Production Planning

IBM x Celonis for BIAL

October 2021

1 IBM confidential | February 2021

IBM and Celonis

What changed in the World that Process Mining becomes relevant?

The evolution of enterprise processes towards end-to-end workflows requires a revolution to Process Transformation
services
The evolution of Enterprise Processes…

Automated,
Manual IT based
frictionless
Processes Processes
Workflows

…is driving the Process Transformation revolution:

Process Mapping, Interviews Data driven & automated

manual modelling process analysis

Subjective, Partial Objective, Complete

Manual Process Data-driven
How?
Analysis Process Mining
High effort, Costly Immediate, Self-Service, Speed

One-time, limited range Continuous Monitoring

Analysis and Enhancements

2 IBM confidential | February 2021

IBM and Celonis

Celonis visualizes the digital footprints of processes and provides transparency for optimization
A technology to analyze processes based on event data to get a fact-based and objective view on what is really happening – across all
systems in a single environment
Celonis – Data-driven analysis of process:

Tracing Digital Footprints by

Process Mining
Process Harmonisation Process Re-design
analyzing Event Logs

Engine
• Every interaction in transactional
systems leaves digital footprints
RPA Cognitive Automation

• For Process Mining, we extract and

aggregate these records of time-stamped
event log data from key IT-systems

• The technology then seamlessly

reconstructs entire end-to-end process
flows as they actually happen Process Selection Data Collection & System Discover (Measure & Know)
Connection
• Process Mining is purpose-built to Select the right process area based on Data-based activities are extracted Visualize and understand process
handle the inherent complexity and volumes, process maturity, system from all relevant IT systems. The executions and inefficiencies to
dynamism of the modern process landscape and business priorities. data model of the end-to-end process identify execution gaps.
environment is loaded into the Process Mining
engine.
From Data to Insights
From Insights to Value

3 IBM confidential | February 2021

Why IBM & Celonis: we are not just Celonis Certified we know how to surround the solution with the
accelerators that ensure your end-to-end success: Advanced Analytics, Automation, Exponential Technologies
and Experience Design/Research

- IBM is the leading strategic partner of Celonis - Beyond serving clients, IBM uses Celonis
for itself at the global level
- 700+ certified Celonis practitioners located around
the world + several thousands trained in 2021 - Proven experience in the delivery and
operation of offshore core and flexible
- Our process re-engineering and analytics
models
management consultants are certified business
analysts & business value architects. - IBM can cover the entire value stream
from set-up of analyses, insight
- Our certified data engineers are also data scientists
generation, and process transformation.
that are experienced in delivering RPA, Advanced
Analytics
- Unrivalled skills in Finance and Digital
transformation and delivery coupled with Celonis
insights

4 IBM confidential | February 2021

Execution Excellence in Production Planning
Success Story
Happy Highlights
Path Create Production Release Production Scheduled / actual (Work Center) Scheduled / Production Order
Order Order Start Start / End Actual Finish Completed

95% On-Time Delivery Rate

Business Operational Cost Spend Ensure Quality & Achieved
Revenue Increase
Objectives Reduction Optimization Mitigate Risk

Key Order Fill Rate Perfect Order Rate Cash-to-Cash Cycle Time Supplier OTIF Rate
Metrics Revenue loss due to stock Inventory Carrying Cost Inventory Turnover Days of Supply
outs Improved fulfillment operations
Scrap Rate by 20%

Improvement Forecasting Accuracy Material Movements Material Price Increases Process Compliance Increased production efficiency
Opportunities Customer Order Cancellations Order Bundling Order Consolidation Internal Cycle Times / Plan
and reduced wait times
Adherence
Supplier Reliability Production Efficiency Improved Contract Usage
Material Interdependencies
Master Data Management Maverick Buying
Supplier OTIF
Resource Utilization Planning Accuracy
20% increase in inventory
Waste Reduction accuracy
IBM and Celonis

Within six weeks IBM can implement Celonis and derive a set of improvement potentials
IBM will support clients running sprints for each process domain. This approach allows learning for client teams and will create
excitement around process mining and its outcomes within the organization.
Recommended: Parallel user enablement via training cloud and on-site trainings

1 Project Kick-off & 2 3 4 Business 5 6

Phase

Set-up connection to Process Value creation Finalization

requirements analysis Σ 6-8 weeks
source systems connection & Action Engine & handover
definition & validation

• Goals and process definition • Set up continuous data • Data model deployment and • Business use case refinement • Setting-up skills for the • Documentation
• Process discovery extraction from source validation • Business Validation Action Engine • Technical & business
Description

• Kick-off Workshop systems to EMS • Process visualization Workshop • Value Realization handover
• Requirements Workshop • Validation of process data • Creation of analyses • Analysis refinement and Workshop • Handover Workshop
customization • Test and refinement of skills

• Continuous data connection • Initial process connection • Analyses finalized • Action Engine skills set up • Handover of Celonis
stones
Mile-

set-up • First analyses developed • Process connection and • Root-causes for implementation to project
analyses validated inefficiencies identified team
Effort

4 MD 3 MD 6 MD 6 MD 7 MD 4 MD Σ 34 MD1)
+1 MD Process SME +1 MD Process SME +1 MD Process SME +1 MD Process SME

Project kick-off Connection to source First scope developed Analyses ready Go live Validated results & process
*MD = man day (8 hours) systems set-up documentation

Initial technical implementation Adoption & impact realization

6 IBM confidential | February 2021 *Effort estimation for one source system and one EMS store process
 Backup

7 IBM confidential | February 2021

IBM and Celonis

Art of the Possible – With process Mining we can visualize processes beyond system boundaries
End-to-end process insight that combines Business Data with Desktop Data and enables unprecedented levels of automation and
productivity by leveraging the entire Celonis platform

There are two sides to every Process: Insights can drive Value:

Your ERP
Uncover inefficiencies in manual work patterns
Customer
Journey
outside your transactional systems
Order-
to-Cas h
Hire-
to-Retire Procure-
to-Pay

Measure and optimize your workforce productivity

Lead-
to-Clos e

Cus tomer
Service

Link manual processes with enterprise business

processes & drive next-best-action

BUSINESS DATA DESKTOP DATA

Exemplary Use Case:

At a large insurance company, we leveraged Celonis to analyze an end-to-end claims processes. Besides a claim management system, the telephony system was connected provided
transparency to the process end potential execution gaps. Tasks Mining would allow us to further capture all activities outside of IT-systems running employees desktops.

8 IBM confidential | February 2021

IBM and Celonis

Process Mining Squads iteratively implement Celonis across all processes.

Leveraging agile process mining iterations have proven to shorten time-to-value, while maximizing the project success – running
those iterations jointly between IBM and the client team allow enablement while accelerating value delivery.

Process Mining Squad (basics) Required Client Roles / Support:

Process Mining Consultant Process Mining Developer Process Business IT System Process Process
• Consults the client on overall • Identifies, extracts and transforms
SME Owner Owner SME Mining
process mining approach. data for the process mining engine • Provides process best practices & Champion
benchmarks
• Defines scope and deliverables • Identifies IT system and
with the client. implements data connectors • Supports the identification of
• Builds Dashboards, KPIs and • Develops data model
execution gaps Iterative Process Mining
identifies process gaps. • Facilitates the discussions with
process owners / users
• A process mining squad tackles one process and one IT
system in one process mining iteration

Certified Solution Professional or Certified Impl. Professional Celonis Certification optional • Iterative process mining shortens time-to-value and
BVA BVA enables learning opportunities

• The process mining squad can be shadowed by client teams

to get on-the-job training in process mining

9 IBM confidential | February 2021