Top 10 stats from PEX Report 2023

PEX Network’s PEX Report 2023: Global state of process excellence report is finally out and contains the results of the annual, global state-of-the-industry survey the community responds to. Topped with analysis from Advisory Board members from the likes of Chevron, JP Morgan Chase & Co. and Eli Lilly and Company, it offers the top global operational excellence trends of the next 12 months.

To celebrate the publication of the report, we have decided to highlight the top 10 stats that were revealed in this year’s report.

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35 percent of respondents are conducting an enterprise-wide transformation

While a third seems like a large portion of respondents, it has decreased from PEX Report 2022 where the same answer stood at 44 percent. Now, companies are transitioning away toward deploying initiatives at one or more business units to ensure better outcomes.

In the report, Maneesh Subherwal, executive director of business transformation, commercial bank at JP Morgan Chase & Co., said: “Targeted transformation leads to outcomes as opposed to doing it in a ‘big bang’ way where you are not clear what you are shooting for.”

For 56 percent of respondents, the board of directors or CEO are the main sponsor for transformation

C-suite management being a sponsor of transformation programs has been a trend for the past few years and has been demonstrated by PEX Network since PEX Report 2020.

In this year’s report, Debashis Sarkar, managing partner at Proliferator Advisory and Consulting, said: “There is a greater focus on getting the culture piece right. The C-suite has realized that without embedding the right behaviors, sustaining the benefits would virtually be impossible.”

52 percent of respondents are focusing on growth

The top view in which respondents see operational excellence and transformation programs is “a mission-critical strategy to help the organization to drive growth, manage turnaround and deliver strategic objectives”. It is the first time it tops the list since PEX Report 2020.

34 percent of respondents currently leverage Agile

Agile tops the list of methodologies and solutions currently used by respondents, followed by change management and data analytics/business intelligence. In our APAC market update published earlier this year, Agile’s popularity was explained by Nao Anthony, senior manager of operational excellence at Commonwealth Bank.

He said: “It looks at technology through the prism of releasing the best value to customers as fast as possible.”

41 percent of organizations are investing in digital transformation

Digital transformation has moved from third in PEX Report 2022 to first in this year’s report. This shows a willingness from organizations to focus on holistic solutions as opposed to targeted ones. This is corroborated by the fact that robotic process automation (RPA)’s popularity dropped and it went from seventh place in PEX Report 2022 to 14th place this year.

58 percent of respondents see process data as very important

We have asked respondents to tell us why they believe data is important. Responses included how “it is the best way to monitor and measure improvements” and “we cannot manage what we cannot measure, therefore, data is vital”.

Read PEX Network report: Unlock operational excellence through data

49 percent of respondents are investing in low-code

The total number of respondents looking to invest in low-code has increased from 23 percent in PEX Report 2022 to 49 percent this year. This encompasses organizations that already have a low-code or no-code platform and those who do not and are investing in the next 12 months and beyond.

16 percent of respondents see a lack of guidance and budget for low-code initiatives

Following the top low-code-related challenge, cyber security risks, companies are experiencing a lack of guidance for automation priorities. This can be overcome by ensuring a strong collaboration between IT teams and the business side.

40 percent of respondents are focusing on culture for the next 12 months

The top focus for process improvement work for the next 12 months is to create a culture for transformation, followed by driving innovation and developing leadership behavior. This shows a need for organizations to engage their employees in a transformation program.

Related article: Building the three pillars of corporate culture

65 percent of respondents have an OPEX annual budget of up to US$1mn

While 65 percent of respondents’ operational excellence budget is up to US$1mn, 8 percent have their sitting between US$1mn and US$5mn, 1 percent between US$5mn and US$10mn and 8 percent at more than US$10mn.

Are you seeing these trends in your organization? Let us know by leaving a comment below.