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Process Mining (As Part of e-book Transforming Logistics with Analytics)

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Process Mining can roughly be defined as a data-driven approach to process management. The basic idea of process mining is to automatically distill and to visualize business processes using event logs from company IT-systems (e.g. ERP, WMS, CRM etc.) to identify specific areas for improvement at an operational level. An event log can be described as a database entry that signifies a specific action in a software application at a specific time. Simple examples of these actions are customer order entries, scanning an item in a warehouse, and registration of a patient for a hospital check-up.

Process mining has gained popularity in the logistics domain in recent years because of three main reasons. Firstly, the logistics IT-systems' large and exponentially growing amounts of event data are being stored and provide detailed information on the history of logistics processes. Secondly, to outperform competitors, most organizations are searching for (new) ways to improve their logistics processes such as reducing costs and lead time. Thirdly, since the 1970s, the power of computers has grown at an astonishing rate. As such, the use of advance algorithms for business purposes, which requires a certain amount of computational power, have become more accessible.

Before diving into Process Mining, this course will first discuss some basic concepts, theories, and methods regarding the visualization and improvement of business processes.


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