The Big Book of EMS Use Cases

Home , Lead management

Finance & Administration

Customer Operations Celonis Execution Management System Supply & Distribution Products & Services

Strategic Initiatives Table of Contents

Introduction...... 1

CHAPTER 1 CHAPTER 2 Finance & Administration Customer Operations Page 2 Page 8

Accounts Payable...... 3 Lead Management...... 9

Record-to-Report...... 4 Customer Onboarding...... 10

Accounts Receivable...... 5 Order Management (Customer Service)...... 11

Hire-to-Retire...... 6 Opportunity Management...... 12

ITSM...... 7 Customer Service...... 13

CHAPTER 3 CHAPTER 4 Supply & Distribution Products & Services Page 14 Page 19

Sourcing & Procurement...... 15 Shop Floor / MES...... 20

Warehouse Operations...... 16 Plant Maintenance...... 21

Inventory Management...... 17 Quality Management...... 22

Replenishment / Drop Shipment...... 18 Product Lifecycle Management...... 23

CHAPTER 5 Strategic Initiatives Page 24

System Migration...... 25

Operational Excellence...... 26

Mergers & Acquisitions...... 27

Audit...... 28

Conclusion...... 29 Introduction

Introduction At Celonis, we’re in the business of business breakthroughs.

Finance & Administration We believe in helping every company break free from the Two very different processes, in two very different departments. Customer Operations constraints of the rigid and fragmented systems that run their core What do they have in common? They both run on a web of transac- business processes, so they can maximize their capacity to execute. tional systems like ERPs that make it difficult to close these gaps and Supply & Distribution increase these KPIs. For different companies — and for different departments across Products & Services every company — “execution” means very different things. And the Luckily, the Celonis Execution Management System can help you do Strategic Initiatives gaps that need to be closed are just as varied. just that. Conclusion Take the Accounts Payable process. A key measure of execution In this book, you’ll find more than 70 examples of ways the Celonis capacity here is the touchless invoice rate, which contributes to clerk EMS can help you increase execution capacity, in over 20 use productivity: the fewer invoices clerks need to touch, the more they cases, spanning 5 business areas. can focus on the ones that truly need manual processing. By using intelligent automation to fix discrepancies in invoices’ master data, You might ask: “Are these Process Mining use cases?” Yes, they are, so that fewer of them need to be reviewed by a human, best-in- since Process Mining is at the core of the EMS Platform. But, as you’ll class AP departments are climbing north of 85% touchless invoices. see in all of these use cases, the EMS goes much further, turning process intelligence into real business outcomes through AI, automa- Now, if we look at Order Management, one way we gauge execution tion, and other cutting-edge capabilities. capacity is on-time, in-full delivery, or OTIF. A common gap here is long-running credit checks that block orders and delay processing We hope you’ll see the power of this new class of technology and — often for top customers with a history of good credit and paying share in our vision that process improvement is not the end game — on time. But a real-time intelligence engine can predict which orders it’s the first step to maximizing execution across your entire company. are likely to be delayed due to credit checks, and automatically unblock those orders for customers in great standing. This is one Let’s go! strategy used in industry-leading Supply Chains to keep OTIF high.

The Big Book of Use Cases: 1 Celonis Execution Management System Finance & Administration

Introduction Finance & Administration Accounts Payable Record-to-Report Accounts Receivable Hire-to-Retire ITSM

Customer Operations Supply & Distribution Products & Services Strategic Initiatives Conclusion

Finance & Administration Leaders in Finance & Administration play an increasingly stra- Whether you’re looking to improve budgeting and forecasting, tegic role in companies today. They must carry the weight of their better understand and track your cash flow, minimize resolution decisions knowing they can cause potential consequences that cost in your IT Helpdesk, reduce employee turnover, or find new greatly impact profits, cash flow, and even the financial wellbeing ways to automate cumbersome, manual steps, Celonis can help of the company. It’s time to offload some of that pressure. These you measure your performance, identify and visualize the existing leaders recognize the best way to manage the financial and shared execution gaps, and recommend the best course of action. Now, services activities of a company is to have optimal transparency, you can remove the constraints in your F&A systems, freeing up your accuracy, and efficiency across every function. execution capacity and enabling your team and your company to execute to their full potential.

The Big Book of Use Cases: 2 Celonis Execution Management System Accounts Payable Process Involved: Accounts Payable is the backbone of finance operations, and processing invoices productively and paying Account Payable at exactly the right time can have a huge impact on working capital and operating margins. But execution Department involved: Account Payable gaps in invoice processing hamper performance. Celonis helps you optimize DPO, save cash, and increase productivity during invoice processing.

Introduction How Celonis helps Working Capital Save Money Increase Productivity Finance & Administration (Outcome) Accounts Payable Execution Capacity Cash Discount Realization Paid on Time Rate Touchless Invoice Rate Record-to-Report (KPI) Rate Accounts Receivable

Invoices are received late Missing documents for Hire-to-Retire Execution Gap Incorrect invoice fields from the supplier. processing ITSM

Customer Operations Paper invoices are more likely A goods receipt (GR) is not Incorrect or missing fields Sample Root Cause Supply & Distribution to be late than paperless completed on time when the like currency, VAT, address, or invoices. goods are received. due date can occur because Products & Services of master data issues and manual errors on the Strategic Initiatives vendor’s side. Conclusion If an invoice is received late, Identify invoices with a Identify discrepancies in Action automatically notify the missing GR and automat- invoice fields by comparing supplier that the invoice may ically trigger the request the PO, historical data, and be paid late, and optionally for the GR to be posted. the invoice for standard fields alert the sourcing manager if Upon receipt, automatically like currency/VAT. Automati- the issue is systemic. remove the payment block to cally update the fields based enable payment processing on the PO and historical data. in time to capture cash discounts.

