Revision. Skat. Rådgivning.

Finance Digital Day20 March 2018

@PwCDanmark | www.pwc.dk/finance

Opening the business process ‘blackbox’ with process intelligence

Natasha Lembke

Director, PwC Financial Effectiveness

Esben Mosegaard

Consultant, PwC Financial Effectiveness

2

@PwCDanmark | www.pwc.dk/finance

Transaction sampling

Workshops

Interviews

Observations

Document Analysis

Walkthroughs

Process Analysis – How it is usually done

3

Subjective information

Outdated information

Incomplete information

@PwCDanmark | www.pwc.dk/finance

Process Intelligence – What is it?

4

Innovative process-analysis methodology based on digital footprint from IT-systems

Utilised through latest data analytical technology

Provide complete process transparency based on factual data

Enable you to monitor process performance

Creates substantial process insight that can be transferred into actions in order to improve processes

@PwCDanmark | www.pwc.dk/finance

Key advantages of using Process Intelligence

5

Objective

Complete

Multi-aspect

Quick

Detailed

@PwCDanmark | www.pwc.dk/finance

Demonstration

Florian Schewior

Manager, Celonis

Martin Andersen

Operations Manager, Celonis

6

LIVE DEMO

1

CELONIS PROCESS MINING

FLORIAN SCHEWIORMANAGER CELONIS NORDICSF.SCHEWIOR@CELONIS / +491747872406CELONIS SE

SUCCESS

COMPANIES LOOSE 10% - 20% OF THEIR MARGIN DUE TO HIDDEN INEFFICIENCIES IN

THEIR PROCESSES.

CUSTOMERSATISFACTION

CUSTOMER SATISFACTION DECREASES RAPIDLY, WHEN

QUALITY AND SPEED OF PROCESSES ARE NOT OPTIMAL.

AGILITY

TRANSPARENCY, FLEXIBILITYAND INNOVATION IN PROCESSES

IS ESSENTIAL TO BE COMPETITIVE IN THE MARKET.

How do you get insight into your processes?

SPEED

INSIGHT

…

ROI

PROCESS MODELS CONSULTING DEFINE KPIs

How do you get insight into your processes?

SPEED

INSIGHT ✓ FULL TRANSPARENCY

✓ FAST & ACTIONABLE INSIGHTS

✓ HIGH ROIROI

PROCESS MINING

“What if you could put yourcompany through an MRIscanner to get a detailed pictureof how well your processeswork, see the bottlenecks, andunderstand the causes ofdelays, unnecessary costs, andlost productivity?”

Vodafone on Celonis in Forbes Magazine onJUN 15, 2017 @ 09:39 AM

“What we see with Celonis is an realtime X-Ray image, the ‘as-is’situation, allowing us to identifyissues and design a better process.With Celonis, the data speaks andtells us the cause of the problem”,Israel Exposito, Global Process Lead, Vodafone

CELONIS IN FORBES

Process

Mining

HumanChange

TechnologyShift

ProcessTransformation

Improve the way how employees execute the process,e.g. via change management and user training

Change the underlying technologies, e.g. via System Transformation & Migration

Change the way how the process is executed,e.g. via Harmonization, Outsourcing andAutomation

ConsultantsRPA

BPM

BPO

ERP SI

SI

DataTransactional

Master

2016-12-01 CREATE PURCHASE ORDER #12342016-06-23 START PRODUCTION #56782016-07-14 RECEIVE PAYMENT #12342016-07-14 SEND EMAIL #9012

EVENT LOG

7

AI-POWERED ROOT CAUSE ANALYSIS & IMPROVEMENT

VISUALIZATION OF THE ACTUAL PROCESSES

How does Process Mining work?

Celonis PI (Proactive Insights Engine) combines Process Mining with machine learning and A.I. to achieve highly intelligent and fully automated insights.

It was designed to transform your organization into a value driven enterprise.

PROCESS MINING JUST GOT A LOT SMARTER.

CELONIS

PI AUTOMATICALLY DISCOVERS THE PROBLEMS IN YOUR PROCESSES

PI IS SMART AND ADVISES YOU HOW TO CHANGE YOUR PROCESS

PI IS BY YOUR SIDE - WHENEVER AND WHEREVER YOU NEED IT

LIVE DEMO

…IS A SMART BIG DATA TECHNOLOGY THAT ANALYZES AND ADVISES YOU ON HOW TO IMPROVE YOUR PROCESSES BASED ON DATA GENERATED IN YOUR ORGANISATION –IN REAL TIME.

