Process Intelligence White Paper - IDS Scheer AG

ARIS Platform - White Paper
White Paper
January 2009
What is Process Intelligence?
www.process-intelligence.com

2
White Paper
Table of Content
Business performance of an organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Next generation analytical systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
How Do Companies Use Process Intelligence? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Strategic KPI management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Tactical Process Intelligence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Aggregating process instances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Variance analysis and root cause analysis using advanced analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Organizational analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Operational Process Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Real-time process monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Link to multiple data sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Integrated correlation engine to identify critical situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Interactive dashboards with alert function. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Seamless integration into ARIS Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Implementing Process Intelligence Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Strategy phase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Design phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Implementation phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Controlling phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Usage Scenarios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Order processing (order-to-cash). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
IT service management / incident management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Real-time process monitoring in transaction banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Sales management (lead-to-order) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Process Intelligence in the insurance sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Order processing in logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Business performance of an organization
What is Process Intelligence
Business performance is typically associated with the figures used to measure financial success, such as revenues,
profits, cash flow, etc. Normally; however, it is not possible to influence these financial indicators
directly; rather, they are the result of business processes that represent the organization’s operational activities
(see fig. 1). To improve their performance, organizations must therefore focus on business process efficiency
(“doing things right”) and effectiveness (“doing the right things”). Analyzing the resources used makes
cost reductions possible, while an enhanced customer focus can increase customer satisfaction and hence
revenues.
Information obtained from analyzing and evaluating live business processes provides an important leading
indicator for a company’s performance and value creation activities. Merely collecting KPIs on a data-driven
basis without linking them to processes does not boost business performance, however. Process-oriented performance
management tools are required that seamlessly enable day-to-day business management at the
strategic, tactical, and operational level.
What, how, why, and who? These are typical questions relating to the individual aspects of end-to-end business
process performance management when identifying the root cause of a looming divergence from contractually
agreed deadline commitments. After all, no business can afford to constantly violate service level
agreements (SLAs). Alongside the quality of their actual product and service offerings, companies are finding
that the ability to meet customer requirements with regard to response times, flexibility, and service excellence
at an acceptable cost is becoming increasingly important for their financial success.
Figure 1: Leading operational indicators translate into financial performance
3

White Paper
Business Process Management and Business Performance Management are closely related, the ultimate aim
of both methods being to gear the business processes of every department and the work of every employee
toward improving performance. Figure 2 shows a typical link between financial indicators and metrics used to
evaluate the performance of business operations (e.g., customer satisfaction, response times, etc.).
By analyzing operational KPIs and including real-world business processes, Process Intelligence brings a new
dimension to corporate management. Process efficiency, and thus operational performance, is transparent at
all times. If defined KPIs are not achieved, the source of the anomaly can be immediately identified and
resolved, which means that management no longer has to wait until the end of the quarter to see if targets have
been met. PI constantly checks how the company is performing in terms of its specified objectives. Crisis management
is replaced by the ability to correct errors before problems become serious.
4
Figure 2: Connecting financial indicators and operational performance
This approach makes it possible to measure company performance, in accordance with the maxim: “You can’t
manage what you don’t measure.” To do this, process-relevant data is extracted from the operational IT systems
and processed.

Next generation analytical systems
What is Process Intelligence
Business Intelligence was introduced in many enterprises to automate reporting. Today, however, analytical
systems for evaluating business performance need to meet radically different requirements.
Kurt Schlegel (Gartner): “The view of BI as an IT-centric activity – getting the right information
to the right people at the right time – is outdated. BI has to evolve beyond that and move toward
business processes and business strategy.”
The following aspects will shape the next generation of analytical systems:
� Process focus
Business Process Management and Business Intelligence are currently converging. This means that
analytical components are now being integrated into process execution to control it as efficiently as possible
– partly without human intervention – and support decision-making (Business Intelligence in
processes). In addition, analysis techniques, such as OLAP, are being used to measure and analyze
process efficiency. Combining BPM with BI enables the extracted data to be placed in a business context,
thereby allowing management to make informed decisions (Business Intelligence about processes).
This fusion of BPM and BI is referred to as Process Intelligence.
� Use by operational departments
Analytical systems are moving out of their ivory IT towers, with new application concepts allowing
departmental employees to configure systems extremely efficiently to meet their particular information
requirements. Such concepts include mashup technologies, which enable users to combine different
internal and external sources of information (e.g., geographical information, customer addresses, sales
figures, etc.) without the need for programming.
� Increased emphasis on everyday operational activity and the vision of a real-time enterprise
Operational BI, event processing, and Business Activity Monitoring (BAM) all feature technologies that
break with the tradition of analyzing historical data. Instead, the focus is on monitoring live processes
with a view to taking appropriate action before problems actually materialize. This trend is supported by
technological advances, such as replacing conventional database systems with efficient in-memory
technologies.
How Do Companies Use Process Intelligence?
Business performance analysis involves the application of strategic, tactical, and operational methods according
to different criteria: target group, aggregation of results, and the time factor.
Figure 3: Process Intelligence can be strategic, tactical, or operational
5