Chart Industries leveraged Celonis to realize more than $6M in material purchase price savings through vendor price book compliance and recapture $200K in annual missed cash discounts improvements. Learn More The Big Book of Use Cases: 3 Celonis Execution Management System Record-to-Report Process Involved: Record-to-Report forms provide necessary insights on the strategic, operational, and financial facets Record-To-Report of a company’s performance. But execution gaps occur in the complex processes and industry-specific Departments involved: Finance, Accounting regulations. Celonis helps you close faster by automating manual tasks and proactively helping employees avoid errors.

Introduction How Celonis helps Analyst Productivity Improve Data Timeliness Increase Automation Finance & Administration (Outcome) Accounts Payable Execution Capacity Time to Regulatory Close Data Feed On-Time Rate Straight-Through Processing Record-to-Report (KPI) Accounts Receivable Edits checks are processed Data feeds are received after Recurring adjustments to Hire-to-Retire Execution Gap manually. their deadlines. intercompany data ITSM

Customer Operations Analysts manually process Local product processors Internal data reporting Sample Root Cause spreadsheets by first down- (data suppliers) do not standards differ from external Supply & Distribution loading large reports as CSV adhere to the agreed upon data reporting standards. files, then copy-pasting the SLAs. Products & Services results into Outlook to circu- Strategic Initiatives late via email. Conclusion Automate the edit checks Automate the data feed Automate intercompany Action where possible and provide retrieval process where adjustments where possible the validation to the relevant possible. If automation is not based on historical data. stakeholders. possible, identify chronically late feeds and notify the product processor teams.

The Big Book of Use Cases: 4 Celonis Execution Management System Accounts Receivable Process Involved: Accounts Receivable departments are focused on getting customers to pay on time. But execution Accounts Receivable gaps in manual, non-data-driven collections hinder performance. Celonis helps you maximize DSO by Departments involved: Accounts Receivable, Credit prioritizing accounts with the highest likelihood to pay, recommending actions for high-risk accounts, & Collections and ensuring a 360° view of your customers.

Introduction How Celonis helps Working Capital Billing Efficiency Cost Per Invoice (Outcome) Finance & Administration Accounts Payable Execution Capacity Days Sales Outstanding Time to Invoice Perfect Invoice Rate Record-to-Report (KPI) (DSO) Accounts Receivable

Hire-to-Retire Large numbers of customers Invoices are created and sent Invoices contain an incorrect Execution Gap are at risk of not paying. to customers late. field such as the wrong bill-to ITSM address, customer number, or customer entity. Customer Operations Supply & Distribution Customer payment risks are Invoices are created based Incorrect master data is Products & Services Sample Root Cause not identified early enough to on outdated master data being used. take meaningful action. rather than when a customer Strategic Initiatives delivery is received. Conclusion

Identify and escalate high- Trigger the timely creation of Automatically review Action risk customers to sales the invoice within 24 hours of contracts and historical data and customer success for goods delivery. to recommend the appro- support, and flag the escala- priate master data updates tion in the CRM. and either notify the customer master data team or automatically modify the invoice based on confidence level.

Sysmex reduced past-due receivables by 60% in 9 months while decreasing the late payment rate from 61% to 44%, despite the impact of COVID-19. Learn More

The Big Book of Use Cases: 5 Celonis Execution Management System Hire-to-Retire Process Involved: Human Resources departments focus on the ability to hire and grow the right talent. But execution gaps in Hire-to-Retire recruiting, professional development, and manual onboarding impede employee growth. Celonis helps you Department involved: HR reduce employee turnover, enhance employee performance, and increase HR productivity by automating manual steps and recommending performance plans.

Introduction How Celonis helps Employee Retention Employee Retention HR Productivity Finance & Administration (Outcome) Accounts Payable Execution Capacity Onboarding Time, Offboarding Turnover per Year Development Opportunities Record-to-Report (KPI) Time Accounts Receivable

New hires leaving during High potential employees Manual tasks slow down the Hire-to-Retire Execution Gap probationary period are not being presented with onboarding and offboarding ITSM development opportunities processes. to keep them engaged and Customer Operations take full advantage of their skill sets. Supply & Distribution Products & Services New employees are not Managers are not made New employees spend hours Sample Root Cause Strategic Initiatives receiving proper training aware of the dissatisfaction of re-work due to missing due to out-of-date training with development oppor- materials during set up of Conclusion content on learning portal. tunities outside of annual employee profiles in HRMS. reviews.

Monitor training portal Notify managers of high Upon new hire, pro-actively Action material date and remind potential employees that send a new employee prepa- the creator to update on a lack recent development ration package of infor- periodic basis. Enable user opportunities. mation from HRMS needed of training portal to kick-off to complete the employee automated “out-of-date” profile. alert additionally.

The Big Book of Use Cases: 6 Celonis Execution Management System ITSM Process Involved: IT Management Service leaders aim for superior customer service and high agent productivity. But execu- IT Service Help Desk tion gaps in ticket routing, agent skills, and case prioritization are standing in the way. Celonis helps you Department involved: IT achieve SLAs and improve ticket handling through routing recommendation, prioritizing tickets, and automating manual tasks.

