Process OptimisationBringing efficiency to processes across the organisation

November 2019

Content

1 Process IntelligenceHow it works

Process IntelligenceApplication in Internal Auditing2

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ProcessIntelligenceHow it works

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Evaluate & proactively manage potential risks• Identify broken process flows and

plug loose ends to avoid regulatory compliance risks

• Map your extended supply chain processes to manage risks from supply network disruption

Identify process bottlenecks & inefficiencies• Compare cycle times vs. industry

best-in-class to drive supply chain speed & agility

• Analyze process wait times and time spent in manual processes to drive further process automation

Identify process variants in your supply chain• Compare flows across BUs and

markets in order to drive process harmonization

• Benchmark vs. industry standard process flows in order to drive process standardization

Process mining is a powerful tool to achieve business process excellence

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How do we do it?

etc.

e.g. Order-to-cash, purchase-to-pay, customer journey, etc.

Access and prepare data

Discoverevent data

Check for conformance as-is vs. to-be1

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Business process mining tools translate event log data from any data sources into an intuitive as-is process model via process mining algorithms

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Not very intuitive

Machine-readable

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Easy to identify deviation

Intuitive

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Objective and factual

We show the true picture based on the original source data.No subjective information obtained In interviews.

Complete andcomprehensive

We analyze the full data set. No sampling.

Multi-dimension

We analyze processes from all possible perspectives(eg vendor, customer, user, reworks)

Quick

We use innovative tools to obtain results rapidly.1 process assessment can take 1-3 weeks depending on data quality

Detailed

We drill down into all the key process areas as far the data is available and can provide you with detail inefficiencies and recommendations.

Controls effectiveness

Where there are process inefficiencies there could be controls not working.

Fraud detection

Process exceptions, incomplete data and high levels of unusual activity may be fraud indications that need further investigations.

Benefits of Process Intelligence

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Illustrative – Snapshot of an accounts payable process

Expectation(What standard process should look like)

Reality (Some inefficiencies are showing)

We can analyse the invoices that had to be cancelled

Which invoices were created after the due date passed?

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Illustrative – Snapshot of an accounts payable dashboard

Can showing the total number of invoices and their total value be automated?

Are there any duplications in vendors list?

Should the vendor creating the invoice step be captured in the process? Can this be automated?

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What are main pain points and control deficiencies?

Illustrative – Snapshot of an accounts payable dashboard

Is there fraud?- Vendor coding- Duplicated

vendors

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Illustrative – Snapshot of an accounts payable dashboard

How do subsidiaries compare to each other?

ProcessIntelligenceApplication in Internal Auditing

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How do we do it?

of IA leaders believe technology adoption impacts IA’s value to the organization

This signals a significant potential for process mining and other related technology such as artificial intelligence, blockchain and augmented reality within the field of IA.

56%

Determine process efficiency

Process controls effectiveness

Determine process non-compliances

Random sampled data

Larger disposal of “clean” data

Outcome of data modelling

Process mining Data modelling

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Process Intelligence and Internal Audit

Compliance

Sample Data

Insight

Reporting

Critical path

Heading

Sample size• From small random data set to full

complete data set • Full breadth of data across multiple

systems

Benefits of Process

Intelligence

Compliance at scale• Bring a company to compliance, at scale,

without sacrificing time or statistical integrity

Critical path visualization• Allows an internal audit team

to achieve transparency

Self reporting flaws• Allows auditors to avoid, self-reporting

flaws with data realitye

Data Benchmarking• Allows for replicable analysis of the same

process over time

Fresh data, better insight• Captures detailed data up to the minute of execution

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Case StudyUsing Process intelligence to audit the procurement process for a major European financial provider*

Conventional internal audit procedure may not be able to detect interactions which could be involved in cases such as fraud, failed controls.

Implementing process intelligence to identify transactions using different approaches: • Process analysis• Role analysis• Attribute analysis

The challenge The solution

Out of 26,185 process instances involving 181,845 transactions and 272 originators:

The results• 3 POs passed through the procurement

process without any sign or release.

• 175 violations of the segregation of duty that requires goods receipt and release.

• 265 payments which did not have a matching invoice.

• 3 POs which did not show a goods receipt entry in the system, although the goods receipt indicator was flagged.

• 742 cases which did not show a sign activity.

*Case study was done in Hasselt University, Belgium

Process Intelligence and Internal Audit

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The results

Process Intelligence IA applications (project completion review)

Embedded lifecycle assurance and learningAcquiring information from process intelligence ensures the implementation of value assurance process and maintains embedded learning

Governance-enabling decision makingEnabling leaders to review projects completion information with confidence, making timely decisions using comprehensive data sets

Focused benefits managementMeasuring sustainability metrics of benefits realized in a project and obtaining objective achievement status

Managed risks and opportunitiesA closer monitor on identified risks and evaluating mitigation controls

Delivery enabling plansSuppliers delivery plans, project execution plans, stakeholders involvement, etc. All of these plans affect the delivery of project objectives and can be monitored and reviewed through process intelligence implementation

Smart financingReviewing budgeting and estimation for effective financial management and reporting

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Contacts

Mohammad HossamManager

PwC Middle EastT: ++971 54 7934137E: mohammad.hossam@pwc.com

Cristina de TorresPartner,Process Intelligence LeaderPwC Middle EastT: +971 56 682 0629E: c.detorres@pwc.com

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