White Paper
Strategic KPI management
Senior managers want aggregated information that is easy to interpret and delivers the relevant facts to support
business management and decision-making activities. A view of the company’s core processes with interactive
traffic lights, trend charts, and deviations from planned KPIs (time, cost, quality, quantity, risk) – that’s
what management needs to keep tabs on performance.
The main purpose of a management dashboard is to provide this information as quickly and concisely as possible
and present it in a clear and attractive way. ARIS Performance Dashboard does this by combining all the
relevant information from core processes to give users an intuitive and interactive view of current company
performance in terms of its processes and organization. Although personalized configuration is possible, the
highest structure displayed by a performance dashboard mostly combines process maps comprising management
processes and main/support processes with analysis of associated KPIs, enabling deviations from
planned values to be identified immediately. Depending on business requirements, process-oriented navigation
in this management view supports drilldown to the desired level of KPI detail (see figure 4).
Figure 4: Aggregated visualization of KPIs
Filters, such as time, region, product group, etc., can be easily applied to analyze specific aspects of business
performance and provide managers with fast access to current, decision-relevant data. Managers only see the
information that is relevant to them and can use the visualized indicators and deviations from planned values
(traffic lights, trend charts) to identify any significant optimization potential. Interactive controls, such as time
bars and context-sensitive smart menus, also enable non-expert users to quickly navigate through the company’s
core process performance. Intuitive data analysis is supported by the combined maps and geographical
information.
The integrated dashboard builder enables (power) users to interactively change and adapt the dashboard
structure via the interface. After selecting the appropriate processes, analysis options, and KPIs, it takes just
a few minutes to choose the type of visualization and how the elements are arranged.
As a Rich Internet Application, ARIS Performance Dashboard combines the outstanding usability of an intelligent
desktop application with the extensive scope of a web solution. The use of Adobe ® Flex technology
avoids the need to install additional components, such as Java plugins, in the browser to develop, operate, or
upgrade ARIS Performance Dashboard. If a company already deploys portal solutions, parts of the dashboard
(process KPIs and analysis options) can be incorporated into an existing portal to provide an integrated view
of the relevant information.
ARIS Platform includes a range of components that provide the process and KPI data to be visualized – ARIS
Process Performance Manager (ARIS PPM) and ARIS Business Optimizer in particular deliver dynamic information
that is ideally suited for display on the Performance Dashboard.
6

Tactical Process Intelligence
What is Process Intelligence
While managers typically require an aggregated overview, process owners need more detailed information.
Their job is to ensure process efficiency and quality – which can only be achieved by continuously monitoring
actual processes and evaluating them in terms of quantity, time, cost, quality, and risk. As a rule, KPI analysis
alone cannot identify weaknesses and optimization potential: It is also necessary to display and analyze the
structure of the as-is process to find out which activities were performed and in what order, who was involved,
and where any weaknesses lie. A comprehensive overview of how business workflows are performing is provided
from two perspectives:
� Quantitative, based on objective parameters
� Qualitative, based on graphical visualization of the structure of actual events.
ARIS Process Performance Manager (ARIS PPM) is a patented tool that enables enterprises to analyze, evaluate,
and monitor their business processes. It measures the performance of IT-supported corporate processes
and analyzes underlying process flows and organizational structures at the business management level.
Companies thus obtain a comprehensive view of their organization’s performance, with their business workflows
being “surveyed” by way of objective process indicators, seamlessly linked with actual process structures.
Using actual processes, ARIS PPM generates a graphical representation of real-world business workflows.
Because every individual process instance can be processed in different ways, simply linking average KPIs
and modeled process models is not enough. For this reason, ARIS PPM can automatically generate a separate
graphical model for every process instance that displays precise details of this particular process and enables
evaluation and analysis (process discovery).
Business processes are typically supported by an array of disparate application systems (ERP, CRM, workflow,
middleware, legacy systems, etc.). ARIS PPM is capable of combining the process-relevant data from these
systems to reconstruct the execution of each transaction from start to finish (see figure 5).
Figure 5: Reconstructing an actual process
7

