch the boundaries of process enhancement and move towards building a true intelligent enterprise of the future.
