Unlocking Shared Services Excellence: How Process Mining Transforms P2P, O2C, and R2R
In the relentless pursuit of efficiency, cost savings, and service excellence, Shared Service Centre (SSC) leaders are increasingly turning to data-driven strategies to drive transformation. Among these, process mining has emerged as a powerful enabler - offering unprecedented visibility, control, and actionable insights into end-to-end finance processes.
If you're leading a shared service operation and seeking to improve performance across Accounts Payable (P2P), Accounts Receivable (O2C), and Record to Report (R2R), process mining could be the breakthrough you’ve been waiting for.
What Is Process Mining?
Process mining uses event logs from your existing systems (ERP, workflow, etc.) to reconstruct the actual execution of processes. Unlike traditional process mapping, which is often subjective and static, process mining reveals what really happens—step-by-step, user-by-user, case-by-case.
Think of it as an MRI scan for your processes, revealing inefficiencies, bottlenecks, rework, and non-compliance you can’t see in dashboards alone.
The Finance Trifecta: P2P, O2C & R2R
1. Procure-to-Pay (P2P): Unclog the Payment Pipeline
P2P is often riddled with fragmented workflows, late payments, and manual workarounds. Process mining enables you to:
Identify root causes of late payments and duplicate invoices.
Spot maverick buying or purchases outside of approved catalogs and suppliers.
Measure touchless invoice processing rates and track automation potential.
Reduce cycle time and processing cost per invoice.
Outcome: Increase straight-through processing (STP), reduce supplier queries, and negotiate better payment terms through improved on-time performance.
2. Order-to-Cash (O2C): Accelerate Collections and Improve Working Capital
O2C is mission-critical for cash flow, yet often suffers from broken handoffs between sales, billing, and credit control. Process mining can help by:
Highlighting invoice disputes and delays in billing post-delivery.
Pinpointing credit risk hotspots and late payment trends by customer or region.
Uncovering manual interventions or rework that slow collections.
Linking root causes (e.g. incorrect master data, inconsistent pricing) directly to collection delays.
Outcome: Faster Days Sales Outstanding (DSO), improved customer experience, and better working capital management.
3. Record-to-Report (R2R): Streamline the Close and Ensure Compliance
R2R is a cornerstone of financial integrity, but period-end closes can be chaotic. Process mining offers:
Real-time visibility into the month-end close timeline and task ownership.
Early identification of bottlenecks in journal postings, reconciliations, and approval flows.
Compliance insights, revealing unapproved manual adjustments or segregation of duties violations.
Predictive insights to forecast close delays and resource requirements.
Outcome: Shorter, smoother close cycles; higher data integrity; and reduced audit risk.
Strategic Benefits for Shared Service Leaders
End-to-End Transparency: No more relying on anecdotal evidence. You’ll know exactly where delays, deviations, and rework occur.
Faster, Evidence-Based Decision Making: Use facts, not feelings, to prioritise automation and transformation efforts.
Elevated Performance Metrics: Benchmark internally across teams and externally against industry standards to track continuous improvement.
Stronger Compliance and Risk Management: Detect policy breaches and control failures before they escalate.
Cost Reduction Without Guesswork: Target headcount, automation, or policy changes where they’ll have the greatest ROI.
Getting Started
Launching a process mining initiative doesn’t require a big bang. Start small - perhaps with AP - then scale across P2P, O2C and R2R. Key steps include:
Select a mature process with available system data.
Extract event logs from your ERP and workflow tools.
Visualise the process and analyse performance.
Identify quick wins and long-term improvement levers.
Establish a continuous improvement loop.
Final Word
Shared service leaders are under pressure to do more with less while delivering consistently high-quality outcomes. Process mining offers a practical, data-driven route to make that ambition a reality - transforming visibility into action, inefficiency into opportunity, and complexity into clarity.
The message is simple: If you can't see it, you can't fix it. Process mining gives you the lens you need to lead with precision and confidence.