GET MAXIMUM TRANSPARENCYAND EFFICIENCY FOR

YOUR PROCESSES. PROCESS MINING

Procurement

Accounting

Logistics

Finance

HR

IT Service

Quality

Process Documentation

One ERP Harmonization

Post-Merger Integration

OPERATIONAL EXCELLENCE

S/4HANAMIGRATION

• The transition to a S/4 HANA system requires profound knowledge of processes and user behavior

• Celonis Process Mining highlights differences and gaps among systems

• This ensures the optimal blueprint for the new ERP system rollout and reduces migration efforts

Use

Cas

esP

rocesse

s

Digitalization

• SSOs have high transaction volumes and are typically very cost sensitive

• They are an ideal target for process standardization and optimization

• With Celonis Process Mining, SSOs continuously monitor global process conformance and efficiency

SHARED SERVICES

Sales

Production

• Process excellence is key for best-in-class performance of any customer

• Celonis Process Mining enables projects with full transparency of all processes to quantify inefficiencies

• Continuous tracking and monitoring ensures long-term impact

BUSINESS PROCESS OUTSOURCING

• Know your client’s characteristics is essential prior to moving processes to outsourced environments

• Quality and depth of the analytics phase is significantly increased, providing fact-based decision criteria that help with sizing and committing towards the client

INTERNALAUDIT

• Point by point manual audit of processes risks undetected compliance and fraud issues

• Celonis Process Mining identifies i.a. missing approvals, duplicate payments and maverick buying

• Celonis ensures and monitors segregation of duties and IKS controls

ROBOTIC PROCESSAUTOMATION

• RPA is capable of reducing process costs and increasing competitiveness

• Celonis Process Mining helps to identify weak points in the processes that should be addressed with RPA

• Celonis allows to monitor RPA projects and verifies their cost savings and ROI

Celonis Process Mining is the digitalization solution for a wide range of business situations

PROCESS MINING USE CASES

The roadmap for digital organizations

Standardization of Processes

Advanced RPA and AI

Robotic Process Automation

Celonis Transformation Customers

✓ Integral part of digital transformation and $1Bn by 2016 savings project

✓ 40+ processes analyzed globally across 5,000 users across global business services

✓ 70 SAP ERP, and 30 3rd party systems

✓ 14% higher on time deliveries and 21% higher alignment to customer requests

✓ Finance & Supply chain transformation

✓ Reduced time to market by 20%

✓ Cut process costs by 11% (from $3.22 to $2.85 per purchase order)

✓ Business transformation: automate, simplify and standardize processes globally

✓ Consolidating regional legacy systems into One ERP globally

✓ 2020 targets: reduce operating costs by $700M, reduce working capital by $500M

Where Vodafone came from…

CASE STUDY VODAFONE

How Vodafone addressed it

CASE STUDY VODAFONE

COLLECTED CASH DISCOUNT

TOUCHLESS INVOICE

Vodafone redesigned the invoice bundling process within two months.

Cash discount is captured in 98% of all cases.

Furthermore, more than 120.000 invoices per year could be removed

through intelligent consolidation, preventing considerable rework.

GLOBAL REPORTINGPERFECT PURCHASE

ORDERS

By using Celonis, Vodafone was able to identify unnecessary manual

rework and process inefficiencies. The perfect purchase order rate

increased from 72% to 92%. Costs per purchase order could be

decreased by 20%. At a volume of 3 million purchase orders per year,

savings are significant. Vodafone also improved its time-

to-market by 20%.

Vodafone leveraged Celonis’ capabilities to analyze as-is

processes, benchmark different approaches, identify bottlenecks and define target processes. This

allowed Vodafone to run a globally unified reporting.

Analyzing the end-to-end Accounts Payable process, Vodafone identified where

manual interventions appeared and how they could be avoided. Vodafone was able to increase the touchless invoice rate from

12% to 40%.

