Taming complexity with analytics
Executives underestimate back-office process variability by a factor of 100
Unnecessary complexity and unintended variability in business processes are pervasive challenges in large organizations. Even with large-scale ERP projects and huge investments intended to automate and standardize business processes, the problem persists and is increasing in scope and consequence. While the existence of the problem is widely accepted, determining precisely how, where, when, and why the complexity and variability are occurring has been difficult if not impossible.
Quality, speed, and complexity are the three fundamental drivers of process efficiency. In this article we are delving into complexity. We define it as the variability and interrelatedness of discrete process elements including products, customers, vendors, locations, business units, process steps, policies, and IT applications.
Zero in on root causes
Today, we can get to the data and provide a picture of what is really happening in end-to-end business processes throughout an enterprise. Working with proprietary analytics software (Process X-rayTM) we have analyzed the actual process data at dozens of companies. The results were eye opening for our clients: They discovered that process variation is at least 100 times greater than what they imagined. In fact, 5,000 or more variations are common in most end-to-end processes. Such high levels of variability are a natural enemy of scalability, efficiency, and process control.
To eradicate complexity, businesses need an advanced analytic capability to zero in quickly on root causes and assure that corrective actions will have the needed impact. Process X-ray has provided that capability for many organizations. It enables the insights needed to understand the root causes of issues through a single version of the truth that aligns the organization around improvement efforts.
Download the report to discover keys to successfully tackling and fighting unnecessary complexity and variability with analytics OR continue scrolling down the page to learn more about Process X-ray and a success story from the field.
What is Process X-ray?
Process X-ray is an advanced analytics software that leverages terabytes of data locked in ERP systems. It helps companies eradicate complexity through four straightforward and effective capabilities embedded in its DNA:
- Revealing an end-to-end view of processes
- Drilling down into company issues at the activity level and quantifying individual user behaviors
- Providing benchmarks for internal best practices
- Offering a single version of the truth to improve decision making
Beyond fighting complexity, the insights generated by Process X-ray can improve these critical drivers of business success:
- Revenue: increasing revenue by improving delivery reliability
- Operating margins: reducing workload and increasing efficiency through greater levels of automation
- Asset efficiency: reducing working capital by improving cash conversion cycles
- Compliance: improving the effectiveness of process controls
Fighting complexity has become substantially easier with technology that provides an end-to-end view of inputs, outputs, and workflow complexity. However, Process X-ray as a tool does not change the business. It provides insights.
Do you want to know more on Process X-ray and how it can help eradicate complexity in your business? Please contact Wilbert Pommerel at +31 (0)88 288 1794.