BVA Exam

Roles held outside of CoE

Executive sponsor, process owner, business owner

Adoption Metrics

Monthly Active Users -> The number of unique monthly active users of Celonis Daily Active Users -> The average number of unique daily active users of Celonis over a set timeframe Stickiness -> A measure of how operational Celonis is at the organization. It is the measure of how many monthly users use it on a daily basis Monthly Retention -> How many users who used Celonis last month used it this month

Implement (governance activity)

Occurs after intake, activities include: Creating a project plan, Assigning delivery team resources, data and security approvals, Requirements gathering and process scoping, etc.

Bottom Up Model

The end users generate the demand and priorities and push up these requirements to the governing body.

Intake (governance activity)

The intake process will govern Celonis being rolled out to support new processes within the organization, enabling new user groups, and the addition of Data Models. To support the core Celonis efforts, we should consider governance of intake activities.

Analyst User Role

Use Celonis to translate data into actionable insights and pitch findings to the management. With the business, you create and refine target-oriented analyses to identify and qualify opportunities and analyze potential root causes. Your findings trigger larger process improvement initiatives leading up to the realization of the value identified with Celonis.

LFA1

Vendor Master (General) Table

Working Capital

Working capital is the difference between a company's current assets, such as cash, accounts receivable and inventory, and its current liabilities, such as accounts payable. Optimizing the working capital is important for two reasons. First, it makes it easier to scale without raising costs. Second, capital that is no longer tied in the process can be invested elsewhere.

BVA User Role

You identify improvement opportunities, quantify impacts, and drive KPI progress to realize value. Moreover, you foster change initiatives within the organization, develop a Governance Structure, and create an Operating Model to maximize the usage of Celonis to accomplish organizational goals.

The Celonis Playbook is developed to:

1) Define the vision and purpose for Celonis. 2) Raise awareness on how Celonis will be governed, including structure, roles, and responsibilities. 3) Define the decision-making process for license decisions, new process implementations, and enhancement requests. 4) Create alignment on how the governance structure will participate in the execution and monitoring of Celonis projects across the business. 5) Explain the persons of contact and central sites where knowledge is stored and shared.

Purpose of User Mapping Document:

1) Determine which target user groups are in scope based on the use cases developed in Celonis 2) Translate named individuals into end users 3) Group the named users into the target user groups 4) Assign the use cases built in Celonis to the appropriate target user groups 5) Forecast how each target user group and an individual user may use Celonis based on these inputs

Critical CoE Success Factors

1) Identify and secure executive sponsorship to define goals, success criteria and stakeholders 2) Implement the defined governance structure for decision making 3) Define the target operating model for your center of excellence across various businesses 4) Create a constant improvement circle to frame, realize and sustain

Key principles of scaling the operating model:

1) Stable and repeatable processes 2) CoE dedicated support 3) Sufficient documentation of your operating processes

By the end of reading a Celonis Playbook, your stakeholders should:

1) Understand the role of the Celonis governing body and how it interacts with its stakeholders 2) Understand the key roles, steps, and artifacts used to execute Celonis projects

Steps for a Communication Plan

1. Build Communication Plan 2. Choose a Communication Channel 3. Select a Communicator 4. Set the Timing

Four Main Transformation Categories

1. Celonis Enabled Enhancements 2. Employee Behavior-Related Changes 3. Organization Process Improvement 4. IT Systems Modifications

When presenting the business case make sure to stress that:

1. Improvement opportunities are based on actual process data 2. SMEs of the company provided any additional assumptions 3. Realization potential of every item is validated with business stakeholders

Impact Effort Matrix

4 categories: quick wins, long term-projects, nice-to-have, no-go's

Cross-KPI Analysis

A cross-KPI analysis can be insightful, meaning that you look at the correlation between high or low performing KPIs.

You can calculate the business impact of maverick buying by multiplying:

Affected purchase order volume, % discount potential when purchasing department involved, realization potential = Dollar Value of the saved purchasing spend when realizing potential

Operate (governance activity)

After Go-Live we move into an operating status which includes: Support for general inquiries and questions around how to use Celonis, Break-fix and general maintenance, Upkeep of the analyses and Data Models

Benchmarking

An additional tool to uncover improvement opportunities in the process. Allows you to compare entities, like plants, sales orgs and customers in terms of relevant KPIs and process patterns. Can discover where an organization performs at its best, if working well in one plant or org, transfer best practices to other parts of the org. Can identify low performing parts of the org. and identify what needs to be enhanced.

Implementation Professional User Role

An expert in all core Celonis products. By connecting Celonis to various source systems and setting up customized Instruments and Execution Apps, you are the driving force behind successful implementations with customers. Consequently, it's you who lays the foundation to frame and realize business value.