White Paper
Aggregating process instances
Where the volume of processes is very high (e.g., over 10,000 transactions/process instances a day), separate
analysis of each transaction is not a viable option – aggregation is called for. ARIS PPM enables these transactions
to be aggregated using any combination of filter criteria (such as all standard orders received last
week from customers in region A with an order value in excess of 8,000 euros) and delivers a graphical representation
of the aggregated processes plus (average) KPIs for the selected set.
Figure 6 shows the potential of visualizing a set of process instances.
8
Figure 6: Visualizing process instances and identifying weaknesses
� Identification (and color coding) of weaknesses (extended processing times, high costs, etc.) and optimization
potential in the process flow
� Analysis of probabilities in the control flow and identification of critical paths, exceptions, etc.
� Analysis of how resources (teams, groups, etc.) are allocated to activities

Benchmarking
What is Process Intelligence
In addition, ARIS PPM is frequently used for (internal) benchmarking purposes to compare various scenarios
(including regions, customer groups, sales organizations, product groups, or any combination of these). Two
types of comparison are used here (see figure 7):
� Comparison of key figures (such as throughput time and process costs in region A vs. region B)
� Comparison with regard to the process structure that ultimately delivers these key figures (comparison
of complexity and structure of processes in region A vs. region B)
This software-based comparison normally enables identification of best practices and specific optimization
measures.
Figure 7: Benchmarking – comparison of KPIs and process structures
Variance analysis and root cause analysis using advanced analysis
Compliance with SLAs is one important area where it is necessary to compare measured parameters with
planned values to identify deviations. Process owners can also use automated analysis procedures and intuitive
wizards that enable easier identification of outliers, wide fluctuation ranges, etc. to search for patterns
and transactions with high optimization potential (process mining).
9

White Paper
Organizational analysis
An ARIS PPM add-on module provides an analysis tool that allows a “behind the organizational chart” view
and visualizes actual collaboration between teams and departments within the enterprise (e.g., “How well
does the Technical Sales department fulfill its role in terms of quality and quantity?”). Extensive activity and
communication analysis uncovers the relationships between organizational units and employees, while also
revealing the connection between organizational structure and process execution. Techniques derived from
statistics and sociology (social network analysis) are deployed here, so that users can identify who is performing
a particular task, how often, with whom, and determine the response/throughput times. This enables
optimization that goes beyond pure process changes.
Figure 8 shows the typical procedure when ARIS PPM is used in conjunction with ARIS Performance
Dashboard. If deviations from planned values and weaknesses are identified via the dashboard, ARIS PPM is
used to carry out in-depth analysis into the cause of the anomalies:
10
Figure 8: Top-down analysis
� Distribution (over time, etc.)
� Correlation of features and parameters
� Outlier analysis
� Process mining
� Statistical analysis (averages, deviations, etc.)
� Top/flop analysis/rankings
� ABC analysis
� Special graphical representations (variation, portfolios, etc.)
� Visualization and analysis of process structure
� Visualization and analysis of communication structure (communication analysis, activity analysis)
� Benchmarking

Operational Process Monitoring
What is Process Intelligence
There is an unstoppable trend toward acceleration. Financial transactions, logistics processes, customer relationship
management, compliance with legal requirements – all require lightning-fast response times and point
the way inexorably toward a real-time world. A great deal of information is already obsolete and useless after
just one day. To gain a competitive edge, many enterprises are deploying business models that are approaching
real-time:
� Loans are approved or rejected online in minutes
� Flight and hotel reservation systems display up-to-the-minute details of available options
� Customers making purchases from an online store are also offered other products
Conventional business intelligence technologies cannot cope when it comes to operational monitoring of business
processes, because neither data extraction nor results analysis and presentation is event-driven, which
makes it difficult to monitor end-to-end processes. Event processing is a new technology that links rapid analysis
directly to operational processes. ARIS Process Event Monitor (ARIS PEM) enables organizations to analyze
current transactions and respond to critical events in real time. Its high-performance tracking function
continuously monitors incoming events and proactively identifies critical situations, freeing the user to concentrate
on the most important exceptions and take immediate action. This enables a timely response to risk
or errors in the live business process: prevention is better than cure.
Real-time process monitoring
ARIS Process Event Monitor delivers ad-hoc information about the current status of business processes, such
as
� Transaction exceeds the specified response/throughput time
� Transaction violates SLAs
� Transaction breaches rules (e.g., dual control, approval procedure, etc.)
� Team is currently overloaded due to high volume of work
Acting as a monitoring system for business processes, ARIS PEM reports this data to the employees and managers
responsible.
Link to multiple data sources
To extract process relevant events from operational IT applications, numerous extractors are available that
allow efficient access to a wide range of systems (operating systems, database systems, applications).
Integrated correlation engine to identify critical situations
The integrated correlation engine is able to identify critical situations from the constant flow of events, such
as SLA violations and rule infringements. Through the correlation of input data (including data from different
sources), new events can be generated and users informed promptly of any problems via a dashboard, e-mail,
or SMS, or automatic responses can be triggered. ARIS Process Event Monitor does this using Systar technology,
which was rated best provider by a leading IT analyst in the most recent market survey of Business
Activity Monitoring.
11

