Tag: process mining

Process Mining Software Market Posts 60-70% YoY Growth in 2020, Will Triple by 2022 | Press Release

September 8, 2021

Exponential growth is expected in process mining market as client base expands across industries, geographies, buyer sizes

Process mining—which is the technique of using software to discover and map business processes in order to optimize and automate them—is an emerging market, growing at around 60-70% between 2019 and 2020 to reach a total market size of $320-$340 million.

Everest Group reports that the client base for process mining is rapidly expanding, driving revenue growth in the market. Even in the pandemic hit year, the client base experienced impressive growth at around 60%. Going forward, Everest Group predicts adoption will accelerate across market segments, buoyed by an increasing awareness of the technology, growing use of process mining as an enabler of digital transformation, and snowballing word of mouth of early adopters’ success stories. Everest Group estimates that the process mining software market will triple between 2020 and 2022.

A Wide Variety of Business Processes/Functions Are Adopting Process Mining
Process mining blends the power of data-based analysis techniques, such as data mining and machine learning, to help organizations discover the as-is process along with its variants and identify opportunities for optimization and automation. Process mining technology can be classified in three categories as follows:
  • Classic process mining leverages specialized algorithms to analyze process-related information captured in event logs generated by enterprise systems such as ERP, CRM, and SCM to discover processes and generate process insights at a macro level.
  • Desktop process mining refers to the ability to capture and analyze keyboard, mouse, and potentially other system-level activities performed across multiple users involved in a process to virtually reconstruct the processes and provide process insights at a micro level.
  • Hybrid process mining refers to the ability to combine information from both event logs and user activities for a holistic view into as-is processes; it is carried out across both macro- and micro-levels.

While the need to optimize operations continues to be the most important factor driving process mining adoption, enhancing customer experience has emerged as the second key adoption driver because of the role process mining plays in mapping customer journeys to identify and address customer pain points.

These findings are discussed in more detail in Everest Group’s recently published report “Enabling Data-based Process DNA Analysis: Process Mining State of the Market Report 2021.” The report includes a detailed view of the current state of the market and analyzes it across various dimensions, including market size and adoption trends, buyer satisfaction, product capabilities and trends, solution characteristics, vendor landscape, challenges to process mining adoption, and the outlook for 2021-22.

Market Highlights:

  • Currently 86% of the revenue generated in the process mining market comes from software licenses, with most vendors offering cloud-based access.
  • Continental Europe holds the lion’s share of the market (48%) while North America accounted for the highest growth rate (90-95%).
  • Manufacturing; banking, financial services, and insurance (BFSI); and the healthcare industries are among the leading adopters of process mining solutions, accounting for more than 50% of the market share.
  • Celonis, Minit, Software AG and UiPath are the top providers in terms of process mining software revenue.

***Download a complimentary abstract of the report***

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

Appian’s Acquisition of Lana Labs: Yet Another Testimony to the Potential of Process Mining | Blog

August 9, 2021

Appian’s recent announcement of its acquisition of leading process mining company Lana Labs strongly demonstrates the huge potential and growing acquisition trend in this market. Read on to learn why you should pay attention to this promising intelligent automation space.

As a reader of this blog, you are likely cognizant of the growing need among enterprises to scale digital transformation and automation initiatives as they face unprecedented pressure to reduce costs, optimize operations, and increase business resilience. Enterprises have been continuously increasing their focus on automating more complex, end-to-end processes, which, in turn, is driving increased demand for holistic intelligent automation solutions that combine various digital levers such as robotic process automation (RPA), intelligent document processing (IDP), conversational artificial intelligence (AI), process mining, and process orchestration.

Process mining is becoming integral to the intelligent automation solution ecosystem, given the critical role it plays in accelerating digital transformation and enabling continuous process optimization. Process mining has been one of the fastest-growing markets in the intelligent automation space over the past few years, making it an interesting space for potential acquisitions for a while now.

We discussed several acquisitions in the RPA market in one of our previously published blogs, “Is It Open Season for RPA Acquisitions?” where we also predicted this trend’s expansion to other areas, which is now being seen in process mining.