Introduction How Celonis helps Compliance Resolution Cost Team Productivity Finance & Administration (Outcome) Accounts Payable Execution Capacity SLA Compliance Rate Cost per Case Agents per Case Record-to-Report (KPI) Accounts Receivable

High resolution times lead to Incidents are processed by Large scale problems are not Hire-to-Retire Execution Gap service level agreement (SLA) more costly support tiers. prioritized as they are seen ITSM violations. as individual incidents.

Customer Operations

Supply & Distribution Multi-hops and inefficient When the issue type is incor- A sudden influx of cases from Sample Root Cause agent assignments cause a rectly classified or key infor- one geographical region Products & Services delay in resolving incidents. mation is missing upfront, may be due to a data center certain types of incidents are outage. Strategic Initiatives not intelligently routed to the right team. As a result, they’re Conclusion routed either one level too high or too low.

Use a Machine Learning Automatically assign cases Link related cases together Action model to predict the resolu- to the right support tier by and assign them to one tion time of incidents, trigger analyzing previous resolution agent with highest priority for warnings, and escalate the patterns, the category of the processing. Notify the service case to a higher priority incidents, and the skill level manager of the large scale before it exceeds the SLA. of teams. incident.

CompuCom is leveraging Celonis to analyze and

improve its managed service processes in more Learn More than 4 million ServiceNow incidents per year, achieving up to 20% reduction in service ticket

The Big Book of Use Cases: volumes. 7 Celonis Execution Management System Customer Operations

Introduction Finance & Administration Customer Operations Lead Management Customer Onboarding Order Management (Customer Service) Opportunity Management Customer Service

Supply & Distribution Products & Services Strategic Initiatives Conclusion

Customer Operations Leaders in Customer Operations take the phrase “it’s all about the Celonis can help you measure your performance, identify and customer” to heart. They define success by understanding their visualize the existing execution gaps, and recommend the best customers, prioritizing interactions, and keeping a pulse on lead course of action. Now, you can remove the constraints in your opportunities. They understand customer onboarding experiences customer operations systems, freeing up your execution capacity can make or break the ongoing relationship their customer has with and enabling your team and your company to execute to their full their product, and they need intelligent tools to enable an excep- potential. tional customer experience.

The Big Book of Use Cases: 8 Celonis Execution Management System Lead Management Process Involved: Lead Management leaders focus on driving high quality leads with high ROI campaigns. But execution Lead-to-Opportunity gaps in lead routing, manual tasks, and poor targeting reduce performance. Celonis helps you improve Departments involved: Insides Sales, campaign ROI and lead conversion rates by providing in-process lead routing recommendations, prioriti- Business Development zation of accounts for campaigns, and automation of manual tasks.

Introduction How Celonis helps Improve ROI of Digital Speed up Qualification Increase Quality Finance & Administration (Outcome) Campaigns Customer Operations Lead to Marketing Qualified MQL > Sales Accepted Lead Execution Capacity Cost per MQL Lead Management (KPI) Lead (MQL) Time (SAL) Conversion Rate Customer Onboarding

Order Management (Customer Service) It takes too long until first Unqualified leads are Campaigns fail to generate Execution Gap touch on a lead. submitted to become leads that convert into MQLs. Opportunity Management opportunities. Customer Service

Supply & Distribution Improper prioritization and Qualification consists of Campaigns tactics are Sample Root Cause assignment multiple tasks in various targeting the wrong buyer Products & Services applications, resulting in personas and contain the errors and work-arounds. wrong offer. Strategic Initiatives Conclusion Use Machine Learning to Intelligently and conditionally Use Machine Learning and Action prioritize and assign leads automate manual tasks in Analysis to target specific most likely to become oppor- the BDR qualification process. offers to specific personas. tunities.

The Big Book of Use Cases: 9 Celonis Execution Management System Customer Onboarding Process Involved: Customer Onboarding can define the ongoing relationship with your customers. But execution gaps in Customer Onboarding faulty online portals, manual tasks, and improper compliance get in the way. Celonis helps you delight Departments involved: Onboarding Operations, customers during onboarding by pro-actively avoiding rework, removing redundant steps, and recom- Customer Success mending actions to improve compliance.

Introduction How Celonis helps Productivity/Decreased Customer Satisfaction Compliance Finance & Administration (Outcome) Process Cost Customer Operations Execution Capacity Self-service Onboarding Ratio Onboarding Cycle Time Number of Process Violations Lead Management (KPI) Customer Onboarding

Sets of customers are unable Re-work in process, delaying Key regulation required steps Order Management (Customer Service) Execution Gap to complete specific steps in on-boarding. are completed, but at a low Opportunity Management an online portal. compliance rate. Customer Service

Supply & Distribution Certain steps in the Late quantity order and/or Background checks and Sample Root Cause on-boarding process require quantity changes common due diligence steps Products & Services information. that require detailed work are completed in haste. Strategic Initiatives Conclusion Proactively alert customers Pro-actively double check Alert the onboarding person Action to have certain information order quantity and price with when a step in the process is ready prior to starting the logic and Machine Learning. completed too quickly or fails on-boarding process.. Then alert customers if there to reach quality standards. is an inaccuracy.

Degussa Bank realized a 32% reduction in customer onboarding time, while increasing their automation rate by 20%.

The Big Book of Use Cases: 10 Celonis Execution Management System Order Management (Customer Service) Process Involved: Order Management leaders strive to provide exceptional customer experience at effective costs. But execu- Order-to-Cash tion gaps in order processing due to improper credit checks, EDI blocks, and order changes create havoc. Departments involved: Order Management, Fulfillment, Celonis helps you prioritize critical orders, optimize next-best action recommendations for on-time delivery, Accounts Receivable and avoid re-work.

