What is process mining?

Process mining is a technique that analyzes data from event logs to help organizations discover, monitor, and improve their business processes. It sits at the intersection of data science and process management. By using specialized algorithms, process mining reads the digital footprints left behind in systems like enterprise resource planning (ERP) or customer relationship management (CRM) tools. It takes this raw data and turns it into a visual map of your business processes.

When developers or business leaders look at these maps, they can see exactly what is happening in real time. It moves beyond guessing or assuming how a process works. Instead, it provides a factual, data-driven picture. This helps organizations to identify bottlenecks, spot inefficiencies, and find opportunities to make operations run smoother.

How process mining works: From event logs to insights

Process mining technology works by extracting knowledge from the data that already exists within your corporate information systems. It follows a specific workflow to turn scattered data into actionable insights.

  • Ingestion: The first step involves collecting "Event Logs." Every time a user interacts with a software system, it creates a record. This record typically includes a Case ID (a specific instance of a process, like order #123), a timestamp (when it happened), and an activity (what happened, like "order approved"). Process mining tools ingest this data to form the foundation of the analysis.
  • Discovery: Once the data is ingested, algorithms such as the alpha algorithm or inductive miner reconstruct the process flow. They look at the sequence of activities for every single case, and software like Looker then automatically draws a process map. This map visualizes the paths that different cases take, showing the most common routes and the outliers without any human bias.
  • Analysis: Finally, teams use the software to analyze the results. They look for the "Happy Path," which is the ideal, most efficient route a process should take. They then compare this against deviations, loops, or delays, which helps identify where work gets stuck or where teams are doing extra, unnecessary steps.

Types of process mining

There are three main process mining techniques that organizations use depending on their goals. Each type serves a different purpose in understanding and improving workflows.

Discovery is often the starting point. In this technique, you build a model from scratch using only the event log data. You don’t start with a hypothesis or a pre-existing model of how the process should work, as the algorithms simply look at the data and produce a model that reflects reality. This can be useful when you want to see what is actually happening without any preconceptions.

Conformance checking is about comparing reality to a standard. Here, you take the real-world data and compare it against a pre-defined "ideal" model or a set of rules. The goal is to find violations. For example, if a purchase order must be approved before an invoice is paid, conformance checking will flag every instance where payment happened first. It helps ensure teams follow the rules.

Enhancement involves using data to improve or extend an existing process model. It is not just about finding errors but about adding value. For instance, you might take an existing process map and overlay timestamp data to see exactly where delays happen. This helps you to repair the model or adjust the process to better fit the reality of the business environment.

Process mining versus data mining versus process modeling

It can be easy to confuse these terms, but they refer to different disciplines. While they all deal with data and business analysis, they approach the problem from different angles.

  • Process modeling is traditionally a manual task. It relies on business analysts conducting interviews, holding workshops, and using sticky notes to draw out how a process is supposed to work. It’s subjective and represents the "should be" state.
  • Data mining is a very broad field. It looks for patterns in any kind of dataset, not just process data. It can help answer questions like "Which customers are likely to churn?" rather than "Why is shipping taking so long?"
  • Process mining specifically focuses on process-centric data to visualize sequences and flows.

Feature

Process modeling

Data mining

Process mining

Primary source

Human interviews, workshops

Large datasets

Event logs (system data)

Focus

How a process should work

Patterns and correlations

How a process actually works

Objectivity

Subjective (Opinion-based)

Objective (Fact-based)

Objective

Outcome

Static diagrams

Predictive models/Clusters

Dynamic process maps

Feature

Process modeling

Data mining

Process mining

Primary source

Human interviews, workshops

Large datasets

Event logs (system data)

Focus

How a process should work

Patterns and correlations

How a process actually works

Objectivity

Subjective (Opinion-based)

Objective (Fact-based)

Objective

Outcome

Static diagrams

Predictive models/Clusters

Dynamic process maps

Use cases by industry for process mining

Process mining applications span across various industries. Any department that relies on structured workflows can use these techniques to improve performance.

Finance departments are often the first adopters of process mining. They can use it to streamline accounts payable and receivable, like using it to help reduce cycle times for invoice processing. It helps in stopping duplicate payments and preventing unapproved vendors, often called "Maverick Buying." By seeing the exact flow of an invoice, finance teams can ensure they take advantage of early payment discounts and avoid late fees.