White Paper
Interactive dashboards with alert function
Highly intuitive dashboards provide a large number of users with KPIs and timely information on the current
status and alert them in the event of escalation. Dashboard content is configured to customer requirements.
The following views ship as standard:
� Processes (status of transactions and activities)
� Organization (status of participating teams)
� Exceptions (current problems and rule infringements)
� Track & trace (interactive search for individual transactions)
12
Figure 9: Example of an interactive real-time dashboard
Seamless integration into ARIS Platform
ARIS PEM is seamlessly integrated into ARIS Platform, enabling users to graphically model processes, KPIs,
and dashboards in ARIS Business Architect and transfer them to ARIS PEM with a single mouse click. ARIS
Process Performance Manager (ARIS PPM) also serves as a “memory” and is used for detailed analysis of
process data/structures and identification of optimization potential.

Implementing Process Intelligence Solutions
What is Process Intelligence
In order to quickly and efficiently adapt their process structures to changes, businesses need to become more
flexible by aligning their organization with business processes, thus establishing a system of continuous
process optimization. This process-oriented approach integrates all levels of business management, from
long-term strategic objectives, tactical tracking, and structural analysis of business processes to operational,
everyday real-time processes. ARIS products enable combined analysis of quantitative and qualitative results
plus continuous improvement of target processes within the enterprise based on as-is processes.
ARIS Value Engineering (AVE) is a procedure model that was developed to introduce and leverage these solutions
(see figure 10). This model offers a consistent workflow plan for implementing an automated solution that
measures, analyzes, and optimizes business processes. The work packages that make up the roadmap enable
the introduction of a scalable solution. In the strategy phase, operational KPIs are derived from the strategic
objectives and assigned to the various states of the end-to-end processes. Detail is added to the process-oriented
BI solution in the design phase before it is implemented and integrated into the existing IT environment.
The solution is then rolled out in the controlling phase to enable effective process improvements based on the
measurement results.
Figure 10: ARIS Value Engineering for implementing Process Intelligence solutions
13

White Paper
Strategy phase
This phase begins with defining strategic objectives, deriving measurable KPIs, and selecting end-to-end
processes. These requirements are linked and stored in the central ARIS repository, enabling process-oriented
requirements analysis to ensure that process knowledge can be reused within the organization.
� Direct assignment of corporate objectives to measurable KPIs
� Level of process orientation within the enterprise is taken into account
� Scalable solution via flexible adaptation of work packages
� Consistent requirements in the central ARIS repository
� Results can be reused for subsequent BPM projects
Design phase
The focus of this phase is on preparing to implement the solution. The process flow to be measured is divided
into sections, which correspond to specific states of the runtime data of the associated IT systems. The customer-required
analyses, report templates, and dashboards are also defined here.
� States in the process flow can be measured using IT runtime data
� Detailed planning of process-oriented BI solution
� Preparation for technical implementation
Implementation phase
The output of this phase is a validated, integrated solution that will be developed in iterative steps into a comprehensive
measurement and analysis tool. Role-based user training is then provided prior to rolling out the
solution. When the solution is operational, data is automatically collected by continuous logging and measuring
of actual processes. This results in a complete knowledge base that delivers up-to-the-minute data on the
current efficiency and quality of business processes.
� Technical implementation
� Iteration cycle between test and validation
� Integration of solution into the IT environment
� Role-based user training
� Solution roll-out
Controlling phase
Users evaluate their degree of goal achievement by way of intuitive dashboards and automatic reports, making
it possible to quickly identify weaknesses in the recorded process flows and implement improvements.
Process Intelligence facilitates understanding of the actual workflows step-by-step in graphical process models,
which in turn makes it easier to identify best practices.
� Automatic measurement of process efficiency via KPIs
� Structures of real-world processes rendered transparent
� Identification of weaknesses in the process flow
� Benchmarking of best and worst practices
� Planning of improvements
14