2021 certainly seems to have opened the flood gates for process mining, with three major acquisitions taking place in quick succession over the past few months. Following the acquisition of Signavio by SAP, and myInvenio by IBM, Appian has announced the acquisition of Lana Labs for an undisclosed amount.

What’s in it for Appian?

In the ongoing quest to achieve digital transformation, enterprises are increasingly using process mining to discover, monitor, and optimize processes in a data-driven, faster, cost-efficient, and scalable way. Process mining solutions have a wide range of applications that go far beyond just process discovery to generate fact-based insights and enable enterprises to act on these insights for transforming processes.

The proposition that process mining offers seems to plug in the key missing capability piece in Appian’s offering. Appian has a vision to provide an integrated low-code intelligent automation platform that combines various digital levers, including RPA, process orchestration, IDP, case management, application programming interface (API) integration, and AI, to transform enterprise operations. In 2020, Appian acquired Novayre Solutions SL, maker of the Jidoka RPA product, to augment its platform capabilities. It also recently added IDP capability to its platform.

Lana Labs’ acquisition is a key step by Appian to become the one-stop-shop by providing process mining capabilities that are firmly integrated into its automation platform. It will help Appian reduce its reliance on third-party process mining vendors for gaining process insights that can be used to deploy critical applications with the Appian platform. It also aligns very well with Appian’s mission to drive continuous and actionable process optimization with humans, systems, and data unified in the same workflow.

Why Lana Labs?

Founded in 2016, Lana Labs is a Berlin-based process mining software provider focused on enabling organizations to become smart and more efficient by automatically analyzing and optimizing complex business and production processes. Its process mining software leverages a proprietary ML algorithm to determine root causes of unwanted process deviations to automatically detect optimization opportunities in business processes. The platform is developed on microservices architecture and supports containerized deployments, which enhances scalability and aligns well with Appian’s platform architecture.

Lana Labs was identified as a major contender in Everest Group’s 2021 Process Mining PEAK Matrix® and brings a host of capability modules to enhance the value proposition of Appian’s automation platform, including:

  • Process discovery – To automatically generate process maps, detect process loops along with rework rate, discover organization-level relationships, create BPMN 2.0 compliant process models, and perform multi-level process mining
  • Conformance checking – To compare discovered as-is process model with a target reference model, perform gap analysis and ML-based automated root-cause analysis, and check compliance rules such as segregation of duties
  • Process monitoring and reporting – To create customizable dashboards, define custom KPIs/metrics, and monitor processes against pre-defined KPIs
  • Process enhancement – To predict any expected KPI breaches by leveraging deep learning and neural networks, proactively trigger alerts/notifications to users regarding those breaches, and identify/prioritize automation opportunities

The market outlook

Process mining technology will reach a much broader audience after its integration into the platforms offered by providers such as Appian, resulting in improved awareness and adoption.

Appian has strategic go-to-market partnerships and technology alliances with other process mining vendors, and these partnerships are expected to continue, giving clients the flexibility to choose as co-opetition is becoming quite common in the enterprise software space.

With this move, Appian has no doubt strengthened its position in the automation vendor landscape. While it could take some time to embed Lana Labs’ offerings at a technical level within Appian’s suite, it will be interesting to see how well Appian can leverage this investment.

The acquisition will also nudge other technology vendors to demonstrate their ability to think ahead and make more investments to strengthen their automation suite. This latest deal may push other process orchestration and RPA players to acquire companies that provide process mining or other complementary technologies such as API-based automation, conversational AI, and IDP to provide a more comprehensive solution to their clients. The deal also could trigger other big enterprise tech vendors like Microsoft, Oracle, ServiceNow, and Salesforce to make similar moves to enter the process mining market.

Process mining offers great potential for enterprises, and this is just the beginning of this market entering a disruptive phase, garnering attention from all parts of the world. And we have no doubt there is more to come.

To discuss your process mining journey, please reach out to us at [email protected], [email protected], and [email protected].