Introduction How Celonis helps On-Time Delivery (OTD) Productivity Customer Satisfaction Finance & Administration (Outcome) Customer Operations Execution Capacity OTD, On-Time and In-Full Cost per Order Net Promoter Score (NPS) Lead Management (KPI) Delivery (OTIF) Customer Onboarding

Long running credit checks EDI blocks create manual Changes to confirm delivery Order Management (Customer Service) Execution Gap delay order processing. steps. date post order confirmation Opportunity Management Customer Service Frequent customers with The same changes in ship- Confirmed delivery dates Supply & Distribution Sample Root Cause +95% history of on-time ping condition and terms are are based on standard lead payment are held on block performed on blocked orders times provided by the supply Products & Services for nearly five days before repeatedly. chain. When there are issues having their credit approved in the supply chain, delivery Strategic Initiatives +90% of the time. dates are delayed. Conclusion Use Machine Learning to Use Machine Learning to When first receiving the Action predict which customers predict EDI blocks and order, identify orders likely to have a high likelihood to pay recommend proper shipping be impacted by the supply on-time, and proactively conditions for Order Manager chain issues. Automatically skip credit checks for those to recommend to the update delivery dates and customers. customer. alert the account team to inform customers.

Ascend Performance Materials reduced their time

from order to delivery by 3 days, improving on-time Learn More delivery rate by 27% and their automation rate by 43%, all in only 4 months. The Big Book of Use Cases: 11 Celonis Execution Management System Opportunity Management Process Involved: Opportunity Management is the key to driving increased revenue in B2B sales. Yet, execution gaps in Opportunity Management substandard account prioritization, ineffective forecasting, and manual quoting reduce opportunities. Departments involved: Sales, Celonis helps you maximize bookings by prioritizing opportunities, providing multi-tiered forecasting, and Strategic Finance automating the quoting process.

Introduction How Celonis helps Increase Revenue Improve Selling Efficiency Improve Sales Predictability Finance & Administration (Outcome) Customer Operations Execution Capacity Win Rate Sales Cycle Time Forecast Accuracy Lead Management (KPI) Customer Onboarding

Deals that should be won are Configure Price Quote (CPQ) Forecast Accuracy outside Order Management (Customer Service) Execution Gap being lost. Process takes too long. the current quarter is low. Opportunity Management Customer Service Executive time is not being There’s a lot of manual steps Account Executives lack Supply & Distribution Sample Root Cause spent on the opportunities and human error involved information and skills to with the highest likelihood to in the quota process that provide accurate forecasts. Products & Services close. creates rework. Strategic Initiatives

Conclusion Use Machine Learning to Intelligently automate and Use bottom’s-up ML-based Action identify the high probability remove unnecessary steps in forecast to suggest forecast opportunities and recom- quota processes. for Account Executives. mend Sales Management allocate resources accord- ingly.

“Our goal is to give 500,000 hours back to our Sales team of over 30,000 reps. We weren’t able to understand the Sales process end-to-end until we brought in Celonis on top of the Dell Sales Application. Now, we understand exactly which steps of our process are the most time-consuming and error-prone, and we are using proactive alerts to drive Sales execution.”

Pranay Jaiswal, Director of Business Architecture and Digital Transformation, Dell The Big Book of Use Cases: 12 Celonis Execution Management System Customer Service Process Involved: Customer Service leaders strive to provide superior customer experience while running an efficient contact Customer Service Help Desk center. But execution gaps in poor ticket routing, manual tasks, and ineffective self-service portals reduce Departments involved: Customer Success, customer satisfaction. Celonis helps improve the customer experience with ML-based recommendations in Customer Support routing and customer outreach.

Introduction How Celonis helps Customer Satisfaction Resolution Cost Team Productivity Finance & Administration (Outcome) Customer Operations Execution Capacity Service Level Agreement Self-Service Resolution Average Case Resolution Lead Management (KPI) (SLA) Compliance Rate, Net Ratio Time Promoter Score (NPS) Customer Onboarding Order Management (Customer Service) Certain types of cases take a Customers are spending Multiple related incidents Execution Gap Opportunity Management long time to resolve. time in self-service portals are treated individually by but still calling support. multiple agents, while they Customer Service could be treated by a single or small group of agent(s). Supply & Distribution Products & Services Lack of proper routing and Certain topics are too chal- A new, difficult case type Strategic Initiatives Sample Root Cause prioritization for technically lenging to address in the takes a long time to resolve. hard cases support knowledge base. Conclusion

Use a Machine Learning Proactively contact Analyze case types consis- Action model to predict the resolu- customers who search tently and identify long reso- tion time of incidents, trigger knowledge bases for certain lution times, train agents, and warnings, and escalate topics. proactively route those case at-risk cases or change types to a specialized team. routing.

