Process Optimization

Process Mining: What It Is and How to Get Started

Data-driven process analysis explained - tools, costs and when it's worth it.

13 min read

Process mining is one of the most exciting trends in process optimization. But what's behind it? Is it just another buzzword - or a real game-changer? In this article, we explain what process mining is, how it works, and whether it's relevant for your business.

What Is Process Mining?

Process mining is a technology that automatically analyzes how processes actually run in your organization - based on data from your IT systems.

The idea:

Your software systems (ERP, CRM, etc.) log every action. Process mining uses these logs to reconstruct and visualize the actual process flow.

Traditional process management:
  • You ask employees: "How does the process work?"
  • You get the theory (or what people think they do)
  • The documented process ≠ the actual process

Process mining:
  • You analyze what actually happened
  • Based on hard data
  • The real process becomes visible

How Does Process Mining Work?

The Data Foundation: Event Logs

Every IT system generates logs. An example from an ERP:

TimestampCase IDActivityUser
2024-01-15 09:00:00PO-1234Order createdMiller
2024-01-15 09:15:00PO-1234Approval requestedMiller
2024-01-15 14:30:00PO-1234Approval grantedSchmidt
2024-01-16 10:00:00PO-1234Order sentSystem
2024-01-18 08:00:00PO-1234Goods receivedWeber
2024-01-18 09:30:00PO-1234Invoice bookedFischer

The Algorithm Reconstructs the Process

From thousands of such entries, process mining identifies:

  • The standard process (how it usually runs)
  • Variants (deviations from the standard)
  • Anomalies (errors, loops, exceptions)
  • Cycle times (where does it take long?)
  • Bottlenecks (where does it get stuck?)
  • Visualization

    The result is a process graph:

    [Create Order]
    

    |

    [Approval needed?]

    / \

    Yes No

    | |

    [Request [Send

    Approval] Directly]

    | |

    [Approval |

    Granted] |

    | |

    [Send Order] <------

    |

    [Goods Receipt]

    |

    [Book Invoice]

    Plus: Each arrow shows frequency and cycle time.

    The Three Types of Process Mining

    1. Discovery

    Question: "How does the process really work?"

    The algorithm reconstructs the process from the data - without prior knowledge.

    Benefits:
    • Make process visible
    • Discover unknown variants
    • Compare reality vs. documentation

    2. Conformance Checking

    Question: "Does the process follow the rules?"

    The actual process is compared to the target process.

    Benefits:
    • Find compliance violations
    • Identify process deviations
    • Audit preparation

    3. Enhancement

    Question: "How can the process be improved?"

    Use insights from mining to optimize.

    Benefits:
    • Eliminate bottlenecks
    • Find automation potential
    • Reduce process times

    What Process Mining Reveals

    Typical Insights

    Variants:

    "We have 47 different variants of the ordering process. The top 3 cover 80% - but what about the other 44?"

    Loops:

    "23% of invoices are reviewed 3 or more times before approval."

    Wait times:

    "Between approval request and approval, an average of 2.3 days passes. For Manager X, it's 5.7 days."

    Exceptions:

    "15% of orders skip approval entirely."

    Automation potential:

    "40% of all activities are pure status changes - automatable."

    Example: Order-to-Cash Process

    Expected process:
    

    Order → Delivery → Invoice → Payment

    (7 days)

    Reality according to process mining:

    • 35% follow the standard
    • 25% have 2+ complaint loops
    • 20% have invoice corrections
    • 10% have dunning runs
    • 10% have other deviations

    Average cycle time: 23 days (not 7)

    Process Mining Tools

    Enterprise Solutions

    ToolPriceStrengths
    CelonisFrom $50,000/yearMarket leader, best analytics
    UiPath Process MiningFrom $20,000/yearRPA integration
    SAP SignavioIncluded in S/4HANASAP-native
    Microsoft Process AdvisorIn Power PlatformMicrosoft ecosystem

    Mid-Market Solutions

    ToolPriceStrengths
    Minit (by Microsoft)From $1,000/monthGood value
    ApromoreOpen Source + EnterpriseFree entry
    ARIS Process MiningFrom $500/monthProcess modeling included
    Lana LabsOn requestGerman solution

    Open Source / Free

    ToolCostFor
    ProMFreeAcademic, research
    Apromore CEFreeSmall datasets
    PM4PyFreePython developers

    Is Process Mining Relevant for You?