IBM to Acquire myInvenio: Completing the Intelligent Automation Puzzle with Process Mining | Blog

April 23, 2021

The intelligent automation space has been witnessing a slew of acquisitions over the past couple of years. Several big tech providers have entered the market through numerous acquisitions, especially in the robotic process automation (RPA) space.

While the trend continues in RPA, with ServiceNow’s acquisition of India-based RPA vendor, Intellibot as the latest addition, 2021 seems to be a year of increasing M&A activity in the process mining space. After the acquisition of Signavio by SAP earlier this year, IBM’s acquisition of myInvenio is the second M&A deal happening in the process mining market within a short span of three months.

In one of our previously published blogs, Is It Open Season for RPA Acquisitions?, we highlighted larger technology players entering the intelligent automation market and discussed why more acquisitions might follow as these players seek to build more holistic business transformation solutions.

IBM entered the intelligent automation space with its platform, IBM Cloud Pak for Automation, in 2018 to help enterprises scale up their digital transformation initiatives. Two years later, IBM acquired WDG Automation, a Brazilian RPA vendor, to augment its platform capabilities.

Now, IBM is looking to further expand its automation portfolio with its latest acquisition of myInvenio, an Italy-based process mining technology vendor. The acquisition for an undisclosed price is expected to be completed in the third quarter of 2021.

Why the acquisition is not a big surprise

IBM provides IT and business process automation services to enterprises through its automation suite, which includes RPA, Intelligent Document Processing (IDP), Intelligent Virtual Agents (IVA), and process orchestration capabilities. Looking at IBM’s offerings within the intelligent automation technology ecosystem, process mining emerges as the key missing element in its automation suite.

The COVID-19 crisis highlighted the importance of digital transformation and the need to accelerate automation journeys for enterprises. The lack of a healthy automation pipeline and the inability to identify the right level of optimization opportunities emerged as key barriers for enterprises to scale automation initiatives. This has led to an increased focus on better understanding business processes and optimizing them to improve value realization from automation initiatives.

Process mining emerged as a critical technology providing the ability to discover as-is processes and identify/prioritize automation opportunities. Lately, the intelligent automation space also witnessed increased consolidation and entry of other bigger players in the market such as Microsoft, SAP, ServiceNow, etc., resulting in increased competitiveness for IBM.

To cater to the market demand and better compete in the automation space, IBM partnered with myInvenio in November 2020 to help its customers gain visibility into business processes and identify automation opportunities. Through this partnership, IBM sought to deliver a single solution to its clients for streamlining and automating business processes.

IBM has a very strong focus on enabling a unified experience to its clients through a one-stop-shop automation suite. In line with this vision, this acquisition would help IBM provide process mining capabilities that are tightly integrated into its automation platform. Also, this union would provide a holistic solution to IBM’s clients where they could access various technologies that constitute the intelligent automation ecosystem. It also boosts their AI and hybrid cloud strategy to provide enterprises with the necessary AI-enabled automation capabilities.

Why myInvenio?

Founded in 2013 and headquartered in Reggio Emilia, Italy, myInvenio has a vision to support enterprises in their digital transformation journey by helping them create a digital twin of their organization. Over the last eight years, it has acquired clients globally spanning the European, North American, APAC, and UK regions and serves enterprises across key verticals such as banking, financial services and insurance (BFSI), manufacturing, and healthcare and pharmaceutical.

Through its process mining solution, myInvenio focuses on enabling data-driven process discovery, analysis, and continuous monitoring to identify process improvement and transformation opportunities.

myInvenio was identified as a major contender in Everest Group’s 2020 Process Mining PEAK Matrix® and brings a host of capability modules to enhance the value proposition of IBM’s automation suite. These include:

  • myInvenio Process Analyst
    • Process discovery – to automatically generate process maps, perform multi-level process mining, and create BPMN 2.0 compliant process models
    • Conformance checking – to compare discovered as-is process model with a target reference model, perform root-cause analysis, and check compliance rules such as segregation of duties
  • myInvenio Process Insights
    • Process monitoring and reporting – to derive process insights through continuous monitoring, create customizable dashboards, and define custom KPIs/metrics
    • Process enhancement – to identify processes/tasks for automation, predict and highlight any expected KPI breach, and perform simulations/what-if analysis
  • myInvenio Desktop Process Mining (DPM)/Task mining capability – to capture users’ interactions across multiple desktops and map the recorded tasks to respective processes using Artificial Intelligence/Machine Learning algorithms for discovering end-to-end processes
  • myInvenio Process Store – to provide out-of-the-box pre-built templates for processes spanning across industries such as banking, manufacturing, and energy and utilities

What are the implications going forward?