Usage Scenarios
Order processing (order-to-cash)
What is Process Intelligence
Optimizing order processing involves business processes with multiple interfaces to partners, customers, and
logistics service providers. Due to the high number of interfaces, these processes are particularly error-prone:
Experts estimate that at least 10 percent of all such processes are inefficient, with examples including timeconsuming
credit checks that delay or prevent completion of the transaction. Although cost reduction is a
strategic goal for many organizations, the work involved in resolving process problems actually increases
costs. Managers are thus faced with the dilemma of reducing costs while at the same time deploying additional
staff to ensure smooth execution of sales and logistics processes.
Process Intelligence reveals opportunities for savings by creating a transparent view of the entire process
flow, including the interfaces (such as EDIFACT). Automatic alerts when errors occur in the process flow save
employees the time-consuming effort of trying to pin down problems. Weaknesses in individual process areas,
such as sales, procurement, inventory, transport, invoicing, and returns/complaints, are highlighted and
improvement potential identified. KPIs for sales, quality, time, profit margin, service levels, and the associated
causes of errors ensure that a high level of process quality is maintained at all times.
Figure 11: ARIS Performance Dashboard
15

White Paper
IT service management / incident management
IT service management focuses on process quality, as measured by service level agreements (SLAs). Although
SLAs tend to be highly customer-specific, they are also very time-critical, particularly where incident management
is concerned. If a live system fails, a response is often required within minutes.
To avoid penalties, businesses in this sector have to constantly monitor critical queries and manage problem
scenarios, such as an unexpectedly high volume of such calls. Timely, automatic analysis and execution of
ticket-handling processes is therefore essential. Figure 12 shows an example of a real-time dashboard that
brings together key information:
� “Current tasks” warns of risks in current live processes, which require an immediate response.
� “Current status” provides an overview of process execution and highlights unexpected behavior (such
as an unexpectedly high volume of queries).
The lower half of the dashboard provides various types of analysis to identify systematic weaknesses in the
process and leverage optimization potential.
Figure 12: Example of a real-time dashboard for incident management
Real-time process monitoring in transaction banking
Transaction banks execute large numbers of extremely fast processes. Processing delays represent a significant
financial risk and can damage their corporate image. Moreover, transactions are subject to stringent regulatory
requirements. Manual tracking of enterprise-wide processes is difficult to implement at the transaction
level, but short response times are vital in order to resolve bottlenecks and problems with minimum delay.
At the business process level, real-time, event-driven process monitoring offers a reliable way of automatically
monitoring the status of all current transactions. ARIS PEM performs this task by way of fully automated,
rule-based correlation filters that respond to specific patterns in the event streams of the IT systems with an
immediate warning. These exceptions are reported immediately to the process manager, who can quickly take
the necessary corrective action before a bottleneck causes problems.
This automated process monitoring minimizes the risk of payment system failures and increases process efficiency,
because every transaction that deviates from the norm is identified. ARIS PEM is thus a permanent,
real-time early warning system that ensures that all live business processes are transparent and of a consistently
high quality.
16

Sales management (lead-to-order)
What is Process Intelligence
The sales manager’s main task is to efficiently manage the process from lead generation through to closing the
deal. In this context, the ARIS controlling/monitoring solutions are used to support an organization’s paradigm
change toward process-oriented selling. The main lever available to a sales manager seeking to achieve continuous
process improvement is automatic transparency of the current status. No additional effort is required
by sales staff because the necessary data can normally be extracted directly from the company’s CRM system.
Along with KPI calculation for the whole process or for subprocesses, process-oriented analysis of quotation
processing offers an early warning system for problems and supports internal auditing/customer auditing functionality.
Integration between the operational and strategic levels is particularly effective, i.e., linking the lead management,
opportunity management, contract conclusion, invoicing, and commission subprocesses to enable simple
drilldown of aggregated views to the individual quotation process. Typical KPIs that can be analyzed here
according to user-defined dimensions (e.g., industry, region, time, and sales type) include pipeline value, forecast
value, incoming order value, lead-to-opportunity time, opportunity-to-order time, conversion rate, and
forecast accuracy (see figure 13).
Figure 13: Example of a sales dashboard (lead-to-order)
17

