The Process Mining Manifesto defines three broad types of process mining techniques:

1. Process discovery: Discovery techniques focus on extracting process models from event logs without requiring any additional information about the activity.
2. Process conformance: Where discovery creates process models from event log data, conformance techniques are used to monitor process deviations by comparing event log data against an existing process model. Conformance techniques can also be used on-the-fly to provide real-time warnings, predictions, and recommendations based on comparing the existing process model with event data related to running process instances.
3. Process enhancement: In this technique, the combination of an existing process model and actual process log data is leveraged not just to establish conformance but to actually reengineer, extend and update the existing process model.

Process mining can also be applied for variant analysis of multiple versions of the same business process. For instance, businesses can use this approach for a detailed analysis of the differences in the workflows underlying cases with a positive outcome and those with an unfavorable outcome to identify opportunities for optimization.

Process Mining in ERP Migration

A spate of high-profile ERP project failures has only served to emphasize the importance of extensive planning and risk management when it comes to ERP migration. Process mining technologies play a critical role in helping businesses identify and manage the execution and disruption risks of these complex transformation programs.

Process mining allows businesses to create a process efficiency baseline by using data from the existing system to identify optimal processes and best practices as well as highlight inefficiencies and limitations. These data-driven insights can help build a robust business case on the shortcomings that have to be addressed and on the new functionalities/capabilities that are required for ensuring optimal business outcomes. This baseline also serves as an objective benchmark against which to measure the performance of the new ERP system.

With process mining, companies can automatically discover as-is processes and gain real-time end-to-end visibility into all enterprise workflows together with detailed information about underlying workflows, deviations and resources involved. Importantly, the scope of discovery extends beyond a company’s ERP systems to include all critical processes across the entire enterprise stakeholder ecosystem. Advanced capabilities like business rule mining can automatically identify the logic that determines process behavior thereby making it easier to refine rules and ensure that they are perfectly aligned with business strategy.

Modern process mining solutions also enable businesses to model and simulate future-state processes in order to understand how even localized changes will impact system-wide performance and business outcomes. Organizations can experiment with thousands of what-if simulations to iterate towards an optimal should-be process model that can serve as the template for execution. The capability to simulate complex scenarios prior to the execution and to resolve any adverse outcomes significantly reduces the risk of post-migration disruption.

In the post-migration stage, process mining technologies can be used to monitor the performance of as-is processes in the new ERP system and compare them to should-be benchmarks to make incremental adjustments and maximize performance.

The process conformance functionality of process mining solutions can also be leveraged to train employees on the new system. By comparing actual process activities with ideal process activities, businesses can quickly identify the cause, frequency and cost of any deviations and address them in a timely and cost-effective manner.

Why is GST important?

It is important because it managed to bring India under one tax umbrella, which led to international confidence in Indian goods and services. It also made business incredibly easy to do within the country, as enterprises now had one common taxation scheme under which they could operate.

In this guide, we will discuss all the aspects of GST, including how you can register for it and how to calculate it. Let’s get started!

What is GST in India?

GST stands for Goods and Services Tax which came into effect on 1st July 2017. This is indirect taxation, which an end consumer usually pays.

GST replaced many other indirect taxes such as excise duty, VAT, service tax, entry tax and luxury tax.

In brief, this tax is levied on the supply of goods and services. It is calculated on the value added to any goods. Goods and Services Tax in India is a comprehensive, destination-based and multi-stage tax added on every value addition.

Let’s take a complete look into what these various terms mean, thereby understanding what GST is all about.

Comprehensive – GST covers every aspect of sale and purchase. It replaced various other taxes. It is called comprehensive because it encompasses every aspect of commercial life.

Destination-based – GST is levied in a state where the product is sold rather than the state where it was manufactured. For example, if these goods were produced in West Bengal and sold in Andhra Pradesh, the GST will be levied and collected in Andhra Pradesh.

Multi-stage – In the production of any goods or services, there are usually plenty of stages. These stages include the procurement of raw materials, production or manufacture, warehousing, selling to wholesalers, retailers and finally, the end consumers. At every stage, GST is levied. This makes it a multi-valued tax.