Uber reduced their average case handling time by 29% for rider authorization holds, realizing $20M in savings through these efficiency gains. Learn More The Big Book of Use Cases: 13 Celonis Execution Management System Supply & Distribution

Introduction Finance & Administration Customer Operations Supply & Distribution Sourcing & Procurement Warehouse Operations Inventory Management Replenishment / Drop Shipment

Products & Services Strategic Initiatives Conclusion

Supply & Distribution Today, more than ever, supply chains are fragmented. Leaders in Celonis can help you measure your performance, identify and Supply & Distribution know the only way to mend the links is to visualize the existing execution gaps, and recommend the best view the entire supply chain as a strategic asset. They recognize course of action. Now, you can remove the constraints in your effective management of the whole distribution process is critical Supply & Distribution systems, freeing up your execution capacity to a company’s financial success and longevity. and enabling your team and your company to execute to their full potential. Whether you’re looking to redesign your distribution network, invest in new resources, fill orders faster and with more agility, accelerate your forecasts, or even reposition products around sustainability,

The Big Book of Use Cases: 14 Celonis Execution Management System Sourcing & Procurement Process Involved: Procurement leaders recognize spend management and supplier reliability are critical to company Source-to-Pay performance. But execution gaps due to improper blocks, PO changes, manual steps, and maverick buying Departments involved: Procurement, Sourcing, hinder performance. Celonis helps you improve execution by removing unnecessary blocks, recommending Supply Chain actions on PO changes, and automating manual steps.

Introduction How Celonis helps Employee Productivity Supplier Performance Compliance Finance & Administration (Outcome) Customer Operations Execution Capacity Processing time of Purchase Inbound On-time Delivery Compliance Ratio Supply & Distribution (KPI) Requisitions (PR) Rate Sourcing & Procurement High volume of free-text Recurring late deliveries of Warehouse Operations Execution Gap requisitions direct procurement materials Maverick purchases Inventory Management with respect to internally planned/requested delivery Replenishment / Drop Shipment date

Products & Services Requisitioners manually Master data around internal Requisitioners try to speed up Strategic Initiatives Sample Root Cause create free-text requisitions planning parameters is their purchase by circum- due to lack of knowledge, incorrect. venting the internal procure- Conclusion negligence, or haste rather ment procedures. than selecting a standard vendor with pre-negotiated terms from a catalog.

Use a Machine Learning Identify confirmed delivery Notify purchasing managers Action model to either automatically dates that are systemically of repeat offenders and convert a free-text PR to a PO, later than the requested/ provide them with the ability or recommend an item from planned delivery date and to block requisitioner system an existing catalog to the then either automatically access, reject maverick operational purchaser. update these planning purchases, or contact parameters or notify the vendors that repeatedly fulfill planning team of a potential maverick purchases. systemic issue.

Vodafone went from a 73% to 96% L’Oreal had an 800% increase in Perfect PO rate. touchless orders.

The Big Book of Use Cases: 15 Celonis Execution Management System Warehouse Operations Process Involved: Warehouse Operations leaders prioritize improving on-time delivery at minimal inventory levels. But Outbound Logistics execution gaps in manual processes, order changes, and incorrect data hamper execution. Celonis helps Departments involved: Warehouse Management, you improve customer satisfaction by proactively optimizing master data, automating manual steps, and Logistics, Fulfillment automatically prioritizing critical orders.

Introduction How Celonis helps Customer Satisfaction Productivity Quality Assurance Finance & Administration (Outcome) Customer Operations Execution Capacity On-Time-Delivery (OTD) Picks per Hour Failed Quality Check Ratio Supply & Distribution (KPI) Sourcing & Procurement Short picks, failed quality Items are not available in the Warehouse Operations Execution Gap checks, and changed orders warehouse. Quality checks routinely fail. Inventory Management Replenishment / Drop Shipment Short picks and quality Warehouse is systematically Quality checks can fail due Sample Root Cause Products & Services issues can both be caused lacking the correct inventory to unreliable master data by master data issues to fulfill orders. or from an inexperienced Strategic Initiatives concerning warehouse avail- picking team that doesn’t ability and item details such select the correct item in the Conclusion as weight. right quantity.

Use a Machine Learning Identify systemic availability Identify systemic patterns Action Model to predict which orders issues and notify the plan- that result in failed quality have a higher likelihood to ning team to update inven- checks and either notify the not reach the truck before tory levels, as well as trigger planning team to correct the cut-off time based on automatic replenishments. faulty master data or notify each milestone of the picking the warehouse lead to process. Trigger a resolu- conduct additional training. tion workflow based on the specific issue type.

4M€ 140K€ total annual savings potential in total value realized identified for planned roll-out in 12 months in warehouses across Europe

The Big Book of Use Cases: 16 Celonis Execution Management System Inventory Management Process Involved: Inventory Management leaders aim to spend less on storage and stock while perfecting customer service. Inventory Management But execution gaps in manual forecasting, poor supplier communications, and unreliable master data Departments involved: Supply Chain, hurts performance. Celonis helps you improve inventory management by providing accurate forecasts and Inventory Management enhancing lead-time accuracy through ML models.

Introduction How Celonis helps Revenue Net Working Capital Supplier Reliability Finance & Administration (Outcome) Customer Operations Execution Capacity Revenue at Risk Inventory Value Inbound On-Time Delivery Supply & Distribution (KPI) Sourcing & Procurement Inventory reduction is lower Low supplier reliability Warehouse Operations Execution Gap than demand. Excess and obsolete inventory requires an inventory buffer Inventory Management to be built to avoid disrupting the business downstream. Replenishment / Drop Shipment

Products & Services Limited insight on impact of Inability to identify excess Unrealistic lead times are Strategic Initiatives Sample Root Cause inventory reduction inventory due to missing being requested of the data supplier. Conclusion

Use a Machine Learning Use a Machine Learning Use an Machine Learning Action model to predict availability model to identify outliers and model to provide recom- and recommend supplier highlight inventory levels that mendations for when inven- lead times that are in line are too high given current tory should be restocked with the reality of supplier supply and demand. based on supplier reliability delivery. and requested lead times.

