Automated Business Process Discovery in Invoice Handling Process
The concept of using data from IT systems for visualizing and analyzing processes gives a whole new aspect to process improvement – the facts. Automated business process discovery (ABPD) or process mining, as the methodology can be called, gives means to effectively find the bottlenecks of any process, which usually as a consequence, hamper the bottom line.
QPR had a great opportunity to join forces with Basware, the leading provider of e-invoicing and purchase-to-pay solutions, to support a Master’s thesis aiming to analyze the invoice handling process. Basware used QPR ProcessAnalyzer to conduct the process analysis based on the data in their own invoicing system. Here is Janne Hirva’s, Manager, Portfolio & Operations at Basware, take on the ABPD experience.
“We had heard of ABPD technology and QPR ProcessAnalyzer. The notion of being able to import any data to discover any process was really impressive. Therefore, we wanted to see how it would work when analyzing the invoice handling process for which we develop targeted software and solutions.”
“The analysis was conducted for our invoicing process and several selected customers, all using Basware’s invoicing system. As this was a new approach for us, we were interested to know what kinds of findings could be obtained overall from analyzing the process such as several open invoices and comparisons between different invoice types or vendors”, tells Janne Hirva.
As with any data-centric approach, acquiring the data can be a hassle. But the more familiar you are with the data, the easier it usually is.
Q: What was your experience with handling the data acquisition and ultimately the analysis?
“Customers who were involved in the project were happy with the easiness of the data acquisition. Data import was straightforward starting from using Excel for smaller data sets or importing to Cloud or CSV files for larger sets of data. QPR Process Analyzer took in easily Basware data and not only gave the means for effective analysis but also visualized the process”, Hirva continues.
“The experience from Basware and our customers was that ABPD is a cost-effective and fast way to get clarity to the process. You get quick access to fact-based information. As per the software, QPR ProcessAnalyzer, the user experience was good as the threshold for adoption is low. The Excel user interface is familiar so basic analyses can be done with working knowledge of Excel”, Hirva concludes.
“ABPD is a cost-effective and fast way to get clarity to the process – quick access to facts”
Janne Hirva Manager, Portfolio & Operations, Basware
“Problems in the invoicing process were clearly visible in the transaction data, giving a basis for further development. Customers did not need to guess anymore – they received facts.”
Janne Hirva Manager, Portfolio & Operations, Basware
Process bottlenecks exposed
With process facts at hand, there is no longer a need to base improvement decisions on a mere hunch. The analysis makes all issues that there might be obvious.
Q: What benefits did you get ultimately from the analysis?
“QPR ProcessAnalyzer delivered all relevant information so that predetermined questions were not needed. The problems with the invoicing process were visible in the transaction data, which also provided a basis for further development of the process. On a different note, it also showed areas, which were working well. But overall, customers did not need to guess anymore – they received facts”, comments Hirva.
“The process owners were astonished at the level of detail that could be obtained from the invoicing process. If organizations think that they have optimized the process to a T, they are mistaken. They can still make surprising discoveries from the data, which will make a difference in the process performance. This will ultimately affect customer satisfaction via correct invoicing and ensure cashflow with the timely process.”
Any process, any IT-system
“From QPR perspective, it was great to work with a forward-looking company who was able to find several use cases for ABPD in their own business.”, Mika Leonsaari, Director of Global ABPD Business at QPR comments.
“QPR ProcessAnalyzer fits well to Basware’s solutions as from the start, invoice handling is very much process oriented. It was also great to see how easy getting the data was for Basware, and how well the concept of being able to analyze any process from aPortfoliony IT system was realized. With this in mind, ABPD should be the default starting point when improving processes.”
“QPR ProcessAnalyzer is an excellent tool to develop and improve processes. You get the exact and relevant information quickly. It is easy to adopt into use with straightforward data import from different systems”, Hirva summarizes.
Basware provides open, secure, cloud-based purchase-to-pay and e-invoicing solutions to organizations of all sizes, resulting in greater efficiencies in procurement, accounts payable, and accounts receivable. Basware is the global leader in providing solutions for better buying, better selling, and connected commerce.