Oklahoma Implements Process Intelligence for Financial Transparency

Oklahoma Implements Process Intelligence for Financial Transparency

Starting in April 2023, the State of Oklahoma made history by becoming the first U.S. state to apply process intelligence (PI) technology for purchasing oversight, following an audit that revealed $3 billion in uncontrolled spending. Janet Morrow, director of the Risk, Assessment, and Compliance Division, led the initiative to track monthly transactions in disconnected systems.

The use of the Celonis platform resulted in immediate transformations. Multi-year audits were replaced by real-time monitoring, identifying over $10 million in inappropriate spending and allowing the supervisory team to be reduced from 13 to 5 members, increasing efficiency.

Global "Process to Progress" Movement

Oklahoma's success highlights an emerging global trend. During the Celosphere conference, over 3,000 leaders discussed how the combination of artificial intelligence (AI) and PI can provide commercial, environmental, and financial returns. The goal is to transform PI into a foundation for public and social progress.

The fusion of AI and PI, as demonstrated in Oklahoma, helps governments improve services more economically, with more informed decisions. Institutions in various areas, such as health and juvenile justice, are adopting this approach to enhance the effectiveness of public services.

Aubrey Vaughan, Vice President of Public Sector Strategy at Celonis, notes that real process improvement has always been sought after. He recalls an event at Congress where he discovered $10 billion in improper payments, which triggered uncomfortable questions about the causes. Now, with PI, agencies can understand both the causes and the solutions.

Oklahoma's Experience with Real-Time Analysis

Within 60 days of implementation, Celonis analyzed $29.4 billion in purchase orders, identifying $8.48 billion in exempt purchases and flagging problematic transactions. The system provides real-time feedback to buyers, allowing immediate corrections.

Additionally, real-time analysis increased accountability by clarifying spending patterns. Oklahoma implemented Celonis's Copilot feature, which uses conversational AI to provide quick answers to questions about contracts.

Texas: Uncovering Issues in Juvenile Justice

In Texas, Erin Espinosa of Evident Change analyzed 400,000 data points from juvenile justice and public health systems, finding that mental health treatment received by young offenders was a stronger predictor of incarceration than the severity of the offense. The partnership with Monica Chiarini Tremblay showcased, through PI, how a fragmented mental health system contributed to undesirable outcomes.

Challenges in the U.S. Department of Defense Budget

The U.S. Department of Defense faces significant financial challenges, and under the leadership of Robert Speer, the incorporation of PI has been revolutionary. In a $1 trillion budget for fiscal year 2026, the need for dynamic systems became evident.

Recently, Celonis received FedRAMP authorization, allowing it to operate services in federal cloud environments. This step positions its technology as the backbone of compliance for the next generation of government cloud services.

The Future of Process Intelligence in the Public Sector

Early adopters of PI are demonstrating the technology's potential, which encompasses significant savings and uncovers factors influencing social issues. This technology is also vital in areas such as climate response, education, and emergency services.

According to Andy Hardy from NHS Trust, data analysis is crucial for delivering effective care. Celonis continues to evolve, introducing new features that optimize processes in organizations.

However, success requires more than software. Continuous investment in education and cultural change within organizations is necessary to effect improvements. The desire to build more efficient systems must become a priority.