    Yes, if:

    • You have ERP/CRM systems with transaction data
    • You have >1,000 process instances per month
    • Processes span multiple systems/departments
    • You suspect inefficiencies but can't locate them
    • Compliance/audit is a concern
    • You're planning RPA/automation and want to know where

    Probably not, if:

    • You have few, simple processes
    • Your systems don't generate usable logs
    • Fewer than 500 process instances per year
    • Processes are already well documented and controlled
    • No budget for enterprise tools

    How to Get Started with Process Mining

    Phase 1: Proof of Concept (4-8 weeks)

    Step 1: Select a process

    Ideal candidates:

    • High transaction volumes
    • Suspected inefficiency
    • Multiple participants/systems
    • Good data availability

    Step 2: Extract data

    Typical sources:

    • SAP: Tables BKPF, VBAK, EKKO, etc.
    • Salesforce: Opportunities, Cases
    • ServiceNow: Incidents, Changes
    • Custom: Database logs

    Step 3: Create event log

    Required fields:

    • Case ID (unique process instance)
    • Activity (what happens)
    • Timestamp (when)
    • Optional: User, department, cost

    Step 4: Perform analysis

    Test with Apromore (free):

  • Upload event log (CSV/XES)
  • Generate process map
  • Analyze variants
  • Document insights
  • Phase 2: Pilot Project (2-3 months)

    After successful PoC:
  • Make tool decision
  • Automate data connection
  • Set up dashboards
  • Train stakeholders
  • Implement first optimizations
  • Phase 3: Scaling

    • Connect additional processes
    • Set up continuous monitoring
    • RPA/automation based on insights

    Process Mining + Automation

    The Connection

    Process mining shows WHERE to automate.

    Automation implements it.

    [Process Mining]
    

    |

    "40% of activities are manual data entry"

    "Every 5th order requires manual rework"

    "Approval process has 2 days wait time"

    |

    [Automation Measures]

    |

    • API integration instead of copy-paste
    • Validation at entry, not at the end
    • Automatic approval below threshold
    |

    [Process Mining Again]

    |

    Measure improvement

    Example

    Process mining finds:

    "80% of invoices under $1,000 are approved without changes. Average approval wait time: 1.5 days."

    Automation solution:

    Invoices < $1,000 from known vendors → Automatic approval

    Process mining after automation:

    "Average approval time for automated invoices: 2 minutes. Manual invoices: Still 1.5 days."

    Cost-Benefit Analysis

    Investment

    Enterprise (Celonis/UiPath):
    • License: $50,000-200,000/year
    • Implementation: $50,000-150,000
    • Maintenance: 10-20% of license

    Mid-Market (Minit/ARIS):
    • License: $10,000-50,000/year
    • Implementation: $10,000-30,000

    Entry Level (Apromore/PoC):
    • License: $0-5,000
    • Internal effort: 40-80 hours

    Typical ROI

    Experience values:
    • 15-30% process time reduction
    • 10-20% cost reduction
    • 50%+ fewer compliance violations
    • 3-6 months to break-even

    Example calculation:
    Process analyzed: Procurement
    

    Volume: 10,000 orders/year

    Cost per order: $50

    Process mining investment: $30,000/year

    Improvements found:

    • 20% less rework: $15/order
    • 10% faster cycle time: $5/order
    • Automation potential: $10/order

    Savings: $30 x 10,000 = $300,000/year

    ROI: 900%

    Frequently Asked Questions

    What data do I need?

    Minimum: Process ID, activity, timestamp. Better: + User, cost, attributes.

    How many data points do I need?

    Recommended: 1,000+ process instances for meaningful analysis.

    How long does a project take?

    PoC: 4-8 weeks. Full project: 3-6 months.

    Do I need developers?

    Helpful for data access. The analysis itself is usually no-code.

    GDPR concerns?

    Yes, relevant. Anonymize/pseudonymize user data.

    Conclusion

    Process mining is more than a buzzword. It's the data-driven answer to "How do our processes really work?"

    For large enterprises: Almost indispensable. The insights are too valuable. For mid-sized companies: Selectively useful. Yes for complex, high-volume processes. For small businesses: Usually overkill. Classic process mapping often suffices.

    The best entry point: Free PoC with Apromore and a clearly defined process.


    Want to know if process mining makes sense for you? We analyze your situation and show you where data-driven process analysis delivers the greatest value.

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