Value addition – Let’s take an example of textile production. First, raw materials such as cotton or silk are taken and made into cloth. This increases the value of the raw materials. Then the fabric is designed into clothes which further enhances their value. After the dresses are made, they are branded and sold to retailers who advertise and market them, thereby increasing their value. GST is levied on each of these stages where value is added to the product.

With this understanding of what is GST tax, you can go on to understand different types of GST.

What are the types of GST in India?

There is a four-fold break-up of goods and services tax in India. It oversees the levy of tax for central government GST, GST for states, union territories, and the integrated goods and services tax. You can check out the details of these below.

Central Goods and Services Tax – The central government levies a CGST on goods and services transactions. It is levied along with the State Goods and Services Tax and the Union Territory Goods and Services Tax. These are shared between the state and centre. For example, if you are a Mumbai-based trader selling to another Mumbai-based trader for an amount of Rs.50,000 with a GST calculated at 18%, then 9% will go to the state’s coffers, and the other 9% will go to the central government’s coffers.

State Goods and Services Tax – SGST or State Goods and Services Tax is calculated for intrastate goods and services transactions. The State Government keeps all of this tax that is levied. This tax replaces the other previous taxes such as VAT, octroi, luxury, entertainment and purchase tax.

Integrated Goods and Services Tax – Integrated Goods and Services Tax is the tax that is levied on service transactions and inter-state goods. It applies to exports and imports too. Both the state and the center take their respective shares of the tax. SGST part of the tax goes to that state where the goods or services are consumed.

Union Territory Goods and Services Tax – Union Territory Goods and Services Tax is the same as State Goods and Services Tax except that it is levied in the Union Territories of the country rather than the states. So expect to pay this tax in Pondicherry, Daman and Diu, etc.

The software or robot can be taught a workflow with multiple steps and applications, such as taking received forms, sending a receipt message, checking the form for completeness, filing the form in a folder, and updating a spreadsheet with the name of the form, the date filed, and so on. RPA software is designed to reduce the burden for employees of completing repetitive, simple tasks.

KEY TAKEAWAYS

• Robotic process automation (RPA) refers to software that can be easily programmed to do basic, repetitive tasks across applications.
• RPA creates and deploys a software robot with the ability to launch and operate other software.
  Designed primarily for office-type functions, RPA works like a digital assistant, doing routine onerous tasks that would otherwise eat up employees’ time.
• RPA today is found across a range of industries and applications.
• RPA without human oversight, however, can lead to problems, as was the case with mortgage “robo-signers.”

Electronic invoicing or e-invoicing in India is a process through which B2B invoices are digitally uploaded to a portal where authentication occurs by the GSTN or the Goods and Services Tax Network. For every e-invoice generated, an IRN or Invoice Reference Number is generated along with a unique QR code. The reason behind the introduction of e-invoicing is to ensure a common format is used across all Indian businesses across different industries so that interoperability becomes simpler. It also ensures compliance from all businesses.

The government of India first shared an e-invoice in August 2019. It was then changed eventually as per the GST Council regulations. Rather than introduce e-invoicing across all businesses, the GST Council of India introduced e-invoicing in three phases. First, e-invoice was introduced and applicable to businesses with a turnover of Rs. 500 crores or more from 1st October 2020. Second, e-invoicing was introduced to businesses with a turnover of Rs. 100 crores or more from 1st January 2021. In the third phase, e-invoicing was introduced to businesses with a turnover of Rs. 50 crores and more from 1st April 2021.

7 benefits of e-invoicing

The post-pandemic business world is different from what it was pre-pandemic. With a higher adoption of digital methods, e-invoicing is proving to be highly beneficial for everyone involved. The benefits of e-invoicing are as follows.

Saves time

e-Invoicing saves time which is a major benefit for all businesses. e-Invoicing is a completely digital process and it takes only some minutes to generate an e-invoice. Earlier, traditional invoices required a lot of time to generate and upload the invoice details to the government portal for return filing purposes. e-Invoicing has reduced the time required to process, track, send, and approve invoices. It has thereby improved productivity because employees can spend their time focusing on other aspects of the business that require attention. With e-invoicing, payments are made at a faster rate and information aggregation can be done without any problems.

