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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
2018 Deloitte Center of Process Bionics 3
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
2018 Deloitte Center of Process Bionics 4
Live demonstration
Deloitte Center of Process Bionics (CPB)
2018 Deloitte Center of Process Bionics 5
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
2018 Deloitte Center of Process Bionics 6
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.
2018 Deloitte Center of Process Bionics 7
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
2018 Deloitte Center of Process Bionics 8
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
Deloitte Center of Process Bionics (CPB)
2018 Deloitte Center of Process Bionics 9
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?
2018 Deloitte Center of Process Bionics 10
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
2018 Deloitte Center of Process Bionics 11
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
Deloitte Center of Process Bionics (CPB)
Global center of excellence with more than 50 trained practitioners and experience with Process Mining of more than 7 years
Cross functional
2018 Deloitte Center of Process Bionics 12
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
About Deloitte
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