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Exclusive: How Celonis is transforming business efficiency with process mining

In today’s digital landscape, businesses strive for efficiency and effectiveness, often turning to innovative technologies to unlock new potential. Celonis, a front-runner in the field of process mining and process intelligence, stands out for its transformative approach to optimizing business operations. By focusing on bridging data gaps and establishing robust connections, Celonis enables companies to harness the capabilities of artificial intelligence (AI) and uncover significant improvements in their processes.

Dr. Lars Reinkemeyer, Chief Evangelist at Celonis, emphasizes that the company’s methodology is systematic and methodical. “Right now, it’s a step-by-step approach,” he explains, drawing parallels to the gradual advancements in autonomous vehicle technology. While there is considerable excitement surrounding AI advancements like generative tools, practical applications in business settings are still emerging.

The cornerstone of Celonis’s success lies in providing a solid data foundation. The Process Intelligence Graph—a comprehensive and cohesive data backbone—integrates various process data, event logs, and relevant process connotations. Dr. Reinkemeyer states, “Having one data backbone where you have all the information for a customer order, which translates into a manufacturing order, triggers purchase orders, and connects to shipment orders, creates end-to-end transparency.” This transparency enables businesses, including industry giants like Pfizer and BMW, to realize considerable financial gains. “They have realized triple-digit millions of value,” he notes, a testament to the power of aligned data strategies.

Despite these advancements, challenges remain in achieving AI accuracy and reliability. Dr. Reinkemeyer acknowledges that while the technology works well for clearly defined processes, the true breakthrough will occur when AI can autonomously predict actions based on complex and unpredictable scenarios. According to him, “AI can only be as intelligent as the data available. The challenge is making autonomous analysis intelligent and dependable.”

Celonis’s innovative “Process Intelligence Graph,” often referred to as “the pig,” plays a pivotal role in this strategy. The idea is straightforward: “The more data you have in this backbone, the more intelligent it becomes.” By consolidating data across various functions like procurement, finance, and supply chain, organizations can derive consistent and reliable insights for enhanced decision-making.

The transition from data visibility to actionable insights is crucial for businesses. Dr. Reinkemeyer likens this journey to an X-ray: it begins with discovering inefficiencies and culminates in targeted actions geared toward resolving these issues. “Insight without action is worthless,” he asserts.

A practical illustration of this concept is Celonis’s collaboration with Siemens. Dr. Reinkemeyer recounts the evolution of their initiative to streamline logistics, starting in 2018 when they achieved transparency across 30 million items shipped annually. This collaboration morphed into a responsive supply chain that allows Siemens to foresee potential disruptions and maintain delivery commitments. “It’s an incredible evolution, building a full global supply chain with transparency,” he adds.

The COVID-19 pandemic highlighted the critical need for resilient supply chain solutions. Dr. Reinkemeyer points out that inefficiencies not only compromise customer satisfaction but also strain working capital. Celonis’s technology addresses these issues effectively by identifying delays and inefficiencies in real time, enabling proactive interventions.

Customer feedback often reveals surprise at the sheer amount of inefficiency uncovered. “The first reaction is always, ‘Wow, I wasn’t aware that my process had so many variants and inefficiencies,’” Dr. Reinkemeyer comments. Yet, he emphasizes that value realization must follow insights. “Value is the name of the game. Insight must lead to action to deliver results.”

A reliable AI framework is a fundamental aspect of Celonis’s strategy. Within defined process scopes backed by solid data, the technology performs exceptionally. Furthermore, Celonis’s open ecosystem enables partners like Pfizer and BMW to develop and refine their AI capabilities tailored to unique needs.

In the realm of procurement, Celonis has made significant strides. For instance, Deutsche Telekom has reportedly achieved 95% automation in standard purchase orders. Dr. Reinkemeyer believes such advancements are a natural evolution in business operations: “No one enjoys processing 100 purchase orders a day. AI will allow people to focus on more meaningful work,” he states. This shift is particularly vital for regions facing productivity challenges due to demographic changes, such as Japan’s ageing population.

Real-world applications underscore the tangible benefits that AI-driven process management brings. Dr. Reinkemeyer shares the example of Smurfit Kappa, where Celonis’s technology allowed for seamless inventory management across different locations. Their AI system successfully identified material availability from a different plant, enabling timely shipments to meet manufacturing deadlines. This form of cross-location intelligence signals the potential for AI to function as a vital asset in future business operations.

Ultimately, Dr. Reinkemeyer envisions a future where support processes operate at an efficiency level of 95% to 98% automation, enabling organizations to concentrate on their core business functions. “At the end of the day, our mission is to help them realize value, and that’s what we’re passionate about,” he concludes.

As businesses continue to navigate the complexities of modern operations, Celonis offers a compelling glimpse into the future of process optimization, driven by intelligent, data-informed approaches.