How to win in an economic downturn with Process Mining.

In a Harvard Business Review Article from 2019, they wrote about learnings from the previous recession: 

“Most firms suffer during a recession, primarily because demand (and revenue) falls and uncertainty about the future increases. But research shows that there are ways to mitigate the damage.

In a 2010 HBR article “Roaring Out of Recession,” Ranjay Gulati, Nitin Nohria, and Franz Wohlgezogen found that during the recessions of 1980, 1990, and 2000, 17% of the 4,700 public companies they studied fared particularly badly: They went bankrupt, went private, or were acquired. But just as striking, 9% of the companies didn’t simply recover in the three years after a recession—they flourished, outperforming competitors by at least 10% in sales and profits growth. A more recent analysis by Bain using data from the Great Recession reinforced that finding. The top 10% of companies in Bain’s analysis saw their earnings climb steadily throughout the period and continue to rise afterwards. A third study, by McKinsey, found similar results.

The difference maker was preparation. Among the companies that stagnated in the aftermath of the Great Recession, “few made contingency plans or thought through alternative scenarios,” according to the Bain report. “When the downturn hit, they switched to survival mode, making deep cuts and reacting defensively.” 

Even though a cost-cutting approach in an economic downturn is the most common approach, it can be a slippery slope as it has proven to result in:

  • Delays in strategic initiatives
  • Reduced Customer and Employee satisfaction
  • Decreased competitiveness
  • Decrease in sales

In the worst-case scenarios, this can turn into an evil downward spiral.

Gartner states, “The lessons learnt in previous downturns show that industry leaders accelerate during downturns by boldly investing in initiatives that matter.” McKenzie suggests that companies should consider more structural solutions that will not only manage costs but also build resilience and drive long-term value creation.

Process inefficiencies can be turned into a cost-saving opportunity. Through reviewing and transforming your business processes, you are able to remove inefficiencies that will not only save cost but also improve your business operations in the long run and ultimately result in:

  • A sustainable competitive advantage
  • Improved customer and employee satisfaction
  • Better business efficiency
  • Increased competitive edge
  • An incline in sales

Process mining offers fact-based insights into your current process execution and sheds light on specific bottlenecks in your operational processes. It will reveal and calculate the potential value of recommended improvements, allowing your teams to accelerate their efficiency and output without additional effort.

Process inefficiencies can be turned into a cost-saving opportunity. Through reviewing and transforming your business processes, you are able to remove inefficiencies that will not only save cost but also improve your business operations in the long run and ultimately result in:
  • A sustainable competitive advantage
  • Improved customer and employee satisfaction
  • Better business efficiency
  • Increased competitive edge
  • An incline in sales

Process mining offers fact-based insights into your current process execution and sheds light on specific bottlenecks in your operational processes. It will reveal and calculate the potential value of recommended improvements, allowing your teams to accelerate their efficiency and output without additional effort.

How does process mining promote saving?

1. Improves Productivity

A process mining tool can help reduce rework, invoice corrections, order changes, blocks and duplicate approvals.  Additionally, it can identify potential automation that will make a tangible difference.

2. Reduces Working Capital

By removing all bottlenecks in processes, companies can achieve shorter lead times and faster delivery.  We can achieve a just on-time execution and avoid too-early or too-late purchases, payments, and deliveries.

3. Optimise purchasing spend

Process mining can indicate if there is overspending happening due to maverick buying habits and ensure that an organization leveraging from cash purchases and discount opportunities.

The QPR Process Mining Business Case Calculator was developed based on real customer cases, industry benchmarks and analyst research.  The tool is designed to assist organisations in understanding how they can soften the impact of an economic downturn and even emerge stronger from it.

To view the live demo webinar click on the following link:

https://www.qpr.com/webinars/process-mining-economic-downturn#register 

Get a quick overview so you can spend your time improving your processes.

You can easily define and set up processes according to your own needs using a convenient layout tool. In addition, since all types of workflow processes can be managed, you get all case management in one single system. 

Analyses, statistics and reports give you an unbeatable overview with real-time status and division of responsibility. Nothing has to fall through the cracks anymore and you always have an accurate and up-to-date base for decision-making.

CANEA Process is a tool that allows you to model and share business processes in an easy-to-use graphical web interface.

Seeing is understanding

Visualisation gives all employees an understanding of the organisation’s processes, activities, responsibilities and information flows.

Living processes

Identifying working methods while making it easy to update is the basis for continuous improvement of processes.

Create a complete picture

Linking together documents, information and tools with clickable process maps create an intuitive and comprehensive management system.

CANEA Workflow is an IT solution that automates, quality-assures and speeds up administrative workflow processes.

You can easily define and set up processes according to your own needs using a convenient layout tool. In addition, since all types of workflow processes can be managed, you get all case management in one single system. 

Analyses, statistics and reports give you an unbeatable overview with real-time status and division of responsibility. Nothing has to fall through the cracks anymore and you always have an accurate and up-to-date base for decision-making.

By creating executable processes in CANEA Workflow, you get both better control of the situation and smoother processing.

Streamlining the work

Ensure compliance and that handovers are done correctly and with the right information.

Correct decision support

You get an unbeatable overview of the processes in real time, with both clear reports and clear diagrams.

Improve processes continuously

Our process support can be constantly adapted to changing needs and requirements. In this way, we give you the best possible conditions for your daily work.

A document management system without complicated folder structures.

CANEA Document combines simple and intuitive search features with powerful features for managing documents from a life cycle perspective.

Maximum availability
Search and find information quickly based on what you need, not where it is stored.

High security
Ensure accuracy, changes and access to all information – with high traceability.

Fulfils requirements
Manage information according to standards, legislation and other requirements for document management.

CANEA Document supports everything from production, publication and modification to archiving and deletion – with full traceability and version management.

CANEA Document provides secure management of all types of documents – in one place. Tagging the information with metadata creates a virtual, multidimensional folder structure. This means that a document appears in multiple locations at the same time, with authorisation-controlled access. The right information in the right place for the right users at the right time!

You can usefully add your company’s process-oriented management system to CANEA Document. All production and distribution of documents is quality-assured and streamlined. In addition, your employees always have access to the most up-to-date version of the documents – directly via intranet, tablets and mobile phones.

Improve the performance of your project activities

CANEA Project is a comprehensive project tool with integrated support for all types of projects and parties– such as management, resource owners, clients, project managers and project participants. CANEA Project gives you an excellent overview of your entire project portfolio, including profitability and status, making it easier to prioritize and make decisions.

CANEA Project shares all important project information with both internal and external members.

Let your project manager focus on management rather than administration and distribution of the information.

Gather all project information in one place and make it available to both internal and external members.

Helps you with prioritization of projects, resource management and analysis of portfolios and programs.

Make reality of the strategy

CANEA Strategy makes it possible for organisations of all sizes to create a unique common thread from the strategic work to the daily operations. We do not just provide performance management tools but rather a completely new generation of IT support for strategy activation. The system guarantees and provides support throughout the chain from strategy to execution. You get no results without action. CANEA Strategy makes it possible in practise! 

CANEA Strategy ensures and provides support throughout the entire journey from strategy to execution.

Create a shared understanding of the strategy, the goal to achieve and how.

Gives management an unbeatable overview of what’s happening, how it’s progressing, and why.

Creates a clear common thread from the strategy to project, initiatives and actions.