The Lack of Process Understanding: How Does It Affect Businesses?

The Lack of Process Understanding:
Hampers Automation & Digital Transformation Projects

In many companies, processes do not run as originally intended. You can compare this with the sidewalks or trails that you find in public parks, for example. Now and then, people like to use these instead of the officially designated path – to take a shortcut or because it’s more pleasant to walk on soft grass than on asphalt. It’s much the same with corporate processes.

Managers are not always aware that defined processes are often not run through exactly according to the defined steps. Even though in Singapore in particular the rules are generally followed, there are always exceptions where employees deviate from predefined processes, either because they are too complex or need to be adapted for the customer.

According to a study, many companies in Europe are already using technology to understand exactly how their business processes are executed. They are now increasingly aware of the added value of process mining. Another quarter of the decision makers surveyed said they plan to use process AI technologies in the future. Understanding business processes is considered the primary success factor for automation projects in companies. This is because process AI technologies are able to analyse how processes work as well as how they behave.

As a result, companies gain deeper insights to improve their processes. In addition, another business benefit is that process AI technologies provide real-time information about the performance of processes and issue alerts when process rules are not being followed. They also help to fix problems automatically.

Companies See RPA As A Business Accelerator

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It is also becoming apparent that robotic process automation (RPA) is being used more and more frequently in companies. Almost two-thirds of companies in Singapore are already using RPA or plan to do so in the next 12 months.

Decision-makers see RPA not only as a means for simple, administrative tasks, but are increasingly recognizing the value that RPA contributes to improving even business-critical functions. These include, in particular, improving the customer experience, as well as in IT service management and financial planning. Business leaders are also turning to RPA integrations for increasingly complicated enterprise use cases, which requires much smarter complementary technologies to successfully execute the projects.

The fact is that a strong understanding of business processes is essential for automation initiatives (also for digital transformation and planning projects). This is also underlined by previous empirical data from processes that have already been automated. It has been shown that a comprehensive understanding of those processes that have been automated at their company have formed the primary success factor for the implementation of RPA initiatives.

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How Do RPA Projects Fail?
Understanding Processes

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But what about the reverse? What causes RPA projects to fail?

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For example, an RPA flop could be an automated process that ends up requiring a higher level of human intervention than originally planned – the very purpose of robotic automation is to prevent people from being saddled with mindless routine tasks, such as correcting process steps that go wrong. So to avoid such a flop, it is first and foremost important that companies get sufficient support from their RPA vendor.

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If this is lacking, RPA success is no guarantee.

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Another reason for failures when using RPA are both very complex and enormously variable processes. This, of course, makes automation more difficult. In addition, some companies admit that outside advice, which companies like to bring in, proves less helpful than desired.

This makes it all the more important that companies do not start blindly on the digital transformation journey and only start where automation initiatives will also lead to success, in order to avoid disappointment. This means that, as a first step, they must understand how processes work and which processes can be automated at all.

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With innovative process mining technologies, companies can identify business process automation potential and prioritize those with the highest ROI potential.

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Process mining tools are indispensable for providing companies with an accurate real-time overview of their processes and showing which ones are working smoothly and, more importantly, which ones are just not working properly and creating bottlenecks. Only with the necessary level of process knowledge will automation initiatives be successful. Process analytics technologies are thus becoming a must, as they can effectively drive digital transformation in  companies.

When considering your next project, leverage Perceptif's Process-driven AI for an assessment or diagnostic of what's happening, build a blueprint of your current (as-is) processes then understand the impact of process transformation before embarking on the automation.

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Reach out to Perceptif team for more information or redeem a free business process diagnostic assessment

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