Many organizations invest heavily in optimizing their ERP systems, but our experience across industries – based on actual processed data – shows that only a fraction of work time, 23.2%, is spent within ERP. This global average is a shocking number and goes against the assumption that the Process Mining industry, that is focused on optimizing ERP-based processes, is holding up. In contrast, Productivity Mining, that focuses on the holistic and direct impact of the workforce, offers many more clear benefits. Yet, many organizations continue to invest more in traditional process mining.
Our data shows clearly that the highest workforce-related potential for productivity improvement is outside of ERP (>75% FTE time). This is the core reason for KYP.ai customers to focus on Productivity Mining, which covers 100% of the delivery of their teams. By analyzing and optimizing process steps and activities outside of ERP, organizations can quickly unlock significant gains in productivity and efficiency.
Our data shows clearly that the highest workforce-related potential for productivity improvements is outside of ERP systems (>75% FTE time)
For example, a customer service center processed a service request on average within 36 minutes – the average handling time (AHT) per case – by using an ERP ticketing system, plus File Explorer and Excel spreadsheets. Reducing the time spent in Excel and File Explorer, through the implementation of intelligent processing models, reduced the AHT per case by 24% to 27 minutes.
ERP systems are comprehensive, integrated software platforms that support a range of business functions, such as accounting, procurement, inventory management, and human resources. They are designed to streamline business processes and improve operational efficiency. However, the cost of implementing and improving an ERP system can vary widely depending on factors such as the size of the organization, the complexity of the system, the level of customization required, timeline pressures and the vendor chosen.
According to a report by Panorama Consulting Solutions, the average cost of an ERP implementation in 2020 was $7.1 million for organizations with annual revenue over $1 billion and $2.6 million for organizations with annual revenue under $1 billion.(1)
Compared to other measures, ERP system changes are more costly to implement and improve. This is because ERP systems are typically less flexible and require more customization and integration with other systems.
…. the average cost of an ERP implementation in 2020 was $7.1 million for organizations with annual revenue over $1 billion and $2.6 million for organizations with annual revenue under $1 billion.(1)
However, if more then 75% of your workforce’s time is spent outside of ERP, there must be a way to introduce measures of change and improvement more flexibly and speedily. And there is! KYP.ai’s Productivity Mining platform displays a 100% view of the activities of your workforce and gives you a 360-degree view of the people, processes, and the technology. This way, your transformation roadmap is easily fuelled, and the chance of tangible outcomes is significantly higher.
KYP.ai’s Productivity Mining platform displays a 100% view of the activities of your workforce and gives you a 360-degree view of the people, processes, and the technology
In summary, it’s surprising that organizations invest more in traditional process mining that is focused on ERP, than in the direct impact of the workforce where most of the gold lies. That is most successfully measured using Productivity Mining. By focusing on Productivity Mining, organizations can achieve significant gains in efficiency and productivity and unlock the true potential of their workforce.