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Process simulation simply explained

Lari Numminen

March 16, 2023

Process simulation is an increasingly popular area in business process management and advanced process intelligence.

In this article we go through key definitions, examples and best practices every operations leader needs to know.

what is process simulation

What is process simulation?

Process simulation is a method of analyzing and improving business processes using computer-based forecasting models. Process simulation allows businesses to explore “what if” scenarios, analyze the impact of changes to processes, and identify opportunities for improvement.

What is the goal of process simulation?

The goal of process simulation in business operations is to achieve a higher level of process efficiency, which ultimately leads to increased profitability and competitive advantage.

Process simulation is a powerful tool in process optimization because it is able to imitate different scenarios without disrupting existing operations. By creating a digital twin of a process, the simulation can be used to iterate and improve processes and adjusted to see what works best. This allows businesses to identify potential problems and opportunities for improvement before implementing them in the real world.

How process simulation software works

Process simulation software uses computer algorithms and data science to first create a digital model of a business process and then forecast how the digital model would react in different kinds of process scenarios.

process simulation visualization
Visualization of a simulation and model. Source: Danski14 / wikipedia

By simulating different scenarios, businesses can identify bottlenecks in their processes and make changes to reduce them. This can be used to train employees on how to best use existing systems or to re-engineer new processes.  

Process simulation can also be used to create a digital process twin of an organization (DTO) that mimics an entire business organization in the real world.

Why is process simulation important

Process simulation helps identify areas of improvement in an organization’s processes and can be used to develop better strategies for advancing process excellence.

Process simulation can also be used to identify potential risks associated with new initiatives and to optimize existing operations as part of a process analysis project. By taking the time to thoroughly analyze and simulate processes, businesses can make better decisions and improve profitability.

Written by

Lari Numminen

Chief Marketing Fellow