Process Mining and 4th Industrial Revolution
: The Indispensable Need for Process Mining
Hyeyoung Seo | Jun 21, 2018 | 6 min read
RPA and process mining, when combined, offer a holistic approach to automation, providing visibility and efficiency for businesses in the digital era.
The Revolution is Coming
We are currently riding the massive wave of the Fourth Industrial Revolution. The world is changing at a pace we could never have imagined, and every day, this transformation is mysteriously reshaping our lives. This rapid change has also swiftly altered the capabilities required of businesses. There’s no disagreement that we need to change in order to leisurely surf the upcoming waves, rather than being swept away by them.
Catching the wave on-time
Kodak Film was one of the leading companies, ranking among the top five most valuable brands in the world until the 1990s. In 1995, Kodak’s worth reached 13.3 billion dollars, following brands like Coca-Cola, McDonald’s, and IBM, making it the fourth most valuable brand globally. However, with the advent of digital cameras, they struggled, and the situation worsened when cell phone cameras entered the picture market. Eventually, they filed for bankruptcy on January 19, 2012.
The subsequent disclosure of internal documents after Kodak’s bankruptcy shocked many. It was revealed that Kodak was the first to develop digital cameras in the world. They had been so consumed with their current glory that they didn’t invest adequately in R&D. Despite analyzing the risks following the release of Sony’s first digital camera in 1981, they deemed it wasn’t the right time. Furthermore, while Kodak acquired a photo-sharing site in 2001 and released the world’s first digital camera with Wi-Fi capabilities in 2005, they used it solely for photo printing, failing to recognize the evolving patterns in which consumers used photos. These factors accelerated the downfall of the colossal company.
Data-driven decisions are the key
In the “Readiness for the Future of Production Report 2018” presented at the World Economic Forum in Davos, Switzerland, in 2018, changes expected due to the Fourth Industrial Revolution, relevant technologies, country-specific responses, and recommended preparations for the private sector are discussed. The report suggests that while changes in the production system will be very challenging, only a handful of countries will be able to capitalize on them, leading to a technological disparity between nations. Furthermore, it emphasizes that in preparation for the Fourth Industrial Revolution, not only national governments but also localities and the private sector need to collaborate and put in joint efforts.
Similarly, in another report from the World Economic Forum, titled “Operating Models for the Future of Consumption,” technology adoption, data-mindedness, and data analysis are identified as the most critical factors determining future success. Data-driven thinking and data analysis are the most potent keys to understanding both technology and consumers simultaneously. Many companies recognize the importance of data, but few successfully make data-driven decisions. To offer core services centered around the customer, it’s crucial to significantly enhance consumer-level insights, and this requires evidence from data. It’s not just the leaders – every team member should be able to converse through data and make optimal decisions.
Your Secret Weapon: Process Mining
Process Mining can be your secret weapon to survive at the entrance of this Fourth Industrial Revolution. Process Mining allows companies to gain insights by analyzing the data piled up on their servers, combining business process management with a data-centric approach to meet the growing demand for data-driven decision-making.
A research team from the University of Oulu in Finland has revealed that many companies using process mining have already transformed their processes and could more easily identify the root causes of problems. (While the study was specifically related to ERP, but it’s applicable to various fields!) Through this, companies have been able to save a significant amount of time and resources.
Short summary of advantages we can earn from utilizing Process Mining (Komulainen, 2017)
Efficiency of introducing a new ERP System. The graph on the right illustrates a significant improvement in system efficiency when the new ERP and Process Mining are applied together. (Komulainen, 2017)
Make the Revolution Yours : with ProDiscovery & PuzzleData Team
The PuzzleData team is diligently researching to ensure that all companies working with us can become leaders in the era of the Fourth Industrial Revolution. Take a quick look of ProDiscovery we’ve prepared for you! This new secret weapon called process mining will offer you an unparalleled advantage in the new business field.
References
Komulainen, O. (2017), Process mining benefits for organizations using ERP systems, University of Oulu, available at: http://jultika.oulu.fi/files/nbnfioulu-201712013238.pdf
Oruste, K., Milani, F.P., & Maggi, F.M. (2017). Process Mining in Industry.
http://www3.weforum.org/docs/WEF_Operating_Models_for_the_Future_of_Consumption.pdf
http://www3.weforum.org/docs/FOP_Readiness_Report_2018.pdf