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Inefficient business processes cost organizations millions of euros

The celebration of Celonis World Tour in Spain, the event focused on digitization, operational excellence and efficiency, has concluded that inefficiencies in business processes cost companies millions of euros.

Celonis, world expert in executive management, was able to bring together personalities from different relevant companies such as El Corte Inglés, Repsol, Grupo Ilunion, Telefónica or Navantia, among others, who have analyzed the course of process mining in their sectors.

The process mining it is a discipline that allows you to analyze and monitor business processes. This sector has grown exponentially in Spain in recent years, due to the need to reduce costs, increase efficiency and improve sustainability.

Ana Torres Ramírez, director of economic-commercial services and of IT and Digital for Repsol Corporation, affirms that they have identified 2.3 million euros of savings since they apply execution management to their processes. “In the framework of our digital transformation, Celonis is being a key lever. In this first year, we have worked on optimizing the S2P (Source-to-Pay) and O2C (Order-to-Cash) processes in three lines: analyse, measure and act. The result is the creation of a control center that seeks to improve the quality of our service and greater operational efficiency thanks to the automations implemented through Celonis».

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For her part, Marisa Granados, IT Manager of Grupo Ilunion, explains that “We have initially focused on solving those inefficiencies that have the greatest impact on the company. We had been automating processes through RPA for 4 years and we wanted to go one step further. We believe that excellence in our processes depends on knowing how we are operating and what inefficiencies we have”.

The inefficiencies in business processes drastically reduce performance. In fact, one in five orders is canceled due to out of stock, and products are often shipped but not billed, leading to dissatisfied customers and lost revenue. In this sense, process mining is capable of extracting data from the underlying systems and creating a comprehensive and real-time visualization of business processes, knowing where bottlenecks occur, where the failures are, how the experience can be improved of employee and client, and create a strategy, by simulating scenarios, that will guarantee obtaining the desired results.

Process automation

Customer data demonstrates that companies are getting serious about not only solving and automating processes, but also finding ways to execute and perform better, especially amid global uncertainties like supply chain disruptions, inflation and sustainability concerns.

Javier Díaz, vice president of the Iberia and LatAm region at Celonis, explains that “execution management is key to optimizing business processes and reducing costs in an agile and efficient manner. Currently, most companies worldwide are not capable of managing the large volume of data at their disposal and only take advantage of a small fraction of unstructured information. Both globally and in Spain, large and medium-sized Spanish companies have invested billions of dollars in technology in recent years to digitize their processes, but are facing many implementation problems. Many processes run on outdated and fragmented platforms, but Celonis provides visibility and a holistic view of what is happening in each process, and then fix inefficiencies within those processes.”.

Along these lines, process mining and execution management also help mitigate the negative impact that inefficiencies have on the planet. Supply chain inefficiencies, for example, are a major cause of the trillion-dollar global food waste crisis, with 1.6 billion tons of food lost or wasted each year, according to data from Boston Consulting Group.

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