Is it better for Celonis to focus on expanding our process mining capabilities or diversifying into adjacent areas like task mining?

Introduction

The trade-off we're examining today is whether Celonis should focus on expanding our process mining capabilities or diversify into adjacent areas like task mining. This decision is crucial for our product strategy and future growth. I'll analyze this trade-off by considering our current market position, user needs, technical feasibility, and potential business impact.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Celonis is currently a leader in process mining. Could you confirm our market position and share of wallet with key customers?

Why it matters: Helps assess the risk of diversification vs. doubling down on our core strength. Expected answer: Market leader with 30-40% share of wallet in enterprise accounts. Impact on approach: Strong position might favor expanding process mining capabilities.

• Business Context: What's driving this consideration? Are we seeing a slowdown in process mining growth or new market opportunities in task mining?

Why it matters: Clarifies if this is a defensive or offensive strategy. Expected answer: Combination of maturing process mining market and emerging task mining opportunities. Impact on approach: Balanced strategy might be needed to maintain growth and explore new areas.

• User Impact: How do our enterprise customers view the relationship between process and task mining? Are they asking for integrated solutions?

Why it matters: Indicates potential synergies and customer demand for diversification. Expected answer: Growing interest in combining process and task insights for end-to-end optimization. Impact on approach: Could support a gradual diversification strategy.

• Technical: What's our current technical readiness for task mining? Do we have transferable capabilities from process mining?

Why it matters: Assesses the feasibility and resource requirements for diversification. Expected answer: Some transferable skills, but significant investment needed for task mining capabilities. Impact on approach: Might influence timeline and resource allocation for diversification.

• Resource: How would pursuing task mining impact our ability to innovate in process mining? Are we considering additional hiring or reallocation?

Why it matters: Helps understand the opportunity cost and resource constraints. Expected answer: Some reallocation needed, with plans for strategic hiring in task mining. Impact on approach: Could inform phasing and prioritization of initiatives.