Process Modeling in ‘23: Top 5 Use Cases & Case Studies

Hello there! As a data analyst and AI consultant with over 5 years of experience, I‘ve seen firsthand how impactful process modeling can be for optimizing workflows and gaining insights. In this guide, I‘ll walk you through the top 5 use cases for process modeling in 2024, along with real-world examples and statistics to showcase the tangible benefits.

Introduction

Process modeling involves creating visual maps of business processes, depicting every step and stakeholder involved. These models provide transparency into workflows and systems, enabling data-driven analysis and improvements.

While process modeling has been around for decades, it has become an increasingly critical methodology in recent years. In fact, the global process modeling, design, and development market is projected to grow from $2.2 billion in 2022 to $5.2 billion by 2029, at a CAGR of 15.7%.1

So why is process modeling booming? With growing complexity in operations, governance, and technology, visualization is more important than ever for understanding end-to-end processes. Models provide the visibility to optimize productivity, compliance, automation, and customer experience.

Now let‘s explore the top 5 ways organizations are using process modeling today:

1. Understanding As-Is Processes and Pain Points

One of the most fundamental use cases is mapping out current state or "As-Is" processes. Developing this baseline understanding is critical before enhancements can be made.

Process models enable analysts to capture all process steps, decision points, inputs/outputs, and stakeholders. This reveals inefficiencies, bottlenecks, redundancies, and other issues.

For example, a major insurance company used process modeling to diagram their claims handling procedure. The visualization uncovered over a dozen points where handoffs between departments caused delays and miscommunication. By streamlining these touch points, they reduced claim cycle times by 20%.

In another example, an automotive manufacturer mapped out their production line processes. This helped identify several obsolete process steps that dated back decades. By eliminating these outdated practices, they boosted output by 8%.

Key statistic: Companies using process modeling to understand current state can achieve 10-25% improvements in process speed, quality, and cost.2

2. Designing Future State and To-Be Processes

Once you thoroughly understand existing processes, process modeling is indispensable for designing optimized future state or "To-Be" workflows.

By iteratively modifying process maps, analysts can model ideal scenarios that eliminate waste and boost productivity. Visualization facilitates innovative thinking and bold redesigns.

For instance, a mortgage lender used process modeling to reimagine their home loan application process. By eliminating over a dozen unnecessary steps and handoffs, they reduced approval times from 21 days to 17 days.

In another example, a software company redesigned their product release cycle using process modeling. The new streamlined workflow boosted on-time releases from 82% to 95%.

Key statistic: Process modeling can help redesigns deliver 20-40% improvements in speed, quality, and cost.3

3. Improving Governance and Compliance

With processes visually mapped out, it becomes much easier to assess adherence to regulations, controls, and corporate policies. Gaps, risks, and liabilities become transparent.

For instance, a bank leveraged process modeling to diagram their know-your-customer (KYC) workflow for onboarding new clients. This helped reveal several points where compliance with AML and KYC regulations could be strengthened.

In another example, a healthcare provider mapped out processes for managing patient health records. This ensured processes were aligned with HIPAA controls for privacy and security.

Key statistic: Process modeling can help improve governance and compliance by 60-80% by making controls visually clear.4

4. Enabling Process Standardization

Process models also provide immense value in standardizing processes across locations, product lines, or business units. Variations become visible so best practices can propagate.

For example, a global retailer used process modeling to map out store opening procedures across 150 locations. This revealed redundant prep work at some sites and critical steps omitted at others. By standardizing on the optimal workflow, the chain achieved uniform customer experiences.

In another case, a manufacturing firm diagrammed production processes for five product lines. Identifying redundant equipment checks and measurements allowed simplification and standardization.

Key statistic: Process modeling can deliver 15-30% improvements in quality through standardization.5

5. Identifying Automation Opportunities

Finally, process modeling allows you to clearly see manual, repetitive process steps that are candidates for automation – whether through AI, RPA, or other technologies.

For example, an insurance company mapped out their claims processing workflow. They identified over 30 manual lookup and data entry steps that could easily be handled by bots. Automating these will boost processing capacity by 50%.

In another case, a bank‘s process model of customer onboarding revealed several decision points that could become straight-through with machine learning algorithms. This allowed lowering onboarding times by 30%.

Key statistic: Process modeling can uncover automation opportunities that improve efficiency by 25-40%.6

Conclusion

As these use cases and examples illustrate, process modeling is a powerful methodology to optimize critical workflows. The visibility enables everything from incremental improvements to radical redesigns and automation.

Now more than ever, with rising complexity and competition, organizations must seek out every possible edge – and process modeling delivers. By leveraging these best practices for visualization, analysis and enhancement, you can boost productivity, governance, and customer satisfaction.

The data shows process modeling is becoming an indispensable capability for world-class operations. I hope this guide provides a helpful overview of how to maximize value. Feel free to reach out if you have any other questions!


  1. MarketsandMarkets Research Private Ltd., "Process Modeling, Design, and Development Market – Global Forecast to 2029," March 2022. 
  2. Rummler-Brache Group, "Process Improvement Possibilities," 2021. 
  3. Paul Harmon, "The State of Business Process Management 2020," BP Trends, 2020. 
  4. Jan vom Brocke et al, "Compliance Management Systems," BPM Live Book, 2018. 
  5. Rummler-Brache Group, "Improving Performance: Managing White Space on the Organization Chart," 2014. 
  6. Ernst & Young, "How do you find process automation opportunity?", 2018. 

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