White Paper
Process Intelligence in the insurance sector
By continuously measuring and analyzing the efficiency of their core processes, such as application management
and claims handling, insurers can achieve huge competitive advantages. Instead of analyzing business
processes selectively or at the theoretical level, ARIS PPM automatically evaluates real transactions in the
underlying IT systems – from insurance application to signed contract, across the entire organization. This creates
transparency along the value chain and often uncovers hidden potential for efficiency savings.
Successful insurers automatically measure and evaluate their actual business processes using operational
KPIs, such as throughput times from new application to issuing the policy or the process costs of transactions
involving manual intervention.
Process Intelligence also reveals the underlying processes executed for every KPI, giving process managers
an insight into the conditions that give rise to repeated problems at specific stages of processing.
ARIS PPM provides the necessary flexibility for users to understand the transactions and individual steps of
the automatically generated process structures via graphical process models. It also supports aggregation of
mass processes into a single sample process. A complete picture of the entire process is retained from beginning
to end and the causes of any material process problems are identified in the context of all participants.
The measurement and analysis results at the process level are also available for internal benchmarking purposes,
such as comparing how individual teams reap the efficiency benefits of process flow modifications.
ARIS PPM delivers hard facts that force line managers to demonstrate their contribution to business success.
At the same time, everyone involved in the process can access a constantly up-to-date knowledge base in
order to eliminate recurring process weaknesses within their department before they impact negatively on the
company’s bottom line.
Successful insurers deploy Process Intelligence to slash wait times for new customers, boost the quota of
instant decisions, and improve the level of automation thanks to fewer customer queries, thereby freeing up
resources.
18
Figure 14: ARIS Performance Dashboard

Order processing in logistics
What is Process Intelligence
Faced with ever-changing market conditions and business relationships, organizations are under constant
pressure to upgrade their logistics processes. Logistics innovations are being driven in particular by international
competition in the transport sector. As logistics requirements become increasingly complex and global,
it is vital that organizations remain flexible – which means ensuring transparent goods movements and efficient
utilization of transport capacity. There are also specific customer requirements to fulfill, such as providing
presentation services.
Handling orders that span multiple transport areas is a core process in this sector.
ARIS Process Intelligence & Performance Management enables integrated, cross-system process analysis
throughout the logistics chain, from order entry to goods movements and invoicing.
By integrating and optimizing important quality-related supply chain KPIs (e.g., number of order changes, pickup
compliance, etc.), cost (e.g., cost per order, cost per shipment), and time (e.g., time required for order entry,
elapsed time between loading and departure of truck, etc.), companies can achieve long-term flexibility and a
competitive edge.
Introducing transparent process analysis in the context of order processing also yields a host of other benefits:
� Managing the supply chain for major customers using defined KPIs and SLAs
� SLA monitoring and benchmarking against transport companies/customers
� Proactive, timely control via introduction of an early warning system to monitor KPIs
� Improvement of customer service and quality through special automated reports on elapsed times, quantities,
SLA compliance, etc.
� Identification of optimization potential within the transport chain
19

© Copyright (C) IDS Scheer AG, 2001 – 2008. All rights reserved. The contents of this document is subject to copyright law. Changes, abridgments, extensions and supplements
require the prior written consent from IDS Scheer AG, Saarbrücken, Germany. Reproduction is only permitted provided that this copyright notice is retained
on the reproduced document. Each publication or translation requires the prior written consent from IDS Scheer AG, Saarbrücken, Germany. “ARIS”, “IDS”,
“ProcessWorld”, “PPM”, ARIS with Platform symbol and Y symbol are trademarks or registered trademarks of IDS Scheer AG in Germany and in many countries all
over the world. “SAP NetWeaver” is a trademark of SAP AG, Walldorf. All other trademarks are the property of their respective owners. U.S. pat. D561,778, pat.
D561,777, pat. D547,322, pat. D547,323, pat. D547,324
ID-Number: WP-PI-0109-E
IDS Scheer AG
Headquarters
Altenkesseler Str. 17
66115 Saarbruecken
Phone: 49 681 210-0
Fax: 49 681 210-1000
E-mail: info@ids-scheer.com
www.ids-scheer.com