For companies that deal with physical goods, process mining can help manage supply chain complexities, such as optimizing production lines by identifying which stations cause delays.

In logistics, it helps in visualizing the exact movement of goods through the supply chain, from the warehouse to the customer. This visibility helps managers predict delays, manage inventory handovers more smoothly, and ensure that production schedules match customer demand.

In the healthcare sector, process mining can be used to improve the patient experience. Hospitals may use it to visualize the "Patient Journey" from admission to discharge. By analyzing the time between different stages—like triage, testing, and treatment—administrators can identify bottlenecks that cause long wait times. This can improve triage efficiency and ensures that resources are allocated where they are needed most to improve patient outcomes.

Telecom companies can use process mining to improve customer service and onboarding. The process of activating a new line or setting up internet service involves many steps and departments. Process mining helps identify friction points where customers drop off. It can reveal why activation tickets get stuck or bounce back and forth between technical and support departments, allowing the company to fix the root cause and improve customer satisfaction.

The role of AI in process mining

Artificial intelligence (AI) is transforming process mining from a diagnostic tool into a predictive one. While traditional process mining analyzes what happened in the past, process mining AI uses machine learning to predict future outcomes. For instance, a model might analyze current open cases and flag a specific order, predicting that "This order will be late" based on patterns seen in historical data. This allows teams to intervene before a problem actually occurs.

Generative AI is also making the technology more accessible. Instead of needing a data scientist to write complex queries, users may be able to query their process data with natural language. A manager could simply ask, "Show me the top 3 bottlenecks in the Berlin plant," and the system would generate the analysis. This democratizes access to insights, allowing non-technical users to make data-driven decisions.

Benefits of process mining for business operations

Implementing process mining can lead to significant improvements in how a company operates. By using data to drive decisions, organizations often see a clear return on investment (ROI).

Transparency

Process mining offers near 100% visibility into operations. Because it looks at every single transaction recorded in the system, nothing is hidden. Leaders can see the reality of their workflows across different departments and locations, removing the "black box" nature of complex operations.

Efficiency

The technology excels at identifying and removing bottlenecks. For example, in a supply chain, it might reveal that orders sit in a "pending" status for three days because of a manual signature requirement. By spotting these delays, companies can streamline steps and get products to customers faster.

Compliance

It helps in detecting non-compliant behavior, such as "Maverick Buying," where employees bypass standard procurement procedures. It also monitors for service level agreement (SLA) breaches, ensuring that contractual obligations are met and reducing the risk of penalties.

Automation

Process mining is a great precursor to automation. It identifies which steps are repetitive and stable enough to be handled by robotic process automation (RPA). Instead of guessing what to automate, businesses use the data to pick the processes that will yield the highest efficiency gains.

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Building a process mining pipeline example

For a developer, process mining isn't just about viewing a dashboard; it's about building the data pipeline that makes those insights possible. Here is a practical example of how you might engineer a solution using Google Cloud to optimize an e-commerce order system.

  • Step 1: Centralizing the logs Your first task is getting the raw data out of your application and into a place where it can be analyzed. You might configure your e-commerce application (running on Google Kubernetes Engine or Compute Engine) to send application logs to Cloud Logging. From there, you create a "Sink" to automatically export these logs into BigQuery. This ensures that every "Order Placed," "Payment Processed," and "Item Shipped" event is permanently stored in a scalable data warehouse.
  • Step 2: Transforming data into event logs Raw application logs are often messy JSON blobs. You need to transform them into a clean "Event Log" format that process mining algorithms can read. You can use BigQuery SQL or Dataform to write a transformation pipeline. This pipeline extracts the three critical columns: Case ID (Order Number), Timestamp (Time of event), and Activity Name (e.g., "Payment Approved").
  • Step 3: Predicting outcomes with AI Once your clean event log table is in BigQuery, you can use Vertex AI to add predictive intelligence. You can train a tabular classification model directly on your BigQuery data to predict binary outcomes, such as "Will this order be late? (Yes/No)." You can then write these predictions back into BigQuery, enriching your process data with future probabilities.
  • Step 4: Visualizing and alerting Finally, you can connect Looker to your BigQuery tables to visualize the process flow and the predicted delays. You can also set up a Cloud Run Function that triggers an alert to the customer support team whenever Vertex AI predicts a high probability of a delivery delay, allowing them to proactively contact the customer.

Additional resources

Learn more about the concepts, data foundations, and Google Cloud technologies that power process mining.

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