$125M $85M 100 Days in opportunities identified improvement in asset in inventory turnover in a 2-month deployment utilization captured improvement potential

The Big Book of Use Cases: 17 Celonis Execution Management System Replenishment / Drop Shipment Process Involved: Replenishment/Drop Shipment is a critical process that can delight customers while minimizing inventory Drop Shipment costs. But, execution gaps in poor master data, order changes, and incorrect replenishment limits decrease Departments involved: Supply Chain, performance. Celonis helps improve on-time delivery by recommending proper lead times, enhancing Inventory Management master data, and avoiding re-work.

Introduction How Celonis helps On-time Delivery (OTD) Delivery Reliability Speed Finance & Administration (Outcome) Customer Operations Execution Capacity Inventory Availability, OTD First-time Right Ratio Supply & Distribution (KPI) Cost per Order Sourcing & Procurement Quantity changes after the Discrepancy between planned Warehouse Operations Execution Gap Delivery date changes PO is confirmed. and actual delivery times Inventory Management Replenishment / Drop Shipment The reorder point is too low Lead time master data is Delivery date changes are Sample Root Cause Products & Services or too high, so the goods are inaccurate, causing an over driven by long throughput either over or under ordered promise and under delivery times at replenishment hubs. Strategic Initiatives and cannot accommodate on orders. quantity changes. Conclusion

Identify trends in inventory Measure trends in lead time Recommend informing Hub Action availability and dynamically discrepancy and dynamically manager of delays to prevent adjust the reorder point in the adjust lead time master data future delays. master data with automation. to increase the accuracy of planning parameters.

15% 140K€ productivity increase in in total value realized replenishment process in 12 months

The Big Book of Use Cases: 18 Celonis Execution Management System Products & Services

Introduction Finance & Administration Customer Operations Supply & Distribution Products & Services Shop Floor / MES Plant Maintenance Quality Management Product Lifecycle Management

Strategic Initiatives Conclusion

Products & Services Do you remember the last time a product exceeded your expec- Celonis can help you measure your performance, identify and visu- tations? Most don’t. When it comes to quality, it’s all about going alize the existing execution gaps, and recommend the best course above and beyond. Leaders in Products & Services recognize it of action to optimize and sustain product development efforts. Now, is increasingly critical to effectively drive productivity, mitigate you can remove any constraints, freeing up your execution capacity rework, and ensure quality to stay competitive. In the face of rapidly and enabling your team and your company to execute to their full changing societal preferences, an evolving regulatory environment, potential. and rising costs, it’s more important than ever.

The Big Book of Use Cases: 19 Celonis Execution Management System Shop Floor / MES Process Involved: Shop Floor / Manufacturing Execution Systems (MES) ensure effective manufacturing operations and Production production. But, execution gaps in unplanned downtime, defects in workplace equipment, and material Department involved: Production availability diminish impact. Celonis helps you improve operational efficiency by predicting machine downtime and using ML to reduce material outages.

Introduction How Celonis helps Increase Productivity Eliminate Rework Ensure Quality Finance & Administration (Outcome) Customer Operations Execution Capacity Reactive Maintenance Rate Rework Rater Scrap Rate Supply & Distribution (KPI) Products & Services

Unplanned machine Defect workpiece carriers Suppliers routinely ship Shop Floor / MES Execution Gap downtime times sub-par quality components. Plant Maintenance Quality Management Machine maintenance is Correlations between used Supply planning was optimized Sample Root Cause Product Lifecycle Management based on a fixed schedule workpiece carriers and for cost and quality. rather than actual usage. overall rework are not tracked Strategic Initiatives - and required maintenance is missed. Conclusion

Measure machine perfor- Identify workpiece carriers Identify low quality suppliers Action mance and historical trends with a striking rework pattern and recommend the best to identify optimal mainte- to automatically remove performing supplier for each nance windows. defective ones from the corresponding component production line and notify part based on historical data. shop floor managers.

The Big Book of Use Cases: 20 Celonis Execution Management System Plant Maintenance Process Involved: Plant Maintenance achieves minimum breakdown and quality working conditions at the lowest possible Plant Maintenance cost. But execution gaps in bounce rates, production line blocks, and faulty equipment stands in the way. Departments involved: Maintenance, Celonis helps you minimize downtime by prioritizing resources based on likelihood of failure and automati- Procurement cally filling in incomplete work orders.

Introduction How Celonis helps Productivity Compliance Minimize Risk Finance & Administration (Outcome) Customer Operations Execution Capacity Late Completion Rate Cycle Time First-Time-Right Rate Supply & Distribution (KPI) (High Priority Orders) Products & Services Lack of material supply to Low priority maintenance Incorrectly assigned work Shop Floor / MES Execution Gap complete work orders activities delay high priority orders or missing Plant Maintenance maintenance activities. information Quality Management Materials are not held in Resources are scheduled Critical information that helps Product Lifecycle Management Sample Root Cause stock, and supply levels are for lower priority work orders assign the work order to the not checked immediately without knowing these right team is missing. Strategic Initiatives upon receipt of the work resources should be allo- Conclusion order. cated to higher priority work orders.

Automatically analyze work Automatically compare and Use a Machine Learning Action orders and order materials prioritize resources, while model to detect missing that are not in stock. notifying managers if an information based on unavoidable conflict arises. previous requests. Then leverage the ML model to automatically complete the missing information or notify the manager of the work order.

Uniper optimized contractor waiting time on site, for a more punctual start of maintenance work.

