5 Benefits and Use Cases of Predictive Process Monitoring in 2024

Hi there! With businesses seeking every possible edge in an increasingly competitive landscape, process intelligence has become a major priority. Many organizations find themselves struggling to optimize complex, dynamic workflows using traditional analytics. This is where predictive process monitoring comes in.

In this guide, we‘ll explore five compelling benefits of predictive process monitoring, along with real-world examples of how leading companies are using it today.

What is Predictive Process Monitoring?

First, let‘s quickly define what we mean by predictive process monitoring. It utilizes machine learning algorithms to analyze execution data from current processes. This data is used to build predictive models that forecast how running processes will unfold.

Key predictions can include:

  • Which future activities are likely to occur
  • The expected completion time or overall cycle time
  • Potential delays or bottlenecks
  • Issues that may impact quality or compliance
  • Customer reactions and satisfaction

Armed with these predictions, organizations can optimize processes proactively and drive significant business value. Now let‘s dive into five major benefits:

Benefit 1: Identify and Fix Inefficiencies

Predictive monitoring helps uncover process inefficiencies like bottlenecks, delays, and unnecessary steps while there‘s still time to improve them. Analysts gain visibility into metrics like cycle times, work in progress, and utilization rates.

Consider these stats around process challenges:

  • 60% of organizations struggle with process waste and inefficiency. [1]
  • 75% of processes have hidden inefficiencies on average. [2]

With predictive monitoring, a manufacturing plant could detect an upcoming bottleneck and reallocate workers. A bank could find areas of delay in mortgage approvals. HR could reduce cycle times for talent recruiting. The bottomline is agility and productivity gains.

Benefit 2: Optimize Resource Planning

By forecasting upcoming activities, predictive monitoring enables data-driven planning and allocation of resources aligned to business priorities. This includes right-sizing investments in staff, inventory, facilities, IT, and more.

Executives seem to agree on the need for optimization:

  • 73% have accelerated focus on improving processes. [3]
  • 80% see workflow analytics and automation as critical. [4]

Examples include predicting patient demand at hospitals, forecasting project timelines, or simulating e-commerce traffic spikes. The end result is cost savings, flexibility, and productivity.

Benefit 3: Enhance Customer Experiences

With customers demanding seamless omni-channel experiences, predictive monitoring helps tremendously. By determining downstream reactions, satisfaction, and needs, organizations can shape optimal journeys.

Consider that:

  • 70% of customers expect integrated cross-channel experiences. [5]
  • 89% of companies now compete primarily on customer experience. [6]

Applications span accelerating claims, proactive support, personalized recommendations, and more. The benefits include loyalty, brand reputation, and sustainable growth.

Benefit 4: Drive Data-Driven Decisions

Predictive process insights enable evidence-based business decisions vs. relying on intuition alone. Executives have data-driven foresight about process performance when planning investments, launches, campaigns, and more.

Stats show room for improvement:

  • Almost 50% of business decisions are still made ad hoc instead of data-driven. [7]
  • Companies that embrace data-driven decisions are 4x more profitable. [8]

Use cases include new product validation, demand forecasting, risk analysis, and beyond. The results are growth, risk mitigation, and strategic value.

Benefit 5: Enable Prescriptive Actions

Mature predictive monitoring capabilities can trigger automated prescriptive actions through decision rules. These include system alerts, notifications, recommendations, and more based on predictions.

Consider adoption numbers:

  • 55% of companies now implement some automated decision making. [9]
  • 75% of executives believe predictive insights should drive prescribed actions. [10]

Examples include automated traffic routing, personalized promotions, customer alerts, and more. Benefits include efficiency, stakeholder enablement, and risk reduction.

Looking Ahead

As you can see, predictive process monitoring delivers immense value through data-driven visibility into the future. It provides the insights leaders need to optimize processes, resources, decisions and customer experiences. No wonder adoption is accelerating across industries.

To learn more about applying predictive process mining in your organization, download our vendor selection guide. Let‘s discuss your goals in greater detail!

Similar Posts