6 Ways Process Mining Dramatically Improves Compliance in 2024
Hello, fellow compliance professional!
Staying on top of ever-evolving regulations and internal policies is tough. But non-compliance can lead to fines, lawsuits, and reputational damage costing millions.
Let‘s discuss how process mining can be a game-changer for compliance through data-driven insights.
What is Process Mining?
Process mining utilizes data science to study real processes by extracting event data from company systems like ERPs and CRMs.
It provides complete visibility into end-to-end processes that traditional methods lack. By automatically comparing actual processes to expected ones, process mining identifies risks and variations from prescribed policies and rules.
Key capabilities:
- Visualize real processes from system logs
- Detect deviations and predict compliance risks
- Monitor process KPIs and employee performance
- Discover automation opportunities
- Enable process standardization
According to Gartner, 90% of orgs will use process mining by 2023. Leading solutions include Celonis, UiPath, Minit, and QPR ProcessAnalyzer.
The Cost of Non-Compliance
Before exploring how process mining helps compliance, let‘s look at the price of non-compliance:
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Yikes! Let‘s look at how process mining can help avoid these scenarios.
6 Ways Process Mining Enhances Compliance
Process mining strengthens compliance in the following ways:
1. Enforce Compliance Levels
By connecting to existing systems like ERPs, process mining can monitor compliance levels as processes execute.
For example, a hospital used process mining to ensure their patient record process adhered to best practices. It eliminated 30 redundant medical steps and shortened emergency response time by 37%.
2. Identify Performance Deviations
Process mining compares workflows against KPIs to pinpoint inefficiencies and deviations in real-time. Conformance checking reveals processes or employees not meeting compliance metrics.
A children‘s hospital used process mining to measure compliance with trauma response protocols. By detecting variations, they standardized resuscitations.
3. Assess Compliance Risks
Process mining compares ideal and actual processes to uncover risks of non-compliance and predict failures before they occur. According to Deloitte, only 31% of orgs have mature compliance risk assessment capabilities.
A logistics firm used process mining in credit operations. It revealed over 70% non-compliance risks, enabling focused mitigation.
4. Standardize Processes
By analyzing processes across business units, process mining detects different methods for similar procedures. This insight enables standardization to consistent compliant processes enterprise-wide.
A pharmaceutical giant leveraged process mining to standardize procurement, sales, and logistics across global subsidiaries.
5. Discover Automation Opportunities
Process mining provides insights to automate compliance checks for efficiency. Bots can be programmed to auto-compare regulations and processes to flag anomalies.
A utility company integrated process mining with BI tools to automate risk monitoring for purchase orders, saving 150 manual hours monthly.
6. Automate Compliance Reporting
The audit logs generated by process mining can feed data to systems like RPA to auto-generate compliance reports on demand. This automates a traditionally manual process.
A leading bank automated compliance reporting with process mining, reducing compliance throughput time by 9-10 days and manual work by 65%.
The Future of Intelligent Compliance
With exponential data growth and evolving regulations, traditional compliance methods are inadequate.
Process mining provides complete visibility into end-to-end processes enabling proactive and automated compliance. According to Mckinsey, it can reduce compliance costs by 20-30%.
Integrating process mining with AI and ML uncovers hidden insights and predicts risks ahead of time. It paves the way for self-regulating and continuously compliant intelligent processes.
Leading organizations across banking, insurance, pharma, and manufacturing are realizing game-changing ROI from process mining.
Let‘s Discuss Compliance Automation
I hope this article provided you a helpful overview of transforming compliance with process mining. Feel free to connect with me if you would like to discuss process mining adoption or selecting the right solution for your specific compliance needs. I would be happy to offer tailored advice based on my decade of experience in this space.
Wishing you a compliant and prosperous year ahead!