The Big Book of Use Cases: 21 Celonis Execution Management System Quality Management Processes Involved: Quality Management continuously improves a company’s production processes to enhance customer Quality Planning, Quality Assurance, experience. But execution gaps in delayed batch releases, high rework rates, and inspection blocks stand in Quality Control the way. Celonis helps you improve quality levels by predicting and avoiding bottlenecks while proactively Departments involved: avoiding rework. Quality Management, Production

Introduction How Celonis helps Productivity Cash Flow Efficiency Finance & Administration (Outcome) Customer Operations Execution Capacity On-Time Batch Release Cost of Quality Quality Inspection Supply & Distribution (KPI) (OTBR) Rate (COPQ & COGQ) Turnaround Time Products & Services A product is made available Poor quality materials cost Slow quality inspection times Shop Floor / MES Execution Gap for use after its planned time and money to remedy, in between production steps Plant Maintenance release date. while cost of quality assurance (e.g. audits or testing) Quality Management can be expensive. Product Lifecycle Management

Strategic Initiatives An upstream process, such Internal factors include scrap, Quality inspections are being Sample Root Cause as purchasing, is delayed. rework, and reinspection. processed, but not approved Conclusion quickly.

Identify bottlenecks within Perform root-cause analysis Identify where the long-run- Action the batch release process to identify where the highest ning approvals are occurring and automate/recommend amount of scrap, rework, and and work with the Quality actions for improvement. reinspection occurs then team to identify if there is a notify managers. training or capacity issue.

Vetter Pharma achieved a 15% reduction in cycle time in their Change & Deviation process and identified 1M+ variants in their heavily regulated and complex system landscape (Trackwise and multiple SAP systems). The Big Book of Use Cases: 22 Celonis Execution Management System Product Lifecycle Management Process Involved: Product Lifecycle Management (PLM) leaders prioritize improving quality and time-to-market. Product Development But execution gaps in development visibility, ticket management, and faulty quality testing hinder Departments involved: R&D, Engineering, performance. Celonis helps you maximize release times and improve predictability with proactive Product ticket monitoring and prioritization.

Introduction How Celonis helps Development Process Faster Releases Development Predictability Finance & Administration (Outcome) Compliance Customer Operations Execution Capacity Product Velocity Sprint planning accuracy Process adherence rate Supply & Distribution (KPI) Products & Services Development tickets are Development tickets are Development tickets are Shop Floor / MES Execution Gap stuck in a code review status. being highly over or underes- skipping a required initial Plant Maintenance timated. validation or code review step. Quality Management Product Lifecycle Management Reviewers are not properly Features are separated into Developers are trying to push Sample Root Cause Strategic Initiatives informed about ticket priority manageable pieces to features through without a or aging information. accurately estimate. code review because they Conclusion didn’t complete development in enough time for a code review to be performed.

Notify reviewers when tickets Automatically isolate Automatically identify tickets Action are in a code review status product areas with consis- as soon as these violations for a certain period of time tently missed sprint SLAs occur and inform the corre- and surface the highest and recommend estimated sponding Product Manager. priority tickets to the top of adjustments based on past This blocks the ticket in its the review list. ticket information. current status until the viola- tion is lifted.

The Big Book of Use Cases: 23 Celonis Execution Management System Strategic Initiatives

Introduction Finance & Administration Customer Operations Supply & Distribution Products & Services Strategic Initiatives System Migration Operational Excellence Mergers & Acquisitions Audit

Conclusion

Strategic Initiatives When it comes to enterprise-wide strategic initiatives, we are Whether you are facing a major ERP system migration, optimizing talking about the things that rock the boat. These are the big your processes to increase speed and automation through your projects that disrupt your daily routine and are often classified Center of Excellence, undergoing a complex M&A, or tackling as the thing you do after your “full-time” job. But they are just as an internal audit, Celonis can help. Now, you can remove any important and demand a level of agility and strategy so you can constraints, freeing up your execution capacity and enabling your run at full execution capacity. In this section we will focus on where team and your company to execute to their full potential. you invest resources dedicated to accomplishing an enterprise- wide objective.

The Big Book of Use Cases: 24 Celonis Execution Management System System Migration Processes Involved: IT leaders’ goal for system migration is to be on budget and on time. But execution gaps in manual, process System Migration, Consolidation mapping, subjective fit gap analysis, and maverick buying are standing in the way. Celonis helps you Department involved: maximize timeline and budget predictability with automatic data-driven process mapping, instant fit-gap IT analysis, and proactive user monitoring.

Introduction How Celonis helps Control Cost & Scope Ensure Solution Fit Accelerate User Adoption Finance & Administration (Outcome) Customer Operations Execution Capacity Process mapping phase Daily Active Users/Monthly Conformance Supply & Distribution (KPI) length & costs Active Users Products & Services Process mapping is subjec- Fit-gap analysis is based on Users who continue to use Strategic Initiatives Execution Gap tive, lengthy, and expensive. subjective information and antiquated software and System Migration methods. practices after the migration Operational Excellence Mergers & Acquisitions Antiquated process mapping Requests are missed when Vendor master data was Sample Root Cause Audit approaches that are not data relying on subjective inter- consolidated in the system driven such as interviews, viewing techniques. migration. Maverick buying Conclusion outdated documentation, has increased as it is now sticky notes, workshops, and more difficult for users to find whiteboards. the strategic vendor in the system.

Leverage Process Mining Generate a ranked list Identify underutilized features Action to automatically create of potential deltas to be in the new system so that an objective process map assessed. Analyze each item management can focus on directly from the system data. for root causes and safe-list their adoption. deltas that make sense.

