{"id":5478,"date":"2022-01-22T16:23:07","date_gmt":"2022-01-22T16:23:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/22\/process-mining-the-key-to-successful-m-and-a\/"},"modified":"2022-01-22T16:23:07","modified_gmt":"2022-01-22T16:23:07","slug":"process-mining-the-key-to-successful-m-and-a","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/22\/process-mining-the-key-to-successful-m-and-a\/","title":{"rendered":"Process Mining: The Key to Successful M and A"},"content":{"rendered":"

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This past year, many businesses completed mergers and acquisitions (M&A). In fact, between May and August, there were nearly 30 mega M&As \u2013 Microsoft acquired Nuance Communications, Apollo Funds acquired Verizon Media, Amazon acquired MGM, Celonis acquired Integromat, and many more.<\/p>\n

Globally, M&A volumes have surpassed $4.3 trillion this year so far, for several reasons: larger businesses tend to acquire smaller competitors that aren\u2019t performing well during challenging times, companies want to expand or augment their current product portfolio, or a company may want to enter new markets.<\/p>\n

Process Mining: The Key to Successful M&A<\/h2>\n

No matter the reason, M&As are a complex project for everyone involved: lawyers, HR, accounting, IT services, employees, and many other stakeholders.<\/p>\n

But the most difficult thing lies with managers; connecting two companies with different cultures and established business processes is not easy.<\/p>\n

Over the past few years, ABBYY has acquired several companies around the world, most recently Timeline PI in the United States and Pericom Singapore in Southeast Asia. Here, we\u2019ll dive into three groups: resources, processes, and people, and discuss how process mining<\/a> can integrate businesses successfully that won\u2019t result in profit losses, process bottlenecks, or employee attrition.<\/p>\n

Resources<\/strong><\/h3>\n

It\u2019s not just legal entities that are acquired when it comes to M&As. Inherited buildings and equipment come into the possession of IT systems, and the parent company will typically audit everything to decide which resources should remain and which are better to offload.<\/p>\n

Evaluation technologies<\/h4>\n

However, when evaluating different technologies and generations of systems, IT leaders need to ensure business continuity<\/a> of end-to-end business processes while integrating processes. And the sooner they start doing so, the better.<\/p>\n

The common way is to meet with stakeholders and manually map out the systems, applications, and known processes. But it\u2019s a time-consuming and costly process that takes months. Another way is to automate the integration with robotic process automation (RPA) software robots. Software robots copy human actions in a computer interface and transfer data from one system to another.<\/p>\n

However, robots work effectively only in well-structured processes, and don\u2019t understand which systems have been optimized for integration. If the company needs the integration to be optimized faster, process mining and discovery tools are the key accelerants.<\/p>\n

Process mining platforms duplicate information about the execution of processes (digital traces) from corporate systems and build a model of the company\u2019s processes, calculate metrics, help find optimization methods, and help with analytics for starting digital integration and transformation. This ultimately helps streamline processes, identify bottlenecks, and improve operational efficiency.<\/p>\n

Enterprise Management System<\/h3>\n

Another use for process mining is as an Enterprise Management System (EMS), which does not require large-scale work related to setting up or writing code. In this case, each of the linked systems loads its audit logs (or the data could come from databases, custom data extracts, etc.) into the analytics platform.<\/p>\n

The platform, based on the actions recorded in them, will register the occurrence of a business event that corresponds to a scenario, a set of conditions, and causes.<\/p>\n

This is what it looks like: Imagine that a chain of events of one end-to-end process goes through two non-integrated systems of different companies, and the onset of a certain business situation requires turning to another system. Process mining provides visibility and alerting across a distributed system, allowing you to quickly establish interaction between the IT landscapes of different companies and ensure business continuity.<\/p>\n

How the Enterprise Management System Works<\/h3>\n

Here\u2019s how it might work at a car dealership that has acquired a carrier company with its own fleet of car carriers. Maybe the dealership is now offering a new service to customers where they can transport cars to any part of the world, but there are several different companies that work together and follow several steps to make this happen. Below are examples of what steps might be taken:<\/p>\n