All Success Stories should include the following:

Background Information: What problem was the company facing? Mention the relevant context around why the initiative was important. Friction Points: What did the company identify as the root causes, drivers, and most significant contributors to the problem? Actions: What actions were taken to improve the process and resolve the friction points? How will the solution be sustained in the future? Value Realized: What was the impact on the process? Think about dollars saved, increased on-time delivery, DPO, etc.

Analyses & Dashboards

Can help enhance the process. Provides insight and allows to make best possible operational decisions. Can create a supplier scorecard.

Roles held inside of CoE

Celonis Champion/CoE Lead, BVA, Analyst, Data Engineer, Business User/Business SME

Business User User Role

Celonis helps you get the day-to-day work done faster and more efficiently. Through Celonis, you get proactive insights to identify process improvement opportunities right off the start and prevent firefighting. A better understanding of individual cases and monitoring the process performance allows you to build business cases and act on prioritized opportunities. Consequently, you can solve causes for undesired process deviations and ultimately realize the value identified with Celonis.

Confirmatory Approach

Confirmatory Data Analysis is the part where you evaluate your evidence using traditional statistical tools such as significance, inference, and confidence.

Top Down Model

Decisions are made by the governing body and pushed down to the stakeholders and end users.

Realize Value Phase

Determine Improvement Actions, Ensure Execution (continuously)

Attribute-Related Improvement Opportunities

Discover improvement potential by analyzing specific characteristics

Automation-Related Improvement Opportunities

Discover potential for higher process automation

Sequence-Related Improvement Opportunities

Discover process steps are executed in the wrong order

Process Step-Related Improvement Opportunities

Discover undesired, missing and repeated steps

Throughput Time-Related Improvement Opportunities

Discover where throughput time between process steps is too long or too short

Duplicate Payments

Duplicate payments are unnecessary spending that occurs because of duplicate invoices in the system. Most ERP systems only detect 100% matching invoices, but typos, scanning errors and inaccurate master data cause small differences in documents that stay undetected. Because of this, companies lose significant amounts of cash from paying invoices twice.

Ways to Track Adoption

EMS -> This allows us to track the adoption metrics previously mentioned that get updated routinely. Training Platform -> This provides the ability to track users' progress in training completed in the Celonis Academy Training Platform.

Drive Value (governance activity)

Equally as important as adoption are the activities associated with business value which follow the Path to Value framework: Opportunity identification Qualification, root cause analysis, Business case building, Opportunity prioritization, etc.

BVA Framework (path to value)

Frame - Realize - Sustain

Governance

Governance refers to the mechanisms used to manage Celonis initiatives with its key stakeholders, such as functions, business units, regions, and shared services. A Governance Structure supports the delivery and evolution of the Celonis initiatives to meet the expectations of its stakeholders. Effective governance is incredibly important as Process Mining requires significant business process and technology coordination across a large number of stakeholders

Frame Value Phase

Identify Opportunity, Qualify Opportunity, Analyze Root Cases, Build Business Case, Prioritize Opportunities

User Enablement

Identify the potential end users and build a view of what the user landscape looks like. This step is crucial to ensure users who will benefit from Celonis are not left behind in the process. The sooner a user is enabled to utilize Celonis the faster they can leverage it for insights and actions to improve processes

Hybrid Model

In many cases, there is some mix and matching between these two models. For the purpose of this learning course, let's choose a Hybrid Model: We will gather support and sponsorship from top management within the organization for the definition of the processes and KPIs of priority. We will gather demand and requirements from the business.

Lack of governance structure leads to:

Increased risks of limited adoption and awareness of Celonis Difficulty in driving decisions Unclear responsibilities and accountability

Event Log

Independent of the process you analyze, all the information regarding digital footprints is always stored in the activity tables

Communication Plan Components

Initial Stakeholder Communication, Follow-Up Communication, Pre-Training Communication, Post-Training Communication

Governance activities

Intake, Implement, Operate, Adopt, and Drive Value

CoE Benefits:

Integrating teams and responsibilities and encouraging an adaptive working mode Focusing on efficient use of resources to drive value Continuous use of trained team members to drive expertise and consistency into results Empowering the team to be forward-thinking and transformative in their actions

Business Impact Categories

Labor Productivity & Automation, Revenue, Expenses, Financial Performance, Risk & Compliance, Sustainability

Sustain Value Phase

Monitor Value Realization (by tracking KPIs), and Report to Management

User Mapping should include the following:

Name -> add the name of the respective person. After you have entered all the following information, you get a clear picture of each person and the user mapping Title -> Title of the Celonis user so we can map to a certain persona and understand their role within Celonis Key Role -> Utilizing the titles, we need to assign personas to the individuals. This will help identify the training needs of each unique user. Customer Team & Use Case Focus -> Identifying the team that each user is on and the overall use case focuses within that team. This aides us in grouping users together in the training required Celonis Usage -> Understanding the potential usage of the users also helps in determining the scope and type of training to enable users to successfully use Celonis for their role Celonis Academy Training Profile -> Based on the Celonis user persona, each user will have a celonis academy training profile that will help determine the training needed to be successful in the adoption of Celonis. The celonis academy training profiles consist of the training tracks that teach learners about Celonis functionality. Overall Roll-Out Approach -> All of the above attributes determine the roll-out strategy from what training is required, enablement workshops to conduct and also shapes the how/when/where of the overall rollout approach strategy Function -> In the mapping document, we also lay out the different functions within the overall process. For example, let's examine the O2C process. We have identified six "functions" within the O2C process

How to create an environment supporting adoption?

Office hours, Q&A sessions, hypercare, lunch & learn, hack days, etc.

Adoption keys to success

Operating model, governance structure, and user enablement

Success factors for driving adoption

Operational readiness, structures to support, and daily average usage

Governance provides the following:

Oversight, control and quality resulting in improved processes and results Systematic communication generating accountability Effective decision making through clear roles, responsibilities, ownership and communication Continuous improvement of the functions through leading practices and knowledge sharing

An action plan contains the following:

Owner of the activity Task to complete Description of task Stakeholder(s) involved Assigned date Due date Status of task

Core Processes

P2P, AP, O2C, AR

Before starting user mapping, we must first:

Prioritize the potential use cases within the process, Identify the users, Assign users to user roles for the particular use case

Root causes are structured in 3 categories:

Process-Based -> process inefficiencies that occur because of unwanted activities or upstream process deviations. Time-Based -> include deviations for which we must analyze the development over time. Attribute-Based -> include inefficiencies tracing back to specific attributes such as the sales organization or customer in the O2C process.

PU functions

Pull-up functions. Flexible set of PQL functions, more complex than normal PQL and allow you to aggregate a column based on another table. You can define the child-table to which the parent-tables entries are pulled, and you can explicitly define on which basis calculations are executed.

EKKO

Purchasing Document Header Table

EKPO

Purchasing Document Item Table

Labor Productivity & Automation (Business Impact Category)

Quantify the saved labor costs for reduced manual effort, rework, and higher automation and EDI usage

2 key metrics to track for monitoring success (in sustain value phase)

Realized Value, and ROI

Functional Power User

Selecting individuals to become function power users could be Process SMEs that have

Regional Power User

Selecting individuals to become regional power users would enable users on a more individual level as they would be located in similar areas.

A well-functioning Operating Model ensures that:

Stakeholders are always working on the right tasks, Stakeholders are following repeatable processes, Stakeholders are consistently realizing value

CoE Supports in:

Steering the use of Celonis to align with company priorities and objectives Ensuring an efficient and scalable use of resources Providing access to expertise, training and best practices

Effective operating model meetings:

Steering, initiative leadership, program management, user best practices forums, advocacy and promotion, etc.

Steps to Create a Success Story

Step 1) KPI Meeting -> Meet with KPI owners to review the progress you made thus far in the business process improvement initiative. Work with them to determine which KPIs to share and how to best showcase the value realized. Step 2) Story Shell -> Create a draft success story shell that includes the value realized and high-level KPI improvements. Step 3) Process Insights -> Meet with the project team members responsible for carrying out the initiative to hear first hand the actions taken and the context of how they made the initiative a success. Typically, they can shed light on some of the pivotal insights necessary to complete the storyline. Step 4) Executive Quotes -> Gather a quote or two from executives or a project sponsor that describes the impact made through Celonis and what it meant to the organization. Step 5) Management Presentation -> Present the success story to management and determine where the success story can be shared. For example, is there a specific forum? Encourage customers to share their success stories through email blast, newsletter, Intranet, or video presentation.

Conformance Check

Step 1) Should-Be Process -> The "Conformance Check" allows you to design, mine or upload a "should-be" process flow, and automatically compares it to the "as-is" process discovered in the data. Step 2) Deviations -> Subsequently, you will get an overview of all deviations from the "should-be" process flow. When going through the list of deviations you can identify process improvement opportunities of the categories "Process Step" and "Sequence". Step 3) Automated Root Cause Analysis -> Furthermore, the Conformance Check also allows for an automated root cause analysis which will be a subsequent step in our journey.