Higher accuracy

Better accuracy and reduction of human errors are some of the benefits of e-invoicing. As you are not required to enter any data manually, there is little room for error. The information is taken from the e-invoices directly and as the billing systems also maintain the information, it further ensures no errors are made during e-invoicing. This will allow for better transparency which is another benefit due to the high accuracy of e-invoicing. The communication between buyers and vendors will also be better and time will be saved in the process as a result because of no errors in the e-invoices.

Cost-effective

e-Invoicing is more cost-effective for businesses when compared to the traditional form of invoicing and reporting. Everything takes place digitally which allows for higher cost-saving for every business. This is also beneficial from an energy point of view as e-invoicing is energy-efficient compared to the paper invoicing process.

Ease of financial operation

Ease of financial operation is one of the benefits of e-invoicing. Prior to the introduction of e-invoicing, the financial operation wasn’t as simple or straightforward as it has become now specifically for MSMEs. As these businesses often have a higher workload and they need to balance multiple business components, e-invoicing gives relief as it ensures the admin work doesn’t take as much time. Traditional invoicing required a lot of work and effort but e-invoicing isn’t as complicated. A good software solution such as TallyPrime has made it easier for businesses to generate e-invoices in minutes.

Data security

e-Invoicing ensures data security which is one of the main reasons why it is a boon to businesses. Earlier, invoices were not secure and there was a higher chance of tax leakage as well as fraud taking place. Some businesses were involved in malpractices whereby they used fake invoices. Thanks to the introduction of e-invoicing, the probability of fraud has decreased drastically because there is no way that a fake invoice can be generated and submitted. All invoices that are electronically generated are authenticated which ensures data security and credibility of those invoices.

Increases productivity

e-Invoicing can enhance productivity in MSMEs. Invoicing used to be a time-consuming and tedious task that required hours of time and attention. Additionally, if an error was found or if there was a discrepancy due to human error, the problem had to be rectified and the invoice had to be printed once again. With the introduction of e-invoicing, there is no need for such effort because e-invoicing takes less time and it allows employees to focus on other things. They now have more time at hand which will allow them to spend it on more productive ventures.

Tracking

e-Invoicing is beneficial for the post-pandemic business world because it makes tracking much simpler and convenient. It also gives you more control because all the details entered in the e-invoice are automatically saved and you get access to it all whenever the need arises. E-invoicing makes it efficient for businesses to understand whether their business is going in the direction they want it to go on. With the help of good e-invoicing software such as TallyPrime, you know in detail whether your business is doing well or not.

Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.

It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with, customers.  As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to reimagine how we do business — how we engage our customers — with digital technology on our side.

For small businesses just getting started, there’s no need to set up your business processes and transform them later. You can future-proof your organisation from the word go. Building a 21st-century business on stickies and handwritten ledgers just isn’t sustainable. Thinking, planning, and building digitally sets you up to be agile, flexible, and ready to grow.

As they embark on digital transformation, many companies are taking a step back to ask whether they are really doing the right things. Read on for answers.

Digitalisation is using digital data to simplify how you work.

The process of using digitised information to make established ways of working simpler and more efficient is called digitalisation. Note the word established in that definition: Digitalisation isn’t about changing how you do business, or creating new types of businesses. It’s about keeping on keeping on, but faster and better now that your data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive.

Think of customer service, whether in retail, field ops, or a call center. Digitalisation changed service forever by making customer records easily and quickly retrievable via computer. The basic methodology of customer service didn’t change, but the process of fielding an inquiry, looking up the relevant data, and offering a resolution became much more efficient when searching paper ledgers was replaced by entering a few keystrokes on a computer screen or mobile device.

As digital technology evolved, people started generating ideas for using business technology in new ways, and not just to do the old things faster. This is when the idea of digital transformation began to take shape. With new technologies, new things — and new ways of doing them — were suddenly possible.