Together with our consulting partners such as KPMG, Baker Tilly or the DMS Group, we at LANA help various players in the energy sector to improve, analyse and visualise their processes. (Here you can find a webinar on the topic of M2C processes with our partner KPMG.) In the process, we not only solve many challenges for our clients, but also come across just as many good reasons for process mining in the energy sector. That is why we have compiled the 5 best reasons here.
1. Cost Reduction
Cost-to-serve (CTS) plays a key role for energy utilities. This is the cost that a utility has to incur in order to supply its customers. These include billing costs, customer service, energy data management and organisational overheads. There is a very wide range of these costs in the energy market and most companies are striving to sustainably reduce their costs here, without at the expense of the customers. How to do this efficiently leads us directly to point 2.
2. Higher Degree of Automation
The automation of manual process steps is not only an important topic for energy supply companies. Through the transparency created with the help of process mining, one can easily determine which sections of an overall process or process steps are fit for automation. Likewise, one can keep an eye on the degree of automation of the process. Change activities can be reduced because the causes of these activities become transparent; one can optimise working capital by better evaluating receivables processes and adjusting payment targets and payment terms accordingly; and finally, one can reduce the complexity of the process and increase the degree of standardisation by reducing the number of process variants. This creates the conditions for increased automation of the processes.
3 Higher Compliance
Through the automatic target-performance comparison, one not only has the possibility to identify process deviations and optimisation potentials described above, but also to detect compliance violations and to take action against them through targeted employee training.
4 Lead Time Reduction
Reducing the cycle time of a process while maintaining the highest standards increases customer satisfaction and optimises cash flow. With the help of process mining, the causes of long idle times, process loops and bottlenecks can be identified very efficiently and thus action instructions for their elimination can be derived.
Last but not least, creating transparency is one of the core tasks of the process mining tool. Performance measurements in companies are often still carried out in a very conventional way. This requires a comparatively large amount of resources and expensive consultant days. With the help of process mining, important process key figures, e.g. cancellation activities, can be analysed and their causes determined with a root cause analysis – an efficient means of reducing the cancellation rate in a targeted manner with the right action instructions derived from it. The analysis of meter reading documents provides indications of where manual rework occurs, which in turn increases the throughput times of the process. A very important point for increasing customer satisfaction is an unproblematic transmission of meter readings with as little customer contact as possible. If, for example, clarifications have to be carried out, resulting in additional contact points for the customer, this has a major impact on customer satisfaction. Such clarifications have a similar effect in other billing processes – such as receivables management, purchase-to-pay (P2P) or order-to-cash (O2C) processes. As already described here several times, there is also great optimisation potential in these processes with regard to invoicing, cash discounts or verifications, which energy companies can identify and use for themselves.
If you want to learn more about how we analyse and help optimise processes in the energy sector, you can now download our “Use Case Accounts Receivable” (only in German)!