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In this blog, you will learn about independent Process Performance Indicators. Together with an example we will explain how you can effectively apply filters to apply a detailed root cause analysis.
*Access previous blogs:
- Outline: Introducing Blog Series of SAP Signavio Process In... - SAP Community
- Start page and four main pillars: Start page of SAP Signavio Process Insights, disco... - SAP Community
- Blog 1: End-to-End processes: End-to-end Processes and modular processes in SAP ... - SAP Community
- Deep Dive: End-to-End processes: Source to Pay: Deep dive: End-to-End processes with a closer look... - SAP Community
- Blog 2: Lines of Business: Lines of Business (LoBs) and Value Drivers in SAP ... - SAP Community
- Blog 3: Value Analysis: Value Analysis and potential monetary impact in SA... - SAP Community
- Blog 4: Process Flows: Process Flows and blockers in SAP Signavio Process... - SAP Community
- Blog 5 Correction Recommendations: Correction Recommendations in SAP Signavio Process... - SAP Community
Note: To gain the most value of this blog, we recommend reading Blog 1: End-to-End Processes: End-to-end Processes and modular processes in SAP ... - SAP Community and Blog 1.1 Deep Dive: Deep dive: End-to-End processes with a closer look... - SAP Community.
Introduction
After choosing the entry point of your analysis, like a particular end-to-end process or line of business, it's time to dive deeper into your process performance analysis using the provided performance indicators.
What is a process performance indicator?
In a nutshell, process performance indicators provide key metrics that quantify the performance of business processes. They're more granular than KPIs (which focus on the overall functioning of a company) and enable you to understand process performance as opposed to overall performance in your organization. They indicate performance at an operational level and are used to understand where optimization is required.
Internal and external Benchmark
One standout advantage is the opportunity for benchmarking in SAP Signavio Process Insights, discovery edition for some of the PPIs that are available. It is a vital practice for organizations seeking to stay competitive and achieve excellence in their operations. By comparing your performance metrics with those of similar companies in the industry, you can gain valuable insights and identify areas for improvement. As a short note, industry benchmarking data is based on existing external data, gathered throughout the past years.
Example:
To illustrate benchmarking, we will demonstrate its application as followed, in the End-to-End processes / Source to pay area– All modular processes. As you can see, there is a yellow sticker mentioning benchmarking opportunities, as shown in the screenshot below.
Note: Once you master the navigation, you can browse faster into your analysis leveraging the top navigation bar:
By clicking on "Purchase order items created", this overview appears:
In this example, the system identified that only 2% purchase order items are created automatically, based on the total object count (83). As described in the overview, the automation rate puts the performance in the significantly low 25 percent compared to industry peers. We recommend you have a look at the available recommendations to move towards top performing companies.
Note: The industry benchmarking performance visualization divides the data into four groups, so called quartiles. It reflects how well your processes are compared to industry peers. Your performance is represented by a colored indicator and a dot on a scale from 0 to 100. The quartiles and 4 available colours indicate whether your performance is significantly below, below, above, or significantly above the benchmark.
Internal Company Benchmark
This section will display the top5 types plus “others”, the sum of the other types In this specific example , there are the only 4 types of “Object Count distribution” created for this specific PPI within this company processes. The brown colour indicates objects created manually, whereby the blue colour represents the objects created automatically.
Looking on the right table “Automation rate distribution” it is a logical conclusion that the first three document types have zero percentage automation rate as they are created manually, causing inefficiencies in your processes, which can be automated by applying the recommendations the system is proposing to you. Only for the document type “UB” exists a 67% automation rate.
At this point, it should be noted that you have the option of adding filters (picture below) that allow you to search through different factors, such as plant and item category. By looking into different factors, it offers insights into diverse process aspects, facilitating a comprehensive understanding and identification of optimization opportunities.
Dive Deep into Your Performance Analysis
After covering the benchmarking opportunities (internal and external) we will now investigate the detail list. The screenshot below represents the detail list of the performance indicator “Overdue and open Accounts Payable items” in the End-to-End process “Source to pay”. The detail list allows you to examine all business object instances impacted by what the performance indicator measures. In addition, you can download the data for further investigation.
Note: You may wonder why there are blank spaces in some business objects. The reason for that is the broad, yet limited scope of the discovery edition. Keep in mind that the full edition provides you with all data and filtering capabilities.
Monetary value: At this point, it is important to mention that the full edition, SAP Signavio Process Insights, provides you with monetary value information. Seeing the monetary value of affected business objects while analyzing your data can help you to understand the financial impact of process inefficiencies and prioritize areas for improvement.
Apply filters for a detailed root cause analysis
Once you click on the blue bottom “Filters” shown in the previous screenshot, you will find this overview.
This overview represents the following filters Document type, Company code, and Fiscal year. When you add filters, they are always applied from left to right. This means that if you add a filter for selection and then select values for that filter, the available filter values for subsequent filters that you add for selection are dynamically adjusted depending on the filter values you've already selected.
Paying closer attention towards the filter “fiscal year” you can see that in year 2021 28,298 documents were created which need to be cleared. Viewing the details allows you to really dive deep and get comprehensive insights into the root causes of processes that cause inefficiencies.
Note: I actually also like to filter by "Due on", which gives me the capability to filter for a specific date, or a date range.
Do your selection based on the highest number of items involved:
Once the selection is made, you can export it into a .xls file for further offline investigation with experts within your organisation:
Recommendations at Process Performance Indicator level
As we have already mentioned in our previous blog 5 correction recommendations provide concrete information and instructions about specific steps your organization can take to resolve business process issues. They are derived automatically from the data ingested from your source system based on standard performance indicators.
Next to the Correction recommendations, you will find the recommendations for Innovations, such AI related to this specific Process Performance Indicator. We will speak more about Innovation Recommendations in our Blog.
Key takeaways
- Process Performance Indicators (PPIs): PPIs quantify business process performance and are more detailed than KPIs.
- Benchmarking: Benchmarking helps organizations stay competitive and achieve operational excellence. SAP Signavio Process Insights, discovery edition enables you to compare your metrics with industry peers and benchmark internally to gain insights and identify improvement areas. (Industry benchmarking data is based on external data collected over the years).
- Filters for Detailed Analysis: Filters can be added to search through different factors like plant and item category which supports in gaining comprehensive insights and identifying optimization opportunities.
- Monetary Value: SAP Signavio Process Insights (full edition), provides additionally monetary value information. Seeing the monetary value of affected business objects while analyzing your data can help you to understand the financial impact of process inefficiencies and prioritize areas for improvement.
- Root Cause Analysis with Filters: Filters allow for detailed root cause analysis.
- Correction Recommendations: Offers concrete steps to resolve business process issues. Recommendations are derived from data based on standard performance indicators.
Looking ahead:
Next on the roadmap of the eight-part blog journey is the blog on Long-term improvements to Plan (Innovation recommendations).
In case you have any questions feel free to leave a comment in the comment section or reach out via email to: Signavio-Discovery@sap.com.
Request your free* SAP Signavio Process, Insights discovery edition analysis today: https://url.sap/discovery-edition
(*For SAP maintenance customers)
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