Exclusive: How Celonis is transforming business efficiency with process mining

Celonis is driving a new wave of business process optimisation through its innovative use of process mining and intelligence.

Dr Lars Reinkemeyer, Chief Evangelist at Celonis, revealed during an interview that the company's key to success is to focus on bridging data gaps and creating a solid foundation for artificial intelligence (AI) to enhance process efficiency across industries.

"Right now, it's a step-by-step approach," Dr Reinkemeyer explained when discussing the evolution of AI in business.

He drew a parallel to the incremental progress of autonomous driving technology, highlighting that while there was a surge of excitement around generative AI like ChatGPT, the practical, impactful use cases in business are only beginning to emerge.

AI's true potential in process improvement, according to Dr Reinkemeyer, hinges on comprehensive data foundations. Celonis addresses this through its Process Intelligence Graph, a robust data backbone integrating process data, event logs, and process connotations. "Having one data backbone where you have all the information for a customer order, which translates into a manufacturing order, triggers purchase orders, and connects to shipment orders, creates end-to-end transparency," he said.

This transparency is crucial for companies such as Pfizer and BMW, long-time Celonis customers that have reaped significant financial benefits from the technology.

"They have realised triple-digit millions of value," Dr Reinkemeyer noted. He added that such results are only possible when businesses maintain a strong data foundation.

However, challenges remain in the quest for AI accuracy and reliability. Dr Reinkemeyer acknowledged that while the technology can handle prepared processes with a reliable degree of intelligence, the true leap will come when AI can autonomously predict and act on complex scenarios. He said, "AI can only be as intelligent as the data available. The challenge is making autonomous analysis intelligent and dependable."

One of the most significant developments in Celonis's strategy is the "Process Intelligence Graph," colloquially known as "the pig." Dr Reinkemeyer elaborated, "Our slogan is 'feed the pig,' because the more data you have in this backbone, the more intelligent it becomes."

By unifying data across procurement, finance, and supply chains into a single source, companies gain consistent answers that aid decision-making across departments.

The journey from data transparency to tangible action is fundamental to Celonis's mission. Dr Reinkemeyer likened this process to an X-ray: "You first discover inefficiencies, but the crucial step is taking targeted action to cure the problem. Insight without action is worthless," he said.

A notable example of this in action is Celonis's collaboration with Siemens. Dr Reinkemeyer's personal connection to Siemens dates back to his early career, and he recounted their journey from analysing individual logistical steps to mapping complex global supply chains.

"In 2018, we established transparency across 30 million items shipped annually," he said. This initiative evolved into a resilient, alert-driven supply chain that helps Siemens anticipate disruptions and maintain customer delivery commitments. "It's an incredible evolution, building a full global supply chain with transparency," he added.

The COVID-19 pandemic further underscored the need for robust supply chain solutions. "Supply chain has become a huge issue," Dr Reinkemeyer remarked. He emphasised that inefficiencies and manual rework impact not only customer satisfaction but also working capital. Celonis's technology addresses these challenges by detecting delays and inefficiencies, allowing companies to take proactive measures.

Feedback from customers often starts with astonishment at newfound transparency. "The first reaction is always, 'Wow, I wasn't aware that my process had so many variants and inefficiencies,'" Dr Reinkemeyer said. But beyond the initial insight, he stressed the importance of realising value through action. "Value is the name of the game. Insight must lead to action to deliver results," he added.

Ensuring reliable AI is a central focus for Celonis. "We don't overpromise," Dr Reinkemeyer said, emphasising that the technology excels within defined process scopes supported by sufficient data. Celonis's open ecosystem allows customers like Pfizer and BMW to build upon their AI advancements and adapt them to their specific needs.

The vision of near-total AI assistance is already becoming a reality in areas like procurement.

"Deutsche Telekom, for example, has achieved 95% automation in standard purchase orders," Dr Reinkemeyer shared. While some may find this shift daunting, he believes it is a natural progression. "No one enjoys processing 100 purchase orders a day. AI will allow people to focus on more meaningful work," he said.

This evolution is essential not only for efficiency but also for regions facing demographic challenges, such as Japan, where an ageing population necessitates productivity gains.

"Having 95% of purchase orders automated is a welcome development there," Dr Reinkemeyer explained.

Real-world applications of AI-driven process management are already showcasing tangible benefits. Dr Reinkemeyer highlighted Smurfit Kappa's use of Celonis to manage inventory across locations.

"Their AI system detected material availability at a different plant, enabling them to ship and meet manufacturing deadlines," he said. This type of cross-location intelligence is just the beginning of what Dr Reinkemeyer envisions as a future where AI acts as an indispensable co-pilot in business operations.

"The ultimate goal is to make support processes highly efficient—95 to 98% automated—so companies can focus on their core business," Dr Reinkemeyer explained.

"At the end of the day, our mission is to help them realise value, and that's what we're passionate about."