Schlumberger saved $40M and 2 months off their SAP system migration.

Learn More The Big Book of Use Cases: 25 Celonis Execution Management System Operational Excellence Process Involved: Operational Excellence leaders recognize the key to success is reducing process variation and waste - from Process Excellence rework to unnecessary costs. But execution gaps in unnecessary delays, manual tasks, and employee errors Departments involved: Process Excellence, interfere. Celonis helps you maximize process excellence through data-driven transparency, execution gap Center of Excellence identification, and automation.

Introduction How Celonis helps Increase Speed Increase Automation Increase Compliance Finance & Administration (Outcome) Customer Operations Execution Capacity Cycle Time Automation Rate Number of Process Violations Supply & Distribution (KPI) Products & Services Unnecessary delays between Tedious manual steps in the Employees trying to expedite Strategic Initiatives Execution Gap process steps process a case by skipping required System Migration steps Operational Excellence Mergers & Acquisitions Approvals often slow down A case within the process Employees skip a mandatory Sample Root Cause Audit processes, because the needs to be manually sent to customer credit check to approver is not aware or not the next step in the process, close a sales deal faster. Conclusion focused on the approval in rather than being automat- their day-to-day. ically sent as soon as all requirements are met.

Alert approvers as soon as Send cases to the next Identify cases that are Action approval is needed and process step as soon as all of missing process steps and continue to send them the required action is taken freeze them in real time until reminders as long as the and all necessary informa- the mandatory action has approval is outstanding. tion is present. been taken.

Siemens saves over $10 million ADP achieved 400% growth in annually by eliminating rework automation and 70% reduction activities. in rework in the Global Payroll Process. The Big Book of Use Cases: 26 Celonis Execution Management System Mergers & Acquisitions Process Involved: Successful Mergers & Acquisitions (M&A) are all about value creation. But execution gaps occur when System Consolidation there are too many process deviations and opaqueness in how to merge existing and new processes. Departments involved: IT, Celonis helps you maximize value by improving process design and compliance to eliminate deviations, Center of Process Excellence promote user adoption, and ensure business continuity.

Introduction How Celonis helps Improved Process Design User Adoption Business Continuity Finance & Administration (Outcome) and Compliance Customer Operations Execution Capacity Percentage of users on Number of service desk Number of Process Deviations Supply & Distribution (KPI) new system tickets after go-live Products & Services Over time, old processes Moving to a new process Integrations and other Strategic Initiatives Execution Gap often accumulate waste and often involves employees processes break after a new System Migration inefficiencies. using a blend of existing and system or process goes live. new processes. Operational Excellence Mergers & Acquisitions A group of employees was Rather than asking ques- A critical integration between Sample Root Cause Audit not brought in during the tions when confused about the sales system and finance design phase. the new process, employees system breaks, so all of the Conclusion revert to what they are sales reps simultaneously file comfortable with doing. service desk tickets to get this resolved.

Objectively analyze existing Automatically inform Identify trends in service desk Action processes using Process employees when they are tickets and inform respon- Mining to ensure no gaps are going outside of the estab- sible parties to resolve the missed. lished process and recom- issue. Provide recommenda- mend the correct action in tions for similar process steps the new process. that may be vulnerable to the same type of issue.

The Big Book of Use Cases: 27 Celonis Execution Management System Audit Process Involved: An Internal Audit is a critical discipline to ensure compliance and process effectiveness. But execution gaps Internal Audit occur in incorrect monitoring, delays in reporting, and incomplete data. Celonis helps you improve audit Departments involved: Internal Audit, success by identifying process violations in real-time, providing proactive recommendations, and tracking General Accounting process conformance.

Introduction How Celonis helps Increase Compliance Prevent Risk Increase speed Finance & Administration (Outcome) Customer Operations Execution Capacity Number of material Number of violations against Turnover cycle of audit Supply & Distribution (KPI) weaknesses segregation of duties reports Products & Services

Reasonable possibility that a Segregation of duties is not Unnecessary delays between Strategic Initiatives Execution Gap material misstatement of the being practiced or enforced. process steps System Migration company’s financial state- ments will not be prevented Operational Excellence or detected on a timely basis. Mergers & Acquisitions

Audit A process is not being A single person creates and Too many stakeholders are Sample Root Cause executed according to the approves a transaction to involved in feedback circles Conclusion process description. expedite processing. that fail to deliver on time. Approvals often slow down processes.

Detect material weaknesses Automate workflows so that Alert approvers as soon as Action before external audit by segregation of duties are approval is needed and leveraging Process Mining. enforced at the system level. continue to send them reminders as long as the approval is outstanding.

The Big Book of Use Cases: 28 Celonis Execution Management System Introduction Finance & Administration Customer Operations Supply & Distribution Products & Services Strategic Initiatives Conclusion

Conclusion History has shown all of us that breakthroughs in processes lead to Whether you are looking to optimize customer experience, improve breakthroughs in execution. In other words, we know where we’ve supply & distribution management, drive productivity and quality been and where we want to go. assurance, remove constraints in your shared services departments, or prepare for a major event like a system migration or Now that you’ve made it to the end of the Big Book, we hope you see audit, Celonis can help you maximize your capacity to execute and the power of the Celonis Execution Management System and share achieve breakthrough results for your business … and beyond! in our vision that process improvement is not the end game — it’s the first step to maximizing execution across your entire company.

Learn More The Big Book of Use Cases: 29 Celonis Execution Management System celonis.com