40% 98% 92%

12% 20% 73%Before

After

Vodafone Case study: Outcome within one year

“We have leveraged the process insights to achieve significant efficiencies in invoice processing; >30 FTE savings in 2 years”, Richard Cooper, Global Process Lead Finance

Intro to Celonis

CELONIS IS AN INNOVATIVE, AWARD-WINNING SOFTWARE COMPANY AND THE MARKET LEADER FOR PROCESS MINING.

▪ We work with leading customers in the world40% of Fortune 100 companies are already Celonis customers

▪ Backed by world class investors Accel & 83 North/ Greylock (Facebook, Dropbox, Spotify, Slack, AirBnB, LinkedIn)

▪ We make our customers more successful By improving every process throughout their organizations

▪ Among fastest growing software companies in the world 4.000% over the last 4 years, 300% yoy

FLORIAN SCHEWIORMANAGER CELONIS NORDICS

Mobile +49 174 7872406 Phone +49 89 4161596-749Fax +49 89 4161596 79

f.schewior@celonis.com

CELONIS SETHERESIENSTRASSE 680333 MUNICHGERMANY

Your Personal Contact

Process intelligenceData-driven process analytics

Do you know your processes?

There is often a gap between how business processes are intended to work and what the reality is. The reasons may be inherent process complexity, changes that occur over time, deviations from the “happy path” for operational reasons, users with broad access in the IT systems, and finally, people often only see part of the processes and miss the complete picture. The traditional approach to understanding processes is through interviews, workshops, observations and document analyses. This approach can be time-consuming and prone to subjective judgement based on incomplete or outdated data, hence leading to inaccurate information.

Our approachPwC’s process intelligence approach is based on analysis of factual transactional data from organisations’ ERP systems. When combined with PwC’s industry insight, process knowledge and experience, it allows us to quickly and objectively understand and improve the processes subject to analysis. PwC’s process intelligence includes two key components: process monitoring and process insight.

Process monitoring dashboards are tailor-made visualisations that allow for quick process insights and continuous monitoring of your process. They include key performance indicators and process visualisations that enable you to identify performance deviations, process inefficiencies, standardisation level, automation rate as well as potential controls and compliance issues.

Process insight provides an end-to-end view of a given process. It allows for an in-depth understanding of the current state of your processes based on factual transactional data. Inefficiencies and bottlenecks can be easily identified using automated root cause analyses and advanced process mining techniques, which enable identification of direct causes of unwanted process behaviours and provide actionable recommendations for process improvement. Usually, this type of analysis results in a report comprising concrete actions to be taken in order to mitigate specific issues.

How process intelligence can help…PwC’s process intelligence is an efficient and effective approach to understand your data and processes and it is system independent and can be applied to variousprocesses of clients in various industries.

• Reduce costs of operation by reducing rework and increase process automation

• Identify unwanted behaviours related to payment processing, such as fraudulent transactions, duplicate payments and backdated journals

• Optimise operations in shared service centres by improving process design and monitoring of operations

• Increase effectiveness and improve business value of internal audits teams

• Identify inappropriate access rights that have resulted in segregation of duties violations and increased process risk

• Identify executions deviating from the process design and transactions instances where controls were circumvented

Esben MosegaardConsultantT: (+45) 3070 0852 eso@pwc.dk

Natasha LembkeDirectorT: (+45) 5133 1677nml@pwc.dk

For more information, please contact:

• Process overview: documents overview, rework and automation rates, process lead times, process standardisation assessment

• Vendor master data analysis: duplicate vendors, modifications to master data

• Validation of process controls: three-way match, document approvals, segregation of duties, changes to documents

• Payment analysis: payment delays, lost discounts, duplicate invoices and payments

…and the types of analysis it providesPwC’s process intelligence is an approach to flexible and in-depth analysis of business processes where the scope is adjusted to your needs. It supports multiple enterprise systems, including SAP, Oracle, SalesForce, Microsoft Dynamics NAV, etc.

Example analytics content includes:

Solution delivery optionsOn-demand professional service: PwC extracts, loads and processes client data in the PwC process intelligence framework and performs process analyses basedon the organisation’s needs and areas of concerns. Optional next steps are process optimisation or on-premises implementation of process intelligence software forcontinuous monitoring.

On-premises implementation: PwC builds a process intelligence solution on premises, directly linked to your ERP systems and tailored to your businessrequirements. PwC can support you in building the business case for implementation, positioning the solution in your broader data strategy, and executing first processanalysis.