Impact on process mining vendor landscape and partnerships

IBM has strategic go-to-market partnerships and technology alliances with other process mining vendors. Earlier this month, Celonis, IBM, and Red Hat announced a strategic partnership to help enterprises accelerate their digital transformation by combining Celonis Execution Management System (EMS) with Red Hat OpenShift’s hybrid cloud approach and IBM Global Business Services’ expertise.

Partnerships like these are expected to continue, giving clients the flexibility to choose as co-opetition is becoming quite common in the enterprise software space. For example, IBM maintained its partnerships with RPA vendors such as Automation Anywhere and UiPath after the WDG automation acquisition.

The IBM acquisition of myInvenio could put pressure on other process mining vendors since many do not have a global reach and would need to expand their service provider partnership ecosystem. This latest deal could also encourage the acquisition of process mining capabilities by other tech giants, Business Process Management (BPM), and Enterprise Resource Planning (ERP) companies in the coming months to offer a more holistic solution to their clients.

Increased adoption of process mining

Process mining technology would reach a much broader audience after its integration into the platforms offered by these service providers, resulting in improved awareness and adoption. IBM offers its automation products to enterprises across different sectors such BFSI, healthcare, and manufacturing.

IBM started delivering process mining services to its customers in November 2020 by leveraging its OEM partnership with myInvenio. Augmenting its prior implementation experience with in-house technology capabilities, IBM can now provide process mining capabilities that are tightly integrated with its automation suite. It is expected that IBM would offer process mining on a standalone basis as well as part of its Cloud Pak for Automation platform.

Impact on service providers

This acquisition will nudge other service providers to demonstrate their ability to think ahead and make more investments to strengthen their automation suite. Last week, Celonis announced its execution management without limits program that gives service providers access to its process mining solution with unlimited users and processes but charges them based on the volume of data being analyzed. While Celonis offering its EMS to consultants could be a win-win situation for both Celonis and service providers, some large service suppliers still might look to acquire process mining capabilities to strengthen their in-house technology portfolio. Also, having this capability in-house would give service providers more negotiating power and reduce the reliance on third-party vendors for capabilities that can be critical for their business going forward. The acquisition route can provide them the ability to deliver innovation faster in their focus industries and functions.

The takeaway: the acquisition could fuel more activity 

Since IBM has been faster in integrating acquired capabilities into its suite because of its cloud-based platform approach and containerized product architecture, it is expected to take less time to embed myInvenio’s process mining offering at a technical level within IBM’s automation suite.

With process mining emerging as a critical component of the automation ecosystem, the process mining market is entering a disruptive phase, garnering attention from all parts of the world. This acquisition could also trigger other big enterprise tech vendors like Microsoft, Oracle, ServiceNow, and Salesforce to make similar moves to enter the process mining market.

SAP to Acquire Signavio: A Billion Reasons to Take Process Mining Seriously | Blog

February 2, 2021

Numerous acquisitions have taken place in the RPA space over the past couple of years. As we looked at these acquisitions closely in our blog “Is It Open Season for RPA Acquisitions?,” one of the key trends we highlighted was the entry of big enterprise tech product vendors like Microsoft and SAP in the RPA space, and why more acquisitions might follow in the broader intelligent automation space as they seek to build more holistic business transformation solutions.

After augmenting its technology portfolio with RPA through its 2018 Contextor acquisition, SAP is now looking to strengthen its standing in the broader intelligent automation space with its acquisition of Signavio, a company that offers process mining, process modeling, and process orchestration products, among others. While the deal price was not officially disclosed, it is rumored to be around a whopping US$1.2 billion.