Key Factors for Qualifying an Opportunity

Strategic Fit - The measurement factor here is quite qualitative, but nonetheless, very important. We must determine if this opportunity is in alignment with the strategic objectives of the organization. If there is misalignment, the opportunity is likely not worthy of pursuit. Business Impact - Another crucial factor is the business impact. This factor is much more quantitative in nature. Opportunities that have a high business impact should heavily influence qualification. Feasibility - refers to the capability for the opportunity to be carried out and realized. In other words, can we actually solve this problem?

Lost Cash Discount

Suppliers will sometimes offer cash discounts to encourage invoices being paid earlier than their due date. Making use of the cash discount will significantly reduce expenses for a company. Cash discounts primarily exist in industries like manufacturing that supply raw materials and component goods. Companies sometimes leave money on the table because they are unable to realize and capture all the cash discounts available to them.

When analyzing feasibility you should consider:

Technical feasibility - How can a solution be created, installed, or purchased systematically and technically? Operational feasibility - Is this a solution that can be operationalized and utilized by the stakeholders? Schedule feasibility - Can the opportunity be pursued within a reasonable timeframe?

Adopt (governance activity)

The adoption activities include: End user identification Training and enablement, Promotion and awareness, Adoption tracking and support, Monitoring of the Operating Model deployed for each implementation

Exploratory Approach

There are several important things to do at this stage, but it boils down to this: figuring out what to make of the data, establishing the questions you want to ask and how you're going to frame them, and coming up with the best way to present and manipulate the data you have to draw out those important insights.

Power User can establish several activities:

Transformation Space -> Presentations of new uses cases and enablement sessions to identify further areas of value within the organization. Celonis Task Force -> An interfunction task force within the organization to help guide use case implementation and user adoption. Weekly Celonis Touchpoints -> Weekly connection across Celonis users to discuss new learnings, use cases or outstanding questions. Other Activities -> Other activities to further expand the users and potential use cases within the company.

Components in a Celonis playbook

Value statement: Purpose, objectives and intentions of the Celonis Governance team Governance Structure: Roles, responsibilities, named people Accountability Matrix: Who does what in the Celonis lifecycle from intake to implement to operate Decision-Making Process: Criteria for evaluating and process to make decisions Knowledge Center: Where tools, templates and artifacts are kept

Categories of PQL functions

aggregations, data flow functions, date and time functions, process index functions, window functions, math functions, predicates and logical operators, process functions, and string modification

Digital footprints

always contain 3 sets of information: information about process steps or activities conducted, information about the points in time which the activities were carried out, and information about the object or ID for which the activities have been executed

Centralized

central knowledge, single point of expertise. Centralized development of best practices.

Transformation Center

gives you the ability to monitor Key Performance Indicators (KPIs) and provide automated summaries to Executives or other stakeholders.

ROI (return on investment)

is focused on profitability and compares the gain or loss of an investment minus the cost

Celonis Action Engine

offers intelligent recommendations to support day to day actions

Process Automation

once you have sensed friction and identified root causes, can try and resolve it before it negatively impacts outcomes

Operational Apps

optimizing how businesses run for outcomes that matter most

PQL

process query language

Sustainability (Business Impact Category)

quantify effects of more sustainable process execution like reduced waste or carbon footprint

Risk & Compliance (Business Impact Category)

quantify effects of non conformant behavior that lead to risks like penalty fees and compensation payments

Expenses (Business Impact Category)

quantify process specific expenses (i.e. express shipment costs, extra equipment usage, storage costs, employee overtime, etc.)

Revenue (Business Impact Category)

quantify the loss of revenue or opportunity to increase revenue

Financial Performance (Business Impact Category)

quantify the working capital impact of early or late payments, cash discount realization, duplicate payments and other financial performance metrics

Operating Model

serves as a bridge that connects Celonis' strategy and governance to execution and value. This is done through three main pillars: 1. Organization -> which refers to the responsibilities each function and stakeholder will need to own. 2. Structure -> that involves the process and procedures necessary to support the Celonis Governance Model. 3. Technology -> which describes how you can equip your organization with the right tools to execute a value add Operating Model.

Throughput time calculations

shows time between first and last activity in a process

User Adoption

the process of ensuring each user is enabled to successfully utilize Celonis to achieve their business objectives.

Realized Value

this is about measuring the value that has been created through process improvements

Decentralized

visible, easily approachable. Fast decision making and support. Quick feedback loops. Process expert = data engineer.

Maverick Buying

when goods are being purchased without involving the purchasing department. (Purchasing items without an approved PO)

Action Plan

will establish accountability and outline the tasks that need to be completed to achieve the desired value realization.

Solution Professional User Role

your main goal is the targeted proof of Celonis' value to the customer. During the proof, you deliver how Celonis contributes to the customers' strategic goals by enabling them to realize business value, reduce risks, and be compliant with complex regulations.