This is certainly a strategic move by SAP to acquire a process mining capability that offers huge potential to help enterprises accelerate their process improvement and intelligent automation initiatives. The size of the acquisition further validates the process mining market, which is relatively nascent but continues to grow exponentially. Please see our report titled “Process Mining State of the Market Report 2020” for more details on the process mining market.

Why the acquisition?

SAP has significant penetration in the enterprise software space and possesses a huge volume of rich process data generated by its ERP systems. While SAP has the data, which is indeed the new oil to drive transformation, it lacked the capability to effectively utilize it to deliver process intelligence and actionable insights.

The COVID-19 pandemic has amplified the importance of building resilience and agility into business processes and driven organizations to accelerate their digital transformation journeys. In a quest to provide its customers visibility into their business processes and help them better adapt to changing market dynamics, SAP recently launched a dedicated business process intelligence unit; Signavio’s process mining capability will plug key missing pieces into its portfolio. The acquisition will help strengthen SAP’s value proposition for enabling enterprises to understand, improve, and transform their business processes faster and at scale.

It will also help SAP reduce its reliance on third-party process mining vendors in overcoming key challenges, like lack of process documentation and visibility into the as-is process state, in driving S/4HANA migration for its customers.

What does Signavio bring to SAP?

Signavio was founded in 2009 to address the need for a collaborative approach to process management through its web-based process orchestration solution. Over the years, it launched other products such as process mining. Signavio brings a host of capabilities for SAP to augment its intelligent automation value proposition:

  • Process intelligence and management
    • Signavio Process Intelligence, the company’s process mining solution, delivers a fact-based approach to discover, monitor, and improve as-is processes. It comes with embedded ETL capability and a cloud-based analytics engine
    • Signavio Process Manager, its process modeling product, designs and documents the future state of processes
    • Signavio Workflow Accelerator, the company’s process orchestration product, triggers workflows/actions based on the derived insights
  • Pre-built connectors and packaged solutions
    • Packaged solutions for ERP transformation and S/4HANA migration
    • Process-specific solutions like O2C and P2P optimization help accelerate time-to-value realization
    • Pre-built connectors for mining Salesforce-based processes
  • Cloud value proposition – Signavio’s cloud-based offerings align directionally with SAP’s strategic agenda of driving the shift to the cloud and its vision for its business process intelligence capability

What the acquisition means for the market and other process mining vendors

  • Democratization of process intelligence – Considering SAP’s deep penetration in the enterprise application landscape around the world, it is one of the key data sources for process mining solutions. With this acquisition, SAP will deliver process mining capabilities that are tightly integrated with its suite of enterprise applications. Bundling it as part of its RISE with SAP package will result in improved awareness and adoption of process intelligence/process mining, which otherwise is a relatively less mature market in terms of commercial adoption. It will also put downward pricing pressure on other process mining vendors, making it more affordable
  • Impact on process mining vendor landscape and partnerships – Several process mining vendors, including Celonis, have strategic go-to-market partnerships and technology integrations with SAP. This helps them identify prospective clients and offer pre-built templates and packaged solutions to their clients to ease adoption. It’s likely that these partnerships will continue, and clients will be given the flexibility to choose, as co-opetition is becoming quite common in the enterprise software space. For example, SAP maintained its partnerships with RPA vendors after the Contextor acquisition. SAP’s business process intelligence could have a stronger value proposition for processes based solely on SAP. However, for processes involving multiple ERP systems, including SAP, third-party process mining vendors will likely have an advantage as they do not compete directly with big tech players and so can invest in solutions across different ERP/CRM systems.

While it could take some time to embed Signavio’s offerings at a technical level within SAP’s Business Process Intelligence suite, it will be interesting to see how well SAP is able to leverage this investment. Making focused efforts to ensure that Signavio, which is a much smaller company than SAP, does not drown in the vast SAP ocean will be critical to achieving the desired success.

This acquisition could also trigger other big enterprise tech vendors like Microsoft, Oracle, and Salesforce to make similar moves, especially with increasing enterprise focus on improving the customer experience and the role of process mining in discovering customer journeys, identifying pain points, and finding ways to address these.

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